Tuesday, December 7, 2010

Making Money With Options




We won't know until Friday whether the final proposal from Alan Simpson and Erskine Bowles can attract the votes of 14 of the commission's 18 members. Right now, the outlook is doubtful. But we do have the final proposal, so we know the policy options they're offering. Here are the four best and five worst parts of the plan:



The good:



A payroll tax holiday in 2011: Simpson and Bowles embrace the Bipartisan Policy Commission's proposal for a payroll-tax holiday in 2011. Actually, "embrace" might be a strong word. They say Congress should "consider" it. Still, a nod toward the need for policies speeding recovery is better than ignoring that need altogether.



Process, process, process: The Simpson-Bowles recommendations correctly identify congressional inertia as the central impediment to deficit reduction. And so they try to address it. To enforce discretionary spending cuts, they make spending that busts the caps ineligible for the reconciliation process, demand that Congress take a separate vote, and then instruct OMB to cut appropriations spending across-the-board by the amount that Congress has overspent unless Congress takes another vote to stop them. Inertia, in this case, is on the side of the deficit hawks.



On the health-care side, they strengthen the Independent Payment Advisory Board by applying it to all health-care providers sooner. They push tax reform through a "failsafe" that automatically increases taxes if Congress doesn't rework the system by 2013. They also include rules forcing different bodies to watch over health-care spending and the full government budget and automatically offer recommendations for reform if costs exceed preset limits. Whether these are the exact right procedural reforms is up for debate -- and probably doubtful. But the commission is right to emphasize the need for procedural reforms.



Defense spending and tax expenditures are major problems: The most positive impact the commission has had on the debate has been to move two formerly sacrosanct categories of spending onto the table. There's a lot of money in the defense budget, and much of it is wasted, but when Washington talks about cutting spending, it usually talks about "non-defense discretionary spending." The commission cuts equally from defense spending and non-defense spending. Tax expenditures like the mortgage-interest deduction also tend to get a pass, but here they come under the knife. It's very difficult to imagine any budget deal that isn't aggressive on both these fronts, so kudos to the commission for adding them.



A two-sided deal on Social Security: I don't particularly like the commission's Social Security recommendations, but I do like their vision of a deal that's more than just cuts and taxes. Their proposal sharply increases Social Security's minimum benefit, making it a better deal for poor retirees, if not for the average retiree. It also increases benefits for very old retirees, who may have outlived their savings. That's a good addition to the eventual debate over the system's solvency and sufficiency.



The bad:

The tax section: In an odd bid for Republican support, the commission caps revenues at 21 percent of GDP. That's higher than they are now, or than they've been historically. But we're also a larger, older country than we've been historically, with more social spending to support. The commission's mandate was to balance the budget, not decide the size of government. This overstepped it.



But at least that made some political sense. Simpson and Bowles's timidity on tax options is odder. They correctly emphasize the need for tax reform, but they limit themselves to the design of the current system -- a system which almost all experts agree is flawed. No mention of a carbon tax or a value-added tax, both of which are preferred by many, if not most, tax-policy experts.



The 2012 start date: Simpson and Bowles start their cuts in 2012, as they assume the economy will have recovered by then. But what if it hasn't? A better approach would've been using an economic indicator as a trigger. For instance, we could've held stimulative measures like unemployment insurance and a payroll-tax cut until the unemployment rate dipped to 6.5 percent and then, when that milestone was hit, moved to austerity. As it is, there's no real guarantee we'll be recovered by 2012, and if we're not, then we shouldn't start cutting.



Raising the retirement age: If we want to cut Social Security benefits, we should cut Social Security benefits. Raising both the early and full retirement ages mainly penalizes those who hate their jobs or can no longer physically fulfill them. That's not the right way to reform Social Security.



Hobbling government: Among the plan's worst ideas is to cut congressional and White House budgets by 15 percent. Given the role of government and the complexity of modern life, members of Congress are probably understaffed even now. Taking staff away from them just means they'll either be more ignorant about the bills they're voting on, less responsive to their constituents or more reliant on lobbyists and outside players. That's a penny-wise and pound-foolish approach: The small short-term savings will probably be dwarfed by the deep long-term costs.



