Quotulatiousness

August 9, 2011

We have a saying in Britain … we call it ‘shitting on your own doorstep’

Filed under: Britain, Government, Law — Tags: , , , , — Nicholas @ 12:11

Brendan O’Neill refutes some of the theories on what underlying causes are motivating the London riots:

Many commentators are on a mission to contextualise the riots that have swept parts of urban London and other British cities. ‘It’s very naive to look at these riots without the context’, says one journalist, who says the reason the violence kicked off in the London suburb of Tottenham is because ‘that area is getting 75% cuts [in public services]’. Others have said that the political context for the rioting is youth unemployment or working-class anger at David Cameron’s cuts agenda. ‘There is a context to London’s riots that can’t be ignored’, said a writer for the Guardian, and it is the ‘backdrop of brutal cuts and enforced austerity measures’. The ‘mass unrest’ is a protest against unhinged capitalism, apparently.

These observers are right that there is a political context to the riots. They are right to argue that while the police shooting of young black man Mark Duggan may ostensibly have been the trigger for the street violence, there is a broader context to the disturbances. But they are wrong about what the political context is. Painting these riots as some kind of action replay of historic political streetfights against capitalist bosses or racist cops might allow armchair radicals to get their intellectual rocks off, as they lift their noses from dusty tomes about the Levellers or the Suffragettes and fantasise that a political upheaval of equal worth is now occurring outside their windows. But such shameless projection misses what is new and peculiar and deeply worrying about these riots. The political context is not the cuts agenda or racist policing — it is the welfare state, which, it is now clear, has nurtured a new generation that has absolutely no sense of community spirit or social solidarity.

What we have on the streets of London and elsewhere are welfare-state mobs. The youth who are ‘rising up’ — actually they are simply shattering their own communities — represent a generation that has been more suckled by the state than any generation before it. They live in those urban territories where the sharp-elbowed intrusion of the welfare state over the past 30 years has pushed aside older ideals of self-reliance and community spirit. The march of the welfare state into every aspect of less well-off urban people’s existences, from their financial wellbeing to their childrearing habits and even into their emotional lives, with the rise of therapeutic welfarism designed to ensure that the poor remain ‘mentally fit’, has helped to undermine such things as individual resourcefulness and social bonding. The anti-social youthful rioters look to me like the end product of such an anti-social system of state intervention.

August 8, 2011

“Canada has become the snotty kid at the front of the class that gets every answer right”

Filed under: Cancon, Economics, Government, USA — Tags: , — Nicholas @ 15:39

Kelly McParland reads the fine print:

Near the bottom of the Standard & Poor’s report that downgraded U.S. debt last week is a tribute to the Canadian economy that could contribute to what’s becoming a serious case of swollen-headedness.

In comparing the U.S. situation to “relevant peers”, i.e. other western economies, it notes that Canada has become the snotty kid at the front of the class that gets every answer right. Of five countries — Canada, the U.S., Germany, France and Britain — Canada has the lowest government debt burden (net debt to gross domestic product), at 34%.

It adds: “By 2015, we project that … net public debt to GDP ratios will range between 30% (lowest, Canada) and 83% (highest, France), with the U.S. debt burden at 79%.”

And while the other four are all expected to see their debt declining, in the U.S. it could still be on the rise. So nya-nya to you, rest of western world.

Subsidized flights from remote locations

Filed under: Government, Politics, USA — Tags: , , , — Nicholas @ 12:57

Steve Chapman knows where to get the “best” deal in government subsidy of domestic flights:

As a resident of Illinois, I’d never had any particular desire to fly from McCook, Nebraska, to Denver. But lately, I’ve been looking for an opportunity. Turns out the federal government is willing to pay me a handsome fee to do it.

Oh, I wouldn’t get the cash directly. But the Department of Transportation provides more than $2 million to subsidize that particular route, which works out to about $1,000 for every passenger. My fare, meanwhile, would be less than $150.

