Food Stamps and Work

Now that the Obama administration’s waiver of work requirements for families without dependent children in order to be eligible to obtain food stamps has been rescinded, the vast numbers of recipients are being greatly reduced.  Alabama, for instance, this year resumed the work or work training requirement in a pilot program involving 13 of its counties and has seen its food stamp enrollment fall by 85%.  Georgia is running a similar program, and it’s seen a 58% drop.

It’s all well and good that the work/work training requirement has moved people off the food stamp rolls, but the flip side of that is what happens to those that are: are they actually working or training, or are they just shoved off the rolls, still unemployed, now deeper in poverty?  The Maine results give an indication.

An analysis of a group of 7,000 Mainers who left SNAP in 2014 found their total earnings increased from $3.85 million in the third quarter 2014 to $8.24 million in the last quarter of 2015.

That’s more than a doubling in earnings in just over a year.  These folks, clearly, are getting work; they haven’t just been shoved over a cliff.

Kansas is getting similar results.

…60% of former beneficiaries found employment within 12 months and their incomes rose by an average of 127% per year….

Hmm….

The Specialness of Snowflakes

The New York Times newsroom is going to walk out (as I write this) on Thursday because they don’t like the cutbacks in editors (an understandable concern, even if the newsroom denizens offered no alternative) and other personnel reductions the paper is being forced to make in an effort to reduce costs to a survivable level.  It’s their plaints, though, that drew my attention.  The copy editors group wrote a letter to Executive Editor Dean Baquet and Managing Editor Joseph Kahn in which they said in part,

You often speak about the importance of engaging readers, of valuing, investing, and giving a voice to readers. Dean and Joe: we are your readers, and you have turned your backs on us.

News flash, guys.  Baquet’s and Kahn’s readers, the NYT‘s readers, are the customers who pay around $325/yr for a subscription, or more than $500/yr for both print and online subscriptions.  You guys get paid to read your boss’ paper in order to make error corrections.

NYT reporters sent a letter to the same targets in solidarity with the copy editors.

Requiring them to dance for their supper sends a clear message to them, and to us, that the respect we have shown the Times will not be reciprocated.

Respect has to be earned, guys.  You have a legitimate beef regarding the lack of transparency in personnel moves your paper is making (another part of your letter), but respect has to be earned the same way any honest American earns it: through actual deeds.  You guys don’t get respect just because you think you’re special.  In particular, you utterly disrespect your readers—those paying customers—when you masquerade unsubstantiated rumors, which you amusingly attribute to “senior officials,” to sources who “are speaking anonymously because they’re not authorized to speak,” and the like, as fact.  And you do that while also carefully declining to corroborate those rumors with on-the-record remarks.

Question for you both—and for Baquet and Kahn—when y’all come back to work on Friday (today, as I post this): did anyone notice your absence?  Besides the janitors, I mean.  Folks like actual customers.

When Were They Not?

All IT Jobs Are Cybersecurity Jobs Now goes the headline on a recent Wall Street Journal article, and the subhead reads The rise of cyberthreats means that the people once assigned to setting up computers and email servers must now treat security as top priority.

It’s like these folks—both in the IT arena and in the reporting media—have just had an epiphany.

The global “WannaCry” ransomware attack that peaked last week, and has affected at least 200,000 computers in 150 countries, as well as the growing threat of Adylkuzz, another new piece of malware, illustrate a basic problem that will only become more pressing as ever more of our systems become connected: the internet wasn’t designed with security in mind, and dealing with that reality isn’t cheap or easy.

No, it wasn’t.  But it’s not the Internet that’s at the heart of these failures.  It’s the company connections to the Internet, and the corporate human employees who aren’t being trained in how to handle the company’s connection to the Internet that is at the heart of these failures.  IT has—or should have had—security at its heart from the time the first companies connected themselves to the Internet.

Even if nation-level espionage might not have been on the minds of private enterprise, the proprietary nature of company information and the fact of corporate espionage are as old as corporations.

Christopher Mims, in his article at the link, offered some sound advice for today.  That the advice should have been obvious yesterday in no way invalidates it for today.

  1. Retrain IT staff on security—or replace them. In today’s world of ever-multiplying threats and dependence on connected assets, all IT staff must now be cybersecurity staff first.

Indeed.

  1. Push everything to the cloud. It used to be the job of IT personnel was to build and maintain the tools employees need. Now, pretty much anything can be done better with a cloud-based service.

