Quotulatiousness

February 3, 2012

Paul Wells: Harper and the Tories acted like “trust fund kids”

Filed under: Cancon, Economics, Government — Tags: , , , — Nicholas @ 11:06

An interesting column at Maclean’s this week, where Paul Wells recasts Stephen Harper’s recent speech at Davos as autobiographical confession:

This passage should be read as thinly veiled autobiography and confession. This week a former senior public servant told me that when the Conservatives came to power in 2006, they inherited structural surpluses, booming oil prices and shrinking public debt, and they acted the way trust-fund kids do. “These were like kids in a candy store who had all this allowance. ‘Wow, we can do all this stuff?’ ”

But don’t take my nameless source’s name for it. Take Jim Flaherty’s. His first budget speech, in 2006, carried the title “Focusing on Priorities.” And what did he describe as priorities? In order: “Providing immediate and substantial tax relief,” he said. “Encouraging the skilled trades.” “Families and communities.” “Investing in infrastructure.” “Security.” “Accountability.” “Expenditure management.” “Restoring fiscal balance for our Canadian federation.” And right down there at the bottom, “prosperity.” So you can’t say it wasn’t the No. 1 priority. It’s right there in ninth place.

In Flaherty’s 2007 budget speech, the word “growth” appeared once.

But sometimes the world changes and the trust fund goes bust. For Harper, that happened in the first week of December 2008, when he had to fight like a street gang to keep the job he thought he’d just been re-elected to. So much changed after that. He won in 2011 by running on the economy after years of running away from it. And now here he was in Davos to tell everyone about “the good, growth-oriented policies. The right, often tough choices.”

Flaherty is my local MP, so I’m well acquainted with his habit of talking like a conservative, but running the finance ministry like one of Pierre Trudeau’s acolytes. It must really be galling him that he has to act like a grown-up for the coming budget. As I’ve said more than once, if you factor out the military and foreign affairs aspects, there were few things that Harper did that wouldn’t have been done just as readily by Paul Martin. And I mean Martin as PM, not in his more successful guise as minister of finance.

Lemonade stand economics and government accounting

Filed under: Economics, Government — Tags: , , — Nicholas @ 10:14

An amusing illustration of the differences between real world profit and loss and the government’s accounting methods:

Parents, wanting to encourage the idea that working and making money is a good idea, drive around to buy the lemon, sugar, designer bottled water, cups, spoons, napkins, a sign or two, and probably a paper table cloth.

Aside from time and gas, the outing adds up to something north of $10. At the opening of business the next day, the kids find business is slow to nonexistent at $1 per cup. So, they start to learn about market demand and find that business becomes so brisk at only 10 cents per cup that they are sold out by noon, having served 70 cups of lemonade and hauled in $7.

[. . .]

There is a strand of economics, we’ll call it the K-brand, that sees all this as worthwhile. They add together the $10 spent by the parents to back the venture and the $7 spent by the customers and conclude that an additional $17 of spending is clearly a good thing. Surely, the neighborhood economy has been stimulated.

To the family it is a loss, chalked up as a form of consumption. If this were a business enterprise it would be a write-off. In classical economics it is a “mal-investment.”

[. . .]

But that is not how it works in government accounting. While a private business must adjust its books to reflect the losses from an intended investment that went bad, governments never do that.

When a government “invests” in, say, an airport in Johnstown, Pa., all the expenditures for labor and materials are recorded as investments and are additions to national output. Never mind that when it is later discovered that only three people a day want to fly to or from the airport, no adjustment to national wealth will reflect the folly of this “mal-investment.”

If the airport had been financed by purely private, commercial enterprises, the initial expenditures would have been recorded as investment spending, but when reality struck and the entire project was written off as a total loss, the business-profit component of national output would decline. That is, a previous bad “investment” reduces, rather than augments, current national income.

