Sunday, February 9, 2025

USE THE OKLAHOMA STATE AUDITOR AS INTENDED!

 Weekly Opinion Editorial


PAIN OF REGRET!

by Steve Fair


      On Monday February 3rd, Governor Kevin Stitt delivered his next to the last State of the State address.  Stitt is term limited and will serve as the Sooner state’s governor until 2026.  The 3,869 word speech was delivered in 36 minutes to a packed chamber of legislators and guests.  The speech can be read in its entirety at: https://oklahoma.gov/governor/newsroom/newsroom/2025/governor-stitt-delivers-2025-state-of-the-state-address.html

     Stitt stated goals in 2025 are to, (1) protect Oklahoma taxpayers, (2) make Oklahoma the best in the U.S. to do business, (3) safeguard state’s revenue reserve, (4) defend the Oklahoma way of life. Stitt began the speech by reciting a laundry list of ‘accomplishments’ during his six years as governor and then exhorted the legislature to support his agenda. 

     Quoting Winston Churchill, the governor said, “the price of greatness is responsibility.”  “That means sacrificing now for future benefit.  The reality is there is going to be pain either way- the pain of disciple now, or the pain of regret later,” Stitt said. 

     Stitt said he would cooperate with the Trump administration in deporting illegal aliens who have committed crimes.  He supports students not having access to cell phones while in school and proclaimed his support of school choice.  “The government shouldn’t stand in the way of a parent’s right to educate their children in line with their values,” Stitt said. 

     Citing a recurrent theme Stitt has parroted since he started campaigning for guv back in 2018, he said:  “I am committed to having fewer state employees at the end of my term than when I took office in 2019.” Stitt said. He also announced the creation of DOGE-OK to identify waste, fraud and corruption in state government.  He also wants to cut taxes.  Three observations:

     First, Oklahoma has an office to find waste, fraud and corruption.  The State Auditor and Inspector is an elected official given that responsibility by the state constitution.  An ad hoc committee of private citizens should not circumvent an elected official’s duties.  During the gubernatorial campaign of 2018, Stitt promised to use the Auditor’s office to “audit everything not nailed down.”  Phrases like that resonate with Republicans during an election, but are often forgotten by elected officials after they take office.  Oklahoma doesn’t need an unaccountable to the citizens DOGE when they have the SA&I.  Use the constitutionally created office and stop the grandstanding!

      Second, Oklahomans are overdue for a tax cut.  Stitt pointed out that bordering states are cutting their state income tax rate and have lower rates than the Sooner state.  Oklahoma state government has been collecting much more than they need to operate, which has resulted in record rainy day funds.  Like a kid sent to the store with money, but never gives the change back to his parent, state government has been keeping the change.  It’s time for the taxpayer to keep more of their money.    

     Third, Oklahoma government should help all businesses.  Economic development doesn’t just mean recruiting new business.  It involves helping existing businesses grow and prosper.  Often the zeal to recruit a new business hurts an existing business.  As the old saying goes: “dance with the one who brought you.” 

     Stitt’s consistently stated goal since his campaign of 2018 until now has been to, ‘make Oklahoma a top ten state.’  Every speech or talk includes the same talking points: cutting taxes, rightsizing government, and making the state business friendly- so far unfulfilled campaign promises. 

     Stitt should unleash the SA&I on state government to do performance audits, cut hardworking Oklahomans tax burden, and help existing Oklahoma businesses (not just oil and gas).  That will help Okies avoid the pain of regret!

Sunday, February 2, 2025

U.S WILL NOT BE 'STUPID' COUNTRY ANYMORE!

 Weekly Opinion Editorial


SHORT TERM PAIN=LONG TERM GAIN!

by Steve Fair

 

    President Trump announced tariffs on Mexico, Canada and China starting on February 1st.  Products imported from Canada and Mexico face a 25% tariff.  All products coming from China face a 10% tariff.  Energy resources from Canada will have a lower 10% tariff.

