| The importance of American real estate values is | | | | of quality job creation, as a necessity to |
| now being witnessed as major banks around the | | | | maintaining strong consumer spending, in the |
| world have joined the U.S Federal Reserve to | | | | Supply Side equation. Add to this their past and |
| pump cash into our banking system in hopes of | | | | current tax proposals to provide billions more in |
| preventing a worldwide economic catastrophe. | | | | tax benefits to Big Oil and Pharmaceuticals while |
| Wall Street's cave-in has resulted from declining | | | | proposing little relief for the middle class. Another |
| real estate values precipitated by our foreclosure | | | | good example is the fact the Republican Party |
| crisis. | | | | has no plan for national health insurance except to |
| John McCain, in televised comments on CNN | | | | offer more choices beyond employer-based |
| September 19th placed the blame for the financial | | | | health insurance coverage. Under McCain's health |
| crisis squarely on the backs of the poor and | | | | insurance proposal families not receiving |
| minorities by claiming that Fanniemae and | | | | employer-based coverage will receive a direct |
| Freddymac, the quasi-governmental mortgage | | | | refundable tax credit - effectively cash - of |
| giants, are to blame for approving sub-prime | | | | $2,500 for individuals and $5,000 for families to |
| mortgages to people that couldn't afford them in | | | | offset the cost of insurance. With Michigan families |
| areas that were formerly red-lined. This is a thinly | | | | averaging $1600 per month for private insurance |
| veiled reference to the mandate given by | | | | coverage (not through an employer) and health |
| Congress to Fanniemae and Freddymac to | | | | insurance premiums rising 4 times faster than |
| increase the opportunities for home ownership in | | | | wages, over the past 6 years, McCain's offer of |
| minority communities. African-American and | | | | $5,000 a year is grossly inadequate. Source: |
| Hispanic borrowers are represented in the | | | | National Coalition on Health Care. Catlin, A, C. |
| subprime market at nearly triple their rates in the | | | | Cowan, S. Heffler, et al, "National Health Spending |
| conventional market. Never mind that 61% of | | | | in 2005." Health Affairs 26:1 (2006). |
| subprime borrowers would have qualified for | | | | In contrast, the Democratic Party has proposed a |
| conventional loans or, according to Freddymac, | | | | health insurance plan that will provide affordable |
| minorities and the poor pay mortgage rates on | | | | premiums, co-pays and deductibles with |
| the order of one to two-and-one-half percentage | | | | guaranteed eligibility. No American will be turned |
| points higher in the subprime market. | | | | away from any insurance plan because of illness |
| The Wall Street Journal did a study confirming | | | | or pre-existing conditions. Financial subsidies will be |
| what experts like Martin Eakes at the Center for | | | | provided to individuals and families who do not |
| Responsible Lending has been saying for so long - | | | | qualify for Medicaid or need financial assistance. |
| a majority of subprime borrowers had credit | | | | These families will receive an income-related |
| scores worthy of a prime conventional mortgage. | | | | federal subsidy to buy into the new public health |
| By the end of last year that percentage rose to | | | | insurance plan or purchase a private health care |
| over 61 percent. According to their study many | | | | plan. This proposal goes much further toward |
| subprime borrowers may have been tricked into | | | | helping the middle class because the reason |
| unaffordable loans by unscrupulous brokers. | | | | millions of Americans lack health insurance is cost, |
| Real estate appraisal methodology has long failed | | | | not availability. Source: National Coalition on Health |
| to adjust for racial discrimination, selective bias, | | | | Care. Catlin, A, C. Cowan, S. Heffler, et al, |
| and since George W. bush has been in office his | | | | "National Health Spending in 2005." Health Affairs |
| administrations version of Supply Side economics. | | | | 26:1 (2006). |
| Does, "The human condition" explain why current | | | | Additionally, employers that do not offer or make |
| real estate appraisal methodology fails to | | | | a meaningful contribution to the cost of quality |
| recognize and adjust for the lower values caused | | | | health coverage for their employees will be |
| by the effects of Selective Bias, Supply Side | | | | required to contribute a percentage of payrolls |
| economics and racial discrimination on the appraisal | | | | toward the costs of the national plan. Small |
