Ask Dr. Christopher "Life After Money: Labor and Economics" page 2 of 3 (Part I)

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Journey

Revelation

2008.5

Periodical

F. A wild animal devours those left behind

Meanwhile Binion’s recently closed its hotel and all 300+ rooms. The Casino remains open but up to 100 employees have been laid off. At the other end of town Hooters formerly known as the San Remo may seek protection through reorganization in bankruptcy court.

Las Vegas is retrenching and the worst may be yet to come as “Vegas is going to be disproportionately affected by the absolute crashing halt of interstate migration said Michael Hicks, director of the Center for Business and Economic Research at Ball State University. [7]

The essence of this most insightful and cutting edge article by J. Patrick Coolican of the Las Vegas Sun is homeowners residing in houses with negative equity will not leave to relocate elsewhere. Also persons with gainful employment will seek to retain their jobs at almost any costs in spite of any unpleasantness in the workplace. The thesis of the article is that mobility and the flow of people into Clark County drives the local economy and any cessation of an orderly flow into the valley may further debilitate an already fragile community.

G. The Worst is Yet to Come!

“Many American Investors may think the worst of the economic downturn is over but they are completely wrong, writes Clinton Administration Economist and NYU professor Nouriel Roubini” [8] “This is very bad news but we must face the facts, many of the lost jobs are gone forever, including construction jobs, finance jobs and manufacturing jobs.” Dr. Roubini states that when we include the underemployed and employers who ask their employees to share the pain by reducing hours, accepting furloughs, and acceding to lower wages is equivalent to another 3 million full time lost jobs in addition to the 7.5 million formally lost. [9]

H. A body at rest...

According to Sir Isaac Newton’s First Law {also known as the law of inertia} an object at rest tends to stay at rest and that an object in uniform motion tends to stay in uniform motion unless acted upon by a net external force. We appreciate that Newton’s laws are meant to be applied to linear motion of rigid bodies. [10] however….If an unemployed steel worker who earned $13h in Texas and who while working in Nevada qualified for unemployment benefits is receiving said benefits including food stamps to approximate the same wage he earned in Texas and if Dr. Roubini is correct in that: “many construction jobs are lost forever.” Then the steel worker would probably remain inert in Las Vegas and seek retraining here. Multiply this person by say twenty thousand plus dependents and the amount of unemployment benefits doled out for normal, extended and additional extensions could bankrupt the state as part of a triple whammy of declining revenues as bankruptcies, foreclosures and unemployment vault. Governor Gibbons and the Nevada State Legislature plan to revisit the budget to make additional across the board cuts and hopefully repeal archaic state laws designed to hinder not promote attracting diverse industries and talent.

Mr. Michael Tanchek testified before The Senate Commerce and Banking Committee about the virtues of NRS 611 a state law that was passed prior to the invention of the telephone. The law as administered by the Office of the Labor Commissioner and Mr. Michael Tanchek defines labor in two distinct groups: babysitting and everything else. Not a great standard for attracting the most educated among us. Why retain such a humiliating statute?

I. Harry fumbles a live grenade!

We were exposed to a rare moment when the Senate Majority Leader and Nevada Democratic Juggernaut Harry Reid was quoted in a recently released book that recounts many behind the scenes happenings during the last election cycle. Our personal favorite for morbidity is when Elizabeth Edwards allegedly ripped off her blouse in an airport parking lot and screamed at her husband John Edwards to look at her. Senator John Edwards can we come and live with you! We clean, cook and will work overtime to rehabilitate your reputation!

A rare moment indeed with Senate Majority Leader Reid when in a private conversation described his belief system an aperture if you will into his core truth and view of the world when released for public consumption. His commentary As recreated from an article from John L. Smith of the Las Vegas Review Journal states:

The veteran reporters write, "(Reid) was wowed by Obama's oratorical gifts and believed that the country was ready to embrace a black presidential candidate, especially one such as Obama -- a 'light-skinned' African American 'with no Negro dialect, unless he wanted to have one,' as he said privately." [11]

It must be most difficult for someone with the seniority, power and prestige of Harry Reid repressing some of his most intimate beliefs for the last {18} eighteen years.

His statement harkens us back to the 1850’s when during slave auctions polite Southern Gentlemen newly arrived in their horse and carriages converse with other cigar smoking landowners sip whiskey from small flasks hidden in vest pockets and describe specific persons for sale promoting them as commodities or chattel for the purposes of reproducing elite or handsome baby slaves the only parallel omission; no reference to the quality of his or her teeth. Utilizing descriptive terminology that was considered appropriate over {160} one hundred and sixty years to lavish praise on the President of the United States although innocently whispered is pathetic. For the record we emailed Senator Reid last night and requested that he resign his Senate Majority position and not seek re-election in November.

