Quotulatiousness

July 27, 2022

Baghdad Biden speaks

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

Chris Bray recounts the story of a local government attempting and — for a while — succeeding with the Baghdad Bob blanket denial strategy:

In the Deep Blue suburban town where I live, our city government has been stumbling through a series of crises. For a couple of years, employees fled from City Hall like the building was on fire, and nowhere was the crisis more acute than in the finance department — where we had five directors in a little over two years, and lost most of the other staff, including one who sued the city over her departure. There was a year when we couldn’t pass a budget, because the budget proposal was such a shambles, and a discussion at a meeting of an advisory commission in which a commissioner asked one of the many finance directors if the numbers in the city’s bank accounts matched the numbers in the city ledger. (Try to guess the answer.)

Recently, an ad hoc committee of local citizens — all finance professionals — wrote a report on the period of crisis, and presented our city council with a recommendation that they hire someone to do a forensic audit of the city’s accounting during those years. The council scheduled the report as a “receive and file” item, placing it on a 28-item agenda as, you’ll never guess, item #28. Then, in a brief discussion that began after midnight, they said that the report was nonsense and hearsay. The end.

So, yes, there was no financial crisis in our city during the years when we had five finance directors, when “permanent” finance directors left after a few months, when we lost most of the finance department staff, when we couldn’t pass a budget, and when we had no idea how much money we were actually supposed to have in the bank. Our city council says so. “These are not the ‘droids you are looking for.”

Meanwhile, we’re not in a recession, or even facing the risk of a recession, because that’s not Joe Biden’s view, and because the technical definition of a recession is very complicated.

Also, the inflation of 2021 was transitory. Zipped right by! Also, Joe Biden has a plan to shut down the virus.

The war in Ukraine is SHUT UP SHUT UP SHUT UP, the economy is SHUT UP SHUT UP SHUT UP, the continuing Covid-19 “emergency” is SHUT UP SHUT UP SHUT UP, and the mRNA injections are REALLY REALLY SHUT UP. Actually, the way experts measure this is really complicated, and technically

June 27, 2022

It’s not clear where the money will come from to fund the recently announced NORAD upgrades

Filed under: Cancon, Government, Military — Tags: , , — Nicholas @ 03:00

Aside from sticking knives in the backs of political critics, Justin Trudeau’s government loves announcing new programs and additional spending more than anything else. The boring, workaday details like actually implementing the newly announced programs … well, that sometimes gets forgotten in the rush to make new announcements. In this case, the recent announcement that Canada will be spending Cdn$4.9 billion to upgrade our contribution to NORAD for continental defence — and to no real surprise for anyone who’s been paying attention — it’s not clear even to the head of the Canadian Armed Forces just where that money is actually supposed to come from:

Canada’s defence chief says he doesn’t yet know where the money is coming from for $4.9 billion in promised upgrades to NORAD radar and surveillance systems.

In an interview with The West Block‘s Mercedes Stephenson, Gen. Wayne Eyre was asked about growing questions facing the government to detail their spending plan on NORAD upgrades.

Sources have told Global News the military is uncertain about where the funds are coming from, and that there are meetings happening at the department trying to determine how much of the money is new. Those sources say there are significant concerns that the money may not be new, and may need to be re-capitalized from within the existing defence budget.

“I haven’t completely figured out myself the source of funds for this,” Eyre said.

“So I can’t say definitively where it’s coming from. I will say, though, the announcement was welcome.”

Eyre was also asked whether the military is planning any departmental cuts in order to be able to allocate $4.9 billion to the NORAD upgrades.

“We haven’t looked at cutting. But as always, we have to look at rebalancing,” he said.

“The force that we have today is not the force that we need to support tomorrow. So we need to look at force structure. Do we have it in the right place? Do we need to look at rerolling of units so that they undertake roles that are more relevant for the future security environment? That is all important.”

Global News has asked for clarity on the question to Defence Minister Anita Anand’s office.

No answer has yet been received.

May 11, 2022

City governments that can’t even set a budget want to spend, spend, spend to fix global problems

It’s one of my standard quips that the more government tries to do, the less well it does everything, but Chris Bray‘s city government shows that I’m being far too Pollyanna-ish:

We’ve built political systems that are astoundingly disconnected; they go where they go, and you can’t turn them, or even try to communicate with them. I just spent weeks trying to get basic information about the operation of the criminal justice system in Los Angeles County, where I live — a problem I started writing about here. Just as I was getting really frustrated that I couldn’t get anyone in county government to tell me anything about anything, I saw an interview with Sheriff Alex Villanueva, who says that he’s never met our district attorney, and has only managed to speak to him on the phone once. Then a staff member in the office of our county supervisor finally responded to my repeated questions about local criminal justice statistics with a quick message letting me know that, as Supervisor Barger’s criminal justice staff assistant, she doesn’t have local criminal justice statistics. So, no, you’re probably not going to communicate with your government; it doesn’t even communicate with itself. The sheriff has never met the DA. That’s the world we’re living in.

