Our political bureaucracies are grasping and vicious, and some of the larger of them are dominated by people who are, if we’re being frank, not especially bright. No society can long thrive by making its creators and innovators subservient to its pimps and thieves. But agencies with the power to tax or the power to pay themselves out of taxes have the power to command, and, human nature being what it is, it is not surprising that their executives use that power to extort for themselves extraordinary levels of compensation (occasionally through criminal means, as in the Bell case), even as they bore us all to death talking about the sacrifices they have endured on behalf of their careers in “public service.” […]
It is baffling that my progressive friends lament the influence of so-called big money on government while at the same time proposing to expand the very scope and scale of that government that makes influencing it such a good investment. Where government means constables, soldiers, judges, and precious little else, it is not much worth capturing. Where government means somebody whose permission must be sought before you can even begin to earn a living, when it determines the prices of products, the terms of competition, and the interest rates on your competitors’ financing, then it is worth capturing. That much is obvious. Progressives refuse to see the inherent corruption in the new ruling class — and, make no mistake, we now have a ruling class — because it is largely made up of them, their colleagues, and people who are socially and culturally like them and their colleagues. Getting a couple hundred grand a year to teach one class doesn’t look so crazy if you think you might be the guy who gets the check next time around. You can be an anti-elite crusader on behalf of the poor and disenfranchised from your million-dollar mansion, even if you never find yourself so much as downwind from a poor person, without fearing charges of hypocrisy: Ask Senator Warren. Of course Chelsea Clinton does not have the sense or the good taste to be embarrassed when talking about her blasé attitude toward money: Money is invisible to her for the same reason that water is invisible to a fish — she’d notice it if it weren’t there, and flap like a desperate landed mackerel until she’d secured her next big payday.
Kevin D. Williamson, “Politics Pays”, National Review, 2014-06-29.
June 30, 2014
QotD: The new American ruling class
June 27, 2014
FATCA puts “private-sector assets on a bonfire so that government can collect the ashes”
In The Economist, a look at the looming deadline for non-US financial institutions to start turning over all their data on their US clients to the IRS:
FATCA stands for Foreign Account Tax Compliance Act, an American law passed in 2010 to crack down on the use of offshore banks, particularly in Zurich and Geneva, to hide taxable assets. The law, part of which takes effect on July 1st, is the most important and controversial development in decades in the international fight against tax evasion. It is feared and loathed by moneymen because of its complexity, its global reach and the high cost of compliance. One senior banker denounces it as “breathtakingly extraterritorial”.
The US government is so worried that US citizens are stiffing them for “their share” that they’re willing to risk blowing up the financial lives of millions of Americans living and working in other countries just to get those theoretical “missing” taxes. I started to type “ironically”, but I really mean “typically” the measure will cause great hardship for law-abiding Americans and do little to inconvenience the scofflaws.
The financial industry is struggling to work out which funds, trusts and other non-bank entities count as “financial institutions” under the law. There is also confusion over who is a “US person”. The definition is broad and includes not only citizens but current and former green-card holders and non-Americans with various personal and economic ties to the United States. Some Canadian “snowbirds” who travel to America for part of each year could be caught in the net, says Allison Christians, a tax professor at McGill University. As the complexities of implementation have grown apparent, the American authorities have had to extend several deadlines. Banks, for instance, will get a two-year moratorium on enforcement as long as they are striving to comply.
FATCA has already sent a chill through the 7m Americans who live abroad. Thousands have been told by their local banks and investment advisers that they no longer want their custom because it is too much hassle. Many others will now have to spend thousands of dollars to straighten out their paperwork with the IRS, even if they owe no tax (and most do not, since they will have paid a greater amount abroad, which counts as a credit against tax owed in America).
[…]
FATCA is about “putting private-sector assets on a bonfire so that government can collect the ashes,” complains Richard Hay of Stikeman Elliot, a law firm. Mark Matthews, a former deputy commissioner of the IRS now with Caplin & Drysdale, another law firm, argues that the effort put into hunting offshore tax evaders is disproportionate: the sums they rob from the public purse “look like a pinprick” compared with other types of tax dodging, such as the under-declaration of income by small businesses.
