Quotulatiousness

June 24, 2015

The precarious economics of recycling today

Filed under: Business, Economics, Environment, USA — Tags: — Nicholas @ 03:00

The recycling industry is having economic problems, which means many municipalities are being forced to share those problems:

Once a profitable business for cities and private employers alike, recycling in recent years has become a money-sucking enterprise. The District, Baltimore and many counties in between are contributing millions annually to prop up one of the nation’s busiest facilities here in Elkridge, Md. — but it is still losing money. In fact, almost every facility like it in the country is running in the red. And Waste Management and other recyclers say that more than 2,000 municipalities are paying to dispose of their recyclables instead of the other way around.

In short, the business of American recycling has stalled. And industry leaders warn that the situation is worse than it appears.

“If people feel that recycling is important — and I think they do, increasingly — then we are talking about a nationwide crisis,” said David Steiner, chief executive of Waste Management, the nation’s largest recycler that owns the Elkridge plant and 50 others.

[…]

The problems of recycling in America are both global and local. A storm of falling oil prices, a strong dollar and a weakened economy in China have sent prices for American recyclables plummeting worldwide.

Environmentalists and other die-hard conservation advocates question if the industry is overstating a cyclical slump.

“If you look at the long-term trends, there is no doubt that the markets for most recyclables have matured and that the economics of recycling, although it varies, has generally been moving in the right direction,” said Eric A. Goldstein, a lawyer with the Natural Resources Defense Council who tracks solid waste and recycling in New York.

June 23, 2015

Obama needs to convey a sense of urgency over the OPM hack

Filed under: Bureaucracy, Government, Technology, USA — Tags: , , , , — Nicholas @ 04:00

Megan McArdle on what she characterizes as possibly “the worst cyber-breach the U.S. has ever experienced”:

And yet, neither the government nor the public seems to be taking it all that seriously. It’s been getting considerably less play than the Snowden affair did, or the administration’s other massively public IT failure: the meltdown of the Obamacare exchanges. For that matter, Google News returns more hits on a papal encyclical about climate change that will have no obvious impact on anything than it does for a major security breach in the U.S. government. The administration certainly doesn’t seem that concerned. Yesterday, the White House told Reuters that President Obama “continues to have confidence in Office of Personnel Management Director Katherine Archuleta.”

I’m tempted to suggest that the confidence our president expresses in people who preside over these cyber-disasters, and the remarkable string of said cyber-disasters that have occurred under his presidency, might actually be connected. So tempted that I actually am suggesting it. President Obama’s administration has been marked by titanic serial IT disasters, and no one seems to feel any particular urgency about preventing the next one. By now, that’s hardly surprising. Kathleen Sebelius was eased out months after the Department of Health and Human Services botched the one absolutely crucial element of the Obamacare rollout. The NSA director’s offer to resign over the Snowden leak was politely declined. And now, apparently, Obama has full faith and confidence in the folks at OPM. Why shouldn’t he? Voters have never held Obama responsible for his administration’s appalling IT record, so why should he demand accountability from those below him?

Yes, yes, I know. You can’t say this is all Obama’s fault. Government IT is almost doomed to be terrible; the public sector can’t pay salaries that are competitive with the private sector, they’re hampered by government contracting rules, and their bureaucratic procedures make it hard to build good systems. And that’s all true. Yet note this: When the exchanges crashed on their maiden flight, the government managed to build a crudely functioning website in, basically, a month, a task they’d been systematically failing at for the previous three years. What was the difference? Urgency. When Obama understood that his presidency was on the line, he made sure it got done.

Update: It’s now asserted that the OPM hack exposed more than four times as many people’s personal data than the agency had previously admitted.

The personal data of an estimated 18 million current, former and prospective federal employees were affected by a cyber breach at the Office of Personnel Management – more than four times the 4.2 million the agency has publicly acknowledged. The number is expected to grow, according to U.S. officials briefed on the investigation.

