HOWARD Hays As I See It
LEFT TURN / RIGHT TURN & MoreMountain Views-News Saturday, March 22, 2014
8HOWARD Hays As I See It
LEFT TURN / RIGHT TURN & MoreMountain Views-News Saturday, March 22, 2014
8
Mountain
Views
News
PUBLISHER/ EDITOR
Susan Henderson
CITY EDITOR
Dean Lee
EAST VALLEY EDITOR
Joan Schmidt
BUSINESS EDITOR
LaQuetta Shamblee
SENIOR COMMUNITY
EDITOR
Pat Birdsall
SALES
Patricia Colonello
626-355-2737
626-818-2698
WEBMASTER
John Aveny
CONTRIBUTORS
Chris Leclerc
Bob Eklund
Howard HaysPaul CarpenterStuart Tolchin
Kim Clymer-KelleyChristopher NyergesPeter Dills
Hail Hamilton
Rich Johnson
Merri Jill Finstrom
Lori KoopRev. James SnyderTina Paul
Mary CarneyKatie HopkinsDeanne Davis
Despina ArouzmanGreg WelbornRenee Quenell
Ben Show
Sean KaydenMarc Garlett
Mountain Views News
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“What does labor want?
We want more schoolhouses
and less jails; more books
and less arsenals; more
learning and less vice;
more leisure and less
greed; more justice and less
revenge; in fact, more of the
opportunities to cultivateour better natures.”
- Samuel Gompers, 1915
Years ago, when I realized the rent still had
to be paid while waiting for my break as an
opinion columnist, I took a public-sector job
that seemed an attractive prospect. For “fulltime”
employees there were good health and
retirement benefits, vacation and sick days,
regular pay increases, etc. All it took to move
from “casual” to “full-time” status was to stay
on the job for a year.
Several months into the job, I learned of
another employment rule. When approaching
the one-year hiring anniversary, employees
were required to take a “break in service”;
for one day they were removed from payroll,
and the next day put back on as if a new hire.
Employees would thus be kept on “casual”
status for years on end, with none of the
benefits of a “full-time” employee.
Fortunately, we were represented by a union
– and our union stepped in and helped put an
end to that practice.
Years later, I worked for a manufacturing
company whose biggest customer was one
of the nation’s large retail chains. After
becoming familiar with folks in the stores, I
noticed many of their titles were changing;
“Department Heads” became “Department
Supervisors”, “Inventory Managers” were now
“Inventory Controllers”. Employees would be
re-started in “new” positions (doing basically
the same jobs), with the revocation of whatever
seniority, pay level and benefits they’d earned
in their old ones. These employees didn’t have
union protection, so if they wanted to keep
their jobs, they pretty much had to take it.
Especially with a declining percentage
of Americans with union representation,
employers feel more entitled to circumvent
whatever worker protection rules there are – if
not outright ignore them. And, they’ll have
highly-paid front men at the U.S. Chamber of
Commerce and American Enterprise Institute
to concoct talking points to feed media shills
and purchased Members of Congress.
Their latest comes with President Obama’s
effort to stem the abuse of overtime rules,
and the charge, repeated by Greg Welborn in
his column last week, that this would “stifle
upward mobility”. Thanks to the redistribution
of the nation’s wealth to that upper 1% and
concurrent decimation of the middle class,
it’s already been stifled. Prospects for upward
mobility here are lower than in most European
countries.
The president directed the Labor Department
to reevaluate overtime regulations, as
employers now are increasingly avoiding
compliance by simply putting workers on
salary with a new job title – getting more work
for less pay, with more funds available for
shareholder dividends and executive bonuses,
rather than investments in their companies
and workforce.
The L.A. Times cites an Economic Policy
Institute spokesman pointing out that a
window washer spending 95% of his time
washing windows, and another 5% overseeing
a couple other window washers, could be
reclassified as an “administrator” – and thus
ineligible for overtime.
One thing to be considered is the salary
level, set some time ago, below which
overtime is mandatory – currently $455 a
week, sub-poverty-level for a family of four.
Betsey Stevenson of the White House Council
of Economic Advisors notes that if that level
were simply adjusted for inflation, 3.1 million
Americans would qualify for overtime. As it is
now, someone making less than $25,000 a year
can be forced to put in 60-hour weeks with no
additional pay – as long as they’re given an
impressive job title.
We’ve been hearing the same “job-killer”
arguments in regards to raising the minimum
wage. They were heard fifteen years ago in the
State of Washington, when voters approved
increasing theirs and tying it to inflation so
that now, at $9.32 an hour, it’s the highest
in the nation. Job creation in Washington
(0.8%) now beats the national average (0.5%).