QotD: The Iron Law of Bureaucracy
[I]n any bureaucratic organization there will be two kinds of people:
First, there will be those who are devoted to the goals of the organization. Examples are dedicated classroom teachers in an educational bureaucracy, many of the engineers and launch technicians and scientists at NASA, even some agricultural scientists and advisors in the former Soviet Union collective farming administration.
Secondly, there will be those dedicated to the organization itself. Examples are many of the administrators in the education system, many professors of education, many teachers union officials, much of the NASA headquarters staff, etc.
The Iron Law states that in every case the second group will gain and keep control of the organization. It will write the rules, and control promotions within the organization.
Jerry Pournelle, “The Iron Law of Bureaucracy”, Chaos Manor Special Reports, 2010-09-11.
June 21, 2014
QotD: The bureaucratic revolution
In 1939, Bruno Rizzi, a largely forgotten Communist intellectual, wrote a hugely controversial book, The Bureaucratization of the World. Rizzi argued that the Soviet Union wasn’t Communist. Rather, it represented a new kind of system, what Rizzi called “bureaucratic collectivism.” What the Soviets had done was get rid of the capitalist and aristocratic ruling classes and replace them with a new, equally self-interested ruling class: bureaucrats.
The book wasn’t widely read, but it did reach Bolshevik theoretician Leon Trotsky, who attacked it passionately. Trotsky’s response, in turn, inspired James Burnham, who used many of Rizzi’s ideas in his own 1941 book The Managerial Revolution, in which Burnham argued that something similar was happening in the West. A new class of bureaucrats, educators, technicians, regulators, social workers, and corporate directors who worked in tandem with government were reengineering society for their own benefit. The Managerial Revolution was a major influence on George Orwell’s 1984.
Now, I don’t believe we are becoming anything like 1930s Russia, never mind a real-life 1984. But this idea that bureaucrats — very broadly defined — can become their own class bent on protecting their interests at the expense of the public seems not only plausible but obviously true.
The evidence is everywhere. Every day it seems there’s another story about teachers’ unions using their stranglehold on public schools to reward themselves at the expense of children. School-choice programs and even public charter schools are under vicious attack, not because they are bad at educating children but because they’re good at it. Specifically, they are good at it because they don’t have to abide by rules aimed at protecting government workers at the expense of students.
[…]
Working for the federal government simply isn’t like working for the private sector. Government employees are essentially unfireable. In the private sector, people lose their jobs for incompetence, redundancy, or obsolescence all the time. In government, these concepts are virtually meaningless. From a 2011 USA Today article: “Death — rather than poor performance, misconduct or layoffs — is the primary threat to job security at the Environmental Protection Agency, the Small Business Administration, the Department of Housing and Urban Development, the Office of Management and Budget and a dozen other federal operations.”
Jonah Goldberg, “Of the Bureaucrats, by the Bureaucrats, for the Bureaucrats: The naked self-interest of the government-worker class”, National Review, 2014-06-20.
June 19, 2014
June 18, 2014
QotD: Obesity and the federalization of food
One of the problems with scrupulously “sanitized” food is that it doesn’t taste of anything very much, which may be why people consume it in large quantities: With food, if the taste doesn’t satisfy you, you chow until the sheer quantity does. I’ve no research on the subject and my theory may be as full of holes as a Swiss cheese, but the fact is that the federalization of food has coincided with the massive expansion of obesity in America, and I’m inclined to think these two things are not unrelated.
Mark Steyn, “Cheeseboarder Patrol”, SteynOnline.com, 2014-06-12.