New economic ideas on employment and stimulus

Filed under: Economics, Government — Tags: , , , — Nicholas @ 10:03

Arnold Kling, writing in the Wall Street Journal, explains why (if his new theories are validated) governments have been doing exactly the wrong things to help the economy recover:

… I believe that the process of creating employment is explained not by the theories of Keynes, but rather by the theories of Adam Smith and David Ricardo. Smith famously described the advantages of specialization and division of labor. Ricardo pointed out the gains from trade that come from consuming goods that others produce more efficiently. From the perspective of Smith and Ricardo, real jobs emerge in the context of patterns of sustainable specialization and trade.

Unfortunately, the patterns of specialization and trade that had emerged five years ago were not sustainable. Many jobs in home construction, durable-goods manufacturing and distribution, and mortgage finance were dependent on housing markets with ever-rising prices. In the U.S. and the U.K. in particular, the finance industry expanded well beyond its true economic value. Once the property bubbles burst, these jobs were exposed as not viable. Meanwhile, ongoing creative destruction brought about by the Internet and globalization have continued to allow substitution of capital and emerging-market labor for industrialized countries’ labor in many sectors. Together, these phenomena have caused widespread dislocation.

More government spending will not bring back the days when supposedly triple-A-rated mortgage securities could be fashioned out of dodgy loans to unqualified borrowers. Doing so would not halt the ongoing improvements in productivity in manufacturing and retail trade. It would not facilitate the adjustments that are needed in the mix of skills in the labor force. The necessary adjustments can only be made by the decentralized efforts of entrepreneurs.

[. . .]

The word “sustainable” in “patterns of sustainable specialization and trade” refers to profitability. Patterns that are profitable can be sustained. Patterns that are not profitable must eventually be shut down. That is the problem with patterns of trade created by government borrowing and spending: They are not sustainable, as has been illustrated in the U.S. by the failure of many of the “green energy” companies supported by President Obama’s stimulus package. Moreover, as European policy makers have discovered, there are limits to how much governments can borrow to fund their experimentations in specialization and trade.

February 2, 2012

Is Sino-Forest a typical Chinese company?

Filed under: China, Economics, Government, Law — Tags: , , , — Nicholas @ 09:52

Colby Cosh posted an initial article on the investigation into Sino-Forest’s business back in June:

Timber company Sino-Forest is locked in a fascinating battle for survival against Carson Block, a stock analyst with a mixed record of publicity attacks on Chinese-based enterprises. With professional analysts reluctant to say what they make of Block’s “strong sell” report on Sino-Forest, I’m in no position to endorse it as a piece of financial advice or investigative journalism. Considered strictly as entertainment, however, the report is remarkable.

Block has documented that Sino-Forest operates with extraordinary opacity for a company whose holdings are surely very widely distributed — particularly, one assumes, within Canada. Sino-Forest claims to be doing hundreds of millions of dollars’ worth of sales through mostly unidentified “authorized intermediaries” in China — traders who are apparently happy to let the company buy title to trees, hold them as they appreciate, take on the bulk of the costs and risks in the meantime, and then snap up revenues when the trees are eventually converted into wood products. Block, having poked around a bit in the literal Chinese backwoods, questions whether much if any of the reported underlying activity is happening.

[. . .]

Sino-Forest is refusing, despite intense pressure, to make a full disclosure of the identities of the “authorized intermediaries” who are making its money. The company claims that to do so would put it at a competitive disadvantage, which makes one wonder why its business model ought to depend so heavily on sheer obscurity. One possible answer is that Sino-Forest’s real, fundamental business is some sort of cryptic regulatory arbitrage; that seems like a game potentially worth playing with paper assets in places that have a strong rule of law, but it is surely a dangerous one in a nominally Communist country, where a nationalization could be arranged in the space of an afternoon. (Or where some regional Party functionary could simply be bribed to “lose” crucial paperwork.)

