Friday, August 21, 2015

The Difference Between Birthright Citizenship and Anchor Baby

Section I of the 14th Amendment states: “All persons born or naturalized in the United States, and subject to the jurisdiction thereof, are citizens of the United States and of the State wherein they reside.” That language is as plain and clear as you will find. It’s the basis of birthright citizenship. What did the drafters intent? Was it aimed to protect the newly emancipated slaves? Was it intended to overturn the Dred Scott decision, which held African Americans were not citizens? It doesn’t matter! The language speaks for itself. There’s no awkward comma like the Second Amendment. There’s no exceptions, “provided that,” or “insofar as.” The primary rule of statutory construction for the Supreme Court is to look to the words of the statute, unless, of course, Chief Justice Roberts is saving ObamaCare. If they are plain on their face, then there’s no need to look to legislative history. I don’t doubt the ability of clever lawyers to craft a superficially appealing argument against birthright citizenship, or even find a friendly district court judge, but th appellate courts will uphold birthrate citizenship. Thus, the cries to deport those born in the United States and strip them of the United States citizenship are the cries of demagogues, who should know better. They are setting up the American public for a fall if elected. The desire for birthright citizenship for the children led to Hispanic mothers giving birth in San Diego or other American communities along the Mexican border. The financial costs to the hospitals are great. We are now witnessing the growing industry of birthplace tourism, whereby expectant mothers, often Asian, visit the United States for several months to give birth in the U.S, receive the newborn’s birth certificate and passport, and then return home. The use of the term “anchor baby” overlaps birthright citizenship, but usually has a slightly different connotation. Several proposed statutes would give special rights to the parents, siblings, indeed extended family, based on the birthright citizenship of the child in the name of not separating children from their family, perhaps 25-30 in the extended family. The child thus becomes the anchor upon which the family members receive residency and eligibility for American social benefits. “Anchor baby” is becoming a derisive term to immigration supporters who recognize the political potency of the term with the majority of the American public, which is opposed to illegal immigration. Opponents of the term are looking for a suitable euphemism, but as Governor Jeb Bush said: “What would you call them?” The innocent babies are being used to “legally” open the porous borders. I never blogged about President Obama’s birth certificate or joined those questioning his American citizenship because I viewed them as non-issues. I similarly view birthright citizenship in itself as a non-issue. However, extending rights to relatives of anchor babies is different. It is a potent political issue. Donald Trump’s proposal is to deport them all, including the baby. That will never happen in this United States.

Thursday, August 20, 2015

Meijer's Runs Afoul of Wisconsin's Unfair Sales Act for Selling To Low

Milwaukee Lawyer Complains About Meijer’s Low Prices Meijer, AKA Meijer Thrifty Acres, is a hypermart chain in the Midwest. It is a pioneer in supersized retailers that seemingly sell everything. It precedes Wal-Mart’s Superstores. Meijer has survived and expanded to over 200 superstores in the Midwest despite vigorous competition from Wal-Mart, Target, Costco, and Sam’s Club. The Grand Rapids, Michigan chain in entrenched in Michigan, Indiana, Ohio, Illinois, and Kentucky. It is expanding into Wisconsin, and as is its practice, it does what several companies do in entering a new market: offer attention-grabbing specials to attract customers. These offers may be below cost. That grabbed the attention of Milwaukee attorney Gerardo Gonzalez, or whoever is funding him. He dusted off Wisconsin’s anti-chain store statute/relic from eight decades ago. A national fear erupted in the late 1920’s and early 1930’s over the rise of chain stores, whose purported predatory pricing and other practices were driving small merchants out of business. Sound familiar? The then large offending chains were A&P Supermarkets and Woolworth’s. Anyone todays remember the Great Atlantic & Pacific Tea Co. and F. W. Woolworth & Co.? How about S.K. Kresge & Co.? or Kress & Co.? What about Sears, Roebuck & Co. where “America used to shop?” The fears were palpable. The result was the enactment by states and the federal government of anti-chain store legislation. They purported to protect consumers, but were geared to propping up prices by protecting existing competitors. They do not exclude low-price competitors, such as Wal-Mart. Congress enacted in 1936 the Robinson-Patman Act, which prohibited price discrimination; e.g. large retailers getting discounts unavailable to smaller competitors. It has rarely been used successfully in recent decades. Sixteen states, including Wisconsin, enacted minimum pricing markup laws. The 1939 Wisconsin Unfair Sales Act prohibits marketing and selling goods below the marketer’s costs Consumers are hurt by these statures. For example, Wal-Mart cannot offer its flat rate policy of $4 for generic drugs. Meijer was opening stores in Kenosha and Grafton, Wisconsin. The grand opening ads contained the chain’s slogan “higher standards lower prices,” coupled with selective low prices. Attorney Gonzalez filed four complaints with 37 products with the Illinois department of Agriculture, Trade and Consumer protection, charged with enforcing the unenforcible law. Among the charges were selling bananas at $.28/pound and milk at $1.99/gallon. These come-ons are common in weekly ads by retailers. Black Fridays features scores of products that would technically violate the statute. Among the utter inanities of the statute is that it does not ban free givaways, e.g., buy $15 of cereals, and receive a gallon on milk free. One effect in Wisconsin is that attention is being paid to repealing the Wisconsin Unfair Sales Act.