| process? Can lower appraisals, for properties in | | | | businesses will be exempt from this requirement, |
| minority communities, primarily be attributed to | | | | and will receive a new Small Business Health Tax |
| these factors and, if so, can the loss be | | | | Credit that will help to reduce their health care |
| measured in real dollars? Is the failure of | | | | costs.In 2007, employer health insurance |
| appraisers to adjust for these factors responsible | | | | premiums increased by 6.1 percent - two times |
| for the slow or non-existent growth of real | | | | the rate of inflation. The annual premium for an |
| estate equity in these communities? Was this | | | | employer health plan covering a family of four |
| failure a contributing factor in the | | | | averaged nearly $12,100. The annual premium for |
| misrepresentation of value in Wall Street's | | | | single coverage averaged over $4,400.These |
| mortgage backed securities and therefore shares | | | | costs are expected to rise at similar levels for the |
| blame for the recent meltdown? | | | | next decade. Source: National Coalition on Health |
| The phrase, "The Human Condition" is well worn | | | | Care. Catlin, A, C. Cowan, S. Heffler, et al, |
| and refers to the ages old conflict of accepted | | | | "National Health Spending in 2005." Health Affairs |
| ideals like cooperation, loving and selfless behaviors | | | | 26:1 (2006). |
| contrasted with human nature which is invariably | | | | The Republican Party has been successful in |
| competitive, aggressive and selfish. We are | | | | defeating the Democratic Party, in the past, by |
| capable of immense love and sensitivity, but we | | | | labeling them as the tax and spend Party. |
| have also been capable of greed, hatred, brutality, | | | | However, under the current Democratic tax |
| rape, murder, slavery and war. The human race | | | | proposal only those with annual incomes over |
| demonstrates a collective sense of guilt and | | | | $250,000 will experience a tax increase. They will |
| agony from being unable to explain our duel | | | | pay at the same rate they paid during the Clinton |
| personality. This has been seen by many scholars | | | | Presidency of the 1990's, a period of economic |
| as the burden of human life or, "The human | | | | prosperity for most Americans. |
| condition." | | | | Based on the Republican Party's current version |
| A great deal of what we believe is true depends | | | | of Supply Side economics, from a purely |
| on our perceptions; the first part of my analysis | | | | self-interest standpoint, no one earning under |
| begins with a brief examination of the economic | | | | $250,000 a year should be voting Republican in |
| theories which currently dominate our national | | | | the coming election. According to the U.S Census |
| political debate. I will later contrast the dominate | | | | Bureau 2006 Economic Survey Income Data |
| theory espoused and implemented by our current | | | | Report only 19.26% of American households had |
| President and his Party with those of his political | | | | incomes exceeding $100,000. That means over |
| rivals. In part two of the analysis the role of racial | | | | 80% of American families earn less than $100,000 |
| discrimination, selective bias and Supply Side | | | | annually. The Census Bureau survey was |
| Economic Theory as primary reasons for lower | | | | completed in 2006 and overall incomes have |
| real estate appraisals in African American | | | | declined since then. According to the Treasury |
| communities is discussed. In part three, I will | | | | Department and Congress' Joint Committee on |
| attempt to measure the economic loss to the | | | | Taxation, joint returns with more than $250,000 |
| minority community specifically and to the larger | | | | adjusted gross income and single returns with |
| society generally, which suffers a far greater loss | | | | more than $125,000 adjusted gross income |
| in societal peace, wasted talent and loss of | | | | together are estimated to make up only 3.1 |
| credibility around the globe. It is not surprising the | | | | percent of households in 2009. Let that sink in... |
| inability of American leaders to create a fair and | | | | More than eighty percent of American families |
| just society has dimmed the beacon of hope | | | | earn less than $100,000 a year and only 3.1 |
| among the economically disenfranchised people of | | | | percent of American families earn more than |
| the world. | | | | $250,000.This means that roughly 97% of |
| Since what we believe in affects our perception | | | | Americans are earning less than $250,000 and will |
| of reality this discussion begins with my (the | | | | receive a tax credit under the Democratic tax |
| author's) statement of why I believe in the | | | | proposal. |
