Quotulatiousness

January 17, 2014

The Nanny State ethos – you’re too thick, so we’ll do the thinking for you

Filed under: Bureaucracy, Government — Tags: , , , , — Nicholas @ 08:37

At the Adam Smith Institute blog, Tim Worstall talks about the way regulatory agencies approach problems:

It’s claimed as one of the great victories for enlightened (sorry) regulation, the way that the EU and US have both banned the incandescent light bulb through bureaucratic action. The ban came about by raising the efficiency standards required: this meant that the traditional bulb could no longer be sold.

The argument in favour of doing things this way was, in public at least, that everyone’s too stupid (or, in a more polite manner, subject to hyperbolic discounting) to realise that the new bulbs will actually save them money in the long term by consuming less electricity. There are also the more cynical in the industry who insist that it’s actually a case of regulatory capture. The light bulb manufacturing companies managing to get us all away from using cheap as spit bulbs and onto something with a decent margin on it.

[…]

This has a number of implications in the larger world as well: for example, it means that bureaucratic regulation on car mileages (like CAFE in the US) is contra-indicated. A simple tax on petrol will drive up average mpg because we’re not all as thick as bricks. Assuming that climate change really is a problem that must be dealt with then a carbon tax is going to do the job. For we’re not all so dim that we cannot work out the utility of using fossil fuels or not given the change in prices.

That is, we don’t need to be regulated into behaviour, we can be influenced into it through the price system. Something that really shouldn’t be all that much of a surprise to us market liberals: for we’re the people who already insist that people do indeed respond to price incentives in markets.

January 9, 2014

QotD: The civil service delaying process

Filed under: Bureaucracy, Government, Humour, Quotations — Tags: , , , — Nicholas @ 09:24

Any unwelcome initiative from a minister can be delayed until after the next election by the Civil Service 12-stage delaying process:

1. Informal discussions
2. Draft proposal
3. Preliminary study
4. Discussion document
5. In-depth study
6. Revised proposal
7. Policy statement
8. Strategy proposal
9. Discussion of strategy
10. Implementation plan circulated
11. Revised implementation plans
12. Cabinet agreement

Jonathan Lynn, “Yes Minister Series: Quotes from the dialogue”, JonathanLynn.com

January 6, 2014

QotD: The illusion of a rational world

Filed under: Bureaucracy, Business, Government, Humour, Quotations — Tags: , , — Nicholas @ 17:28

To the very young, to schoolteachers, as also to those who compile textbooks about constitutional history, politics, and current affairs, the world is a more or less rational place. They visualize the election of representatives, freely chosen from among those the people trust. They picture the process by which the wisest and best of these become ministers of state. They imagine how captains of industry, freely elected by shareholders, choose for managerial responsibility those who have proved their ability in a humbler role. Books exist in which assumptions such as these are boldly stated or tacitly implied. To those, on the other hand, with any experience of affairs, these assumptions are merely ludicrous. Solemn conclaves of the wise and good are mere figments of the teacher’s mind. It is salutary, therefore, if an occasional warning is uttered on this subject. Heaven forbid that students should cease to read books on the science of public or business administration — provided only that these works are classified as fiction. Placed between the novels of Rider Haggard and H.G. Wells, intermingled with volumes about ape men and space ships, these textbooks could harm no one. Placed elsewhere, among works of reference, they can do more damage than might at first sight seem possible.

C. Northcote Parkinson, “Preface”, Parkinson’s Law (and other studies in administration), 1957.

January 5, 2014

Excerpt from Glenn Reynolds’ new book

Filed under: Bureaucracy, Economics, Education, USA — Tags: , , — Nicholas @ 10:19

The Wall Street Journal has an excerpt from The New School: How the Information Age Will Save American Education From Itself, the latest book by the Instapundit himself:

Though the GI Bill converted college from a privilege of the rich to a middle-class expectation, the higher education bubble really began in the 1970s, as colleges that had expanded to serve the baby boom saw the tide of students threatening to ebb. Congress came to the rescue with federally funded student aid, like Pell Grants and, in vastly greater dollar amounts, student loans.

