The Government is Prey

            The government, as an entity, has become victimized by many people within and outside of its system.  It has a need for many things: products, policies, and employees, among other things and this need is taken advantage of.  Companies that supply these needs take advantage of the large amounts of money that is at the government’s disposal.  The individual employees of the government do the same thing but also abuse the powers that are given to them.  A need for change has been ever present and is addressed in the media, but is only acted on when absolutely necessary.

            Our financial crisis could be eased with the recovery and prevention of funds that have been embezzled or lost due to overcharging by companies.  We face hard economic times and our budgets have been cut in many areas effecting Americans who need help the most.  We have turned to cutting education, jobs, and benefits as a way to quickly turn things around.  It has cost many jobs and has left families homeless and unemployed.  We have avoided putting new systems into place to prevent losses from officials and companies.  By no means will any one solution solve our national debt problem but a series of solutions will. 

            Over the course of American history there has always been some form of political corruption costing the government large amounts of money.  When you think of political corruption you probably think of Richard Nixon, but he ranked number 20 in the top 25 countdown of political corruption.  Since the time of Abraham Lincoln there has been documented history of political corruption (Olbermann 2008).  Hundreds of billions of dollars can be accounted for through embezzlement by government officials (Olbermann 2008). 

(Part 2 of video:  http://www.msnbc.msn.com/id/28245651/ns/msnbc_tv-countdown_with_keith_olbermann/t/corruption-countdown/ )

           It is not only government officials who prey on the government for financial gain.  Individual citizens take advantage of government systems such as welfare, unemployment, social security, and other programs.  These people take funding from these programs leaving less for the citizens who need it.  There are investigators in place that are charged with detecting these false claims, but many of these fraudulent claims still slip through the cracks. 

            Big business has always had ties with the government by providing goods and services.  There has been a history of these companies working with corrupt politicians to steal money from the government for services.  Over a hundred years ago some railroad companies would team with politicians to charge the government for more track than what was laid.  More recent occurrences of overcharging are from medical companies.  Medical company Quest Diagnostics was recently found to have cost American taxpayers close to $15 Billion through the Medicaid and Medicare programs (Rushe 2011).  These were charges by the company for procedures that were never performed.  Pharmaceutical companies have also been found to be overcharging Medicaid and Medicare.  One example is a Asthma medication that was being sold to insurance companies for $5 was being sold to the government for $600.  In just six cases against these companies there has been $3.9 Billion recovered, and there are still 150 pending investigations (Cohen 2007).               

            The government is under attack and it is not in the tradition sense that we would think.  It is being eaten from the inside out by corrupt politicians.  It is being decayed by big business, and it is being torn apart by some of its own citizens.  There exists a need for stronger regulations and monitoring of government officials, business charges, and public claims.  We spend great amounts of money to ensure their security but we need to shift some of those funds to providing more security against them.  We need to have a system of regulators that monitor the financial activities of these politicians.  We also need more accurate monitoring of government funds paid out to companies to ensure that the funds paid out match the products or services received.  Our fraud investigators need more resources available to them to detect false claims.  It would be easy for the monitors in these systems to become corrupted, and a need for reassigning and accurate documentation of their efforts exists.  The amount of money that we spend to upgrade these monitoring systems will be seen multiplied in return, and may help us to save jobs and benefits for honest Americans.

           

Sources:

Cohen (February 2007).  Pharmaceutical Companies Overcharging Federal Health Care

            Programs.  News Medical.  Accessed 12/1/11.  http://www.news

-medical.net/news/2007/02/25/22146.aspx?page=2

Olbermann, Keith (December 2008)  Corruption Countdown.  MSNBC.  Accessed 12/1/11.

http://www.msnbc.msn.com/id/28245651/ns/msnbc_tv-

countdown_with_keith_olbermann/t/corruption-countdown/

Rushe, Dominic (July 2011).  UK Businessman Accuses Quest Diagnostics of Overcharging US

Government.  The Guardian.  Accessed 12/1/11.

http://www.guardian.co.uk/business/2011/jul/05/uk-businessman-accuses-quest-

diagnostics

Falling Housing Cripples More Than Witches

            The pop of the housing bubble helped send this country into one of the worst economic times that it has ever seen.  It sent ripples across the world and effected many other countries’ economies.  The cause of the crisis was the irresponsible lending and borrowing of mortgage loans.  The rise in demand created a need for greater supply, driving the prices higher than ever seen before.  The effects of this is the largest amount of foreclosed homes in American history and a crippled economy.

