Like all people with bad habits, politicians and bureaucrats are infinitely inventive when it comes to rationalizing the European Project, though they’re inventive in nothing else. Without the Union, they say, there would be no peace; when it’s pointed out that the Union is the consequence of peace, not its cause, they say that no small country can survive on its own. When it is pointed out that Singapore, Switzerland, and Norway seem to have no difficulties in that regard, they say that pan-European regulations create economies of scale that promote productive efficiency. When it is pointed out that European productivity lags behind the rest of the world’s, they say that European social protections are more generous than anywhere else. If it is then noted that long-term unemployment rates in Europe are higher than elsewhere, another apology follows. The fact is that for European politicians and bureaucrats, the European Project is like God — good by definition, which means that they have subsequently to work out a theodicy to explain, or explain away, its manifest and manifold deficiencies.
[. . .]
The personal interests of European politicians and bureaucrats, with their grossly inflated, tax-free salaries, are perfectly obvious. For politicians who have fallen out of favor at home, or grown bored with the political process, Brussels acts as a vast and luxurious retirement home, with the additional gratification of the retention of power. The name of a man such as European Council president Herman Van Rompuy, whose charisma makes Hillary Clinton look like Mata Hari, would, without the existence of the European Union, have reached most of the continent’s newspapers only if he had paid for a classified advertisement in them. Instead of which, he bestrides the European stage if not like a colossus exactly, at least like the spread of fungus on a damp wall.
Corporate interests, ever anxious to suppress competition, approve of European Union regulations because they render next to impossible the entry of competitors into any market in which they already enjoy a dominant position, while also allowing them to extend their domination into new markets. That is why the CAC40 of today (the index of the largest 40 companies on the French stock exchange) will have more or less the same names 100 years hence.
More interestingly, perhaps, Hannan explains the European Union’s corruption of so-called civil society. Suppose you have an association for the protection of hedgehogs because you love hedgehogs. The European Union then offers your association money to expand its activities, which of course it accepts. The Union then proposes a measure allegedly for the protection of hedgehogs, but actually intended to promote a large agrarian or industrial interest over a small one, first asking the association’s opinion about the proposed measure. Naturally, your association supports the Union because it has become dependent on the Union’s subsidy. The Union then claims that it enjoys the support of those who want to protect hedgehogs. The best description of this process is fascist corporatism, which so far (and it is of course a crucial difference) lacks the paramilitary and repressive paraphernalia of real fascism.
Theodore Dalrymple, “Rejecting the European Project”, City Journal, 2012-09-07
September 8, 2012
QotD: The European Project
September 4, 2012
US Army’s JTRS program a poster child for development failure
Strategy Page has the details:
It’s been eleven months now since the U.S. Army cancelled its 15 year effort to develop the JTRS (Joint Tactical Radio System). This program cost over $6 billion and has been a major embarrassment for the U.S. Department of Defense. Actually, JTRS still exists, on paper, but its goal, to provide better combat radios, has been accomplished by adopting civilian radios that do what the troops needed done and calling it JTRS. In the time the army spent working on JTRS some $11 billion was spent on buying more radios using existing designs, and a lot of off-the-shelf equipment incorporating stuff JTRS was supposed to do.
JTRS was yet another example of a military development project that got distracted, and bloated, trying to please everyone. There was, in a word, no focus. There’s been a lot of this in the last decade. That’s what killed the Comanche light attack helicopter, the Crusader self-propelled howitzer, FCS (Future Combat System), the Seawolf SSN, the DDG-1000 destroyer, B-2 bomber, F-22 fighters and several military space satellite projects. In all cases some of the technology developed was put to use in cheaper systems and sometimes a few of the cancelled systems were built (three Seawolfs, three DDG-1000s, 21 B-2s and 187 F-22s). These cancellations and cutbacks saved over half a trillion dollars. That goes a long way towards paying for projects that were not cancelled and are nearly half a trillion dollars over budget. But overall these failures were expensive and embarrassing.
JTRS, however, was the poster child of what usually goes wrong and how it impacts the combat troops. After all, radios are something personnel in all services use a lot. The main problem with JTRS was that the troops needed digital (for computer stuff) and analog (traditional radio) communications in one box and it had to be programmable, in order to handle new applications and the need to communicate with other radio types. That’s what JTRS was supposed to do but it never happened. The procurement bureaucracy and government contractors consumed over six billion dollars but never quite got anything useful out the door.
