House Energy and Commerce Chairman Fred Upton (R-MI) visited Heritage yesterday and sat down to talk about the high price of gasoline and why more energy production is the answer.
The House of Representatives did pass the bill that the Congressman is talking about but the Senate killed it. H.R. 2021, the Jobs and Energy Permitting Act of 2011
The bill would eliminate needless permitting delays that have stalled important energy production opportunities off the coast of Alaska. Rather than having exploration air permits repeatedly approved and rescinded by the agency and its review board, the EPA will be required to take final action – granting or denying a permit – within six months. The Jobs and Energy Permitting Act of 2011 would speed up the permit process to help create jobs.
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President Obama c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
Liberals like Max Brantley of the Arkansas Times Blog have always been critical of any votes that would encourage more oil exploration in Alaska, but it is time to do so. We have to get these gas prices down. Take a look at this fine article from the Heritage Foundation:
There are an estimated 27 billion barrels of oil waiting to be tapped in the Arctic Ocean, off the coast of Alaska. But after spending five years and nearly $4 billion, Shell Oil Company has been forced to abandon its efforts to drill for oil in the region.
With gas at $4 per gallon and higher, one might think that more oil would be a good thing. So what’s the road block? The Environmental Protection Agency. Fox News reports that the EPA is withholding necessary air permits because of a one square mile village of 245 people, 70 miles from the off-shore drilling site. From Fox News’ Dan Springer:
The EPA’s appeals board ruled that Shell had not taken into consideration emissions from an ice-breaking vessel when calculating overall greenhouse gas emissions from the project. Environmental groups were thrilled by the ruling.
“What the modeling showed was in communities like Kaktovik, Shell’s drilling would increase air pollution levels close to air quality standards,” said Eric Grafe, Earthjustice’s lead attorney on the case.
The Environmental Appeals Board has four members: Edward Reich, Charles Sheehan, Kathie Stein and Anna Wolgast. All are registered Democrats and Kathie Stein was an activist attorney for the Environmental Defense Fund. Members are appointed by the EPA administrator.
President Barack Obama said in his weekly address on Saturday that “there’s no silver bullet that can bring down gas prices right away,” but that one thing America can do is pursue “safe and responsible production of oil at home.” Too bad his words and his actions are not one and the same. Aside for the EPA’s decision on Shell, the Obama administration has imposed a months-long moratorium on deepwater offshore drilling that curtailed domestic production and sent some seven drilling rigs elsewhere.
The Heritage Foundation’s Nicolas Loris recommends the following actions for Congress and President Obama if they truly want to expand access to America’s domestic energy supply:
Allow access to domestic reserves. Permitting exploration of reserves in Alaska, Colorado, Wyoming, and federal waters offshore would inject confidence into the market, create jobs, and stimulate the economy.
Roll back regulatory burdens on companies. Strapping companies with onerous regulatory processes only hinders access. Litigation opportunities should be limited and the permitting process made more rational.
Issue offshore drilling permits. Lifting the de facto moratorium on offshore drilling permits would gain companies access to domestic resources and increase our domestic energy supply.
Now it’s your turn. What do you think about the EPA’s decision? Join in the conversation by leaving a comment below.
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Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.
Sincerely,
Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com
If you follow us on twitter then you won’t get overloaded. I tweet about 5 times a week and include links to my blog of the day. Tweets 51s thedailyhatchorg @everettehatcher The Founding Fathers believed that our leaders should believe in the afterlife and future rewards and punishments. https://thedailyhatch.org/2012/07/11/the … I got an email from […]
Senator Kay Bailey Hutchison delivered remarks regarding her landmark proposal on entitlement reform, the Defend and Save Social Security Act at the Heritage Foundation’s “Saving Social Security” event. Sen. Hutchison announced that Senator Jon Kyl (R-AZ), member of Biden’s budget working group, has lent his support of her bill as the original cosponsor. At her press conference last week, Sen. Hutchison unveiled her Social Security proposal, and today she reiterated the urgency of putting Social Security on the table in the Biden budget group discussions. Sen. Hutchison sent a letter to Vice President Joe Biden last week urging him to incorporate Social Security reform in the ongoing deficit reduction debates that he is leading.
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President Obama c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500
There are two serious problems with America’s Social Security system. Almost everyone knows about the first problem, which is that the system is bankrupt, with huge unfunded liabilities of about $30 trillion.
The other crisis is that the system gives workers a lousy level of retirement income compared to the amount of taxes they pay during their working years. Younger workers are particularly disadvantaged, as are African-Americans because of lower life expectancy.
These are critical issues, but perhaps looking at a couple of charts is the best way to illustrate why the Social Security system is inadequate.
This system, which was made universal by the Labor Party beginning in the 1980s, has turned every Australian worker into a capitalist and generated private wealth of nearly 100 percent of GDP. Here’s a chart, based on data from the Australian Prudential Regulation Authority.
Now let’s look at one of the key numbers generated by America’s tax-and-transfer entitlement system. Here’s a chart showing the projected annual cash-flow deficits for the Social Security system, based on the just-released Trustees’ Report.
By the way, the chart shows inflation-adjusted 2012 dollars. The numbers would look far worse if I used the nominal numbers.
The two charts aren’t analogous, of course, but that’s because there’s nothing to compare. The Social Security system has no savings. Indeed, it discourages people from setting aside income.
And Australia’s superannuation system doesn’t have anything akin to America’s unfunded liabilities. The closest thing to an analogy would be the safety net provision guaranteeing a basic pension to people with limited savings (presumably because of a spotty employment record).
So now ask yourself whether Australia should copy America or America should copy Australia? Seems like a no-brainer.
___________
Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.
Sincerely,
Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com
THE OPEN MIND
Host: Richard D. Heffner
Guest: Milton Friedman
Title: A Nobel Laureate on the American Economy VTR: 5/31/77
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HEFFNER: Indeed. You know, I was thinking about, before we began to do this program, I was thinking about where is it written. And I was considering going back to a very ancient civilization, mostly in terms of the reports that we have that you may in your visits to Israel advise the new Israeli government in terms of its economic problems. And I wanted to ask you a question. I wanted to ask you a question about a remark that I had heard you make in connection with this story about the role you might play in relation to the new Israeli government. You said something like this – and to the degree that I’m distorting your words or your thoughts, please correct me – “It is somewhat strange that socialism is supposed to find so many friends, and capitalism so many enemies among Jews when perhaps some people might think that the essence of the Jewish tradition is so alien to socialism and so akin to capitalism.” And I wondered, to the extent that you meant much of that, what you meant by it?
