Alcohol fee = 'cause for harm' money: A funding idea whose time has come

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Booze, it seems, causes some people to do drunken things, get in trouble (i.e., do harm, at times), go off to the E.R., occasionally in an ambulance. So why not tax the booze to pay for the E.R. and ambulances? This is being proposed by San Francisco Supervisor John Avalos in one of a bunch of efforts to fill the gaping budget hole that this city, like virtually every city in the nation, is facing.

It is called a “cause for harm” fee. A fee, explains San Francisco Chronicle columnist C.W. Nevius, differs from a tax because it can only be spent for the specified purpose for which it was collected. We don’t like the word Tax these days.

No fair! say the bar and restaurant owners; five cents more per martini will kill the business! I doubt that. Having put in my time as a martini (among other things) drinker, I can absolutely certify that if you want a$6 cocktail you’re not going to pass it up at $6.05.

“Cause for harm” fees, in fact, seem like a pretty good idea:

  • Oil company digging fees (say, five cents a quart) for spills, etc.
  • Leaf-blower fees to mitigate noise, air and clogging-the-storm-drain pollution
  • A dead cell phone fee to ship dead cell phones to another planet if there’s one that wouldn’t really mind
  • Pigeon fees… well, just because

You can create your own list. Fees of this “cause for harm” type are collected in other states, though more often used to pay for things like treatment and education rather than transportation to the ER. In any event, they clearly make sense. And somehow the cause/effect principle seems like one that should pick up wider support.

Maybe Mr. Karzai could impose a few fees of his own, and use them to send all those troops back home.

Supervisor’s fee on alcohol a terrific idea.

Sarah Palin stirs up California

Sarah Palin speaking at a rally in Elon, NC du...
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Sarah Palin flew in for a much-ballyhooed speech Friday night, at a price still undisclosed — and which may never be known. Therein lies the rub. It also, as Palin is inclined to do, decidedly pumps up the politics.

Palin was invited some time ago to speak at  a fundraising event for the Cal State University Stanislaus Foundation‘s 50th anniversary celebration. How much she was paid — the event raised $200,000 for the school’s endowment — became a subject of much controversy and high political drama. Eventually it invoked an investigation by State Attorney General Jerry Brown, now facing off for Governor against gazillionaire former eBay CEO Meg Whitman, into whether public disclosure laws are being broken by the university’s refusal to say what she got paid. Along the way, sides are being drawn by incumbent U.S. Senator Barbara Boxer, whose opponent former Hewlett-Packard CEO Carly Fiorina rather famously criticized Boxer’s hairdo a little while ago and said more recently she is honored by Palin’s endorsement; and by Democrats in general who see the Palin Effect as fine ammunition to aim at state Republicans.

In other words, as San Francisco Chronicle reporter Carla Marinucci commented in today’s update, “They don’t call Sarah Palin the Thrilla from Wasilla for nothing.

After months of buildup, including investigations, outrage and celebration, the former Alaska governor’s trip to California’s farm belt over the weekend proved beyond a doubt that she delivers – for Republicans and Democrats.

State Attorney General Jerry Brown probably will be grateful that he was the focus of the 2008 vice presidential candidate’s barbed criticism as he investigates her compensation from the Cal State University Stanislaus Foundation for her speech Friday night at the nonprofit’s 50th anniversary event at the Turlock (Stanislaus County) campus.

Brown’s office is looking at whether the campus foundation violated state public disclosure laws by refusing to make public the terms of Palin’s contract for her appearance.

In her speech, Palin quipped of Brown: “This is California. Do you really not have anything better to do?”

The Democratic gubernatorial candidate’s response: “I don’t think she understands the process. It’s about the operation of the foundation to see if they handled things professionally.”

The Palin Effect played well in Republican primaries, but may not be quite so welcome as candidates now seek to broaden their appeal.  All of which makes watching the political high-wire balancing act, though sometimes tiresome, never dull.

