Saturday, January 25, 2014

Technology’s rapid momentum brings problems, dangers



Technology, with all its wonders, has brought us a raft of problems. At times, it seems we have more new technology than we can handle.

Its rapid introduction has brought efficiency and inefficiency, security and insecurity, and creativity and criminality.

The Internet is the genie the computer let out of the bottle, but it is not completely clear whether it is good or evil.

The revelations by Edward Snowden about the NSA’s collection of phone and Internet records continue to raise concerns, as does the NSA’s plans to develop a way of breaking through any protection to gain access to emails, messages and files.

News reports say that people are being flooded with unwanted emails and that telephone lines are being similarly inundated with unwanted calls intended to block some emergency services.

Journalists are being harassed by those receiving unfavorable coverage, who doctor online images to make it look like the reporters have been compromised. 

Using the tools of identity theft, crooks have stolen more than a million IRS tax refunds, beating the taxpayers by filing phony tax returns.  They simply create false W-2 forms.

Credit and debit card charges at Target, Neiman-Marcus and potentially many other stores, were hijacked, supposedly by a young man in Russia, exposing data about millions of people.

In the Obamacare fiasco, computer programming was not up to the task entrusted to it, placing one of the most significant new national programs in jeopardy.

In some places, the police can use electronically guided drones to watch anybody they choose without first getting a warrant. 

In Maine, the Department of Health and Human Services has knowingly overpaid care providers millions of dollars, because it cannot get its electronic accounting system to work properly.

Individuals themselves have contributed to the problems by the extensive use of social media – like Facebook, Twitter and LinkedIn – leading to personal information being widely available for criminal exploitation.

Finally, international battles, fought on computers rather than on the ground, produce serious threats.  Can Chinese hackers bring down the American electric utility grid?

The Internet was meant to be open to all, a system with no central control and no police. Little thought was given to the potential for abuse.

It has made many aspects of our lives easier, producing faster results.  That promotes commerce and conversation and brings the world into homes in even remote areas.  It is an aid to education.

Despite its problems, its advantages are so great that we cannot try to stop its momentum.  But a case can be made that its relentless advance should not continue to provide uncontrolled access to hackers or to trample the privacy rights of its users.

There are some reasonable steps that can be taken to reduce the threats of technology.  Many of them are in the hands of users themselves and do not require government action.

We should take seriously advice to use strong passwords and change them frequently.  It’s annoying but as essential as locking away your valuable property. 

In their haste to wring profit from the Internet, many companies do not pay enough attention to their own security.  In the end, both the user and the merchant or bank must get tough and be continually watchful.

Target should have made business aware of the need for great security and customers understand the value of carefully reading their credit card statements.

And we need better backup systems for conducting our business and operating the power grid, something like we had before the coming of the technological revolution.

That could mean making and retaining paper records.  It could also entail keeping mechanical systems available as backup instead of eliminating them when electronic solutions come along.

As for government, beyond the big questions created by the Snowden NSA revelations, cyber policing needs to be increasingly.  We need an electronic cop on the beat. 

In short, we need a visible police presence always on the lookout for those who would distort the technology marketplace for illegal purposes.

On the international level, it should be obvious countries will always spy on one another and that the Internet will help them.  There’s not much that can be done about that.

But all countries’ economies are vulnerable to outside hackers.  Russia and China are as easily hacked as the United States.  

Illegal use of the Internet anywhere should be a crime everywhere. That’s exactly what the world did to sharply reduce piracy on the high seas, and it’s time to treat Internet crime in the ether the same way.

Friday, January 17, 2014

Government, like weather, beyond our control



Two forces affect the lives of many people and are beyond their control.

The weather and the government.

Businesses accept the inevitability of their influence and try to work around the effects of government action as much as they adjust to changes in the weather.

Last month’s unemployment figures show the effect of weather on business.  New job creation and construction jobs were well below expectations and many people stopped looking for work, influenced by storms and bitter winter chills.

Those weather-induced impacts may cause the Federal Reserve to maintain its easy lending policies and could encourage the continuation of unemployment payments.

They could also prompt business to step up their online sales, making shopping easier in almost any weather but not creating many new jobs.

Business must adjust to the weather, because it cannot change or influence it.

“Everybody talks about the weather, but nobody does anything about it” goes the old saying. 

The more worrisome problem is the “us and them” attitude of government, which leaves both business and other people feeling as helpless and leaving them frustrated and unhappy.

Big business is often able to influence government, but most businesses must simply find a way to live with rules, paperwork and policies that seem to them burdensome, costly and pointless.

Government often treats citizens with the same indifference as the weather instead of recognizing that its purpose is to serve the people.

Items in the news recently illustrate the point.

