Quotulatiousness

October 19, 2014

Brace yourselves for Beer Store price hikes

Filed under: Business, Cancon, Government — Tags: , , , , — Nicholas Russon @ 12:38

In the Toronto Star, Rob Ferguson details the provincial government’s new-hatched plans to pry more money out of consumers (by way of the Beer Store monopoly):

Premier Kathleen Wynne says she won’t shrink from a battle with The Beer Store as her government thirsts for a bigger cut of sales despite brewers’ warnings it would mean higher prices for suds lovers.

The comments came Saturday as Wynne commented in detail for the first time on recommendations from a blue-ribbon panel on squeezing more money from publicly owned agencies and the distribution system for beer, wine and spirits.

“They’ve laid out some challenging ideas for us and I’m absolutely willing take those on,” Wynne said of the panel headed by TD Bank chair Ed Clark.

“Will it be easy, will it be a path that is without any challenges? No it won’t be but that’s not a problem from my perspective. That’s exactly why it needs to be taken on,” she added after a 22-minute speech to party members in this border city for a strategy session and victory party after winning a majority in the June 12 election.

Clark’s recommendations Friday were a timely distraction for Wynne with the legislature starting its fall session Monday and her Liberals under fire for a bailout of the mostly vacant MaRS office tower across from Queen’s Park, with taxpayers on the hook for hefty interest payments.

The government already taxes beer at 44%. I guess they think that’s too little.

October 5, 2014

Protest locations in Hong Kong

Filed under: China, Government, Politics — Tags: , , — Nicholas Russon @ 10:03

In The Atlantic, Bourree Lam looks at where the Hong Kong protests tend to be located:

Hong Kong’s “umbrella revolution” — an anticipated protest movement with unanticipated mass turnout — is currently spreading across an island slightly bigger than Manhattan.

The Occupy Central with Love and Peace (OCLP) campaign, whose main demands are the resignation of Chief Executive CY Leung and true democracy for Hong Kong, announced months ago that it planned to shut down Hong Kong’s Central District — the city’s financial hub, which also houses government offices (including the Legislative Council’s buildings and the chief executive’s residence) and a luxury-shopping strip featuring a city block-wide Louis Vuitton store (by night it’s where tourist and locals go drinking and clubbing, especially in the Lan Kwai Fong area). Beginning with British colonial rule in 1841, the district has gradually become the main artery of Hong Kong’s business and social life.

But the protest movement, of which the OCLP is now just one part, has expanded in the last few days to the districts of Admiralty, Causeway Bay, and Mongkok — some of the city’s most bustling commercial sectors. On Tuesday, the protests encompassed the areas of Tsim Sha Tsui and Wan Chai. And, in a twist on the ‘Occupy’ movement in the United States, the demonstrations haven’t been confined to public squares; they’ve also spread to intersections, forcing road closures. Protesters, for instance, are currently holding their positions on Connaught Road Central, a major six-lane throughway that connects four districts on the island.

[...]

Hong Kong protest locations, October 2014

Update: Zachary Keck is quite pessimistic on the chances for success.

As covered extensively in The Diplomat, tens of thousands of protesters have taken to the streets of Hong Kong demanding democratic reforms. Specifically, the protesters want free and fair elections and universal suffrage to select the city’s government, which Beijing promised as part of the condition for the U.K. handing back the city to mainland China.

Sadly, Occupy Central is doomed to fail. The Chinese government will not accept the protesters’ demands.

Beijing has already made it clear that it views free and fair elections in Hong Kong to be a threat to one-party rule in the country. At most, it will allow Hongkongers to select one of the candidates that it pre-approves. It has also deemed Occupy Central illegal. In other words, the Chinese Communist Party views the issue as one of its “core interests,” and it hasn’t stayed in power this long by compromising on issues that it views as threats to its survival.

[...]

The massive protests that have swept through Hong Kong in recent days have only made it more urgent that the CCP hold the line on the issue. The Party can ill afford an example of mass demonstrations forcing it to compromise on an issue deemed to be of core importance. Before the protests, it was possible the CCP might have assessed that free and fair elections in Hong Kong would not threaten one-Party rule on the mainland because of the “one country, two systems” mantra. However, the Party giving in on a core issue because of mass protests would, without question, set a dangerous precedent for the CCP’s grip on power in mainland China. It therefore will not be done.