June 16, 2014
June 15, 2014
Questions that need to be asked of the IRS in wake of email loss announcement
Sharyl Attkisson has a set of questions that someone in congress or within the Justice department should be directing toward the IRS after Friday’s announcement that, oopsie, we kinda sorta lost those Lois Lerner emails you were interested in reading:
- Please provide a timeline of the crash and documentation covering when it was first discovered and by whom; when, how and by whom it was learned that materials were lost; the official documentation reporting the crash and federal data loss; documentation reflecting all attempts to recover the materials; and the remediation records documenting the fix. This material should include the names of all officials and technicians involved, as well as all internal communications about the matter.
- Please provide all documents and emails that refer to the crash from the time that it happened through the IRS’ disclosure to Congress Friday that it had occurred.
- Please provide the documents that show the computer crash and lost data were appropriately reported to the required entities including any contractor servicing the IRS. If the incident was not reported, please explain why.
- Please provide a list summarizing what other data was irretrievably lost in the computer crash. If the loss involved any personal data, was the loss disclosed to those impacted? If not, why?
- Please provide documentation reflecting any security analyses done to assess the impact of the crash and lost materials. If such analyses were not performed, why not?
- Please provide documentation showing the steps taken to recover the material, and the names of all technicians who attempted the recovery.
- Please explain why redundancies required for federal systems were either not used or were not effective in restoring the lost materials, and provide documentation showing how this shortfall has been remediated.
- Please provide any documents reflecting an investigation into how the crash resulted in the irretrievable loss of federal data and what factors were found to be responsible for the existence of this situation.
- I would also ask for those who discovered and reported the crash to testify under oath, as well as any officials who reported the materials as having been irretrievably lost.
Losing an ordinary email archive happens now and again. Losing an email archive that is the focus of some fascinating questions about the IRS being used as a partisan oppression device against political opponents? That will take a lot of explaining away, as it’s just too convenient and the timing is highly suspicious. What is even more interesting is that the IRS hinted that since they can’t find those emails, they’re thinking of abandoning the investigation. So, clearly there’s nothing to see here and we should all just move along now.
Update: This seems relevant.
NY Times goes DefCon 1 over missing WH emails, calls for Congressional action – in 2008 http://t.co/lj3PA9IRlf
— David Burge (@iowahawkblog) June 14, 2014
Update, 17 June: Megan McArdle assesses whether this “innocent” explanation is plausible.
In short, yes, there is an innocent explanation: An accident combined with a really bad e-mail storage policy to wipe out critical records. There’s also a semi-innocent explanation, where really bad storage policy could have enabled Lerner to arrange a hard drive accident that destroyed incriminating e-mails before she had to respond to Camp’s initial letter. I find the innocent explanation much more plausible than a conspiracy, or even the semi-innocent explanation — even assuming that she was conspiring with the White House, why bother with the elaborate schemes when you could just send your incriminating e-mails from an outside account?
But that still leaves me really concerned about the terrible policy decisions. The timing of the data loss is incredibly suspicious, and the IRS has left itself completely unable to answer those suspicions with anything better than a shrug. It should expect — in fact, it should request — a thorough outside investigation of this incident, but even the most scrupulous audit will not be able to entirely quell the worry that the IRS enabled a rogue agent to get away with destroying evidence.
To believe the IRS requires a pretty low opinion of government competence. My friends who work in regulated sectors such as finance are outraged by the IRS’s description of how it was running its backup process, because the government subjects them to constantly ratcheting standards for document retention — specifying how long, and on what format, they have to keep every communication ever generated by their firms. How dare they demand higher standards of regulated companies than they do of the regulators?
In 2014, every government agency should be storing every e-mail that goes in or out in an easily accessible format. That they weren’t bothering suggests that the IRS does not expect to deliver the kind of accountability that it routinely demands of taxpayers. That’s potentially a much bigger problem than anything Lois Lerner stands accused of — and it should be rectified, government-wide, with all due speed.