            As the economy thrived and many Americans were working well paying jobs the desire for nice homes increased.  They were after the dream of owning a home and wanted the best they could afford.  When they went to the banks, the lenders said they could get a loan for a home that previously seemed out of their budget.  They created loans that made extremely expensive homes appear affordable.  These loans consisted of no money down and very low payments for the first few years that slowly increased over time.  The borrowers did not know that with the minimum monthly payments they were not paying off any of the balance, but were actually gaining more debt. 

The lenders insisted that, with the current housing market, the home would be worth even more money by the time the payments became unaffordable.  The borrower could sell the home, make a large profit, and buy another nice home.  The lenders did little to no credit check on the buyers because they wanted to push the loans out so they could move onto the next loan and commission.

            The lenders were not concerned with the inability of borrowers to pay back the loans.  In order to make money quickly the banks were taking these large loans at a high interest rate and were bundling them together.  They would take a package of these loans and sell them off to investors (Picayune 2011).  An example is the lenders would take twenty million dollars worth of principle loans that would yield ten million dollars of interest payments over thirty years and they would sell them to investors for twenty five million dollars.  The lenders instantly made five million dollars and had more money to lend for new mortgages.  These investors would take these same mortgage loans and sell them to the governments of other countries for a profit and leave them to collect the profits from the interest paid. 

            New homes were being built and home owners were selling their homes for prices never seen before.  Many Americans were doing anything they could to buy a home because of what a great investment it was.  The bubble had hit its prime and was ready to burst when houses hit approximately double their original value.  Borrowers suddenly found it difficult to sell their homes because of the new ones being built and many other home owners trying to cash out on the value of their home.  When they were unable to sell their homes the increasing mortgage payments became more than they could handle.  A flood of foreclosures began as borrowers were unable to pay their mortgage or sell their homes.  The investors who had bought up all of the mortgage loans were suddenly left with massive amounts they were not going to be repaid.  In a short period of time they had gone from rich to bankrupt from their blind, greedy buying of these loans.  The demand for homes dropped and the massive rise in foreclosures increased the supply beyond anything seen before (Hagerty 2010).  The housing market had spun a complete 180 degrees as housing prices dropped to almost half of what the home was originally worth.  The investors lost massive amounts of money and the lenders did not escape the downfall either.  They were left with several packages of loans that investors did not buy and many of the lenders were in danger of falling into bankruptcy.  Several of the lenders were bought out by other larger companies while others received bail outs from the government for their irresponsible lending.

            The change in the economy was drastic after this event.  Many people were trying to stay afloat with their mortgage payments and were unable to spend money on goods, damaging the economy.  Demand for new homes, as well as many other products went down because of the lack of disposable income.  This drove down the need for workers in many industries and caused massive layoffs.  The foreign governments that had bought up mortgage loans were in danger of bankruptcy and also lost many jobs due to the lack of demand for their products by Americans.  Lenders have now created very strict home loan standards which make it difficult for even a good candidate to get a home loan.  This damages the economy even more as many of these homes sit empty while the lenders continue to lose money on them. 