This isn’t to say that a violent crackdown is coming. Indeed, as is almost always the case, the CCP will want the local government on the frontlines in handling the protesters, while Beijing directs things from behind the scenes. As Steve Hess has pointed out in The Diplomat, using local governments as scapegoats has long been an effective tool of the CCP. If it means the restoration of stability, that could very well mean the end of CY Leung’s career. It’s also possible some sort of “compromise” will be worked out that allows the protesters to claim some sort of victory without compromising the CCP’s ability to maintain a large degree of control over the chief executive of Hong Kong.

October 2, 2014

On national defence, don’t listen to Harper’s words – watch his actions

Filed under: Cancon, Government, Military — Tags: , , , — Nicholas Russon @ 09:28

At The 3Ds Blog, Jack Granatstein explains why the Canadian Forces are once again being starved of funding:

A few years ago I wrote that no government since that of Louis St Laurent in the 1950s had done more to improve the defence of Canada than Stephen Harper’s Conservatives. The St Laurent Liberals built up the armed forces to deal with the war in Korea and with the defence of North America and western Europe in the face of Soviet expansionism. At its peak, the defence budget took more than seven percent of Canada’s Gross Domestic Product, and the army, navy, and air force had as many as 120,000 men and women in the regular forces.

No one could expect any government in this century to spend on that scale, but the Conservative government did treat defence well in its first years in power. The commitment to the Afghan War, never very popular, was handled capably, and the troops received everything they needed — helicopters, new artillery, upgraded armoured personnel carriers, and tanks, not to mention new transport aircraft. The number of regulars rose slowly and slightly toward 65,000, and the government presented a schematic Canada First Defence Policy in 2008 that listed a range of objectives and equipment acquisitions. The budget projections were colossal, almost $500 billions to be spent over the next 20 years.

But that was then, this is now:

The result was that the defence budget was cut, in substantial part because deficit reduction and a budget surplus were more important than “toys for the boys.” From a peak of $21 billion in 2009-10, the defence budget in this fiscal year is $18.2 billion, about a 13 percent reduction in dollars made worse by inflation. The percentage of GDP spent on defence is now hovering at one percent, the lowest since the 1930s. In 2009, it was 1.3 percent. Making matters even worse, the Department of National Defence somehow cannot spend all the money it gets, returning almost $10 billion to the Treasury since 2006.

Despite Harper’s tough talk on the international stage, his government’s active neglect of the needs of the armed forces means we can’t back up his pugnacious rhetoric with any serious military effort: a frigate in the Black Sea, four CF-18s in the Baltic, a couple of transport aircraft shuttling supplies into Erbil, and a small special forces contingent helping the Kurds … and that’s about our current limit for overseas deployment. The Royal Canadian Air Force is still waiting for new helicopters (after more than 20 years of stop-go-stop procurement disasters) and a decision on replacing the CF-18. The Royal Canadian Navy just announced the immediate retirement of four ships, with no replacements available for years (if ever), and the Canadian Army is struggling to maintain equipment and keep up training schedules due to budget constraints.

And, as Granatstein points out, if the Liberals or NDP win the next federal election, the situation will get worse, not better, as neither party sees the military as any kind of priority — quite the opposite.

Update: Speaking of cheeseparing “economies”, here’s the Department of National Defence’s most recent “saving”.

National Defence slashed its annual order of ammunition this year to save money — a revelation that raised fresh questions Wednesday about just how prepared Canada is to do battle with militants in the Middle East, Murray Brewster of the Canadian Press writes.

More from his article:

The 38 per cent cut was large enough to cause other government departments, Public Works and Industry Canada in particular, to sit up and take stock of the impact, internal documents obtained by The Canadian Press show.

One such document, a memo to Public Works Minister Diane Finley dated Feb. 5, 2014, indicates her department tried to convince defence officials to either abandon the cut or at least spread it out over a couple of years.

Defence officials said that would be impossible, because “they would not allow the department to meet its financial targets.”

As a result, the 2014 ammunition budget was reduced to $94 million from $153 million.

During the early phases of the Afghan war, National Defence was caught similarly flat-footed and had to rush an order through General Dynamic Ordnance, particularly for artillery shells.

The memo surfaced on the same day Prime Minister Stephen Harper told the House of Commons that the cost of deploying special forces to northern Iraq is being taken out of the department’s current budget.