The same goes for the plan's other aggressive cuts to the government. One proposal, for instance, relies on "attrition" -- not to mention a three-year pay freeze -- to sharply cut the federal workforce by 200,000. "Washington needs to learn to do more with less, using fewer resources to accomplish existing goals without risking a decline in essential government services," the report says. But that's magical thinking. Companies and governments typically do less with less, and though having less saves some money on the front-end, too few banking regulators with too low pay, for instance, might end up costing us a lot of money later on. I'm for smart and targeted reforms to the federal workforce, but these aren't them.



Cowardice on health-care reform: The plan's health-care savings largely consist of hoping the cost controls (IPAB, the excise tax, and various demonstration projects) in the new health-care law work and expanding their power and reach. But the commission "does not take a position" on the new law. In the event that more savings are needed, they throw out a grab bag of liberal and conservative policies, ranging from a public option and government purchasing to Medicare privatization, but don't really put their weight behind any of them. Given that health-care costs are the single most significant driver of our long-term budget problem, the commission's decision to hide from the big questions here is quite disappointing, particularly given their self-styled focus on making hard decisions and telling unpopular truths.



In the never-ending search for bigger and faster storage options, Mac users have a number of sources for hard drives, but OWC has been a favorite for many Apple fans since the late 1980s. Now the company is offering a set of turnkey eSATA add-ons and upgrades for mid-2010 27" iMacs that should make almost any space-challenged Machead happy.


The upgrade paths are all outlined on a special configuration web page on OWC's site. It all starts with an internal boot solid-state drive. If you already have the 256GB internal SSD option installed in your iMac, then you're ready to go -- if not, then you move on to the next step, which is to add either an eSATA port or an internal SSD.


You then have the option of adding more SSDs (up to a total three 480GB drives) and/or a big 7200 RPM hard drive. Adding the "last" SSD disables your internal SD card reader, but never fear -- OWC throws in a USB card reader to replace it. The capacity of the 7200 RPM hard drive can be up to 3TB, making for a lot of built-in storage.


My personal dream configuration, if money was no object (and it is), would be to get a 480GB SSD installed for a boot and applications drive, a second 480GB SSD for mirroring the first drive, and a 3TB drive for all of my data. Then I'd have the eSATA port installed and put my original 2TB internal drive into an OWC eSATA enclosure for doing some backups. Throw in a 16GB RAM upgrade, an external Blu-Ray read/write drive, and a three-year extended warranty, and the cost would be right around $3,000.


It is great to see these kinds of storage options available for iMacs, and tremendous fun to price out the different configurations. If money was no object, what would you have OWC install in your 27" iMac?


[via Electronista]



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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We won't know until Friday whether the final proposal from Alan Simpson and Erskine Bowles can attract the votes of 14 of the commission's 18 members. Right now, the outlook is doubtful. But we do have the final proposal, so we know the policy options they're offering. Here are the four best and five worst parts of the plan:



The good:



A payroll tax holiday in 2011: Simpson and Bowles embrace the Bipartisan Policy Commission's proposal for a payroll-tax holiday in 2011. Actually, "embrace" might be a strong word. They say Congress should "consider" it. Still, a nod toward the need for policies speeding recovery is better than ignoring that need altogether.



Process, process, process: The Simpson-Bowles recommendations correctly identify congressional inertia as the central impediment to deficit reduction. And so they try to address it. To enforce discretionary spending cuts, they make spending that busts the caps ineligible for the reconciliation process, demand that Congress take a separate vote, and then instruct OMB to cut appropriations spending across-the-board by the amount that Congress has overspent unless Congress takes another vote to stop them. Inertia, in this case, is on the side of the deficit hawks.



On the health-care side, they strengthen the Independent Payment Advisory Board by applying it to all health-care providers sooner. They push tax reform through a "failsafe" that automatically increases taxes if Congress doesn't rework the system by 2013. They also include rules forcing different bodies to watch over health-care spending and the full government budget and automatically offer recommendations for reform if costs exceed preset limits. Whether these are the exact right procedural reforms is up for debate -- and probably doubtful. But the commission is right to emphasize the need for procedural reforms.