Political staffers of New Jersey Gov. Chris Christie engineered a four-day traffic jam in that state’s Fort Lee on approaches to the George Washington Bridge as a way of punishing the city’s Democratic mayor for not supporting Republican Christie’s re-election.

The tie-ups were incredible, slowing ambulances, making school children miss their classes and causing many to be late to work.

The staff showed no concern for the people affected.  Perhaps they expected those caught in the jam would figure out the reason why and beg the mayor to support Christie. It didn’t happen.

In this case, politics took precedence over public service. And the instrument used by the governor’s staff was government, supposedly “of the people, for the people and by the people.”

The press, which can be a powerful force it is own right, smelled something wrong and finally got out the story that the blockage was caused by politics and not a phony “traffic study.”

Christie’s staff was forced to release the emails showing that they had conjured up the traffic crisis.   But their action only partially solved the problem.

If you look at the emails, you would see that large parts are blacked out, “redacted” as the lawyers call it.  Why? No reason is given, but it seems clear the reason is to protect some of those involved.

Not only is the public mistreated, but it cannot gain access to documents written and sent on the government email system for which it paid.

Before people write off New Jersey as a special case, it’s worth remembering that the arms-length treatment of citizens by government happens elsewhere.

In Maine, Gov. Paul LePage refused to release a report on Medicaid expansion, which had been requested under state law by the press and was part of a study costing taxpayers $925,000.

Though loophole-ridden, Maine’s Freedom of Access Law requires such a document to be made public on request.  LePage told Attorney General Janet Mills to “sue me” if she wanted to get the document to the public.

It looked like the politics of the situation in which the GOP governor opposes efforts to expand Medicaid coverage and the Legislature, controlled by Democrats, favors it had become more important than the interests of the people.

LePage then changed his mind and released the document, possibly as a result of getting his own legal advice. The political cost of keeping the document secret may have been higher than the repercussions from releasing it.

Washington is even worse. It has taken massive leaks of government documents for Americans to learn their phone records are being collected and kept, and the National Security Agency, which does the collecting, has lied to Congress and the courts.

Millions of documents are routinely classified as secret, often more as a way of keeping government actions shielded from public view than because of the legitimate need not to tip off America’s adversaries.

Frustrated and angry citizens form ineffective, misguided and impractical reform movements or they just don’t participate in the political system.  Like the weather, government is unaffected.

Everybody talks about the government, but nobody does anything about it.

Saturday, January 11, 2014

Without sacrifices, no budget deal or tax reform



Somebody has to give up something. Or else.

Or else there is no hope that the federal government can either cut spending or reform the unfair tax system.

Today, the law is full of spending for countless interests, while the tax code provides breaks to promote countless activities.

Anytime Congress considers a serious proposal to eliminate some of the federal spending or close some of tax loopholes, the potential losers protest loudly.  Politicians listen to the outcry and almost always back off the proposal.

The case in point these days are military pensions. 

Generally, if a person serves for 20 years or more, he or she is eligible to begin receiving pension payments upon leaving the service.

Most people who serve in the armed forces do not stay for 20 years.  Less than one-fifth become eligible for a military pension.

The new budget bill reduces the cost of living adjustment, known as the COLA, by one percent for the period from the beginning of military retirement until the person reaches 62 years of age.

When a person hits 62, the pension takes a big jump up, because the retiree then receives payments as if the full COLA had been in effect in past years. From then on, he or she gets the regular unreduced COLA.

In other words, after having served for at least 20 years, a person gets a reduced pension until reaching 62.  And the vast majority of those who serve are unaffected, because they get no pension.

Of course, that temporary COLA reduction means a veteran receives a lower lifetime amount and the federal budget spends less.  The logic is that most of these people will get another job after retiring from the military and before finally retiring from all work, so they can manage.

No sooner was the bill passed than the protests arose.  The message seemed to be that the federal budget crisis was being settled on the backs of those who had voluntarily risked their lives in Iraq and Afghanistan to protect their country.

Claims like that are political dynamite.  It takes a strong politician to explain that the cuts affect a relative few, apply only temporarily and are part of a package of sacrifices needed to meet demands to cut the size of government and spending.

Both of Maine’s U.S. senators and Rep. Mike Michaud voted for the budget bill, but say they are opposed to the military pension change.  Rep. Chellie Pingree voted against the bill.

The three supporters of the budget bill now want the military pension provision repealed. But that means there must be other cuts, undoubtedly with a new group of protesters, to keep the budget under the control that Congress says it wants.

Pingree thinks the budget savings should come from cutting benefits for the rich and large corporations benefiting from tax loopholes.  But those interests have big lobbying budgets and make campaign contributions that shield them from such changes.