     The White House says President Trump is taking the bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country.

     Critics claim the move will hurt American consumers by driving prices higher and slowing global economic growth.  President Trump said the tariffs could create ‘some pain’ for Americans but ultimately will be ‘worth the price.’  Trump’s stated goals in imposing tariffs are to: (1) deter war by imposing economic harm to aggressive countries and (2) boast domestic manufacturing.  Three observations:

     First, countries don’t pay tariffs, consumers do.  Every fee, tax, tariff, assessment, duty or charge is ultimately paid by the person using the product.  Whether it be gasoline, groceries, clothing, or furniture, the end user pays the fee.  Tariffs are just added to the price on imports, so American consumers pay it, but only if they buy it. 

     Second, supply and demand will work.  The principle of supply and demand states the price of a good or service is determined by the interaction between the quantity of that good available (supply) and the desire for it by consumers (demand).  When demand is high and supply is low, prices rise, and vice versa, leading to an "equilibrium" price where supply matches demand. The cure for high prices is high prices.  The price of imported tomatoes and avocados from Mexico will temporally go up because of the tariff, impacting sales and consumption.  Short shelf-life products, like fresh produce, will quickly adjust pricing.  Other products may not react as rapidly, but eventually pricing will hit equilibrium.

     Third, America has a trade deficit.  It has an ‘unfavorable balance of trade.”  The U.S. imports more than it exports.  According The Kobeissi Letter (TKL), a weekly commentary on the global capital markets, the U.S. trade deficit rose a whopping +18% in December.  TKL reports exports declined by -4.5% and imports rose by +4%.  “The deficit was driven by weak economies overseas and a strong U.S. dollar.  The trade deficit has never been larger,” TKL says.  

     On Sunday, President Trump tweeted: "The USA has major deficits with Canada, Mexico, and China (and almost all countries!), owes 36 Trillion Dollars, and we’re not going to be the 'Stupid Country' any longer,"

     For decades, past administrations- both Democrat and Republican were more economically accommodating and amenable to foreign governments and companies than those countries were to America.  That acquiescence has created the trade deficit.  Past economic policy has made it much easier for foreign companies to do business in America(import) than for American companies to do business in other countries(export).  Trump’s tariffs could flip the script if Americans are willing to endure some short-term pain for long-term gain. 

 

Sunday, January 26, 2025

Trump’s XO calls attention to the real issue of illegal immigration- birth tourism!

 Weekly Opinion Editorial


ANCHORS AWAY!

by Steve Fair

     President Trump issued fifty-one (51) Executive Orders (XO) this week.  From halting diversity programs throughout the federal government to withdrawal from the World Health Organization (WHO), Trump wasted no time in overturning many of President Biden’s policies.  Some of the XOs are clearly within the power of the presidency, but others will no doubt be challenged in court.  The most controversial XO was titled, “Protecting the Meaning and Value of American Citizenship.”  Read it in its entirety at: https://www.whitehouse.gov/presidential-actions/2025/01/protecting-the-meaning-and-value-of-american-citizenship/

     Trump stated the 14th amendment to the Constitution was never meant to extend citizenship universally to everyone born within the United States.  He maintains that if the mother was unlawfully present in the country and father was not a U.S. citizen, then citizenship is not extended to their U.S. born offspring.  Trump’s decree, if upheld in court, would eliminate so called ‘anchor’ babies.  An anchor baby is a child that automatically becomes a U.S. citizen by being born on American soil.  They can help their illegal parents avoid deportation or gain legal residency.  Pew Research says over 300,000 babies were born in the U.S. to illegal immigrants in 2024- 8% of the total births in the country. 