Sunday, August 16, 2015

"You Gotta Know the Territory:" Haggen Doesn't

Customers and Employees are paying for the Haggen Debacle. Meredith Wilson’s great line in The Music Man: “You gotta know the territory.” Haggen doesn’t. The founding family of Haggen sold out a few years ago to an investment firm who knew nothing about supermarket retailing. They shrunk Haggen by progressively shutting stores. Down to 16, they rolled the dice, shot the moon, and purchased 164 stores from Albertson’s and Vons in the Pacific Southwest. They expanded nine fold their existing, shrinking base in the Pacific Northwest. The Northwest is not the Southwest, Seattle has many similarities to San Francisco, but San Francisco is not Los Angeles, Orange County, San Diego, the Inland Empire, and the Central Valley. The characteristics of each county or state in the Southwest are different, but none relate to the Pacific Northwest, Seattle or San Francisco. Albertson’s and Vons were forced by the Federal Trade Commission to spin off the stores as a condition of merging. Haggen jumped in to buy the castoffs. Haggen did not know the territory. Acting out of hubris, arrogance, stupidity, ignorance, who knows? Haggen believed that its policy of a broad product line, quality meats, fruits and vegetables, and organics at high prices would appeal to the Southwest. Haggen did an amazing turnaround of the stores, often in 24-36 hours. That was a mistake. The time was spent changing signage and the prices, usually raising the prices. Customers excitedly came in for the grand openings. They found high prices on the existing Albertson’s and Vons products. The result was “One and Done.” You can overcome an initial bad impression, but Haggen didn’t. Its weekly circulars do not attract customers. The short, by Southern California standards, ads do not contain specials that will attract customers. Business is booming at the overlapping Albertson’s, Vons, Ralphs, and Stater Brothers stores. Consumers are sophisticated. Many are willing to pay more for high quality, not mass processed foods. These consumers shop at Bristol Farms, Sprouts, Whole Foods, and Costco. They also patronize Trader’s Joe. They will not pay non-competitive prices at a standard super market. Haggen made other mistakes. The employees at the stores transferred to Haggen went with the stores. There were no longer employees of Albertson’s and Vons. One provision of the FTC settlement is that the staff at these stores (managers, assistant managers, etc.) may not be rehired by Albertson’s or Vons for two years. Haggen is reported to have cut their wages and benefits in the takeover. Haggen’s debacle is in record time. Pan Am, Borders, Radio Shack took years. Sears and Kmart are still open. Haggen closed on the stores in May and June. They announced in July personnel cutbacks at the stores, terminating part time employees, and converting full time workers to part time. They announced a few days ago, August 14, that they will be closing 27 stores over the 60 days: 16 in California, 5 in Oregon, 5 in Arizona, and one in Washington. The announcement said they were “right sizing” the operations. They said that a month ago with the cutbacks. The goal is to streamline and improve operations;” to “improve its business and strengthen its competitive position.” The chain also said more closings may follow. They will. The costs of each remaining store will rise as the corporate advertising, including ads, will be spread among fewer and fewer stores. For example, Haggen is closing five of its ten Arizona stores. The remaining five will be hard to sustain. Unless Haggen can quickly create an attractive brand for the remaining stores, they are doomed. The four stores being closed in Orange County, out of a total of eleven, tell the story. Orange County is nationally known for political conservatism, affluence and quirky TV shows, such as The OC, the Real Housewives of Orange County, Laguna Beach and Arrested Development. Orange County is highly affluent, but most of the county is solid middle class with a large economically disadvantaged segment of the population. I would in a sense analogize the OC to Westchester County, New York. We lived within a few blocks of a Albertson’s Ralphs, and Vons as well as a Sprouts and Trader Joe’s until Haggen moved in. Two Stater Brothers are within a couple of miles, as well as and an additional Ralphs and Vons and two new, large Albertsons. The two Vons were converted to Haggens and the Ralphs closed for competitive reasons. They are closing. I actually went into one of them a month ago for a few items. The prices weren’t bad, but the cashier was a young, bored man. The wonderful Vons lifers were gone, just like the customers. Haggen turned profitable stores into losers within a couple of weeks. Business schools should do a case study of Haggen. Our choices are now much more limited than before the Albertson’s-Vons merger. It is an inconvenience to us, but an economic disaster to the former Albertson’s and Vons employees.