September 26, 2014

QotD: English regional governance

Filed under: Britain, Government, Humour, Quotations — Tags: — Nicholas Russon @ 00:01

It is an attractive idea to bring back the traditional counties of England. It is also an attractive idea to dig up the body of the man who abolished them, Edward Heath, and stick his head on a pike, but that won’t happen either. The counties are just too small.

So if we are to have petty kingdoms, let them at least be kingdoms. Men have loved the Kingdom of Mercia. Men have died for the Kingdom of East Anglia — notably at the hands of men of Mercia, but there you go. Men of all the ancient nations of the Saxon have followed the greatest of the Kings of Wessex to glorious victory against the Vikings. Divide and conquer that, Eurocrats! Also it would serve the Vikings right for subjecting me to all those irritating pictorial instructions.

Natalie Solent, “Restore the Heptarchy!”, Samizdata, 2014-09-20.

September 25, 2014

QotD: Why useless university degrees are created

Filed under: Bureaucracy, Government, Quotations — Tags: , , — Nicholas Russon @ 00:01

The typical understanding of a useless degree is of a credential whose market value is close to zero. In that sense this isn’t quite economically useless. There is a market for people wielding this pseudo-intellectual nonsense. It’s not a real market admittedly but it’s a market nonetheless. There is, however, only a single market maker: The Government.

The job prospects go beyond employment directly by the state, they extend into the quasi-government sector, what is sometimes politely referred to as the wider public service. There is a whole eco-system of NGOs, quasi-governmental organizations and ad hoc committees that thrive upon the government teat. Since their work has no objective value, and the criteria for employment is vague at the best of times, hiring managers fall back upon a tried and true screening methodology: A piece of paper issued by a government backed institution.

So for those of you following along at home: A government financed body creates make work. In order to handle that made-up work new workers are hired. Those workers have certificates in make work from government financed educational bodies. This is the great circle of statist BS that spins around our the modern world without beginning or end. There is precious little justice in that.

Richard Anderson, “The Justice Makers”, Gods of the Copybook Headings, 2014-09-19.

September 22, 2014

Here’s a Senate reform that would vastly improve the institution

Filed under: Cancon, Government — Tags: , — Nicholas Russon @ 12:04

At Gods of the Copybook Headings, Richard Anderson proposes a brilliant reform to a Canadian institution that has never actually had a function — the Senate.

I’ve often argued that the appointment of Senators should be done through a national lottery. All Canadian citizens would be eligible to buy a $10 ticket into what would be called The Red Chamber Sweepstakes. Each April 1st a draw would be held for 20 Senators. The 20 lucky winners would get an appointment to the upper house lasting no more than five years. If the politically correct crowd complained you could screen the winners by region and ethno-cultural background. If done properly the whole Senate could become self-financing.

Now tell me gentle readers what would be wrong with this simple idea? Would the quality of Senators decline? Nope. Would the process be more corrupt that it is at the moment? Other way around I should think. Would it generate tremendous and positive interest in the Senate? Yes. It would also mean doing away with a pricey communications budget. There would be no need to rationalize the conduct or purpose of the Senatorial class. We know how they got there and we know what they’re made of. Heck the whole exercise could be spun as an act of democratic enfranchisement. Ordinary people, not party hacks, deciding on the great questions of the day. Or at least pretending to do so.

There are those, of course, who would object and say that holding a national Senate lottery would be an embarrassing travesty for the nation. Yes it would be. But given the state of Canadian politics what else is new?

September 17, 2014

Creating jobs, good. Creating subsidized jobs, not so good.

Filed under: Economics, Government — Tags: , , , , — Nicholas Russon @ 09:33

Gregg Easterbrook on the difference between ordinary jobs and government subsidized job creation:

Elon Musk Recharges His Bank Account: Tesla’s agreement with Nevada to build a battery factory is expected to create about 6,000 jobs in exchange for $1.25 billion in tax favors. That’s about $208,000 per job. More jobs are always good. But typical Nevada residents with a median household income of $54,000 per year will be taxed to create very expensive jobs for others. Volkswagen is expanding its manufacturing in Tennessee, which is good. But the state has agreed to about $300 million in subsidies for the expansion, which will create about 2,000 jobs — that’s $150,000 per new job, much of the money coming from Tennessee residents who can only dream of autoworkers’ wages. The median household income in Tennessee is $44,140, about a third of the tax subsidies per new Volkswagen job. The Tesla handout was approved by the Democratic state legislature of Nevada; Tennessee’s Republican-controlled state government approved the Volkswagen corporate welfare deal.

