Protestations from the Obama side that this is all just proof that recession/depression was so much worse than any of us knew that it’s a goddamn great and good thing that Obama is helming the ship of state because if it had been one of those idiot Republicans like George W. Bush we wouldn’t have had bailouts and a stimulus that was too small to really effect the economy — even smaller than the $150 billion tax thingamajig that Bush tried in early 2008 that was really pathetic because we now know that even Obama’s $800 billion attempt was obviously too small christ it should have been two or three or even four times bigger and for god’s sake can’t we just prepare for the alien invasion that Paul Krugman — he won a Nobel Prize so just shut up already! — says will create enough of a multiplier effect to finally restart the economy and screw the debt because we’ll have thousands of years to pay that down, especially now that thank Zardoz we’ve got universal health care that will be awesome if the d-bags on the SCOTUS don’t FUBAR it and Dodd-Frank means there won’t be any fraud or dumb lending!
And of course the Republicans will counter with: See, none of this would have happened if we’d only followed George W. Bush’s disastrous big-government spending ways and expansion of major entitlements and a defense buildup because sharia law is taking over whole hamlets in Oklahoma and our plan to increase annual spending over the next decade by just $1 trillion is so much better than the Prez’s to spend $2 trillion more, especially after increasing federal outlays by 60 percent or more over the previous decade when we controlled things is exactly the tonic the economy needs right now! But seriously folks, what do you expect when you let gay marriage happen? No economy can recover from that!
Nick Gillespie, “Is the Obama Recovery Over? Or Has it Not Really Started Yet?”, Hit and Run, 2012-05-30
May 31, 2012
May 29, 2012
The fuzzy good intentions of equalization and the bad results
Peter Holle in the National Post, outlining the economic distortions of federal equalization payments in the recipient provinces:
Equalization, viewed critically, does no favours to either the funding or recipient provinces. After 50 years, outside transfers constitute an ever larger portion of the economies in have-not provinces. In an otherwise globally-oriented, market-driven world, Canada’s equalization program has encouraged the development of locally-oriented, public-sector driven economies.
Here are just a few ways that equalization provides incentives to harmful policy, stunting economic growth in the jurisdictions the policy means to help.
- Inflating the public sector: Equalization has allowed recipient jurisdictions to create disproportionately larger public sectors because someone else is paying the bill. Manitoba’s public sector, for instance, employs 103 people per 1,000 residents, compared to a Canadian average of 84.
- Politicizing spending. The external funding from equalization has allowed local politicians to build up vote-buying infrastructure with little political cost, by disconnecting taxation from benefit. Quebec’s $7-a-day daycare, and university tuition at less than half the Canadian average, would be unworkable without $7.4-billion in annual equalization subsidies from the rest of Canada.
- Incentives for higher taxes. A path-breaking study by the Atlantic Institute for Market Studies showed that equalization rewards recipient provinces for imposing high and damaging tax rates, which deter private-sector investment and job creation. Manitoba, the only have-not province in Western Canada, has the highest income taxes in the region, and also has the lowest rate of private-sector investment.
- Artificially inexpensive hydro power. By excluding the true value of renewable hydro energy revenues from the calculation of revenue capacity, the equalization formula rewards Manitoba and Quebec for charging artificially low domestic electricity prices. Below-market prices, in turn, encourage consumers to use more resources that otherwise would be conserved in response to accurate price signals.
May 28, 2012
UN joke of the day: Mugabe named “international tourism ambassador”
I guess it’s maybe a hint that the UN is no longer serious?
For cognitive dissonance, see under: The United Nations. It’s no longer just a platform for countries with less-than-negligible human rights records to bash Israel and other democratic nations, or the dispatcher of envoys like Kofi Annan to Syria (under whose watch some 800,000 Rwandans were slaughtered) or the patronizing professional busy-body Olivier De Schutter, a Belgian “UN special rapporteur on the right to food,” to lecture Canada. The UN is now an expert on tourism to Africa and deciding who is best suited to promote it.