     During the 2024 campaign, Trump repeatedly described birthright citizenship as "ridiculous" and something that needed to stop. The U.S. is one of roughly 30 countries where birthright citizenship is applied. Three observations:

     First, birth tourism is not just from south of the border.  Los Angeles is considered to be the center of the maternity tourism industry.  Catering to wealthy Asian women, it is hard to shut down because its not illegal for a pregnant woman to travel to the United States.  In 2015, the feds raided three-multimillion-dollar birth tourism businesses in LA, but none were closed.  An estimated 15-20,000 Korean children are born to illegals each year. Pew found 41% of illegal births each year in the U.S. are to Mexican citizens.  Birth tourism is real and needs to be addressed.

     Second, the XO’s legality will be fought in court.  U.S. District Judge John Coughenour, a Reagan appointee, issued an order blocking Trump’s policy from taking effect for 14 days.  "This is a blatantly unconstitutional order," Coughenour said.  Not everyone agrees. 

     Hans von Spakovsky, an attorney specializing in immigration, argues: “The 14th Amendment doesn’t say all persons born in the U.S. are citizens. It says “all persons born or naturalized in the United States and subject to the jurisdiction thereof” are citizens.  A tourist or illegal alien who violates our laws are not placing themselves within the ‘jurisdiction’ of the United States.”   

     In 1898, the Supreme Court of the United States (SCOTUS), affirmed the language of the 14th amendment in US vs. Wong.  Since that time, any child born on American soil has been granted citizenship.  Can the SCOTUS reverse the 1898 ruling?  Sure, but most legal experts say it is unlikely. 

     Third, the Constitution is unlikely to be amended.  The threshold is high, which is why the founding document has only been amended 27 times.  Article 5 of the Constitution outlines the amending process.  Two-thirds of Congress (House and Senate) must vote to approve an amendment or two-thirds of state legislatures can ask Congress to call a convention to propose an amendment.  The amendment must then be ratified by three-fourths of state legislatures before the Constitution is amended. 

     Trump’s XO calls attention to one of the real issues of illegal immigration- birth tourism!  Illegals traveling to the U.S. to exploit our generous citizenship laws without fully integrating into our society undermine the integrity of citizenship.  If the SCOTUS rules the 14th amendment doesn’t extend citizenship to children of illegal immigration, it will be anchors away.

Sunday, January 19, 2025

TRUMP NEEDS TO AVOID 2ND TERM CURSE!

 Weekly Opinion Editorial


HANG ON FOR CHANGE!

by Steve Fair

     On Monday January 20th, just after noon President Donald John Trump was sworn into office for his second term.  The ceremony was held in the Capitol Rotunda due to cold weather.  Oath of office was administered by Chief Justice John Roberts.  Oklahoman Carrie Underwood sang America the Beautiful.  The Navy Glee Club sang The Battle Hymn of the Republic.   A slew of executive orders followed including the round up of illegal immigrants for deportation.  Unlike Trump’s first term which started in a chaotic way, the second term appears to be more organized and thoughtful.  Three observations:

     First, Americans are ready for a change.  As evidenced by Trump’s margin of victory in November, average Americans are fed up with high inflation and government interference in their life.  Trump has vowed to enact tariffs and remove regulations that should spur the economy.  His market driven philosophy is much different than the outgoing administration, whose monetary policies caused supply shortages and record inflation.  Trump’s plan to cut government spending requires the cooperation of Congress, but voters sent a clear and powerful message in November they are not happy with business as usual.  Congressional stonewallers of Trump’s agenda- no matter what their Party affiliation- will face the wrath of voters in the midterms.

     Second, Republicans control government.  The GOP holds a majority in both chambers of Congress and the presidency.  Because of that, there is no excuse to not get meaningful legislature passed into law.  The challenge is going to be in the U.S. House, where the majority margin is so slim that just a couple of defectors can derail the agenda.  The uncooperative, disobliging GOP members who in the past have settled for nothing instead of something will not be viewed favorably by America if they stonewall Trump’s agenda.  In years past, when the American people have given Republicans total control of government, infighting has resulted in mayhem and havoc.  Hopefully the GOP has learned their lesson.