Boxer’s campaign manager, Rose Kapolczynski, called Palin and Fiorina “two peas in a pod” and released a Web video aiming to remind voters that the Republicans’ “shared positions are out of step with Californians.”

On the GOP side, former Hewlett-Packard CEO Fiorina said that while she couldn’t meet with Palin on this trip, she was “honored” to be endorsed by Palin, who characterized Fiorina as a “commonsense conservative.”

“It’s the question of how she will play to the political middle. Will she take away votes?” said Bill Whalen, a research fellow at Stanford’s Hoover Institution.

He said that a close connection with Palin may be a concern for candidates like Fiorina, in part because Palin manages to stir it up, no matter what her forum.

“If you think people are tired and worn down by politics, Sarah comes into town and the circus follows, and the arguments break out,” he said. “Wherever she goes, there’s a dustup. … It gets everyone angry and yelling, and it stirs up divisiveness.”

It’s going to be a long, hot summer in California.

Palin’s Stanislaus visit shows political power.

Grim outlook for public transportation

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Can we have a functional, effective transportation system in the U.S.? Can we afford not to? Those were the questions addressed by former Secretary of Transportation Norman Mineta and a panel of experts at a full-house 9 AM event at San Francisco’s Commonwealth Club Friday. Oh — and how are we going to pay for it all? The program was titled “Funding the Transportation System of the Future.”

“Within the next two decades,” Mineta said in his introductory remarks, “the Census Bureau estimates that the U.S. population will increase by as many as 50 million people. This population growth, combined with a growing backlog of overdue maintenance work on roads and transit systems, creates a need for significantly expanded transportation revenues. However, the current political climate is generally unfavorable to tax increases.”

The ensuing discussion continually returned to two general points: first, that our parents and grandparents funded the transit infrastructures and systems we now enjoy and it is incumbent upon us to do the same for our children and grandchildren; and second, as Mineta and others repeatedly said, that there is no political will anywhere to do the latter. One illustration of the first point was cited by panelist William Millar, president of the American Public Transportation Association, who observed that “the New York subway system was built 106 years ago for $35 million — and you couldn’t get a feasibility study today for $35 million.”

Given the fact that most cities and counties could spend $35 million on overdue maintenance alone, most panelist comments and audience questions concerned the issue of finding funds at a time when tax increases are not very popular. “Creative funding” solutions appear to be the answer, even if there is currently far more creativity around than funds.

Asha Weinstein Agrawal, Director of the Mineta Transportation Institute‘s National Transportation Finance Center, cited a public opinion poll released yesterday (“one of those phone calls at dinner time…”) that surveyed 1500 people in English and Spanish to test receptiveness to eight variations of a possible gasoline tax. In general, opposition to such a tax is high, she said, but acceptance increases in proportion to benefits which individuals can see: tie the tax to emissions per vehicle and thus reduce greenhouse gases, for example. Agrawal recommended consideration of taxes linked to environmental effects.

Panelist John Horsley, Executive Director of the American Association of State Highway and Transportation Officials, said that because of funding cuts and declining revenues (from road usage fees etc), the U.S. Highway Fund will be insolvent some time between August and October of 2011, with the resultant loss of approximately 1 million jobs. He cited a few bright spots such as several states going ahead with high speed rail projects, “four states have actually raised gas taxes, Kansas has increased the sales tax, and New Hampshire sold itself a bridge” (which will get paid off through tolls.) High occupancy toll lanes were another potential funding source Horsley said could help until “fiscal sanity returns: investing in something good (rather than) borrowing forever.”

The consensus was aptly covered in one summation by California Senator Alan Lowenthal: “It’s a very difficult time for transportation.”

Whereupon this reporter got back on the #1 California Muni bus (catch a back seat, work on your computer for 30 minutes, no parking fee, no traffic hassle) and went home.

Aging brains can still follow the $$

day in the life: lunch money
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Balancing the checkbook isn’t as easy as it used to be? You can’t remember where you put the keys? OhmyGOODness, you say, I must be getting old.