Payrolls in Washington’s restaurants and bars,
businesses highly affected by labor costs, have
expanded by 21%.
New Seattle Mayor Ed Murray hopes to
raise it locally to $15 an hour. As he put it,
“We can’t rebuild this economy if it’s just
people who buy 94-foot yachts and play in
the derivatives. You build an economy when
a middle class is buying microwaves or flat-
screen TVs or the next set of clothes for their
kids.”
Last November, New Jersey’s voters hiked
their minimum wage a buck to $8.25 an hour,
with future increases tied to the Consumer
Price Index. In January, the month the law
took effect, employers added over eight
thousand jobs – the fastest rate of job growth
in New Jersey in over a year.
The CBO figures President Obama’s
proposal to raise the federal minimum wage to
$10.10 an hour over time in three steps would
cost 500,000 jobs, a 0.3% cut in employment.
At the same time, though, 900,000 Americans
would be lifted out of poverty, and the $31
billion gained by low-wage workers would
be pumped back into the economy, not
sequestered in some offshore tax shelter.
It’s also reported that this minimum wage
hike would cut food stamp costs by 6%, saving
us $4.6 billion a year.
Bloomberg reports that last year U.S.
corporations parked over $200 billion in
profits overseas, bringing the total close to $2
trillion outside the reach of the IRS. The group
Good Jobs First finds that, over the past twenty
years, state and local governments have doled
out $63 billion to Fortune 500 companies (not
small start-ups and entrepreneurs). The Koch
Brothers alone have taken in $88 million in
corporate welfare.
These are the folks spending millions to
keep the poor from getting healthcare, to cut
food stamps and unemployment insurance, to
avoid paying decent wages that would allow
more Americans “opportunities to cultivate
our better natures” – something that can’t be
achieved by simply handing out an impressive
new job title.
PUTIN TAKES GREG Welborn
CENTER STAGE
Business Trends
FAMILY MATTERS By Marc Garlett
ANOTHER ACTOR’S ESTATE PLAN SCREWED
UP BY HIS LAWYER
Oscar-winning actor Philip Seymour Hoffman’s will was recently filed for probate and
provides a cautionary tale for all of us when it comes to estate planning mistakes.
Here are four things Hoffman’s lawyer could – and should – have done differently to
correct them:
Create a Revocable Living Trust. Hoffman was a public figure who valued his privacy. Yet
by creating a will instead of a revocable living trust, he let the world in on his private life.
We now all know that his son will inherit everything at age 30 and we’ll also know the
total size of his estate when it’s inventoried and filed with the Court, as it must be. A will
is public record, so every detail is available to anyone interested enough to look it up. A
revocable living trust would have allowed Hoffman to keep his private wishes private and
his son’s inheritance his son’s business, instead of everybody else’s.
Update your plan. Hoffman created his will in 2004 but never updated it, so his two
youngest daughters are not mentioned or provided for in the will. His estate has been
valued at $35 million, and his executor is his long-time companion who is also the mother
of their three children. After born children are provided for by law, but Hoffman lost out
on the opportunity to specifically direct their interests.
Cover your assets. While Hoffman did create a trust for his son Cooper, naming
Cooper’s mother as sole trustee, that trust will dissolve once Cooper turns 30. And all
assets distribute to Cooper outright at that time. Instead, Hoffman could have created
a Lifetime Asset Protection Trust that would have kept Cooper’s inheritance safe from
divorce, creditors, lawsuits and bankruptcy forever PLUS provided incentives to Cooper
to grow the assets of the trust rather than squander them.
Use tax-saving strategies in your estate plan. Since Hoffman was not married to his
long-time companion, there will be a monster sized estate tax bill to pay, both state and
federal. The use of other tax-advantaged estate planning strategies like an Irrevocable Life
Insurance Trust (ILIT) would have preserved assets and resulted in much more money
going to Hoffman’s family and much less to the US Government.
To put the proper protections in place for your family, contact our office to schedule a
time for us to sit down and talk. Because this planning is so important, I’ve made space
for the next two people who mention this article to have a complete planning session at
no charge. Call 626.355.4000 today and mention this article, or visit www.GarlettLaw.com
for more information.
SIERRA MADRE FARMERS
MARKET
The Sierra Madre Farmer’s Market hours have changed
to 3:00pm through 7:00pm every Wednesday. Vendors include
Dry Dock which has fresh and wild caught fish, Rustic
Loaf with artisan breads, Cutie Pie with fresh pies and much
more!
For those interested in being a vendor contact Melissa
Farwell with Raw Inspirations at 818-591-8161 ext. 806.