FBI Director James Comey gave the 18 million estimate in a closed-door briefing to Senators in recent weeks, using the OPM’s own internal data, according to U.S. officials briefed on the matter. Those affected could include people who applied for government jobs, but never actually ended up working for the government.

The same hackers who accessed OPM’s data are believed to have last year breached an OPM contractor, KeyPoint Government Solutions, U.S. officials said. When the OPM breach was discovered in April, investigators found that KeyPoint security credentials were used to breach the OPM system.

Some investigators believe that after that intrusion last year, OPM officials should have blocked all access from KeyPoint, and that doing so could have prevented more serious damage. But a person briefed on the investigation says OPM officials don’t believe such a move would have made a difference. That’s because the OPM breach is believed to have pre-dated the KeyPoint breach. Hackers are also believed to have built their own backdoor access to the OPM system, armed with high-level system administrator access to the system. One official called it the “keys to the kingdom.” KeyPoint did not respond to CNN’s request for comment.

U.S. investigators believe the Chinese government is behind the cyber intrusion, which are considered the worst ever against the U.S. government.

“Being skunked” takes on a new meaning

Filed under: Law, Politics, Technology, USA — Tags: , , , — Nicholas @ 02:00

At Defence One, Patrick Tucker looks at an “improved” stink bomb now available to American police departments:

As protestors and police officers clash on the streets of Baltimore and other divided cities, some police departments are stockpiling a highly controversial weapon to control civil unrest.

It’s called Skunk, a type of “malodorant,” or in plainer language, a foul-smelling liquid. Technically nontoxic but incredibly disgusting, it has been described as a cross between “dead animal and human excrement.” Untreated, the smell lingers for weeks.

The Israeli Defense Forces developed Skunk in 2008 as a crowd-control weapon for use against Palestinians. Now Mistral, a company out of Bethesda, Md., says they are providing it to police departments in the United States.

Skunk is composed of a combination of baking soda and amino acids, Mistral general manager Stephen Rust said at the National Defense Industrial Association’s Armament Systems Forum on April 20. “You can drink it, but you wouldn’t want to,” said Rust, a retired U.S. Army project manager.

The Israelis first used it in 2008 to disperse Palestinians protesting in the West Bank. A BBC video shows its first use in action, sprayed by a hose, a system that has come to be known as the “crap cannon.”

June 22, 2015

Breaking – it’s a nation-wide crime wave (when you cherry-pick your data)

Filed under: Law, USA — Tags: , , — Nicholas @ 04:00

Daniel Bier looks at how Wall Street Journal contributor Heather Mac Donald concocted her data to prove that there’s a rising tide of crime across the United States:

Heather Mac Donald is back in the Wall Street Journal to defend her thesis that there is a huge national crime wave and that protesters and police reformers are to blame.

In her original piece, Mac Donald cherry picked whatever cities and whatever categories of crime showed an increase so far this year, stacked up all the statistics that supported her idea, ignored all the ones that didn’t, and concluded we are suffering a “nationwide crime wave.”

Of course, you could do this kind of thing any year to claim that crime is rising. But it isn’t.

The fifteen largest cities have seen a 2% net decrease in murder so far this year. Eight saw a rise in murder rates, and seven saw an even larger decline.

Guess which cities Mac Donald mentioned and which she did not.

This is how you play tennis without the net. Or lines.

And in her recent post, buried seven paragraphs in, comes this admission: “It is true that violent crime has not skyrocketed in every American city — but my article didn’t say it had.”

But neither did her article acknowledge that murder in big cities was falling overall — in fact, it didn’t acknowledge that murder or violent crime was declining anywhere. Apparently, in her view, it is acceptable to present a distorted view of the data as long as it isn’t an outright lie.

An insurance scam that targets the most vulnerable

Filed under: Bureaucracy, Law, USA — Tags: , , , — Nicholas @ 02:00

At The Intercept, Juan Thompson talks about a burgeoning insurance scam that not only rips off the victims for their insurance premiums but then makes it worse through police action:

Martin was taken in by a widening scam in which crooks, posing as auto insurance agents, prey on working people struggling to find affordable policies. Under the scam, the perpetrator offers auto insurance for a low price — low because the scammer, posing as a broker, will buy an authentic policy using fraudulent means of payment, keeping the policy just long enough to collect a proof of insurance card.