The bad news is, age happens. The good news is, it does not necessarily bring a concurrent loss in cognitive ability. Get a new calculator, maybe one with a bigger keypad. Accept the fact that you’ve been misplacing the keys, occasionally, since you started driving.  And take heart in a new study from Duke University indicating that, all things considered, age is not a determining feature in the ability to make sound economic decisions.

Just because your mother has turned 85, you shouldn’t assume you’ll have to take over her financial matters. She may be just as good or better than you at making quick, sound, money-making decisions, according to researchers at Duke University.

“It’s not age, it’s cognition that makes the difference in decision-making,” said Scott Huettel, PhD, associate professor of psychology and neuroscience and director of the Duke Center for Neuroeconomic Studies. He recently led a laboratory study in which participants could gain or lose money based on their decisions.

“Once we accounted for cognitive abilities like memory and processing speed, age had nothing to do with predicting whether an individual would make the best economic decisions on the tasks we assigned,” Huettel said.

The study was published in the Psychology and Aging journal, published by the American Psychological Association.

Working with 54 older adults between 66 and 76 years old, and 58 younger adults between 18 and 35, the Duke researchers assigned a variety of economic tasks that required different types of risky decisions, so that participants could gain or lose real money.

On a bell curve of performance, there was overlap between the younger and older groups. Many of the older subjects (aged 66 to 76) made similar decisions to many of the younger subjects (aged 18 to 35). “The stereotype of all older adults becoming more risk-averse is simply wrong,” Huettel said.

Getting to the heart — and brain — of the issue, PositScience blogger Ted Baxa says “this finding will come as no surprise to many.  Legendary investor Warren Buffett, 79, continues to outperform fund managers half his age.  The message to take from this article is that age by itself, as the saying goes, is just a number.”

When you finish with the checkbook, in other words, you might want to get busy on your brain exercises.

Cognitive Ability, Not Age, Predicts Risky Decisions – DukeHealth.org.

Nobel Laureate Muhammad Yunus speaks on micro-lending — and world hope

Muhammad Yunus, Managing Director, Grameen Ban...
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Recently, someone remarked to Muhammad Yunus, the Bangladeshi banker/ economist/ crusader against poverty, that he must be a very rich man.

“I said, why would I be a rich man?” he tells an attentive audience. “Well, you have all those companies; you must be rich to have all those companies.”  Yunus scratches his chin and smiles the beguiling smile that makes you want to be a believer. “Oh. I start these companies, but I would never own them.” You are now a believer.

Yunus was in San Francisco Monday, at a social entrepreneurship program sponsored by the Commonwealth Club. He is winding up a U.S. tour promoting his new book, Building Social Business: The New Kind of Capitalism That Serves Humanity’s Most Pressing Needs. In the process, he is promoting a theory that social business — business operated for the benefit of society (such as the poor who are commonly the beneficiaries and owners of Yunus’ companies) — can and should be a viable segment of the global economy.

Grameen Bank, which was begun in 1976 with $27 out of Yunus’ pocket and now provides loans to more than 8,100,000 borrowers — no collateral, just good faith and trust — would seem to prove his point. Defaults on Grameen micro loans are so few as to make Fannie Mae weep.

From micro loans, Yunus expanded into business ventures on the same basic principle: to achieve one or more social objectives through the operation of the company. The investors/owners can gradually recoup the money invested, but cannot take any dividend beyond that point.

There are now Grameen (the word refers to a rural village) companies in banking, agriculture, healthcare, telecommunications and other areas.  Yunus gave one as an example of why he believes the principle works:

Grameen and Group Danone went into a joint venture to create a yogurt fortified with micro-nutrients to decrease malnutrition for the children of Bangladesh. The yogurt is produced with solar and bio gas energy and is served in environmentally friendly packaging. The first plant started production in Late 2006. The 10-year plan is to establish 50+ plants, create several hundred distribution jobs and self-degradable packaging.