I disagree with this.  The cloud is no more securable than a corporate’s internal network—and when (not if) the cloud gets hacked, it won’t be only one company’s stuff that gets stolen or held hostage.  Even if it’s only a company’s internal cloud that gets hacked, the whole of the company’s innards get exposed.

  1. New IT investment will need baked-in security.

Can I get an amen, brothers and sisters?

“We pay a lot to feed the civil servants”

That’s what Zhou Dewen, Zhejiang Private Investment Enterprise Association Director, a business lobbying group in the People’s Republic of China has said.  He, like business representatives anywhere—including here in the US—is right to be concerned.  That concern is compounded by President Donald Trump’s tax proposal.

Now, Chinese officials and executives worry that the tax proposal Mr Trump announced last week will set back China’s global competitiveness and spur companies to invest in America instead of China.

Which is one of the points of Trump’s proposal that, among other things, seeks to drastically lower our usurious business tax rates.

Trump’s proposal also is a much more intelligent, much more moral, response to American companies moving overseas than the iron curtain that ex-President Barack Obama (D) and his Treasury Secretary Jack Lew (D) tried to erect with their punishing (in every sense) taxes that they tried to impose on companies in order to trap them here.  If we’ve got one of the lowest tax rates going, it no longer would make business sense to relocate out of the US.  And, such a decision would be that of the companies’ owners; it would not be driven by Government watchdogs.

Speaking of relocating businesses for tax-based reasons,

Chinese windshield maker Fuyao Glass opened a $600 million factory last October near Dayton, Ohio, and plans other facilities in Illinois and Michigan, creating 4,500 jobs. CEO Cao Dewang caused a stir in December when he told a reporter the decision was driven by tax differences: “Overall taxation for manufacturers in China is 35% higher than that in the US.”

The PRC government is getting involved, too.

In anticipation of the US tax move, the State Council, China’s cabinet, said earlier this month the government will reduce corporate taxes by over $55 billion to “improve business conditions.” The Communist Party’s newspaper, People’s Daily, warned on Friday that the new US plan could trigger a “tax war” if countries start competing to offer the lowest rates.

Such a race to the lowest tax rates would benefit the folks of all nations involved.  Pop Quiz: which type of economy will prosper the most from such a contest?

“We pay a lot to feed the civil servants.”  Don’t we all.

Shrinking the Federal Government

…is more than just reducing spending; although that’s a major component of the necessary shrinkage.  Shrinking also must include reducing the physical size of the government, reducing its payroll.  To that end, the moves by President Donald Trump and OMB Director Mick Mulvaney will prove valuable if Congress will cooperate.

The hiring freeze of the last 11 weeks was an important first step, but it produced no actual shrinkage.  Its value consisted in halting the growth in payroll and in demonstrating over the last 11 weeks the lack of need of additional hiring.  In this latter regard, it’s much like the government shutdown of 2013, during which many Departments and Agencies were forced to furlough many of their employees—and still functioned.  The EPA, for instance, furloughed nearly 95% of its employees and ran just fine.  Treasury, Labor, and Interior furloughed over 80% each and those Departments did just as well as before.

Now the broad-based hiring freeze is about to be lifted, but all Departments and Agencies are being required to form plans to do targeted reductions in their work forces in expectation of seeing actually reduced budgets, with effect FY2019, which begins in October 2018.

This is all on the right track.  Now, it’s certainly true that the hiring freeze didn’t reduce the number of folks actually working these last several weeks, as I noted above.  It’s also true that the agencies during the government “shutdown” were on emergency manning and only so for roughly the same number of weeks.  But domestic matters should be handled, in the very large main, by the States.  The Federal government should be involved in domestic matters, in the very large main, only in emergencies.  Thus, the Departments and Agencies, in the very large main, don’t need employee complements much larger (but some larger) than emergency levels.

There are a couple of exceptions to these planned reductions.  Budget increases coupled with commensurate hiring increases will be proposed for Defense and Veterans Affairs.  The VA’s planned increases are from the best of intentions—the nearby backlog of veterans’ claims has exceeded 100,000, and so more bodies added to the payroll would seem to be needed in order to reduce this additional VA wait list fiasco, for instance—but the VA’s long-term, broad, and resolutely uncorrected failure to perform, too often with lethal results, mandates a different outcome.

Eliminating the VA and using its budget for veterans’ vouchers would be entirely consistent with shrinking the government’s payroll, even if spending associated with the VA would not shrink.  But in this case, at least the spending could be known to be going to the purpose for which it was passed originally—our veterans’ well-being, both now and, since the VA manages our military cemeteries, post mortem.

Veteranos Administratio delende est.