| realities or truthfulness of the conclusions derived | | | | The spreading failure of our largest banks and |
| from this analysis. | | | | Wall Street brokerages suggests that the financial |
| My personal search for truth in answering the | | | | hardships of the middle class are trickling up to |
| question, "why current appraisal methodology fails | | | | the wealthiest Americans. The goose that laid the |
| to recognize and adjust for the effects of racial | | | | golden egg in America was its strong middle class |
| discrimination, Selective Bias and Supply Side | | | | not it's wealthy. The result of Republican Supply |
| Economics on the appraisal process" begins with a | | | | Side economics has not only destroyed our middle |
| brief examination of my beliefs, as an individual in | | | | class but eroded international confidence in the |
| American society, and the role culture and | | | | dollar. This is a fact that will make the road back |
| upbringing has played in helping to formulate those | | | | more difficult. |
| beliefs. | | | | Despite eight years of failed, Republican Party, |
| I have been a principle, either Senior Appraiser, | | | | Supply Side economics the Presidential election in |
| Chief Appraiser or owner operator in small real | | | | November is seen as a toss-up by most political |
| estate appraisal companies for the past 28 years. | | | | pundits. Why? What pre-conditioning convinces |
| I was born during the administration of Harry | | | | Americans to vote against their own economic |
| Truman a Democrat and a man my dad vilified | | | | self interest? For my father and grandfather it |
| for dropping the atomic bomb on the Japanese | | | | was their sense of being indebted to the |
| when, according to him, World War II was | | | | Republican Party for their freedom. But why |
| essentially, over. Truman was the author of the | | | | would Americans in the year 2008 vote against |
| famous, "Fair Deal" a 21 point program he | | | | their own economic self interest? Put simply, its |
| presented to Congress which expanded Social | | | | race. |
| Security, created a full-employment program, a | | | | I am aware that political observers with far more |
| permanent Fair Employment Practices Act, and | | | | experience and scholarly study will argue that race |
| provided for public housing and slum clearance. | | | | is not the overwhelming reason the contest for |
| Even though Truman's "Fair Deal" helped the poor, | | | | the White House is a dead heat. These pundits |
| we were poor as dirt, my father and grandfather | | | | and observers cite the fact that people have not |
| remained devout Republicans. | | | | warmed to Obama because he is unknown and |
| My grandfather was born a slave and my dad | | | | comes off as an elitist. Anyone who was editor |
| was born, in 1902, just 39 years after President | | | | of the Harvard Law Review has to be an elitist, |
| Lincoln signed the Emancipation Proclamation, | | | | right? Obama's detractors also point out that he |
| which freed slaves in the United States. Dad was | | | | lacks experience, that he is a Marxist, a Muslim |
| a sharecropper (a free slave) on the land of the | | | | and the most liberal member of Congress. Most |
| family who had owned his father when news of | | | | thoughtful, unbiased, voters don't believe any of |
| Henry Ford's promise of equal pay for equal work | | | | these statements is true or can be given greater |
| came to him; he made the decision to move to | | | | weight than his plan or Platform for America, |
| Detroit. | | | | obvious superior intellect, strong family values and |
| Through work in the automobile factories of the | | | | pragmatism. He seems to understand, that in the |
| northern United States my parents and many | | | | volatile markets of today, all options must remain |
| thousands of the descendant children of former | | | | open. |
| slaves were able to become homeowners, buy | | | | I was bred to be a Republican but when I ask |
| automobiles and send their children to college. | | | | myself do I want four more years of the same |
| Freedom meant everything to my dad and | | | | failed economic policies, the answer is a |
| grandfather and they felt indebted to the | | | | resounding "NO". How could I vote for someone |
| Republican Party for the rest of their lives. When | | | | who offers more of the same economic and |
| I asked my father, during the 1961 Presidential | | | | foreign policies that have brought us to this place |
| campaign, why he favored Nixon over Kennedy, | | | | in our history? |
| his response was, "the Republican Party is the | | | | People do not knowingly choose to sow the |
| Party of Lincoln." The example of my father and | | | | seeds of their own destruction. Unless they are |
| grandfather partially explains why I've only voted | | | | among the 3.1% of Americans who earn more |
