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Monday, January 15, 2007
Rich Galen :: Townhall.com Columnist
Rooting for Failure
by Rich Galen
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The new Democratic majority in the House is pretending to accomplish a bunch of things during the first 100 hours of the 100th Congress.

As the Congress opened at noon on January 4th, you might think the first 100 hours would have come to an end at 4 PM on January 8th - 100 hours later.

Silly child. The first 100 hours is actually the first 100 LEGISLATIVE hours which, at the current rate, will end some time around July 11th.

Nevertheless the Dems are punching bills through at a high rate of speed. One of them was an increase in the minimum wage rate which, over the next couple of years will rise from the current $5.15 per hour to $7.25 per hour by mid-2009.

Ok, you can argue whether that is a good or a bad idea based upon whatever high-level-macro-micro-economic-counter-inflationary theories you learned in Econ 315 in college.

But, it turns out that in the rush to get the minimum wage boost to the floor, the Democrats exempted workers on American Samoa where the minimum wage starts at $2.63 per hour.

American Samoa is, according to the historyofnations.net website: "An unincorporated and unorganized territory of the US; administered by the Office of Insular Affairs, US Department of the Interior."

American Samoa has a representative to the US Congress (Eni Faleomavaega) who has no vote. From that standpoint, American Samoa has exactly the same status in the US House as the District of Columbia.

It's principal administrative area is Pago Pago which is pronounced "Pango-pango."

According to the Department of Labor:

Canned tuna processing is by far the largest private-sector employer in American Samoa. Many of the other private-sector jobs provide goods or services to the tuna processors. Moreover, the economic growth of many other private-sector employers in the consumer retail and service sectors is tied to tuna industry expenditures.

The two biggest tuna processing companies in American Samoa are StarKist and Chicken of the Sea. StarKist is owned by Del Monte foods. Del Monte foods is located in San Francisco, California the home district of Speaker Nancy Pelosi.

Although tuna packers make $3.26 per hour, that is still - according to my calculator - $1.89 below what a tuna packer actually working in San Francisco for Del Monte would have to be paid under US law.

The American Samoan government is protesting that the lower minimum wage has to be preserved otherwise the jobs will move somewhere else.

Oh, really? And this is different from what employers in Mississippi, or southern Ohio, or West Virginia are facing  how?

Exempting Del Monte from the minimum wage is just as much an earmark as anything pushed through by Randy "Duke" Cunningham (R-Cellblock E).

Pelosi's office immediately claimed she had not known about the American Samoan exemption and was opposed to it.

That leads us to two points:

1. This is what happens when you shove major legislation through the House without proper committee hearings and minority party participation. How do we know this? Because the DEMOCRATS COMPLAINED ABOUT IT FOR 12 YEARS!

2. Unless Nancy Pelosi has hired the Oompa Loompas from Willy Wonka's chocolate factory to write legislation, it strains credulity that the bill drafters were unaware of the effect this was going to have on a major corporation headquartered in the Speakers' district.

Tuna packers on American Samoa are, on their own, not crucial to the health of the US economy. However, this episode shows that the Democrats are a long way from cleaning up abuses of privilege in the House.

The very issue on which they ran and won.

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About The Author

Rich Galen has been a press secretary to Dan Quayle and Newt Gingrich. Rich Galen currently works as a journalist and writes at Mullings.com

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I Can't Wait...
... to read the lefty apologists' comments that are sure to show up here. Their words will run the gamut from "I believe Nancy didn't know" to the usual comment when all else fails with this crowd -- "So what?"

Yep... she's sure getting out of the gate proving she's going to oversee the most ethical Congress in history! Reminds me of Clinton's pledge in 1992!

my 2 cents
this reminds me of a song by sting some years back that we should sing to the dems

"I'll be watching you"

and it works both ways

A good piece by Mr. Galen - factual and unarguable.

whoops
I meant unless (until?) LD gets hold of it.

A general response...
Although I'm sorry to say Primus not really in response to the details here... but the bigger fish picture is that the people of American Samoa are going to have to find new ways of making a living sooner rather than later anyway. Thanks to the rapid depletion of global tuna stocks there ain't going to be much of a tuna canning industry there or in San Fran in a few years time. Not that I'm defending the fact that the minimum wage hasn't been applied there; it's just going to be a moot point if something radical isn't donew about overfishing.