FRIEDMAN: Well, I think I mean, I would endorse certainly that statement as you put it, while going onto say it needs some elaboration in some respects. Let me see if I can put it to you in a sort of a different way. My first visit to Israel was made about 15 years ago. I was there for about three months as a visitor at the Hebrew University in Jerusalem. And after I left Israel, I summarized my impressions by saying that I thought that the best way to understand Israel was to recognize that two Jewish traditions were at war with one another in Israel. One of them was a very recent tradition, a tradition of 100, 150 years old. That’s the tradition of socialism. That’s the tradition you referred to in your initial comments, that it is true that on the whole the Jewish intellectuals have been strongly pro-socialist. And that’s contributed disproportionately to the socialist literature. That was the one tradition. The other tradition, I said, was a tradition that was at least 2,000 years old. It was a tradition that had arisen during the Diaspora and as a result of the Diaspora. It was a tradition of how you get around government regulations, how you find chinks in controls, how you find those areas in which the free market operates and make the most of them. It was that tradition which had enabled the Jews to survive during centuries of persecution by the constituted authorities. Once in a while there would be a monarch who would intervene in favor of the Jews. But almost always that was because there had been a Jew who had accumulated enough money through the free market, through capitalism, to have loaned money to the monarch and have him in his debt. The story in the Bible of Esther is not a very usual story. That isn’t usually the way it occurs. Most of the time the Jews have survived despite the opposition of the powers that be, not because of them. And this ancient tradition of 2,000 years is still very much alive in Israel. And what I said at that time was that fortunately for Israel the ancient tradition is strongly renewable.
Now, let me go back to that in a modern context. I believe that there are few people in the world who have benefitted as much from capitalism and free enterprise as the Jews. Suppose you ask yourself in what countries it is that the Jews have been able to survive and thrive. They’ve been able to survive and thrive primarily in those countries that have had capitalism and free enterprise. They haven’t been able to survive and thrive in the socialist utopias of Russia or of Poland. They haven’t been able to, they weren’t able to survive and thrive in the national socialist state of Nazi Germany. They have been able to survive and thrive in places like Great Britain, in Germany when it was capitalist before Hitler, in France which is largely capitalist, and the United States. And more important, in what parts of those economies have they done best? In those parts where government has had the least role to play. You do not find in the United states that the Jews have done very well in large-scale manufacturing or in commercial banking, because those are areas which are very closely intertwined with government. In banking you need a governmental franchise. And there is probably no industry in the United States in which there are fewer Jews, surprising as it may seem, in major positions of responsibility than in the commercial banking industry. Where have they thrived? In the industries which have been most competitive, where there’s been the least monopoly, private or public: retaining, which was open to all; in new industries, in Hollywood. Why? Because it was a new, brand new industry. There were no settled positions of privilege or of power, no government involvement.
So, Jews have done best – and other minorities. I’m not only speaking of Jews. If you look at the Japanese in the United States, if you look at the blacks in the United States, in every case they have done best in those areas where you have had the greatest degree of competition; and they have done worst in those areas where you have had the most monopoly and the most governmental link to government. So on the one hand, there are no people in the world who have benefitted so much from capitalism as the Jews. Look at Israel. Suppose socialism had triumphed in the world. How would Israel have gotten support? Did Israel get support in its early and difficult days from the governments of the world? Or from people? And from what people? From the Jews who had managed to make a little bit of a competence for themselves and accumulated a little funds in the capitalist bastions of the world.
So, the Jews have benefitted enormously from capitalism. And yet on the other side – and that’s the issue you raise – here you have the paradox that the Jews have been among those who have contributed much to undermine the intellectual foundations of capitalism.
HEFFNER: Is this a dichotomy that exists in contemporary Israel too?
FRIEDMAN: Of course. Of course. It has existed.
HEFFNER: Then how will you make a contribution?
FRIEDMAN: Oh, well, you know how it is. I will make a contribution. I would be delighted to if I could. But you know, people ask for advice from people who they know will give them the advice they want to hear. Well, there’s no shortage of good economists in Israel. They are very good economists. They know what to do. And in fact, the economists in Israel have not been in favor of governmental policies in Israel. It’s like it has been in the United States, where the economists have been opposed uniformly to many governmental policies, such as the price-fixing policies I was talking about, such as rent control. Similarly, the economists in Israel have been almost unanimously opposed to some, many governmental controls and regulations. What’s happened in Israel is that you now have a new party that came into power. … It’s a party that proclaims it’s belief in private enterprise. It proclaims its desire to reduce the size of government and to give greater opportunities to individuals. Their objectives are excellent. I hope they achieve them. I’m not wholly confident that they will, in fact. I have many doubts about whether they will succeed. And a reason why they have asked me if I would advise them is because they know that I believe in a free economy and that their policy is my policy. And insofar as I can give any assistance, I am delighted to, both because of my general desire to see freedom prosper, and also because I have a very strong personal sympathy and interest in Israel. I am Jewish by origin and culture. I share their values and their belief. I share the admiration which many have had for the miracles that have occurred in Israel. So if I can make any contribution to a more effective policy for preserving Israel, Israel’s freedom and strength, I would certainly be delighted to do so.
With the national debt increasing faster than ever we must make the hard decisions to balance the budget now. If we wait another decade to balance the budget then we will surely risk our economic collapse.
The first step is to remove all welfare programs and replace them with the negative income tax program that Milton Friedman first suggested.
Milton Friedman points out that though many government welfare programs are well intentioned, they tend to have pernicious side effects. In Dr. Friedman’s view, perhaps the most serious shortcoming of governmental welfare activities is their tendency to strip away individual independence and dignity. This is because bureaucrats in welfare agencies are placed in positions of tremendous power over welfare recipients, exercising great influence over their lives. In addition, welfare programs tend to be self-perpetuating because they destroy work incentives. Dr. Friedman suggests a negative income tax as a way of helping the poor. The government would pay money to people falling below a certain income level. As they obtained jobs and earned money, they would continue to receive some payments from the government until their outside income reached a certain ceiling. This system would make people better off who sought work and earned income.
Here is a portion of the trancript of the “Free to Choose” program called “From Cradle to Grave” (program #4 in the 10 part series):
For the past 7 years Maureen Ramsey has had to buy food and clothes for her family out of a government handout. For the whole of that time, her husband, Steve, hasn’t had a job. Each week he collects what’s known in Britain as Social Security. The government looks after him, his wife and their children. But accepting welfare payments means accepting the rules of those who hand them out.
Mrs. Ramsey: My opinion, anyway you feel as they own you. You know, there is no other way of putting it. Say I got a job tomorrow, because I needed something, well I know that means I’ve got to go down there and report it. Because I couldn’t go into the job because you’d be looking over your shoulder thinking well the Social Security is coming in. And I’m going to be done for it. It’s just hopeless, you can’t fight against that.
Mr. Ramsey: The jobs are out there you only come up with about 45 pounds a week. And you need a doctors stamp over there. You see, you finish up with about 29 pound. So what good is it working? You still get the same thing, you know what I mean? I can’t make any sense of it.
Friedman: Of course, he’s quite right. It may not pay to get a job now. That’s not his fault and I don’t blame him. He’s acting sensibly and intelligently for his own interest and the interest of his family. It’s the fault of the system which takes away the incentive from him to get a job.
But suppose you were cruel and simply took away the welfare overnight. Cut it off. What would happen? He would find a job. What kind of a job? I don’t know. It might not be a very nice job. It might not be a very attractive job. But at some wage, at some level of pay, there will always be a job which he could get for himself. It might be also that he would be driven to rely on some private charity. He might have to get soup kitchen help or the equivalent. Again, I’m not saying that’s desirable or nice or a good thing it isn’t, but as a matter of actual fact as to what would happen, there is little doubt that he would find some way to earn a living.
