Quotulatiousness

September 5, 2012

Nobody is getting to “have it all”

Filed under: Economics, Media, USA — Tags: , , , , , — Nicholas @ 00:04

I read Gregg Easterbrook’s NFL column partly for the football content and partly for the very-much-not-football stuff. Here’s an example from this week’s column where he reflects on the “having it all” meme:

Lately The Atlantic has been on the case of après-feminism. Hanna Rosin’s 2010 cover story showed how the double-XX cohort is taking over colleges and offices, positing trends in education and economics are such that “modern postindustrial society is simply better suited to women.” Those sci-fi stories set on worlds ruled by Amazonian females, where males exist solely for women’s amusement? Rosin sees this coming.

Then in 2011, an Atlantic cover had Kate Bolick declaring that men are already so inutile, a woman would be a fool to walk down the aisle. Her ideal evening: a romantic candlelit dinner for one. Bolick praised “the Mosuo people of southwest China, who eschew marriage and visit their lovers under cover of night.” That cheerful article ended by endorsing the Beguines, a Dutch order whose members live in secular chastity, vowing never to touch men.

Then this year came “Why Women Still Can’t Have It All,” a cover by Anne-Marie Slaughter, a Princeton dean and recent State Department official. Slaughter filled 14 magazine pages with angst about how despite a high-paying super-elite job with lifetime tenure, personal connections in the White House and a husband who does the child care, despite writing about herself for the cover of the world’s most important magazine, nevertheless she feels troubled that every moment of her days is not precisely what she wants.

The assertion that women “can’t have it all” was received as earthshaking by the commentariate, a magazine article making the front page of The New York Times. Living a favored life and yet looking for something to complain about is part of the Upper West Side mindset, so perhaps the Slaughter article appealed to the part of the Times demographic that searches desperately for new complaints.

Some of Slaughter’s points were solid, but they were the grievances of the 1 percent — 99 of 100 women would love to have what Slaughter presented as her burdens to bear. Nobody’s ever satisfied. Jacques Brel wrote, “Sons of the thief, sons of the saint/Where is the child without complaint?”

What was vexing was that the article seemed to misunderstand its own topic. The phrase “having it all” meant a woman could pursue a career and also be a good mother. This is something millions of women have now achieved, proving career and motherhood are not mutually exclusive, as men long claimed in order to keep women out of the workplace. But “all” never meant a woman could have everything she wants at every second without ever facing hard choices or bending over to pick up a piece of laundry. Men can’t “have it all” in that sense either. No one has ever “had it all” and no one ever will.

The Atlantic‘s female readers have been told they finally hold the upper hand, but this seems hollow victory if men become motes. They’ve been told marriage is so awful, get thee to a nunnery. And Atlantic‘s female readers have been told if they achieve tremendous career success under ideal conditions while miraculously finding the last desirable man on planet Earth, they will be riven with anxiety anyway. But hey, have a nice day!

September 4, 2012

TANSTAAFL is not the whole story

Filed under: Economics, History, Liberty — Tags: , , , — Nicholas @ 12:25

At The Freeman, Sandy Ikeda points out that the handy little saying “There ain’t no such thing as a free lunch” is not enough to explain modern prosperity::

Economics teaches us the importance of TANSTAAFL and capital investment. Again, the trouble is they are not the whole truth.

As I’ve written before, however, there is such a thing as a free lunch, and I don’t want to repeat that argument in its entirety. The basic idea is that what Israel M. Kirzner calls “the driving force of the market” is entrepreneurship. Entrepreneurship goes beyond working within a budget — it’s the discovery of novel opportunities that increase the wealth and raises the budgets of everyone in society, much as the late Steve Jobs or Thomas Edison or Madam C.J. Walker (probably the first African-American millionaire) did. Yes, those innovators needed saving and capital investment by someone — most innovators were debtors at first — but note: Those savings could have been and were invested in less productive investments before these guys came along.

As McCloskey, as well as Rosenberg and Birdzell, have argued, it isn’t saving, capital investment per se, and certainly not colonialism, income inequality, capitalist exploitation, or even hard work that is responsible for the tremendous rise in economic development, especially since 1800.

