Real Wealth Society

Wednesday, February 28, 2007

I’ve been thinking about breakfasts By Fred Cederholm

Column for on/after Feb 25th



I’ve been thinking about breakfasts. Actually I’ve been thinking about Illinois State Rep. Robert Pritchard, feedback, legislative updates, bait and switches, who pays what, gaming, sales taxes on services, and the “State of our State.” As the Illinois legislature convened the 95th General Assembly on January 10th, I began looking ahead to the coming legislative sessions in Springfield with trepidations at best. Will this finally be the year when our State government honestly addresses the financial crises facing the funding of pensions, education, and healthcare in this “Land of Lincoln?”


You see, yesterday morning at 7:30 AM, Bob Pritchard (Illinois State Representative 70th District) held his annual legislative update breakfast. This gathering is usually most informative and leaves those attending feeling, well, somewhat upbeat that Illinois will finally face up to the demons lurking on the horizon for the Prairie State. Government is as much about providing services to its citizenry and fostering a competitive business environment as it is about passing and enforcing legislation – all cost money and the big questions are who will pay, when will they pay, and how much will they pay?


Normally, this breakfast occurs after the Governor has tendered his budget and has delivered his “State of the State” address. Illinois is in financial disarray – having met the Illinois Constitution’s “requirement of a balanced budget” by deferring costs well into the future, robbing Peter to pay Paul by raiding designated fund “surpluses and pre-payments” for general disbursements, or even delaying the payment of current obligations altogether. Because in the last fiscal year, the Democratic majorities in the State House (and Senate) and Chief Executive Blagojevich had orchestrated the (mis-)appropriation of the remaining “surpluses” of the largest funds – road and retirement pensions, the so-called fixing of these ongoing shortfalls between revenues and promised expenditures won’t be as easy to massage into temporary oblivion. As a consequence, the Governor got an extension to deliver his annual message of smoke, lights and mirrors until March 7th. Bob was candid and honest about what lies ahead in this session, and one could only sense his frustration being in the Republican minority in Springfield.


Bob opened with comments about the importance of local government – county, township, and municipal. These are the core units in providing services to the populace. While they are the most efficient in providing those services, all are strapped for cash and frequently look to the state for help. In recent years there has been a media flurry of “sizzle” about this new state program and that new state program; but… “where’s the beef” when there is little, if any, funding provided. Later, Bob held up a soon-to-be-available booklet which summarized the grants and awards “available” to local government units – then, he wished the attendees good luck, because few if any had been actually funded.


The Illinois “budget” was pushing $28 Billion. $7.2 Billion came from sales’ taxes, $8.8 came from individual income taxes, $1.4 Billion more from gaming, and another $1.7 Billion from corporation taxes. Do the math and remember that the last of the so-called biggie “surpluses” were raided and pillaged last year. Now we as a state are looking to incur further promised obligations for the new and recently mega-hyped programs of All-kids, veterans, day-care, pre-school… none of which came with a matching plan of how to pay for them. These programs may be needed/ wanted, but how can the state deliver on these promises now (or down the road); when Illinois is already facing unfunded/ under-funded obligations for Medicaid, retirement pensions, and elementary/secondary education. The state had covered about 50% of education costs; now well over 70% of local educational funding comes from property taxes. Note how at least 3 of 4 Illinois schools districts are now facing deficits.


On the “new” revenue side of fixing the unbalanced equation, Bob shared with the group what has been put in the pipeline since January 10th and what “rabbits” are rumored to be lurking in the hat for the Governor’s March 7th speech. There are several bills introduced which propose upwards to 4 more casino licenses and an expansion of slot machine gambling to the state’s race tracks. Gaming generates a huge amount of cash for the state each year, but despite what we were told about the lottery, the lotto, the multitude of scratch-and sniff instant games, the riverboats…, what was truly solved?