Today, he posted a follow-up report:

Could a curious investor look at actual maps of timber controlled by Sino-Forest agents, you ask? Well, you see, it’s not exactly kosher for foreigners to carry around maps of remote parts of China. You can borrow them from forestry officials if you really need to. Will the local forestry bureaus confirm Sino-Forest’s claims about plantations operated by its agents? Well, sometimes they’ll give you a certificate of sorts, for all the good it might do. “The confirmations are not title documents, in the Western sense of that term,” the committee report notes. (As I understand it, the Western meaning of “title document” is that it gives one an unquestioned, justiciable claim to ownership of something, whether the Party or the Army or the good Lord in heaven approve or not.)

[. . .]

The impression given is that you need influential “backers” to do business in China. The question for the Western investor, though it’s probably now moot, is whether the real role of these backers is to help exploit Chinese resources for the benefit of the Western shareholders or to help fleece Western shareholders for the benefit of Chinese suppliers and bureaucrats.

As Jon, my former virtual landlord puts it, this is a hobby horse I like to ride now and again.

February 1, 2012

The “Iron Lady” was not good for women

Filed under: Britain, Government, History — Tags: , , , — Nicholas @ 11:06

Barbara Kay on the “failings” of Margaret Thatcher (that is, not advancing the cause of women in a way that organized feminists would have preferred):

The “Iron Lady” is, of course, not only a sobriquet for Margaret Thatcher, but the title of the wonderful new Meryl Streep biopic about the former British PM. Bagnall’s predictable answer is that no, Thatcher was not good for women: “She did not pave the way for other women, as they had every right to expect her to, since she was one of them.”

Bagnall’s stated beefs are that Thatcher urged women to leave the workforce, and only nominated one woman to her cabinet. Well, so did unions of that era ask women to leave the workforce — to open up more jobs for men. And Thatcher’s appointments were based on who was good for Britain, not who was good for women.

Politically, Thatcher despised tokenism (“I owe nothing to women’s lib,” she once said), but it is true that personally she preferred men to women. This was made clear in the film by the non-judgmental tenderness the older widowed Thatcher lavishes on her negligent son (who rarely visited, but inconsiderately telephones her from South Africa at 3 a.m. English time) and the casual verbal cruelties Thatcher tosses at her attentive, under-appreciated daughter.

I think it’s Thatcher’s lack of fellow feeling for women that’s really bugging Bagnall and other feminists. How could Thatcher not like women if she was “one of them”?

I daresay it’s for the same reason most of us hold prejudices about the opposite sex. I don’t think most gender antipathy is rooted in doctrine; I think we drift toward doctrines that confirm our lived experiences. So in spite of (fictional) Thatcher’s protestations to the doctor attending her in her old age that she prefers “thoughts” to “feelings,” Thatcher’s bias toward men sprang directly from her lived experiences and the feelings they engendered (pun intended).

January 31, 2012

Andrew Coyne on the sudden appearance of Stephen Harper’s “hidden agenda”

Filed under: Cancon, Economics, Government, Politics — Tags: , , , , — Nicholas @ 12:19

We’ve been waiting for it to appear since the 1990’s, so it’s about time that it finally put in a cameo:

At last, the hidden agenda, and not a moment too soon. Vague, indirect and overseas as it was, Stephen Harper’s Davos speech was perilously close to a vision statement, of a kind the prime minister has seldom made until now, and will henceforth have to make often.

It would be nice if he had shared with us his concerns about the ageing of the population, and the threat it poses to our long-run social and economic health, sometime before the last election, rather than joining in the all-party consensus that there was nothing wrong with Canada that could not be fixed with more and richer promises to the elderly.

[. . .]

How serious is the cost side of this conundrum? The president of the C. D. Howe Institute, Bill Robson, has projected the “net unfunded liability” implied by this unprecedented demographic shift — that is, promises to pay benefits out of public funds for which we have made no provision in taxes, “net” of any savings from having fewer children about — at about $2.8-trillion. With a T, ladies and gentlemen: about 160% of GDP. (That’s in addition to the $800-billion unfunded liability in the Canada Pension Plan and its Quebec counterpart — yes, they are pulling in enough each year to meet their current obligations, but that does not mean they are “fully funded,” the prime minister’s claims to the contrary — to say nothing of the $600-billion national debt.)