The American government is trying to break the welfare trend. These people were unemployed. They are now being trained at the taxpayers expense. It may or may not lead to a real job.
Lawrence Davenport: Here we have a vast national welfare system which is diametrically opposed to everything that America believes in. Because America was founded on a work ethic, has practiced a work ethic, and it’s said this is what we want everybody to do. An opportunity to hold a job in America.
Friedman: Everyone here has to clock in and do a full days work. It’s an attempt to make it seem like a real job.
Lawrence Davenport: We’re saying a job is a part of the American way of life and we’re going to help you find a job. So that you can get a piece of the pie. You can pay taxes, you can become a part of that American dream.
Friedman: But the dream isn’t working. Schemes like this run under the government’s Comprehensive Education and Training Act (CETA) have a high drop out rate and many trainees end up back where they began, on welfare.
The men and women who administer CETA and similar programs, the officials of the Department of Health, Education and Welfare are dedicated people. Their motives are good. Their achievements are not.
The results of these programs have been disappointing. Why? I believe that the basic reason is because it is very hard to achieve good objectives through bad means. And the means we have been using are bad in two very different respects.
In the first place, all of these programs involve some people spending other people’s money for objectives that are determined by still a third group of people. Nobody spends somebody else’s money as carefully as he spends his own. Nobody has the same dedication to achieving somebody else’s objectives that he displays when he pursues his own.
Beyond this, the programs have a insidious effect on the moral fiber of both the people who administer the programs and the people who are supposedly benefiting from it. For the people who administer it, it instills in them a feeling of almost Godlike power. For the people who are supposedly benefiting it instills a feeling of childlike dependence. Their capacity for personal decision making atrophies. The result is that the programs involved are misuse of money, they do not achieve the objectives which it was their intention to achieve. But far more important than this, they tend to rot away the very fabric that holds a decent society together.
If you think that’s overstating the case, look what ATW found when it made a special investigation into the spending of the vast funds it administers.
Public Health Service worker: We just got the plan from the Public Health Service on reducing unnecessary beds.
Friedman: In these reels of tape that record every payment made, every recipient, they found evidence that a staggering $7.5 billion had been lost by fraud, waste and abuse in one year.
Doctors, building contractors, hospitals, schools, welfare recipients, everyone had been fraudulently dipping into the pot. And the investigation isn’t over yet.
The inevitable consequence of having a huge pot of taxpayers money is that all of us want to get our hands in it. You can be sure that we’ll all be able to find very good reasons why we should be the ones to spend somebody else’s money.
Somebody or other put up a good case for spending taxpayers money to subsidize rents in New York City, including the rents of these apartments. The people who occupy these apartments pay something like $200 a month less than the market rent. And that subsidy comes out of the taxes of people, most of whom are much poorer than the people who live here. It’s not unusual for this sort of thing to happen when government tries to do good with our money.
Look at what happened in Chicago. For most visitors, the immediate impression is of a rich, prosperous, bustling city. But like every large city in America, it has its problem areas. Over crowded slums breeding poverty and crime.
After WWII, one such area developed in Hyde Park. In the 50’s, plans were drawn up to pull down large areas of slum buildings and to rebuild using government funds under an urban renewal program. It was to be a show project replacing a blighted area with an integrated community. Who controlled the spending of that government money? It was in fact, my own University of Chicago which felt it’s very existence threatened by the spread of urban blight and crime. Government money was used to tear down an area that contained many small shops as well as families of low income. Once the area was cleared, private money rebuilt it with middle class apartments, townhouses and shopping complexes. The blight had been cleared here, but only to be shifted elsewhere.
Joe Gardner: In may instances, when government administers large grants, a lot of those funds don’t wind up directly serving the people and achieving the objectives that were the intent of the programs. Because the grant has too feed that large government bureaucracy.
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Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.
Sincerely,
Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com
Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians who lived here traded the 22 square miles of soggy Manhattan Island to the Dutch for $24.00 worth of cloth and trinkets. The newcomers founded a city, New Amsterdam at the edge of an empty continent. In the years that followed, it proved a magnet for millions of people from across the Atlantic; people who were driven by fear and poverty; who were attracted by the promise of freedom and plenty. They fanned out over the continent and built a new nation with their sweat, their enterprise and their vision of a better future.
For the first time in their lives, many were truly free to pursue their own objectives. That freedom released the human energies which created the United States. For the immigrants who were welcomed by this statue, America was truly a land of opportunity.
They poured ashore in their best clothes, eager and expectant, carrying what little they owned. They were poor, but they all had a great deal of hope. Once they arrived, they found, as my parents did, not an easy life, but a very hard life. But for many there were friends and relatives to help them get started __ to help them make a home, get a job, settle down in the new country. There were many rewards for hard work, enterprise and ability. Life was hard, but opportunity was real. There were few government programs to turn to and nobody expected them. But also, there were few rules and regulations. There were no licenses, no permits, no red tape to restrict them. They found in fact, a free market, and most of them thrived on it.
Many people still come to the United States driven by the same pressures and attracted by the same promise. You can find them in places like this. It’s China Town in New York, one of the centers of the garment industry __ a place where hundreds of thousands of newcomers have had their first taste of life in the new country. The people who live and work here are like the early settlers. They want to better their lot and they are prepared to work hard to do so.
Although I haven’t often been in factories like this, it’s all very familiar to me because this is exactly the same kind of a factory that my mother worked in when she came to this country for the first time at the age of 14, almost 90 years ago. And if there had not been factories like this here then at which she could have started to work and earn a little money, she wouldn’t have been able to come. And if I existed at all, I’d be a Russian or Hungarian today, instead of an American. Of course she didn’t stay here a long time, she stayed here while she learned the language, while she developed some feeling for the country, and gradually she was able to make a better life for herself.
Similarly, the people who are here now, they are like my mother. Most of the immigrants from the distant countries __ they came here because they liked it here better and had more opportunities. A place like this gives them a chance to get started. They are not going to stay here very long or forever. On the contrary, they and their children will make a better life for themselves as they take advantage of the opportunities that a free market provides to them.
The irony is that this place violates many of the standards that we now regard as every worker’s right. It is poorly ventilated, it is overcrowded, the workers accept less than union rate __ it breaks every rule in the book. But if it were closed down, who would benefit? Certainly not the people here. Their life may seem pretty tough compared to our own, but that is only because our parents or grandparents went through that stage for us. We have been able to start at a higher point.
Frank Visalli’s father was 12 years old when he arrived all alone in the United States. He had come from Sicily. That was 53 years ago. Frank is a successful dentist with a wife and family. They live in Lexington, Massachusetts. There is no doubt in Frank’s mind what freedom combined with opportunity meant to his father and then to him, or what his Italian grandparents would think if they could see how he lives now.
Frank Visalli: They would not believe what they would see __ that a person could immigrate from a small island and make such success out of their life because to them they were mostly related to the fields, working in the field as a peasant. My father came over, he made something for himself and then he tried to build a family structure. Whatever he did was for his family. It was for a better life for his family. And I can always remember him telling me that the number one thing in life is that you should get an education to become a professional person.
Friedman: The Visalli family, like all of us who live in the United States today, owe much to the climate of freedom we inherited from the founders of our country. The climate that gave full scope to the poor from other lands who came here and were able to make better lives for themselves and their children.
