Has the TSA crossed the line?

via Montana WatchDog - view full article

The TSA has created something of a controversy with its new, more invasive search procedures, just in time for the holiday season. If a passenger decides to opt out of the new backscatter x-ray machines, they are subject to groping and prodding by TSA agents. This comes after a biochemist declared the potential hazard of being exposed to the radiation emitted by these new machines. Public reaction to the new policies has been swift and strong. An online poll from Reuters posed the question - "Are you less likely to fly because of stepped-up security procedures such as full-body scans and patdowns?"

The current results of this poll are the 96% (71,000 votes) that say

"Yes - I will make alternate travel plans to avoid intrusive security scans and patdowns"


Another alarming piece of information that may give taxpayers something to think about is the potential conflict of interest regarding of ex-head of the Department of Homeland Security, Michael Chertoff. The Washington Post reports that he has been heavily involved in lobbying to get these machine installed -

Since the attempted bombing of a U.S. airliner on Christmas Day, former Homeland Security secretary Michael Chertoff has given dozens of media interviews touting the need for the federal government to buy more full-body scanners for airports.

What he has made little mention of is that the Chertoff Group, his security consulting agency, includes a client that manufactures the machines. The relationship drew attention after Chertoff disclosed it on a CNN program Wednesday, in response to a question.

Congressman Ron Paul immediately denounced the new polices, and has plans to enact a new piece of legislation called the American Travelers Dignity Act, that would hold all federal employees and TSA agents to the same standards as average citizens. Here is a video of Dr. Paul explaining his issues with the new procedures.



Here in Montana, the new machines have not been implemented yet, and airport officials are hoping the debate settles before the machines are installed in Helena Regional Airport in the spring of 2011. Tom Binford, airport director at Billings Logan International Airport, summed the situation up nicely  (from the Montana Watchdog article)

“I cannot control the TSA,” Binford said.

I'm sure many citizens and lawmakers feel the same way.

Payday lenders forced to close in Montana

via NPR - full article

Facing overwhelming resistance from Montana voters, payday lending rates have been capped at 36%, forcing most operations in the state to close. Mr. Bernie Harrington (President, Montana Financial Service Centers Association) said

He thinks all the payday car title and consumer lenders which offer only short-term loans will end up closing, estimating anywhere from 400 to 600 jobs lost. Harrington's number is a very rough estimate. North Carolina-based Center for Responsible Lending has been advocating for interest rate caps all over the country. Vice President Uriah King says those jobs do more harm than good.

Generally Americans are inclined to let consumers enter into voluntary contractual agreements, but the horror stories of the perpetually indebted poor have turned this into an emotional debate. Lower income residents in Montana may have to make some hard decisions soon, next time they are running low on cash and need emergency car repairs. The advocates of the the caps have mentioned banks and credit cards as viable alternatives, but many people have poor credit histories and banks are wary of dealing with high risk clients. That was the driving force behind the higher interest rates, as payday loans are one of the riskiest types of loans. Montana joins several other states who have enacted legislation to ban or cap interest rates on payday loans.

Peter Thiel on Facebook, Technology, and the Higher Education Bubble

via Reason TV


"Entrepreneur and venture capitalist Peter Thiel co-founded PayPal, was an early investor in Facebook, and currently serves as president of the global macro hedge fund Clarium Capital. He recently announced the creation of the Thiel Fellowship, which will award $100,000 each to 20 people under 20 years old to "stop out" of college and create their own business ventures.


During the recent Libertopia festival in Hollywood, California, Thiel sat down with Reason.tv's Tim Cavanaugh to talk about the new film The Social Network, technology, exit rights, and the higher education bubble.


Approximately 9 minutes. Interview by Tim Cavanaugh. Camera by Adam Jensen, Zach Weissmueller."

Montana students have the lowest default rate

via Montana Policy Institute - link to full article

"With student loan default rates increasing nationally every year since 2005, Montana’s rate for the most recent year was just 1.8 percent. That compares with a national rate of 7 percent. Those numbers are from Fiscal Year 2008, the most recent year for which data are available." 

I actually just learned this piece of information during my mandatory loan counseling at Montana Tech. This is a rather impressive statistic, although it is difficult to explain exactly why this is. The article attributes this to the responsible nature of Montana youth. While this may be true, I am more apt to look at the job placement ratings. Defaulting on your student loans implies that you had a tough time finding a good paying job. This data would indicate that colleges in Montana are exceptional at preparing their graduates for the job market. This makes me a little more optimistic about my chances of finding a job when I graduate.

President Obama's tax plan not good news for Montana

via Montana Policy Institute - link to full article

If enacted this fall by Congress, the tax plan would prompt Montana to lose an average of 2,291 jobs annually from 2011 to 2020, lose $6,642 in disposable personal income and see individual income taxes increase by $1.1 billion, according to the Heritage Foundation’s Center for Data Analysis. SOURCE

Taxes. I think most people with any background in economics are aware that raising taxes during a recession is a phenomenally bad idea. The authors of this report over at the Heritage Foundation mentioned this, but member of the Democratic Party aren't listening. This administration seems to care nothing for The Laffer Curve, and doesn't want to realize that when you raise taxes on the rich, revenue will go down. I am not a huge Ronald Reagan fan, but his tax cuts in the early eighties proved this.

These data show that after the high marginal tax rates of 1981 were cut, tax payments and the share of the tax burden borne by the top 1 percent climbed sharply. For example, in 1981 the top 1 percent paid 17.6 percent of all personal income taxes, but by 1988 their share had jumped to 27.5 percent, a 10 percentage point increase. SOURCE

Lets hope that someone close to the White House figures out that hiding tax increases in the form of healthcare and other such hidden taxes will only push us deeper into the abyss. I don't think he will be getting any sane advice from his economic advisors on this matter.