We should brace ourselves for more slight of hand by coming proposals of a new “gross receipts” tax on intangible goods and services. Think of it as a sales tax on grooming, any professional services, counseling, or advice. Then too, we could sell off our highways, parks, or the Governor’s Mansion - Blagojevich doesn’t live there. I’m Fred Cederholm and I’ve been thinking. You should be thinking, too.


Copyright 2007 Questions, Inc. All rights reserved.

Sunday, February 25, 2007

I've been thinking about college By Fred Cederholm

Column for on/after Feb 18th


I've been thinking about college. Actually I've been thinking about the Electoral College, indirect elections, fairness/equality, anomalies, and the League of Women Voters. Whether we like it or not, the 2008 Presidential campaigns have begun in earnest. These will be the longest races for the oval office in our nation's history. They should prove most interesting and will set in motion commentaries and issues which go beyond election of our 44th President. Eliminating the Electoral College as the method of selecting our chief executive will once again be pushed to the forefront of debate and discussion.



You see, when our founding fathers wrote the US Constitution, they felt (for whatever reasons) that the general populace could not be trusted with the direct election of our President and our US Senators. While the term "Electoral College" does not appear in the Constitution. Article II of the Constitution and the 12th Amendment refer to "electors," but not to the "Electoral College;" the founding fathers appropriated the concept of electors from the Holy Roman Empire (962 - 1806). An elector was one of a number of princes of the various German states within the Holy Roman Empire who had a right to participate in the election of the German king. The political parties generally nominate electors at their State party conventions or by a vote of the party's central committee in each state. Each state is entitled to one elector for each Senator and Representative they send to the US Congress. Electors are often selected to recognize their service and dedication to their political party. The electors meet in mid December following the November elections in each state to cast their ballots.



The original Constitutional provision (Article 1, Section 3) mandating the appointment of US Senators by the respective state legislatures was repealed by the 17th Amendment and provided for the direct election of Senators by the people of a state. This was proposed on May 13, 1912 and was ratified on April 8, 1913 and first in effect for the election of 1914. Over the past 200 years, over 700 proposals have been introduced in Congress to reform or eliminate the Electoral College. There have been more proposals for Constitutional amendments on changing the Electoral College than on any other subject.




Political realities have now made the Electoral College an unfair anachronism. As the country has stratified into red states and blue states: only 18 states are now considered competitive. The winner take all system of the Electoral College focuses the candidates' attention, campaigning, and money on the states in play. In the 2004 Presidential election only about 1% of all electioneering money was spent in all the non-competitive states. And the candidates visited only six of those non-competitive states. Is it fair that voters in two/thirds of the 50 states are effectively ignored by the candidates for President? Under this system a candidate receiving a majority of the Electoral Votes (presently 270) seizes control of the White House for four years. If no candidate receives a majority of electoral votes, the House of Representatives elects the President from the 3 Presidential candidates who received the most electoral votes. Each state delegation has one vote. The Senate would elect the Vice President from the 2 Vice Presidential candidates with the most electoral votes. Each Senator would cast one vote for Vice President. This is not fair or equitable because it circumvents/ ignores the direct will of the electorate.



For most of our history the elector system has worked without incident - meaning that a candidate received the requisite majority of electoral votes AND received the majority of popular votes as well. There are, however, some notable and highly controversial instances where that was not the case. In the elections of 1824, 1876, 1888, and 2000, the candidate who received a plurality of the popular vote did not ultimately become president. The 1824 election was eventually decided by Congress and thus is distinct from the last three which were decided without the Congressional vote because one candidate did have the necessary Electoral Votes. Most recently in 2000, Al Gore actually received 543,895 more popular votes nationwide than George W. Bush. Since Bush carried 30 states with 271 Electoral Votes to Gores 21 states with 266 Electoral Votes, he became our 43rd President.