August 27, 2012
Central planning is always attractive to the ones who see themselves in charge
At the Why Nations Fail blog, Daron Acemoglu and James Robinson explain that central planning is not just a Marxist idea:
Essentially central planning is not about the efficient allocation of economic resources, it is about control.
Central planning maximizes the extent of control that the state, and the people running the state, exercise. The desire to control others is a constant in history and is part and parcel of the construction of states. If the state can grab all the land and resources and control who and on what terms people get access to them, then this maximizes control, even if it sacrifices economic efficiency.
This sort of economic and political control — not Marxist ideology — is what central planning is all about. This is not to deny that Marxist ideology supported and legitimized central planning in several 20th-century societies. But it is to emphasize that the emergence and persistence of central planning is often a solution to the central economic and political problem of many elites: to control and extract resources from society.
The people who push for central planning may say they’re trying to solve a problem, but the problem they say they’re trying to solve is just an excuse. They really just want to gain control over you.
August 19, 2012
UK girls did better than the boys in annual examinations
Tim Worstall explains how it was engineered and why it’s not the wonderful accomplishment that some have been exulting about:
As a general rule one of the things that we know about education is that girls do better under a system of continuous assessment and boys under a system of competitive examination. This is of course not necessarily true of any one individual: but it is on average across any particular age cohort of children. If you want the girls to do better than the boys then skew the testing system to course work. Want the boys to appear to do better then bugger the homework and see what they can regurgitate in two three hour periods in the summertime.
That we really do know that this is true comes from the way that a few years back the system of examinations in England and Wales was deliberately changed to reflect this very point. GCSEs, A Levels, are now more based upon coursework than they used to be. The actual exams themselves now have less importance in the system than they used to. The stated objective of this change was to lessen the skew in favour of boys that a purely examination based system entailed.
So it is possible to exult about the girls outdoing the boys these days if that’s what you want to do. For it would be an example of a government policy, a very rare one indeed, actually achieving the goal originally set out. The educationalists wished to reduce the achievement gap between boys and girls. They did so.
August 18, 2012
Warships are not like books or DVDs
“Sir Humphrey” explains why adding another two Type 45 destroyers to the Royal Navy’s current construction plans won’t fly, even though it would be popular with many key constituencies: “it would win votes, it would keep supporters of the Navy happy, and the RN would be delighted”.
From the outset, let’s be extremely clear. This article is not saying that the UK could not build two more Type 45s – if the will is there, and the budget exists to do so, then anything is possible. As will be seen though, the challenge is trying to do so in a manner which makes rational sense.
[. . .]
In terms of support and manning, providing two additional Type 45s would raise a significant cost and manpower burden on the fleet. The RN has scaled itself to provide spares for six hulls. An additional two hulls means increasing spares by 33% above the existing fleet, which in turn would mean extra funding for parts, supplies, maintenance and munitions. Even basic issues like Sea Viper war shots, helicopter fleets, ammunition for 4.5” guns and the like would need to be increased. The funding for this is not in place at present. It’s not that the RN can’t find this funding, but that it will cost more to fund it than previously expected — this money has to be found from commensurate savings elsewhere.
[. . .]
The final point is perhaps the best reason why it would be near impossible to achieve this. There is simply no room in the construction yards to build two additional Type 45s. As was seen in the award of the MARS tanker project to Korea, the current UK shipbuilding industry is operating at peak capacity – the CVF programme is in pure tonnage terms providing the equivalent of 20 Type 45 destroyers worth of construction. The yards are full with CVF work now, and in a few years’ time will be ramping up to construct Type 26. To inject two additional Type 45s now would throw that programme into disarray as the yards struggle to work out how they can actually build the vessels. It’s not just a case of laying some steel down and a new ship popping up. T45s are built across multiple yards in parts, so it would need all the component yards to work together to fit it into their programme. They’d also need to work out how to take on the extra staff, who would then need to be made redundant later on as the workflow dropped off again. One of the key successes of the terms of business agreement is that the shipyards can plan for an agreed level of work. Adding ships in to this actually throws the plan into confusion as the yards have to resource to a higher level than before, incurring additional costs, and probably delaying both CVF and T26.
