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    Foreign Aid: Africa's 'Opium'?

    With a collective debt burden of $241 per Kenyan and a daily survival on less than $1 for the majority, there is an urgent need to rethink strategy to economic recovery. A Kenyan writer once observed: “If you find yourself in a hole, don’t dig deeper”. Every Kenyan child is born with a foreign debt estimated at $165. Is the new Kenyan government falling victim to the “opiate of the third world” by digging the hole deeper?

    Sub — Sahara Africa accounted for 36 percent of the Official Development Assistance [ODA] in 1995/96, Asia 27.9 percent, North Africa and Middle East 16.9 percent, Latin America 14 percent, Oceania 3.3 percent and South Europe 1.8 percent despite receiving the highest amount of aid Sub — Sahara Africa is the poorest and demanding more aid. Its external debt stood at an estimated $200 billion in the year 2000. Corruption analysts estimate that $10 billion in capital leaves Africa every year, which is more than the foreign aid, pumped in annually.

    “While foreign aid is a political success, it is an economic and social failure,” observes John Majewski an economist based in the United States of America. By increasing government power, destroying economic incentives, promoting unprofitable enterprises, and subsidizing misguided policies, foreign aid increases Third World Poverty. Mwalimu Majanga, a Kenyan high school teacher argues, “Foreign aid at best can be used to increase our salaries in total disregard to what in the actual sense our economy can support, when the donors withdraw, the government will be thrown into a salary crisis.”

    Recently the former finance minister Chris Okemo complained about donor agencies hidden conditionality that will make it difficult for the new government to gain access to aid money. Ugandan legislators noted that they were also “being forced into many things they were not happy with.” The Bondo Member of Parliament Dr. Oburu Odinga said that the demands of the donors were becoming a thorn in the flesh of Africans. Why then are Africans asking for more?

    With a background where the former colonial policies used to prevent African natives from developing industries it is important that Africans pursue strategies that encourage growth in local businesses, entrepreneurial spirit and a vibrant private sector to spur economic development. It is in Africa’s interest to address underdevelopment through appropriate trade, aid and investment policies.

    Africans ought to rethink the belief that foreign aid is the engine of development, in most cases aid is either targeted toward humanitarian purposes or public activities that may at times be out of phase with development priorities of a given country. Little is geared toward developing the private sector and entrepreneurial skills. Capacity building will in most cases focus on repairs and less on innovation. If Africa has to develop and compete in the present world driven by market economics then it ought to invest in entrepreneurship. It is entrepreneurs who seek out profitable opportunities, organize productive units, and compete fiercely, keep innovation high and make the country wealthy as well as enriching themselves. This cannot happen when foreign aid puts the government in business instead of the private sector.

    The debate on economic recovery for Kenya and by extension Africa ought to focus not on how much more aid should come in, rather on how economic growth can be achieved. Give the private sector a chance to be the engine of growth, simplify rules and regulations governing the establishment of small firms into medium to large sized business, put in place tax reforms to promote investments and savings, enticement for Foreign Direct Investment, privatization of state owned enterprises to enhance efficiency and help reduce the external obligations.

    It is a year since a world recognized anti — aid proponent, a Hungarian born development economist Lord Peter Bauer passed on. Described as a lone voice in the wilderness, Lord Bauer wrote books that challenged the myths that poverty is self-perpetuating. He noted: ” All developed countries began as under developed. If the notion of the vicious circle of poverty were valid, mankind would still be at the stone age at its best.” Kenya’s Daily Nation christened him as “The anti — aid hero.” He remained firm for over half a century on his arguments about the dangers of government-to-government aid until early last year when the CATO Institute honored his work through the Milton Friedman Prize for advancing liberty.

    For the developed countries, they give aid with the hope that African economies will thrive in order to provide a market for their goods. Picture a situation where a super market gives out money with the hope that the consumers will spend some of it in the same shop. It defeats logic not only for the developed nations but also for the underdeveloped to expect that a country can finance another in order to facilitate a level playing field. The super market cannot fund one to create another competing chain of stores. Addressing strategic self-interest is the key for Africa other than shying away from a liberalized economy.

    It will be prudent for government policy makers to focus on promoting intra African trade and providing an environment that can make local entrepreneurs thrive. The recent expression of a sugar cane farmer from Mumias, Ezekiel Masakhwe: “Why is it that our sugar is the only one that gets bashed with others from out, why can’t we also bash other countries’ by sending our sugar out there?” could as well point at areas policy makers should focus on — policies that lower production costs.

    Unlike in the private sector where profits drive discipline and efficiency, the African policy makers focus on government projects that are not subject to the laws of accounting and profit. Policy makers are keen to ask for more aid as they bring more activities under direct government management. Taking Opium to relieve pain and get lulled to sleep for over 40 years is not good economics. Africa seems hooked on “opium” of aid and is in urgent need of psychotherapy to move out of this sorry habit.

    ”’James S. Shikwati is the Director of the Inter Region Economic Network – Nairobi. He can be reached via email at:”’ james@irenkenya.org

    Foreign Aid: Africa’s ‘Opium’?

    With a collective debt burden of $241 per Kenyan and a daily survival on less than $1 for the majority, there is an urgent need to rethink strategy to economic recovery. A Kenyan writer once observed: “If you find yourself in a hole, don’t dig deeper”. Every Kenyan child is born with a foreign debt estimated at $165. Is the new Kenyan government falling victim to the “opiate of the third world” by digging the hole deeper?

    Sub — Sahara Africa accounted for 36 percent of the Official Development Assistance [ODA] in 1995/96, Asia 27.9 percent, North Africa and Middle East 16.9 percent, Latin America 14 percent, Oceania 3.3 percent and South Europe 1.8 percent despite receiving the highest amount of aid Sub — Sahara Africa is the poorest and demanding more aid. Its external debt stood at an estimated $200 billion in the year 2000. Corruption analysts estimate that $10 billion in capital leaves Africa every year, which is more than the foreign aid, pumped in annually.

    “While foreign aid is a political success, it is an economic and social failure,” observes John Majewski an economist based in the United States of America. By increasing government power, destroying economic incentives, promoting unprofitable enterprises, and subsidizing misguided policies, foreign aid increases Third World Poverty. Mwalimu Majanga, a Kenyan high school teacher argues, “Foreign aid at best can be used to increase our salaries in total disregard to what in the actual sense our economy can support, when the donors withdraw, the government will be thrown into a salary crisis.”

    Recently the former finance minister Chris Okemo complained about donor agencies hidden conditionality that will make it difficult for the new government to gain access to aid money. Ugandan legislators noted that they were also “being forced into many things they were not happy with.” The Bondo Member of Parliament Dr. Oburu Odinga said that the demands of the donors were becoming a thorn in the flesh of Africans. Why then are Africans asking for more?

    With a background where the former colonial policies used to prevent African natives from developing industries it is important that Africans pursue strategies that encourage growth in local businesses, entrepreneurial spirit and a vibrant private sector to spur economic development. It is in Africa’s interest to address underdevelopment through appropriate trade, aid and investment policies.

    Africans ought to rethink the belief that foreign aid is the engine of development, in most cases aid is either targeted toward humanitarian purposes or public activities that may at times be out of phase with development priorities of a given country. Little is geared toward developing the private sector and entrepreneurial skills. Capacity building will in most cases focus on repairs and less on innovation. If Africa has to develop and compete in the present world driven by market economics then it ought to invest in entrepreneurship. It is entrepreneurs who seek out profitable opportunities, organize productive units, and compete fiercely, keep innovation high and make the country wealthy as well as enriching themselves. This cannot happen when foreign aid puts the government in business instead of the private sector.