     Third, Trump needs to avoid the second-term curse.  Twenty-one U.S. presidents have served two terms.  According to the so-called second-term curse, all of them have been plagued by a major scandal, a catastrophe or difficulty in their second term.  Approval ratings are normally lower on average for second terms and economic indicators are not as robust in second terms.  Recognizing they will not face voters again often contributes to a daredevil rash approach to governing.  It appears Trump has surrounded himself with focused people determined to accomplish something.   

     Donald Trump is not your typical politician.  Trump’s life’s work hasn’t been public service.  He is a businessman.  His point of reference/perspective is much different than the classic elected official.  In his first term, his style of governing conflicted with the insider approach of DC, resulting in meaningful policy taking eons to get accomplished.  Productivity is likely to be much better in his second term.  Hang on for change!

Sunday, January 12, 2025

DAYLIGHT SAVINGS TIME DOESN'T MOVE THE SUN!

 Weekly Opinion Editorial


LOCK THE CLOCK!

by Steve Fair

   

     Standard time in the United started back in 1883 by the railroads in the instituting of standardized time zones.  The action came about after two trains on the same track, referencing two different time zones collided, resulting in the death of 14 people. Up until then, the time of day was a local issue, which created confusion and inconsistency. 

     The reason for the changing length of daylight throughout the year is because as the Earth tilts (23.5 degrees) on its axis, resulting in different parts of the Earth receiving different amounts of sunlight.   The Summer solstice (longest day) for Oklahoma is June 20th- the Winter solstice (shortest day) December 21st.  The Spring Equinox (equal light/darkness) occurs in the Sooner state is March 20th. All other days will have varying amounts of sunlight.  Changing our clock doesn’t change that.

     In 1918, Congress passed the Standard Time Act, which included Daylight Saving Time (DST).  DST was controversial and contentious and was repealed the next year.   Germany implemented DST in WWI to save energy.  The United Stated adopted DST as well, but stopped changing the clock after the war ended.      

     After WWII, state and local governments were given freedom to determine how to set their clocks and the result was chaos.  Those traveling a 35-mile route between Ohio and West Virginia crossed seven time zones.  The lack of consistency created confusion. In 1966, President Johnson signed the Uniform Time Act, standardizing the dates of beginning and ending of DST. 

     Ben Franklin is sometimes credited with the concept of DST.  When old Ben was living in France he wrote an essay extolling that locals should get up earlier and do more during daylight hours.  The truth is Franklin was just making fun of the French for sleeping till noon. 

     U.S. Senators James Lankford, (R-OK) and Rick Scott, (R- FL) have introduced the Sunshine Protection Act to officially ‘lock the clock,’ and end the twice annually time change.   DST would become the national year-round standard.  Two years ago, a similar bill was passed unanimously by the U.S. Senate, but never got a vote in the U.S. House because they couldn’t agree on whether to make DST or Standard time permanent.  President Trump says he supports locking the clock, but it uncertain whether in DST or standard time.

     First, Americans favor locking the clock.  A 2023 YouGov poll found that 62% of Americans want to end springing forward and falling backward. The poll found Americans spilt 50/50 on whether DST or standard time should be permanent.   Making DST permanent will have people driving to work in the dark in the morning during winter months, but the fact is Americans want to stop resetting their clocks twice a year.

     Second, DST doesn’t save anything.   Only the federal government would believe you can cut a foot of the top of a blanket, sew to the bottom and have a longer blanket. One of the reasons historically given for implementing DST is to save energy.  But the truth is DST has led to a slight increase in energy consumption due to increased air conditioning usage during later daylight hours.  DST doesn’t ‘move the sun.’   Only God can do that. 

    In the Bible, God caused the sun stand still for a day so Israel could fight a battle in daylight.  God didn’t just stop the sun- He caused hail and fire to reign on the enemy, giving Israel the victory over the Amorites. 

     Third, there are better ways to deal with less daylight.  Instead of changing the clock, let schools and businesses adopt seasonal hours of operation.  Instead of being a slave to a mechanical device, alter their schedules. 