Predictably enough, this financial assistance led colleges and universities to raise tuition and fees to absorb the resources now available to their students. As University of Michigan economics and finance professor Mark Perry has calculated, tuition for all universities, public and private, increased from 1978 to 2011 at an annual rate of 7.45%. By comparison, health-care costs increased by only 5.8%, and housing, notwithstanding the bubble, increased at 4.3%. Family incomes, on the other hand, barely kept up with the consumer-price index, which grew at an annual rate of 3.8%.

For many families, the gap between soaring tuition costs and stagnant incomes was filled by debt. Today’s average student debt of $29,400 may not sound overwhelming, but many students, especially at private and out-of-state colleges, end up owing much more, often more than $100,000. At the same time, four in 10 college graduates, according to a recent Gallup study, wind up in jobs that don’t require a college degree.

Students and parents have started to reject this unsustainable arrangement, and colleges and universities have felt the impact. According to a recent analysis by this newspaper, private schools are facing a long-term decline in enrollment. More than a quarter of private institutions have suffered a drop of 10% or more — in some cases, much more. Midway College in Kentucky is laying off around a dozen of its 54 faculty members; Wittenberg University in Ohio is eliminating nearly 30 of about 140 full-time faculty slots; and Pine Manor College in Massachusetts, with dorm space for 600 students but only 300 enrolled, has gone coed in hopes of bringing in more warm bodies.

Even elite institutions haven’t been spared, as schools such as Haverford, Morehouse, Oberlin and Wellesley have seen their credit ratings downgraded by Moody’s over doubts about the viability of their high tuition/high overhead business models. Law schools, including Albany Law School, Brooklyn Law School and Thomas Jefferson Law School, have also seen credit downgrades over similar doubts. And now Democrats on Capitol Hill are pushing legislation to give colleges “skin in the game” by clawing back federal aid money from schools with high student-loan default rates. Expect such proposals to get traction in 2014.

December 24, 2013

Reason.tv – The TSA’s 12 Banned Items of Christmas

Filed under: Bureaucracy, Government, Humour, USA — Tags: , , — Nicholas @ 09:33

Published on 23 Dec 2013

As travelers board planes this holiday, please be aware of 12 actual banned items from the Transportation Security Administration.

Indian gold bugs go home

Filed under: Bureaucracy, Business, India, Middle East — Tags: , , , , — Nicholas @ 09:19

The Indian government has been attempting to restrict the domestic gold market, but there’s a big loophole in the rules that many travellers are taking advantage of while they can:

Faced with curbs on gold imports and crash in international prices leaving it cheaper in other countries, gold houses and smugglers are turning to NRIs to bring in the yellow metal legally after paying duty. Any NRI, who has stayed abroad for more than six months, is allowed to bring in 1kg gold.

It was evident last week when almost every passenger on a flight from Dubai to Calicut was found carrying 1kg of gold, totalling up to 80kg (worth about Rs 24 crore). At Chennai airport, 13 passengers brought the legally permitted quantity of gold in the past one week.

“It’s not illegal. But the 80kg gold that landed in Calicut surprised us. We soon got information that two smugglers in Dubai and their links in Calicut were behind this operation, offering free tickets to several passengers,” said an official. The passengers were mostly Indian labourers in Dubai, used as carriers by people who were otherwise looking at illegal means, he said. “We have started tracing the origin and route of gold after intelligence pointed to the role of smugglers,” he said.

Reports from Kerala said passengers from Dubai have brought more than 1,000kg of gold in the last three weeks. People who pay a duty of Rs 2.7 lakh per kg in Dubai still stand to gain at least Rs 75,000 per kg, owing to the price difference in the two countries. Gold dealers in Kerala say most of this gold goes to jewellery makers in Tamil Nadu and Andhra Pradesh.