I live in a tiny suburban city, a little over three square miles. As I’ve written before, the city is a relentless shambles, constantly fumbling its simplest tasks while holding city council meetings to offer bold pronouncements on the city’s direct role in managing the climate of the planet. We went the better part of the last fiscal year without a budget, because the fifth finance director in two years screwed up the budget proposal so badly that the council couldn’t vote on the worthless thing.

Cities are supposed to regularly adopt an updated general plan that makes educated guesses about business and residential growth, so they can prepare for change around questions like do we have enough fire stations for the population we expect to have in five years? Our current general plan was adopted in 1998; the city is now in its sixth year of a fumbling effort to write a new plan, with no sign that it’s moving toward success. Meanwhile, our small-town city council is focused on getting electric patrol cars for the police department — to control the climate of the planet — and banning the sale of tobacco products, to take the fight to Big Tobacco. (Three square miles.)

I can’t get my city government to fix a bunch of basic and obvious problems, in a city where I pass members of my city council in the supermarket. I send out email messages to them, but nothing comes back from them in response. They go where they feel like going, endlessly pursuing lawn sign politics in a city government that struggles to complete budgets and basic planning documents; currently they’re signaling that their next interest is in developing a local mandate for residential greywater systems, and they won’t be talked out of it in favor of completing their endlessly incomplete basic tasks.

Now: Put your hands on the levers to stop the madness of the United States of America sending tens of billions of dollars to Ukraine. Right?

April 17, 2022

The end of the (pandemic-induced) book boom

Filed under: Books, Business, Economics, Health — Tags: , , — Nicholas @ 03:00

In the latest SHuSH newsletter, Ken Whyte metaphorically collects his winnings from predicting nearly a year back that the boom in book sales during 2020/2021 would not last once the pandemic lockdowns began to ease off:

I noted last June in SHuSH 103, “Big Guys Lose Their Minds”, that book sales, especially for the leading firms — Penguin Random House, HarperCollins, Hachette, Simon & Schuster — were ramping up during the pandemic, reaching 10% to 20% above 2019 levels. I also noted that the numbers were making some of these publishers giddy.

HarperCollins CEO Brian Murray, for instance, gave an interview in which he proclaimed that humanity had entered a new era of permanently higher book sales and added that he was ratcheting up his spending to meet the increased demand.

“We are being aggressive in terms of buying books. We’ve seen the book pie grow, maybe 15 percent,” says Murray, “and so our response, which is part opportunistic and part defensive, is to be aggressive in buying right now. Because if that pie remains large, we want to make sure that we get a nice share of the larger pie … we want to make sure that we have a lot of new, exciting books in the future that will maintain our revenues at the current levels.” Yikes.

In that June newsletter, I anticipated the world returning to normal and book sales falling back to earth as vaccinations took hold and the coronavirus waned (we also promised to check back in a year — so here we are, a few months early).

It did not feel dangerous, that prediction. While it can sometimes be difficult to distinguish between a temporary spike (or drop) in sales due to extraordinary circumstances and the beginning of a long-term trend, it’s always safest to pick extraordinary-and-temporary amid an unprecedented pandemic with people locked up and not behaving normally. Also, my buddy Jack David at ECW Press agreed with me and he’s been doing this forever. And it wasn’t like Brian Murray had any evidence to back his claim that an era of permanently higher book sales had dawned.

[…]

The share prices of big publishing companies don’t tell the same sort of story because they tend not to be pure-play book publishers: Simon & Schuster, for instance, is owned by multimedia giant Viacom; HarperCollins by the omnipresent Rupert Murdoch; Penguin Random House is less than a quarter of Bertelsmann’s business. But first-quarter 2022 revenue figures for those firms are available and they show that the great give-back is underway in the book world, too.

The headline in Publisher’s Weekly reads “The Book Sales Boom is over”. Here’s the US data:

And that’s just the beginning. Sales will continue to slide throughout 2022 and into 2023 as the world normalizes, people concentrate on doing all the things they’ve not been able to do the past two years, run through the extra cash they accumulated in the pandemic, and resume their former library borrowing habits.

What happens at the big publishing companies? If, as Murray’s comments would lead you to suspect, they’ve budgeted and spent for the good times to continue, unhappy times await.

March 18, 2022

Jean Charest tries to position himself as the pro-military Conservative leadership candidate

Filed under: Cancon, Government, Military, Politics — Tags: , , , — Nicholas @ 03:00

Canadian politicians — generally speaking — are unwilling to tread too far into discussions of the Canadian Armed Forces and the utter disaster that is our federal government’s procurement “process”. There are lots of good, electoral reasons for this: Canadians have been propagandized over the last two generations to see Canada as a country with no real enemies and having no need of military force except for overseas peacekeeping and disaster relief. Any identified need for new equipment or even just updated replacements for existing capabilities is always a politically dangerous discussion, as it’s remarkably easy to get public support for almost any non-military spending instead of anything even vaguely warlike. Worse, on those few occasions when the government of the day bites the bullet to buy new ships/tanks/planes/helicopters/etc., the top priority isn’t military effectiveness or even lowest-price but where the money will be spent. Bidders for Canadian military contracts can’t just crank off a few extra units of the weapon or vehicle on existing production lines (which in almost every case would be both militarily better and economically cheaper): the government almost always demands new, expensive production facilities be constructed in Canada or for the foreign supplier to “partner” with an existing Canadian company to produce as much in Canada as possible.