The UN just announced that its favourite African megalomaniac, Robert Mugabe, and his Zambian sidekick, Michael Sata, have been appointed United Nations international tourism ambassadors in recognition of the promotion and development of tourism. The UN through the United Nations World Tourism Organisation will officially confer the status to the two presidents at a function to be held in Victoria Falls this week and officiated by the UNWTO secretary general Mr Talib Rifai. The honour comes even though the European Union and U.S. have imposed travel bans on Mugabe and many of his senior government officials due to widespread human rights abuses.
Playing definitional games to demonize ordinary people as quasi-alcoholics
Most reasonable people would agree with the notion of using the government’s powers to help “problem drinkers” to drink less. It sounds like a good idea, unless you’re a weirdo libertarian type. Or a “problem drinker”. Building on this, the Scottish government recently passed a minimum alcohol price law with the stated intent of helping “hazardous” drinkers to drink less. But what’s the definition of a “hazardous” drinker? It’s almost certainly not what you’d expect:
A model of the possible effects of minimum pricing by the University of Sheffield has often been drawn upon by the media due to a lack of definite information on the effects of MAP. On the surface, the results look relatively reasonable to someone in favour of minimum alcohol pricing. At 50p per unit, the study suggests that the average ‘harmful’ drinker would be most likely to reduce their intake, followed by ‘hazardous’ drinkers, with ‘moderate’ drinkers suffering least, which, of course, all sounds very fair.
But on closer inspection, it appears as though my own drinking is hazardous. If you’re male and drink more than a pint a day of fairly standard lager on average, yours is too. If you’re female, you’re entitled to even less before you abandon moderation. ‘Binge drinking’ can be any more than 8 units in a single session, or three pints of lager. No, this is not a joke. Millions of British people, who certainly wouldn’t think of themselves as dangerous consumers of alcohol, are in this category. The words ‘hazardous’ and ‘binge’ seem almost bound to bring to mind serious, tabloid-beloved alcohol abuse. This isn’t the case.
[. . .]
Alcohol addiction is a serious social problem. Like all addiction, it’s closely associated with more severe health risks, mortality and crime, and requires the attention of government. Whether price increases help is debatable. An enormous 2009 meta-study of the effect of price on alcohol consumption certainly shows that alcohol consumption is inversely responsive to price. As the cost of alcohol rises, all groups drink less.
But the study also shows that heavy drinkers are significantly more inelastic than others, reacting less to price. This might well seem logical, as the group contains people who are addicted to alcohol. Alcoholics are less likely to consider increases in prices in the same way that casual drinkers do. Will some of the most dependent drinkers simply increase the amount they spend? We don’t yet know. Scotland is about to find out.
So aside from the basic nanny state meddling, the price hike won’t actually produce the reduction in alcohol consumption by the very folks it’s intended to target. It will increase profits for the producers of the cheapest forms of rotgut booze. What’s that old saw about unintended consequences again?
May 26, 2012
Andrew Coyne on Harper’s real “hidden agenda”
We’ve been hearing about Stephen Harper’s “hidden agenda” for nearly a decade and it’s about time for some of it to finally come to light — what’s the point of having a hidden agenda if you never actually implement any of it? Andrew Coyne thinks he’s detected the real thing:
It is becoming more difficult to accuse this government of having a hidden agenda. Not because it hasn’t tried, mind you. But while it remains as obtuse as ever about its intentions, the signs of an agenda are by now unmistakable. Where before it had attitudes, or at best stances, it is beginning to sprout what look remarkably like policies.
To be sure, they are modest, even piecemeal. They are often poorly communicated, where the Conservatives deign to communicate them at all. More often they are simply dropped on the unsuspecting public without consultation, or jammed through Parliament with little debate or scrutiny, quite apart from monstrosities like the omnibus bill.
But put them together and they have all the markings of an agenda:
- Reform of Old Age Security, not only raising the age of eligibility by two years (starting in 2023, and phased in over six years) but offering higher benefits to those willing to keep working past the standard retirement age.
- Free trade agreements, now being negotiated with virtually everything that moves: Europe, India, Japan, the Trans-Pacific Partnership, the ASEAN group.
- Reform of immigration policy, across every category: skilled immigrants, refugees, investors, entrepreneurs, with an emphasis on recruiting immigrants with demonstrable economic prospects.