J. Prediction: Healthcare Passes, unemployment exceeds 17%.

The Health Care Bill was ill conceived from the start, required the bribing of several United States Senators within the Democratic Caucus to remain on track and will probably be ruled as unconstitutional due to the requirement that all person/citizens purchase a policy. This slow motion train wreck will sap personal savings and profits from individuals and small businesses for up to {4} years prior to conferring any benefit.

It will most likely increase the deficit, representing yet another big spending threat to our economic vitality, currency and national security. Whatever happened to save for a rainy day? The American people received the message loud and clear. Private credit demand is declining at a pace not seen since 1943 [17] as Americans pay down their credit cards and save every penny. Our big spending leaders might take notice that in this new permanent economy cash on the barrelhead will rule the day. The economy requires an additional correction and will when allowed to do so. This administration and the Federal Reserve will eventually stop intervening providing the catalyst for recovery: We must be allowed to “hit bottom” prior to attaining the first step in any successful economic recovery. Step #1: We admitted we {our leaders} are powerless over the economy…

K. Demo-cracks

For the most part the Democrats have circled the wagons around Senator Reid. It won’t be enough and it exposes them as fraudsters hoping to limp along to the finish line with just enough power to confiscate our treasured health care system in the name of equality; that was of course prior to the political Tsunami in Taxachussets also known as the Commonwealth of Massachusetts.

The democratic leadership and many rank and file members have lost their moorings. They now serve themselves deaf to promoting the best interest of the country, the poor, the indigent or their primary constituencies. They have elevated the good of the party above the good of the country and shall retain neither; it’s now about consolidating power at all costs while looting the treasury. This time it’s Chicago style politics rough, dirty and very expensive. But at the end of the day the donkey is braying for relief from the megalomania, the constant need to reinvent the wheel in dealing with our enemies and forcing our fellow Americans in New York and New Jersey to endure the idiocy of expensive civilian trials for militant dopes when other less expensive and more efficient military tribunals offer balanced protections for the defendants and us all. The requirements of the first lady to retain a professional entourage fit for a queen while some Americans reside ten to a home, and the appointments of the confirmation free Czar zone side stepping constitutional checks and balances to achieve what end? More power! But alas the people in the name of Almighty God shall prevail.

L. Exorcism is good for the soul

. The Democratic Party needs to take a stand and not excuse the lamentations of their Senate Leader Harry Reid who should be asked to resign his leadership post immediately and censured if not willing to do so. The voters of Nevada will decide his fate soon enough if he decides to continue his quest for reelection. But he must quell the fury of so many in such a short time; we think an unlikely scenario without contaminating the already dim prospects of his son, Rory Reid’s election as Governor in the process. [12]

But Harry Reid is far from alone in his views regarding “the truth”. Racial inequities exist as documented in a series of articles by Marshall Allen the Health Care reporter of the Las Vegas Sun. Mr. Allen is very careful to edge around this reality other than to say that some immigrant J1 doctors are routinely abused by their Nevada based employers. What is not stated is that they and other professionals are effectively prohibited from private agency protection due to the draconian effects of NRS 611. Almost all J1 physicians are minorities. District Judges Douglas Herndon and Ken Corey both affirmed NRS 611 in the recent past. Did they not read the statute? Did they rely on counsel to brief them as to the merits of NRS 611. Attorneys such as G. Luke Ciciliano argue vehemently for enforcement of this racially insensitive statute. Is this why Clark County Nevada is ranked in the top {5} five of “Judicial Hellholes” in the United States? [20]

Unfortunately after the series of articles authored by Mr. Allen; little of substance was implemented to deter the abusers. If a state can’t protect doctors who chose to practice medicine here then fewer will seek employment in Nevada. The article authored by J. Patrick Coolican offered diversity of the employment base as a partial long term solution to the current economic woes. Unfortunately the suffering of the citizens has not reached a critical mass, to serve as a catalyst, to promote much needed change.

M. All aboard: babysitters and everyone else!

For fee arrangement purposes all labor in Nevada is considered equal except for babysitting. For recruitment purposes a Neurosurgeon and a landscaper retain equal value to the state. We appreciate that the income potential of the Neurosurgeon greatly exceeds that of the landscaper but the fee cap of {.65/month} is less than a third of what other unregulated free markets command, which is why some doctors in Nevada are inundated with offers to relocate to other more stable and less litigious destinations. Many high end professionals of all disciplines are eventually recruited to other states that have repealed these debilitating statutes and Nevada is left holding the bag with an excess supply of unskilled, semi-skilled workforce and lingering double digit unemployment compliments of NRS 611.220