December 21, 2013

Overzealous regulators create nationwide Sriracha shortage

Filed under: Bureaucracy, Business, Food, Government, Health, USA — Tags: , — Nicholas @ 11:56

Baylen Linnekin on the latest attempt to be safer-than-safe in food regulation:

Sriracha rooster sauceLast week California health regulators ordered the makers of Sriracha hot sauce to suspend operations for 30 days. The 30-day hold comes despite the fact the product has been on the market for more than three decades and that “no recall has been ordered and no pathogenic bacteria have been found[.]”

So what’s the issue?

The problem, reports the Pasadena Star News, is that Sriracha is a raw food.

“Because Sriracha is not cooked, only mashed and blended, Huy Fong needs to make sure its bottles won’t harbor dangerous bacteria,” writes the Star News.

Aren’t three decades of sales sufficient proof of that fact?

“The regulations outlining this process have been in existence for years,” writes California health department official Anita Gore, in a statement she sent to L.A. Weekly, “but the modified production requirements were established for the firm this year.”

In other words, the state changed the rules of the game.

December 6, 2013

The devil’s-in-the-details department: Obamacare and volunteer firefighters

Filed under: Bureaucracy, Law, USA — Tags: , , — Nicholas @ 13:38

Talk about unintended consequences! Jim Geraghty linked to a disturbing issue for many Americans, but especially for Pennsylvanians: the risk of losing some of their volunteer firefighters due to an Obamacare rule. Ninety-seven percent of Pennsylvania fire departments are at least partially staffed by volunteers … this could be a very serious thing indeed.

Great. Now Obamacare Is Going to Louse Up Your Local Firehouse…

They had to pass the law so you could see what’s in it. Kind of like Pandora’s Box.

With any luck, Obamacare won’t close down your local firehouse, just curtail emergency response activities:

    The International Association of Fire Chiefs has asked the Internal Revenue Service, which has partial oversight of the law, to clarify if current IRS treatment of volunteer firefighters as employees means their hose companies or towns must offer health insurance coverage or pay a penalty if they don’t.

    The organization representing the fire chiefs has been working on the issue with the IRS and White House for months.

    “It could be a huge deal,” said U.S. Rep. Lou Barletta, R-11, Hazleton, who is seeking clarification from the IRS. “In Pennsylvania, 97 percent of fire departments are fully or mostly volunteer firefighters. It’s the fourth highest amount in the country.”

    So far, the IRS hasn’t decided what to do.

    Efforts to reach spokesmen for the IRS were unsuccessful.

    Under the fire chiefs’ organization’s interpretation, the concern goes like this:

    The health care reform law, known officially as the Patient Protection and Affordable Care Act and derisively by Republicans as Obamacare, requires employers with 50 or more full-time employees to offer health insurance. Companies with fewer than 50 employees do not have to offer insurance. Full-time employees are defined as an employee who works 30 or more hours a week.

    Such employers who don’t offer health insurance must pay fines.

    The requirement is complicated by differing interpretations about the status of volunteer firefighters within the federal government. The Department of Labor, according to the fire chiefs group, classifies most volunteers as non-employees, but the IRS considers all volunteer firefighters and emergency medical personnel to be employees of their departments.

    “If the IRS classifies volunteer firefighters and emergency medical personnel as employees in their final rule, fire departments may be unintentionally forced to comply with requirements that could force them to curtail their emergency response activities or close entirely,” the chiefs’ group says on its website.

December 3, 2013

Some owls are more (politically) valuable than others

Filed under: Bureaucracy, Environment, Government, USA — Tags: , , — Nicholas @ 10:26

In his weekly NFL column, Gregg Easterbrook discusses the once-hot owl preservation efforts which have recently turned into owl execution efforts:

Those who can remember the dim mists of history — say, a couple decades ago — recall that preservation of the northern spotted owl was a major American political issue during the 1980s, then played a role in the 1992 presidential election campaign, then was among the high-profile matters of the Bill Clinton administration. Decisions during the 1990s by the Fish and Wildlife Service, coupled to judge’s orders, effectively ended much of the logging in the Pacific Northwest. This pleased affluent landowners, cost jobs for average people and shifted timber production to Malaysia, where there are almost no environmental regulations.