- Reform of employment insurance, announced this week, to give repeat users, in particular, fewer excuses to refuse available work.
- Moreover, the government is at last beginning to implement the Red Wilson report on productivity, four years after it was delivered, with recent reforms opening the door to foreign takeovers in the telecommunications sector (for companies with less than 10% of the market), and raising the threshold asset value for automatic review of foreign takeovers to $1-billion.
May 23, 2012
British government energy policies are “befuddled and beset by lobbyists”
Simon Jenkins in the Guardian:
Anyone who claims to understand energy policy is either mad or subsidised. Last week I wrote that politics is seldom rational. It is more often based on intuition and tribal prejudice. This week we have a thundering example: the government’s new policy on nuclear energy.
Do not read on if you want a conclusion on this subject. For years I have read papers, books, surveys and news stories, and am little wiser. I trust to science and am ready to believe there is some great mathematician, some Fermat’s last theorem, who can write an equation showing where energy policy should turn. I have never met him.
The equation would start with the current market price of coal, gas, oil, nuclear and so-called “renewables”. That would give simple primacy to coal and gas. The equation would then factor in such variables as security of supply, which — being imponderable — can be argued from commercial interest and prejudice. Then it would have to take account of global warming and the virtue of lower carbon emissions. At this point the demons enter.
We must consider CO2 reduction through substituting gas for coal, carbon capture, nuclear investment, biomass, wind, wave, solar and tidal generation. We must consider the application of fiscal policy to gas and petrol use, to energy efficiency and house insulation. Each has a quantity attached to it and each a fanatical lobby drooling for subsidies. As for achieving a remotely significant degree of global cooling, that requires world diplomacy — which has, as yet, proved wholly elusive.
Britain’s contribution to cooling can only be so infinitesimal as to be little more than gesture politics, yet it is a gesture that is massively expensive. Meeting the current EU renewables directive, largely from wind, would cost some £15bn a year, or £670 a household, and involve the spoliation of swaths of upland, countryside and coast. It is calculated to save a mere 0.2% of global emissions, with negligible impact on the Earth’s sea level.
May 22, 2012
Reason.tv: Is Austerity to Blame for Europe’s Economic Woes?
May 21, 2012
Will privacy be on one of the things that differentiates the rich from the rest?
Brendan O’Neill in the Telegraph:
Is privacy being turned into a privilege that only the moneyed and the well-connected may enjoy? Two striking stories in the news last week suggest that it is.
In the first story, it was reported that activists and hacks are heaping further pressure on Mark Zuckerberg to improve the privacy settings on Facebook, so that they might update their statuses and post photos of their social shenanigans without having the world and its mother peering over their shoulders. In the second story, we were told that social workers, backed by much of the media, are calling on the prime minister to get rid of “red tape” so that they might more easily interfere in — I’m sorry, intervene in — so-called problem families. There are a lot of damaged families out there, the social workers hinted, and thus we need to rip up some of the rules governing when it is and isn’t okay to stick our snouts into their business.
That these two stories could appear in the same week, and not be considered contradictory, suggests we have a pretty screwed-up attitude to privacy today. Indeed, sometimes the very same members of the political and media classes who believe that their private lives must remain absolutely private will think it is perfectly logical that other people’s private lives — the lives of Them — should be thrown open to state snooping.
May 20, 2012
May 19, 2012
The politics of the school lunch
Baylen Linnekin examines the school lunch issue, and finds yet another example of experts and government officials trying to override parental input and childrens’ own wishes “for the children”, of course:
School food is always a hot topic, and is perhaps more so now than it’s ever been. From a publicity standpoint, school food has taken off as an issue largely due to the efforts of [British chef and food nuisance Jamie] Oliver and First Lady Michelle Obama. But viewed from the standpoint of edibility, cost, and healthiness, food served by public schools via the USDA’s National School Lunch Program was already an issue because that program and its food have a decades-long track record of sucking. And in spite of the best efforts of Oliver and Mrs. Obama, along with new rules set to take effect in the coming months, I’m not optimistic that the quality of school food is likely to change anytime soon. Why?