    The debate on economic recovery for Kenya and by extension Africa ought to focus not on how much more aid should come in, rather on how economic growth can be achieved. Give the private sector a chance to be the engine of growth, simplify rules and regulations governing the establishment of small firms into medium to large sized business, put in place tax reforms to promote investments and savings, enticement for Foreign Direct Investment, privatization of state owned enterprises to enhance efficiency and help reduce the external obligations.

    It is a year since a world recognized anti — aid proponent, a Hungarian born development economist Lord Peter Bauer passed on. Described as a lone voice in the wilderness, Lord Bauer wrote books that challenged the myths that poverty is self-perpetuating. He noted: ” All developed countries began as under developed. If the notion of the vicious circle of poverty were valid, mankind would still be at the stone age at its best.” Kenya’s Daily Nation christened him as “The anti — aid hero.” He remained firm for over half a century on his arguments about the dangers of government-to-government aid until early last year when the CATO Institute honored his work through the Milton Friedman Prize for advancing liberty.

    For the developed countries, they give aid with the hope that African economies will thrive in order to provide a market for their goods. Picture a situation where a super market gives out money with the hope that the consumers will spend some of it in the same shop. It defeats logic not only for the developed nations but also for the underdeveloped to expect that a country can finance another in order to facilitate a level playing field. The super market cannot fund one to create another competing chain of stores. Addressing strategic self-interest is the key for Africa other than shying away from a liberalized economy.

    It will be prudent for government policy makers to focus on promoting intra African trade and providing an environment that can make local entrepreneurs thrive. The recent expression of a sugar cane farmer from Mumias, Ezekiel Masakhwe: “Why is it that our sugar is the only one that gets bashed with others from out, why can’t we also bash other countries’ by sending our sugar out there?” could as well point at areas policy makers should focus on — policies that lower production costs.

    Unlike in the private sector where profits drive discipline and efficiency, the African policy makers focus on government projects that are not subject to the laws of accounting and profit. Policy makers are keen to ask for more aid as they bring more activities under direct government management. Taking Opium to relieve pain and get lulled to sleep for over 40 years is not good economics. Africa seems hooked on “opium” of aid and is in urgent need of psychotherapy to move out of this sorry habit.

    ”’James S. Shikwati is the Director of the Inter Region Economic Network – Nairobi. He can be reached via email at:”’ james@irenkenya.org

    Grassroot Perspective – April 16, 2003-New Hope for Free Markets in Africa's Most Populous Nation; Reports of More Icebergs are Misleading; The Folly of Protecting Teens from Work

    0

    “Dick Rowland Image”

    ”Shoots (News, Views and Quotes)”

    – New Hope for Free Markets in Africa’s Most Populous Nation

    By Lawrence Reed

    Mackinac Center for Public Policy

    With nary an exception, countries that gained their independence from
    colonial powers in the 1960s turned immediately to socialist central
    planning. The intellectual classes were nearly unanimous in their
    support for socialism, and thoughtful opposition was virtually
    nonexistent. Now the abysmal poverty and corruption those policies
    produced are animating a whole new class of activists and intellectuals
    on behalf of free market alternatives. New think tanks springing up,
    like IPPA in Nigeria and IREN in Kenya, are almost all committed to
    thrusting a stake through the heart of the socialist idea.

    CONTACT: Mackinac Center for Public Policy, 140 West Main St, PO Box 568
    Midland, MI 48640, 989/631-0900, fax 989/631-0964, email
    mailto:mcpp@mackinac.org https://www.mackinac.org.

    Above article is quoted from Heritage Foundation, The Insider 2/2003
    https://www.heritage.org

    – Reports of More Icebergs are Misleading

    By S. Fred Singer

    Published: The Heartland Institute 02/01/2003

    Contrary to opinions held by some researchers, a new analysis of more
    than 20 years of historical data has found no evidence that the
    increasing number of large icebergs off Antarctica’s coasts is a result
    of global warming trends.

    “The dramatic increase in the number of large icebergs as recorded by
    the National Ice Center database does not represent a climatic change,”
    said Brigham Young University electrical engineering professor David
    Long, who, with Cheryl Bertoia of the U.S. National Ice Center, reports
    these findings in a recent issue of EOS Transactions, a publication of
    the American Geophysical Union. “Our reanalysis suggests that the number
    of icebergs remained roughly constant from 1978 to the late 1990s.”

    “Dr. Long’s analysis shows that the increase is only an ‘apparent
    increase,’ and that it is premature to think of any connection between
    this kind of iceberg (growth) and global warming,” said Douglas
    MacAyeal, a University of Chicago glaciologist who tracks icebergs. “His
    research, particularly with his amazing ability to detect and track
    icebergs, is really the best method” for determining the actual rate of
    the creation of icebergs. Using BYU’s supercomputers, Long enhanced
    images of the waters around Antarctica transmitted by satellite.
    Comparing that data to records from the federal government’s National
    Ice Center, which tracks icebergs larger than 10 miles on one side, he
    determined previous tracking measures were inadequate, resulting in a
    gross undercounting. An additional recent spike in large icebergs can be
    explained by periodic growth and retraction of the large glaciers that
    yield icebergs every 40 to 50 years, he said, noting previous research
    done by other scientists. Long is careful to distinguish between the
    birth of large icebergs and the widely publicized collapse of the Larsen
    B ice shelf last year, which yielded many smaller icebergs. Other
    scientists have clearly shown, Long said, that event was the result of
    localized warming. Referring to his current study, Long said, “This data
    set is not evidence of global warming. Nor does it refute global
    warming.” Long and his student assistants have pioneered the use of
    images generated from the SeaWinds-on-QuikSCAT satellite for tracking
    icebergs. The NASA satellite carries a device called a scatterometer,
    which measures wind speed and direction by recording the reflection of
    radar beams as they bounce off ocean waves. Until recently, the
    resolution of the images generated by the scatterometer was too low to
    distinguish icebergs. Long’s team developed a computer processing
    technique that produces images sharp enough to reliably track icebergs.
    The BYU group has been working with the National Ice Center since 1999,
    when Long rediscovered a massive iceberg, the size of Rhode Island,
    threatening Argentine-shipping lanes. The Ice Center had lost track of
    it because of cloudy skies.

    Source: D.G. Long et al., “Is the number of icebergs really increasing?”
    Eos 83, No. 42, October 24, 2002.

    Above article is quoted from Heartland Institute, Environment & Climate
    News, February 2003 https://www.heartland.org

    ”Roots (Food for Thought)”

    – The Folly of Protecting Teens from Work

    By James Bovard, October 2002

    Protecting teenagers from work is one of the worst things you can do to
    kids. Some child-labor groups are campaigning to impose new restrictions
    on freedom of contract. While some prohibitionists might have good
    intentions, pervasive restrictions on youth labor would be a menace both
    to kids and to society.

    The Associated Press reported that 73 teens were killed on the job in
    2000. This is far fewer than were killed and wounded in the narcotics
    business. Most drug dealers do not abide by the federal regulations for
    youth labor. Insofar as the government drives kids out of legitimate
    jobs, they could end up in tasks that are far more dangerous.

    Some activists urge new restrictions on teens working in the
    food-service industry. But the accident rate of teens working in
    fast-food restaurants is probably lower than the health-injury rate of
    devoted customers of fast food.

    A recent Associated Press article, entitled “Teens working summer jobs
    may be exposing themselves to danger that parents don’t see,” lamented,
    “Federal and state laws on child workplace safety can be confusing. And
    what teenager even thinks about reading them?”

    The article quoted a 16-year-old supermarket cashier, who said he “was
    trained how to handle spills, falls, and broken items.” The Associated
    Press reporter asked the teen what he knew about federal labor laws and
    he replied, “We have signs posted all over the place, but I don’t think
    anyone reads them.”

    The article did not include any speculations about the role of
    government schools in producing semi-illiterates who cannot understand
    the official federal notices about work rules.