I could get an even bigger hand on the hop from Lewistown, Montana, to Billings—$1,343. But if I’m feeling the need for indulgence, there is nothing to beat the flight from Ely, Nevada, to Denver, for which Washington will kick in $3,720. For that sum, of course, it could buy me a perfectly functional used car.

These extravagances are part of the Essential Air Service initiative, which is part of the reason for the recent congressional impasse over a bill to keep the Federal Aviation Administration operating.

China discovers that “You can’t stop the signal” again

Filed under: China, Government, Media, Technology — Tags: , , , , , — Nicholas @ 12:32

Strategy Page looks at the way news was disseminated about the high speed rail crash despite the Chinese government’s attempts to quash the story:

Since July 27th, China got another reminder that it no longer can control the news. On July 27th, China’s high-speed “bullet train” had a fatal accident, leaving over 30 dead and many more injured. The cause was inadequate safety and communications systems. In this case, one train was halted by a flaw in the signalling system and another came up from behind and there was the collision that sent four train cars off the tracks, and a bridge. The government immediately tried to keep the accident out of the news. This effort failed because of the ingenuity of Chinese Internet users, despite the government ban on Twitter in China. The ban was meant to impede the rapid spread of news the government wanted to control. Given enough time, the state controlled media could get out a story the government could live with. But blog, RSS and other Internet tools have been tweaked to do the same thing Twitter does. This was especially true of “micro-blogs” that quickly distribute the same 140 character messages Twitter does. Not as well, but good enough, and the news the government wanted to control spread uncontrollably. This included pictures and video of the accident, which the government planned to keep out of the news.

August 7, 2011

Mitchell: Obama bears only 15% of the blame for the downgrade

Filed under: Economics, Government, History, USA — Tags: , , , , , , , — Nicholas @ 17:57

In a blog post guaranteed to tick off members of both parties, Daniel Mitchell tries a first approximation of where the blame should be assigned:

Well, it turns out that Social Security is a relatively minor part of the problem, so even though President Roosevelt’s policies exacerbated and extended the Great Depression, the program he created is only responsible for a small share of the fiscal crisis. To give the illusion of scientific exactitude, let’s assign FDR 13.2 percent of the blame.

The health care numbers are much harder to disentangle because it’s not apparent how much of the increase is due to Medicare, Medicaid, Bush’s prescription drug entitlement, and Obamacare. A healthcare policy wonk may know these numbers, but the CBO long-run forecast didn’t provide much detail.

So with a big caveat that these are just wild estimations, I feel reasonably comfortable in saying that both Bush and Obama made matters worse with their reckless entitlement expansions, but that they merely deepened a fiscal hole that was created when President Johnson imposed Medicare and Medicaid.

July 26, 2011

ATF sting turns into arms pipeline for drug gang

Filed under: Americas, Government, USA — Tags: , , , — Nicholas @ 08:51

Operation Fast and Furious may have been intended to work as a trap for gun smugglers but appears to have become a reliable source of guns for Mexican gangsters:

Congressional investigators examining a gun-trafficking sting investigation known as Operation Fast and Furious have identified 122 weapons linked to the operation that have been recovered at crime scenes in Mexico, according to a report they are expected to release Tuesday.

The report, which offers new details about the operation, lists 48 occasions between November 2009 and February 2011 in which Mexican authorities found one or more such weapons, based on internal e-mails of the Bureau of Alcohol, Tobacco, Firearms and Explosives, whose Phoenix office set up the operation. It was compiled by the staffs of Representative Darrell Issa of California and Senator Charles E. Grassley of Iowa, the two Republicans leading the investigation.

“The faulty design of Operation Fast and Furious led to tragic consequences,” the report concludes. “Countless United States and Mexican citizens suffered as a result.”