But in the past 50 years, we’ve been squandering that inheritance by allowing government to control more and more of our lives, instead of relying on ourselves. We need to rediscover the old truths that the immigrants knew in their bones; what economic freedom is and the role it plays in preserving personal freedom.
That’s why I came here to the South China Sea. It’s a place where there is an almost laboratory experiment in what happens when government is limited to its proper function and leaves people free to pursue their own objectives. If you want to see how the free market really works this is the place to come. Hong Kong, a place with hardly any natural resources. About the only one you can name is a great harbor, yet the absence of natural resources hasn’t prevented rapid economic development. Ships from all nations come here to trade because there are no duties, no tariffs on imports or exports. The power of the free market has enabled the industrious people of Hong Kong to transform what was once barren rock into one of the most thriving and successful places in Asia.
If you enjoyed that then take a look at the other segments:
PETERSON: Well, let me ask you how you would cope with this problem, Dr. Friedman. The people decided that they wanted cool air, and there was tremendous need, and so we built a huge industry, the air conditioning industry, hundreds of thousands of jobs, tremendous earnings opportunities and nearly all of us now have air […]
Part 5 Milton Friedman: I do not believe it’s proper to put the situation in terms of industrialist versus government. On the contrary, one of the reasons why I am in favor of less government is because when you have more government industrialists take it over, and the two together form a coalition against the ordinary […]
The fundamental principal of the free society is voluntary cooperation. The economic market, buying and selling, is one example. But it’s only one example. Voluntary cooperation is far broader than that. To take an example that at first sight seems about as far away as you can get __ the language we speak; the words […]
_________________________ Pt3 Nowadays there’s a considerable amount of traffic at this border. People cross a little more freely than they use to. Many people from Hong Kong trade in China and the market has helped bring the two countries closer together, but the barriers between them are still very real. On this side […]
Aside from its harbor, the only other important resource of Hong Kong is people __ over 4_ million of them. Like America a century ago, Hong Kong in the past few decades has been a haven for people who sought the freedom to make the most of their own abilities. Many of them are […]
“FREE TO CHOOSE” 1: The Power of the Market (Milton Friedman) Free to Choose ^ | 1980 | Milton Friedman Posted on Monday, July 17, 2006 4:20:46 PM by Choose Ye This Day FREE TO CHOOSE: The Power of the Market Friedman: Once all of this was a swamp, covered with forest. The Canarce Indians […]
Saving the American Dream is The Heritage Foundation’s plan to fix the debt, cut spending and, above all, restore prosperity. It balances the nation’s budget within a decade—and keeps it balanced. It reduces the debt and cuts government in half. It eliminates government-mandated health care and fully funds our national defense. It squarely confronts Social Security, Medicare, and Medicaid, the three so-called entitlement programs, which together account for 43 percent of federal spending today.
To encourage Americans to become more fiscally responsible, the Heritage plan redesigns our entire tax system into an expenditure tax that will have a single, flat rate. This is a structure that will promote savings, therefore benefiting individual Americans, our body politic, and the economy.
At the end of the day our plan, while economic in nature, has a higher moral purpose. If entitlements are not reformed, the next generation and future ones will have to pay punitive tax rates that will end liberty as we have known it. Our proposal, which was funded by a grant initiative set up by the Peter G. Peterson Foundation, aims to preserve America’s promise bequeathed to us by past generations.
Social Security
Summary
Social Security is the largest single federal program, paying out about $700 billion per year to some 60 million Americans. It is a major source of retirement income for millions of Americans. Yet Social Security went into the red in 2010, paying out more in benefits than people paid in as payroll taxes. The Congressional Budget Office says that these deficits will continue for at least the next 75 years and probably indefinitely.
What Is Social Security?
Social Security, today’s largest single federal program, provides (1) retirement income to workers and their spouses, (2) survivors benefits to the family members of deceased workers, and (3) disability benefits for workers who have been injured and are unable to work and to the families of those workers. The program is funded by a 12.4 percent payroll tax that is paid equally by both the worker (6.2 percent) and his or her employer (6.2 percent). Employers correctly see their contribution as a part of the employee’s total compensation.
In 2009, the most recent year for which data are available, Social Security spent a total of $685.8 billion providing these benefits. That was also the last year that Social Security collected more in payroll taxes than it paid out in benefits. Starting in 2010, the program started to run cash-flow deficits that the Congressional Budget Office says are unlikely ever to end. The annual Social Security deficit will increase every year until about 2030, when it will reach about $350 billion annually in 2010 dollars (without including any inflation), and stay at approximately that level permanently.
Social Security does have a $2.5 trillion trust fund from the surpluses that it collected between 1983 and 2009—but that money isn’t there. Rather than build up real assets in a real trust fund, Congress actually spent that money on everything from roads to corporate welfare. That trust fund is filled with special-issue Treasury bonds that the U.S. Treasury is required to finance when they are needed to fund Social Security’s deficits. As they are bonds not backed by any real assets, the government will have to either borrow or raise taxes to pay for them.
In essence, then, these bonds are really a demand on future tax collections—a lien. In 2010, the Treasury started to redeem these bonds, or tax liens, by tapping into other tax sources in order to cover Social Security’s deficits. Around 2037, even those special-issue bonds will run out. From that time on, under the provisions of current law, every retiree—no matter how wealthy or how poor—will have his or her Social Security benefits cut by about 22 percent.
Over the next 75 years, the program has promised to pay $7.8 trillion more in benefits than it will receive in payroll taxes. The only way that future retirees can collect all of the benefits promised to them is to make their children and grandchildren pay massive amounts of additional taxes.
Heritage proposes to solve these problems and strengthen the Social Security system by tightening its benefits and returning it to its original purpose: a guarantee that older Americans won’t fall into poverty. Heritage proposes to make Social Security “real insurance” for Americans as they reach retirement.
This reform means that Social Security’s promises in the future will change in several ways:
Social Security will gradually be transformed from an “income replacement” system back to its original purpose of guaranteeing seniors freedom from fear of poverty and assuring a decent retirement income. This means that Social Security benefits will evolve over time into a flat payment to those who work more than 35 years—a flat payment that is sufficient to keep them out of poverty throughout their retirement.
Because the new Social Security is a real insurance system, designed to protect seniors from poverty, retirees with high incomes from sources other than Social Security will receive a smaller check, and very affluent seniors will receive no check. This transparent way of income-adjusting benefit checks will replace the method used today, whereby the checks of even modest-income seniors are taxed and thus reduced.
To help make up the difference between the new Social Security benefit and what workers may desire for a more comfortable retirement, our plan will create greater incentives for workers of all income levels to save more for retirement. These savings will supplement their Social Security and create a more secure retirement.
Americans live much longer than they used to. While this is good news, it means that they are spending a much higher proportion of their lives in retirement. Regrettably, these longer retirements play a major role in Social Security’s financial problems. For this reason, the Social Security retirement ages will be raised gradually and then indexed to life expectancy. This will create a more reasonable balance between the number of years a person works and the number of years one receives Social Security benefits.
To encourage people to stay in the workforce longer, those who work beyond full retirement age will receive a higher level of after-tax income during the period when they are not claiming benefits.