It is not impossible to build extra ships. That much is clear — if the willpower is there, then it can be done. But the days of shipyards existing in a short term environment, dependent on the next RN order, whatever it may be, are all but gone. The issue is the preservation of key skills, such as ship design and also high end manufacture of critical components, and doing so in a manner which makes the industry sustainable for the long term, and not the ‘boom and bust’ approach of the last century.
Regular readers of the blog may remember that the Type 45 destroyer design in particular came in for a hammering from other sources.
August 9, 2012
QotD: “No one is patriotic about taxes”
The money situation is becoming completely unbearable. . . . Wrote a long letter to the Income Tax people pointing out that the war had practically put an end to my livelihood while at the same time the government refused to give me any kind of a job. The fact which is really relevant to a writer’s position, the impossibility of writing books with this nightmare going on, would have no weight officially. . . . Towards the government I feel no scruples and would dodge paying the tax if I could. Yet I would give my life for England readily enough, if I thought it necessary. No one is patriotic about taxes.
George Orwell, diary entry for 9 August, 1940.
August 8, 2012
“In the real world, cleaning a driveway costs $15. In politics, it costs $175,000”
In the National Post, Kelly McParland on the difference between real world costs and government costs:
In other words, the town is prevented by bureaucratic realities from doing the job at a reasonable price. A contractor can just show up with a snow blower and clear the drive. The town, however, would have to send two workers – one to run the plow and the other to
stand around and watchact as a flagperson. They’d have to be paid the going rate of $47 an hour, plus benefits. And there’s the cost of the plow.If Mr. Williams was to get his windrows cleared, everyone in Iroquois Falls would have to have their windrows cleared, which the town estimates would bump the price to about $175,000 a winter.
So, in the real world, cleaning a driveway costs $15. In politics, it costs $175,000.
That’s why we have deficits, dear readers. And why government costs so much. And why civil servants grow accustomed to treating ludicrous costs as normal expenditures. And why taxes are far higher than they need be.
The economy is booming in Parasite City, DC
Gene Healy points out that while the rest of the US is still in the doldrums, there’s one bright spot: the one place that is booming, because it’s almost purely tax dollars feeding the growth.
Have you seen the latest jobs report? Major buzzkill: creeping unemployment, anemic growth, and the recovery’s totally stalled.
But not here: The District is booming! “Washington may have the healthiest economy of any major metropolitan area in the country,” says New York Times D.C. bureau chief David Leonhardt in Sunday’s Gray Lady. “You can actually see the prosperity”!
Yes we can! Construction cranes dominate the downtown skyline, and your average homeless guy can barely grab a stretch of sidewalk before yet another boutique store pops up to bounce his bedroll.
True, if you venture outside the Death Star’s orbit to visit the colonies for Thanksgiving or Christmas, you’ll see a lot of boarded-up storefronts. You might even feel a twinge of shame when Matt Drudge feeds you headlines like “D.C. Leads List of Most Shopaholic Cities in America.”
Whatever: Guilt is for losers! The main lesson the rest of the country should take from the capital’s prosperity is, per Leonhardt, that “education matters.”
D.C.’s “high-skill” economy boasts more college degrees than any other major metropolitan area in America. “If you wanted to imagine what the economy might look like if the country were much better educated,” Leonhardt writes, “you can look at Washington.”
Hey, you people out there in flyover country: We’re eating your lunch because we’re “smarter” than you! Hit the books, rubes: We built this!
August 6, 2012
Canada’s (lack of) Access To Information system
David Akin explains just how badly broken the Access to Information (ATI) system is, and the clear lack of intent to improve it on the part of the Harper government:
Canada’s Access to Information (ATI) system was broke long before Stephen Harper became prime minister in 2006 but the Conservatives, like the Liberals before them, have failed to fix the system that gives Canadians the right of access to records the government holds, creates, and collects on all our behalf. […]
Indeed, despite promising to fix the ATI system in its 2006 campaign, the Conservatives have made it worse. Great example? Over at the Department of Foreign Affairs and International Trade, John Baird as much thumbed his nose at the Information Commissioner of Canada — an officer of Parliament, no less — when she told him earlier this year, in response to a complaint that I had made, that the steps his bureaucrats were taking to prevent the release of documents was flat out wrong, likely against the law, and that he ought to tell his bureaucrats to change their ways.