Germany issues “secret” document to Greek government on debt repayment

Filed under: Economics, Europe, Germany, Government, Greece, Politics — Tags: , — Nicholas @ 09:41

Mick Hume recounts the machinations within the European Union:

One outraged Greek government minister described it as ‘the product of a sick imagination’. Another called it ‘absolutely laughable’. The formal title of the document in question is ‘Assurance of Compliance in the Second GRC Programme’. It is neither a joke, nor a sick fantasy. It reads more like the draft of a death warrant for democracy, first in Greece and then elsewhere in Europe.

This supposedly secret document was issued by Angela Merkel’s German government to its partners in the Eurozone — and then carefully leaked, to ensure maximum impact. It sets out two extraordinary measures that the Germans want to impose to ensure that the Greek authorities comply with the swingeing budget cuts which they promised but have apparently failed to deliver to the markets’ satisfaction.

First, it says Greece must ‘legally commit itself to giving absolute priority to future debt service’. All state revenues must go first to paying debts and interest due, before a cent can be spent on public services. And the Greek government will not be allowed to threaten to default on its debts in future; if it cannot pay, it must accept that ‘further cuts’ will be ‘the only possible consequence’.

Second, the Germans want the Eurozone to oversee the ‘transfer of national budgetary sovereignty’ from Greece to ‘the European level’ under a ‘strict steering and control system’. The plan is for the Eurozone group to appoint a budget commissioner to oversee Greek finances, with the power ‘to veto decisions not in line with the budgetary targets’ set by European and international officials. If that was not humiliating enough, the Greeks would also have to look happy to bend the knee by ensuring that this new system of outside control ‘is fully enshrined in national law, preferably through constitutional amendment’.

To get the Greeks to agree to these unprecedented conditions, the German document also offers incentives — or as we used to call it, threats. If Athens does not accept the compliance measures, then ‘the Eurozone will not be able to approve guarantees for GRC II’. That is the second huge bailout of €130 billion which Greece desperately needs if it is not to go officially bust in weeks. The ‘Assurance of Compliance’ document is a ‘secret’ blackmail note.

Update: Ah, Monty captures the absurd state of the EU perfectly in a throw-away line in today’s Daily DOOM — “Like German porn, the politics of the Greek bailout just keep getting weirder and more complicated.”

Gary Johnson calls for the immediate repeal of the Patriot Act

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

Posted at the Gary Johnson campaign website:

Speaking Sunday night to a national ACLU conference, former New Mexico Governor Gary Johnson called for repealing the Patriot Act in its entirety. The two-term governor and presidential candidate’s remarks were delivered in Orlando, FL, at the ACLU’s annual National Staff Conference.

Johnson said, “Ten years ago, we learned that the fastest way to pass a bad law is to call it the ‘Patriot Act’ and force Congress to vote on it in the immediate wake of a horrible attack on the United States. The irony is that there is really very little about the Patriot Act that is patriotic. Instead, it has turned out to be yet another tool the government is using to erode privacy, individual freedom and the Constitution itself.

“Benjamin Franklin had it right. ‘Those who would give up essential liberty to purchase a little temporary safety, deserve neither liberty nor safety’.

“Absolutely, protecting the American people from those who would do us harm is the federal government’s most basic duty. Everyone gets that. But when harm is done, as on 9-11, it is the nature of government to ask for more power and more authority in order to protect us. That’s how we get laws like the Patriot Act.

Washington Post and the “Top Secret America” Project

Filed under: Government, Military, USA — Tags: , , , , , — Nicholas @ 00:03

Want to know how deep the rabbit hole goes? The Washington Post can at least get you started:

From the editors:

“Top Secret America” is a project nearly two years in the making that describes the huge national security buildup in the United States after the Sept. 11, 2001, attacks.