And so the wheel continues to turn.

There are only two ways to control the federal budget.  One is to cut spending and be ready to withstand the political wrath of those losing some financial benefit. The other is to raise taxes.

Both involve difficult political choices.  The budget package adopted in December made some of those choices.  When faced with a widely unpopular government shutdown or the package, Congress took the easier way out – adopting the package at least temporarily.

The easiest budget cutting measure has been to take money away from the poor and those least able to bring political and financial pressure on the politicians.

That means cutting off unemployment payments for the long-term jobless and reducing or eliminating food stamps for low-income people.  In politics, that’s called throwing people under the bus.

Pingree’s position is perhaps the most honest, but probably unrealistic, because there are not enough people in Congress willing to resist the power of big money.

The point is not that the military pension cut was the right thing to do.  It’s impossible to know that unless it is placed in the context of a broad review of all government spending and tax breaks.

That means setting priorities.  How do military pensions fit with tax breaks for oil companies?  What commitments must the government keep and what can it change?

Instead of enacting last-minute legislation to prevent shutdowns and picking on the less fortunate as targets of opportunity, the president, if he has an agenda, and the Congress, if it really wants to control spending, ought to propose comprehensive budget plans.

Policy failure seen in electric power losses



Hundreds of thousands from Maine to Michigan were plunged into darkness as the result of the late December ice storm.

People shivered in the dark.  Running generators in enclosed spaces, some died or became seriously ill from breathing carbon monoxide.

With all the focus on modernizing the electric system in recent years, you might have thought that storm-caused outages, especially during the winter, would have been drastically reduced.

But, while the country has been concerned about creating competition among generators, promoting renewable sources and upgrading the transmission grid, government and regulators have paid little attention to the lines bringing power to homes and businesses.

In short, the big picture has been about improving economics and the environment and has overlooked the more basic public health and safety issues of local poles and wires.

The emphasis has been on creating competition in the electric business. Government no longer regulates who gets into the business of generating electricity. 

The only generation receiving government backing is renewable power, which is supposed to produce a better environment and less reliance on fossil fuels, especially imports from politically sensitive places like the Middle East or Venezuela.

The electric grid has to remain reliable when generators are added, so new federally mandated agencies have sweeping authority to require new transmission lines.  Nobody seems overly concerned about the billions in added costs rolled into customers’ rates.

All of this may help meet long-term goals that will make the U.S. more energy independent and, as the world’s largest power consumer, more efficient and less destructive of the environment.

But what help is there for the customer who loses electricity when lines come down under the weight of ice or tree branches?

The prevailing attitude seems to be if you choose to live where there are exposed power lines, you must accept the risk of power outages.

Not only do ice storms cause massive cuts in service, but many other storms each year leave electric customers without service for hours or days.

Very little has changed in the distribution system, the poles and wires that bring power from the grid to the customer, from the time of Thomas Edison.

Today, just as more than a century ago, most power outside of cities is delivered on uninsulated, bare wires at the top of utility poles.  If a tree falls onto a line, that frail and sometimes old wire is broken, interrupting power until a crew can reach the break and repair it.

Almost no utility now budgets enough for repairing all breaks in its lines quickly.  People, especially those near the end of the line, must wait, sometimes for several days.  The more remote you are, the later your line is repaired.

Regulatory supervision over distribution lines is a state matter.  Usually state regulators try to get utilities to keep up with their tree trimming so branches will not contact the bare lines, but they do little more.

The most frequently suggested remedy is to put the lines underground, eliminating storm-caused outages.

The most obvious problem with this solution is its cost, as much as ten times more than stringing lines from poles.

In fact, if we decided we truly want to drastically reduce storm-caused losses of power, it will inevitably cost more.   

But it is worth at least asking the question if taxpayers or ratepayers are willing to pay more or shift utility spending from transmission to local distribution systems rather than simply assuming they don’t.

In the midst of all the spending on the latest ideas to improve the industry, utilities, the states or even the federal government might allocates some money spent on high voltage wires to investigating how to improve the delivery of electricity.

While the results of such a study cannot be predicted, some ideas might be worth considering.

How about “distributed generation,” where small generators could be placed closer to relatively isolated groups of customers?  Perhaps such generators could be reserved only for emergency use.

Today some people buy their own generators, but many people cannot afford that investment. Should there be utility-owned small generators, capable of serving groups of customers on outlying roads?

What about increased use of insulated lines, perhaps supported by cable?   This so-called “tree wire” would be much less vulnerable than today’s lines.

And, in some locations, underground lines should be required to be part of a comprehensive reliability upgrade to the distribution system.

Maybe none of these is the right idea.  The right idea would certainly be to begin looking for something better than today’s storm-tossed distribution system.