It is innovation.

And, McCloskey adds, it is crucially the ideas and words that we use to think and talk about the people who innovate — the chance takers, the rebels, the individualists, the game changers — and that reflect a respect for and acceptance of the very concept of progress. Innovation blasts the doors off budget constraints and swamps current rates of savings.

[. . .]

Indeed, innovation is perhaps what enables the market economy to stay ahead of, for the time being at least, the interventionist shackles that increasingly hamper it. You want to regulate landline telephones? I’ll invent the mobile phone! You make mail delivery a legal monopoly? I’ll invent email! You want to impose fixed-rail transport on our cities? I’ll invent the driverless car!

McCloskey’s book has shown up a few times on the blog.

True-but-misleading factoid: “7 kg Of Grain To Make 1 kg Of Beef”

Filed under: Economics, Environment, Food, Health — Tags: — Nicholas @ 00:05

Tim Worstall on the mis-use of a vegetarian-friendly data point:

I asked Larry Elliott where the number came from and was sent this from Fidelity Investments (not online so far as I know).

    The demand for more protein has a significant knock-on impact on grain demand. Livestock is reared on grain-feed, making production heavily resource intensive. Indeed, it takes 7 kilograms of grain to produce just 1 kilogram of meat. As demand for meat rises, this increases the demand for and prices of feedstock — these increased costs of productions flow back to the consumers in the form of higher meat prices. Adding to the upward pressure on feedstock price and much to the dislike of livestock farmers, have been US environmental regulations (the Renewable Fuel Standard) that require a proportion of corn crops be used for the production of bio-fuel.

So, case closed, right? We all need to give up eating meat to save Mother Gaia? Not necessarily. The numbers given are accurate, but only in a particular context: that of raising meat for the US (and, probably, Canadian) market. The rest of the world doesn’t do it this way:

It is only in US or US style feedlot operations than cattle are fed on this much grain. Thus the equation is useful if you want information about what is going to happen with US cattle and grain futures: for that’s the general production method feeding those cattle futures. But very little of the rest of the world uses these feedlots as their production methods. I’m not certain whether we have any at all in the UK for example, would be surprised if there were many in the EU. Around where I live in Portugal pigs forage for acorns (yes, from the same oak trees that give us cork) or are fed on swill, goats and sheep graze on fields that would support no form of arable farming at all (they can just about, sometimes, support low levels of almond, olive or carob growing). Much beef cattle in the UK is grass fed with perhaps hay or silage in the winters.

My point being that sure, it’s possible to grow a kilo of beef by using 7 kilos of grain. But it isn’t necessary. The number might be useful when looking at agricultural futures in the US but it’s a hopelessly misguiding one to use to try and determine anything at all about the global relationship between meat and grain production. And most certainly entirely wrong in leading to the conclusion that we must all become vegetarians.

Which brings us to the lesson of this little screed. Sure, numbers are great, can be very informative. But you do have to make sure that you’re using the right numbers. Numbers that are applicable to whatever problem it is that you want to illuminate. If you end up, just as a little example, comparing grain to meat numbers for a specific intensive method of farming really only used in the US then you’re going to get very much the wrong answer when you try to apply that globally.

August 31, 2012

The Northlander “was like northern Ontario on wheels”

Filed under: Cancon, Economics, Railways — Tags: , , , — Nicholas @ 00:06

Chris Selley remembers Ontario Northland’s The Northlander, which the Ontario government will be phasing out next month:

Long-distance rail travel for real folks, as opposed to wealthy tourists, took another sad hit recently with the announced cancellation of the Northlander — the Ontario Northland Railway’s leisurely 11-hour putter from Toronto’s Union Station to Cochrane, Ont., whence the more legendary Polar Bear Express will still take you to Moosonee, on James Bay.

It’s not sad in any commercial sense: The provincial government claims each ticket sold was subsidized to the tune of $400 (though other mathematical interpretations are available). And it’s not sad because senior citizens will now be crammed on to buses to go to their far-flung medical appointments. That’s unfortunate, no question: Trains are fundamentally more civilized than buses. But many communities the size of those served by the Northlander don’t even have buses anymore. This is the age we live in.