July 25, 2011

More on that Chinese rail crash

Filed under: China, Government, Media, Technology — Tags: , , , — Nicholas @ 12:49

The official story has changed a few times since the accident, and at least some Chinese feel they are entitled to the truth about the accident:

Internet users attacked the government’s response to the disaster after authorities muzzled media coverage and urged reporters to focus on rescue efforts. “We have the right to know the truth!” wrote one microblogger called kangfu xiaodingdang. “That’s our basic right!”

Leaked propaganda directives ordered journalists not to investigate the causes and footage emerged of bulldozers shovelling dirt over carriages.

Wang, the railways spokesman, said no one could or would bury the story. He said a colleague told him the wreckage was needed to fill in a muddy ditch to make rescue efforts easier.

But Hong Kong University’s China Media Project said propaganda authorities have ordered media not to send reporters to the scene, not to report too frequently and not to link the story to high-speed rail development. “There must be no seeking after the causes [of the accident], rather, statements from authoritative departments must be followed,” said one directive. Another ordered: “No calling into doubt, no development [of further issues], no speculation, and no dissemination [of such things] on personal microblogs!”

July 24, 2011

Amartya Sen’s “no universal justice” notion

Filed under: Books, Government, Law, Liberty — Tags: , — Nicholas @ 13:11

Eric Falkenstein is reading Amartya Sen’s The Idea of Justice and pulls out this example from the book:

Take three kids and a flute. Anne says the flute should be given to her because she is the only one who knows how to play it. Bob says the flute should be handed to him as he is so poor he has no toys to play with. Carla says the flute is hers because she made it.

Sen argues that who gets the flute depends on your philosophy of justice. Bob, the poorest, will have the support of the economic egalitarian. The libertarian would opt for Carla. The utilitarian will argue for Anne because she will get the maximum pleasure, as she can actually play the instrument. Sen states there are no institutional arrangements that can help us resolve this dispute in a universally accepted just manner.

This supposedly shows that there is no single theory of justice, rather one should look at enhancing the redistribution of life-saving goods and removing ‘injustice’.

I haven’t read Sen’s book (and have no immediate intention to do so), so perhaps I’m getting the wrong notion from the example here, but let me rephrase it a tiny bit to clarify why the example didn’t work for me:

Clara makes a flute, which is then taken from her because it might be “awarded” to someone who knows how to play it, or to someone who has no toys. Clara might, under some notions of “justice” be given back the flute she made.

I don’t see this as an example of “justice” so much as a form of theft.

No, that’s not suspicious at all . . .

Filed under: China, Government, Technology — Tags: , , , , , — Nicholas @ 11:39

. . . when you use backhoes to bury the wreckage before determining the cause of the high speed rail crash:

The wreck on Saturday night killed 35 and injured 210 after a high-speed train lost power for more than 20 minutes and then was rear-ended by another train, according to the Xinhua news agency. Six cars derailed and two fell off a viaduct near the city of Wenzhou.

[. . .]

Photos on the popular Weibo microblogging service showed backhoes burying the wrecked train near the site. Critics said the wreckage needed to be carefully examined for causes of the malfunction, but the railway ministry said that the trains contain valuable national technology and could not be left in the open in case it fell into the wrong hands.

Foreign companies maintain that some crucial technology was stolen from their imported trains. But more importantly to domestic audiences is the perception of a coverup. Initial reports of how the accident occurred are already being partly contradicted by reports in the official media.

July 23, 2011

Virginia’s state surplus less than meets the eye

Filed under: Economics, Government — Tags: , , — Nicholas @ 10:02

Doug Mataconis takes a jaundiced eye to the Virginia “surplus”:

So, in other words, what we’ve got here are accounting gimmicks. In one case, the State legally permitted itself to defer a contribution to public pensions that were twice as big as the reported budget surplus. In the other, they legally permitted themselves to collect thirteen months of sales taxes for a twelve month fiscal year. The impact of both of these should be rather obvious. Reduce obligations while you are increasing revenues and, wow what do you know, we’ve got a surplus.

This isn’t at all new. As Virginia political bloggers Norm Leahy and Adam Bitley noted last August, the legislature used virtually the same accounting tricks to create the $220 million surplus that was reported last year.