    What is the alternative to private employment? Federal programs, which
    wreak their own carnage.

    The government fails to keep statistics on the number of teens whose
    work ethics are fatally damaged in federal summer-job programs. The
    General Accounting Office noted as early as 1969 that some kids hired in
    the government summer programs “regressed in their conception of what
    should reasonably be required in return for wages paid.” Sen. Lawton
    Chiles (D-Fla.) complained in 1979 that “young people get such a strong
    message of cynicism and corruption that it cannot fail to carry over
    into their attitudes about work, crime, and society.”

    Washington, D.C., has one of the largest summer-job programs. I visited
    some of the Washington sites in 1989. At the Marion Barry Youth
    Leadership Institute (named after the city’s role-model mayor), young
    people “worked” by having a rowdy talk over whether “women are not
    interested in sex” and whether “men want women to be submissive.”

    The director explained to me that the teenagers were learning
    “conversational skills.” Many participants were shouting, throwing paper
    clips, and punching each other, and few were paying attention to the
    group leaders. In the afternoon, the youth were paid to work at
    basketball — a frequent occupational “skill” underwritten by big-city
    summer-job programs.

    The summer programs often reveal a genius for divorcing jobs from work.
    The New York Times reported in 1992 that Bridgeport, Connecticut, youth
    workers were assigned to the SWEAT Team; but, instead of signifying
    arduous work, the acronym referred to Students Who Entertain Artistic
    Thoughts. In the first week of their “jobs,” the “workers” went to a
    local dance, took a trip to Spike Lee’s Block Party in New York, and had
    a “brotherhood picnic.”

    Robert Woodson of the National Center for Neighborhood Enterprise
    observes, “The programs instill a false sense of work in kids and make
    it more difficult for them when they go out and try to get a real job.”
    Elijah Anderson, a University of Pennsylvania sociologist, wrote, “In
    many black communities, the [summer youth program] has … a reputation
    for being ‘a sham’ and a ‘waste of time.'”

    Federal job programs continue to be largely a “feel-good” experience —
    the opposite of many of the tasks open to entry-level workers.

    Sabotaging youth labor

    The federal government has a long history of throwing wrenches into the
    youth-employment market. While newspaper headlines proclaim “Child Labor
    Violations Widespread,” little attention is paid to the actual
    violations. In the Washington, D.C., area, one pizza shop operator was
    found guilty because he allowed 17-year-olds to deliver pizza, which the
    Labor Department considers a “hazardous job” for young people.

    The Labor Department launched a highly publicized investigation of the
    Food Lion grocery chain in 1992 for child-labor violations; Food Lion
    representatives claimed that Labor Department officials had told them
    that “90 percent of the violations relating to hazardous conditions
    involved workers under the age of 18 – putting cardboard into
    nonoperating balers.”

    On April 20, 1992, the Washington Post reported,

    “Inspectors sometimes find dozens of violations in a single community. A
    crackdown in the Ocean City-Rehobeth Beach area in August [1991] turned
    up 182 minors illegally employed in more than 30 businesses, including
    gas stations, hotels, and T-shirt and novelty shops.”

    But what is the danger in allowing teenagers to sell T-shirts in an
    ocean resort area during the summertime? Would the feds prefer the kids
    were lying out on the beach getting skin cancer?

    Child-labor laws received a black eye in 1993 when a Labor Department
    enforcer warned the Savannah Cardinals baseball team that it must fire
    Tommy McCoy, a 14-year-old bat boy, because he could not work after 7
    p.m. while school is in session or after 9 p.m. during the summer.

    The team’s fans were outraged and announced plans for a “Save Tommy’s
    Job” night. After the Labor Department was sufficiently embarrassed,
    Labor Secretary Robert Reich announced that the policy was “silly” and
    decreed that bat boys would be exempt from the federal restrictions.
    Reich announced, “It is not the intent of the law to deny young
    teenagers employment opportunities, so long as their health and
    well-being are not impaired.” Reich did not explain how federal
    enforcement of restrictions on all other industries and occupations did
    not “deny teenagers employment opportunities.”

    When I was 16, I spent the summer toiling for the Virginia State Highway
    Department. My favorite task was working with a chainsaw — an experience
    that proved invaluable for my future work as a journalist. It was much
    more inspirational than baling hay or fighting snakes in trees while
    picking peaches, as I did the prior two summers — largely because
    federal restrictions banned me from getting other work.

    The following summer, when I was 17 and working construction, I learned
    an important lesson when the foreman announced, “Red, you aren’t walking
    fast enough for $4 an hour.”

    My months with the highway department also provided valuable insights
    into the nature of government work.

    I can still recall two of the foremen jawing angrily about why the state
    government was having them build a road — instead of simply hiring a
    private company — “because the private companies do a better job, and
    cheaper, too,” one of them said.

    The job also provided a chance to work along with a prison convict gang.
    Some of the convicts were busted on drug charges, and would talk at
    length about their dubious experiences in the criminal justice system.
    One guy from Richmond admitted that he was dealing – but insisted that
    he had never met the person whose testimony at trial sent him to prison.

    Competition and labor unions

    Many of the advocates of new restrictions on teen work are labor unions
    who profit either from having kids confined to classrooms or blocked
    from competing with their members.

    The Child Labor Coalition, one of the highest-profile advocates of
    restrictions on teen labor, includes the American Federation of
    Teachers, the National Education Association, the Teamsters Union, the
    Service Employees International Union, and the United Food and
    Commercial Workers International Union.

    Ironically, federal restrictions on freedom of contract have only
    increased economic exploitation. People almost never petition Congress
    to restrict their own freedom of contract; rather, one group petitions
    politicians to restrict someone else’s freedom for its own benefit. Just
    as no man is entitled to a share of his neighbor’s income, no man is
    entitled to have his neighbor’s freedom restricted in order to boost his
    own income.

    Jobs can boost teen safety simply by keeping kids “off the street.”

    On July 16, the National Center for Victims of Crime and the National
    Council on Crime and Delinquency released a report that found that
    “teenagers are twice as likely as any other people to be shot, stabbed,
    sexually assaulted, beaten, or otherwise attacked.”

    George Tita, assistant professor of criminology at the University of
    California, Irvine, commented that teens’ crime vulnerability,

    “has more to do with who you hang out with than where you live. We know
    that if you sell drugs, are involved in drugs, are involved in gangs,
    your chances of being a victim of crime, especially violent crime, is
    much, much greater than for those who aren’t.”

    The fact that some teens have job accidents should not be invoked to
    lock all teens into a risk-free cocoon. Teens have more accidents in
    almost everything they do — from auto wrecks to broken condoms.

    Teenage years are a time of trial and error and the government cannot
    protect kids from all danger without also “protecting” them from
    personal growth. Destroying jobs is not the same as saving lives.

    James Bovard is the author of Feeling Your Pain: The Explosion and Abuse
    of Government Power in the Clinton-Gore Years (St. Martin’s Press,
    August 2000).

    Above article is quoted from the Future of Freedom Foundation
    https://www.fff.org

    ”Evergreen (Today’s Quotes)”

    “I consider trial by jury as the only anchor yet imagined by man by
    which a government can be held to the principles of its constitution.”
    — Thomas Jefferson, 1789

    “The history of humanity,” said John Ruskin, “is not the history of its
    wars, but of its households.”