The environment is protected, children get healthy, grow up to create businesses. Yunus spoke of one skeptic saying, “where will I get a job?” and said he explained, “You don’t look for a job, you create a job.”

Grameen Bank has more than 2500 branches — now including three in New York (where Yunus would like to see payday loan and check-cashing operations go out of business), one in Omaha, and in the near future: one in San Francisco. If Yunus is enjoying the proving out of his theories and the lifting of vast numbers of people out of poverty, he may be enjoying most of all the reminiscences about those who scoffed at his notions in the 1970s.

“They said the poor were not credit worthy,” he smiles. “I was told, about non-collateralized loans, ‘You can’t do that!’ After 2008, I wanted to ask, ‘Who is credit-worthy?'”

Oh Yayy! A new social network! Togetherville targets 6 to 10-year-olds

First and second-graders, even third-graders who haven’t gotten to be Facebook regulars yet, can now Have Fun Online Together and Share Proud Moments With Friends through their Togetherville social network accounts.

“What we want to do is build good digital citizens,” says Togetherville founder and CEO Mandeep Dhillon.

God help us.

With the brewing controversies about Facebook and privacy, not to mention news stories about the dangers of cyberabuse, the last thing parents might want to do is let their children get into online social networking.

But Togetherville Inc., a Palo Alto startup that finished a test run last week, hopes to alleviate those fears with a social-networking service tailored to children ages 6 through 10.

The free service creates a secure network that gives children access to the benefits of social networking while giving parents oversight to make sure their kids are shielded from potential dangers until they are old enough to handle the Web.

No offense to Dhillon and his investors, but are we really ready to offer up a new generation to be “shielded from potential dangers…” by the operators of a social network while they are having fun sitting in front of a small screen all day sharing proud moments with their friends? Did Alice just fall down the rabbit hole?

On Togetherville, no one who is not authorized by the parent can contact the child. Nor can anyone outside the network gain access to a child’s information or postings, including through search engines.

There are adult Facebook members who are pressing for that same level of privacy. Parents create the account using their Facebook login information, but the Togetherville site operates in a separate world outside of Facebook.

However, children can exchange text messages with other friends in their Togetherville “neighborhood” and with authorized grown-ups through Facebook Connect. The text comes from a pre-written selection of “quips” like “Cool,” “Random” and “What planet are you from?”

The kids can create digital greeting cards, play games and watch approved video. But they can’t share links to outside sites or, for now at least, photos.

Dhillon said the company is working on generating revenue by buying and sharing virtual goods.

It is not Dhillon’s fault, I suppose, that Togetherville is launching into the world at a time when faith in Facebook is not exactly on an all-time high. If there are parents of 6- to 10-year-olds ready to believe that their children can be shielded from potential dangers once tethered to Togetherville, they must surely have spent the past few years in Wonderland with Alice.

Social networks unquestionably have benefits. Just don’t try to convince people right now that those benefits come without perils and frustrations. If they are shielded from dangers, are 6-year-olds ready for the frustrations? For instance. A few months ago, Facebook decided it didn’t want me to have access to my Friends any more. Oh, they can send me messages, and presumably if they haven’t hidden me they get my status updates. I get a few of their status updates too. I just can no longer access my Friend list because it has disappeared somewhere. Have you ever tried to find a real person involved with Facebook? The people behind the software are utterly unreachable.

This is the world to which 6- to 10-year olds will now be introduced. Fully shielded from danger, their parents are told…

Social-networking site Togetherville is designed for youngsters ages 6 to 10.

One campaign, $68 million and counting

SUNNYVALE, CA - APRIL 27:  Former eBay CEO and...
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California gubernatorial hopeful Meg Whitman made a bundle as head of eBay. Where she spends it, her supporters say, is a matter of personal choice. She is currently choosing to spend it on buying her way into the governor’s office. Recent reports list her total costs closing in on $70 million — no big deal, since she has been quoted as saying $100 million on this phase wouldn’t pose any problem. This phase is still just the June primary.