When it comes to national security, all too often no expense is spared and few questions are asked — with the result an enterprise so massive that nobody in government has a full understanding of it. It is, as Dana Priest and William M. Arkin have found, ubiquitous, often inefficient and mostly invisible to the people it is meant to protect and who fund it.

The articles in this series and an online database at topsecretamerica.com depict the scope and complexity of the government’s national security program through interactive maps and other graphics. Every data point on the Web site is substantiated by at least two public records.

January 29, 2012

China and the censorship state

Filed under: China, Government, Liberty, Media — Tags: , , , , , — Nicholas @ 12:02

Rebecca MacKinnon in the National Post on the ways and means of ensuring “harmony” in China’s corner of the internet:

In fall 2009, I sat in a large auditorium festooned with red banners and watched as Robin Li, CEO of Baidu, China’s dominant search engine, paraded onstage with executives from 19 other companies to receive the “China Internet Self-Discipline Award.” Officials from the quasi-governmental Internet Society of China praised them for fostering “harmonious and healthy Internet development.” In the Chinese regulatory context, “healthy” is a euphemism for “porn-free” and “crime-free.” “Harmonious” implies prevention of activity that would provoke social or political disharmony.

China’s censorship system is complex and multilayered. The outer layer is generally known as the “great firewall” of China, through which hundreds of thousands of websites are blocked from view on the Chinese Internet. What this system means in practice is that when one goes online from an ordinary commercial Internet connection inside China and tries to visit a website such as hrw.org, the website belonging to Human Rights Watch, the web browser shows an error message saying, “This page cannot be found.” This blocking is easily accomplished because the global Internet connects to the Chinese Internet through only eight “gateways,” which are easily “filtered.” At each gateway, as well as among all the different Internet service providers within China, Internet routers — the devices that move the data back and forth between different computer networks — are all configured to block long lists of website addresses and politically sensitive keywords.

These blocks can be circumvented by people who know how to use anti-censorship software tools. It is impossible to conduct accurate usage surveys, but it is believed likely that hundreds of thousands of Chinese Internet users deploy these tools to access Twitter and Facebook every day. Yet researchers estimate that out of China’s 500 million Internet users, only about 1% or so (a number somewhere in the single-digit millions — still a large number of people but not enough percentage-wise to shape majority public opinion) use these tools to get around censorship, either because most do not know how or because they lack sufficient interest in, or awareness of, what exists on the other side of the “great firewall.”

January 28, 2012

How a long-dead activist’s ideas influenced Barack Obama

Filed under: Government, Media, Politics, USA — Tags: , — Nicholas @ 11:52

In an article from 2009, Jim Geraghty traces the influence of Saul Alinsky (who died before Obama went to high school) on the President’s early days in office:

Alinsky died in 1972, when Obama was 11 years old. But three of Obama’s mentors from his Chicago days studied at a school Alinsky founded, and they taught their students the philosophy and methods of one of the first “community organizers.” Ryan Lizza wrote a 6,500-word piece on Alinsky’s influence on Obama for The New Republic, noting, “On his campaign website, one can find a photo of Obama in a classroom teaching students Alinskian methods. He stands in front of a blackboard on which he has written ‘Relationships Built on Self Interest,’ an idea illustrated by a diagram of the flow of money from corporations to the mayor.”

In a letter to the Boston Globe, Alinsky’s son wrote that “the Democratic National Convention had all the elements of the perfectly organized event, Saul Alinsky style. . . . Barack Obama’s training in Chicago by the great community organizers is showing its effectiveness. It is an amazingly powerful format, and the method of my late father always works to get the message out and get the supporters on board. When executed meticulously and thoughtfully, it is a powerful strategy for initiating change and making it really happen. Obama learned his lesson well.”

As a tool for understanding the thinking of Obama, Alinsky’s most famous book, Rules for Radicals, is simultaneously edifying and worrisome. Some passages make Machiavelli’s Prince read like a Sesame Street picture book on manners.