    ”’Edited by Richard O. Rowland, president of Grassroot Institute of Hawaii. He can be reached at (808) 487-4959 or by email at:”’ mailto:grassroot@hawaii.rr.com ”’For more information, see its Web site at:”’ https://www.grassrootinstitute.org/

    Grassroot Perspective – April 16, 2003-New Hope for Free Markets in Africa’s Most Populous Nation; Reports of More Icebergs are Misleading; The Folly of Protecting Teens from Work

    0

    “Dick Rowland Image”

    ”Shoots (News, Views and Quotes)”

    – New Hope for Free Markets in Africa’s Most Populous Nation

    By Lawrence Reed

    Mackinac Center for Public Policy

    With nary an exception, countries that gained their independence from
    colonial powers in the 1960s turned immediately to socialist central
    planning. The intellectual classes were nearly unanimous in their
    support for socialism, and thoughtful opposition was virtually
    nonexistent. Now the abysmal poverty and corruption those policies
    produced are animating a whole new class of activists and intellectuals
    on behalf of free market alternatives. New think tanks springing up,
    like IPPA in Nigeria and IREN in Kenya, are almost all committed to
    thrusting a stake through the heart of the socialist idea.

    CONTACT: Mackinac Center for Public Policy, 140 West Main St, PO Box 568
    Midland, MI 48640, 989/631-0900, fax 989/631-0964, email
    mailto:mcpp@mackinac.org https://www.mackinac.org.

    Above article is quoted from Heritage Foundation, The Insider 2/2003
    https://www.heritage.org

    – Reports of More Icebergs are Misleading

    By S. Fred Singer

    Published: The Heartland Institute 02/01/2003

    Contrary to opinions held by some researchers, a new analysis of more
    than 20 years of historical data has found no evidence that the
    increasing number of large icebergs off Antarctica’s coasts is a result
    of global warming trends.

    “The dramatic increase in the number of large icebergs as recorded by
    the National Ice Center database does not represent a climatic change,”
    said Brigham Young University electrical engineering professor David
    Long, who, with Cheryl Bertoia of the U.S. National Ice Center, reports
    these findings in a recent issue of EOS Transactions, a publication of
    the American Geophysical Union. “Our reanalysis suggests that the number
    of icebergs remained roughly constant from 1978 to the late 1990s.”

    “Dr. Long’s analysis shows that the increase is only an ‘apparent
    increase,’ and that it is premature to think of any connection between
    this kind of iceberg (growth) and global warming,” said Douglas
    MacAyeal, a University of Chicago glaciologist who tracks icebergs. “His
    research, particularly with his amazing ability to detect and track
    icebergs, is really the best method” for determining the actual rate of
    the creation of icebergs. Using BYU’s supercomputers, Long enhanced
    images of the waters around Antarctica transmitted by satellite.
    Comparing that data to records from the federal government’s National
    Ice Center, which tracks icebergs larger than 10 miles on one side, he
    determined previous tracking measures were inadequate, resulting in a
    gross undercounting. An additional recent spike in large icebergs can be
    explained by periodic growth and retraction of the large glaciers that
    yield icebergs every 40 to 50 years, he said, noting previous research
    done by other scientists. Long is careful to distinguish between the
    birth of large icebergs and the widely publicized collapse of the Larsen
    B ice shelf last year, which yielded many smaller icebergs. Other
    scientists have clearly shown, Long said, that event was the result of
    localized warming. Referring to his current study, Long said, “This data
    set is not evidence of global warming. Nor does it refute global
    warming.” Long and his student assistants have pioneered the use of
    images generated from the SeaWinds-on-QuikSCAT satellite for tracking
    icebergs. The NASA satellite carries a device called a scatterometer,
    which measures wind speed and direction by recording the reflection of
    radar beams as they bounce off ocean waves. Until recently, the
    resolution of the images generated by the scatterometer was too low to
    distinguish icebergs. Long’s team developed a computer processing
    technique that produces images sharp enough to reliably track icebergs.
    The BYU group has been working with the National Ice Center since 1999,
    when Long rediscovered a massive iceberg, the size of Rhode Island,
    threatening Argentine-shipping lanes. The Ice Center had lost track of
    it because of cloudy skies.

    Source: D.G. Long et al., “Is the number of icebergs really increasing?”
    Eos 83, No. 42, October 24, 2002.

    Above article is quoted from Heartland Institute, Environment & Climate
    News, February 2003 https://www.heartland.org

    ”Roots (Food for Thought)”

    – The Folly of Protecting Teens from Work

    By James Bovard, October 2002

    Protecting teenagers from work is one of the worst things you can do to
    kids. Some child-labor groups are campaigning to impose new restrictions
    on freedom of contract. While some prohibitionists might have good
    intentions, pervasive restrictions on youth labor would be a menace both
    to kids and to society.

    The Associated Press reported that 73 teens were killed on the job in
    2000. This is far fewer than were killed and wounded in the narcotics
    business. Most drug dealers do not abide by the federal regulations for
    youth labor. Insofar as the government drives kids out of legitimate
    jobs, they could end up in tasks that are far more dangerous.

    Some activists urge new restrictions on teens working in the
    food-service industry. But the accident rate of teens working in
    fast-food restaurants is probably lower than the health-injury rate of
    devoted customers of fast food.

    A recent Associated Press article, entitled “Teens working summer jobs
    may be exposing themselves to danger that parents don’t see,” lamented,
    “Federal and state laws on child workplace safety can be confusing. And
    what teenager even thinks about reading them?”

    The article quoted a 16-year-old supermarket cashier, who said he “was
    trained how to handle spills, falls, and broken items.” The Associated
    Press reporter asked the teen what he knew about federal labor laws and
    he replied, “We have signs posted all over the place, but I don’t think
    anyone reads them.”

    The article did not include any speculations about the role of
    government schools in producing semi-illiterates who cannot understand
    the official federal notices about work rules.

    What is the alternative to private employment? Federal programs, which
    wreak their own carnage.

    The government fails to keep statistics on the number of teens whose
    work ethics are fatally damaged in federal summer-job programs. The
    General Accounting Office noted as early as 1969 that some kids hired in
    the government summer programs “regressed in their conception of what
    should reasonably be required in return for wages paid.” Sen. Lawton
    Chiles (D-Fla.) complained in 1979 that “young people get such a strong
    message of cynicism and corruption that it cannot fail to carry over
    into their attitudes about work, crime, and society.”

    Washington, D.C., has one of the largest summer-job programs. I visited
    some of the Washington sites in 1989. At the Marion Barry Youth
    Leadership Institute (named after the city’s role-model mayor), young
    people “worked” by having a rowdy talk over whether “women are not
    interested in sex” and whether “men want women to be submissive.”

    The director explained to me that the teenagers were learning
    “conversational skills.” Many participants were shouting, throwing paper
    clips, and punching each other, and few were paying attention to the
    group leaders. In the afternoon, the youth were paid to work at
    basketball — a frequent occupational “skill” underwritten by big-city
    summer-job programs.

    The summer programs often reveal a genius for divorcing jobs from work.
    The New York Times reported in 1992 that Bridgeport, Connecticut, youth
    workers were assigned to the SWEAT Team; but, instead of signifying
    arduous work, the acronym referred to Students Who Entertain Artistic
    Thoughts. In the first week of their “jobs,” the “workers” went to a
    local dance, took a trip to Spike Lee’s Block Party in New York, and had
    a “brotherhood picnic.”

    Robert Woodson of the National Center for Neighborhood Enterprise
    observes, “The programs instill a false sense of work in kids and make
    it more difficult for them when they go out and try to get a real job.”
    Elijah Anderson, a University of Pennsylvania sociologist, wrote, “In
    many black communities, the [summer youth program] has … a reputation
    for being ‘a sham’ and a ‘waste of time.'”

    Federal job programs continue to be largely a “feel-good” experience —
    the opposite of many of the tasks open to entry-level workers.

    Sabotaging youth labor

    The federal government has a long history of throwing wrenches into the
    youth-employment market. While newspaper headlines proclaim “Child Labor
    Violations Widespread,” little attention is paid to the actual
    violations. In the Washington, D.C., area, one pizza shop operator was
    found guilty because he allowed 17-year-olds to deliver pizza, which the
    Labor Department considers a “hazardous job” for young people.