At least it’s a bargain compared to federally subsidized solar jobs. A Nevada solar project — state that is home to Senate Majority Leader Harry Reid, President Barack Obama’s closest ally on Capitol Hill — cost $10.8 million in subsidies per job created. Local public interest groups noticed the extreme subsidy while the national media did not.

This cheeky website monitors giveaways state by state.

September 16, 2014

When the “best nutrition advice” is a big, fat lie

Filed under: Government, Health, Media, Science — Tags: , , , , — Nicholas Russon @ 10:17

Rob Lyons charts the way our governments and healthcare experts got onboard the anti-fat dietary express, to our long-lasting dietary harm:

… in recent years, the advice to eat a low-fat diet has increasingly been called into question. Despite cutting down on fatty foods, the populations of many Western countries have become fatter. If heart-disease mortality has maintained a steady decline, cases of type-2 diabetes have shot up in recent years. Maybe these changes were in spite of the advice to avoid fat. Maybe they were caused by that advice.

The most notable figure in providing the intellectual ammunition to challenge existing health advice has been the US science writer, Gary Taubes. His 2007 book, Good Calories, Bad Calories, became a bestseller, despite containing long discussions on some fairly complex issues to do with biochemistry, nutrition and medicine. The book’s success triggered a heated debate about what really makes us fat and causes chronic disease.

The move to first discussing and then actively encouraging a low-fat diet was largely due to the work of Dr. Ancel Keys, who is to the low-fat diet movement what Karl Marx is to Communism. His energy, drive, and political savvy helped get the US government and the majority of health experts onboard and pushing his advice. A significant problem with this is that Keys’ advocacy was not statistically backed by even his own data. He drew strong conclusions from tiny, unrepresentative samples, yet managed to persuade most doubters that he was right. A more statistically rigorous analysis might well show that the obesity crisis has actually been driven by the crusading health advisors who have been pushing the low-fat diet all this time … or, as I termed it, “our Woody Allen moment“.

Rob Lyons discussed this with Nina Teicholz, author of the book The Big Fat Surprise:

Once the politically astute Keys had packed the nutrition committee of the AHA and got its backing for the advice to avoid saturated fat, the war on meat and dairy could begin. But a major turning point came in 1977 when the Senate Select Committee on Nutrition, led by Democratic senator George McGovern, held hearings on the issue. The result was a set of guidelines, Dietary Goals for the United States [PDF], which promoted the consumption of ‘complex’ carbohydrates, and reductions in the consumption of fat in general and saturated fat in particular.

By 1980, this report had been worked up into government-backed guidelines — around the same time that obesity appears to have taken off in the US. The McGovern Report inspired all the familiar diet advice around the world that we’ve had ever since, and led to major changes in what food manufacturers offered. Out went fat, though unsaturated fat and hydrogenated oils were deemed less bad than saturated fat, so vegetable oils and margarines became more popular. In came more carbohydrate and more sugar, to give those cardboard-like low-fat ‘treats’ some modicum of flavour.

Yet two recent reviews of the evidence around saturated fat — one led by Ronald Krauss, the other by Rajiv Chowdhury — suggest that saturated fat is not the villain it has been painted as. (The latter paper, in particular, sparked outrage.) As for fat in general, Teicholz tells me: ‘There was no effort until very late in the game to provide evidence for the low-fat diet. It was just assumed that that was reasonable because of the caloric benefit you would see from restricting fat.’

Teicholz also debunks the wonderful reputation of the Mediterranean Diet (“a rose-tinted version of reality tailored to the anti-meat prejudices of American researchers”), points out the role of the olive oil industry in pushing the diet (“Swooning researchers were literally wined and dined into going along with promoting the benefits of olive oil”), and points out that we can’t even blame most of the obesity problem on “Big Food”:

Which leads us to an important third point made by Teicholz: that the blame for our current dietary problems cannot solely, or even mainly, be placed at the door of big food corporations. Teicholz writes about how she discovered that ‘the mistakes of nutrition science could not be primarily pinned on the nefarious interests of Big Food. The source of our misguided dietary advice was in some ways more disturbing, since it seems to have been driven by experts at some of our most trusted institutions working towards what they believed to be the public good.’ Once public-health bureaucracies enshrined the dogma that fat is bad for us, ‘the normally self-correcting mechanism of science, which involves constantly challenging one’s own beliefs, was disabled’.