I find it sad, firstly, because I have fond childhood memories of that trip. There used to be a train that ran past Cochrane, all the way to Kapuskasing, where we had family friends, and it used to run overnight. There was something wonderfully odd about getting ready for bed while trundling up the Don Valley. In the winter, the train was like a strange, slow teleportation to a different planet: You went to sleep in Toronto’s grey-brown approximation of the season and awoke, after a night of groggily perceived stopping and starting, horn blasts and various crashes and bangs, to a blinding white, empty snowscape. Stumbling to the dining car — well, the box-of-cereal-and-milk car — you would find the spaces between the cars encased in snow and ice, like the inside of an old freezer.

It wasn’t fast, or slick. It was a bit ramshackle. But it was folksy. It was like northern Ontario on wheels.

The earlier post on the cancellation.

August 30, 2012

Exaggerating your points to make them seem more important than they are

Filed under: Economics, Environment, Food, Media — Tags: , , , — Nicholas @ 11:05

Geoff Chambers does a bit of Google searching to track down a few of the claims made in Stephen Emmot’s critically acclaimed one-man show “Ten Billion”:

The reviews were full of superlatives. The Times’ critic calls it “utterly gripping, terrifyingly lucid”; Time Out: “monumentally sobering”; Billington in the Guardian: “one of the most disturbing evenings I have ever spent in a theatre”; the Financial Times: “one of the most disturbing shows I have seen on a stage”; the Mail on Sunday “certainly the most scary show in London”. Almost all of them cite Emmott’s conclusion: “We’re f*cked”.

Here are some of the key “facts” (or “f*cts”) cited by Emmott and picked up by critics. (It is of course impossible to check whether the critics have quoted Emmott correctly, since no record of what he says exists):

1) A google search uses as much electricity as boiling a kettle.

2) It takes 3,000 litres of water to make a hamburger, (that’s 10 trillion litres of water annually to sustain the UK’s burger industry).

3) It takes 27,000 litres of water to make a bar of chocolate

4) Animal species are currently going extinct at a rate 1,000 times their natural level.

5) Bangladesh will be under water by the end of the century.

TL;DR for those who don’t feel up to reading the whole thing: 1) false, by a factor of 100. 2) true-ish, but massively misleading. 3) false, or Emmott eats humongous chocolate bars. 4) false, even though Wikipedia thinks it’s true. 5) false, the land area of Bangladesh has actually grown over the last 50 years thanks to land reclamation projects.

August 27, 2012

Finland and the dangers of being a company town

Filed under: Business, Economics, Europe — Tags: , , , , , — Nicholas @ 09:09

I had no idea that Finland’s economy was so tightly tied to the fortunes of Nokia:

Nokia contributed a quarter of Finnish growth from 1998 to 2007, according to figures from the Research Institute of the Finnish Economy (ETLA). Over the same period, the mobile-phone manufacturer’s spending on research and development made up 30% of the country’s total, and it generated nearly a fifth of Finland’s exports. In the decade to 2007, Nokia was sometimes paying as much as 23% of all Finnish corporation tax. No wonder that a decline in its fortunes — Nokia’s share price has fallen by 90% since 2007, thanks partly to Apple’s ascent — has clouded Finland’s outlook.

[. . .]

Strip these sorts of firms from the list and only one resembles Nokia: Taiwan’s Hon Hai, an electronics manufacturer. Yet Nokia made 27% of Finnish patent applications last year; the corresponding figure for Hon Hai was 8%. Although numbers are falling, Finland is home to the greatest number of Nokia employees; Hon Hai’s staff is mostly in China. It is a similar story with other firms. Sales of Nestlé, a consumer-goods company, weigh in at 15% of Swiss GDP but its share of Swiss jobs is punier than Nokia’s in Finland. Samsung, whose revenues are twice Nokia’s, has half its clout as a share of GDP: South Korea’s economy is more diversified. The importance of Nokia to Finland looks like a one-off.