    The Labor Department launched a highly publicized investigation of the
    Food Lion grocery chain in 1992 for child-labor violations; Food Lion
    representatives claimed that Labor Department officials had told them
    that “90 percent of the violations relating to hazardous conditions
    involved workers under the age of 18 – putting cardboard into
    nonoperating balers.”

    On April 20, 1992, the Washington Post reported,

    “Inspectors sometimes find dozens of violations in a single community. A
    crackdown in the Ocean City-Rehobeth Beach area in August [1991] turned
    up 182 minors illegally employed in more than 30 businesses, including
    gas stations, hotels, and T-shirt and novelty shops.”

    But what is the danger in allowing teenagers to sell T-shirts in an
    ocean resort area during the summertime? Would the feds prefer the kids
    were lying out on the beach getting skin cancer?

    Child-labor laws received a black eye in 1993 when a Labor Department
    enforcer warned the Savannah Cardinals baseball team that it must fire
    Tommy McCoy, a 14-year-old bat boy, because he could not work after 7
    p.m. while school is in session or after 9 p.m. during the summer.

    The team’s fans were outraged and announced plans for a “Save Tommy’s
    Job” night. After the Labor Department was sufficiently embarrassed,
    Labor Secretary Robert Reich announced that the policy was “silly” and
    decreed that bat boys would be exempt from the federal restrictions.
    Reich announced, “It is not the intent of the law to deny young
    teenagers employment opportunities, so long as their health and
    well-being are not impaired.” Reich did not explain how federal
    enforcement of restrictions on all other industries and occupations did
    not “deny teenagers employment opportunities.”

    When I was 16, I spent the summer toiling for the Virginia State Highway
    Department. My favorite task was working with a chainsaw — an experience
    that proved invaluable for my future work as a journalist. It was much
    more inspirational than baling hay or fighting snakes in trees while
    picking peaches, as I did the prior two summers — largely because
    federal restrictions banned me from getting other work.

    The following summer, when I was 17 and working construction, I learned
    an important lesson when the foreman announced, “Red, you aren’t walking
    fast enough for $4 an hour.”

    My months with the highway department also provided valuable insights
    into the nature of government work.

    I can still recall two of the foremen jawing angrily about why the state
    government was having them build a road — instead of simply hiring a
    private company — “because the private companies do a better job, and
    cheaper, too,” one of them said.

    The job also provided a chance to work along with a prison convict gang.
    Some of the convicts were busted on drug charges, and would talk at
    length about their dubious experiences in the criminal justice system.
    One guy from Richmond admitted that he was dealing – but insisted that
    he had never met the person whose testimony at trial sent him to prison.

    Competition and labor unions

    Many of the advocates of new restrictions on teen work are labor unions
    who profit either from having kids confined to classrooms or blocked
    from competing with their members.

    The Child Labor Coalition, one of the highest-profile advocates of
    restrictions on teen labor, includes the American Federation of
    Teachers, the National Education Association, the Teamsters Union, the
    Service Employees International Union, and the United Food and
    Commercial Workers International Union.

    Ironically, federal restrictions on freedom of contract have only
    increased economic exploitation. People almost never petition Congress
    to restrict their own freedom of contract; rather, one group petitions
    politicians to restrict someone else’s freedom for its own benefit. Just
    as no man is entitled to a share of his neighbor’s income, no man is
    entitled to have his neighbor’s freedom restricted in order to boost his
    own income.

    Jobs can boost teen safety simply by keeping kids “off the street.”

    On July 16, the National Center for Victims of Crime and the National
    Council on Crime and Delinquency released a report that found that
    “teenagers are twice as likely as any other people to be shot, stabbed,
    sexually assaulted, beaten, or otherwise attacked.”

    George Tita, assistant professor of criminology at the University of
    California, Irvine, commented that teens’ crime vulnerability,

    “has more to do with who you hang out with than where you live. We know
    that if you sell drugs, are involved in drugs, are involved in gangs,
    your chances of being a victim of crime, especially violent crime, is
    much, much greater than for those who aren’t.”

    The fact that some teens have job accidents should not be invoked to
    lock all teens into a risk-free cocoon. Teens have more accidents in
    almost everything they do — from auto wrecks to broken condoms.

    Teenage years are a time of trial and error and the government cannot
    protect kids from all danger without also “protecting” them from
    personal growth. Destroying jobs is not the same as saving lives.

    James Bovard is the author of Feeling Your Pain: The Explosion and Abuse
    of Government Power in the Clinton-Gore Years (St. Martin’s Press,
    August 2000).

    Above article is quoted from the Future of Freedom Foundation
    https://www.fff.org

    ”Evergreen (Today’s Quotes)”

    “I consider trial by jury as the only anchor yet imagined by man by
    which a government can be held to the principles of its constitution.”
    — Thomas Jefferson, 1789

    “The history of humanity,” said John Ruskin, “is not the history of its
    wars, but of its households.”

    ”’Edited by Richard O. Rowland, president of Grassroot Institute of Hawaii. He can be reached at (808) 487-4959 or by email at:”’ mailto:grassroot@hawaii.rr.com ”’For more information, see its Web site at:”’ https://www.grassrootinstitute.org/

    From Tolerating Ignorance to Expressing Opinions

    0

    “Suzanne Gelb Image”

    ”Patronizing – Why Are People like That?”

    Dear Dr. Gelb:

    I am petite in size, but I am also independent and resourceful. But some people are patronizing around me, and their unsolicited opinions bug me. Why are people patronizing?

    Independent

    Dear Independent:

    I believe that generally people are well-meaning and trying to be helpful when offering advice, especially in those instances when someone is sharing a problem or a need — this tends to tap into the instinct to assist another. Also, it is not uncommon for people who are uncomfortable with their ignorance (which basically means that something has not yet been learned) to inhibit them from seeking or accepting advice. This reminds me of the old saying my grandfather used to express when me and my siblings were growing up, “In deliberations, two heads are better than one head, even if one is a goat’s head.”

    ”Holding My Own – Why Do I Cave In?”

    Dear Dr. Gelb:

    Why is it that I can feel strong about my opinions, but when others disagree I struggle to stay with my opinions? I don’t give in but what I say is not as strong as it would be if I were not threatened. Why is this?

    Opinionated

    Dear Opinionated:

    Many people become opinionated because of a fear of being wrong or being proved wrong. In such instances, there is invariably no room for deliberation because a deviation from or challenge to one’s position tends to trigger the insecurity upon which the opinion is based. It is probably difficult for such individuals to listen to the opinions of others without feeling threatened, especially if those opinions differ from their own. It is not uncommon for this type of defensiveness to be borne out of the fear of feeling stupid or being wrong. A sense of shame is often experienced, but it is covered with an uprising of anger when one’s opinion is challenged. It may be useful to recall the old saying, “sticks and stones may break my bones, but others’ opinions shall never harm me.”

    ”’Suzanne J. Gelb, Ph.D., J.D. authors this daily column, Dr. Gelb Says, which answers questions about daily living and behavior issues. Dr. Gelb is a licensed psychologist in private practice in Honolulu. She holds a Ph.D. in Psychology and a Ph.D. in Human Services. Dr. Gelb is also a published author of a book on Overcoming Addictions and a book on Relationships.”’

    ”’This column is intended for entertainment use only and is not intended for the purpose of psychological diagnosis, treatment or personalized advice. For more about the column’s purpose, see”’ “An Online Intro to Dr. Gelb Says”

    ”’Email your questions to mailto:DrGelbSays@hawaiireporter.com More information on Dr. Gelb’s services and related resources available at”’ https://www.DrGelbSays.com

    Legislative Hearing Notices – April 16, 2003

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    The following hearing notices, which are subject to change, were sorted and taken from the Hawaii State Capitol Web site. Please check that site for updates and/or changes to the schedule at

    “Hawaii State Legislature Sidebar”

    Go there and click on the Hearing Date to view the Hearing Notice.