            The future for the housing situation has seemed bleak for many years after the bubble popped.  On my street of 30 homes 9 of them are empty all of which were foreclosures.  The average price on these homes was $250,000 before the prices began to rise, went as high as $450,000 at the peak, and are now being sold by the banks at $125,000.  Even at this price only one of them has sold in the last 3 years.  According to several mortgage calculators, with zero dollars down and a relatively high interest rate, these homes could be bought with payments under $900 a month.  Many of these homes could be bought for mortgage payments lower than most rent payments on 2 bedroom apartments.  I think that lenders need to take the alternative route of renting these homes at a low price.  They could even give the renters an option to buy the home by putting a percentage of the rent toward paying for the home while the other percentage could be insurance for the bank.  If the renter decides to move to a different residence then the percentage toward the home would be forfeited unless the renter moves into another home owned by the bank in which case it could be transferred.  This would create the desire to fill these homes and also the incentive to stay with the home or with the lender on a move.  If people are given an alternative to mortgage loans and the banks are able to recover some of their lost profits then I think it is a win-win situation where the economy also sees a move in the right direction.           

Sources:

Hagerty, James (April 2010).  Debate rages over supply of foreclosed homes.  The Wall Street

Journal Online.  Accessed 11/25/11.

http://blogs.wsj.com/developments/2010/04/28/debate-rages-over-supply-of-foreclosed

-homes/

Picayune Staff (January 2011).  Irresponsible lending, marketing is to blame for foreclosure

            crisis.  Accessed 11/23/11.

            http://www.nola.com/business/index.ssf/2011/01/reader_comment_irresponsible_l.html

Policing on a Budget

          Police departments everywhere have been challenged with budget cuts.  They have been forced to make the hard decision of laying off some of their fellow officers who watched their backs every day.  The departments are losing resources and are still tasked with the same duties and controlling criminal activity  which is not declining in force.  This creates problems with how the community views the police.  The departments must learn to police on a budget and this comes with innovation and sacrifices.

            With the layoffs taking place at several departments the police are being hurt.  The officers are being let go not due to disciplinary issues, they were just the unlucky newest hires to the department.  They wanted to help people and laid their lives on the line everyday to protect the citizens of their community.  Their service was thanked with a stab in the back from the legislators, who they also protected, when the budget cuts to the departments were passed.  This left a void in the police departments where there was less patrol officers and community liaisons.  The officers who were not laid off now face cuts to their benefits and retirement that they were counting at the end of their career.

            Community relations are drastically affected by the budget crisis.  The police in several cities have needed to create a list of crimes that they will no longer respond to in order to use their resources more carefully (Webster 2010).  When the public calls, they expect the police to show up.  When the police do not show this will put a strain on the relationship.  The community will feel less safe and they will be.  Criminals will look at the publicized list of crimes that do not warrant police response and will know what they can get away with.  The crime rates will rise and this will further distance the community from the police.  The community will see the rising crime rate, less police presence, and will know that their area is less safe and will blame the police for this.  With the public feeling more distanced from the police they will be less likely to come to the department with a problem that may provide an opportunity for proactive policing.

            The police must adjust to these cuts and try new ways of policing.  The use of community oriented policing has been a strong tool in crime prevention.  Citizens are a powerful resource and are needed now more than ever in the efforts of law enforcement.  The citizens feel a stronger bond with the police and are more willing to call them with their problems (Mirsky 2009).  Crime prevention through community oriented policing can help to prevent a string of crimes by stopping them before the first one occurs.  This tool needs more emphasis in the limited resource environment that many departments are facing.  The departments must insure that these connections do not fade with the community because 100 pairs of eyes are better than the two pairs that it would take to inspire the 100.  The  practice of assigning non sworn personnel to handle these programs is a good way to use the resources that the department has without taking an officer from patrol.  These non sworn personnel can send out alerts to citizens or receive tips that will help with the police mission  of protecting the community  (Hall 2010). 

            In a situation where resources are limited police departments must adapt to the new environment.  Policing has evolved with the communities around them and needs to do the same with the economy.  Through the use of the innovative thinking of community oriented policing they will be able to increase their ability to deter and detect crime before it has a chance to expand.  Some police will view citizens as not sworn officers and not of much use, but these people are a valuable resource.  These people are the very community that is being protected and inspiring them to help make their own living area better can create an immensely strong resource for the police in a time of shrinking resources.