Not true, CB
"...Thanks to the rapid depletion of global tuna stocks there ain't going to be much of a tuna canning industry there or in San Fran in a few years time..."


Although global tuna stocks have fallen, they are not imperiled nor is the situation catastrophic. (Same as with any and every other doom and gloom prediction we've been subjected to by the environmental catastrophe industry for the past half century).

http://the.honoluluadvertiser.com/article/2006/Dec/14/br/br3496582170.html

Primus54
I'm sure the lefties will be here. Right now they're busy protesting Saddam's hanging on Burt's column.

Believe what you like thmbuzz
But I believe that unless something radical is done about commercial fishing there will come a time in my life when a tuna steak will set me back $100. We can't go on "harvesting" a natural resource that we don't replace; it's totally irresponsible. Barring a global cow, chicken or sheep pandemic we aren't likely to run out of beef, chicken or lamb - but we sure are going to run out of tuna one day.

typical hypocrisy!
Nancy is leading the fight against the culture of corruption! This was probably just a test...yeah, that's it...a test...to see how the dirty Republicans do it.

Now that she has that information, she is free to go after those others who are corrupt.

Or maybe she realizes that if they raise the miniumum wage on American Somoa, many workers will lose their jobs...because everybody (except liberals with a liberal education) knows that the money to pay workers more money HAS TO COME FROM SOMEWHERE AND IT WON'T BE THE COMPANY'S BOTTOM LINE. Nope, a company will either raise prices or it will cut some of its employees.

Nancy knows this, but she counts on the masses of liberal followers being ignorant!!

Go, Nancy!!
Don't root for failure. Let's see if Nancy Pelosi and her colleagues can make this president discover a four-letter word he hasn't yet used on anything meaningful: veto.

Maybe Nancy will make REPUBS in Congress discover what it means to really be in opposition - and why they should listen to American voters.

Give 'em h**l, Nancy!!

Goshawk
Well... I was there earlier. I don't think I posted anything.

Personally, I would like to have seen Saddam placed feet first into one of his favorite toys -- the plastic shredder -- with the entire thing on international television, and maybe with a message at the end warning our other enemies that they could be next!

Oh.. and Critical Bill has already weighed in from the left!

CB
Sorry, I'll take NOAA's (and others) facts over your beliefs.

If it had been a GOP member...
Then they would have had to resign by now in the face of protest from the MSM and Democrats.

What a double standard...

She should step down for this and action must be taken.

On the flip side, at least American Samoa still has free markets...

CB, just to make sure I understand you.
You are agreeing that an increase in the minimum wage in American Samoa would eliminate jobs (in tuna processing)?






tbmbuzz
Go to google and type in "tuna stocks". You'll find that the overwhelming majority of reports conclude that the species is being overfished and stocks are at critical levels. It's not just my "belief", it's the view of the majority of ocean scientists too.

No Steve O
I was just making a hysterical doomsday prediction about tuna stocks and the fishing industry in general. Anyway, what are you lot doing here? I thought it was a holiday in the States today. Get out and enjoy your day off!

Critical Bill
I suppose in the free market, with its rules of supply and demand, this so-called critical tuna shortage is why I can buy cans of tuna at 3 for $2? And sometimes even less?


CB
"...Go to google and type in "tuna stocks"..."

I did and posted a link to an article summarizing the research performed by NOAA and other scientific organizations. Read it.

Primus / tbmbuzz
Firstly, the article you chose supported your argument - as opposed to the majority of which don't. I did read it; a 64 per cent decline at the top end doesn't read well. If the world's cow population was 64 per cent lower we wouldn't be buying 99 cent cheeseburgers, would we? As to why cans of tuna are dirt cheap, well, I'm not going to claim that I know the answer to that. Perhaps it's because the tuna that ends up in cans, rather than in steak form, is the dregs from the carcass, the bits washed off the skeleton with high powered hoses. Perhaps. But perhaps it's because the m`ethods for catching tuna have become ever more economically viable, more powerful, and cheaper. I expect the sailors who ate dodos didn't worry too much about how many they ate until there weren't any left. But I'll ask you guys - how will we avoid eating all of the tuna in the oceans if there is no cap on fishing? Because no matter how you look at it, we will run out. Maybe not in our lifetimes, but certainly in our children's.