    Hearings notices for both House and Senate measures in all committees:

    Hearing

    ”Date Time Bill Number Measure Title Committee”

    4/16/03 8:00 AM None Informational Briefing HMS

    ”Date Time Bill Number Measure Title Committee”

    4/16/03 9:00 AM SCR193 URGING THE U.S. CONGRESS TO RECOGNIZE THE MERITS AND SUCCESSES OF THE HEAD START PROGRAM AND TO REJECT ANY PROPOSAL TO LIMIT THE PROGRAM’S SCOPE OR TO MOVE IT FROM THE U.S. DEPARTMENT OF HEALTH AND HUMAN SERVICES TO THE U.S. DEPARTMENT OF EDUCATION. HSH/EDN

    4/16/03 9:00 AM SCR27 SD1 REQUESTING THE HAWAII CONGRESSIONAL DELEGATION TO ASK THE UNITED STATES DEPARTMENT OF JUSTICE TO CONSIDER AND REPORT WHETHER HAWAIIAN AND ALOHA AIRLINES CAN DISCUSS FLIGHT SCHEDULING TO BETTER ACCOMMODATE TRAVELERS.”(AMENDED TITLE) TRN

    4/16/03 9:00 AM SCR40 SD1 REQUESTING THE DEPARTMENT OF TRANSPORTATION TO CONDUCT A STUDY REGARDING THE FEASIBILITY OF ESTABLISHING A PHOTO RED LIGHT ENFORCEMENT PILOT PROJECT TO ENHANCE PEDESTRIAN SAFETY. TRN

    4/16/03 9:00 AM HCR216 SUPPORTING THE MANY BENEFITS OF HAWAI`I GROWN CHOCOLATE TO OUR STATE AND DIVERSIFIED AGRICULTURE. WLA

    ”Date Time Bill Number Measure Title Committee”

    4/16/03 1:15 PM HCR62 HD1 REQUESTING THE OFFICE OF THE GOVERNOR TO DETERMINE THE IMPACT OF THE COMPACT OF FREE ASSOCIATION ON THE STATE OF HAWAII, AND REQUESTING HAWAII’S CONGRESSIONAL DELEGATION TO INTRODUCE LEGISLATION IN CONGRESS CALLING FOR FURTHER REVIEW OF THE MIGRATION ISSUE AND FOR INCREASED AID FOR THE EDUCATIONAL AND SOCIAL IMPACT OF THE COMPACT, AND ANY NEWLY RENEGOTIATED COMPACT, ON THE STATE OF HAWAII. EDU

    4/16/03 1:15 PM HCR198 HD1 SUPPORTING THE PRESERVATION OF THE HAWAIIAN LANGUAGE AND THE PERPETUATION OF ITS STUDY AND USE. EDU

    ”Date Time Bill Number Measure Title Committee”

    4/16/03 2:00 PM SB933 SD1 HD1 RELATING TO STALKING. CONFERENCE

    4/16/03 2:00 PM SB1134 SD1 HD1 RELATING TO COURT COSTS. CONFERENCE

    4/16/03 2:00 PM SB1135 SD1 HD1 RELATING TO COURT FEES. CONFERENCE

    4/16/03 2:00 PM SB1274 SD1 HD1 RELATING TO MANSLAUGHTER. CONFERENCE

    ”Date Time Bill Number Measure Title Committee”

    4/16/03 2:30 PM HCR219 HD1 SUPPORTING THE RESTORATION AND MAINTENANCE OF THE SANJU PAGODA IN NUUANU VALLEY. SAT

    ”Date Time Bill Number Measure Title Committee”

    4/16/03 2:45 PM GM287 Submitting for consideration and confirmation to the Civil Defense Advisory Council, Gubernatorial Nominee CAPTAIN GERALD L. COFFEE, for a term to expire 06-30-07. TMG

    4/16/03 2:45 PM HCR17 HD1 APPROVING AND AUTHORIZING THE ESTABLISHMENT OF STATE-PROVINCE RELATIONS OF FRIENDSHIP BETWEEN THE STATE OF HAWAII OF THE UNITED STATES OF AMERICA AND THE PROVINCE OF ILOCOS NORTE OF THE REPUBLIC OF THE PHILIPPINES. TMG

    4/16/03 2:45 PM HCR26 HD1 REQUESTING THE SPEAKER OF THE UNITED STATES HOUSE OF REPRESENTATIVES TO EDUCATE AND SENSITIZE MEMBERS OF CONGRESS ON THE UNFORTUNATE CIRCUMSTANCES OF THE INTERNMENT OF CIVILIANS DURING WORLD WAR II. TMG

    4/16/03 2:45 PM HCR51 REQUESTING THAT THE SECRETARY OF THE DEPARTMENT OF HOMELAND SECURITY ESTABLISH A PACIFIC OCEANIC ADMINISTRATIVE REGION WITHIN THE DEPARTMENT OF HOMELAND SECURITY TO BE HEADQUARTERED IN HONOLULU. TMG

    4/16/03 2:45 PM HCR54 URGING THE STATE AND COUNTIES TO SUPPORT THE DEVELOPMENT AND ESTABLISHMENT OF AN OFFICIALLY RECOGNIZED URBAN SEARCH AND RESCUE TEAM IN HAWAII. TMG

    4/16/03 2:45 PM HCR63 HD1 REQUESTING THE OAHU METROPOLITAN PLANNING ORGANIZATION TO CONSIDER THE WAIANAE SECOND ACCESS ROAD PROJECT IN ITS REGIONAL TRANSPORTATION PLAN OF 2004 AND TO IDENTIFY IMMEDIATE SOURCES OF FUNDING FOR THE PROJECT. TMG

    4/16/03 2:45 PM HCR76 URGING THE UNITED STATES CONGRESS TO SUPPORT THE PASSAGE OF H.R. 664, RELATING TO IMPROVING BENEFITS FOR FILIPINO VETERANS OF WORLD WAR II. TMG

    4/16/03 2:45 PM HCR77 URGING THE UNITED STATES CONGRESS TO SUPPORT THE PASSAGE OF S. 68, RELATING TO IMPROVING BENEFITS FOR FILIPINO VETERANS OF WORLD WAR II. TMG

    4/16/03 2:45 PM HCR188 REQUESTING THE DEPARTMENT OF TRANSPORTATION TO STUDY THE FEASIBILITY OF ESTABLISHING FLYER STOPS WITHIN THE RIGHT-OF-WAY OF OAHU’S H-2 FREEWAY AND CONNECTING TO PARK-AND-RIDE FACILITIES. TMG

    4/16/03 2:45 PM HCR197 HD1 REQUESTING THE CITY AND COUNTY OF HONOLULU TO DETERMINE THE FEASIBILITY OF CONSTRUCTING A MULTI-USE PATH ALONG THE WAIANAE COAST FROM MAILI BEACH PARK TO MAKAHA SURFING BEACH. TMG

    4/16/03 2:45 PM HCR226 URGING THE CITY AND COUNTY OF HONOLULU TO EXPAND ITS BRUNCH ON THE BEACH AND SUNSET ON THE BEACH PROGRAM TO ACTIVELY WELCOME AND INCLUDE THE PARTICIPATION OF MILITARY FAMILIES. TMG

    4/16/03 2:45 PM HCR228 HD1 REQUESTING THE DEPARTMENT OF EDUCATION TO IMPLEMENT PROGRAMS TO DEMONSTRATE TO THE CHILDREN OF ARMED SERVICES MEMBERS THAT THE PEOPLE OF HAWAII VALUE AND APPRECIATE THE SACRIFICES OF THE ARMED SERVICES MEMBER AND THEIR FAMILIES. TMG