On Thursday, February 22, at 7:00 PM, Dan Johnson-Weinberger from FairVote will speak at First National Banks Via Room in the May Mart Plaza before the Rochelle Area chapter of the League of Women Voters. His presentation will address educating voters about the advantages of a popular vote election and a method of going popular vote WITHOUT changing the US Constitution. This forum is open to the general public and should prove to be most informative. Any interested individuals or groups are encouraged to attend. I' m Fred Cederholm and I' ve been thinking. You should be thinking, too.

Copyright 2007 Questions, Inc. All rights reserved.

To audit this column and to learn more about the subjects discussed, please check out:



US Electoral College http://www.archives.gov/federal-register/electoral-college/

Seventeenth Amendment to the United States Constitution http://en.wikipedia.org/wiki/Seventeenth_Amendment_to_the_United_States_Constitution

The FairVote Organization http://www.fairvote.org/

The National Popular Vote Website www.nationalpopularvote.com/index.php

Wednesday, February 14, 2007

I’ve been thinking about Business EXPO 2007 By Fred Cederholm

Column for on/after Feb 13th


I’ve been thinking about Business EXPO 2007. Actually I’ve been thinking about the greater Rochelle area, the Chamber of Commerce, socializing, food, the League of Women Voters, Rochelle Municipal Utilities/ Rochelle Net, and community awareness. Once again our community has the opportunity to find out first hand what is going on, what is new, and what is coming to our area in a face-to-face setting. Trust me when I tell you that there is plenty happening in our area with many more (good) things coming on the horizon.



You see, the 2007 Business EXPO begins this Friday evening from 6:00 PM to 8:30 PM at the Rochelle Middle School located at 111 School Avenue. It continues this Saturday from 9:00 AM to 1:00 PM. Almost 50 area businesses, service organizations, and not-for-profit groups will participate this year. The theme for the 2007 event is “Home, Health, and Family.” North West and North Central Illinois are major bright spots in the Illinois economy in 2007, and South East Ogle County is one of the hottest spots in the region. Henry Ford once said, “The Business of America is business.” The Real Estate mogul Arthur Rubloff said, “The three most important things are location, location, and location.” Both of these quotes are relevant to us with the greater Rochelle area clearly at the “Hub” of things.



The EXPO is sponsored by the Rochelle Chamber of Commerce and is a great place to bring your family and spend an hour or two. Parking is free, admission is free, and you will be amazed what you can find out – for free. Free is good; free is very good! Many participants will even offer “Business EXPO Specials” for the visitors to their exhibits/booths. This will be the fourth year that I’ve attended and have participated at some of the exhibit sites. I have a great time and I learn so much about the services and products available right here in our own community. I always get chance to touch base with a lot of old friends, and I make some new ones as well.



Community awareness and community dialogue benefits everyone. We are blessed with an excellent information network via the forums provided by our local newspaper and radio station as well as the coverage of local events they provide. But… there is something to be said for the added opportunity of the instantaneous face-to-face contact, and dialogue of the EXPO. Many of the people who have the answers (or can get them and get back to you) will be working at their various booths. And then… there is the food!



Several service and not-for-profit organizations will offer their culinary specialties in the Middle School’s cafeteria. Be sure to check out the Golden K’s Sloppy Joe’s and the Middle School PTO’s Pizza. Hot dogs, baked beans, bakery goods, and cookies will also be available for sale as well. Local Boy Scout troops will be collecting non-perishable food items for later distribution to the area Christian Food Pantry as part of their annual “Scouting for Food Drive.” Any contributions you can bring will be greatly appreciated. The pantry served a record number of households/ families in 2006.



The Rochelle Area Chapter of the League of Women Voters will once again be part of the Chamber of Commerce booth and will provide the opportunity to register to vote for those new to the area (or for anyone who is not currently registered for that matter). By completing your registration at this event, you can save yourself a trip to Becky Huntley’s (the County Clerk) Office in Oregon, AND you will meet the cut-off for the all important Consolidated Elections soon coming at us on April 17th.