C.B.
It is my experience that whenever some issue such as this hits the public arena, there are always more articles supporting the "bad news" than the opposite viewpoint... always.

That's why I NEVER take any of these studies at face value anymore. I will dig and dig until I can find out who has a vested interest in the outcome of the recommendations of the studies.

This subject, along with man-made global warming and many others have become so politicized, it has become almost impossible to get to the truth these days.

Getting back on topic ...
The local government in Samoa asked that they be exempt from increases in the minimum wage because they say that many local jobs will be lost. (But what do they know?)

Nancy says that she didn't know about the exception but would have opposed it. Although she hasn't talked about any supplementary legislation she may be telling the truth.

My take:

Consumers are willing to pay more for "dolphin safe" tuna, but I doubt they will pay more for "high-labor cost" tuna. If producers can't pass higher costs on to consumers they can make less money, or they can move production elsewhere.

What do you think would happen here CB?

going extinct...
Stocks of tuna and other large ocean predators fell between 9 percent and 64 percent from 1950 to 2004, according to the study, published in the journal Science today. Earlier reports suggested populations had fallen as much as 90 percent, said Mark Maunder, study co-author and senior scientist at the Inter-American Tropical Tuna Commission in La Jolla, Calif.

"Some of the stock have declined, but they're not going extinct," he said in a telephone interview.

The fall in the number of larger fish, so-called top-level predators, was due to increased human demand and fisheries going after smaller, younger fish, Maunder said. Aside from preventing development into large predators, targeting younger fish may limit reproduction that replenishes populations, he said.

That extract is taken from the first few paragraphs of the article tbmbuzz links. Of course there is a difference between declining 64 per cent and going extinct, but the trend is clearly heading in one direction only with almost no chance of a reversal, particularly in larger species that do not suit fish farming. Besides, if you were watching a stock in the market that was down 64 per cent, what would you do? Carry on regardless or attempt to do something about it? The sensible investor would want to stop the rot not keep on buying.

Gotta go in a sec Steve O
OK if I post a response later on? Just to say, "dolphin friendly tuna" is about the most cynical marketing ploy I have ever heard of!!!

No problem CB.
My lunchtime is over too, so I'll check tonight!

Cheers!

People who produce...
Fish, trees, oil, and whatever know how much they have to work with. They know better than anybody the current supply of their market. These people depend on such things for their own jobs and thus protect them.

Such as crab fisherman throwing the females back, loggers planting new trees, and well for oil... there is no coming back there but the market sure as heck reflects the slightest twitch in supply and demand.

CB
The point I was trying to make is that you can't cry wolf when it's only a dog barking. Yet that is what the doom and gloom extremist environmentalist crowd persistently does, and you've fallen into the same sort of rhetorical trap ("$100 tuna steaks in my lifetime"). I am not denying that fish stocks are down, but there is no reason for overboard hyperbole. Furthermore, estimates that claim declines of 9% to 64% (and possibly 90%) are hardly creditable studies. In science, such a broad numerical/statistical brush is meaningless.

As always, any and all environmental problems, including this one, will be solved by democratic capitalism.

Primus54
I'm with you on the shredder! Feet first so he can watch himself being consumed.

Follow the money
A well known radio comentator, during one of his long opinions, pointed out that Granny Nan's husband owns about $17 milion of Del Monte Stock. Does anybody think that exempting StarKist might have been more than an oversight?


Rooting for Failure?
Failure for whom? American Samoans who may end up losing their jobs because the tuna go extinct or the minimum wage is increased?

Talk about a disconnect between the title and the contents of the article. The comments are all over the map, too.

As for saving the tuna, CB, if you can persuade the Japanese to stop using drift nets hundreds of miles long to catch everything that moves, more power to you. It might help save the other endangered cetaceans.