Central planning is always attractive to the ones who see themselves in charge

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

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 26, 2012

Google investigates their own in-house Gender Gap

Filed under: Business, Economics, Technology, USA — Tags: , , , — Nicholas @ 00:02

Tim Worstall in Forbes on Google’s unique approach to narrowing the Gender Gap:

As we all know, because we’re reminded about it often enough in rather shrill voices, the gender gap is one of the more pernicious unfairnesses in our society. This idea that women only earn 77 cents to a $1 for men, don’t get the same promotions, are in fact discriminated against by society.

The thing is, the more people study this question the less and less it’s possible to see that there is in fact a gender gap. Or rather, a gender gap driven by discrimination. Do note that economists discriminate (sorry) between taste discrimination and rational discrimination. Taste discrimination would be where women were treated worse than men just because they are women. Akin to say the dreadful racism of the past: and we would all admit that there was indeed discrimination against women in the workplace in the past.

What is a great deal less certain is whether this taste discrimination still exists: of course, we’ll always be able to find examples of it, but does it exist in a general sense, across the economy? Many researchers think not: for when you add up the effects of rational discrimination then look at the gender gap there doesn’t seem to be much if any room left for that taste discrimination. Rational discrimination is things like, well, women and men do tend to self-segregate into different occupations. Some of which are higher paid than others. Men tend to be willing to take riskier jobs and thus earn a danger premium to their wages. Women tend to negotiate less hard for their wages or a promotion. And of course women do tend to be those who take career breaks to have and to raise children. Perhaps this shouldn’t be so but it is and it’s most certainly true that the largest contributor to the gender pay gap is not gender itself but the effects of motherhood.

This is all pretty well known in the academic literature. What Google has done is most unfair. It has entirely ignored the academic work, ignored the partisans of both sides, and actually gone and asked its own staff what’s going on.

August 24, 2012

It’s an odd sort of “austerity” that increases government spending

Filed under: Britain, Economics, Government — Tags: , , , , — Nicholas @ 10:27

Everyone knows that Britain’s current economic woes are because of the government’s harsh austerity measures, right?

The argument over ‘the cuts’ has now become wholly detached from reality. Listen to any BBC debate and you’ll find the debate presented along these lines: ‘The Coalition, aiming to eliminate the deficit by 2015, has cut spending; this has had the effect of reassuring the markets and preventing a Greek-style meltdown but, on the other hand, it has impeded growth, and so reduced the tax-take, which has meant that the deficit now won’t be abolished until at least 2017. Some people believe that we need to focus on growth, not austerity. They are calling for Plan B’.

Every assumption contained in that summary is false. Net government expenditure is higher now than it was three years ago. Such deficit reduction as there has been has come largely through tax rises rather than spending cuts. The reason that government borrowing costs are low is not because of the imagined austerity programme, but because the Bank of England has magicked up nearly £400 billion through quantitative easing, given it to banks and told them to buy government debt with it. Growth and austerity are not antonyms: it was debt-fuelled growth caused the disaster in the first place. As for Plan B, no one has yet tried Plan A: spending less.

August 22, 2012

“The good old days” were actually pretty crappy for most

Filed under: Books, Economics, Environment, Food, Health, History, Media — Tags: — Nicholas @ 09:22

An excerpt from The Locavore’s Dilemma by Pierre Desrochers and Hiroko Shimizu in the National Post:

To a locavore, food in the future should be created pretty much like it was in the not-so-distant past: produce and animals raised lovingly in urban backyards, turning domestic waste into hearty dishes. Farmers’ markets in every small town and city neighbourhood, where people rediscover the joys of real food and get reacquainted with one another. The rebuilding of small-scale slaughterhouses and canning factories to serve area producers and foster the preservation of local food items for consumption in the off-season.