The Rochelle Community Hospital and Ogle County-wide health care organizations will be there to provide you and your family with information about the services – new and upgraded – that are now available thru them. Representatives from Rochelle Municipal Utilities/ Rochelle Net will be there to provide you with energy saving tips and suggestions. They will also provide you with information regarding the changes/ upgrades which have occurred on the internet/ web /information highway front.



I hope you and your household will stop by and spend some time at the EXPO. I’m personally looking forward to seeing you there. I’ll be more than happy to help get you registered to vote if you need to get that done. Or… I’d LOVE to talk to you about my columns – what you liked, what you didn’t like, and what you want to hear about in the future? It’s so important to me that I’ve gotten you TH*NK*NG - one way or another. The 2007 Business Expo is about learning, it is about what is going on in our community, it is about what is coming in our community, and it is about what is available to us here locally. I’m Fred Cederholm and I’ve been thinking. You should be thinking, too.

Copyright 2007 Questions, Inc. All rights reserved.

Wednesday, February 07, 2007

I’ve been thinking about “evangineers” (part 2) By Fred Cederholm

Column for on/after Feb. 4th, 2007

I’ve been thinking about “evangineers” (part 2). Actually I’ve been thinking about Henry Ford/FORD, Ray Kroc/MCDONALDS, Sam Walton/WALMART, Bill Gates/ MICROSOFT, and changes All these men have clearly changed the world, becoming rich beyond their imaginings in the process. But the longer-term effects and impacts of their work haven't always provided a solution—and may in fact have caused more problems than they solved. Rarely, in fact, has history shown that the technocrats had true long-term solutions to anything. An “evangineer” is a blend of evangelist, "someone who tries to persuade other people to share enthusiasm for particular beliefs and ideals," and engineer. An “evangineer” could be any person who seeks to change some aspect of society and who also has the high level of knowledge/ expertise required to make that change. The important thing is that they use what they know to resolve a problem.

You see, over time the only real constant is change. If changes move slowly and cumulatively impact society as a whole over time, they are evolutionary. If changes move quickly and shake society to its very roots over a shorter period of time, they are revolutionary. “Evangineers” (it would appear) have the power to do both. Build a better mousetrap; and the world will beat a path to your door. These men had an idea/ plan, but what they set in motion over time frequently took on a life of its own – with unforeseen implications and ramifications. What could possibly go wrong, or be negative about that?

Henry Ford with his “invention” of the assembly line literally put America behind the wheel of the motor car. Over time, this revolution of the manufacturing process for a means of transportation, took the entire planet from horses to horsepower. This process soon morphed to encompass the making of anything (and everything) which was mass produced – not just in the US, but worldwide. He also did the unthinkable by paying his workers a living wage (later with full benefits) which would allow them to buy/ afford the products they made. What could possibly go wrong, or be negative about that? His evangineering made him and his family very wealthy.


Ray Kroc was a salesman of restaurant equipment. When he researched why a California customer was buying so many of one product, he got the idea for a chain of his own drive-in restaurants and the concept of “fast food” was born. After all, American families were more mobile (with their cars), they were away from home, and they needed to eat. The need for speed and volume accelerated the use of frying/grilling as the cooking means of choice. From the first installation in Des Plaines, Illinois on April 15, 1955 (first day’s revenues there were $366.12), McDonalds became a global giant with more locations worldwide than any other feeding establishment on the planet. What could possibly go wrong, or be negative about that? His evangineering made him and his family very wealthy.

Sam Walton began a career in retailing with JC Penney as a management trainee in Des Moines, Iowa in 1942. In 1945 he purchased a Ben Franklin Variety store in Newport, Arkansas. He pioneered the practice of discount merchandizing by buying wholesale goods from the lowest priced supplier. His huge success eventually cost him that franchise (and his lease); so… he opened his own Walton’s Five and Dime in Bentonville Arkansas in 1951. Success bred more success, and the first true Wal-Mart opened in Rogers, Arkansas in 1962. Walton expanded this new retailing concept - originally focusing on setting up shop in middle-sized communities with companies making products that could be sold in his growing network of stores. Sam Walton prided himself on the huge percentage of “American made” goods sold in the chain of his stores. “Always the Lowest Price” became the over-riding mantra; and the chain became the largest retailer on the planet worldwide. The “big box” store was born. Wal-Mart was re-defined by its sibling Sam’s Club. What could possibly go wrong, or be negative about that? His evangineering made him and his family very wealthy.