If you’re one of those who thought all this talk about the National School Lunch Program had translated into better food, think again. Contrary to any visions you may have of expensive reforms leading to school kitchens serving as virtual clearinghouses for fresh fruits and vegetables, that just isn’t the case. Expensive reforms? You bet. They crop up every few years. But schools are still serving kids nachos. And sometimes — as happened last week at a public school in Ohio — those nachos are full of ants.
Issues like ants in food are hardly rare. And other systemic problems persist.
I remember what kind of crap my middle and high school cafeterias offered … and if I’d forgotten to bring a sandwich with me that day, going hungry always seemed like the better choice. The food on offer always seemed to manage the difficult stunt of being visually unappealing (sometimes being actually disgusting to look at), nutritionally inadequate, and either utterly flavourless (the better choice) or actively nasty. No wonder the best sellers in the cafeteria were the milk cartons (especially the chocolate milk), pop cans, potato chips, chocolate bars, and Vachon cakes (all of which were pre-packaged and relatively invulnerable to further processing).
As a 12-year-old army cadet, my first experience of army cooking was a huge shock: it was actually good! I didn’t know that cafeteria-style cooking didn’t have to be bland, boring, or nauseating. Schools couldn’t seem to manage the trick, but the army could.
School lunches also neuter the ability of families to make dietary choices their children. Consider the pink slime controversy earlier this year. Whether you were up in arms over chemically treated meat or thought it was completely fine to eat, the truth is if you’re a public school parent whose child eats a school lunch you still have little say over whether or not your child eats pink slime — or genetically-modified foods, sugars, starches, and a whole host of other foods about which decent parents (and experts) disagree.
Another good example of how school lunches usurp family decision-making took place in Chicago last year, where a seventh grader named Fernando Dominguez helped lead a revolt against his school’s six-year-old policy that banned students from taking their own lunch to school. According to the Chicago Tribune, the principal argued that the policy was put in place “to protect students from their own unhealthful food choices.”
[. . .]
These anecdotes help illustrate the point that food served in public school cafeterias has — along with prison food — long been one of the best arguments against the singular notion that big, mean corporations are responsible for all of the food problems we face in America. After all, public-school lunches are government creations. They’re subsidized by government, provided by government, served by government, and paid for by government. And they’re often gross, unhealthy, and wasteful.
But supporters of the National School Lunch Program, not surprisingly, argue that what’s needed are reforms, improvements, rejiggering, and — of course — more money.
May 17, 2012
Defining “sustainability”
Ben Pile explains what is really meant by the term “sustainability” and the real agenda of those who argue for it:
Another reason might be that the concepts of ‘global’ and ‘sustainability’ are at best nebulous. To what extent are ‘global problems’ really global? And to what extent can making and doing things ‘sustainably’ really address problems such as poverty and inequality? Poverty is not, in fact, a problem of too much exploitation of natural resources, but too little. And poverty is not a global problem, but a categorically local one, in which a population is isolated from the rest of the world.
We can only account for poverty and inequality in the terms preferred by environmentalists if we accept the limits-to-growth thesis and the zero-sum game that flows from it. In other words, that there are limits on what we can take from the planet and we can only solve poverty if we divide those limited resources more equitably. Such an argument for reducing and redistributing resources has the reactionary consequence of displacing the argument for creating more wealth.
But to date, the arguments that there exist limits to growth, an optimum relationship between people and the planet, and that industrial society is ‘unsustainable’, have not found support in reality. The neo-Malthusians’ predictions in the Sixties and Seventies were contradicted by growth in population and wealth. And now there is a growing recognition that the phenomenon most emphasised by environmentalists — climate change — has been overstated. [. . .]
‘Sustainability’ is not about delivering ‘what we want’ at all but, on the contrary, mediating our desires, both material and political. Accordingly, the object of the Rio meeting is not as much about finding a ‘sustainable’ relationship between humanity and the natural world as it is about finding a secure basis for the political establishment. The agenda for the Rio +20 conference is the discussion of ‘decent jobs, energy, sustainable cities, food security and sustainable agriculture, water, oceans and disaster readiness’. Again, noble aims, perhaps. But is the provision of life’s essentials, and the creation of opportunities for jobs and the design of cities, really a job for special forms of politics and supranational organisations?
