Politicians are good at moving money around
Posted: Wednesday, December 03, 2008
Hey, what’s going on here?
It’s a fact, money is fungible. In other words, all dollars look just alike and absent legal restrictions they are legal tender in any situation. You can buy groceries, booze, cigarettes, houses, cars, and pay plumber bills.
Politicians have been masters of getting around intended purposes for money, no matter how worthy, to shift money from one account to another as the momentary need presents itself. Around the country, tobacco money awarded to the 46 states participating in a lawsuit has funded sports stadiums, new bridges and roads, golf courses, college scholarships,
Back in 1998 when the press warned some $61 billion awarded in a judgment against tobacco companies, I called Iowa Attorney General Tom Miller to see if he thought the Iowa Legislature would actually commit this bonanza (the precise amount Iowa got escapes me) to helping fund medical care for those with smoker-related diseases and to launching a campaign to convince young people not to take up the habit.
His best response as one of the attorneys who signed onto the suit was: “I hope so.”
While I was unable to get an estimate from Des Moines about how the money was spent for purposes other than specified in the lawsuit, an Associated Press story in late November confirmed my suspicions about state spending generally. The survey found the tobacco money was squandered for nearly everything but its intended purpose. Overall, according to the AP survey, only about 30 percent of the tobacco money was spent for health care and about four percent for anti-smoking efforts.
You see, money really is fungible and subject to needs and desires of anyone who legally holds it. Fair to say, the judgment did not specify exactly how the cash was to be spent, but to honorable people its dispersal should have matched the basis of the suit and its outcome.
But keep in mind at no time did any legislature announce it would spend tobacco money for sports stadiums, for instance.
--Our country is now trying to decide how to contend with the growing problem of piracy by Somalis off the east coast of Africa. The pirates are boarding oil takers and other ships and demanding tribute in millions of dollars for release of cargo and ships’ crews.
You may recall our humanitarian attempt a few years ago to help the destitute population of the country only to be thrown out by well-armed tribal forces. Despite the depredations of the chiefs and now the pirates, the people continue to suffer.
Gigantic oil tankers are, apparently, vulnerable even to rag-tag pirates boarding them from fragile speed boats. For various reasons, it’s thought riskier to arm ship crews than to give up because of huge volumes of fuel aboard targeted ships.
Well, that may be so, but the prospective risk to our source of Mideast oil (yes, we still desperately need it) is at stake. Some peaceniks, of course, prefer to pay tribute rather than fight. Our allies, it’s been pointed out, probably won’t help us even if they have warships available. But India of all countries did react by actually sinking one of the pirate speedboats.
Worth considering is if we pay too much tribute to these terrorists they will eventually purchase smaller ships like Corvettes or destroyers from, say, Russian sources. But we will continue to dither.
If you ever read any American history you would know President Washington also dithered about the Barbary pirates who were at the time boarding and sinking our ships. President Jefferson finally got enough ships built and enough Marines assembled to smash the Tripoli ring. Remember the stirring words from the Marine hymn? “From the Shores of Montezuma to the Halls of Tripoli.”
--President-elect Obama picked a fellow named Timothy Geithner as his secretary of the treasury. The next day the faltering stock market jumped nearly 500 points after a week of sickening slides. Maybe the nominee holds the magic wand that will turn the economy around. No, I didn’t say his nominator holds the golden stick.
Also chosen was Sen. Hillary Clinton for secretary of state. I view this as a relief for the country since Hillary will now have a pulpit from which to annoy not just Americans but also foreigners. Should keep her busy.
As Mr. Obama prepares to ascend to the “throne,” some media “goons” think President George W. Bush might be induced to resign in order to get the country moving again. I’m sure Obama, an honorable man as is Bush, would never suggest such an outrage.
It’s a fact, money is fungible. In other words, all dollars look just alike and absent legal restrictions they are legal tender in any situation. You can buy groceries, booze, cigarettes, houses, cars, and pay plumber bills.
Politicians have been masters of getting around intended purposes for money, no matter how worthy, to shift money from one account to another as the momentary need presents itself. Around the country, tobacco money awarded to the 46 states participating in a lawsuit has funded sports stadiums, new bridges and roads, golf courses, college scholarships,
Back in 1998 when the press warned some $61 billion awarded in a judgment against tobacco companies, I called Iowa Attorney General Tom Miller to see if he thought the Iowa Legislature would actually commit this bonanza (the precise amount Iowa got escapes me) to helping fund medical care for those with smoker-related diseases and to launching a campaign to convince young people not to take up the habit.
His best response as one of the attorneys who signed onto the suit was: “I hope so.”
While I was unable to get an estimate from Des Moines about how the money was spent for purposes other than specified in the lawsuit, an Associated Press story in late November confirmed my suspicions about state spending generally. The survey found the tobacco money was squandered for nearly everything but its intended purpose. Overall, according to the AP survey, only about 30 percent of the tobacco money was spent for health care and about four percent for anti-smoking efforts.
You see, money really is fungible and subject to needs and desires of anyone who legally holds it. Fair to say, the judgment did not specify exactly how the cash was to be spent, but to honorable people its dispersal should have matched the basis of the suit and its outcome.
But keep in mind at no time did any legislature announce it would spend tobacco money for sports stadiums, for instance.
--Our country is now trying to decide how to contend with the growing problem of piracy by Somalis off the east coast of Africa. The pirates are boarding oil takers and other ships and demanding tribute in millions of dollars for release of cargo and ships’ crews.
You may recall our humanitarian attempt a few years ago to help the destitute population of the country only to be thrown out by well-armed tribal forces. Despite the depredations of the chiefs and now the pirates, the people continue to suffer.
Gigantic oil tankers are, apparently, vulnerable even to rag-tag pirates boarding them from fragile speed boats. For various reasons, it’s thought riskier to arm ship crews than to give up because of huge volumes of fuel aboard targeted ships.
Well, that may be so, but the prospective risk to our source of Mideast oil (yes, we still desperately need it) is at stake. Some peaceniks, of course, prefer to pay tribute rather than fight. Our allies, it’s been pointed out, probably won’t help us even if they have warships available. But India of all countries did react by actually sinking one of the pirate speedboats.
Worth considering is if we pay too much tribute to these terrorists they will eventually purchase smaller ships like Corvettes or destroyers from, say, Russian sources. But we will continue to dither.
If you ever read any American history you would know President Washington also dithered about the Barbary pirates who were at the time boarding and sinking our ships. President Jefferson finally got enough ships built and enough Marines assembled to smash the Tripoli ring. Remember the stirring words from the Marine hymn? “From the Shores of Montezuma to the Halls of Tripoli.”
--President-elect Obama picked a fellow named Timothy Geithner as his secretary of the treasury. The next day the faltering stock market jumped nearly 500 points after a week of sickening slides. Maybe the nominee holds the magic wand that will turn the economy around. No, I didn’t say his nominator holds the golden stick.
Also chosen was Sen. Hillary Clinton for secretary of state. I view this as a relief for the country since Hillary will now have a pulpit from which to annoy not just Americans but also foreigners. Should keep her busy.
As Mr. Obama prepares to ascend to the “throne,” some media “goons” think President George W. Bush might be induced to resign in order to get the country moving again. I’m sure Obama, an honorable man as is Bush, would never suggest such an outrage.
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