He also took advantage of the innumeracy of many people:

When Obama announced a paltry $100 million in budget cuts, and insisted this was part of a budget-trimming process that would add up to “real money,” he clearly understood that the public processes these numbers very differently from the way budget wonks do. Alinsky wrote: “The moment one gets into the area of $25 million and above, let alone a billion, the listener is completely out of touch, no longer really interested, because the figures have gone above his experience and almost are meaningless. Millions of Americans do not know how many million dollars make up a billion.”

That’s the same sense that Mark Steyn captured recently.

Alinsky sneered at those who would accept defeat rather than break their principles: “It’s true I might have trouble getting to sleep because it takes time to tuck those big, angelic, moral wings under the covers.” He assured his students that no one would remember their flip-flops, scoffing, “The judgment of history leans heavily on the outcome of success or failure; it spells the difference between the traitor and the patriotic hero. There can be no such thing as a successful traitor, for if one succeeds he becomes a founding father.” If you win, no one really cares how you did it.

[. . .]

Moderates thought they were electing a moderate; liberals thought they were electing a liberal. Both camps were wrong. Ideology does not have the final say in Obama’s decision-making; an Alinskyite’s core principle is to take any action that expands his power and to avoid any action that risks his power.

January 27, 2012

Is VIA Rail an unaffordable luxury?

Filed under: Cancon, Economics, Government, Railways — Tags: , , , — Nicholas @ 00:02

It hurts me to admit that long-distance passenger rail is an expensive relic of the past, and Canada’s government-owned passenger rail corporation is little more than a drain on the budget. I’m a railway fan: I founded a railway historical society, for crying out loud. I love trains, although I rarely get to use them myself. The freight railway business is doing well and it should continue to do so, as it’s generally much more economical for long-haul bulk cargo than any other option. But unlike in Europe, where population density allows passenger railways to remain a key part of the transportation network, distances and population distribution mean passenger railways can only operate profitably in a few areas (Windsor-Toronto-Montreal-Quebec City, and Boston-New York-Washington, for example).

Lorne Gunter says that recent reports about the federal government looking to sell off some or all of VIA Rail make lots of sense:

Bloomberg reported last week that the federal Tory government is quietly contemplating privatizing some or all of VIA Rail. Good. It’s about time, just as it was about time in 1991 when the Tories under Brian Mulroney thought about selling off VIA, or in 2000 when the Chretien Liberals considered it, or 2003 (Liberals again) or 2009 — the first time the current crop of Tories mulled it over.

It’s easy to imagine that every few years, Transport Canada bureaucrats return to the cabinet drawer marked “Keeping the Minister Preoccupied,” extract the file labelled “Secret Plans to Privatize VIA,” blow off the cobwebs and hand it to their latest boss. Then they sit back and wait for the predictable outcry from assorted special interests and from those few central Canadians who do actually use the train regularly.

Most years, VIA spends nearly twice as much as it makes. In 2010, for instance, VIA’s expenses were $536 million, while its revenues were just $274 million. That left a deficit of $262 million that had to be made up by Ottawa. Put another way, for every dollar VIA charges passengers for tickets, taxpayers put in 96 cents.

Shortly after we got married, Elizabeth and I took the train from Toronto to Halifax and had a great time: it was a very enjoyable trip, and we thought of the train ride as part of the vacation, not just a means of transportation. I’ve always wanted to ride The Canadian all the way to Vancouver, but at no point in the last thirty years have I simultaneously had the time available for the trip (four days on the train in each direction) and the money (right now, with a big seat sale going on it’d cost $2,137 for coach seats or $5,253 if we took a cabin). If that’s only half of what the trip would cost at market rates, there’s no way the service could support itself.

So the annual VIA subsidy amounts to an income transfer from people in most of the country who never use a passenger train to people in the central core of the country who prefer to take the train rather than drive their cars from Toronto to Montreal, but wouldn’t do so if they had to pay anywhere close to the full fare for their trips.

