Sunday, April 15, 2007

Annual Ethics & Civic Responsibility Luncheon and Awards

PRESS RELEASE

FOR IMMEDIATE RELEASE:

Free Enterprise Foundation Announces Ethics & Civic Responsibility Luncheon and Award Winners

Date and time: Monday, April 30, 2007, 12:00 noon-2:00 PM
Location: The Citadel Alumni Banquet Hall, The Citadel, The Military College of South Carolina, Hagood Avenue at Congress St, Charleston, SC 29409. Guest Speaker: The Honorable Edwin Meese, former Attorney General of the U.S

The Free Enterprise Foundation will present its second annual Awards for Ethics and Civic Responsibility during a luncheon at The Citadel’s Alumni Banquet Hall on Monday, April 30, 2007. The luncheon will feature a keynote address by The Honorable Edwin Meese III, former Attorney General of the U.S. This annual award recognizes business, philanthropic and academic leaders for their contributions to our community, which represent the ideals and goals of the highest ethical standards and civic responsibility.

The 2007 Free Enterprise Foundation Award for Ethics and Civic Responsibility will be presented to three couples from Charleston, S.C: former SC Governor and Mrs. James Edwards, Mr. and Mrs. William Hewitt, and Mr. and Mrs. Jerry Zucker. These awards are being given in recognition of their generous support to so many of our City’s institutions but particularly: The Citadel, College of Charleston and Medical University of South Carolina.

During the luncheon, Ed Meese, a member of the Free Enterprise Foundation’s board of trustees, will provide his perspective on the value of civic responsibility in our society.

Robert Freer, Jr., Founder and President of the Free Enterprise Foundation says of this Ethics and Civil Responsibility award “We created this award to recognize individuals for their commitments to civically oriented service. The noted and deserving honorees for the 2007 awards are among the top tier of individuals in Charleston today, who place service above self. The award recipients’ efforts to ensure bright futures for The Citadel, College of Charleston and MUSC reflect a commitment to philanthropic stewardship in this community that will serve as a leadership role model for decades to come. Their efforts on behalf of our community and the of State of South Carolina are greatly appreciated.”

Tickets for the 2007 Free Enterprise Foundation Awards for Ethics and Civic Responsibility luncheon are $75.00 and may be purchased via a link on the foundation’s Website, located at www.freeenterprise.tv. Sponsorship opportunities for this event are also available. The Free Enterprise Foundation is a Charleston-based not-for-profit academic business institute that inspires and promotes responsible practices in the global economy. For more information about the 2007 Award for Ethics and Civic Responsibility luncheon, sponsorship opportunities or the Free Enterprise Foundation, please contact Robert E. Freer, Jr. at (843) 953-4944 or robert.freer@citadel.edu.

For further information:
CONTACT: ROBERT E. FREER, JR, FREE ENTERPRISE FOUNDATION FOUNDER AND PRESIDENT
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Best of Times, Worst of Times

It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness, it was the epoch of belief, it was the epoch of incredulity . . .

Thus Charles Dickens begins a Tale of Two Cities, the tale of another era of upheaval and societal change. Each generation since our own revolution could say the same. Each has overcome its own unique challenges. Each has known triumph and the euphoria it brings as well as the vinegar of misery brought on by natural or manmade disaster and pestilence. Ours is no different. We have seen incredible advances in science, standard of living, and the prospects within our own lifetimes of overcoming life’s mysteries that have challenged us since the beginning of time.

As we stand on the edge of what could be a golden era in which we and all mankind could benefit, we face only our own human limitations. Man’s dual nature of good and evil continues to stand resolutely before us, unyielding as it has been for eons. This generation’s challenge is not just our relationship with hotspots like Iraq.

As indicated in my last article, we are bedeviled by a Scarlet O’Hara approach to the future. I have news for you. Tomorrow is already here. The Ship of State is much bigger than the Queen Mary. It takes a long time to turn her from her disastrous course. In our last article we looked at what needs to be done to the assault on our borders by illegal aliens that have overwhelmed our ability to absorb them into our society. This week I would like to talk about entitlements.

First a few facts; we are headed towards a permanent change in our demographics. The number of Americans 65 or older will almost double and rise from 12 percent of our population to 20 percent over the next 25 years while what is currently referred to as the “working age population” will only grow by 10 percent during the same time.

According to The Congressional Budget Office, if you assume that that the growth of health care costs does not abate, Medicare and Medicaid will grow by nearly five times as a share of the economy by 2050. They will absorb as much of our economy themselves by 2040 as our entire budget does today. Those figures are for our health care related entitlements only and don’t include social security which, while not as bleak, is pretty bad. Current predictions are that outgo will exceed income around 2017, and the system will be unable, unassisted by general tax revenues to pay full benefits in 2041.

