Quotulatiousness

April 7, 2015

Senator Moynihan

Filed under: Government, Politics, USA — Tags: , , , , , — Nicholas @ 05:00

In City Journal, Fred Siegel looks at some recent books about the late Democratic Senator Daniel Patrick Monihan:

Daniel Patrick Moynihan, the four-term senator from New York who died in 2003, was that rare soul who was both a political and intellectual giant. Stephen Hess, who worked in the early Nixon White House as an aide to Moynihan, was the rare individual friendly with both Moynihan and Richard Nixon. The Professor and the President is a short but revealing memoir-cum-narrative of Moynihan’s service in the executive branch.

What brought Nixon and Moynihan together was a tectonic shift of the political plates. Nixon won the presidency in 1968 thanks to the backlash against the riots that had ripped through America’s cities. What made Moynihan a Democrat of extraordinary insight, willing to serve a Republican president, were his reactions to those riots — and to the excesses and wrong turns of American liberalism.

Today, 50 years after its issuance, some liberals “bravely” acknowledge that 1965’s so-called Moynihan Report, in which the future senator warned about the dire future consequences of the collapse of the black family, was a fire bell in the night. But at the time, and for decades to come, Moynihan was branded as a racist by civil rights leaders, black activists, and run-of-the-mill liberals. “One began to sense,” Moynihan wrote, that “a price was to be paid even for such a mild dissent from conventional liberalism.”

His capacity for irony notwithstanding, Moynihan came close to a nervous breakdown and “emerged changed” from the experience. He came to feel “that American liberalism had created its own version of a politique du pire (i.e., the worse the better) … in which evidence had been displaced by ideology.” His fear that the empirically oriented liberalism of his youth was under assault from racial and cultural nihilists intensified after the 1967 riots that burned through Cleveland, Newark, and Detroit, where 43 died. “The summer of 1967,” Moynihan wrote at the time, “came in the aftermath of one of the most extraordinary periods of liberal legislation, liberal electoral victories and the liberal dominance of the media … that we have ever experienced. The period was, moreover, accompanied by the greatest economic expansion in human history. And to top it all, some of the worst violence occurred in Detroit, a city with one of the most liberal and successful administrations in the nation; a city in which the social and economic position of the Negro was generally agreed to be far and away the best in the nation.”

The Supply Curve

Filed under: Economics — Tags: , , — Nicholas @ 04:00

Published on 2 Jan 2015

In this video, we explore the relationship between price and quantity supplied. Why does the supply curve slope upward? The supply curve shows how much of a good suppliers are willing to supply at different prices. For instance, oil suppliers in Alaska and Saudi Arabia face different costs of extraction, affecting the price at which they are willing to supply oil.

Adult Wednesday Addams: The Apartment Hunt [S1, Ep 1]

Filed under: Humour, Media — Tags: — Nicholas @ 03:00

Regulating the US railroads

Filed under: Business, Government, History, Railways, USA — Tags: , , — Nicholas @ 02:00

At Slate Star Codex, Scott Alexander recently reviewed David Friedman’s latest revision to his 1973 book, The Machinery of Freedom (sometimes called The Machinery of Friedman by libertarian wags). Scott wasn’t totally sold on Friedman’s proposals, but he posted several highlights from the book, including this discussion of how the US government was persuaded to regulate the railroad industry and then the airlines:

One of the most effective arguments against unregulated laissez faire has been that it invariably leads to monopoly. As George Orwell put it, “The trouble with competitions is that somebody wins them.” It is thus argued that government must intervene to prevent the formation of monopolies or, once formed, to control them. This is the usual justification for antitrust laws and such regulatory agencies as the Interstate Commerce Commission and the Civil Aeronautics Board.