Ideally, this local system would also be built on seeds saved from the previous harvest rather than purchased from giant corporate seed producers; ancient “heirloom” cultivars developed before synthetic fertilizers and pesticides became available and that, as a result, are better able to seek nutrients in the soil, don’t require any chemicals and are naturally resilient to drought and pests (“If it’s old seed, it’s good seed!”); and “heritage” animal breeds better able to withstand diseases and harsh environments and grow fat and happy on pastureland alone. Pest control would be achieved through traditional “natural” products based on plants and minerals; manual labour, such as crushing or picking bugs and larvae off foliage or removing weeds by hands; and biological control methods, such as introducing exotic animals, insects and bacteria that feed on invasive pests. Finally, factory-made fertilizers would be replaced by animal manure and rotating fodder crops, such as clover and alfalfa.

[. . .]

Isn’t it possible that crushing bugs and removing weeds by hands were neither very effective nor the most productive use of one’s time? That seeds purchased from commercial suppliers offered access to superior genetic material, were not mixed up with unwanted material and were readily available when needed? That “natural” manure has always been dirty, smelly, chock-full of pathogens and requires several months of composting? That the “slow release” of nutrients from green manures and organic compost could never be as adequately controlled to match crop demands with nutrient supply as is now possible with synthetic fertilizers? Further, that old mineral (including arsenic) and plant-based pesticides were less harmful to plant pests (and thereby more likely to promote insect resistance) and more problematic to human health than more recent offerings? That introducing nonnative insects, mammals and bacteria in a new ecosystem often had unintended, broader and longer-lasting negative consequences for nontargeted species? And that, unlike chemical pesticides that typically do not persist in an ecosystem once application has ceased, exotic insects who have successfully adapted to a new environment are practically impossible to eradicate and do not remain confined to one geographical location? In the end, why are modern agricultural producers willing to purchase costly synthetic inputs, hormonal growth promoters, antibiotics and genetically modified seeds when the methods agri-intellectuals prefer are either completely free (such as giving up on the use of these inputs and on equipment such as poultry housing) or seemingly much cheaper (such as feeding cattle entirely on pastureland and saving one’s seeds instead of relying on those marketed by specialized producers)?

Ontario’s ban on a large number of pesticides and herbicides for domestic use is re-acquainting many home owners with the joys of hand-weeding their lawns. It’s getting to the point that Ontario’s provincial flower might as well be the dandelion, as they’re everywhere. There’s a reason your ancestors couldn’t wait to get off the farm…

Reason.tv: Can legal cannabis revolutionize the US economy?

Filed under: Economics, Law, Liberty, USA — Tags: , , , , — Nicholas @ 00:09

“How can you have 56 percent of Americans in support of fully ending the drug war, and zero senators in support of it?” asks Doug Fine, investigative journalist and author of new book, Too High To Fail.

Fine sat down with ReasonTV’s Tracy Oppenheimer to discuss his time spent in the cannabis capital of California, Mendocino County, and why he thinks this drug can help save the American economy. And it’s not just about collecting taxes.

“The industrial [uses] may one day dwarf the psychoactive ones. If we start using it for fermentation for our energy needs, it can produce great biofuels,” says Fine, “already, cannabis is in the bumpers of Dodge Vipers.”

August 21, 2012

Farewell to The Northlander

Filed under: Cancon, Economics, Railways — Tags: , — Nicholas @ 12:00

The economics of long-distance passenger rail service is brutal: this announcement is not really a surprise, but it is disappointing anyway.

If a train stops running through the hinterland, does anybody hear?

The Ontario government has just announced the end of the line for the Northlander. The Ontario Northland train that runs between Toronto and Cochrane, Ontario, will cease service at the end of September.

What’s the word for that? Disappointing doesn’t cut it. Short-sighted is accurate, but insufficient. Regrettable is an understatement, too.

You’d think as a nation once united by the railway, we would have coined a term to cover the loss, the heartache, the sense of isolation, betrayal and rejection that comes from losing a railway line.

The only expression that comes close is “they’ve killed another train.”

Time and time again, we’ve seen passenger service reduced to little more than a quaint memory in many parts of the country.

Despite the historical appeal, long distance passenger rail loses money just about everywhere: government subsidies have been necessary for decades to keep the trains running. Political jockeying may keep a line open for a longer period, but nothing is going to change the facts. Passenger trains can be competitive for short-to-medium distances, but quickly lose out in efficiency (and potential profits) to air service over medium-to-long distances. Every time someone rides a VIA or Ontario Northland passenger train, the taxpayer is picking up part of the tab (and the longer the distance being travelled, the greater the required subsidy from the government).