Wednesday, August 12, 2015

Seven Day Update on the EPA Dam Breach: EPA Administrator Goes to the River while President Obama Goes Golfing on Martha's Vineyard

Seven days later and the EPA is still confusing the situation. It has reported that in some stretches of the river that the water quality is back to where it was before the spill. Yet, it also said that preliminary tests showed arsenic levels were 300 times the norm in the Durango area and 3,500 times the normal lead level. EPA continues to warn against drinking the water. Farmers and ranchers are looking at large economic losses. If the EPA weren’t a government agency, the class action suits would be flooding the courthouaw. The public wants straight answers, not mixed messages. That ignores the heavy metals settling in the sediments at the bottom of the streams and the orang coating on the riverbanks. EPA originally understated the extent of the contamination, just as BP with the Gulf Oil Spill. EPA said an estimated 1 million gallons escaped from the dam. The U. S. Geological Survey raised the figure to 3 million gallons. A BP employee was indicted for providing the erroneous estimate. It appears no heads will roll at the EPA. EPA delayed 24 hours in providing notification of the spill. That would be a crime if by a private enterprise. EPA Administrator Gina McCarthy finally flew out to the river Wednesday, but did not go to the scene of the dam breach. She said it was too far. It was not too far for the toxins to travel 100 miles downstream. President Obama is golfing on Martha’s Vineyard. He has not interrupted his time on the links to utter a word about the EPA fiasco. He has not even issued the usual bromides about getting to the bottom of it or finding the responsible parties. The White House will not even confirm if the President has been recently briefed on the environmental disaster. Colorado Governor Jim Hickenlooper, who barely won reelection last year, was apologetic for the EPA. He said it’s not as though the EPA were a private company, which would be bad. EPA Administrator McCarthy said the EPA “was committed to a full review.” We are still awaiting the full reviews of Fast and Furious, Benghazi, and the IRS. Here’s what happened in a recent environmental spill that did not involve a loss of life. A Duke Energy stormwater pipe burst on February 2, 2014, spilling 39,000 tons of sludge and slurry into North Carolina’s Dan River. Investigators found problems at five Duke Energy facilities. Duke paid guilty on May 14, 2015 on 9 criminal counts of unpermitted discharges and maintenance issues. It agreed to pay $68.2 million in fines and restoration costs and an additional $24 million community service fee to the National Fish and Wildlife Fund and $10 million for wetlands restoration. Duke further agreed to a 5 year probation period with an environmental compliance program and a court appointed monitor to ensure compliance. Companies and individuals, which have felt the sword of the EPA, are hoping the EPA receives a dose of its own medicine. The Congressional Hearings could be even more painful to the EPA. EPA and the responsible contractor, Environmental Restoration LL.C., will write out checks. The EPA’s share though will come from the taxpayers, thereby relieving the agency from major accountability. Governor Hickenlooper is right.. The government is different from a private corporation.