The racket is a growing problem in New York City and South Florida, according to an insurance industry group, but seems most prevalent in Michigan, where premiums are inflated by a state mandate that drivers purchase insurance plans that have unlimited lifetime medical benefits, among other features. Victims in Michigan are thrown even deeper into crisis when police, as is common there, accuse victims of being in on the scam and seize their vehicles and other assets under civil forfeiture laws.

The scam and seizures show how crooks and cops can end up working in concert to further imperil those already on the economic brink. Indeed, in this case, low-income residents are pinched at every turn. They start off with especially high insurance premiums, consumer advocates argue, because insurance companies sometimes charge people in low-income communities more for auto insurance in a practice some have labeled modern redlining.

Bogus agents exploit the need for cheaper policies by selling insurance that’s too good to be true, leaving victims financially exposed, for example, in the case of an accident. As if all that weren’t enough, the police then turn on the victims of the fraud, who are far easier to track down than the original perpetrators.

“You have a blend of crooked agents selling innocent, squeezed drivers bogus policies and insurance cards, and high insurance premiums,” said James Quiggle of the Coalition Against Insurance Fraud, a group that receives funding from insurance companies.

QotD: Obesity

Filed under: Health, Quotations, USA — Tags: — Nicholas @ 01:00

The most maddening example of this is, of course, the case of thin people, or folks who could really stand to lose ten pounds, lecturing the obese on how stupid they are for letting themselves get fat. […]

As a friend who really struggles with his weight points out, the author seems not to understand that for people with a weight problem, weight loss often involves both: you’re tired and miserable and overweight, and also, you’re spending a huge amount of mental energy counting calories and making time for exercise.

Moreover, this really underplays the amount of mental energy we’re talking about. When you talk to people who have successfully lost really large amounts of weight as adults — amounts that bring them from the really risky “super-obese” category into something more normal — you find two things. First, that most of them don’t keep it off, unless they have bariatric surgery, in which case, 50 percent of them keep it off. And second, that the people who are keeping the weight off without surgery are going to extreme lengths to maintain their weight loss, lengths that most of us would probably find difficult to fit into our lives: weighing every ounce of food they consume, counting calories obsessively, exercising for long periods every day, and constantly battling “intrusive thoughts of food.”

It’s not quite fair to say that most of the public health experts I’ve seen talking about obesity are thin people brightly telling fat people that “Everything would be fine if you’d just be more like me!” But it’s not really that far off the mark, either. In the words of another friend who struggled with his weight, and got quite testy when I suggested weight loss was easy, “You’ve hit the pick six in the genetic lottery, and you think you earned it.”

Megan McArdle, “Dinner, With a Side of Self-Righteousness”, Bloomberg View, 2015-03-27.

June 20, 2015

If World War III had broken out in 1955

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

Mark Stout looks at what a global nuclear war might have looked like merely ten years after the first nuclear weapons were used to end the Second World War:

Those of us who came of age in the late Cold War imagined that if a nuclear war came it would be The End of Everything. By contrast, those who came of age after the Cold War never thought there’d be a nuclear war at all. With Putin’s military forces on the loose in Ukraine and all around Europe, the chance of war by miscalculation, even a nuclear war is rising. What would such a war look like? With the world situation vastly different from the late Cold War and with nuclear arsenals much smaller, it would probably not be a brief nuclear exchange but something more limited, albeit still horrific.

Perhaps such a war would be like one that the U.S. government imagined in 1955. In June of that year, the government conducted a massive relocation exercise called Operation Alert in cities across the country. A British Pathé newsreel tells the story in breathless shorthand. As part of the exercise, the State Department moved key personnel to an above-ground location at the foot of the Shenandoah Mountains in Front Royal, Virginia that now belongs to the Smithsonian Institution. There, according to records held at the National Archives, they practiced how they would continue to conduct the business of the department in case of World War III.