| for one Democrat in my entire voting life. My | | | | than $250,000 a year, there must be another |
| parental examples are only a partial reason since | | | | agenda that is more important to them. |
| the political beliefs I hold now have been | | | | Since many of the polls, as of September 16th, |
| formulated by my perception of the larger culture | | | | had McCain with a lead, or the mathematical |
| and my lifelong role as a small business owner. | | | | equivalent of a dead heat, most of his supporters, |
| In 1981 Ronald Regan began his presidency. He | | | | from a numerical standpoint, have to be |
| ushered in the," Reagan Revolution", which aimed | | | | Americans who earn less than $250,000 a year. |
| to reinvigorate the American people and reduce | | | | This means that people who over the last eight |
| their reliance upon Government. "Reagan was able | | | | years have lost all of their economic security, as |
| to push through legislation to stimulate economic | | | | a result of McCain backed economic policies, (he |
| growth, curb inflation, increase employment, and | | | | voted with Bush 90% of the time), are supporting |
| strengthen national defense. He cut taxes and | | | | a continuation of those policies. Many Americans |
| Government expenditures, refusing to deviate | | | | revealed during primary exit polling they could not |
| from it when the strengthening of defense forces | | | | vote for Obama, a man of color, regardless of his |
| led to a large deficit. In 1986 Reagan obtained an | | | | apparent intellect, moral integrity and ability to |
| overhaul of the income tax code, which eliminated | | | | lead. "About one in seven Pennsylvania voters said |
| many deductions and exempted millions of people | | | | race was an issue and that group voted |
| with low incomes. At the end of his administration, | | | | overwhelmingly against Obama." (David Wiessler, |
| the Nation was enjoying its longest recorded | | | | reuters.com) Based on Census voter registration |
| period of peacetime prosperity without recession | | | | figures the one in seven extrapolation, if applied to |
| or depression.Overall, the Reagan years saw a | | | | the electorate as a whole, could translate to more |
| restoration of prosperity, and the goal of peace | | | | than seventeen million votes. In a tight election |
| through strength seemed to be within America's | | | | that would ensure four more years of the same |
| grasp." (whitehouse.gov) | | | | or similar policies that now define America's |
| Unfortunately, many in the Republican Party | | | | national economic landscape. |
| ascribed Regan's success to "Supply Side" or | | | | Based on my analysis of this election cycle and |
| "trickle down" economics. This economic theory is | | | | the clear choices presented to Americans it |
| based on the belief that reducing tax rates, | | | | appears the Republican lead in the polls is a prime |
| especially for businesses and wealthy individuals, | | | | example of, "The human condition." The possibility |
| stimulates savings and investment for the benefit | | | | that millions of American voters will choose to |
| of everyone. Supply Side economics only works if | | | | allow a continuation of policies that have robbed |
| you have an economically strong middle class, | | | | them of their homes, savings, jobs and the ability |
| because consumer spending by a healthy middle | | | | to provide a college education for their children as |
| class is, undeniably, the engine that drives our | | | | a result of hatred, fear and distrust of a worthy |
| economy. Regan understood this fact as his | | | | individual, because of his skin color, is numbing. |
| overhaul of the tax code reflects. | | | | Americans are demonstrating a collective sense |
| Supply Side economic theory is the direct | | | | of guilt and agony from being unable to explain |
| opposite of Keynesian Economic Theory, which | | | | the power of racial hatred and distrust in our |
| appears to be a basis for the Democratic Party's | | | | politics and in every aspect of our day to day |
| economic plan. Keynesian Economic theory, which | | | | lives. The resultant emotional anxiety has created |
| is named for economist John Maynard Keynes, | | | | a duel personality in our national identity at home |
| advocates government intervention, or | | | | and to the rest of the world. The racial divide in |
| demand-side management of the economy, to | | | | America has been seen by many scholars as the |
| achieve full employment and stable prices. ) | | | | burden of life in the United States or as discussed |
| The current economic platform of the Republican | | | | here, "The human condition. |
| Party failed because it did not adjust for the lack | | | | |