Meanwhile, check out http://www.non-normie.com for as sensible an explanation of why we have so much conflict and silliness in the world.

tbmbuzz...
I disagree that, as you say, "9% to 64%" is hardly creditable. As a practicing engineer, I can assure you that even broader uncertainties are often vitally important in scientific study. The apparent discrepancy is merely a reflection of the difficulty of estimating the actual quantity.

In science, no figure is ever given with absolute certainty. Even the 9 and 64 bounds are themselves subject to uncertainty, which the researchers will describe using "standard deviations" and similar terms.

I submit that the quoted figures are useful. For a start, they strongly suggest a decline (duh!). That is much more useful than not knowing whether it is an increase, decrease or steady.

I agree that the $100 can of tuna (or whatever) is probably an exaggeration, since there are alternatives to tuna, and the existence of cheaper alternatives may give tuna a chance to recover.

Of course, economics 101 does not consider such nuances as chaotic or non-linear behavior in resource populations. For example, nobody knows whether there is a critical number of tuna required to sustain their population, let alone what that point may be. We don't even know whether the market would respond fast enough to prevent an incipient extinction from occurring.

Here are some more examples of silly, over-the-top predictions, just for fun:

Gold will never go over $2000/oz.

Oil will never go over $200/b.

Google shares will never go over $500.


Phoenix Lady
Interesting web site! Thanks for posting the link. Also took the test offered there. Seems I'm normal. Ha ha ha.

We will be overwhelmed by silence
You may here this exemption discussed by one of the conservative commentators on Fox but it will be largely ignored by everyone else. I don't expect to see a lot from the liberals here on it either.

Just a question
Have tunas quit having babies?

Just a question
Have tunas quit having babies?
At the rate our children are being aborted we will run out of babies first.

Texaslady

As far as I know tunas havn't quit having babies.
How do I know? I'm buying tuna in East Texas for
35 to 50 cents a can. Give the Samoans the raise
and i'll probably have to pay 36 to 51 cents a
can. In my opinion abortion is wrong. But we won't run out of babies as long as long as our president and the dumbacrats and some stupid
repubs keep them coming across the border.

Texaslady
WC Fields once said "I dont't drink water, fish f*ck in it".

American Samoa always exempted
For 20 years I lived in American Samoa having left in 2005. American Samoa has always been left out of U.S. minimum wage laws as everyone realizes that the local economy would collapse if forced to pay such higher wages. The Democrats have long realized that minimum wage laws are bad for the economy whether in the U.S. or American Samoa but push such things through because it is popular with economically ignorant voters.
Nancy Pelosi is not stupid and knows full well that minimum wage laws hurt the very people she claims to want to help. In the case of American Samoa, it would destroy the local economy clearly demonstrating the deliterious effects of the minimum wage, such effects being not quite so prominent elswhere. Thus the Dems can pose as the saviors of the poor and not have it readily noticed that it hurts the poor so long as American Samoa is exempted. Also, Speaker Pelosi has a personal interest in preventing the minimum wage from hurting Samoa such as her husband's $17 million dollars worth of Star Kist shares and the company's owner, Del Monte, being headquartered in her district. Can anyone doubt that if Newt had done something like this during his speakership that the MSM would have been all over him? So far I've heard nothing about the tie between Pelosi and the American Samoa minimum wage exemption in the MSM.

Zeig Hile
Hile San Fran! Hile Nancy! Hile San Fran Nan Grammy!

Big network news nitwit,(said fawningly,lovingly)"Look at her! Almost as a sign of the ultimate multi-tasker, she's got one nipple in the mouth of the needy,and a strap-on in the rest of us."(starts to baby talk and makes on himself) "Mommy! Mommy Nan! Charlie wants his num-num!"

social security, wage taxes, immigration
tunafish? Don't worry... Bush will not only roll out the red carpet for illegality in border crossing, but also - along with the dims he'll roll out a plan similar to that one he ran up the pole to see who'd salute on social security

again sticking it to those of us in the 45 to 55 yr. old range - whom were told we'd "paid the price" both then and in the [now] futre - at our retirement, time (date of) bar pushed later in the 70s Greenspan & co. plan -- that's right, we will bear the brunt

All of us!
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