Among other documents, the Archives holds “Situation Report #1,” issued by the State Department’s intelligence arm on D+1 of the war game. It is an interesting artifact of the time. In 1955 nuclear arsenals on both sides of the Iron Curtain were much smaller than they became later and intercontinental ballistic missiles did not exist. Thus, the Soviet ability to strike the U.S. homeland was also much more limited and the “war” unfolded much more slowly than it would have even ten years later. As a result, the imaginary war of June 1955 combined attributes of World War II as well as the World War III that haunted us in the 1980s.

June 19, 2015

Even the Fed pays attention to the rise of craft brewing

Filed under: Business, USA — Tags: , , , — Nicholas @ 03:00

The Federal Reserve Bank of Richmond had an interesting article on the rise of craft beer by Jamie Feik and Joseph Mengedoth:

In many places across the country, it’s hard not to notice the shift in product offerings at local bars and restaurants and in the beer aisle of the grocery store. The colorful, ornate tap handles of craft brewers have joined the classic blue, red, and silver posts of the traditional powerhouses, and bartenders play the role of consultant purveying the selections. Shoppers who once stood in the beer aisle trying to decide how many cans of beer to buy now stand in front of coolers filled with different brands and styles of beer available in single bottles, packs of four, six, or 12, and even on tap in a growing number of stores. Many of them have been made at a brewery down the street; according to the Brewer’s Association (BA), the trade association that represents the craft beer industry, approximately 75 percent of the drinking-age population in the United States lives within 10 miles of a brewery.

In 2014, there were 615 new craft breweries that opened, pushing the number in the United States to 3,418, more than twice the number that existed just five years earlier. The BA defines a craft brewery as one that produces fewer than 6 million barrels a year, is less than 25 percent controlled by an alcoholic beverage industry member that is not itself a craft brewer, and produces a beverage “whose flavor derives from traditional or innovative brewing ingredients and their fermentation.” The ownership restriction excludes the craft-style subsidiaries — such as Shock Top, Goose Island, Leinenkugel, and Blue Moon — of large brewers like Anheuser-Busch InBev and MillerCoors (the two largest brewers in the United States).

Although craft beer remains a relatively small segment of the market, accounting for only 11 percent of the beer produced in the United States in 2014, the segment is growing rapidly. Craft beer’s share of production has more than doubled since 2010, when it was just 5 percent. In 2014, craft beer sales volume increased nearly 18 percent, according to the BA, versus just 0.5 percent for the overall beer industry. The retail dollar value of craft beer grew 22 percent in 2014, while the total U.S. beer market increased only 1.5 percent in value.

The growth of small breweries runs counter to the trend of consolidation in the beverage industry that persisted through much of the 20th century. Why are craft brewers thriving?

Camouflage – the changing of the spots

Filed under: Military, USA — Tags: , , , — Nicholas @ 02:00

At Strategy Page, a quick look at the US Army’s latest change in camouflage clothing and equipment:

The U.S. Army has begun issuing its new combat uniforms featuring a new and improved camouflage pattern. This is yet another effort to deal with troop complaints about the shortcomings of earlier camouflage patterns. Back in 2012 the army has decided to scrap its current digital pattern camouflage combat uniforms and replace them with the more effective (according to the troops), but more expensive, MultiCam. Actually, MultiCam itself was not used but a pattern selected for the new uniforms, but one based on MultiCam. This variant is called Scorpion W2 and the army gave it another, official, name; Operational Camouflage Pattern (OCP). So if you hear someone talking about the new uniform being Scorpion W2 or MultiCam they are not entirely wrong. But the final, official term is OCP.

Since 2001 both the army and marines adopted new, digital camouflage pattern field uniforms. But in Afghanistan U.S. soldiers noted that the marine digital uniforms (called MARPAT, for Marine Pattern) were superior to the army UCP (Universal Camouflage Pattern). Both UCP and MARPAT were introduced at the same time (2002). From the beginning there was growing dissatisfaction with UCP, and it became a major issue because all the infantry have access to the Internet, where the constant clamor for something better than UCP eventually forced the army to do something.