Bill Gates facilitated the personal computer and data manipulation revolution(s) by developing the software (binary language programs) used in running the first generation of widely used “small” (as opposed to room-sized) computers. MS DOS evolved into Windows which morphed into Windows 95 and then 98 and on to Windows XP and now into Vista. Each brought about a new generation of PC hardware. These operating systems were joined by many generation/ versions of utility programs which now run on at least 8 or every 10 personal computers worldwide. These machines - and the programs which run them - impact our lives in more ways than we can possibly imagine. What could possibly go wrong, or be negative about that? His evangineering made him and his family very wealthy.

Change is now an everyday fact of life. These four evangineers of American industries have had a huge impact on evolutionary change and revolutionary change. What could possibly go wrong, or be negative over time about that? I’m Fred Cederholm and I’ve been thinking. You should be thinking, too.


(To be continued?) Copyright 2007 Questions, Inc. All rights reserved.

Monday, February 05, 2007

There are no economic tigers by Joost van Steenis

Bangkok, February 6 2007

Dear reader, this is the 82nd Letter of an Autonomous Thinker

China, Vietnam, Thailand etceteras make economic jumps but more like fleas than like tigers.


With last years' growth of more than 10 percent the per capita Gross Domestic Product (GDP) of China (about $ 1750) jumped nearly $200.

A real jump occurred f.e. in Germany where the per capita GDP (about $ 35000) grew in 2006 with 2.5 %, nearly $ 900. That is more like a tiger.

By proceeding on the present way China will never close the gap with Germany. They need something more powerful than tigers.

By the way, many millions of very low earning Third World people make very cheap clothes. Our machines cannot compete with these low wages. But when the wages should increase - so the workers get a more decent life - our machines will again become competitive. All these poor people will lose their jobs and again they will have to live on nearly nothing, again they will die from curable diseases, hunger or sheer poverty.

Fleas do jump but they have a short life.

But something is indeed happening in the Third World.

Some people over there make big jumps and become very rich (on the back of hard-working masspeople)

These people are becoming accepted in the worlds' topelite that really becomes a globalised elite.

It is a fact that the existence of elites, that live on the safe and prosperous eliteworld, prevents that all masspeople will acquire the same status as elitepeople.

An elite must always renovate itself. Now there is a rapid change from localised elites to one globalised elite.

In the past the highest elite ruled the Third World from its bases in the West. Products and commodities from the Third World were transported to the West that grew rich. But the former colonies became politically independent and became ruled by local elites.

The highest elite decided to integrate the top of these local elites to get a better grip on the toiling masses in the Third World.

The top is changing but at the bottom the masses are still working for very low wages to make goods that are mostly transported to rich Western countries. That is illustrated by the export surplus of China.

And the masses are now directly ruled by local elites that have become part of the topelite, the contradiction between foreign colonising elites and indigenous masses has been solved.

This change has some consequences in Western countries. In the last thirty years the incomes of the rich have increased immensely (see Letter 69 -
http://members.chello.nl/jsteenis/letter69.htm ). The incomes of masspeople often decreased. In the United States f.e. parts of masses, mostly the coloured ones, begin to resemble the masses in the Third World.

Masspeople should realise that fundamental changes only occur when the power relations are changed. All actions for better living conditions in the p[resent system are futile. The elitist power can always turn around any improvement reached in long struggles.


So masspeople should strive for a world without any elite, as New World in which all people should have equal status.


http//members.chello.nl/jsteenis
New ways to increase masspower