The idea that there are too many people, or that the natural world is so fragile that these things are too difficult for normal, democratic politics to deliver, flies in the face of facts. It would be easier to take environmentalists and the UN’s environmental programmes more seriously if millions of people were marching under banners calling for ‘lower living standards’ and ‘less democracy’. Instead, just a tiny elite speaks for the sustainability agenda, and only a small section of that elite is allowed to debate what it even means to be ‘sustainable’. We are being asked to take at face value their claims to be serving the ‘common good’. But there is no difference between the constitutions of benevolent dictatorships and tyrannies.
Sustainability is a fickle concept. And its proponents are promiscuous with scientific evidence and ignorant of the context and the development of the sustainability agenda, believing it to be simply a matter of ‘science’ rather than politics. The truth of ‘sustainability’, and the meeting at Rio next month, is that it is not our relationship with the natural world that it wishes to control, but human desires, autonomy and sovereignty. That is why, in 1993, the Club of Rome published its report, The First Global Revolution, written by the club’s founder and president, Alexander King and Bertrand Schneider. The authors determined that, in order to overcome political failures, it was necessary to locate ‘a common enemy against whom we can unite’. But in fighting this enemy — ‘global warming, water shortages, famine and the like’ — the authors warned that we must not ‘mistake symptoms for causes’. ‘All these dangers are caused by human intervention in natural processes, and it is only through changed attitudes and behaviour that they can be overcome. The real enemy then is humanity itself.’
Official response to UN’s Special Rapporteur on the right to food
As you’ll know if you’ve been visiting the blog for a while, I’m not a cheerleader for the federal government and I often disagree with their policies and statements. However, I can’t find much to disagree with in this:
May 16, 2012 (OTTAWA, ON) — The Honourable Leona Aglukkaq, Minister of Health, and Minister of the Canadian Northern Economic Development Agency, today issued the following statement:
Today I met with Olivier De Schutter, the UN’s Special Rapporteur on the right to food.
As an aboriginal person from the North, I was insulted that Mr. Schutter chose to “study” us, but chose not to “visit” us.
In fact, Mr. De Schutter confirmed to me that he did not visit a single Arctic community in Canada during nearly two weeks of travel within Canada.
I asked him what stance he would take in his report on uninformed, international attacks on the seal and polar bear hunt that make it harder for aboriginal hunters to earn a livelihood. I told him that I would be reviewing his final report closely, to see if he makes any recommendations to activist groups to stop interfering in the hunting and gathering of traditional foods.
I was concerned that he had not been fully informed of the problems with the discontinued Food Mail program that subsidized the shipping of tires and skidoo parts, as opposed to Nutrition North, which improves access to nutritious and perishable foods.
He made several suggestions that would require the federal government to interfere in the jurisdiction of other levels of government. It was clear that he had little understanding of Canada’s division of powers between the federal, provincial and municipal levels of government despite his extensive briefings with technical officials from the Government of Canada.
Our government is surprised that this organization is focused on what appears to be a political agenda rather than on addressing food shortages in the developing world. By the United Nations’ own measure, Canada ranks sixth best of all the world’s countries on their human development index. Canadians donate significant funding to address poverty and hunger around the world, and we find it unacceptable that these resources are not being used to address food shortages in the countries that need the most help.
-30-
May 16, 2012
Scotland’s latest moral panic, soon to spread to England
A spectre is haunting Scotland: the spectre of cheap booze and binge drinkers. The most recent regulatory answer, raising the minimum price of alcohol, won’t solve the problem.
Scotland announced minimum pricing for alcohol this week, at 50p a unit; the price of the cheapest spirits will now rise by almost 50%. It will arrive in England soon, although possibly at the more timid rate of 40p per unit. It will only make a tiny difference, says the government, as it contemplates raising prices for a commodity almost all citizens enjoy (86% of the adult population drink alcohol), and at a time when prices are rising everywhere.