It’s also not unique to Virginia. The same techniques are used in states across the country, and in the Federal Budget. Call it “off book budgeting.” Call it “creative accounting.” Call it whatever you like really, but it’s a pretty stark demonstration of the just how hard it really is to believe any government when they say their budget is balanced. More likely than not, they’ve used one or more of these gimmicks, plus a few others, to defer budget items and artificially increase revenue to make it appear that the budget is in balance when it really isn’t.

July 20, 2011

Here’s a bold proposal for Greece

Filed under: Economics, Europe, Government, Greece — Tags: , — Nicholas @ 10:09

Bill Frezza has an idea of what Greece really needs:

what is the purpose of casting Greece into some selective temporary financial purgatory where the irrelevant Greek economy can continue embarrassing anyone foolish enough to lend their dysfunctional government a dime? Why not go all the way and give the country what many of its people have been violently demanding for almost a century?

Let them have Communism.

[. . .]

What the world needs, lest we forget, is a contemporary example of Communism in action. What better candidate than Greece? They’ve been pining for it for years, exhibiting a level of anti-capitalist vitriol unmatched in any developed country. They are temperamentally attuned to it, having driven all hard working Greeks abroad in search of opportunity. They pose no military threat to their neighbors, unless you quake at the sight of soldiers marching around in white skirts. And they have all the trappings of a modern Western nation, making them an uncompromised test bed for Marxist theories. Just toss them out of the European Union, cut off the flow of free Euros, and hand them back the printing plates for their old drachmas. Then stand back for a generation and watch.

The land that invented democracy used it to perfect the art of living at the expense of others, an example all Western democracies appear intent on emulating. Being the first to run out of other people’s money makes Greece truly ripe to take the next logical step beyond socialism.

H/T to Jon, my former virtual landlord, for the link. As he suggests “this probably would be kinda fun to watch”. After all, retro-kitsch “Soviet theme parks” are a going concern, why not a country-sized version?

July 19, 2011

Walsh: This is what the debt-ceiling fight is really all about

Filed under: Economics, Government, USA — Tags: , , , , — Nicholas @ 09:20

Michael A. Walsh puts the real issue into focus:

Forget all the numbers being tossed around in Washington — the millions and billions and trillions of dollars being taxed, borrowed, printed and spent as the country approaches the Aug. 2 debt-ceiling deadline.

Forget the political jockeying for position between a president desperately seeking re-election in 16 months and a Congress equally desperately seeking not to be blamed for spending even more money that we don’t have.

Forget the fact that such “entitlements” as Social Security and Medicare — social-insurance programs that the public long thought to be actuarially sound — have been exposed as little more than legal Ponzi schemes, paying today’s benefits out of tomorrow’s borrowed receipts.

Instead, just ask yourself this simple question: When did it become the primary function of the federal government to send millions of Americans checks?

For this, in essence, is what the debt-ceiling fight is all about — the inexorable and ultimately fatal growth of the welfare state. If you don’t believe it, just look at President Obama’s veiled threat to withhold Grandma’s Social Security benefits if Congress doesn’t let him borrow another $2 trillion or so to get himself safely past the 2012 election.

July 18, 2011

It won’t hurt just the “rich”

Filed under: Economics, Government, USA — Tags: , , , , — Nicholas @ 11:00

Michael Boskin illustrates just what the current levels of US government spending will mean when translated into personal tax rates:

Many Democrats demand no changes to Social Security and Medicare spending. But these programs are projected to run ever-growing deficits totaling tens of trillions of dollars in coming decades, primarily from rising real benefits per beneficiary. To cover these projected deficits would require continually higher income and payroll taxes for Social Security and Medicare on all taxpayers that would drive the combined marginal tax rate on labor income to more than 70% by 2035 and 80% by 2050. And that’s before accounting for the Laffer effect, likely future interest costs, state deficits and the rising ratio of voters receiving government payments to those paying income taxes.