Sources 

Hall, Rob (October 2010).  Poor Chief’s Guide: Effective Community Policing on a Budget.

Police One.  Accessed 11/9/11.  <http://www.policeone.com/chiefs-sheriffs/articles/2773283-Poor-Chiefs-Guide-Effective-community-policing-on-a-budget/>

Mirsky, Ian (2009).  Community Oriented Policing.  Internet Journal of Criminology.  Accessed

11/9/11. <http://www.internetjournalofcriminology.com/Mirsky_Community_Oriented_Policing.pdf>

Webster, Steven (July 2010).  Oakland Fires 80 Officers, Lists Crimes Cops Will No Longer

 Respond To.  The Raw Story.  Accessed 11/9/11.

<http://www.rawstory.com/rs/2010/07/13/oakland-fires-80-police-officers-lists-crimes

-longer-respond/>

Intro to Financial Problems

           Financial problems can stop any person, program, or even country in its tracks.  The unavailability of funding stops the ability of that entity from accomplishing its goals.  I chose to talk about this topic because it has a drastic effect on everyone.  For students, we put our time and money into our education and expect it to pay off with a career when we graduate.  For organizations, it prevents them from being able to improve their progress and programs.  For countries, it can send them into bankruptcy and put their entire system of government at risk of deteriorating. 

            On the individual level, people are devastated by financial problems.  It causes more than just inability to pay their bills.  The people can suffer from stress, depression, anger, and a variety of other symptoms.  For students, some of us take out student loans to pay for our education and, with the rising tuition costs due to state financial problems, we are acquiring debt never seen before (Ellis 2010).  We were taught from a young age that, if  we get a college education,  there is a good paying job waiting for  us.  Many of us are being met with the harsh reality that there are extremely limited possibilities for employment, and  we are in competition with those who have been laid off and have work experience.  We graduate with large debts, no employment, and a big student loan payment.  We come to the realization that the generation who told us that a good education will get  us a good job is the same one that destroyed that way of life.

            For organizations, financial problems prevent them from growing and expanding.  They find themselves working with very limited resources trying to complete tasks that were difficult when they had twice the resources.  Many public agencies have been forced to lay off workers and have come to the realization that they must limit their services to the public.  Several law enforcement agencies will no longer respond to misdemeanor calls or assist citizens with traffic accidents (Preuitt 2010).  These organizations want to hire the graduating students but are unable to because of budgetary problems caused up the ladder from them.

            Many countries have been effected by financial problems and the ripple effects travel across all of their citizens and the world.  Some countries are going to others to ask for money to bail them out.  They go to other countries who are also having financial problems of their own, and this puts greater strain on the other country.  The mismanagement of funds by the vast systems that control the countries put us in this situation.  There were experts that saw this disaster coming, but nothing was done about it.  The U.S. has large amounts of money spent on programs that are a money pit.  Large sums of money are being embezzled and very little is done to detect this.  Companies are charging the government many fold what an item sells for to the private industry (Rosenblatt 2011).

            I chose this topic because it affects everyone’s life in one way or another.  Our leaders need to take a good look at where our money is going, why, and if it is efficient.  The realization that money is not an unlimited resource was a harsh one that almost brought the world to a standstill.  My generation will be left with damage caused by our predecessors and we must try to leave it in better shape for our successors.  I feel that this is a difficult task but is one that can be accomplished with the right people left in charge and an informed population to watch over them.    