Monday, August 10, 2015

Donald Trump Would Have Been the Tea Party candid in 2010 or 2012

Who is Donald Trump? Who Supports him? Why? The Tea Party came about in 2009 in the aftermath of President Obama’s inauguration. Anger arose over his fiscal and immigration policies. The indebtedness incurred by reckless and feckless spending scared these Americans. TARP, the Stimulus Bill, ObamaCare upset them. The foreign policy of rejecting American Exceptionalism is repugnant to them. The Tea Party pioneers are Americans who adhere to the traditional values that made America great. Their anger was directed at the Obama Administration and Republicans who appeared to be co-existing with the Democrats. They wanted fighters for their values. They see lacking in House Speaker Boehner and Senate Majority McConnell the strong leadership they want in Congress to fight for Republican/American principles. The Republican leaders seem too imbued with their duty to govern responsibly rather than stand on principle. The Tea Party lost faith with the Republican establishment. The Tea Party is not a formal party unlike the Democrats and Republicans. It is a loose confederation of volunteers in local groups. The Silent Majority of Richard Nixon is the Tea Party of today. They expressed their zeal in Republican primaries by nominating their candidates to run in the general elections, even when it tossing aside incumbents and party favorites. They elected Ted Cruz (Texas), Deb Fischer Nebraska), Mike Lee (Utah), Marco Rubio (Florida) and Rand Paul (Kentucky) to the Senate in 2010 and 2012 as well as Ted Scott to a House seat in South Carolina and Nikki Haley to South Carolina’s governorship. Congressman Tim Scott was subsequently elected to the Senate. The mostly White middle class Tea Partiers voted on the basis of expressed beliefs – not religion, race, ethnicity or sex. They also though did not vote based on electability. They nominated some real losers, who cost Republicans 4-5 Senate seats in the general elections: Todd Akins in Missouri, Sharron Angle in Nevada, Ken Buck in Colorado (He subsequently won a House seat in 2014), Christine O’Donnell in Delaware, and Richard Murdock in Indiana. Todd Akins and Richard Murdock uttered absurd statements about rape and abortion, insulting the intelligence of voters, especially women. Sharron Angle and Ken Buck had anti-Hispanic/illegal immigration rhetoric that doomed their campaigns. Sharron Angle was also accused of being tight (my phrase) with Scientology. Christine O’Donnell’s most famous campaign statement was “I’m not a witch.” Donald Trump’s extreme rhetoric wins favor with some of the ardent Tea Partiers. They want a candidate who calls it like it is rather than the double-talk common for many politicians. They like his outspokenness and directness. They like that he speaks truth to power. They are smitten with him. They are in the early stage of infatuation. He is the greatest. He can neither say nor do anything wrong. They believe they see in Donald trump the boisterous, ferocious fighter for America. They fail to realize they are witnessing a narcissistic bully. They also support Senator Ted Cruz as the backup. He too speaks truth to power. Another Newt Gingrich or Dick Armey is what they want. Donald Trump is not that person. He will be totally unable to govern. He is though a symptom of their discontent. Until a more electable candidate arises! If Donald Trump cannot handle the fair questions asked by Megyn Kelly, how will he respond in the general election to the ensuing down and dirty campaign? The vast American populace is repulsed by him. The Democrats and media love it. They see in Donald Trump the worse caricature of Republicans. Most Tea Party members now understand that they cannot prevail with a split government. Even control of Congress with the power of the purse is limited. Deep down, they know Donald Trump cannot win the Presidency and could well drag the Congressional Republicans down with him. Most of the Tea party will not go down with Donald Trump

Sunday, August 9, 2015

Will Colorado and New Mexico Sue the EPA for Violations of the Clean Water Act?