Every time I write about the absurdity of keeping VIA rolling, I get letters from people who insist they prefer the train to flying, driving or taking the bus or who believe trains have a lighter environmental impact or who say they can’t afford other modes. Fine, but why is it taxpayers’ duty to split the cost of your unprofitable preferences with you, 50/50?

January 26, 2012

Ireland’s septic protest

Filed under: Bureaucracy, Environment, Europe, Government — Tags: , , , , , — Nicholas @ 10:52

Elizabeth sent me a link to this Independent.ie article which allowed Lise Hand to dig deep into the Irish septic tank issue while managing not to get too potty-mouthed:

These doughty lads of the West weren’t messing about with a bit of chanting and poster-waving in the manner of an, ahem, bog-standard protest outside Leinster House. Not a bit of it, having driven since dawn in buses up from the corners of Galway, the attitude was, when we’re out, we’re out.

And so the Charge of the Septic Tank Brigade to the gates of Leinster was a colourful affair. They had brought a toilet with them and all, as a pertinent prop to illustrate their admanatine opposition to the introduction of a €50 septic-tank registration charge — a charge which affects rural Ireland, as it’s being imposed on almost half a million households who are not part of a public-sewage scheme.

What’s more, if any tanks fail an inspection, householders will be obliged to upgrade or replace them, which could cost thousands of euro.

And so, the several hundred men (and a few women) from the West were in fighting form on Kildare Street yesterday afternoon. And along with the toilet — which proved a handy seat for the protest’s organiser, Padraig ‘An Tailliura’ O’Conghaola from Rossaveal who was minding the megaphone and trying to keep a bit of order on proceedings.

There was an impressive array of giant paintings on black banners, tastefully depicting images such as sunsets and sailboats and a puzzled-looking lassie sitting on a toilet.

And there was quite a smorgasbord of slogans being waved about: from Winston Churchill’s observation, “We contend that for a nation to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle”; to more earthy exhortations, such as: “Septic Tank Charges are A Pain in the Hole”; and the bi-lingual “‘Cac’ Hogan RIP — Ireland’s Saddam Hussein”; to the pithy enjoinder, “Get A Grip — Stand Up to Europe”.

A good soundbite, but a very bad idea

Filed under: Bureaucracy, Education, Government, Liberty, Politics, USA — Tags: , , — Nicholas @ 00:08

Here is one of the proposals President Barack Obama mentioned in the State of the Union speech that must have played well in the White House, but would be a terrible idea if it really was implemented:

Many soundbites sound good, but have very harmful consequences in the real world. That’s the case for President Obama’s proposal in his State of the Union Address to not allow anyone to leave school until age 18 or graduation. This proposal originated with “the National Education Association, which stands to gain from the idea a measurable boost to its dues-paying ranks, and which has in fact proposed mandatory schooling for nongraduates up to age 21.” This proposal could result in an increase in school violence by bored and frustrated 17-year-olds who hate school but are forced to attend. It would also make it even harder for teachers to maintain order in dangerous schools, contributing to an exodus of talented teachers who would rather teach than be babysitters or policemen. And it could result in truancy charges and arrests for parents who fail to get their stubborn, fully-grown offspring to attend school.

As one commenter notes, “If the union is really pushing something like this, I wonder how many of the members actually welcome it. How many teachers really want to deal with a 17 year old who doesn’t want to be in school? The type that drop out can’t be a joy to teach.” Commenting on the NEA’s ultimate desire to keep people in school until age 21 (Obama wants every American to attend college or at least get “more than a high-school diploma”), another commenter notes, “I suppose Obama would send the cops after those notoriously unproductive dropouts Bill Gates and Mark Zuckerberg.”

January 25, 2012

The Cato Institute response to the State of the Union 2012

Filed under: Economics, Education, Government, Liberty, Politics, USA — Tags: , , , , — Nicholas @ 12:00

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