This procurement charade usually means the Canadian Forces end up with far fewer weapons or vehicles because the increased costs of partial or complete production in Canada gobble up far more of the allocated budget. For example, back in 2017, we purchased a batch of new machineguns. It was the same model already in use with the Canadian army and with many of our NATO allies. If we’d just bought from one of the foreign manufacturers who already had production lines and tooling set up, each gun would have cost between US$6,000 and US$9,000 depending on configuration. But because we insisted on having Colt Canada set up a new production line, each weapon ended up costing C$28,000!

Multiply this across the entire range of equipment needed by the Canadian Army, the Royal Canadian Navy, and the Royal Canadian Air Force, and it’s quickly obvious that we’re running one of the least efficient military procurement systems in human history. And even on a domestic spin-off/job creation/vote buying spectrum, it’s insanely expensive and wasteful.

All of that out of the way, here’s Conservative leadership hopeful Jean Charest deliberately touching one of the “third rails” of Canadian politics by proposing an increase in funding for the military:

Our military procurement system is broken. For years experts have been warning about our incompetence at making major defence purchases. The past few weeks have shown us the price of our inaction.

While our allies, the United States, the United Kingdom and Australia, have entered into a new security pact to counter China in the Pacific, Canada wasn’t even invited to the table.

Germany, Sweden, and other NATO allies promise to increase their military spending to prepare for the uncertain times ahead. Canada has a moral responsibility to act. Now is the time.

If elected as the leader, my Conservative government will make significant changes and upgrades to our nation’s military capabilities. I will move quickly to ramp up Canadian defence spending to two percent of GDP, increase personnel to 100,000 and equip our forces for the challenging times ahead. I will modernize our cyber security infrastructure to prepare for future risks. And I will fix our embarrassing procurement system to ensure we get the equipment we desperately need.

The current conflict has also driven home the need to assert our sovereignty, especially in our North. As major sea lanes, essential to global trade and export of our natural resources, open within our arctic territory, we must be on high alert to Russian and Chinese encroachment. Neither recognizes our sovereignty there. In fact, no one really recognizes our sovereignty there and the imbalance in our military investments compared to our allies explains why that’s the case.

The war in Ukraine is a cruel reminder of why we cannot ignore these threats. Russia has a modern military base in the arctic — another area where indecision and delay could be extremely costly unless addressed.

A proud Canada must assert its sovereignty in the North and generate military support through major investments in equipment and coordination with our NATO allies. We need to get our act together.

The threats remain real and demand immediate attention from leaders willing to act in the best interests of their respective nations.

Canadians need experience and expertise overseeing our military. We need a government that supports our military.

March 14, 2022

“Mister, we could use a man like Herbert Hoover Warren Harding again …”

Filed under: Economics, Government, History, USA — Tags: , , , , , , — Nicholas @ 03:00

Kind words for the oft-maligned 29th president of the United States? Daniel J. Mitchell is all over it:

Warren G. Harding, 14 June 1920.
Library of Congress control number 2016828156

Today, we’re going to celebrate the fiscal achievements of Warren Harding.

Most notably, as illustrated by this chart based on OMB data, he presided over a period of remarkable spending discipline.

Harding also launched very big — and very effective — reductions in tax rates.

And his agenda of less government and lower tax rates helped bring about a quick end to a massive economic downturn (unlike the big-government policies of Hoover and Roosevelt, which deepened and lengthened the Great Depression).

In an article for National Review last year, Kyle Smith praised President Harding’s economic stewardship.

    In a moment of national crisis, Warren G. Harding restored the economic health of the United States … America in 1921 was in a state of crisis, reeling from the worst recession in half a century, the most severe deflationary spiral on record … Unemployment, it is now estimated, stood somewhere between 8.7 and 11.7 percent as returning soldiers inflated the size of the working-age population.

    Between 1919 and August of 1921 the Dow Jones average plummeted 47 percent. Harding’s response to this emergency was largely to let the cycle play out … The recession ended in mid-year, and boom times followed. Harding and Congress cut federal spending nearly in half, from 6.5 percent of GDP to 3.5 percent. The top tax rate came down from 73 percent to 25, and the tax base broadened. Unemployment came down to an estimated 2 to 4 percent … Harding was a smashing success in a historically important role as the anti-Wilson: He restored a classically liberal, rights-focused, limited government, and deserves immense credit for the economic boom that kicked off in his first year and continued throughout the rest of the 1920s.