A few minutes later, Megan sent out this Twitter update:
Okay, one crash I believe. Six crashes is starting to strain my credibility gland. http://t.co/CIBkP6xjR2
— Megan McArdle (@asymmetricinfo) June 17, 2014
Pennsylvania middle school kids are apparently huge druggies
The average middle school kid in Pennsylvania must be a druggie, if the local school boards mandate drug testing for grade five and up students:
At Susquenita Middle School in Duncannon, Pa., a community 20 minutes north of Harrisburg, an eighth-grader chose to skip the National Junior Honor Society this year, reports Eric Veronikis at PennLive:
Leila May was drug-tested once during her fifth grade year, once in sixth grade and three times as a seventh grader because Susquenita School District randomly tests students in grades five through 12 who participate in extracurricular activities and apply for parking permits.
She always tested negative but her parents have tired of the intrusion and embarrassment and her mother Melinda says they’re weren’t willing to sign another consent form. “It’s sad that this is what we had to resort to. It’s ridiculous.”
Twelve years ago, the U.S. Supreme Court ruled 5-4 in Board of Education v. Earls (2002) that schools generally have discretion to impose drug testing on participants in extracurricular activities even without particularized suspicion, on the grounds that such activities are voluntary.
Well, I guess the local school board must have good reasons to implement the kind of drug testing regime that professional sports leagues or military organizations might use … although I’m scratching my head to figure out what they could possibly be.
June 14, 2014
QotD: The sins of the modern university system
Few if any other professions — not law, medicine, finance, engineering, etc. — offer guaranteed lifetime employment after a six-year apprenticeship. Tenure was predicated on a simple premise: The protection of faculty free speech and instruction was worth the possible downside of complacency and an absence of serious ongoing faculty audit. Whatever may once have been the case, in our time tenure does not ensure free expression, but instead a banal orthodoxy, in which 90 percent of the faculty in the humanities share the same progressive outlook. Tenure also created a caste system far more rigid than anything found in private enterprise, while a huge permanent faculty class ensured inflexibility in scheduling and budgeting. The associate or full professor enjoyed a lifelong right of selection of his classes without too much worry over whether they were either needed or taught well. Worse, the nontenured faculty member, in the fashion of the Middle Ages, was admitted to the guild only if his tenured peers believed that he was agreeable in politics and attitude. He was usually judged by teaching and publication criteria that did not necessarily apply to his board of overseers, many of whom had achieved tenure 20 years earlier under entirely different criteria.
[…]
The abuse of lecturers, part-timers, and graduate students is institutionalized. In a word, the university is the most exploitative institution operating at present in the United States, protected by the notion that it is progressive and that its protocols cannot possibly be understood by the ordinary public. Temporary and adjunct faculty members often have degrees as good as those of their tenured betters. Often their teaching records and publications are comparable, if not superior. They may teach the same classes as permanent faculty do, and yet often receive about half the compensation. Were Wal-Mart or a coal mine to operate under such protocols, it would earn Labor Department sanctions. At some public universities, nearly half of the curriculum is taught by part-time faculty — in effect a subsidy that allows the tenured caste to teach smaller and less-in-demand classes, where less time is needed for preparation and grading. Worse still, universities knowingly turn out too many PhDs in the humanities, which ensures a glut of job applicants, which, again, ensures a continued supply of cheap temps to sustain tenured privilege.
Victor Davis Hanson, “The Outlaw Campus”, VDH’s Private Papers, 2014-01-07
June 13, 2014
QotD: Mathematical formula describing bureaucratic growth
Dealing with the problem of pure staff accumulation, all our researches so far completed point to an average increase of 5.75 per cent per year. This fact established, it now becomes possible to state Parkinson’s Law in mathematical form: In any public administrative department not actually at war, the staff increase may be expected to follow this formula —
x=(2km + l) / n
k is the number of staff seeking promotion through the appointment of subordinates; l represents the difference between the ages of appointment and retirement; m is the number of man-hours devoted to answering minutes within the department; and n is the number of effective units being administered. x will be the number of new staff required each year. Mathematicians will realize, of course, that to find the percentage increase they must multiply x by 100 and divide by the total of the previous year, thus:
100 (2km + l) / y n %
where y represents the total original staff. This figure will invariably prove to be between 5.17 per cent and 6.56 per cent, irrespective of any variation in the amount of work (if any) to be done.