Defense spending and tax expenditures are major problems: The most positive impact the commission has had on the debate has been to move two formerly sacrosanct categories of spending onto the table. There's a lot of money in the defense budget, and much of it is wasted, but when Washington talks about cutting spending, it usually talks about "non-defense discretionary spending." The commission cuts equally from defense spending and non-defense spending. Tax expenditures like the mortgage-interest deduction also tend to get a pass, but here they come under the knife. It's very difficult to imagine any budget deal that isn't aggressive on both these fronts, so kudos to the commission for adding them.



A two-sided deal on Social Security: I don't particularly like the commission's Social Security recommendations, but I do like their vision of a deal that's more than just cuts and taxes. Their proposal sharply increases Social Security's minimum benefit, making it a better deal for poor retirees, if not for the average retiree. It also increases benefits for very old retirees, who may have outlived their savings. That's a good addition to the eventual debate over the system's solvency and sufficiency.



The bad:

The tax section: In an odd bid for Republican support, the commission caps revenues at 21 percent of GDP. That's higher than they are now, or than they've been historically. But we're also a larger, older country than we've been historically, with more social spending to support. The commission's mandate was to balance the budget, not decide the size of government. This overstepped it.



But at least that made some political sense. Simpson and Bowles's timidity on tax options is odder. They correctly emphasize the need for tax reform, but they limit themselves to the design of the current system -- a system which almost all experts agree is flawed. No mention of a carbon tax or a value-added tax, both of which are preferred by many, if not most, tax-policy experts.



The 2012 start date: Simpson and Bowles start their cuts in 2012, as they assume the economy will have recovered by then. But what if it hasn't? A better approach would've been using an economic indicator as a trigger. For instance, we could've held stimulative measures like unemployment insurance and a payroll-tax cut until the unemployment rate dipped to 6.5 percent and then, when that milestone was hit, moved to austerity. As it is, there's no real guarantee we'll be recovered by 2012, and if we're not, then we shouldn't start cutting.



Raising the retirement age: If we want to cut Social Security benefits, we should cut Social Security benefits. Raising both the early and full retirement ages mainly penalizes those who hate their jobs or can no longer physically fulfill them. That's not the right way to reform Social Security.



Hobbling government: Among the plan's worst ideas is to cut congressional and White House budgets by 15 percent. Given the role of government and the complexity of modern life, members of Congress are probably understaffed even now. Taking staff away from them just means they'll either be more ignorant about the bills they're voting on, less responsive to their constituents or more reliant on lobbyists and outside players. That's a penny-wise and pound-foolish approach: The small short-term savings will probably be dwarfed by the deep long-term costs.



The same goes for the plan's other aggressive cuts to the government. One proposal, for instance, relies on "attrition" -- not to mention a three-year pay freeze -- to sharply cut the federal workforce by 200,000. "Washington needs to learn to do more with less, using fewer resources to accomplish existing goals without risking a decline in essential government services," the report says. But that's magical thinking. Companies and governments typically do less with less, and though having less saves some money on the front-end, too few banking regulators with too low pay, for instance, might end up costing us a lot of money later on. I'm for smart and targeted reforms to the federal workforce, but these aren't them.



Cowardice on health-care reform: The plan's health-care savings largely consist of hoping the cost controls (IPAB, the excise tax, and various demonstration projects) in the new health-care law work and expanding their power and reach. But the commission "does not take a position" on the new law. In the event that more savings are needed, they throw out a grab bag of liberal and conservative policies, ranging from a public option and government purchasing to Medicare privatization, but don't really put their weight behind any of them. Given that health-care costs are the single most significant driver of our long-term budget problem, the commission's decision to hide from the big questions here is quite disappointing, particularly given their self-styled focus on making hard decisions and telling unpopular truths.



In the never-ending search for bigger and faster storage options, Mac users have a number of sources for hard drives, but OWC has been a favorite for many Apple fans since the late 1980s. Now the company is offering a set of turnkey eSATA add-ons and upgrades for mid-2010 27" iMacs that should make almost any space-challenged Machead happy.


The upgrade paths are all outlined on a special configuration web page on OWC's site. It all starts with an internal boot solid-state drive. If you already have the 256GB internal SSD option installed in your iMac, then you're ready to go -- if not, then you move on to the next step, which is to add either an eSATA port or an internal SSD.