Smith’s article also praises Harding for reversing some of Woodrow Wilson’s most odious policies, such as racial discrimination and imprisoning political opponents (Wilson also had a terrible record on economic issues).

Of course, Harding’s term is much more often remembered for the scandals, and as most modern historians are far more interested in Woodrow Wilson’s bold progressivism they almost always decry Harding and then Coolidge for dismantling a lot of Wilson’s more enthusiastic progressive projects. Even H.L. Mencken — very much not a Wilson fan — found Harding to be not to his taste in turn:

On the question of the logical content of Dr. Harding’s harangue of last Friday, I do not presume to have views … But when it comes to the style of the great man’s discourse, I can speak with … somewhat more competence, for I have earned most of my livelihood for twenty years past by translating the bad English of a multitude of authors into measurably better English. Thus qualified professionally, I rise to pay my small tribute to Dr. Harding. Setting aside a college professor or two and half a dozen dipsomaniacal newspaper reporters, he takes the first place in my Valhalla of literati. That is, he writes the worst English that I have ever encountered. It reminds me of a string of wet sponges; it reminds me of tattered washing on the line; it reminds me of stale bean soup, of college yells, of dogs barking idiotically through endless nights. It is so bad that a sort of grandeur creeps into it. It drags itself out of the dark abysm … of pish, and crawls insanely up to the topmost pinnacle of posh. It is rumble and bumble. It is flap and doodle. It is balder and dash.

March 17, 2021

Rebuilding the Royal Canadian Navy

Filed under: Cancon, Military — Tags: , , , , , — Nicholas @ 05:00

I somehow missed this article by Sir Humphrey when he posted it a few weeks back. He’s looking at the Australian and Canadian governments’ respective decisions to use the British Type 26 design to replace their current anti-submarine fleets and considering some of the economic and military concerns that led to the decision.

In both cases there have been media articles in the last week over the programmes and concerns. In Canada, the challenge has been that the cost has grown to a total of $77bn for 15 escorts. There has been cost growth from an originally scheduled $14bn many years ago, and the first of class will not now be delivered until 2031. This has led to suggestions in some media quarters that Canada could do things faster and more cheaply if it simply bought an off the shelf foreign design now and got on with things.

An artist’s rendition of BAE’s Type 26 Global Combat Ship, which was selected as the Canadian Surface Combatant design in 2019, the most recent “largest single expenditure in Canadian government history” (as all major weapon systems purchases tend to be).
(BAE Systems, via Flickr)

[…]

The issue now is that Canada will need to establish, almost from scratch, a frigate construction programme and workforce for a finite period of time without a clear plan of what follows on when the last hull is completed. At the same time it will need to run on ships that are becoming increasingly elderly – it is likely that most of the Halifax class will see more than 40 years of service, and some may approach their 50th birthdays before being replaced – something that will pose an increasing maintenance and resource challenge.

Could things be done more cheaply or quickly? Almost certainly yes, but only if you are willing to make massive compromises. It could be possible, for example, to look to licence build an existing design that is already in service. There are plenty of designs out there that could be licence built and brought into service in the next few years — probably at less cost than the T26 programme.

But while this may sound easy, its also a recipe for disaster. It’s easy to look at country X and say “they’re buying this ship for that much” and assume that Canada is getting a bad deal. But Country X is likely to have a very different set of requirements, and their design will reflect it.

For example, Canada needs a ship able to operate with NATO and 5 EYES as a fully integrated player – this adds cost to fit specific systems and equipment that is compatible. Canada will also want to fit bespoke systems to meet national needs – again this will require design changes, that come at a price. Bolting on all manner of different requirements that Canada needs to meet the unique operational circumstances adds price and complexity to the design.

While you probably could take an off the shelf design and build it now, it would be just that, an off the shelf design. It wouldn’t be optimised for local needs, and it wouldn’t have the right equipment, comms, meet local design standards, or be certified for use with national equipment.

You are then faced with two choices – either bring a cheap ship into service that is entirely unsuitable and not designed for your needs, but is a lot cheaper, or spend an enormous amount of money shifting the design to better reflect your needs. If you choose the latter, then suddenly you are adding cost and time in, and the 2031 date will slip even further.

If you choose the former, then you have to accept that the design is “as it comes” and will have minimal Canadian input – so limited industrial offsets, very little economic benefit, and the long-term support solutions will firmly be tied into the country of origin and not Canada. In other words, Canadian taxpayer dollars will be spent to support a foreign economy.

That last point is really the key. Canadian governments, in my lifetime at least, never look at the military requirement as the top priority and sometimes not even the second or third priority. The economic spin-offs, especially in those cases where the benefits can be allocated to marginal parliamentary constituencies, will be the top priority. As is always a talking point in the case of any major military hardware acquisition, this is going to be the “single largest expenditure in Canadian government history”. Just as the replacement of the RCAF’s aged CF-18 fighters will be the largest expenditure in its turn.