The best historical refutation of this thesis is in two books by socialist historian Gabriel Kolko: The Triumph of Conservatism and Railroads and Regulation. He argues that at the end of the last century businessmen believed the future was with bigness, with conglomerates and cartels, but were wrong. The organizations they formed to control markets and reduce costs were almost invariably failures, returning lower profits than their smaller competitors, unable to fix prices, and controlling a steadily shrinking share of the market.

The regulatory commissions supposedly were formed to restrain monopolistic businessmen. Actually, Kolko argues, they were formed at the request of unsuccessful monopolists to prevent the competition which had frustrated their efforts.

[…]

It was in 1884 that railroad men in large numbers realized the advantages to them of federal control; it took 34 years to get the government to set their rates for them. The airline industry was born in a period more friendly to regulation. In 1938 the Civil Aeronautics Board (CAB), initially called the Civil Aeronautics Administration, was formed. It was given the power to regulate airline fares, to allocate routes among airlines, and to control the entry of new firms into the airline business. From that day until the deregulation of the industry in the late 1970s, no new trunk line — no major, scheduled, interstate passenger carrier — was started.

The CAB had one limitation: it could only regulate interstate airlines. There was one major intrastate route in the country — between San Francisco and Los Angeles. Pacific Southwest Airlines, which operated on that route, had no interstate operations and was therefore not subject to CAB rate fixing. Prior to deregulation, the fare between San Francisco and Los Angeles on PSA was about half that of any comparable interstate trip anywhere in the country. That gives us a good measure of the effect of the CAB on prices; it maintained them at about twice their competitive level.

In this complicated world it is rare that a political argument can be proved with evidence readily accessible to everyone, but until deregulation the airline industry provided one such case. If you did not believe that the effect of government regulation of transportation was to drive prices up, you could call any reliable travel agent and ask whether all interstate airline fares were the same, how PSA’s fare between San Francisco and Los Angeles compared with the fare charged by the major airlines, and how that fare compared with the fare on other major intercity routes of comparable length. If you do not believe that the ICC and the CAB are on the side of the industries they regulate, figure out why they set minimum as well as maximum fares.

QotD: Top ten reasons not to be a rightist

Filed under: Politics, Quotations, USA — Tags: , , , , , , — Nicholas @ 01:00
  1. Pornography. The complete absence of evidence that exposure to sexually-explicit material is harmful to children or anyone else doesn’t stop conservatives from advocating massive censorship.
  2. Drugs. We found out that Prohibition was a bad idea back in the 1930s — all it did was create a huge and virulent criminal class, erode respect for the law, and corrupt our politics. Some people never learn.
  3. Creationism. I don’t know who I find more revolting, the drooling morons who actally believe creationism or the intelligent panderers who know better but provide them with political cover for their religious-fundamentalist agenda in return for votes.
  4. Abortion. The conservatives’ looney-toon religious need to believe that a fertilized gamete is morally equivalent to a human being has done the other half of making a reasoned debate on abortion nigh-impossible.
  5. Racism. I haven’t forgiven the Right for segregation, Jim Crow laws, and lynching blacks. And I never will.
  6. Sexism. Way too much conservative thought still reads like an apologia for keeping women barefoot, pregnant, and in the kitchen.
  7. Anti-science. Stem cells, therapeutic cloning — it doesn’t matter how many more diabetes, cancer and AIDS patients have to die to protect the anti-abortion movement’s ideological flanks. Knowledge — who needs it? Conservatives would try suppressing astronomy if the telescope had just been invented.
  8. Family values. Conservatives are so desperate to reassert the repressive `normalcy’ they think existed in Grand-dad’s time that they pretend we can undo the effects of the automobile, television, the Pill, and the Internet.
  9. Ronald Wilson Reagan. A B-movie actor who thought ketchup was a vegetable. His grip on reality was so dangerously weak that the Alzheimer’s made no perceptible difference. Conservatives worship him.
  10. Conservatives, by and large, are villains.

Eric S. Raymond, “Top Ten Reasons I’m Neither a Liberal Nor a Conservative”, Armed and Dangerous, 2004-09-19.

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