This is ironic because UCP itself was another variant of MARPAT but a poor one, at least according to soldiers in UCP who encountered marines wearing MARPAT. Even more ironic is that MARPAT is based on research originally done by the army. Thus some of the resistance to copying MARPAT is admitting the marines took the same research on digital camouflage and produced a superior pattern for combat uniforms.

June 18, 2015

P.J. O’Rourke – Donald Trump may be the perfectly “representative” candidate

Filed under: Media, Politics, USA — Tags: , , , , — Nicholas @ 05:00

If you’re looking for the Tsar of Tacky, the Baron of Bad Taste, the Grand Duke of Garishness, then you really will love Donald Trump for President, because he is America personified:

Has the office of the presidency diminished in stature until it attracts only the midgets of public life?

Or have our politicians shrunk until none of them can pass the carnival test “You Must Be Taller than the Clown to Ride the White House Tilt-A-Whirl”?

During this endless grim, foggy, electoral season with its constant drizzle of wannabes, I intend to make little prose pictures of each candidatural dwarf until we are down to two.

I tremble for my country when I reflect that the two may be “Clinton” and “Bush.” Members of the electorate in their right minds will go into the ballot booth, see the names, think to themselves, “I did this already.” And leave with the ballot unmarked. Voter turn-out will be 6 percent. The shuttle from the local extended care facility will send a few memory-impaired Republicans to the polls. A DNC bus will collect some derelicts from skid row. And we will have the first President of the United States elected by a franchise limited to sufferers of Alzheimer’s disease and drunken bums.

Let us therefore begin at the bottom of the campaign barrel with the lees, the dross, and the dregs, by which I mean Donald Trump.

Or is Trump just using the garbage of his personality to chum for publicity again? If he isn’t really a candidate, I see no reason to take him at his word, any more than I’d take him at his word about anything else.

Besides, I, personally, support his candidacy. “Democracy,” said H. L. Mencken, “is the theory that the common people know what they want, and deserve to get it good and hard.”

The American government is of the people, by the people, for the people. And, these days, America is peopled by 320 million Donald Trumps. Donald Trump is representative of all that we hold dear: money. Or, rather, he is representative of greed for money. We common people may not be able to match Trump’s piggy bank, but we can match his piggishness.

June 17, 2015

When you tax something, you get less of it

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

At International Liberty, Dan Mitchell points out an example of leftists who genuinely want higher taxes on “the rich” even when the higher rate will return less money to the government:

Every so often, I’ll assert that some statists are so consumed by envy and spite that they favor high tax rates on the “rich” even if the net effect (because of diminished economic output) is less revenue for government.

The Laffer Curve

In other words, they deliberately and openly want to be on the right side (which is definitely the wrong side) of the Laffer Curve.

Critics sometimes accuse me of misrepresenting the left’s ideology, to which I respond by pointing to a poll of left-wing voters who strongly favored soak-the-rich tax hikes even if there was no extra tax collected.

But now I have an even better example.

Writing for Vox, Matthew Yglesias openly argues that we should be on the downward-sloping portion of the Laffer Curve. Just in case you think I’m exaggerating, “the case for confiscatory taxation” is part of the title for his article.

Here’s some of what he wrote.

    Maybe at least some taxes should be really high. Maybe even really really high. So high as to useless for revenue-raising purposes — but powerful for achieving other ends. We already accept this principle for tobacco taxes. If all we wanted to do was raise revenue, we might want to slightly cut cigarette taxes. …But we don’t do that because we care about public health. We tax tobacco not to make money but to discourage smoking.

The tobacco tax analogy is very appropriate.

June 16, 2015

Light rail is usually not the solution you need for better public transit

Filed under: Economics, Railways, USA — Tags: , , — Nicholas @ 03:00

At Coyote Blog, a look at the new Phoenix light rail system’s miraculous ability to stall the growth in public transit usage:

As I have written before, Phoenix has seen its total transit ridership flat to down since it built its light rail line. This after years of 6-10% a year increases in ridership. Most cities, even the oft-worshipped Portland, has seen the same thing. Here is the chart for Phoenix (if you look closely, you can see how they fudged the bar scaling to make light rail ridership increases look better).