March 2, 2021

Warship purchasing is not for the faint-of-heart

Filed under: Bureaucracy, Cancon, Economics, Government, Military — Tags: , , , , , — Nicholas @ 03:00

Ted Campbell talks about the way the Royal Canadian Navy plans for warship purchases … and how the best-laid plans can be derailed by ignorant political advisors:

An artist’s rendition of BAE’s Type 26 Global Combat Ship, which was selected as the Canadian Surface Combatant design in 2019, the most recent “largest single expenditure in Canadian government history” (until the RCAF gets their replacement for the CF-18 Hornet).
(BAE Systems, via Flickr)

Once upon time,* about 25 to 30 years ago, in the mid 1990s, when I was the director of a small, very specialized team in National Defence Headquarters (NDHQ) in Ottawa, something like this happened: One of my colleague, who had a title like Director of Maritime Requirements or something similar said to one of his principle subordinates, “Look, now that the 280s (Canada had four Tribal Class destroyers with pennant numbers starting at 280, they were often just called ‘280s’) are finished their mid-life refit and now that the new frigates are entering service it is time to put a ‘placeholder’ in the DSP for their eventual replacements.” The DSP was (still is?) the Defence Services Programme, it is the internal document which sets out the long range spending plans (maybe hopes is a better word) for the Canadian Armed Forces.

Anyway, the Navy commander (the officer assigned to write the document, not the Commander of the Royal Canadian Navy who is nicknamed the Kraken (CRCN)) sat at his desk and consulted the most recently approved planning document which, as far as I can remember, called for a surface fleet of 25 combat vessels and four large support ships plus numerous minor war vessels (like minesweepers) and training vessels. The officer then prepared a memorandum for the joint planning staff which said that the Navy would need 25 new combat ships, to be procured between about 2015 and 2035, in five “batches” of five ships each** at a total cost of about $100 Billion, in 2025 dollars. He didn’t say much beyond that, actually, he was just intending to “reserve” some money a generation or so in the future. His memorandum sailed, smoothly, past his boss and the commodore but questions came from a very senior Air Force general: Where he asked, did the $100 Billion come from? That was an outrageous number, he said.

A meeting ensure where the Navy engineering people came and said, “$100 Billion is a very reasonable guesstimate. Our brand new frigate are costing $1 Billion each when they come down the slipway. They will each have cost the taxpayers two to three times that by the time we send them to be broken up thirty or forty years from now. Adding in the inevitable costs of new technology and inflation, which we know is higher for things like military ships and aircraft than it is for consumer goods, then a life-cycle cost of $4 Billion for each ship is very conservative. The admirals and generals huffed and puffed but they didn’t argue ~ they knew that the engineering branch insisted on using life cycle costing, even though no-one but them understood it, and they also knew that arguing with engineers is like mud-wrestling with pigs: everyone gets dirty but the pigs love it.

A decade later, when a new government was planning the National Shipbuilding Procurement Strategy, which was all about making the Canadian shipbuilding industry competitive and had very little to do with ships ~ except they would be the “product” for which the Government of Canada would pay top-dollar, the Navy was told it could have fewer ships, in two classes, and someone ~ NOT the military’s engineering branch ~ assigned a cost figure to the project which was, to be charitable, pulled out of some political/public relations staffer’s arse.

[…]

* The story is true, in general, but I was not directly involved in any of it. I learned about what happened from three main sources: 1. routine briefings that my bosses (directors-general and branch chiefs) gave, regularly, to we directors, dealing with what was going on in the HQ and in the big wide world; 2. periodic chats with my colleagues, after work on Friday afternoons, in the bar of the Officers’ Mess ~ many of us regarded 2. as a more reliable source of information than 1.; and 3. in the case of the story about the Navy engineers and the Air Force general, by a friend and colleague who was in the room.

** The idea, long before the National Shipbuilding Strategy, was to keep shipyards moderately busy on a continuous basis. The 25 ships would all be similar: the first “batch” of five would be identical, one to the other; the second “batch” would be very similar but with some improvements; the five ships of batch 3 would be similar to the ships from the second batch and those from batch 4 would be rather like their batch 3 sisters. Finally, the batch 5 ships would be product improved versions of batch 4 ~ they would still be “sisters” of the batch 1 ships, but not, in any way, twins. The idea was that about the time that the batch 5 ships were being delivered the first of the batch 1 ships would be getting ready for a mid-life refit (after 15 to 20 years of service) which would result in it being much more like the batch 5 ships … and so on.

July 1, 2020

Toronto Police won’t be facing a 10% budget cut after city council votes down proposal

Filed under: Cancon, Government, Law — Tags: , , — Nicholas @ 03:00

Chris Selley on the vote by Toronto city councillors to retain the existing budget for the city’s police force at $1.22 billion:

On Monday, Toronto City Council debated and passed a variety of proposed police reforms, the newsiest of which had been asking the department to table a 10-per-cent budget cut for 2021. That idea was voted down 16-8. Further proposed changes included asking the Toronto Police Service for a line-item budget, and subjecting police to the municipal auditor-general’s oversight — utterly revolutionary concepts, you will agree. (Both passed.)