It would be a huge mistake to imagine that the cumulative, cascading burden of many tax rates on the same income will leave the middle class untouched. Take a teacher in California earning $60,000. A current federal rate of 25%, a 9.5% California rate, and 15.3% payroll tax yield a combined income tax rate of 45%. The income tax increases to cover the CBO’s projected federal deficit in 2016 raises that to 52%. Covering future Social Security and Medicare deficits brings the combined marginal tax rate on that middle-income taxpayer to an astounding 71%. That teacher working a summer job would keep just 29% of her wages. At the margin, virtually everyone would be working primarily for the government, reduced to a minority partner in their own labor.

Nobody — rich, middle-income or poor — can afford to have the economy so burdened. Higher tax rates are the major reason why European per-capita income, according to the Organization for Economic Cooperation and Development, is about 30% lower than in the United States — a permanent difference many times the temporary decline in the recent recession and anemic recovery.

While policy makers may shrug off the impact of higher tax rates, it has a significant effect on individual choices when it comes to part-time jobs, overtime, and even raises. Even if in reality working a few hours of overtime won’t make a difference, psychologically, the higher tax burden can act as a deterrent: “why put in the effort if the government gets more out of my effort than I do?”

July 17, 2011

Nick Gillespie and Matt Welch on a libertarian foreign policy

Filed under: Government, Military, Politics, USA — Tags: , , , , , — Nicholas @ 12:31

The third part of an interview with Gillespie and Welch, covering libertarian foreign policy ideas:

Federal government to unveil new retirement scheme

Filed under: Cancon, Economics, Government — Tags: , — Nicholas @ 12:09

Jonathan Chevreau looks at the federal government’s plan to introduce Pooled Registered Pension Plans (PRPPs):

This is a giant potential opportunity for the nation’s banks, mutual fund companies, insurance firms and a growing number of manufacturers of exchange-traded funds. Pension consultants, actuaries, financial planners and investment advisors will also see various business opportunities created as PRPPs catch on — primarily with small- and medium-sized businesses that never before offered its workers a pension plan. Mr. Menzies, the cabinet minister responsible for PRPPs, says he’s travelled the country consulting with the provinces.

“When the concept of the pooled RPP was shared with the provinces and territories they all came together to agree this makes sense.”

[. . .]

PRPPs will be (hopefully) low-cost defined contribution schemes run by the private sector where ultimate benefits will depend on how financial markets perform. The PRPPs would resemble the United States’ 401(k)s or Australia’s superannuation scheme.

They will be administered by financial institutions rather than employers, which is why Bay Street views them as a potential bonanza. As the “pooled” part of their name suggests, assets are co-mingled for investment purposes to keep down costs.

The original idea was that PRPPs would be mandatory for employers that don’t offer their own registered pension plan but Mr. Menzies says that decision would be up to the provinces. “We’re putting it out there that there is an option for the employer and for the employee. I’ve spoken to many small businesses that said ‘finally here’s a low-cost affordable plan I can enroll my employees in.’ It will be a retention and enticement tool.”

Employers won’t be forced to make contributions, but may choose to do so. Employees will be automatically enrolled at a base contribution rate, but they can opt out.

There will be two types of members: Employed and individuals. The latter include the self-employed and employees of organizations that do not offer PRPPs. Benefits are portable. Employers offering PRPPs can move to a new plan if they wish. There are fewer portability restrictions for individual members, making them convenient if they later change jobs and want to take their pension with them.

That portability is key: I’ve wondered for years why unions have not been hammering on that aspect in their negotiations with big employers (although unions generally pay most attention to the needs of current union members at the expense of both retired and future members). By the time you’ve worked at a company long enough to qualify for their pension scheme, you’re often locked in due to the lack of portability of your pension. If you leave the firm, voluntarily or not, you lose much of the potential return on the pension contributions you’ve already made (if you don’t lose them altogether).

This proposal may well solve much of that problem.

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