This new Social Security system is reasonable, predictable, and affordable. It focuses resources on those who need the most help while providing complete protection against poverty for all seniors who qualify for full benefits.
The Details
A Predictable Benefit That Provides Economic Security. The centerpiece of the new Social Security system involves a gradual transition to a flat benefit that pays retirees who qualify for a full Social Security check. This amount is well above the income level that the Census Bureau says an American over the age of 65 needs to avoid poverty.
Thus, the new system will guarantee that no retiree falls into poverty because of insufficient income. Under today’s system, retirees can pay Social Security taxes for 35 years and still receive a benefit that is below the poverty level. Some of these seniors are forced to go on welfare. The new system corrects this serious flaw.
The flat benefit will be the equivalent of about $1,200 per month in 2010 dollars when the reform is complete. This is both higher than today’s average Social Security retirement benefit payment ($1,164 per month) and well above the 2009 poverty level for a single adult over age 65 ($857 per month). To ensure that future retirees do not slip back into poverty, the flat benefit level will be indexed for wage growth.
Slow Transition to the New Flat Benefit. The new flat benefit will be phased in slowly. Current retirees and those who are close to retirement will see only a minimal change in the basic design of their benefits. Those with a significantly longer time before retirement, who have more flexibility in planning their future, will see larger changes in their benefits. Workers born after 1985 will come under the new flat Social Security benefit system when they retire.
Limiting Social Security to Those Who Actually Need It. In addition to moving to a flat benefit over time, the plan makes Social Security a properly financed, true insurance program. It starts to do that immediately. This means that the program will concentrate on protecting the economic security of retirees rather than following the current approach of promising unaffordable benefits to all without regard to need.
This new approach means that retirees with substantial non–Social Security retirement income will start receiving a lower benefit on a sliding scale that gradually reduces Social Security checks to zero for those with the highest non–Social Security incomes. This transparent mechanism will apply to benefits received by affluent Americans under both the current system and the flat-rate system. This transparent, sliding-scale approach is a major improvement on today’s taxation of Social Security benefits.
Under the plan, income-adjusted benefits start in 2012 as individual retirees with non–Social Security incomes above $55,000 start to see a slight reduction in benefit payments. Those with higher non–Social Security income will see larger reductions in their checks. Individuals with more than $110,000 in non–Social Security income will receive no Social Security payments. Married couples who file taxes jointly would be subject to higher thresholds, with benefits beginning to phase out at a joint non–Social Security income of $110,000 and ending when income reaches $165,000. Married couples can decide whether they want to qualify for benefits as individuals or jointly as a couple. The income thresholds will be indexed for inflation.
Income-adjusting benefits is not new. It occurs in today’s Social Security system. But it is largely hidden today and hits lower-income seniors, not just the affluent. Seniors with as little as $15,000 in non–Social Security income, or even less in some cases, must pay tax on part of their benefits. Seniors with more income than that pay steadily higher rates of tax on more of their Social Security benefits. The Heritage approach, when fully phased in, would income-adjust benefits transparently and not tax the benefits a senior receives. It also would start income-adjusting at a much higher income. Today, about half of seniors have their checks eroded by taxation. Under the Heritage plan, only about 9 percent of seniors would see their checks reduced and only just over 3.5 percent of seniors would receive no check.
Real insurance also protects seniors from poverty if their financial situation changes. Retirees who suffer a sudden and permanent drop in non–Social Security income would find their benefits rapidly restored.
More Accurate Inflation Protection. The annual cost of living adjustment (COLA) for Social Security, which protects retirees against inflation, will be based on the Chained Consumer Price Index (C-CPI-U), a measure of inflation that is more accurate than the index used currently. The Bureau of Labor Statistics specifically designed this inflation measure to better reflect the way that consumers buy different items as the prices of various products fluctuate.
A More Reasonable Retirement Age. The plan adjusts the standard retirement age to reflect increases in life expectancy and those anticipated in the future. Under the plan, these changes are phased in gradually. Those nearing retirement are affected only slightly. Over the next 10 years, the age for full benefits rises to 68 for workers born in or after 1959. Over the next 18 years, the early retirement age rises to 65 for workers born in or after 1964. After that, both early and normal retirement ages will be indexed to longevity, which will add about one month every two years according to current projections.
The plan recognizes that a small proportion of workers will be physically unable to work until these ages. It therefore includes an improved disability system to protect them. The reformed disability system ensures that those who are unable to work longer receive a quick and accurate decision on their benefit application rather than facing today’s long delays, and improves today’s often arbitrary decision-making process.
Incentives to Work Longer. Starting immediately,those who work past their full-benefit age receive a special annual tax deduction of $10,000,regardless of income level. For instance, once the new system is completely phased in, a worker earning $50,000 per year who delays Social Security payments will see a $200 per month increase in spendable income.
An Improved Savings Plan to Supplement Social Security. As Social Security is transformed into a real insurance system that focuses scarce resources on those who need them most, the plan also creates better ways for workers to build savings for retirement.
Beginning in 2014, a new savings plan will be introduced over two years. Under this plan, 6 percent of each worker’s income is placed in a retirement savings plan that the worker owns and controls unless he or she explicitly declines to have such an account. (This approach is known as automatic enrollment.)
This new, additional retirement security system gives Americans another tool with which to secure their retirement standard of living. Savings are invested through an improved version of the IRA/401(k) employment-based retirement savings system already familiar to Americans. The money put into these savings accounts will not be double-taxed, unlike today’s Social Security payments and many other savings mechanisms.
In addition to this new savings plan, workers have two other important ways to save for retirement.
First, under the reformed tax system detailed below, all savings (without limit) will no longer be double-taxed. Savings remain completely free of taxation until they are actually spent.
Second, as benefit reforms drive the costs of Social Security below the level of taxes collected, those savings will go into the workers’ accounts.
The Bottom Line
The Heritage plan reforms Social Security to create a retirement security system that will be available for future generations. It will be one that provides a reasonable, predictable, and affordable benefit that ensures that no retiree who has worked for 35 years or more faces poverty or economic insecurity. At the same time, this new system protects our children and grandchildren from the massive tax increase that would be necessary to pay all of the Social Security benefits that Washington has irresponsibly promised.
The liberal John Brummett in his article, “The fine art of thinking,” Arkansas Democrat-Gazette, August 2, 2012, asserted:
This pledge has become ruling Republican creed and a requirement to escape a GOP primary since it was cooked up by Grover Norquist. He’s a pugnacious lobbyist and conservative activist, formerly with the rabidly right-wing U.S. Chamber of Commerce, who heads a group he calls Americans for Tax Reform.
The pledge is probably not wholly responsible for destroying Washington.
Part of the blame also must be assigned to money, particularly the kind to which Burris referred that comes only if you sign the pledge.
If exercised to its logical conclusion, the pledge would force Republicans in Congress to reduce spending without adding new tax revenue. That, in turn, would send new burdens for roads and human services to state governments, where Republican legislators also would have vowed not to raise taxes.
Not only is that the logical conclusion, but it is also, I suspect, the real objective. By that I mean trying to squeeze government nearly out of business.