The war on dietary fat is a terrifying example of what happens when politics and bureaucracy mixes with science: provisional conclusions become laws of nature; resources are piled into the official position, creating material as well as intellectual reasons to continue to support it; and any criticism is suppressed or dismissed. As the war on sugar gets into full swing, a reading of The Big Fat Surprise might provide some much-needed humility.

September 4, 2014

The very essence of government is a monopoly on violence

Filed under: Government, History, Middle East — Tags: , — Nicholas Russon @ 09:19

Matt Ridley on how governments came about historically and how ISIS is trying to do exactly the same thing:

Nobody seems to agree whether Islamic State is best described as a gang of criminals, a terrorist organisation or a religious movement. It clearly has a bit of all three. But don’t forget that it aspires, for better or worse, to be a government. A brutal, bigoted and murderous government, its appeal is at least partly that it seems capable of imposing its version of “order” on the territory it controls, however briefly. It reminds us that the origin and defining characteristic of all government is that it is an organisation with a monopoly on violence.

The deal implicit in being governed is at root a simple one: we allow the people who govern us to have an exclusive right to commit violence, so long as they direct it at other countries and at criminals. In almost every nation, if you go back far enough, government began as a group of thugs who, as Pope Gregory VII put it in 1081, “raised themselves up above their fellows by pride, plunder, treachery, murder — in short by every kind of crime”.

Was Canute, or William the Conqueror, or Oliver Cromwell really much different from the Islamic State? They got to the top by violence and then violently dealt with anybody who rebelled. The American writer Albert Jay Nock in 1939 observed: “The idea that the state originated to serve any kind of social purpose is completely unhistorical. It originated in conquest and confiscation — that is to say, in crime … No state known to history originated in any other manner, or for any other purpose.”

Henry VII, the monarch who managed, after a century of gang warfare, to establish a monopolistic central government in England, funded his administration largely by extorting money from rich merchants with the threat of violence. That is to say, he ran a protection racket as blatant as any mafia don or IRA commander: pay up or lose your kneecaps.

September 2, 2014

The suddenly unsettled science of nutrition

Filed under: Government, Health, USA — Tags: , , — Nicholas Russon @ 14:58

After all the salt uproar over the last year or so, perhaps it was inevitable that other public health consensus items would also come under scrutiny. Here’s Ace having a bit of fun with the latest New York Times report on fat and carbohydrates in the modern diet:

One day there will be a book written about this all — how a “Consensus of Experts” decided, against all previous wisdom and with virtually no evidence whatsoever, that Fat Makes You Fat and you can Eat All the Carbohydrates You Like Because Carbohydrates Are Healthy.

This never made a lick of sense to me, even before I heard of the Atkins diet.

Sugar is a carbohydrate. Indeed, it’s the carbohydrate, the one that makes up the others (such as starches, which are just long lines of sugar molecules arranged into sheets and folded over each other).

How the hell could it possibly be that Fat was Forbidden but SUGAR was Sacred?

It made no sense. A long time ago I tried to get a nutritionist to explain this to me. “Eat more fruit,” the nutritionist said.

“Fruit,” I answered, “is sugar in a ball.”

But the nutritionist had an answer. “That is fruit sugar,” the she told me.

“Fruit sugar,” I responded, “is yet sugar.”

“But it’s not cane sugar.”

“I don’t think the body really cares much about which particular plant the sugar comes from.”

“Sugar from a fruit,” the nutritionist now gambited, “is more natural than processed sugar.”

“They’re both natural, you know. We don’t synthesize sucrose in a lab. There are no beakers involved.”

“Well, you burn fruit sugar up quicker, so it actually gives you energy, instead of turning into fat!”

“Both sugars are converted into glycogen in the body. There can be no difference in how they produce ‘energy’ in the body because both wind up as glycogen. I have no idea where you’re getting any of this. It sounds like you’re making it all up as you go.”

This is Science,” the nutritionist closed the argument.

Eh. It’s all nonsense. Even cane sugar contains, yes, fructose, or fruit sugar, and fruits contain sucrose, or cane sugar.