There are three other birds quite similar to the northern spotted, whose numbers continue to decline. The California spotted owl has a stable population. The Mexican spotted owl probably is in decline: about five years ago, a federal judge placed land-use restrictions on areas of Arizona, Colorado and New Mexico to protect the Mexican spotted. The barred owl, the third bird similar to northern spotted, doesn’t need special protection as it is population is expanding, based on natural competition.

So the plan is to start shooting barred owls. Excuse me, “culling” them. The Fish and Wildlife Service wants to kill at least 3,000 barred owls, which are so similar to spotted owls that a trained eye is needed to distinguish the types. Spotted owls are federally protected, by the Endangered Species Act. Barred owls are not protected. So let’s kill the disfavored owls in order to help the politically correct owls!

As recently as two generations ago, barred owls mainly were found east of the Mississippi, where they are commonly called hoot owls, for their whoot-woo-who territorial marking sound. The recovery of forests across the United States — total forested acres have been increasing for a quarter century — created a migratory pathway for barred owls to spread west. This development was unexpected; the literature of owl protection depicts such birds as so habitat-dependent they are vulnerable to any change. It turns out the barred owl is not fragile, able to adapt to many habitats. Barred owls are also more aggressive than spotted owls; the worry among defenders of the latter is that barred owls will out-compete spotted owls and take their territory in the Pacific Northwest.

[…]

Underneath this issue is a fallacy in human understanding of nature: the assumption that the environment and its creatures are brittle things whom the slightest disturbance will render extinct. The environment has survived ice ages, comet impacts and climate change far more dramatic than any that artificial greenhouse gas may cause. Inconveniently for Pacific Northwest environmental lobbyists, birds extremely similar to spotted owls are doing just fine on their own. So get rid of the evidence.

December 2, 2013

The FDA and 23andMe

Filed under: Bureaucracy, Business, Health, USA — Tags: , , — Nicholas @ 11:24

Kyle Smith on the FDA’s sudden interest in shutting down private DNA testing company 23andMe:

… the FDA has the power to regulate medical devices, which is the pretext it is using to stop 23andMe. Ordering it to stop selling its personal genome service, the FDA declared that the tube “is a device within the meaning of section 201(h) of the FD&C Act, 21 U.S.C. 321(h), because it is intended for use in the diagnosis of disease or other conditions or in the cure, mitigation, treatment or prevention of disease, or is intended to affect the structure or function of the body.’

It would seem that 23andMe could simply put the words, “not intended for us in the diagnosis, cure, mitigation, treatment or prevention of disease” on its website and satisfy the FDA, but we all know that the motto of today’s federales is “We make it up as we go along.” The FDA seems determined to conduct a lengthy war with 23andMe.

[…]

Using the same reasoning, the FDA might as well shut down WebMd.com because people might type their symptoms into the site, and the response might affect whether or not they choose to go to a doctor. Any computer or iPhone thereby becomes a “medical device” that people can use for the “diagnosis, cure, mitigation, treatment or prevention of disease.”

Come to think of it, that thermometer you use to check your temperature is pretty dangerous too — it might give you either a false positive or a false negative — but why stop there? You exercise to mitigate or prevent disease, don’t you? Maybe the FDA should take your running shoes and your yoga pants away.

November 29, 2013

We’re from the FDA, we’re here to help you

Filed under: Bureaucracy, Government, Health, Science — Tags: , , , — Nicholas @ 09:19

Nick Gillespie on the mindnumbingly awful exercise of FDA regulatory power in shutting down personal DNA testing company 23andMe:

Personal genetic tests are safe, innovative, and the future of medicine. So why is the most transparent administration ever shutting down a cheap and popular service? Because it can.

In its infinite wisdom, the Food and Drug Administration (FDA) has forbidden the personal genetic testing service 23andMe from soliciting new customers, claiming the company hasn’t proven the validity of its product.