Liberals like Brummett think the government knows better than us how to spend money and that is why he is so angry at Grover Norquist. I come from a conservative point of view and I see the world much differently.
Government will spend whatever money we give it. About 100 years ago the federal government was spending than 5% of GDP and state and local governments were spending about double that amount. Now the federal government is at 24.7%. We need to stop giving them so much money and the only way to do that is to cut taxes.
“.If we adopt such programs, does not fiscal responsibility at least call for imposing taxes to pay for them? The answer is that postwar experience has demonstrated two things. First, that Congress will spend whatever the tax system will raise—plus a little (and recently, a lot) more. Second, that, surprising as it seems, it has proved difficult to get taxes down once they are raised. The special interests created by government spending have proved more potent than the general interest in tax reduction.
“If taxes are raised in order to keep down the deficit, the result is likely to be a higher norm for government spending. Deficits will again mount and the process will be repeated.”
Sure enough, a year later a 10% income tax surcharge was enacted by Congress to cut the deficit and fight inflation. His prediction having been confirmed
Milton Friedman videos and transcripts Part 11 On my blog http://www.thedailyhatch.org I have an extensive list of posts that have both videos and transcripts of MiltonFriedman’s interviews and speeches. Here below is just small list of those and more can be accessed by clicking on “Milton Friedman” on the side of this page or searching […]
Milton Friedman – White House Tribute (2002) Published on May 31, 2012 by BasicEconomics President Bush spoke about the life and career of Milton Friedman at a ceremony honoring him for his work and impact in the field of economics. Friedman was awarded a Nobel Prize in 1976 ___________ Milton Friedman – Biography From Milton […]
MILTON FRIEDMAN: THE MIND BEHIND THE REPUBLICAN TAX REVOLT Jack Roberts | Jul 22, 2011 | 0 comments The on-going debate over raising the debt ceiling has focused on many areas of disagreement between Democrats and Republicans but none bigger than the Republican determination not to raise taxes. Many pundits credit this to the […]
Milton Friedman videos and transcripts Part 10 On my blog http://www.thedailyhatch.org I have an extensive list of posts that have both videos and transcripts of MiltonFriedman’s interviews and speeches. Here below is just small list of those and more can be accessed by clicking on “Milton Friedman” on the side of this page or searching […]
Milton Friedman – Power of Choice (Biography) Part 3 Published on May 21, 2012 by BasicEconomics Tribute to Milton Friedman English Pages, 8. 9. 2008 Dear colleagues, dear friends, (1) It is a great honor for me to be asked to say a few words to this distinguished and very knowledgeable audience about one of our greatest […]
Milton Friedman on the American Economy (6 of 6) Uploaded by donotswallow on Aug 9, 2009 THE OPEN MIND Host: Richard D. Heffner Guest: Milton Friedman Title: A Nobel Laureate on the American Economy VTR: 5/31/77 _____________________________________ Below is a transcipt from a portion of an interview that Milton Friedman gave on 5-31-77: Friedman: […]
Milton Friedman videos and transcripts Part 9 On my blog http://www.thedailyhatch.org I have an extensive list of posts that have both videos and transcripts of MiltonFriedman’s interviews and speeches. Here below is just small list of those and more can be accessed by clicking on “Milton Friedman” on the side of this page or searching […]
Below is a discussion from Milton Friedman on Bill Clinton and Ronald Reagan. February 10, 1999 | Recorded on February 10, 1999 audio, video, and blogs » uncommon knowledge PRESIDENTIAL REPORT CARD: Milton Friedman on the State of the Union with guest Milton Friedman Milton Friedman, Senior Research Fellow, Hoover Institution and Nobel Laureate in […]
Biography Part 2 In 1977, when I reached the age of 65, I retired from teaching at the University of Chicago. At the invitation of Glenn Campbell, Director of the Hoover Institution at Stanford University, I shifted my scholarly work to Hoover where I remain a Senior Research Fellow. We moved to San Francisco, purchasing […]
Milton Friedman was a great economist and a great american. A Tribute to Milton Friedman by Mark Skousen on November 28, 2006 Mark Skousen and Milton Friedman at lunch I was at the New Orleans Investment Conference when I learned that free-market economist extraordinaire Milton Friedman, died on November 16. He was a dear friend. […]
Mississippi coach Hugh Freeze speaks to the media at the Southeastern Conference NCAA college football media days in Hoover, Ala. on Thursday, July 19, 2012. (AP Photo/Butch Dill)
__________
The SEC West will finish 1. Arkansas, 2. LSU, 3. Alabama this year.
Key Returnees: RB Spencer Ware, RB Michael Ford, RB Kenny Hilliard, WR Russell Shepard, WR Odell Beckham, LT Chris Faulk, C P.J. Lonergan, RT Alex Hurst, DE Sam Montgomery, DE Barkevious Mingo, DT Bennie Logan, LB Kevin Minter, CB Tyrann Mathieu, CB Tharold Simon, S Eric Reid, K Drew Alleman, P Brad Wing
Key Losses: QB Jordan Jefferson, QB Jarrett Lee, WR Rueben Randle, LG Will Blackwell, DT Michael Brockers, LB Stefoin Francois, LB Ryan Baker, CB Morris Claiborne, SS Brandon Taylor
A great regular season in Baton Rouge was overshadowed by an awful performance in the national title game against Alabama. The Tigers navigated a difficult regular season slate unbeaten, but that won’t wash away the disappointment from the 21-0 loss to the Crimson Tide in New Orleans. Although the loss still stings at LSU, the Tigers have to be ecstatic about what’s returning in 2012.
Quarterback play was a huge issue in the national title game and will enter 2012 as a question mark. Jordan Jefferson and Jarrett Lee depart, leaving Zach Mettenberger as the team’s No. 1 option entering spring practice. Mettenberger saw limited action in 2011, completing 8 of 11 passes for 92 yards and one touchdown. Not helping Mettenberger’s cause was the departure of receiver Rueben Randle. With uncertainty surrounding Mettenberger, expect the Tigers to lean heavily on the rushing attack once again. Michael Ford, Spencer Ware, Alfred Blue and Kenny Hilliard combined for 2,338 yards and 30 scores in 2011 and will be helped by the return of four starters on the offensive line. LSU should have one of the top rushing attacks in college football, but Mettenberger’s development will be crucial to winning a national title.
Despite the loss of a few starters, LSU isn’t going to suffer much of a drop-off on defense. The defensive line should be among the best in college football, especially with ends Sam Montgomery and Barkevious Mingo returning after registering 17 sacks in 2011. Tackle Bennie Logan also returns after picking up 57 tackles last season. Two starters depart in the linebacking corps, but the backups have experience. Morris Claiborne was one of the top cover corners in the nation and may be missed more than some believe. However, the cupboard isn’t bare in the secondary, as Tyrann Mathieu, Eric Reid and Tharold Simon return in 2012.