Even under the sunniest of assumptions, government’s share of national expenditures (GNP) within the next 25 years would have to exceed 30 percent to meet its entitlement burden, thus threatening national growth and employment. Increasingly business would be working to meet the government’s obligations rather than building for its future and that of its employees.

Deficit spending won’t work. The demographic changes are permanent and thus as debt grows exponentially, it will threaten our viability as a functioning state. Even now we have seen the percentage of the national debt in the hands of the public grow to 37% and will grow to 46% under a best case assumption by The Congressional Budget Office. The real bad news is that an increasing portion of that debt is foreign owned. Japan holds over 700 billion dollars in our public paper, and China has over a trillion dollars of combined foreign and private sector debt.

We also are not saving. Our national rate of savings has steadily decreased since the early 90s and is now a negative figure and when combined with our government’s behavior, we present a picture of a nation consuming itself like there is no tomorrow.

I am sure I have missed a shocking statistic or two, but you get the point. We either have to trim the programs and the promises they reflect, descend into penury by ignoring the problem or pull together in the best tradition of Americans to work ourselves out of the mess we have created. I have never seen a problem that a committed America couldn’t solve. It is no different here. We are up to it and I encourage you to engage your national representatives about your expectation that they will work in good faith to get it done.

The Medicare and Medicaid programs are worth a column on their own, but before concluding, let me suggest a few ideas for reform of Social Security. It was never intended as anything other than a supplemental income system. Reality today is that it is much more, and for those nearing retirement it must be fixed to assure its sustainability.

For those just entering the workforce and looking at retirement 50 years away, I don’t believe that is so. They have a lifetime to plan and work. I say 50 years because it is increasingly clear those expectations that older Americans are going to take their watch and retirement at 62 or even 65 and enjoy their golden years are badly flawed.

If we readjusted our actuarial expectations for Social Security to those when the program was created, workers wouldn’t be eligible until 75. I wouldn’t propose we do that that, but how about requiring those 25 or younger in 2007 to wait until they are 72? For those 35 or less, we could add a year from age 62 for each year as a transitional strategy to ease the program into place for those who still have an almost 40 years before expected retirement.

To encourage savings early, there should be a super saver rate of five percent or even 0% for capital assets held 20 years or longer. It would most effectively be available to these individuals in partial recognition of the changes we are making in the entitlement age for Social Security benefits. We should also leave in place the shelter amounts for all existing deferred tax recognition programs and their eligible withdrawal date to encourage those who do retire at 62 to have the money useable for that or a new career.

As a final suggestion I would add that while it is fine to index the ceiling for taxation of earnings for social security benefits, I would not materially raise the cap so that it remains but one part of the younger workers’ package of retirement benefits.

Robert E. Freer, Jr.
Free Enterprise Foundation Founder and President
Charleston Mercury, April 12, 2007; p. 16

Wednesday, April 04, 2007

Generational Heritage

Here I sit on a Sunday afternoon struggling with my words for this column. I know generally what I want to say, but the words aren’t coming with their usual facility. I guess I could blame it on the “brain fatigue” that comes with completing a substantial effort.

On Friday, our all day conference, “Do Ethics Really Matter” featuring former Attorney General John D. Ashcroft and “an all star cast” of participants got to the nub of that question and surpassed even my expectations with the power of their insight. We have over 8 hours of tape that we will reduce to two or three digestible doses for you to view on our website, and if we are successful in convincing educational television to carry an hour of it, we hope that its lessons can be carried state wide.

Initially I was intending to write on our crisis in illegal immigration and what it is doing to our country. I will get to that in a few paragraphs, but having already done two columns on that over the past two years, I find it difficult to shed more wisdom on that issue than I have already. As I catalogue “likely suspects” for this column, I find a common theme for most of what challenges us daily. That theme is the possibility that we may be the first generation in America’s history to leave the country in worse shape than it was when we received responsibility for its welfare.

A year ago I wrote of having become our parent’s generation. If that is so, we are the “in charge” generation. What does that mean regarding the heritage we are going to leave to our children? With the velocity of change that challenges us daily, we don’t have too much longer to refine the stamp of our generation on our country and our world. How will we be remembered? Is it going to be as the generators of back breaking individual debt that must be funded during our children’s lives? Are we going to resolve our culture war around a set of sustainable values that we can claim as “American” or descend further into “feel-good” chaos? Can we properly preserve a perspective on our ancestors that will help our children to hold them dear for their momentous accomplishments without punishing them or us for the prevailing attitudes of their times.

Most importantly, can we pass on to our children an acceptance of our own humanity and our responsibility to lead the rest of the world toward a better tomorrow? No other nation has the mix of idealism, strength and heritage to do so. Lincoln described us as the last best hope of earth. It was true in 1865, and it is even more so today.

The destructive power today of one individual or a few deranged individuals can be on a par with an entire ravaging army of times past. The corruption of our national values can be just as devastating to our society. Without national purpose we are left unable to exert the willpower required to prevent our own destruction and that of the civilized world that looks to us for leadership. A turning away today could see the world destroyed or pitched into a new dark age.