August 31, 2014

Politispeak – describing a slower rate of increase as an absolute cut in funding

Filed under: Cancon, Government, Health, Politics — Tags: , , , — Nicholas Russon @ 11:20

Paul Wells says the almost forgotten leader of Her Majesty’s loyal opposition in Parliament is doing his job, but illustrates it with a great example of how political rhetoric sometimes warps reality in favour of a more headline-worthy claim:

Here’s what he said: “After promising to protect all future increases to provincial transfers, Conservatives announced plans to cut $36 billion, starting in 2016,” Mulcair told the CMA. “This spring, Conservatives will announce, with great fanfare, that there is now a budget surplus. I’m here today to tell you that an NDP government would use any such surplus to, first and foremost, cancel those proposed cuts to health care.”

This needs parsing, but first, let’s let Mulcair finish: “Mr. Harper, it’s time to keep your word to protect Canadian health care. After giving Canada’s richest corporations $50 billion in tax breaks, don’t you dare take $36 billion out of health care to pay for them!” He said that part in English, then repeated it in French, which has become the way a Canadian politician delivers a line in italics.

Well. Let’s begin with the $36 billion. In December 2011, Jim Flaherty, then the federal finance minister, met his provincial colleagues to announce his plans for health transfers after a 10-year deal set by Paul Martin ran out in 2013-14. The 2004 Martin deal declared that cash transfers to the provinces for health care would increase by six per cent a year for 10 years. Harper simply kept implementing the Martin scheme after he became Prime Minister.

What Flaherty announced, without consulting with the provinces first, was that health transfers would keep growing at six per cent through 2016-17. Then, they would grow more slowly — how slowly would depend on the economy. The faster GDP grows, the faster transfers would grow. But, if the economy tanked, the rate of growth could fall as low as three per cent per year. Flaherty said this scheme would stay in place through 2023-24.

Add up all the shortfalls between three per cent and six per cent over seven years and you get a cumulative sum of $36 billion. Despite what Mulcair said, this isn’t a “cut,” it’s a deceleration in increases. And $36 billion is the gap’s maximum amount. If the economy shows any health, the gap will be smaller.

We could have fun complaining that Mulcair calls something a “cut” when it extends what is already the longest period of growth in federal transfer payments in Mulcair’s lifetime. But it’s more fun to take him at his word. He promises to spend as much as $6 billion a year in new tax money on health care. Mulcair couldn’t buy much influence over health policy with that money; he would simply send larger cheques to provincial governments. If he has other plans for the federal government, he’d have to pay for them after he’d sent that up-to $6-billion cheque to the provinces.

Emphasis mine.

August 27, 2014

Disappointingly, SpaceX plays the crony capitalist game with Texas politicians

Filed under: Business, Government, Space — Tags: , , — Nicholas Russon @ 10:28

If you’ve been reading the blog for a while, you’ll have picked up that I’m a fan of SpaceX and other non-governmental organizations in the space race. I wouldn’t go so far as to say Elon Musk is a hero, but I’ve generally been happy about his company’s successes in bringing more private enterprise into the launch business. However, as Lachlan Markay explains in some detail, Elon Musk is not above taking government funds to do things he’d be doing anyway, just like crony capitalists in the rest of the government-industrial complex:

Shortly before a private spaceflight company’s test rocket exploded over southern Texas last weekend, state lawmakers announced millions in subsidies to get the company to continue launching rockets in the Lone Star State.

Space Exploration Technologies, commonly known as SpaceX, will receive more than $15 million in public financing to build a launch pad in Cameron County, near the Mexican border.

The subsidies came after SpaceX’s founder, billionaire tech mogul and pop technologist Elon Musk, made campaign contributions to key state lawmakers and hired lobbyists with ties to Austin.

SpaceX is one of a number of innovative and disruptive startups that, though lauded by some free marketeers for making government-run markets more competitive, are finding themselves drawn to political advocacy, whether out of shrewdness or necessity.

Of the more than $15 million in incentives for a SpaceX launch facility in Brownsville, Texas, announced this month, $13 million will come from the state’s Spaceport Trust Fund.

Initially created in 2002, the fund began to wind down together with the idea of commercial spaceflight. But with the ascendancy of SpaceX and similar companies, Texas looked to secure its place as a destination for commercial spaceflight operations.