     Studies have shown the human body is not designed to ‘reset its internal clock.’   After a time change, there are increases in car accidents, heart attacks and other health issues related to stress.  The study shows, due to poor sleep, more health care errors and less job productivity after the springing forward/falling backward ritual.   It’s past time to lock the clock!

Sunday, January 5, 2025

ELIMINATING WASTE IS HARDER THAN IDENTIFYING!

 Weekly Opinion Editorial


WASTE!

by Steve Fair

 

     Wasteful government spending has been an issue since America’s founding.  As the country has grown, so has the budgets at federal, state and local levels.  Most states have ‘balanced budget’ provisions, which requires that government not spend more than they take in.  That is not the case at the federal level.  In 2023, the federal government budget was $6.1 trillion ($47,000 per household).  The deficit was an astonishing $1.7 trillion.  With consumers paying more for less, taxpayers are struggling while government is not impacted. 

             The late Senator Tom Coburn famously published his annual ‘Wastebook,’ which highlighted wasteful spending, unusual research projects funded by grants, and tax breaks given to corporations.  Senators James Lankford and Rand Paul have continued the tradition and in 2024 they identified $10.5 trillion in wasteful spending.

     President Trump has created the Department of Government Efficiency (DOGE), headed by Elon Musk and Vivek Ramaswamy.  It’s objective is to cut the federal government down to size.  They will identify areas of waste and encourage Congress to cut funding.

     Oklahoma Speaker of the House designate Kyle Hilbert, (R-Bristow) coat tariled DOGE by announcing the creation of a web portal where Sooner taxpayers can report government waste, fraud, abuse and inefficiency.    Limited to 3,500 words, a taxpayer can vent about nine state agencies and their inaptitude.  To rail, go to https://former.okhouse.gov/doge/ Three observations:

     First, government- at all levels- is wasteful.  Unlike a business or a consumer, it’s rare to find an elected official or bureaucrat taking equity in spending.  Because they are spending the taxpayer’s money and not their own, they most often take the path of least resistance.  When compensation or job performance evaluation isn’t dependent on how tax dollars are managed, why take ownership?  Until taxpayers start holding those responsible with government oversight accountable, little will change.

     Second, identifying waste is easy than eliminating it.  The creation of a private group to examine and scrutinize federal government efficiency and spending has been done twice before, both with limited results. 

     In 1905, President Teddy Roosevelt created the Committee on Department Methods (CDM) to explore ways to improve government efficiency.  Headed by Charles Keep, an assistant secretary of the Treasury, the commission exposed massive bureaucracy and inefficiency in government procurement.  Unlike DOGE, CDM’s primary work was administrative process improvement.  Few of the Keep Commission’s recommendations were implemented.

     In 1982, President Reagan appointed industrialist Peter Grace to head up the Grace Commission, a group of 160 CEOs(all volunteers) to identify government waste.  The Commission was also charged with finding opportunities for increased efficiency and improving managerial and administrative controls.  After 18 months, the Grace Commission’s report pointed out $424 billion of bloat.  Some of their most egregious and shocking findings were: the Department of Defense (DOD) was spending $436 for a claw hammer and $511 for a single 60-watt lightbulb.   Only about one fourth of the Grace Commission’s recommendations were heeded by Congress.  Will DOGE do better?  Remains to be seen.

     Third, Oklahoma has a state auditor.  Unlike the federal government, Oklahoma has a constitutionally created office, elected by voters.  The state auditor should be unleased (authorized and funded) to do comprehensive performance audits on every agency that receives a dime of state tax dollars.  If Oklahoma state legislators are really serious about finding waste, that’s the way to find it.  Asking constituents to report their bad experiences at an state agency in a portal scores points at the ballot box, but it is not a precise method to identify government waste.   

     Wasteful spending is subjective.  What one person considers essential and needful, another finds extravagant and unnecessary. But when it comes to government, virtually all Americans recognize tax dollars are being frittered away.  Finding it is one thing- eliminating it another!