The real reason? Because when it comes to learning about your own goddamn genes, the FDA doesn’t think you can handle the truth. That means the FDA is now officially worse than Oedipus’s parents, Dr. Zaius, and the god of Genesis combined, telling us that there are things that us mere mortals just shouldn’t be allowed to know.

23andMe allows you to get rudimentary information about your genetic makeup, including where your ancestors came from and DNA markers for over 240 different hereditary diseases and conditions (not all of them bad, by the way). Think of it as the H&M version of the haute couture genetic mark-up that Angelina Jolie had done prior to having the proactive mastectomy that she revealed this year.

[…]

Peter Huber of the Manhattan Institute, a conservative think tank, has an important new book out called The Cure in the Code: How 20th Century Law is Undermining 21st Century Medicine. Huber writes that whatever sense current drug-approval procedures once might have had, their day is done. Not only does the incredible amount of time and money — 12 years and $350 million at a minimum — slow down innovation, it’s based on the clearly wrong idea that all humans are the same and will respond the same way to the same drugs.

Given what we already know about small but hugely important variations in individual body chemistry, the FDA’s whole mental map needs to be redrawn. “The search for one-dimensional, very simple correlations — one drug, one clinical effect in all patients — is horrendously obsolete,” Huber told me in a recent interview. And the FDA’s latest action needs to be understood in that context — it’s just one more way in which a government which now not only says we must buy insurance but plans whose contours are dictated by bureaucrats who arbitrarily decide what is best for all of us.

November 21, 2013

“The food police have a gargantuan appetite for ordering other people around”

Filed under: Bureaucracy, Business, Food, Health, USA — Tags: , — Nicholas @ 10:32

In Reason, A. Barton Hinkle explains why the Food and Drug Administration’s latest regulatory move may cost more than a billion dollars, require millions of hours of work … and provide no measurable benefits whatsoever:

In comments shortly after the menu labeling rules were proposed, the Center for Science in the Public Interest — they are the folks forever hectoring the public about the dangers of Chinese food, Italian food, movie theater popcorn, etc. — insisted that “if a restaurant has both an inside and drive-thru menu board, both must list calories.” And: “The calories should be at least as large and prominent as the name or price of the item.” And: “Calories should be posted for each size beverage available.” And: “The color, font size, font type, contrasting background, and other characteristics should all be comparable to the name and price of the item.”

What’s more: “Deli items or prepared foods that are dished up into standard containers should have signs posted next to each item with calorie counts for each container size available. For example, potato salad that is typically dished up into half-pint, pint and quart containers should list calories for one half-pint of potato salad, one pint of potato salad and a quart of potato salad.”

Rules such as these, the CSPI says, should apply not just to restaurants and supermarket delis but also to “salad bars, buffet lines, cafeteria lines, and self-serve, fountain soft drinks.” Moreover, “Calories must be posted for each pizza topping, sandwich component, omelet selection, sundae topping, or salad ingredient or dressing.”

The object of such Byzantine busybody-ness is plain enough: to “nudge” (former Obama regulatory czar Cass Sunstein’s favorite word) people to ingest fewer calories.

Just one small problem: It doesn’t work.

“Restaurant menu labels don’t work, study shows,” reported Today back in July: “No matter how much calorie information is on the menu list, people still choose the food they like, not what’s supposed to be healthier, researchers from Carnegie Mellon reported Thursday. … ‘Putting calorie labels on menus really has little or no effect on people’s ordering behavior at all,’ says Julie Downs, lead author of the new study published Thursday in the American Journal of Public Health.”

November 18, 2013

The Pentagon (accounting) papers

Filed under: Bureaucracy, Military, USA — Tags: , , , — Nicholas @ 17:25

Unlike other branches of the US government, the Department of Defence still isn’t properly accounting for all its expenditure, says Scot J. Paltrow in a Reuters report:

The Defense Department’s 2012 budget totaled $565.8 billion, more than the annual defense budgets of the 10 next largest military spenders combined, including Russia and China. How much of that money is spent as intended is impossible to determine.