Musk took notice. A prolific political donor, he began pouring money into the campaigns of key state lawmakers. On November 7, 2012, he donated $1,000 to state representative Rene Oliveira (D). Two weeks later, he gave state senator Eddie Lucio Jr. (D) $2,000.

The next month, the Associated Press reported that Lucio and Oliveira were working to secure state backing for a potential SpaceX launch pad in Brownsville.

As Drew M. says at Ace of Spades H.Q., it’s not like this is a new thing for businesses or for politicians, it’s just disappointing:

I’m not naive to think this sort of stuff hasn’t gone on forever and will go on forever, it’s simply human nature. That’s why making government at levels as small as possible is so important.

What does continue to surprise me when it shouldn’t is how cheap it is to buy politicians. Remember Team GOP’s hero, Mississippi Senator Thad Cochran’s longtime aide who accepted $20-30K in gifts from Jack Abrahmof in return to ensuring the felon’s clients received millions in government money?

When you think about it it’s really no surprise that politicians sell themselves so cheaply. Unlike honorable whores who sell their own bodies, politicians sell other people’s money. Plus, they make it up in volume.

This bi-partisan rush to hand out everyone’s money for their own gain is part of why I’m drifting away from conservatism and towards libertarianism. Screw them all.

August 22, 2014

The consent of the governed (or policed)

Filed under: Government, Law, USA — Tags: , , — Nicholas Russon @ 07:53

Kevin Williamson on the declining trust in government, not just in Ferguson, but across the United States:

The mathematics of civil disobedience has always been pretty straightforward: As Mohandas Gandhi pointed out to the raj, 100,000 government officials cannot control 350 million citizens if the citizens do not cooperate. There are not enough police in St. Louis County to control the people who do not wish to be controlled by the police in St. Louis County, as least as currently constituted. There are two ways to govern: By consent or by terror. In the United States, we govern by consent.

(Mostly.)

We spend altogether too much time talking about sentiment, e.g., polling Americans about whether they feel that the laws of economics apply in any given situation, as though their feelings were relevant to it. But there are occasions upon which sentiment must be considered, and considered seriously. One is the matter of public confidence in institutions, and the other is in the very serious business of consent.

On the matter of confidence, it is difficult to fault the critics of the Ferguson and St. Louis County police authorities. They do not give a very strong impression of competence, and the relationship between police and community appears to be adversarial on both sides. The police have been less than forthcoming, and their release of information has been self-serving. Ferguson already was a relatively high-crime area and economically depressed, meaning, almost by definition, that local institutions were failing to do their jobs. There are looters, adventurers, and opportunists, of course, but the fact is that people in the town of Ferguson, Mo., could be at home watching television or updating their Facebook pages but instead are protesting the performance of their local government. That is not an insignificant fact.

[...]

We have seen withdrawals of consent before, and we will see more in the future. From cracked Texas secessionists and Cliven Bundy to the people throwing rocks at police in Ferguson, such gestures are rarely altogether admirable, but that does not make them necessarily illegitimate. (I must confess that I’d have more sympathy with the protesters in Ferguson if they were setting fire to tax offices rather than convenience stores.) (Not that I’m endorsing setting fire to tax offices.) (At this time.) And there are real reasons to consider the question of consent: From local politicians legally looting their communities to federal government that uses the IRS as a weapon of politics, there are real objections to be made. In practical terms, we have a government that interferes with our lives and livelihoods far more than did the one our Founders threw off.

Which is not a call for revolution — it’s a call for rebalancing, for reestablishing exactly who works for whom.

August 9, 2014

QotD: What is it that keeps democracies democratic?

Filed under: Government, Law, Liberty, Quotations, USA — Tags: , , , , — Nicholas Russon @ 00:03

This is the only thing that keeps either party within a mile of good behavior — the understanding that if you deceive the public, or act with gross incompetence, that behavior is going to be politicized and used against you.

Consider the example of the various one-party cities in this nation.

Can there be any doubt that “politicization” of one’s errors or actual violations is, while annoying for the party who has erred, the only thing that restrains a party from wholesale violations of the public trust?

Besides the obvious salutary public policy effects, there is of course a more tangible reason why records should be retained and, when subpoenaed by Congress, disclosed to that body:

Because it’s the law.

And adherence to the Law is the only thing that keeps a society of feuding political parties from degenerating into a third-world system of coups and counter-coups.