The EPA unleashed an estimated 1 million gallons of polluted water into the Cement Creek 30 miles north of Silverton, Colorado. The Cement Creek flows into the Animus River through Durango and Silverton. The Animus has been seen by millions of Americans as a backdrop to scenes in Butch Cassidy and the Sundance Kid. The Animus is currently a leisurely 5 miles an hour flowing 126 mile bright orange, almost neon orange, river as the toxins head into the San Juan River. The orange-ish river has crossed into New Mexico on its way through Utah, ultimately settling in Lake Powell on the Colorado River. The River, chameleon like, has transformed from azure blue to orange to mustard colored and now brown as it enters New Mexico. The EPA says it can do nothing to clean the water. Natural dissipation should evaporate most of the contaminated waters with the heavy metals settling at the bottom of Lake Powell. EPA knows the wastewaters contain aluminum, arsenic, cadmium, calcium, copper, and lead. It’s a toxic mixture, but EPA says it either does not yet know the severity or doesn’t want us to know as it “studies” the River’s toxicity. If this were a spill by a corporation, EPA would demand the contaminants be removed and would impose substantial fines, and perhaps criminal prosecutions. The Obama Administration, led by the President and EPA’s Administrator would be publicly excoriating the greedy, reckless corporate malefactor. The EPA said “It was trying to protect the environment.” Private attorneys would be racing into court, filing class action suits on a multitude of claims. If this were an EPA disaster during the Bush Administration, either Bush Administration, the critics would be out in droves complaining of the incompetence of Bush and the budget cutting of the EPA. The media, to its credit, has brightly covered the story, but is not calling out for heads to roll. The Sounds of Silence are coming out of Washington on the environmental disaster. They cannot believe the EPA could muck up, just like the VA and IRS. Always remember the classic line “I’m from the government and I’m here to help you.” Dave Ostrander, regional EPA Director for Emergency management, said: ”This is a huge tragedy. It’s hard being on the other side of this. We explicitly respond to emergencies. We don’t cause them.” The EPA has been short on information, but an early statement would be unacceptable to the EPA if made by a private polluter: the impact on wildlife and the environment will probably be “minimal” because of the “longstanding” low water quality. This statement is especially insulting to the residents of Durango, often referred to as “River City” because of the widespread recreational uses of the river for fishing, swimming, kayaking, rafting, and tubing. Dozens of recreational workers are temporarily unemployed. EPA did not immediately notify New Mexico of the spill. The state learned of the disaster from an official of the Southern Ute Tribe. A press spokesman for New Mexico Governor Susana Martinez said: “The Governor is disturbed by the lack of information provided by the EPA to our environmental agencies in New Mexico and strongly believes the people in or communities downstream deserve to have all the information about this situation.” The EPA was investigating acid leakage from the abandoned Gold King Mine, last mined in 1923. The Rockies contain a large number of abandoned mineral mines in operation when environmental protection was unknown. Many are a toxic time bomb. An EPA supervised clean up crew, using a heavy digging machine, punched through the dam holding back the waters in the abandoned mine. EPA explained the waters were “held behind unconsolidated debris near an abandoned mine portal.” Translated, the EPA is saying a tailings dam held back the mine’s contaminated waters. These unengineered, slapstick retaining structures have given rise to some of the great environmental disasters . They require delicate care. Instead, a heavy digging machine punched through, unleashing a torrent of toxic waters. New Mexico expects compensation. The accident will be studied. The ultimate cause will be found to be human error, or a series of human errors. These are always the root causes of non-natural disasters. Government is just as likely to screw up as the private sectors because individuals make the decisions. We punish the private sector in environmental disasters of this magnitude. One cannot expect the Obama Administration to punish the EPA anymore than it has the VA, ATF, or IRS. The EPA is the Crown Jewel of the Obama Administration in its War Against Coal. The question therefore is what will Colorado and New Mexico do? Will they bring action against the EPA? How about criminal prosecutions against the responsible individuals?

Friday, August 7, 2015

The Winners of the Two Republican Debates Are

Drumroll please. The winners of yesterday’s debates are: Carly Fiorina Megyn Kelly The American People The GOP Fox News 24 million Americans on Fox watched the highest viewed cable program of all time. Another 6.1 million viewed the undercard. They learned that all but one of the Republican candidates is highly credible. Americans saw the future, not the past. Carly Fiorina showed she should have been on the mainstage. She acquired the “gravitas” that establishes her as a major candidate. She is the most likely to break out of the undercard as Americans give her a second look. She has substantially performed better than, and learnt from, her failing California Senate race three years ago. She is the only candidate who has consistently run against Hillary Clinton rather than President Obama. Senators Rubio and Cruz performed well, as did Governors Christy and Kasich, and Dr. Ben Carson. The Underperformers Governors Bush, Walker and Huckabee. Governor Bush still has the most money, but he continues to underperform as a candidate. The Did-Not-Help-Himself Senator Paul, whose views on national security do not resonate well with Republican voters. The Big Loser The Donald was the irrepressible Donald to a hard core of supporters, but the majority of Americans saw him as the egotistical buffoon that he is. The oft-bankrupt Donald Trump can talk the talk, or more accurately scream the scream, but the thin skinned pompous Trump will be unable to walk the walk. Any doubts about the Donald should be resolved by his post-debate tweets. The reality show star will face reality one of these days. If voters want a non-traditional candidate, then they can choose from Dr. Ben Carson and Carly Fiorina. If voters want brashness, then they have the in-your-face Governor Christy, a proven success in a blue state with a Democratic legislature. If voters want a compelling life story, then they can choose between Senator Rubio and Dr. Carson. If they want the Lone Ranger, then Senator Ted Cruz fits the bill. If voters want compassionate conservatives, they can choose from Governors Bush, Huckabee, and Kasich. If the want a union buster, Governor Walker is the one. The Biggest Loser Hillary Clinton She took a selfie with Kim Kardashian and Kayne West and then with Kris Jenner.