2. Alabama
Key Returnees: QB AJ McCarron, RB Eddie Lacy, WR Kenny Bell, OL Barrett Jones, OG Chance Warmack, RT D.J. Fluker, DE Damion Square, DE Quinton Dial, DE Jesse Williams, LB Trey DePriest, LB Nico Johnson, LB C.J. Mosley, CB Dee Milliner, S Robert Lester, S Vinnie Sunseri
Key Losses: RB Trent Richardson, WR Marquis Maze, WR Darius Hanks, TE Brad Smelley, C William Vlachos, RG Alfred McCullough, OG Anthony Steen, LB Dont’a Hightower, LB Courtney Upshaw, NG Josh Chapman, CB Dre Kirkpatrick, CB DeQuan Menzie, S Mark Barron
The Crimson Tide will be replacing a plethora of key players, but is there really any doubt this team will be back in the mix for the SEC and national title?
Quarterback AJ McCarron was a key factor in Alabama’s national title win over LSU and he will be the focal point of the offense in 2012. McCarron threw only five picks and completed 66.8 percent of his throws in 2011. The junior will have to adapt to a new offensive coordinator (Doug Nussmeier) next year with Jim McElwain’s departure to Colorado State. With receivers Marquis Maze and Darius Hanks out of eligibility, the Crimson Tide needs Kenny Bell, DeAndrew White and Kevin Norwood to become the go-to weapons for McCarron, especially while a talented freshman class learns the ropes. Replacing Trent Richardson’s production at running back likely won’t come down to one player. Look for Eddie Lacy, Dee Hart and Jalston Fowler to share the initial workload in the backfield, while incoming freshman T.J. Yeldon will have an opportunity to work his way into the mix. The offensive line has to replace stalwart center William Vlachos, but Barrett Jones, D.J. Fluker and Anthony Steen are back.
After finishing first nationally in rush, total, scoring and pass defense, it’s nearly impossible to expect a repeat of those numbers in 2012 – especially with the loss of several key contributors. Coach Nick Saban and coordinator Kirby Smart will have their work cut out for them this offseason, as the defense loses linebackers Dont’a Hightower and Courtney Upshaw, while Dre Kirkpatrick, Mark Barron and DeQuan Menzie all depart from the secondary. Jesse Williams and Damion Square return on the line, but the Crimson Tide needs to find a new nose guard with Josh Chapman and Nick Gentry departing. There’s no shortage of young talent, but it may take five or six games for the right pieces to fall into place for this defense.
3. Arkansas
Key Returnees: QB Tyler Wilson, RB Knile Davis, WR Cobi Hamilton, TE Chris Gragg, OG Alvin Bailey, C Travis Swanson, DE Tenarius Wright, DT Byran Jones, LB Alonzo Highsmith, CB Tevin Mitchell, CB Isaac Madison, S Eric Bennett
Key Losses: WR Joe Adams, WR Jarius Wright, OG Grant Cook, OT Grant Freeman, DE Jake Bequette, LB Jerry Franklin, LB Jerico Nelson, CB Isaac Madison, S Tramain Thomas
The Razorbacks are coming off back-to-back double-digit win seasons for the first time since 1988-1989. Now that Arkansas seems to have closed the gap on LSU and Alabama, can it win the SEC West in 2012?
There’s a mixture of good and bad news for the Razorbacks’ offense next year. Running back Knile Davis is back after missing all of 2011 due to a leg injury, which should provide a spark for the rushing attack. However, Arkansas must replace three receivers, including playmakers Jarius Wright and Joe Adams. Quarterback Tyler Wilson turned down an opportunity to enter the NFL Draft and he should contend for first or second team All-SEC honors next year. The offensive line struggled at times during the 2011 season but figures to be improved in 2012.
If the Razorbacks want to close the gap and play for the SEC Championship next season, the defense has to continue to improve. New coordinator Paul Haynes did a good job containing Kansas State in the Cotton Bowl, but he will lose some of the unit’s key performers. End Jake Bequette, linebacker Jerry Franklin and safety Tramain Thomas will be missed and won’t make Haynes’ job any easier next year. Arkansas still trails LSU and Alabama in defensive strength, but it will be interesting to see how Haynes fares with a full year on the job.
4. Auburn
Key Returnees: RB Onterio McCalebb, WR Emory Blake, TE Philip Lutzenkirchen, C Reese Dismukes, DE Corey Lemonier, DE Nosa Eguae, LB Daren Bates, LB Jake Holland, CB Chris Davis, CB T’Sharvan Bell, S Demetruce McNeal, S Erique Florence
Key Losses: RB Michael Dyer, RT Brandon Mosley, LB Eltoro Freeman, S Neiko Thorpe
One year after winning the national title, the Tigers slipped back to the pack, finishing with an 8-5 record and a victory in the Chick-fil-A Bowl against Virginia. After losing so many key players from the 2010 team, there was no doubt Auburn was due to for a fall. The Tigers will enter 2012 with new coordinators on both sides of the ball and a roster that is still one of the youngest in the conference.
Gus Malzahn’s up-tempo offense (and Cam Newton) was a big reason why Auburn claimed the 2010 national championship. However, Malzahn departed to be the head coach at Arkansas State, which certainly raises the question of whether or not the Tigers will continue with a similar offensive scheme in 2012. Regardless of scheme, settling the quarterback position is going to be crucial to Auburn’s success in 2012. Clint Moseley, Kiehl Frazier and incoming freshman Zeke Pike will compete for the job in spring practice. With the quarterback position in flux, the Tigers will lean heavily on the rushing attack in 2012. Michael Dyer also departed for Arkansas State, leaving Onterio McCalebb, Florida transfer Mike Blakely and Tre Mason to battle for carries. The offensive line loses tackles A.J. Greene and Brandon Mosley, but center Reese Dismukes is coming off a solid freshman campaign.
Youth and inexperience played a huge role in Auburn’s defensive struggles last season, but this group never really seemed to show much progress throughout the year. The Tigers ranked near the bottom of the SEC in rush, pass, total and scoring defense last season. Coach Gene Chizik made a good move when he decided to hire Brian Van Gorder from the Falcons to coordinate the defense. Van Gorder has some nice talent to work with on the defensive line, as Corey Lemonier, Jeffrey Whitaker, Gabe Wright and Nosa Eguae are all returning. The secondary has been a source of criticism over the last two years, but could benefit from a better pass rush.
5. Texas A&M
Key Returnees: RB Christine Michael, WR Ryan Swope, LT Luke Joeckel, C Patrick Lewis, RT Jake Matthews, DE Spencer Nealy, DT Eddie Brown, LB Jonathan Stewart, LB Sean Porter, LB Steven Jenkins, LB Damontre Moore
Key Losses: QB Ryan Tannehill, RB Cyrus Gray, WR Jeff Fuller, DE Tony Jerod-Eddie, CB Coryell Judie, CB Terrence Frederick, S Trent Hunter, K Randy Bullock
2012 represents a new era for Texas A&M athletics. The Aggies decided to leave the Big 12 for the SEC, joining the nation’s toughest conference for college football. While this is a big challenge, Texas A&M has the resources necessary to eventually compete in the SEC West. Could this move help the Aggies on the recruiting trail versus Texas? Only time will tell, but for 2012, Texas A&M has a lot of work to do in order to reach the postseason.