Sources

Rosenblatt, Joel (Sept. 2011) Watson, Sandoz pay $145 million to settle drug price case.  Bloomberg Businessweek.  Accessed Sept, 29, 2011.  http://www.businessweek.com/news/2011-09-15/watson-sandoz-pay-145-million-to-settle-drug-price-case.html

Preuitt, Lori (July 2010).  Suffer These Crimes in Oakland? Don’t Call the Cops.  NBC Bay Area.  Accessed online. http://www.nbcbayarea.com/news/local/Suffer-These-Crimes-in-Oakland-Dont-Call-the-Cops-98266509.html

Ellis, Blake (Oct. 2010).  College Grads: $24,000 in debt.  CNN Money. Accessed Sept. 29, 2011.  http://money.cnn.com/2010/10/22/pf/college/student_loan_debt/index.htm

CDC… has anybody seen the R?

           The California Department of Corrections and Rehabilitation is an important part of the judicial system.  It is where convicted persons serve  their sentence and have their behavior corrected.  It has evolved from a storage house for people unwanted in our society into a professional system that is meant to rehabilitate inmates readying them to re-enter society.  We hope that their newly learned skills allow them to work, cope with problems, and avoid committing anymore crimes. 

            The CDCR has developed programs that work with the inmates to correct their poor behavior (Rehabilitation).  There are programs that allow the inmates to have sessions with psychiatrists who try to help the inmate learn to control their behavior and understand their triggers.  Another program that exists helps to teach inmates job skills allowing them to have a career when they leave prison.  Other programs help the inmates  further their education or obtain their GEDs while incarcerated.

            These programs have slowly diminished over time leaving the CDCR missing its R.  Funding has become more difficult to find for these programs in the ever increasing prison population.  Laws such as three strikes have contributed to the overcrowded prisons in California.  More inmates requires more spending on Corrections Officers, meals, medications, and other expenses.  The suffering economy and the poor budgeting skills of the California Government have caused the prison system to cut its rehabilitation programs, so it can fund the parts of the prisons that it needs to, in order to follow the laws. 

            This failure of the system has allowed for a downward spiral of the CDCR.  The prisoners are being released without job skills or coping skills necessary to succeed in society.  They find themselves exiting prison into a society with a high unemployment rate and have a hard time finding work.  They commit another crime because they are unable to properly blend back into society and find themselves back in prison.  Their sentences are longer which costs the state more money and makes the financial situation even worse.

            The national average sixty-seven percent recidivism rate means that what we are doing isn’t working.  What is next to improve this situation, is we need to look at the money that we are spending to keep these inmates locked away from society and think of better ways to spend it.  If the rehabilitation programs that we were using were not providing results, then we need to look at new ones.  One good example of why rehabilitation is an important tool is in the Chicago Justice System.  They have a boot camp for offenders where the inmates not only serve out their sentence, but they are taught discipline and green job skills.  They are taking a new rising job market and training their inmates to be ready to enter as skilled employees.  The recidivism rate of those that attend the camp is thirty percent compared the national average (NY Times 2011).  This is just one of several examples of rehabilitation programs that have a lower reoffending rate.  Although the statistics of the programs may be slightly skewed because they normally do not accept the more serious offenders, they still have a higher success rate than simple incarceration.  Another example of a way that we can better spend our money  is found in this short clip from the movie “Waiting for Superman”.

            The prison system is not a broken system but it is in need of change.  Heraclitus of Ephesus said, “The only constant in life is change”.  Change can bring about good and bad things but it is necessary to adapt.  A company would not stay in business long if it was producing products that failed and were sent back for repairs sixty seven percent of the time.  The prison system is not responsible for rehabilitating ever person that enters, but it is in everyone’s best interest if they are given the chance to try.      

Sources:

Terry, Don. (Sept. 17, 2011). An Urban Garden Prepares Inmates for Green-Collar Jobs NY Times online. Accessed Sept 20, 2011. http://www.nytimes.com/2011/09/18/us/an-urban-garden-prepares-inmates-for-green-collar-jobs.html?_r=2&pagewanted=1&sq=recidivism&st=cse&scp=3

Guggenheim, Davis.  (2010).  Waiting for Superman.  Documentary.  Accessed Sept. 19, 2011.  http://www.youtube.com/watch?v=P1VX1apvagA