You then have the option of adding more SSDs (up to a total three 480GB drives) and/or a big 7200 RPM hard drive. Adding the "last" SSD disables your internal SD card reader, but never fear -- OWC throws in a USB card reader to replace it. The capacity of the 7200 RPM hard drive can be up to 3TB, making for a lot of built-in storage.


My personal dream configuration, if money was no object (and it is), would be to get a 480GB SSD installed for a boot and applications drive, a second 480GB SSD for mirroring the first drive, and a 3TB drive for all of my data. Then I'd have the eSATA port installed and put my original 2TB internal drive into an OWC eSATA enclosure for doing some backups. Throw in a 16GB RAM upgrade, an external Blu-Ray read/write drive, and a three-year extended warranty, and the cost would be right around $3,000.


It is great to see these kinds of storage options available for iMacs, and tremendous fun to price out the different configurations. If money was no object, what would you have OWC install in your 27" iMac?


[via Electronista]



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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We won't know until Friday whether the final proposal from Alan Simpson and Erskine Bowles can attract the votes of 14 of the commission's 18 members. Right now, the outlook is doubtful. But we do have the final proposal, so we know the policy options they're offering. Here are the four best and five worst parts of the plan:



The good:



A payroll tax holiday in 2011: Simpson and Bowles embrace the Bipartisan Policy Commission's proposal for a payroll-tax holiday in 2011. Actually, "embrace" might be a strong word. They say Congress should "consider" it. Still, a nod toward the need for policies speeding recovery is better than ignoring that need altogether.



Process, process, process: The Simpson-Bowles recommendations correctly identify congressional inertia as the central impediment to deficit reduction. And so they try to address it. To enforce discretionary spending cuts, they make spending that busts the caps ineligible for the reconciliation process, demand that Congress take a separate vote, and then instruct OMB to cut appropriations spending across-the-board by the amount that Congress has overspent unless Congress takes another vote to stop them. Inertia, in this case, is on the side of the deficit hawks.



On the health-care side, they strengthen the Independent Payment Advisory Board by applying it to all health-care providers sooner. They push tax reform through a "failsafe" that automatically increases taxes if Congress doesn't rework the system by 2013. They also include rules forcing different bodies to watch over health-care spending and the full government budget and automatically offer recommendations for reform if costs exceed preset limits. Whether these are the exact right procedural reforms is up for debate -- and probably doubtful. But the commission is right to emphasize the need for procedural reforms.



Defense spending and tax expenditures are major problems: The most positive impact the commission has had on the debate has been to move two formerly sacrosanct categories of spending onto the table. There's a lot of money in the defense budget, and much of it is wasted, but when Washington talks about cutting spending, it usually talks about "non-defense discretionary spending." The commission cuts equally from defense spending and non-defense spending. Tax expenditures like the mortgage-interest deduction also tend to get a pass, but here they come under the knife. It's very difficult to imagine any budget deal that isn't aggressive on both these fronts, so kudos to the commission for adding them.



A two-sided deal on Social Security: I don't particularly like the commission's Social Security recommendations, but I do like their vision of a deal that's more than just cuts and taxes. Their proposal sharply increases Social Security's minimum benefit, making it a better deal for poor retirees, if not for the average retiree. It also increases benefits for very old retirees, who may have outlived their savings. That's a good addition to the eventual debate over the system's solvency and sufficiency.



The bad:

The tax section: In an odd bid for Republican support, the commission caps revenues at 21 percent of GDP. That's higher than they are now, or than they've been historically. But we're also a larger, older country than we've been historically, with more social spending to support. The commission's mandate was to balance the budget, not decide the size of government. This overstepped it.



But at least that made some political sense. Simpson and Bowles's timidity on tax options is odder. They correctly emphasize the need for tax reform, but they limit themselves to the design of the current system -- a system which almost all experts agree is flawed. No mention of a carbon tax or a value-added tax, both of which are preferred by many, if not most, tax-policy experts.



The 2012 start date: Simpson and Bowles start their cuts in 2012, as they assume the economy will have recovered by then. But what if it hasn't? A better approach would've been using an economic indicator as a trigger. For instance, we could've held stimulative measures like unemployment insurance and a payroll-tax cut until the unemployment rate dipped to 6.5 percent and then, when that milestone was hit, moved to austerity. As it is, there's no real guarantee we'll be recovered by 2012, and if we're not, then we shouldn't start cutting.