[. . .]
There is little, sadly, that the Information Commissioner can do to force a government to change. The Commissioner’s chief power is the power of persuasion and shame, although, as we saw with Baird and DFAIT, the Tories appear to have no shame when it comes to a commitment to living up to both the spirit and the letter of our Access to Information Act.
Still, naming and shaming is the only power all of us — Information Commissioner included — have when it comes to trying to improve this system.
And that’s why I (and, I suspect, other frequent ATI users) end up playing the kind of bizarre bureaucratic games I am about to describe.
August 5, 2012
Reason.tv: What is an Astronaut’s Life Worth?
“You’re saying that you’re going to give up four billion dollars to avoid a one in seven chance of killing an astronaut, you’re basically saying an astronaut’s life is worth twenty-eight billion dollars,” says astronautical engineer and author Dr. Robert Zubrin.
Zubrin, the author of a popular and controversial article in Reason‘s space-centric February 2012 Special Issue, argues that the risk of losing one of the seven astronauts who repaired and rescued the Hubble Space Telescope was well worth it. “If you put this extreme value on the life of an astronaut…then you never fly, and you get a space agency which costs seventeen billion dollars a year and accomplishes nothing.”
NASA’s role, according to Zubrin, should be in the pursuit of ambitious missions such as “opening Mars to humanity,” rather than a bloated, safety-obsessed bureaucracy. “The mission has to come first.”
July 30, 2012
Federal government cracking down on Old Age Security applicants
An interesting story in the Toronto Star:
After 40 years as a registered nurse, Yvonne Gardner never thought she’d have to beg to get her federal pension benefits.
For 14 months, the Toronto retiree has been struggling to prove to Service Canada that she’s eligible for the $500 monthly Old Age Security (OAS) pension.
In the latest twist, she was asked for copies of plane tickets for all of her travels in and out of Canada since moving here from England in 1975 — a mission impossible — as proof she has lived here the minimum 10 years required to qualify.
Deprived of the pension she was counting on, Gardner, a native of Suffolk, England, is 10 months behind in rent on her one-bedroom downtown apartment and faces eviction.
If this woman’s issue is typical, then I will probably also have problems claiming OAS, as my family came to Canada in 1967 and I know for certain that we did not retain any of our travel documents from that far distant time.
However, the story is in the Toronto Star, which certainly has been willing to creatively tell stories that make the government look bad in the past. Here’s a comment on the story that has to be a joke:
I have no idea why this person thinks the story has anything to do with Capitalism, but he or she is certain that the answer is Socialism. Doesn’t much matter what the question is, I guess.
July 24, 2012
Quebec continues to strive to exclude Anglophones
A real head-scratcher in the Montreal Gazette: telephone staff at the Régie de l’assurance maladie du Québec (the Quebec health insurance board) are now required to assess callers’ language skills to determine if they actually require service in English.
Where before callers were given the option of service in English or French by way of a simple touch of the telephone keypad, it has now become more complicated. Now some people who would prefer to have the information given in English could be denied the service on the basis of a subjective judgment of their ability to speak French.
The way it works now is that calls to RAMQ are answered automatically in French, and callers are told that the agency first communicates with its clientele in French. Only after half a minute of silence is it mentioned that service in English is available by pressing 9. But wait: that doesn’t automatically get you service in English.
What it gets you is another recorded message, this time in English, informing you once more that the board prefers to deal with customers in French. The agents who subsequently come on the line do not speak English right away, even though the language of service chosen is English. No, the agents proceed in French, and are then required by the new policy to “use their judgment” to determine whether the caller speaks French well enough to be able to hold a conversation about health in French rather than English. Only if the caller fails that test will service in English be forthcoming.
July 16, 2012
Toronto edges cautiously toward allowing wider range of “street food”
Matt Gurney in the National Post on Toronto’s inch-by-glacial-inch move toward allowing a bit more variety in the foods street vendors can sell:
Last week, Toronto City Council approved hot dog vendors to sell an expanded variety of foods. The expanded list is still far from expansive. Veggie sticks, fruit salads and bagels with individually packaged butters are about the extent of the street food revolution in Toronto. Even these baby steps are progress, though — they follow the total failure of Toronto’s A La Cart program, which tried to expand the city’s food options to include more “ethnic” fare. The program, which should go down in history as the most botched effort the city has ever made, is Prosecution Exhibit A for those who believe that governments only exist to screw up things that really aren’t all that complicated.