The budget cut might at least have been a useful exercise: It would be interesting to know what the police would and wouldn’t do with $1.1 billion instead of $1.22 billion. If I had been a consensus-seeking councillor on the virtual floor, I might have moved a motion asking the police to table line-item budgets for both — and maybe push for 20 or 30 per cent, too. But the question of the budget sucked up too much oxygen.

That’s certainly understandable. The “defund the police” movement in all its permutations is having a moment. There are North American police departments and police unions that might as well be begging to be disbanded, as much with their banal and petulant misbehaviour as with their needless use of lethal force. A few might even get their wish.

Canadian departments haven’t been begging quite as hard, however, and too many Canadians take false solace in that. When it comes to police-involved fatalities, we fare quite poorly against Western nations other than the one next door. Our accountability mechanisms are, generally speaking, a sick joke; indeed, it seems considerably easier to fire flamboyantly terrible cops in the United States than it does here.

James Forcillo, the Toronto officer who was caught on tape fatally unloading nine shots at 18-year-old Sammy Yatim for no good reason, was on the payroll for two-and-a-half years until his criminal conviction. He was at least suspended. Simon Seguin, the Alberta RCMP officer caught on camera in March rugby-tackling, punching and choking Athabasca Chipewyan First Nation Chief Allan Adam in a dispute over an expired vehicle registration, was at the time awaiting trial for assault!

June 27, 2020

QotD: The cost of military equipment

Major military hardware is produced in only limited quantities and involves a massive amount of research, development, and engineering before the first unit goes into service. Because of this, the companies that build it are rarely willing to take the risk of paying for the development themselves and recovering the cost from the units that they sell. What if the customer suddenly decides to cut their buy in half? To avoid this problem, development is paid for by the customer separately from procurement of each item. Well, more or less. The actual answer varies with each particular system, accounting method, and time of the month. But in general, costs break down that way.

So why does this cause so much confusion? Well, it all has to do with what gets reported. Someone who is trying to make the case that some program is outrageously expensive and should be cancelled is going to lump together development and procurement, divide by the number of systems involved, and then publish the resulting number. But, particularly when we’re discussing the cost of a system about to enter production, that’s very different from the actual numbers. To give a well-known example, the B-2 is generally reputed to have cost about $2 billion/plane in the 90s. However, this is the total program cost divided by the 21 airframes. If we’d decided to buy 22 B-2s instead of the 21 we did buy, the extra plane would have cost only $700 million or so. Admittedly, the B-2 is a rather extreme case, and usually the share of R&D cost is less than the procurement (flyaway) cost, but it’s illustrative of the power of this kind of framing.

“bean”, “Military Procurement – Pricing”, Naval Gazing, 2018-03-09.

January 7, 2020

“HS2 will make the country worse off and should be stopped as soon as possible”

Filed under: Britain, Economics, Railways — Tags: , , — Nicholas @ 05:00

The British government recently reviewed the ever-escalating sums for the proposed HS2 high speed passenger rail connection that began at some £30 billion, then climbed to £50 billion, then £80 billion, and the latest estimate is up to £110 billion. Even by other countries’ high speed rail boondoggles, that is a breathtaking cost escalation. If, as it should, the government cancels the HS2 project, what happens to the money that was budgeted for the fiasco?

The figures used to justify HS2 were “fiddled” and that the project is most unlikely to deliver value for money — that’s the verdict of Lord Berkeley, the deputy chairman of the recent review into the project. He’s right of course and not solely because he’s repeating what I argued more than a year ago.

HS2 will make the country worse off and should be stopped as soon as possible. The government can mourn the money wasted and go off and do something else. Some suggest the HS2 money should be taken and spent on northern railways. Or as Lord Berkeley himself would prefer, on commuter lines in the Midlands.

But those offering these suggestions are making a very fundamental mistake: the real question is not which project most deserves this slab of funding, but whether the state should be spending this money at all.

This is not to say government should not be involved in funding any big infrastructure — everyone except the most hardcore anarchists accepts that state involvement in the economy is sometimes appropriate. But when it does intervene, it ought to be because there is an ironcast case for the betterment of the general population. That’s equally true whether we are talking about taxing to spend money now, or borrowing on the assumption that future benefits will pay back the debt incurred.

So, where does this leave the HS2 money? At some point it was decided that spending £30 billion, £50 billion, £80 billion or now as much as £110 billion on some nice choo-choos was an idea that justified taxing the public. Now it’s clear and obvious that it isn’t. Deciding afterwards that the government must spend all those billions on something else transport-related is missing the point entirely.