Space doesn’t permit my laying out here all our challenges and possible solutions for what ails us. The next several years will tell the tale whether we have the intelligence, character and “fortitude”…..(there is that word from the last column again), to leave the next in-charge generation a better republic than we inherited , or whether we will be the first American generation to fail in that regard. It is totally up to us.

In the last several months, we have discussed a number of issues like energy independence and the war in Iraq, and in the weeks ahead, we will tackle others. This week let’s turn back to immigration. I have done two columns about a year apart that both cite the inscription on the base of The Statue of Liberty, "Give me your tired, your poor, your huddled masses yearning to breathe free, the wretched refuse of your teeming shore. Send these, the homeless, tempest-tost (sic) to me. I lift my lamp beside the golden door!"

In a jointly sponsored event by The Free Enterprise Foundation and The Citadel on March 8, former Attorney General John Ashcroft referred to the same inscription and particularly to the reference to “wretched refuse” that we have historically welcomed with opportunity and transformed into solid Americans through their acceptance of our unlimited opportunity and the freedom to pursue their dreams while accepting our customs, laws and the responsibilities that being an American entails. My previous columns did not dwell on that reference, but it is just as apt today as it has been in the past.

We are the descendants of that “refuse” of prior generations. We are now all proud Americans. I have some doubt that this generation of immigrants will continue that history. They can! I hope they will! But we can only succeed if together we do not allow the wave of undocumented illegals to overwhelm our ability to assimilate them. In the past we had Ellis Island to process a 40 year stream of new Americans. Now we have undocumented immigrants coming by all means of conveyance including treks across arid and dangerous lands or shark infested waters, all willing to make the ultimate sacrifice to reach our shores.

Many in our society feel the battle is already lost. “How do we cope with 12 million souls already here with more coming in an endless stream?” Others respond, “What is the harm? Don’t we need them for jobs Americans and legal aliens won’t do?” I will tell you plainly that we won’t have an America you will recognize or one that will be able to live up to its traditional responsibilities, if we don’t control our borders soon. The flood of humanity is undermining the social safety net and tearing at the fabric of our society.

Here are some figures for you that come mostly from the Los Angeles Times. My original source was dated 1997, but my research assistant tells me they are still accurate and has supplemented them with others. 40% of all workers in Los Angeles County are working for cash and not paying taxes. They are predominantly illegal immigrants without green cards. 95% of the warrants in Los Angeles for murder are for illegal aliens. Two thirds of all births in Los Angeles are to illegal alien Mexicans on Medi-Cal whose births are taxpayer supported. More than 380,000 “anchor babies” were born to illegal aliens in the United States in 2005. 97.2% of all costs incurred from those births were paid by the American taxpayer. Total tax burden on U.S. citizens in 2005 was an estimated $11,000 for each of us. 25% of all inmates in California detention centers are illegal immigrants and half of all gang members are illegal aliens from south of the border.

This data can be compared to similar data for other states along our Southwestern border. Perhaps more importantly, these immigrants are not assimilating as did prior generations. 40% of Los Angeles’ ten million population are native Spanish speakers with minimal skills in English and still think of themselves as from their homeland. It is estimated that net of taxes paid by those that do pay, the annual cost to U.S. taxpayers of our uncontrolled immigration is $70 Billion.

Congress has made a down payment on controlling our borders with its passage last year of $1.2 billion that will create an impenetrable barrier along our entire southern border. That should be completed as soon as possible. Border Patrol, other enforcement personnel and judicial resources need to be allocated to process expulsion of those who have come here illegally and are continuing to flaunt our laws by their criminal behavior.

Respect for the law is not just a problem with the illegals. Knowing full well what they are doing, in some parts of our country, there is total contempt by the businesses that continue to employ illegals, There is no more efficient solution to our problem than closing this loophole. In fact there is no solution unless we do. An effective immigration control program begins with employers’ respect for the law.

The “opportunity” is the fuel for the hordes that besiege us. Providing for an effective guest-worker program to document those who hold such jobs, could be one of the most important actions Congress can take this year to recognize a chronic regional need while restoring order and respect for the law to our immigration program. While they are at it, Congress should provide incentives for employment south of the border for maquiladoras and Mexican entrepreneurs that will help employment on both sides of the border.

President Bush who initially proposed a process to allow those here to stay may have better luck with a Democratic Congress in fashioning a bill that will make it into law. To be effective, it needs to assure effective border control first so the problem doesn’t get worse before it gets better. Perhaps those who are allowed to stay under whatever process is ultimately agreed to should also be required to have an American citizen sponsor their continued status so that we effectively separate those who are productively contributing to our society from those who are not.

Robert E. Freer, Jr.
Free Enterprise Foundation Founder and President
Charleston Mercury, March 29, 2007; p. 16