Raising the retirement age: If we want to cut Social Security benefits, we should cut Social Security benefits. Raising both the early and full retirement ages mainly penalizes those who hate their jobs or can no longer physically fulfill them. That's not the right way to reform Social Security.



Hobbling government: Among the plan's worst ideas is to cut congressional and White House budgets by 15 percent. Given the role of government and the complexity of modern life, members of Congress are probably understaffed even now. Taking staff away from them just means they'll either be more ignorant about the bills they're voting on, less responsive to their constituents or more reliant on lobbyists and outside players. That's a penny-wise and pound-foolish approach: The small short-term savings will probably be dwarfed by the deep long-term costs.



The same goes for the plan's other aggressive cuts to the government. One proposal, for instance, relies on "attrition" -- not to mention a three-year pay freeze -- to sharply cut the federal workforce by 200,000. "Washington needs to learn to do more with less, using fewer resources to accomplish existing goals without risking a decline in essential government services," the report says. But that's magical thinking. Companies and governments typically do less with less, and though having less saves some money on the front-end, too few banking regulators with too low pay, for instance, might end up costing us a lot of money later on. I'm for smart and targeted reforms to the federal workforce, but these aren't them.



Cowardice on health-care reform: The plan's health-care savings largely consist of hoping the cost controls (IPAB, the excise tax, and various demonstration projects) in the new health-care law work and expanding their power and reach. But the commission "does not take a position" on the new law. In the event that more savings are needed, they throw out a grab bag of liberal and conservative policies, ranging from a public option and government purchasing to Medicare privatization, but don't really put their weight behind any of them. Given that health-care costs are the single most significant driver of our long-term budget problem, the commission's decision to hide from the big questions here is quite disappointing, particularly given their self-styled focus on making hard decisions and telling unpopular truths.



In the never-ending search for bigger and faster storage options, Mac users have a number of sources for hard drives, but OWC has been a favorite for many Apple fans since the late 1980s. Now the company is offering a set of turnkey eSATA add-ons and upgrades for mid-2010 27" iMacs that should make almost any space-challenged Machead happy.


The upgrade paths are all outlined on a special configuration web page on OWC's site. It all starts with an internal boot solid-state drive. If you already have the 256GB internal SSD option installed in your iMac, then you're ready to go -- if not, then you move on to the next step, which is to add either an eSATA port or an internal SSD.


You then have the option of adding more SSDs (up to a total three 480GB drives) and/or a big 7200 RPM hard drive. Adding the "last" SSD disables your internal SD card reader, but never fear -- OWC throws in a USB card reader to replace it. The capacity of the 7200 RPM hard drive can be up to 3TB, making for a lot of built-in storage.


My personal dream configuration, if money was no object (and it is), would be to get a 480GB SSD installed for a boot and applications drive, a second 480GB SSD for mirroring the first drive, and a 3TB drive for all of my data. Then I'd have the eSATA port installed and put my original 2TB internal drive into an OWC eSATA enclosure for doing some backups. Throw in a 16GB RAM upgrade, an external Blu-Ray read/write drive, and a three-year extended warranty, and the cost would be right around $3,000.


It is great to see these kinds of storage options available for iMacs, and tremendous fun to price out the different configurations. If money was no object, what would you have OWC install in your 27" iMac?


[via Electronista]



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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Scripting <b>News</b>: My JSON River of <b>News</b>

My JSON River of News. By Dave Winer on Monday, December 06, 2010 at 9:45 PM. First a few preambles... Permanent link to this item in the archive. 1. I'm a big believer in the River of News style of feed reader. Reverse-chronologic. ...

Small Business <b>News</b>: The Small Business Samba

From the slow dance Republicans and Democrats have been doing in Washington the last few weeks over tax cuts and jobless benefit extensions approved earlier.

Breaking <b>News</b>: Watch A Gigantic Looping Solar Prominence

The Solar Dynamics Observatory never fails to deliver absolutely stunning images from the Sun: as of 18:49 UT today, the above picture is what the Sun looked like in the ultraviolet spectrum. The prominence that you are seeing looping ...



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