December 14, 2019

History of Space Travel – Guided by Starlight – Extra History – #6

Filed under: Bureaucracy, Government, History, Space, USA — Tags: , , , , — Nicholas @ 04:00

Extra Credits
Published 12 Dec 2019

What happened after we touched down on the moon? And where are we going in the future? While we may have lost the glitz and glamor of the Space Race, we have continued to make incredible progress in reaching the stars. We’ve come together to build space stations while in space, create the international space station, and started developing new technologies that could take us to Mars and beyond.

Start your Warframe journey now and prepare to face your personal nemesis, the Kuva Lich — an enemy that only grows stronger with every defeat. Take down this deadly foe, then get ready to take flight in Empyrean! Coming soon! http://bit.ly/EHWarframe

October 13, 2019

QotD: The modern British army is custom-tailored to resist reform of any meaningful type

Filed under: Britain, Military, Politics, Quotations — Tags: , , , — Nicholas @ 01:00

This then leaves the army in a bit of a quandary. It has focused on delivery of a global division as its benchmark at a time when the politicians simply do not want to do this. It has focused on keeping 82,000 troops when it can’t afford to keep them all equipped, and to meet the political priority of protecting certain regimental capbadges, it has been forced to sacrifice its far more valuable logistics, communications and other enablers that keep it as a genuinely effective force.

Talking to friends in the army, there is a real sense of anger and frustration among many mid-level officers. The veterans of [Operation] HERRICK feel that the army hasn’t learned lessons and remains bound by tradition and an inability to really learn. Candidly, many feel that the UK “lost” in Afghanistan and hasn’t yet accepted this fact. They feel the army is overly top heavy and rigid and unable to really adapt to 21st century warfare. Suggestions that much of the army exists as a structure to support rapid expansion in the future is met with a hollow snort of derision – we could never do a WW1-style rapid expansion again for the legacy reserve stocks of weapons and equipment have long since been disposed of as part of the move to RAB accounting in the early 2000s.

The operations that the army is likely to be involved in are either low level defence engagement, or as part of NATO reassurance in Eastern Europe. The chances of needing BAOR established again are slim – if we get to the stage where the UK is trading shots with the Russians, then things will be quickly escalating beyond the point where conventional weapons are of value. Home defence remains an issue, although the days of Exercise “Brave Defender” will never be repeated — the threat is completely different. There is simply no credible home threat that needs the army to deploy against invasion or insurrection. It is telling that there has been a move to get back into the Aid to the Civil Power role again, if only because having troops able to do flood relief helps generate positive headlines.

Whenever brave efforts are made to try and look again at how things can be done differently to free up funding (such as closing RHQs or making sense of the archaic HQ and regimental structure) leaks to the press ensure a media and Parliamentary furore that prevents real change being put into play. This stops the army from being able to genuinely restructure itself because the moment it tries to do so, some tired old headline such as “we don’t have an army anymore, only a militia” (an utter fallacy) appears and men of a certain generation with angry moustaches and blazers with badges and purchased medals write to their MPs. In a Parliament without a majority, it only takes a minor backbench rebellion to threaten chaos, meaning no minister will risk reform if it angers the backbenches.

The army today faces a structural and existential crisis. Too large to be properly funded, and politically barred from restructuring itself (although the recent 2017 manifesto pledge is merely to preserve the headline strength of the forces, not the individual services, so there is still hope). Denied a credible enemy that it can prepare to fight against, it has no clear rationale for why it needs to operate at a large scale when the political decision makers are increasingly set against boots on the ground for long term commitment.

Sir Humphrey, “How Do You Solve a Problem Like a Deployable Division?”, Thin Pinstriped Line, 2017-08-06.

July 24, 2019

“[T]he debt ‘ceiling’ is about as sturdy and solid as those featured on those DIY home reno disaster shows”

Filed under: Economics, Government, Politics, USA — Tags: , , — Nicholas @ 03:00

Mark Steyn notes that yesterday’s the “big victory” over the debt ceiling (in President Trump’s words) could be almost the same as the “big victory” he wrote about eight years earlier:

The western front of the United States Capitol. The Neoclassical style building is located in Washington, D.C., on top of Capitol Hill at the east end of the National Mall. The Capitol was designated a National Historic Landmark in 1960.
Photo via Wikimedia Commons.

That thoughtful observer of the passing parade, Nancy Pelosi, weighed in on the “debt ceiling” negotiations the other day: “What we’re trying to do is save the world from the Republican budget. We’re trying to save life on this planet as we know it today.”

It’s always good to have things explained in terms we simpletons can understand. After a while, all the stuff about debt-to-GDP ratio and CBO alternative baseline scenarios starts to give you a bit of a headache, so we should be grateful to the House Minority Leader for putting it in layman’s terms: What’s at stake is “life on this planet as we know it today.” So, if right now you’re living anywhere in the general vicinity of this planet, it’s good to know Nancy’s in there pitching for you.