So why bother doing it? The government says it will save lives, even as it announces the speed limit on some motorways will be raised to 80mph, which will cost lives. I am not sure if the deaths created on the roads will be offset by the lives saved from gin, but it seems that more deaths on the roads are acceptable, but more deaths from alcohol are not. Do I smell snobbery? David Cameron says that alcohol “generates mayhem on our streets and spreads fear in our communities” — so I suppose I do.
Minimum pricing is a result of a national moral panic about alcohol, which follows on the trail of moral panics about tobacco and obesity, which are created by the tabloids and their beloved pictures of girls vomiting into gutters with their skirts hitched round their waists; there is a whole crocodile of moral panics, squeezing its way into Downing Street as more important issues are ignored.
[. . .]
Drinking is something that terrifies some but delights many. Drinkers can be ghastly, but so can politicians, and so can sober politicians. Minimum pricing comes from an ancient place – the desire for a neat society – and it expresses Cameron’s desire to appear to be doing something, while he does nothing elsewhere. Where one stands on minimum pricing depends entirely on whether you believe it is a person’s unalienable right to get shit-faced drunk at the market price, no matter what your income. When so many rights are threatened, who would dispute it?
May 15, 2012
Nerd politics: problems and opportunities
Cory Doctorow in the Guardian on the current state of “nerd politics:
In the aftermath of the Sopa fight, as top Eurocrats are declaring the imminent demise of Acta, as the Trans-Pacific Partnership begins to founder, as the German Pirate party takes seats in a third German regional election, it’s worth taking stock of “nerd politics” and see where we’ve been and where we’re headed.
Since the earliest days of the information wars, people who care about freedom and technology have struggled with two ideological traps: nerd determinism and nerd fatalism. Both are dangerously attractive to people who love technology.
In “nerd determinism,” technologists dismiss dangerous and stupid political, legal and regulatory proposals on the grounds that they are technologically infeasible. Geeks who care about privacy dismiss broad wiretapping laws, easy lawful interception standards, and other networked surveillance on the grounds that they themselves can evade this surveillance. For example, US and EU police agencies demand that network carriers include backdoors for criminal investigations, and geeks snort derisively and say that none of that will work on smart people who use good cryptography in their email and web sessions.
But, while it’s true that geeks can get around this sort of thing — and other bad network policies, such as network-level censorship, or vendor locks on our tablets, phones, consoles, and computers — this isn’t enough to protect us, let alone the world. It doesn’t matter how good your email provider is, or how secure your messages are, if 95% of the people you correspond with use a free webmail service with a lawful interception backdoor, and if none of those people can figure out how to use crypto, then nearly all your email will be within reach of spooks and control-freaks and cops on fishing expeditions.
[. . .]
If people who understand technology don’t claim positions that defend the positive uses of technology, if we don’t operate within the realm of traditional power and politics, if we don’t speak out for the rights of our technically unsophisticated friends and neighbours, then we will also be lost. Technology lets us organise and work together in new ways, and to build new kinds of institutions and groups, but these will always be in the wider world, not above it.
May 14, 2012
Scottish minimum alcohol pricing: “Health fascism is back with a vengeance”
A released statement from Sam Bowman, Head of Research at the Adam Smith Institute, responding to Scotland’s minimum alcohol price decision:
“Minimum alcohol pricing is a miserable, Victorian-era measure that explicitly targets the poor and the frugal, leaving the more expensive drinks of the middle classes untouched. It’s regressive and paternalistic, treating people as if they’re children to be nannied by the government.
“To make things worse, all signs suggest that the minimum price will be successively raised once it’s in place. This is what happened in the UK with alcohol and tobacco taxes, which are now among the highest in the world. It’s like boiling a frog – bring in a low minimum price that only affects the most marginalized part of society, the poor, and raise it gradually every year without people noticing.
“The reality is that Britain does not have a drink problem. The definition of “binge drinking” has been redefined so that a grown man drinking more than two pints of lager is considered to be “binging”. The number of diseases defined as “alcohol-related” has tripled in the last twenty-five years. In fact, we drink less than we did ten years ago, less than we did one hundred years ago, and far less than we did in the 19th Century. Hysteria about drinking alcohol is a red herring invented by the health lobby. Health fascism is back with a vengeance, and minimum alcohol pricing is just another brick in the wall.”




