Book Summary – Real Change by Newt Gingrich

 
Real Change: From a World that Fails to a World that Works
      by Newt Gingrich (former Speaker of the House)
  

Theme: activist citizenry must rise up to make government work … it won’t happen on its own due to entrenched (unionized) bureaucracies and power-hungry partisan political parties. 

Factoids & Interesting Points: 

  • It’s insane to the same thing and expect a different result (credit to Albert Einstein) 
  • Easier to be in the minority – just complain and object. 
    Majority must lead — come up with big ideas and implement them
     
  • Politicians are much better at campaigning than governing
  • Republican strategy: narrow partisan target. negative messaging, voter turnout … only works for a few campaign cycles … shrill messages eventually lose their edge and effectiveness … people can’t stay angry long enough 
  •  Democratic strategy: pander to small, specific activist segments, e.g. unions, environmentalists, who can only “win” with gov’t control and ultimately resist change to the status quo … leverage the money & visibility of the elites ( media, show biz, uber-rich) …problem: promises never materialize, mostly due to cost and ineffective government bureaucracies (waste & fraud)
  • More African-American males in prison than in college … for some, prison brings street cred … many inner-city entrepreneurs – they just operate outside the law 
  • In NYC, vice cops worked 9 am to 5 pm … drug dealers worked 9 pm to 5 am … since dealers wouldn’t change their work schedules, Rudy made the cops change their schedules
  • High school “on time” graduation rate less than 50% in Cleveland, LA, Miami, Dallas, Denver … 40% in NYC  … Baltimore lowest @ 38.5%
  • France does some things right: high speed rail, 80% nuclear powered electricity … and some things wrong: minimum work for maximum pay mindset
  • Over half of Americans own stock … over 8 million paid capital gains taxes in 2006
  • Social security tax rate = 12.4% (ouch) … split between employee and employer … currently capped at about $100k … Obama’s “tax & redistribute” plan: 12.4% from zero to $100k, and over $250k

Newt on Leadership (credit to Peter Drucker)

Values > Vision > Metrics > Strategies > Projects > Tasks

First, win agreement … then win the vote
Win agreement by saying “yes, if…” rather than “no, because …”

Reward the efforts & success of “contributors” … don’t penalize it 

Newt’s formula for change

Homeland security – the highest priority

English –  the official language … preserve American history & culture·        

Free market education: charter schools and vouchers … maybe even paying students for good grades
  
“Free choice” flat tax (17%) … eliminate taxes on capital gains, dividends, pensions & social security, and death … allow choice to continue deductions system
   
Immigration: close the borders, guest worker program aggressive assimilation 
        
Trial lawyers, civil litigation: losers pay costs, class action limits
     
Direct ownership: homes, retirement accounts
        
Balanced budget: to force hard choices, eliminate earmarks & pork-barrel spending, cut future burden
        
Energy: drill here now, nuclear, incentives for renewables  

Heath care: more personal ‘choose and pay’ (vs 3rd party – insurers and gov’t) electronic records (e-prescriptions), personal responsibility – prevention, restrictions on trial lawyers 

Ken’s Take: Quick read … not much new, insightful, provocative
                             … borrow it, don’t buy it.

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