What about life on this planet tomorrow? How’s that look if Nancy gets her way? The Democrat model of governance is to spend four trillion dollars while only collecting two trillion, borrowing the rest from tomorrow. Instead of “printing money,” we’re printing credit cards and preapproving our unborn grandchildren. To facilitate this proposition, Washington created its own form of fantasy accounting: “baseline budgeting,” under which growth-in-government is factored in to federal bookkeeping as a permanent feature of life. As Arthur Herman of the American Enterprise Institute pointed out this week, under present rules, if the government were to announce a spending freeze – that’s to say, no increases, no cuts, everything just stays exactly the same – the Congressional Budget Office would score it as a $9 trillion savings. In real-world terms, there are no “savings,” and there’s certainly no $9 trillion. In fact, there isn’t one thin dime. But nevertheless that’s how it would be measured at the CBO.

Around the world, most folks have to work harder than that to save $9 trillion. That’s roughly the combined GDPs of Japan and Germany. But in America it’s an accounting device. This is something to bear in mind when you’re listening to the amount of “savings” touted by whatever triumphant bipartisan deal is announced at the eleventh hour in Washington.

So I find myself less interested in “life on this planet as we know it today” than in life on this planet as we’re likely to know it tomorrow if Nancy Pelosi and her chums decline to reacquaint themselves with reality. If you kinda dig life on this planet as you know it, ask yourself this: What’s holding the joint up? As the old gag goes, if you owe the bank a thousand dollars, you have a problem; if you owe the bank a million dollars, the bank has a problem. If you owe the banks 15,000,000,000,000 dollars, the planet has a problem. Whatever comparisons one might make with Europe’s soi-disant “PIIGS” re debt per capita or deficit-to-GDP ratio, the sheer hard numbers involved represent a threat to the planet that Portugal or Ireland does not. It also represents a threat to Americans. Three years ago, the first developed nation to hit the skids was Iceland. But, unless you’re Icelandic, who cares? And, if you are Icelandic, you hunker down, readjust to straitened circumstances, and a few years down the line Iceland will still be Iceland and, if that’s your bag, relatively pleasant.

That’s not an option for the U.S. We are chugging a highly toxic cocktail: 21st-century spendaholic government with mid-20th-century assumptions about American power. After the Battle of Saratoga, Adam Smith replied to a pal despondent that the revolting colonials were going to be the ruin of Britain: “There is a great deal of ruin in a nation,” said a sanguine Smith.

March 21, 2019

“It’s back to normal, basically. The emperor is naked. Votes are for sale. Caveat emptor

Filed under: Cancon, Economics, Government, Politics — Tags: , , , , — Nicholas @ 03:00

Chris Selley somehow seems, I dunno, a bit … cynical about Prime Minister Trudeau and Finance Minister Morneau’s 2019 federal (election) budget:

Ahoy there, relatively young and middle-class Canadian! Did you vote Liberal in 2015? And are you, shall we say, somewhat less enthused about that prospect four years later, for various reasons we needn’t go into here?

Now, what if Justin Trudeau were to offer you a down payment on a shiny new condominium?

Well, that’s just the kind of guy he is. Starting this year, so long as your household income is below $120,000, the Canada Mortgage and Housing Corporation will pitch in 5 per cent of the price of your first home — 10 per cent if it’s a new home, the construction of which the government hopes to incentivize.

That’s Item One in the 460-page federal budget tabled Tuesday in Ottawa.

On a new $400,000 condo, you could put down your own $20,000; CMHC would chip in another $40,000; and your monthly mortgage payment, on a 25-year term at 3.25 per cent, would drop by a not inconsiderable 12 per cent. You would reimburse CMHC, interest-free, if and when you sell. Cost to the taxpayer: $121 million over six years.

If you’re worried giving home-seekers free money might just push the price of a $400,000 condominium nearer to $440,000, Finance Minister Bill Morneau would first of all like you to stop. (“You’re wrong,” he admonished a reporter who dared suggest it during a press conference in the budget lockup Tuesday.) But if all else fails and you’re forced to rent, the feds also found $10 billion extra over nine years to throw at the Rental Construction Financing Initiative, a CMHC program that offers low-interest loans to qualified builders. The goal is 42,500 new rental units in a decade.

Can’t even think of home ownership until you pay off your student loans? Again, the government is here to help: From now on you’ll pay the Bank of Canada’s prime interest rate, instead of prime plus 2.5 points. And for the first six months after you graduate, you’ll pay nothing. The budget document introduces us to Angela, a recent psychology grad carrying $13,500 in student debt who landed a job at “a medium-sized consumer goods company.” (It doesn’t matter where she works. The writers just wanted to add some colour.) Angela will save something like $2,000 in interest over 10 years.

There’s also the new Canada Training Benefit, which the government intends to help Canadians with “the evolving nature of work.” (Maybe your parents were right, Angela. Maybe that psych degree wasn’t the best idea, Angela.) Starting in 2020, the feds will chip in $250 a year, and you can use the accumulated credit to pay up to half the cost of courses or training. And you can draw on up to four weeks of EI to complete it.

« Newer PostsOlder Posts »

Powered by WordPress