In its investigation, Reuters has found that the Pentagon is largely incapable of keeping track of its vast stores of weapons, ammunition and other supplies; thus it continues to spend money on new supplies it doesn’t need and on storing others long out of date. It has amassed a backlog of more than half a trillion dollars in unaudited contracts with outside vendors; how much of that money paid for actual goods and services delivered isn’t known. And it repeatedly falls prey to fraud and theft that can go undiscovered for years, often eventually detected by external law enforcement agencies.

The consequences aren’t only financial; bad bookkeeping can affect the nation’s defense. In one example of many, the Army lost track of $5.8 billion of supplies between 2003 and 2011 as it shuffled equipment between reserve and regular units. Affected units “may experience equipment shortages that could hinder their ability to train soldiers and respond to emergencies,” the Pentagon inspector general said in a September 2012 report.

Because of its persistent inability to tally its accounts, the Pentagon is the only federal agency that has not complied with a law that requires annual audits of all government departments. That means that the $8.5 trillion in taxpayer money doled out by Congress to the Pentagon since 1996, the first year it was supposed to be audited, has never been accounted for. That sum exceeds the value of China’s economic output last year.

November 13, 2013

QotD: Trade unions

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

If they are timid in some respects, the Trade Unions are aggressive in negotiation and cannot be otherwise. To keep in business a union has to do something. Each year there must be a fresh demand, without which the union will lose membership. Members expect to see some return for their subscriptions and union officials are not paid to be inactive. Lacking a grievance, they will have to invent one. Realizing this, the directors must make a show of reluctance, postponing the inevitable concession until it looks like a victory for the employees. If the union is quiescent it will lose membership, most probably to another union. Its officials, honorary or paid, can always gain consequence on the other hand, from their decision to do battle. Any Trade Union has, therefore, a built-in aggressiveness, without which it can hardly survive. Nothing can be more damaging to the union official than the rumour that he is friendly with the management. This can only be the result of blackest treachery, it is assumed, and the official has to stage a conflict in order to secure his own re-election. Aggressive toward management, the unions are almost as aggressive toward each other, competing for membership and staging frontier disputes over the exact territory which belongs to each. Nor is this unrest the fault of individuals. It is a characteristic of union organization and one for which there is no obvious remedy.

C. Northcote Parkinson, “The Feet of Clay”, Left Luggage, 1967.

November 9, 2013

Barack Obama on the difference between private enterprise and government

Filed under: Bureaucracy, Business, Government, Technology, USA — Tags: , , , — Nicholas @ 11:43

Ann Althouse finds it amazing that President Obama clearly understands why his campaign website was so effective and why the Obamacare website fails on so many levels, but can’t generalize that knowledge to the whole public/private sphere:

In yesterday’s interview with Chuck Todd, Obama said:

    You know, one of the lessons — learned from this whole process on the website — is that probably the biggest gap between the private sector and the federal government is when it comes to I.T. …

    Well, the reason is is that when it comes to my campaign, I’m not constrained by a bunch of federal procurement rules, right?

That is, many have pointed out that his campaign website was really good, so why didn’t that mean that he’d be good at setting up a health insurance website? The answer is that the government is bad because the government is hampered by… government!

    And how we write — specifications and — and how the — the whole things gets built out. So part of what I’m gonna be looking at is how do we across the board, across the federal government, leap into the 21st century.

I love the combination of: 1. Barely able to articulate what the hell happens inside these computer systems, and 2. Wanting to leap!

    Because when it comes to medical records for veterans, it’s still done in paper. Medicaid is still largely done on paper.

    When we buy I.T. services generally, it is so bureaucratic and so cumbersome that a whole bunch of it doesn’t work or it ends up being way over cost.

This should have made him sympathetic to the way government burdens private enterprise, but he’s focused on liberating government to take over more of what has been done privately. And yet there’s no plan, no idea about what would suddenly enable government to displace private businesses competing to offer a product people want to buy.

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