The discovery of this formula and of the general principles upon which it is based has, of course, no political value. No attempt has been made to inquire whether departments ought to grow in size. Those who hold that this growth is essential to gain full employment are fully entitled to their opinion. Those who doubt the stability of an economy based upon reading each other’s minutes are equally entitled to theirs. It would probably be premature to attempt at this stage any inquiry into the quantitative ratio that should exist between the administrators and the administered. Granted, however, that a maximum ratio exists, it should soon be possible to ascertain by formula how many years will elapse before that ratio, in any given community, will be reached. The forecasting of such a result will again have no political value. Nor can it be sufficiently emphasized that Parkinson’s Law is a purely scientific discovery, inapplicable except in theory to the politics of the day. It is not the business of the botanist to eradicate the weeds. Enough for him if he can tell us just how fast they grow.
C. Northcote Parkinson, “Parkinson’s Law, or the rising pyramid”, Parkinson’s Law (and other studies in administration), 1957.
June 12, 2014
QotD: Regulating cheese
France, for all its faults, has genuinely federalized food: a distinctive cheese every 20 miles down the road. In America, meanwhile, the food nannies are lobbying to pass something called the National Uniformity for Food Act. There’s way too much of that already.
The federalization of food may seem peripheral to national security issues, and the taste of American milk — compared with its French or English or even Québécois equivalents — may seem a small loss. But take almost any area of American life: what’s the more common approach nowadays? The excessive government regulation exemplified by American cheese or the spirit of self-reliance embodied in the Second Amendment? On a whole raft of issues from health care to education the United States is trending in an alarmingly fromage-like direction.
Mark Steyn, “Live Brie or Die!” SteynOnline.com, 2014-03-13
June 11, 2014
LA court delivers a major blow against tenure for teachers in California
The Los Angeles Times on yesterday’s decision:
Teachers union officials denounced a ruling Tuesday by a Los Angeles County Superior Court judge deeming job protections for teachers in California as unconstitutional as a misguided attack on teachers and students.
The ruling represents a major loss for the unions and a groundbreaking win by attorneys who argued that state laws governing teacher layoffs, tenure and dismissals harm students by making them more likely to suffer from grossly ineffective instruction.
If the preliminary ruling becomes final and is upheld, the effect will be sweeping across California and possibly the nation.
Judge Rolf M. Treu ruled, in effect, that it was too easy for teachers to gain strong job protections and too difficult to dismiss those who performed poorly in the classroom. If the ruling stands, California will have to craft new rules for hiring and firing teachers.
[…]
The Silicon Valley-based group Students Matter brought the lawsuit on behalf of nine students, contending that five laws hindered the removal of ineffective teachers.
The result, attorneys for the plaintiffs said, is a workforce with thousands of “grossly ineffective” teachers, disproportionately hurting low-income and minority students. As a result, the suit argued, the laws violated California’s constitution, which provides for equal educational opportunity.
The laws were defended by the state of California and the two largest teacher unions — the California Teachers Assn. and the California Federation of Teachers. Their attorneys countered that it is not the laws but poor management that is to blame for districts’ failing to root out incompetent instructors.
June 3, 2014
QotD: Parkinson’s Law
Work expands so as to fill the time available for its completion. General recognition of this fact is shown in the proverbial phrase “It is the busiest man who has time to spare.” Thus, an elderly lady of leisure can spend the entire day in writing and dispatching a postcard to her niece at Bognor Regis. An hour will be spent in finding the postcard, another in hunting for spectacles, half an hour in a search for the address, an hour and a quarter in composition, and twenty minutes in deciding whether or not to take an umbrella when going to the mailbox in the next street. The total effort that would occupy a busy man for three minutes all told may in this fashion leave another person prostrate after a day of doubt, anxiety, and toil.
C. Northcote Parkinson, “Parkinson’s Law, or the rising pyramid”, Parkinson’s Law (and other studies in administration), 1957.