    4/16/03 2:45 PM HCR230 URGING THE FEDERAL GOVERNMENT TO CONSIDER THE LIMITED RESOURCES OF HAWAII CONTRACTORS IN ITS PROCUREMENT PROCEDURES FOR GOODS, SERVICES, AND CONSTRUCTION IN HAWAII. TMG

    4/16/03 2:45 PM HCR120 REQUESTING THAT THE STATE OF HAWAII PURSUE A WIRELESS E911 INTERIM WORKING GROUP. TMG/SAT

    ”Date Time Bill Number Measure Title Committee”

    4/16/03 8:00 PM HB200 HD1 SD1 RELATING TO THE STATE BUDGET. CONFERENCE

    4/16/03 8:00 PM HB808 HD1 SD2 RELATING TO THE JUDICIARY. CONFERENCE

    ”’To reach legislators, see:”’ “Representatives at a Glance” and “Senators at a Glance”

    Case to Meet With Business Owners on Taxes, Small Business

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    U.S. Rep. Ed Case, D-Second Congressional District, will speak to around 75 small business owners and advocates this morning, April 15, beginning at 7 a.m. at a Small Business Hawaii breakfast meeting at the Pacific Club.

    He will talk about taxes and economy, an appropriate topic for a speech on April 15, the deadline for filing federal taxes.

    His remarks also come at a time when Hawaii taxpayers are facing an unprecedented tax increase of $460 million, should state Democrat legislators, many who are Case

    No. 4 In the Nation Not Good Enough-Majority of Democrats in Legislature Pushing Hawaii's Tax Burden Ranking from Fourth to Highest in the Nation; Naming Names

    0

    Democrats in the state Legislature are not satisfied Hawaii has the fourth highest overall tax burden in the nation — they want Hawaii to be number one.

    During the 2003 Legislative session, Democrats introduced and voted to support several bills, four that are still alive, which add up to the largest ever tax increase proposed in Hawaii or as much annually as $460 million or $460 per person.

    They did so, according to their own words, to help fund public education, to bring more money into the state’s general fund for health and human services programs and subsidies for the poor and unemployed, and to expand the government’s responsibility to include financing elderly long-term care.

    The tax increases, should they all become law, will take Hawaii to first in the nation in terms of overall tax burdens, from its current place of fourth, according to Kalapa.

    Those tax increase proposals, according to Lowell Kalapa, president of the Tax Foundation of Hawaii, are:

    *A bill to increase the state’s General Excise Tax by 12.5 percent, from 4 percent to 4.5 percent. This takes $180 million to $200 million from the economy and taxpayers and gives it to government to redistribute;

    *Two bills to impose a $10 per month (increasing to $25 per month) tax on every resident, property owner, investor and business owner in the state to subsidize long-term care for the elderly. This removes $100 million from the economy and taxpayers and gives it to government to redistribute;

    *A bill that will encourage counties to impose a new tax — a sales tax of 1 percent — on all transactions of goods, in exchange for funneling the counties’ share of the Transient Accommodations Tax back to the state. This takes $120 million to $160 million from taxpayers and the economy.

    Sen. Sam Slom, R-Hawaii Kai, who is president of the small business advocacy organization Small Business Hawaii, called the 2003 session “significant and unique,” because it holds the record for the most tax bills introduced and the highest increase proposed.

    He and other Republicans say Democrats seem to have every intention of making sure these tax bills become law, though Gov. Linda Lingle, a Republican in her first term in office, has expressed strong opposition to all tax increases. (That is with the except of the sales tax bill, which the governor says she supports based on her philosophy of “home rule.”)

    Sources at the state Capitol say Democrat leadership already is counting the number of votes they can count on from the 36 Democrats of 51 members in the House and 20 Democrats of 25 in the Senate to override the governor’s vetoes. Partially because they want to make the Republicans, especially the governor, look “weak” and “bad” in the 2004 election; and partially because they do believe in the socialist or communist philosophy of redistributing wealth from those who work, start businesses and create wealth, to those who don’t.

    But small business owners and other citizens opposed to the tremendous tax increase say they are outraged by the tax proposals, especially considering Hawaii already has the number one ranking for the worst business climate in the nation because of its tremendous tax and regulatory burden on businesses.

    No other state has a General Excise Tax like Hawaii’s. No other state suffers through a tax on tax, or “pyramiding,” as does Hawaii with the General Excise Tax. And no other state taxes every aspect of a person’s life from basic necessities, to healthcare, to death, to the extent Hawaii government does, say Lowell and Slom.

    Slom, who voted against all of the tax increase proposals, says the additional tax burden will have a devastating impact on small businesses, which make up 97 percent of all businesses in the state. He advocates taxes are the single most important issue facing Hawaii’s economic future.

    “If the majority party is allowed to take away an additional $400 million or more of earned income from our citizens, it further reduces our ability to be self sufficient or to make choices in other areas such as education, healthcare or transportation,” Slom says.

    Carol Pregill, president of the Retail Merchants of Hawaii, says the Hawaii retailers, the state’s largest employer with 20 percent of the workforce, are totally opposed to any tax increases.

    The obvious impact of the tax increases is consumers will pay more for tangible personal property, Pregill says, estimating the new sales tax alone will add 24 percent to goods sold in the state.

    Pregill also says the cost of doing business in Hawaii will increase, not only because it costs more to buy goods, but because retailers will be forced to find a way to catalogue their goods to include which items are taxed by the sales tax and which are not.

    “From the stand point of businesses, this is not just about raising taxes, but also about adding more cost to doing business. Retailers will have to add a separate line item on the receipt for the sales tax as it will not be included in the General Excise Tax and it will only be added to goods, but maybe not all of the products being sold in the store. Mom and pop stores that sell different products will have to separate all of these out, and smaller stores that put price stickers everything will have to manually account for these changes,” Pregill says.

    If legislators want businesses to retain employees and help the economy, the last action legislators should take is to raise taxes, especially using a “regressive tax” that hurts the poor the most because it is imposed on all consumers evenly, and not on a sliding income scale, she says.

    “These taxes are only going to increase the cost of operations and slow growth,” Pregill says.

    The question lawmakers have to ask themselves before supporting this kind of mammoth tax increase, Kalapa say, is can the Hawaii economy bear the largest tax increase ever imposed in Hawaii at this time?

    Kalapa, with the voices of hundreds of small business owners echoing behind him, says absolutely not.

    “A tax increase is not what we need to grow economic base,” Kalapa says. “This is not a robust economy

    No. 4 In the Nation Not Good Enough-Majority of Democrats in Legislature Pushing Hawaii’s Tax Burden Ranking from Fourth to Highest in the Nation; Naming Names

    0

    Democrats in the state Legislature are not satisfied Hawaii has the fourth highest overall tax burden in the nation — they want Hawaii to be number one.

    During the 2003 Legislative session, Democrats introduced and voted to support several bills, four that are still alive, which add up to the largest ever tax increase proposed in Hawaii or as much annually as $460 million or $460 per person.

    They did so, according to their own words, to help fund public education, to bring more money into the state’s general fund for health and human services programs and subsidies for the poor and unemployed, and to expand the government’s responsibility to include financing elderly long-term care.

    The tax increases, should they all become law, will take Hawaii to first in the nation in terms of overall tax burdens, from its current place of fourth, according to Kalapa.

    Those tax increase proposals, according to Lowell Kalapa, president of the Tax Foundation of Hawaii, are:

    *A bill to increase the state’s General Excise Tax by 12.5 percent, from 4 percent to 4.5 percent. This takes $180 million to $200 million from the economy and taxpayers and gives it to government to redistribute;

    *Two bills to impose a $10 per month (increasing to $25 per month) tax on every resident, property owner, investor and business owner in the state to subsidize long-term care for the elderly. This removes $100 million from the economy and taxpayers and gives it to government to redistribute;

    *A bill that will encourage counties to impose a new tax — a sales tax of 1 percent — on all transactions of goods, in exchange for funneling the counties’ share of the Transient Accommodations Tax back to the state. This takes $120 million to $160 million from taxpayers and the economy.