Whitman has spent $68 million of her own money on the race so far, the Los Angeles Times reports. Whitman blasted the California airwaves with ads in March, according to the LA Times, but (opponent Steve) Poizner eventually made his own investments and gained traction with damaging attacks against Whitman’s stance on illegal immigration (he called her too soft on the issue). As a billionaire former business executive, Whitman was also hurt by the focus put on her ties to Goldman Sachs.

This space isn’t going to get into political endorsements or heavy-duty oppositions. And in any event, as a registered Democrat married to a confirmed Decline-to-state, votes from here are unlikely to affect the California Republican nomination.

But at what point does the investment of personal wealth throw up red flags about one’s motivations? Is wanting political office any different from wanting a Rolex watch or a ranch in Montana? When someone has no legislative experience, no known stands, no voting record (Whitman never bothered with voting much), how are we supposed to know what’s really driving the reach for power? Ross Perot spent about the same amount of his own money on his unsuccessful bid for the U.S. Presidency in 1992 as Whitman has thus far on a gubernatorial primary race. Perot dropped a little less on a similar adventure in 1996. He did have somewhat of a record of his convictions, and he was defended both times with arguments that it is a personal right to do whatever one wants with one’s personal wealth.

That is undoubtedly so. It’s a personal right. Why does it somehow feel wrong?

Barbara Ehrenreich speaks out on social, economic inequality — and how to make things better

Author/activist Barbara Ehrenreich addressed an enthusiastic audience in San Francisco Monday night, supporters of the Washington D.C.-based progressive think tank Institute for Policy Studies, on whose board Ehrenreich serves. Also on hand for brief remarks and conversation were IPS Director John Cavanagh, IPS fellow and Emmy Award-winning filmmaker Saul Landau and 2010 IPS fellow Tope Folarin.

The event was billed as an overview of such critical current issues as ending the Afghan war, creating a fair tax system, fixing the country’s tattered social safety net, shutting down Wall Street speculation and seeking local and global climate justice. And if that seems a tall order, the mood was decidedly more upbeat than overwhelmed.

Ehrenreich, whose 2001 best-seller Nickel and Dimed exposed the social and economic injustices assailing the working poor, says her current, ongoing focus is on the failure of our social safety net. “It’s not working,” she says, “but it can be fixed.”

To that end, the speakers distributed copies of a recently released IPS study (in cooperation with the Center for Community Change, Legal Momentum and Jobs with Justice.) Titled Battered by the Storm: How the Safety Net is Failing Americans and How to Fix it, the study lists five key findings:

  • Levels of long-term unemployment, underemployment and discouraged workers are reaching historic levels;
  • The percentage of poor children receiving temporary assistance under TANF (the main federal “welfare” program) has fallen from 62% in 1995 to 22% in 2008;
  • TANF benefits are far from sufficient to support the families that depend on them: 2008 assistance payments averaged only 29% of the money needed to bring families up to the official poverty line;
  • Even while labor force participation of mothers has increased, the supply of affordable child care has lagged behind, creating a significant barrier to employment for many, especially single mothers; and
  • Roughly 57% of unemployed people are receiving unemployment compensation; for those receiving benefits, amounts are less than half of wages, and many are losing work-related health benefits.

Saying the safety net has eroded over the last three decades, the report offers an “Emergency Relief Package” totaling just over $400 billion and including jobs program, state and local fiscal relief, insurance and food stamps measures designed to aid middle and low income Americans. These groups, IPS leaders contend, have seen their income decline as the rich get richer. The study also suggests a number of ‘no new money’ measures such as foreclosure relief. Financing could be accomplished, the study says, through tax changes affecting higher income levels, a tax on financial transactions over $100 billion and an end to overseas tax havens.

Her concern with the squeezing of middle and lower income Americans, Ehrenreich says, has grown as their plight has worsened in recent years. “This recession has not narrowed the gap of inequality,” she says, “it has widened the gap.”

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