If the party I oppose shows perfect contempt for following the law when it sees a political advantage in doing so, why should I not support the selfsame law-breaking when the party I support decides it might find some advantage in doing so?

The government’s basis for rule over the citizens is based on two things:

1. Sheer naked coercive power.

And:

2. Moral authority, and the notion that, while a citizen might not like the particular government serving at any particular time, that citizen values something more eternal than the temporary political circumstances of a four year period of time.

Namely, the idea that it is best for everyone to follow the law, because it’s more important to support a stable government without turmoil and violence than to violate the law to win on any immediate, ephemeral political point.

Note that it is far better for any society that the government’s power rests more on the second pillar than on the first. Because so long as that pillar, of moral authority, of general fairness, of a general sense that the longterm interests of America are better served by adherence to government than to rebellion against it, the government will rarely, if ever, have to resort to the ultimate pillar of authority, which is physical, violent coercion.

Ace, “Sure Why Not: HHS Emails Sought by Congress To Determine Why Healthcare.gov Was Such a Catastrophe Are, Get This, Missing”, Ace of Spades H.Q., 2014-08-08.

August 8, 2014

Revisiting the economic brain-fart that was “Cash for Clunkers”

Filed under: Economics, Government, USA — Tags: , , , — Nicholas Russon @ 07:44

If you listen to big government fans, you’ll often hear how much better it is for the economy for the government to spend money — much better than letting the taxpayers spend that money themselves — because the government is able to get a much higher “multiple” for every dollar that it spends. The “Cash for Clunkers” story may support that theory, but only if you reverse the sign: the program may have been more economically helpful to the auto makers and the taxpayers if they’d just piled up a few billion bank notes and set them on fire. The program ran for two months, and the government doled out $3 billion in subsidies to new car buyers (their old cars were destroyed). The new car owners benefitted, although it seems to merely have brought forward intended new car purchases in most cases, and the auto makers seemed to benefit by moving out a lot of unsold inventory.

However, a new National Bureau of Economic Research working paper shows that the program actually ended up costing the auto makers between $2.6 and $4 billion. Coyote Blog quotes the WSJ‘s summary:

The irony is that the goals were to help Detroit through the recession by subsidizing sales and to please the green lobby by putting more fuel-efficient cars on the road. By pulling forward purchases that consumers would make later anyway, the Obama Administration also hoped to add to GDP. Christina Romer, then chair of the Council of Economic Advisers, called Cash for Clunkers “very nearly the best possible countercyclical fiscal policy in an economy suffering from temporarily low aggregate demand.”

The A&M economists had the elegant idea of comparing the buying behavior of Texas drivers who owned cars that barely qualified for cash (those that got 18 miles per gallon of gas or less) and those that barely did not (19 mph). Using state DMV sales records, this counterfactual allowed them to isolate the effects of the Cash for Clunkers incentives and show what would have happened without the program.

The two groups were equally likely to purchase a new vehicle over the nine month period that started with Cash for Clunkers, so the subsidy did not create any extra auto business. But in order to meet the fuel efficiency mandate, consumers who got the subsidy were induced to purchase smaller vehicle models with less horsepower that cost on average $2,500 to $3,000 less than those bought by their ineligible peers. The clunkers bought more Corollas, and everybody else more Chevys.

Extrapolated nationally, auto revenues may have plunged by more than what the government spent. And any environmental benefits cannot be justified under the federal social cost of carbon estimate of $33 a ton. Prior research from 2009 and 2013 has shown that the program cost between $237 and $288 a carbon ton.

By taking all those used cars off the road and destroying them, the program also created a nasty price spike in the used car market (which hurt the poor almost exclusively). As P.J. O’Rourke said:

… cash for clunkers was just sinful. You’re taking a bunch of perfectly good vehicles, inexpensive vehicles that could be used by people without much in the way of material means, and crushing them. If someone took a valuable resource — something that could really be useful to people — and destroyed it, they’d be in jail if they were private citizens.

Steve Chapman probably put it best back in 2009, “Cash for Clunkers has been a thrilling moment for advocates of expanded government, who say it proves what we can accomplish when our leaders put their minds to it. They are absolutely right. The program proves the federal government is unsurpassed at two things: dispersing money and destroying things.”

Older Posts »
« « QotD: The nature of liberty| David Harsanyi is remarkably unimpressed with the “Libertarian moment” talk » »

Powered by WordPress