    Sen. Sam Slom, R-Hawaii Kai, who is president of the small business advocacy organization Small Business Hawaii, called the 2003 session “significant and unique,” because it holds the record for the most tax bills introduced and the highest increase proposed.

    He and other Republicans say Democrats seem to have every intention of making sure these tax bills become law, though Gov. Linda Lingle, a Republican in her first term in office, has expressed strong opposition to all tax increases. (That is with the except of the sales tax bill, which the governor says she supports based on her philosophy of “home rule.”)

    Sources at the state Capitol say Democrat leadership already is counting the number of votes they can count on from the 36 Democrats of 51 members in the House and 20 Democrats of 25 in the Senate to override the governor’s vetoes. Partially because they want to make the Republicans, especially the governor, look “weak” and “bad” in the 2004 election; and partially because they do believe in the socialist or communist philosophy of redistributing wealth from those who work, start businesses and create wealth, to those who don’t.

    But small business owners and other citizens opposed to the tremendous tax increase say they are outraged by the tax proposals, especially considering Hawaii already has the number one ranking for the worst business climate in the nation because of its tremendous tax and regulatory burden on businesses.

    No other state has a General Excise Tax like Hawaii’s. No other state suffers through a tax on tax, or “pyramiding,” as does Hawaii with the General Excise Tax. And no other state taxes every aspect of a person’s life from basic necessities, to healthcare, to death, to the extent Hawaii government does, say Lowell and Slom.

    Slom, who voted against all of the tax increase proposals, says the additional tax burden will have a devastating impact on small businesses, which make up 97 percent of all businesses in the state. He advocates taxes are the single most important issue facing Hawaii’s economic future.

    “If the majority party is allowed to take away an additional $400 million or more of earned income from our citizens, it further reduces our ability to be self sufficient or to make choices in other areas such as education, healthcare or transportation,” Slom says.

    Carol Pregill, president of the Retail Merchants of Hawaii, says the Hawaii retailers, the state’s largest employer with 20 percent of the workforce, are totally opposed to any tax increases.

    The obvious impact of the tax increases is consumers will pay more for tangible personal property, Pregill says, estimating the new sales tax alone will add 24 percent to goods sold in the state.

    Pregill also says the cost of doing business in Hawaii will increase, not only because it costs more to buy goods, but because retailers will be forced to find a way to catalogue their goods to include which items are taxed by the sales tax and which are not.

    “From the stand point of businesses, this is not just about raising taxes, but also about adding more cost to doing business. Retailers will have to add a separate line item on the receipt for the sales tax as it will not be included in the General Excise Tax and it will only be added to goods, but maybe not all of the products being sold in the store. Mom and pop stores that sell different products will have to separate all of these out, and smaller stores that put price stickers everything will have to manually account for these changes,” Pregill says.

    If legislators want businesses to retain employees and help the economy, the last action legislators should take is to raise taxes, especially using a “regressive tax” that hurts the poor the most because it is imposed on all consumers evenly, and not on a sliding income scale, she says.

    “These taxes are only going to increase the cost of operations and slow growth,” Pregill says.

    The question lawmakers have to ask themselves before supporting this kind of mammoth tax increase, Kalapa say, is can the Hawaii economy bear the largest tax increase ever imposed in Hawaii at this time?

    Kalapa, with the voices of hundreds of small business owners echoing behind him, says absolutely not.

    “A tax increase is not what we need to grow economic base,” Kalapa says. “This is not a robust economy

    The Business You're in Means Everything to Your Success

    0

    Doubling your customer or client base and substantially increasing your profits can really be quite easy. But I’ll be extremely frank with you. Ninety-eight percent of all small and mid-size businesses don’t come anywhere close to making as much money as they could.

    Most businesses don’t even begin to approach being as profitable as they potentially could be. And that includes businesses who consider themselves very successful. The fact is businesses who think they are successful are just scratching the surface of their true profit potential. And in most cases, they are actually succeeding in spite of themselves.

    Why is this? The answer is simple. Actually, I’ll give you a chance to figure it out for yourself. Take a few seconds, and answer the following question:

    What business are you in?

    Now here’s where the vast majority of business owners go wrong and severely limit their true profit potential.

    If you’re a CPA, you most likely said you do accounting or tax returns. If you own a chain of pizza parlors, you probably said you’re in the restaurant business. And if you sell a health product, you might have even said you’re in the business of bettering the lives of other people.

    Once again, I’m going to be brutally frank with you. If your own answer was anything close to those answers, you’re severely limiting your ability to be as successful as you’d really like to be.

    Whatever business you think you’re in, the real answer to what I just asked you is that you’re really in the marketing business.

    Because if you can’t sell whatever product or service it is you have to offer, you won’t stay in business very long. Or, if you can only sell a fraction of what you know you should be selling, your business life will be a struggle, or unfulfilling at best.

    That brings us to one final question. If your business has not reached its full profit potential, if you just keep doing what you’ve always done, where will you be five years from now? I probably don’t have to tell you that the odds are extremely high that your profits, your fulfillment and your free time will not be much different then what they are today.

    Fortunately, that doesn’t have to happen to you. Because to immediately start boosting your customer base, and to put an end to lukewarm sales once and for all — all it takes is a fresh new approach to marketing. The good news is that it’s relatively easy to do. I’ll give you an example in a moment, but first it’s important you understand. …

    Why Most Marketing Fails.

    The reason most marketing efforts fall way short of expectations is because most books and courses on marketing are geared toward big dollar “image campaigns.” While these may work for large corporations with huge budgets, they don’t work for small and mid-size businesses.

    As a small business owner you’re probably working with a limited budget – right? You can’t afford to waste precious marketing dollars developing your visibility and image. Every marketing dollar that goes out must have a measurable return to you and your business. That means more qualified prospects, more sales and more lifetime clients with each and every effort.

    A Better Way …

    Here’s one simple principle from our new TeleCourse course “Small Business, BIG Profits” that you can use to increase your leads and sales without spending one dime more on your marketing:

    Market only to the “right” people.

    If success in real estate investing can be summed up in “location-location-location,” success in marketing can be summed up in “audience-audience-audience.”

    You can have the most expensive direct mail piece, the most prominent display ad and the most eye-catching headline. But if they are being seen by the wrong audience, all your marketing dollars have just gone down the drain. Facts are that a mediocre ad presented to the proper audience will pull in far more new leads than an awesome ad presented to the wrong audience. (Just think what you could do with the right ad going to the right audience.)

    Business Strategy Tip: In an upcoming article I’ll be covering how you can make selecting the “right” audience a snap. But for now, I suggest you start thinking of your business in a new light, with marketing as your primary business. Start examining the results you’re currently getting from your marketing dollars. If your tracking data shows you are already getting pretty good results, then how could you leverage your efforts to increase your results?

    And if you’re not happy with the returns you’re getting, then it’s time to take the necessary steps to learn the secrets to high-impact, low cost marketing. There are answers out there, but they don’t lie in textbooks or in trying to mimic large corporations. Don’t wait another day. Your financial future depends on you quickly uncovering the secrets to maximum leverage marketing.

    ”’John-Paul Micek is a Business Growth Strategist with RPM Success Group, Inc. and a facilitator of the new TeleCourse “Small Business, BIG Profits” – the complete manual of low-cost, hi-impact marketing. He can be reached at:”’ mailto:JPM@RPMsuccess.com ”’or toll free at 888-334-8151. See his Web site at:”’ https://www.RPMsuccess.com