Along with the move to the SEC, the hire of coach Kevin Sumlin has built some positive momentum in College Station. Sumlin’s spread offenses at Houston were among the best in the nation, but the going will certainly be tougher in the SEC. Quarterback is a huge question mark entering spring practice, as Matt Joeckel, Matt Davis, Johnny Manziel and Jameill Showers will compete to replace Ryan Tannehill. With a young quarterback taking over, look for the Aggies to lean on the rushing attack and offensive line. Running back Christine Michael returns after missing the final four games due to a torn ACL. Michael will anchor the backfield, but Ben Malena will be a nice change of pace option. Whichever quarterback wins the job will have a solid group of receivers to throw to, including All-SEC candidate Ryan Swope.
It will be interesting to see how Texas A&M’s defense transitions to a 4-3 under coordinator Mark Snyder in 2012. After running the 3-4 under Tim DeRuyter, the switch may take a year or two to get the right bodies in place. Losing end Tony Jerod-Eddie is a tough blow for the line, but Spencer Nealy and Eddie Brown Jr. earned honorable mention All-Big 12 honors last season. The coaching staff needs to decide if Damontre Moore fits at end or linebacker, especially after he recorded 8.5 sacks in 2011. The linebacking corps should be a strength, as Jonathan Stewart, Sean Porter and Steven Jenkins return. The secondary was a weakness in 2011 and will be losing cornerbacks Terrence Frederick and Coryell Judie and safety Trent Hunter. Even though the SEC has struggled to get great quarterback play across the board, the secondary is going to be under fire early and often in 2012.
6. Mississippi State
Key Returnees: QB Tyler Russell, RB LaDarius Perkins, WR Chad Bumphis, LG Gabe Jackson, DE Kaleb Eulls, DT Josh Boyd, LB Cameron Lawrence, LB Deonte Skinner, CB Johnthan Banks, CB Corey Broomfield, S Nickoe Whitley
Key Losses: QB Chris Relf, RB Vick Ballard, LT James Carmon, RG Quentin Saulsberry, RT Addison Lawrence, DE Sean Ferguson, DT Fletcher Cox, LB Brandon Wilson, SS Charles Mitchell, FS Wade Bonner
The Bulldogs have emerged as a solid bowl team under coach Dan Mullen, but can the program take it to the next level? Mississippi State has yet to beat any SEC West team outside of Ole Miss under Mullen’s watch, which is something that has to change if the Bulldogs want to contend for a spot among the top three in the division.
While Mississippi State has made progress under Mullen, the going won’t get any easier in 2012. With Texas A&M joining the SEC West, the Bulldogs have another difficult obstacle to get bowl eligible. And there are a lot of question marks for this team going into spring practice. Quarterback play was an issue in 2011, with Chris Relf and Tyler Russell both getting significant snaps. Relf has expired his eligibility, leaving Russell as the team’s No. 1 quarterback. Running back Vick Ballard must be replaced, but LaDarius Perkins has averaged 5.3 yards per carry during his career and should be a solid replacement. Additionally, three starters must be replaced on the offensive line.
The Bulldogs allowed only 20 points a game last season, but ranked seventh in the SEC in rush defense, allowing 153.5 yards per game. The defense was dealt a blow when tackle Fletcher Cox decided to leave for the NFL, but fellow tackle Josh Boyd is back for his senior year. The Bulldogs caught a break when cornerback Johnthan Banks decided to return for his senior year, but the secondary must replace safety Charles Mitchell. This unit shouldn’t suffer too much of a drop-off, but could struggle to stop the run without one of its key defenders on the interior of the line.
7. Ole Miss
Key Returnees: RB Jeff Scott, WR Donte Moncrief, WR Nickolas Brassell, LB Mike Marry, LB D.T. Shackelford, FS Charles Sawyer, P Tyler Campbell
Key Losses: RB Brandon Bolden, LT Bradley Sowell, RT Bobby Massie, DE Kentrell Lockett, S Damien Jackson
A disastrous 2011 season brought change to Oxford. Out is Houston Nutt as the Rebels’ coach and in is former Arkansas State head coach (and Ole Miss assistant) Hugh Freeze. The new coaching staff has a lot of work to do to get the Rebels back in a bowl game and considering the returning personnel, it may be a year or two before that happens.
Three quarterbacks received snaps in 2011, but none performed well enough to claim the job entering spring practice. Randall Mackey, Zack Stoudt and Barry Brunetti all return for 2012, but will face competition from incoming JUCO Bo Wallace. Jeff Scott is the team’s top returning rusher (529 yards), but at 5-foot-7, the Rebels don’t want to give him 250-300 carries. The receiving corps has some promising youth returning, as Donte Moncrief and Nickolas Brassell – both freshmen last year – ranked No. 1 and No. 2 on the team in catches last year. The offensive line will be a concern next year, especially with Bradley Sowell out of eligibility and Bobby Massie declaring for the draft.
As if the offensive struggles weren’t enough last year, the Rebels were one of the worst in the SEC in defense. New co-defensive coordinators Dave Wommack and Wesley McGriff have to figure out ways to generate a pass rush after the Rebels averaged only one sack a game in 2011. Linebacker D.T. Shackelford missed all of 2011 due to a knee injury and his return should add some much-needed punch to the run defense.
The private sector does such a better job than the public sector at everything. We need to seriously consider looking at every aspect of the philosophy of our government. It is my view that we can no longer have programs that give incentives to people not to work.
Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your committment as a father and a husband.
Sincerely,
Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com
thedailyhatchorg 
A great regular season in Baton Rouge was overshadowed by an awful performance in the national title game against Alabama. The Tigers navigated a difficult regular season slate unbeaten, but that won’t wash away the disappointment from the 21-0 loss to the Crimson Tide in New Orleans. Although the loss still stings at LSU, the Tigers have to be ecstatic about what’s returning in 2012.
The Crimson Tide will be replacing a plethora of key players, but is there really any doubt this team will be back in the mix for the SEC and national title?
The Razorbacks are coming off back-to-back double-digit win seasons for the first time since 1988-1989. Now that Arkansas seems to have closed the gap on LSU and Alabama, can it win the SEC West in 2012?
One year after winning the national title, the Tigers slipped back to the pack, finishing with an 8-5 record and a victory in the Chick-fil-A Bowl against Virginia. After losing so many key players from the 2010 team, there was no doubt Auburn was due to for a fall. The Tigers will enter 2012 with new coordinators on both sides of the ball and a roster that is still one of the youngest in the conference.
2012 represents a new era for Texas A&M athletics. The Aggies decided to leave the Big 12 for the SEC, joining the nation’s toughest conference for college football. While this is a big challenge, Texas A&M has the resources necessary to eventually compete in the SEC West. Could this move help the Aggies on the recruiting trail versus Texas? Only time will tell, but for 2012, Texas A&M has a lot of work to do in order to reach the postseason.
The Bulldogs have emerged as a solid bowl team under coach Dan Mullen, but can the program take it to the next level? Mississippi State has yet to beat any SEC West team outside of Ole Miss under Mullen’s watch, which is something that has to change if the Bulldogs want to contend for a spot among the top three in the division.
A disastrous 2011 season brought change to Oxford. Out is Houston Nutt as the Rebels’ coach and in is former Arkansas State head coach (and Ole Miss assistant) Hugh Freeze. The new coaching staff has a lot of work to do to get the Rebels back in a bowl game and considering the returning personnel, it may be a year or two before that happens.
The Daily Hatch 