Garnet Rogers explains what happens next:

The last train rolled out of town today;
You might have seen it on the news.
We gathered round the engine yard
To say our good-byes to the crews.
Well the cheering stopped, the laughter died
It dwindled down the tracks
“That’s that”, I heard someone say,
“We’ve fallen through the cracks.”

August 20, 2012

Why scam artists will never miss a meal

Filed under: Business, Economics — Tags: , — Nicholas @ 15:59

Megan McArdle on the perpetual lure of getting something for nothing:

…fraudsters and Ponzi schemers do not succeed at their scams merely because we let them. Recent financial frauds have big dollar signs attached, but at their heart, they’re often not much different from Nigerian email scams or a three-card monte game. They work best when they let the mark believe he’s getting away with something — often something illegal, or at least dishonest. It’s an old saw that “you can’t cheat an honest man,” but it’s mostly true. We are most vulnerable to Ponzi schemes and other confidence tricks when we start to believe that we can cheat the universe — that we can get something for nothing. The best con men succeed mostly because we are so desperate to believe them.

Even spectacular cases of financial fraud usually turn out to be remarkably banal in their execution. Embezzling grotesque sums rarely seems to require dazzling financial wizardry; all it takes is some basic clerical skills and a willingness to deceive.

After Peregrine Financial imploded last July, the firm’s president, Russell Wasendorf, confessed in a note related to a botched suicide attempt how he had misappropriated what seems to be more than half of his clients’ funds. The fraud was breathtaking in its audacity, and its simplicity: Wasendorf had been intercepting the bank statements and counterfeiting new ones using Photoshop and Excel. When auditors and regulators started confirming balances with banks, Wasendorf opened a P.O. box and put the address on the fake bank statements. When regulators started looking at online banking statements, he learned to fake those, too.

Bernie Madoff’s strategy wasn’t much more technically sophisticated than Wasendorf’s. And yet it seems to have been going on since at least the late 1980s, in large part because Madoff’s investors wanted an essentially guaranteed return of more than three times the annual rate of U.S. economic growth. They wanted, in short, to make quite a lot of money without working.

August 18, 2012

Warships are not like books or DVDs

Filed under: Britain, Bureaucracy, Economics, Military — Tags: , — Nicholas @ 00:23

“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 14, 2012

Ethanol: starving the third world, by government policy

Filed under: Economics, Environment, Food, Government, USA — Tags: , , , — Nicholas @ 08:47

Jeffrey Tucker on the absurd and cruel implications of a government mandate:

Corn prices are officially through the roof, spiking to record highs. It’s been headed this way through six years of crazy volatility. Now the spike is undeniable. At the same time, crop yields are lower they have been since 1995.

Everyone blames the drought, as if the market can’t normally handle a supply change. The real problem is that the corn market is fundamentally misshaped by government interventions that have made a mess of this and many more markets. The distortions are never contained, but spread and spread.

[. . .]

“Corn is the single most important commodity for retail food,” Richard Volpe, an economist for the USDA told the Los Angeles Times. “Corn is either directly or indirectly in about three-quarters of all food consumers buy.”

Fine, then, answer me this, Mr. Government Economist Man: Why is 40% of the corn crop being burned up in our gas tanks? The answer is a Soviet-like, fascist-like, stupid-like government mandate. It is actually relatively new. It came about in 2005 and 2007. It mixes nearly all the gas we can buy with a sticky product now in rather short supply.

Of all the government regulations I’ve looked at in detail over the last 10 years, the ethanol mandate is, by far, the worst. There are no grounds on which it is defensible. None!

Like so many government initiatives, this was supposed to do something good: reduce the consumption of fossil fuel for gasoline production by substituting a proportion of ethanol. While gas was expensive and ethanol was cheap this might make sense — but when ethanol becomes more expensive, and the raw material used to produce the ethanol would be far better used for food and feedstock, the whole policy becomes an act in the theatre of the absurd.

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