But the city’s concern about street food, though overwrought and frankly embarrassing, at least comes from an honest place — concerns about spoiled food or improper preparation hurting public health. But Toronto has always missed the point. The public is protected when governments monitor outcomes and harshly punish failures, not seek to control process. Health inspections are an entirely reasonable part of the government’s job, with street food as much as any industry. And it seems that Toronto, while fretting about what food vendors might be doing wrong, hasn’t exactly been doing a bang-up job of its own responsibilities.
Hard though it is to imagine, other cities — even other Canadian cities — somehow manage to have all sorts of tasty treats for sale by food trucks, carts, and temporary kiosks without civilization crumbling.
July 9, 2012
The constipated British housing market
Tim Harford’s weekend column on the state of Britain’s housing market and a possible solution to the disconnect between supply and demand:
The chief obstacle to house building in the UK is the planning system, which, 65 years ago, did away with the idea that if you owned land, you could build on it, and replaced it with a system where planning permission was required. Permission to build houses is severely rationed, and such rationing can be seen clearly in the gap between the value of agricultural land without planning permission (a few thousand pounds a hectare) and the value of such land once permission has been granted (a few million).
The difficulty is that local authorities have the ability to grant planning permission but have little incentive to do so, because it tends to be unpopular with existing voters. The huge windfall from winning planning permission falls to whoever has managed to speculate on land and navigate the tangle of planning rules. These serve as nice barriers to entry for existing developers, while driving up the price of building land and so driving down the size of new homes.
Tim Leunig, chief economist at CentreForum, a think-tank, has proposed a two-part system of land auctions to get around this problem. Local authorities would buy land at auction, grant planning permission on it and then sell the land on to developers — with some strings attached, if they so choose. The profits would be enormous, and enjoyed by existing residents in the form of lower taxes or better public services. This isn’t the only way to liberalise planning, but it retains local control and democratic accountability — while dramatically increasing the incentive to develop.
Restoring a free market right to build on property you own would also be a fast solution to the diminished housing supply, but when have governments at any level willingly given up power?
July 2, 2012
Alex Tabarrok on the slow rail and infrastructure bottleneck
Writing at Marginal Revolution, Alex Tabarrok wonders “Why haven’t the $500 bills been picked up?”:
High speed rail, especially California’s project, looks to me to be monorail economics, a costly boondoggle whose appeal lies not in rational calculation […] but in the desire of some politicians (and voters) to feel visionary and sexy. In theory, CA HSR might work but the inevitable reviews, delays, lawsuits and special interest payoffs make the prospects of a beneficial project look dim, demosclerosis kills.
Slow speed rail, however, i.e. freight transport, isn’t sexy but Warren Buffett is investing in rail and maybe we should as well. In particular, there are basic infrastructure projects with potentially high payoffs. Congestion in Chicago, for example, is so bad that freight passing through Chicago often slows down to less than the pace of an electric wheel chair. Improvements are sometimes as simple as replacing 19th century technology with 20th century (not even 21st century!) technology. Even today, for example:
…engineers at some points have to get out of their cabins, walk the length of the train back to the switch — a mile or more — operate the switch, and then trudge back to their place at the head of the train before setting out again.
In a useful article Phillip Longman points out that there are choke points on the Eastern Seaboard which severely reduce the potential for rail:
…railroads can capture only 2 percent of the container traffic traveling up and down the eastern seaboard because of obscure choke points, such as the Howard Street Tunnel in downtown Baltimore. The tunnel is too small to allow double-stack container trains through, and so antiquated it’s been listed on the National Register of Historic Places since 1973. When it shut down in 2001 due to a fire, trains had to divert as far as Cincinnati to get around it. Owner CSX has big plans for capturing more truck traffic from I-95, and for creating room for more passenger trains as well, but can’t do any of this until it finds the financing to fix or bypass this tunnel and make other infrastructure improvements down the line.