There are many who believe that
recent events in the Ukraine and
elsewhere in the world have damaged
President Obama’s stature and
credibility. While there is much truth
in those observations, we should pay
closer attention to who has risen to
replace Obama as the world’s most
important political leader. The
significance of Obama’s humiliation
here pales in comparison to the effect
Putin’s ascendency will have on the
world order.
First, there are the obvious affects
which stem from a weak American
President and weak America.
Members of Obama’s inner circle have
mockingly accused Putin of being
too “19th Century” assuming that he
and every other rogue in the world
see that as a slur. The Putins, Bin
Ladens, Assads, Khomenis and Kims
of the world see it as a compliment.
The rhythm of history has very
consistently been one of the powerful
and determined taking what they
want from the weak and complacent.
The relative peace and calm of the post
WWII era was a break with that longer
historical reality because America
remained strong and enforced a civil
world order.
America is now irrelevant in terms
of enforcing any measure of civility or
minimal morality upon the world’s
thugs. There have been absolutely
no meaningful consequences to the
annexation of Crimea, the gassing
of innocent Syrian children or the
pursuit of an Iranian atomic bomb.
Expect such actions to multiply. Any
despot who covets any territory lying
adjacent to his existing border will
simply take what he pleases, which
of course is very 19th Century, but it
is also very profitable. There will be
more instability, not less; more deathand destruction, not less.
But this is only the beginning.
The worst outcome from Putin’s
ascendency and dominance on
the world stage will be nuclear
proliferation. This is somewhat
ironic given President Obama’s stated
desire to reduce the presence of
nuclear weapons, but it is nonetheless
predictable. It is the primary lesson to
be drawn from Crimea’s annexation.
Few people realize that when the old
Soviet Union broke apart, a significant
portion of their nuclear weapons
were stationed in the Ukraine. Since
the Ukraine became an independent
country, it had the right to keep those
weapons residing in its territory.
This was not in the
world’s or Russia’s
interests, and so the
new Russia struck a
deal with Ukraine:
voluntarily give
up your nukes and
Russia will promise not to violate
Ukrainian sovereignty or territory.
Not entirely trusting Russian integrity,
the Ukrainians asked that the United
States and Britain add their assurances
in what became the 1994 Budapest
Memorandum. The deal called on us
and the Brits to provide the muscle
necessary to keep the Ruskies honest.
The only problem with this is that
nothing kept us or the Brits honest.
Neither country has even broken a
sweat in trying to defend Ukrainian
territory. The question becomes – and
it’s being asked by every other small
vulnerable government on this planet
– what would Russia have done had
the Ukraine still possessed nuclear
weapons? Does anyone believe that
Russia would have risked a nuclear
confrontation in order to take the
Crimean peninsula? The obvious
answer is no. And therein lies the real
danger.
Japan and South Korea are surely
considering the benefit of replacing
their reliance on U.S. resolve and
promises with reliance on a couple of
nuclear missiles that could be hurled at
any attacker. The same goes for Egypt,
given the threat posed by a nuclear
Iran, and for a host of other countries
still nursing historical grievances with
their neighbors.
The deterrent affect offered by nuclear
weapons is a strong one, and it’s only
natural that it now be considered in
a more positive light. The calculus of
the world order has changed. The U.S.
is no longer a reliable defense partner
or keeper of the peace. It is every man
– or country –for itself.
Once again, a man who campaigned
so affectively on the benefits of
fundamental change, to the cheers
of a worldwide audience, has now
been forced off that stage and leaves
it different than anyone would have
guessed and certainly worse than
anyone would have wanted.
About the author: Gregory J.
Welborn is a freelance writer and has
spoken to several civic and religious
organizations on cultural and moral
issues. He lives in the Los Angeles
area with his wife and 3 children and
is active in the community. He can be
reached gregwelborn2@gmail.com
IT ALL ADDS UP
As you search and tour homes that appeal to you, how can you be sure that
the asking prices are in line with current values? Begin by asking your
real estate agent to collect comparables and prepare a Comparative Market
Analysis (CMA). This report indicates market trends by showing whether
similar homes in the area are selling for above or below the asking price of
the home(s) you've selected.
Using the comparables that your agent researched, you'll be able to figure
the average cost per square foot for the area, and determine if the home
you want compares favorably with those figures. Total the square footage
of several homes and divide by the number of homes to get an average.
Total the "sold" prices of each home and divide by the number of homes to
get an average selling price.
Now, divide that average selling price by the average square footage to produce
the average price per square foot for homes in the area. When you
multiply that average price per square foot by the square footage of the
home you want, you'll discover how your choice compares, and then you'll
know if you're looking at a fair price.
Other factors like the seller's motivation or urgency may also affect your
offer, so talk to your agent about that CMA and take the next step!
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