Phoenix light rail ridership

The reason is that per passenger, or per mile, or per route, or whatever way you want to look at it, rail systems are 1-2 orders of magnitude more expensive than buses. Since most cities are reluctant to increase their spending on transit 10-100x when they build trains (and to be fair, proponents of rail projects frequently make this worse by fibbing about future costs and revenue expectations), what happens is that bus routes are cut to fund rail lines. But since buses are so much cheaper, 10 units of bus capacity, or more, must be cut for each one unit of rail capacity.

[…]

By the way, beyond the obvious harm to taxpayers, the other people hurt by this are the poor who are disproportionately bus users. Rail systems almost always go from middle/upper class suburbs to business districts and seldom mirror the transit patterns of the poor. Middle class folks who wouldn’t be caught dead on a bus love the trains, but these same folks already have transportation alternatives. The bus lines that get cut to fund the trains almost always serve much lower income folks with fewer alternatives.

This comment from slocum may show the hidden intent in many cities’ drive to replace bus routes with light rail services:

BTW, am I the only one who suspects that there might be a little method to the madness of building light rail and cutting back on bus service? Isn’t it a pretty effective way to drive gentrification by making cities more attractive to the well-off and less so to the poor?

Come for the shiny new light rail system. Stay for the snobbery and active shunning of the poor!

June 15, 2015

“The destruction of the family is the single most destructive force in the past 40 years”

Filed under: Health, Politics, USA — Tags: , , , , , — Nicholas @ 04:00

Gavin McInnes talks to Dr. Amier Carmel, a New York psychoanalyst, about trauma and “cry-bullies”:

He describes the cry-bullies as people with “an intense need to control” and says that “the resentment associated with this need to correct is often an induced feeling used to fix another problem.” This makes perfect sense. Whenever I argue with liberals and they preach to me about immigration, education, or women’s rights, their lack of knowledge on the subject makes it clear they’ve never looked it up. “It’s never about what it’s about,” as Derb would say. Ask them how many illegals are in the country and they’ll rarely get within 10 million of the number. Ask them how much we spend per student per year and they’ll say, “Not enough.” Ask them how much young women without kids make compared with men and they’ll say, “Women need a choice.” They’re not in it for the truth. They’re in it for the platitudes of the crusade and the power it evokes. We all know that by know. The question is why.

Carmel has a fascinating answer. “The destruction of the family,” he opines, “is the single most destructive force in the past 40 years.” Amier then discusses the back-and-forth kids do, going from mom to dad every time they have a grievance. “This dance,” he says, “is how we attain justice. It’s how the parameters of our sense of internal integrity are defined.” Amier seems particularly concerned with the lack of fathers. “The father sets down the law. When he is not there, a sense of anxiety takes root and that leads to outwardly directed hostility. Soon you are looking to the outside world to show you what the limits are. You’re ‘acting out’ and hoping society will control you. The desire for paternal law becomes pathologized.” Amier calls PC violations “narcissistic injury” and adds that this fear-driven petulance becomes especially dangerous when the ideology becomes someone’s entire identity. “When that happens,” he says, “it’s as though rationality and socialized relationships dissolve. The ideologically identified person can often become wildly reckless because they seek the obscuring of accountability with increased pathos.”

We can see this in the liberal demigod Che Guevera. His insatiable lust for power was cloaked as a need for justice, but it’s arguably just a case of a mentally ill child trying to impose order on a world he felt was spinning out of control. Che grew up in a household where his emotionally absent father would openly flaunt infidelity. Ernesto Guevara Lynch was a loser who blew his wife’s fortune on himself and young girls. I’ve noticed a pattern with liberals and fathers who were negligent and financially irresponsible. So much of their belief system seems to come from revenge. This is why they attack white men for looking at someone funny but turn a blind eye to a child prostitution ring in Rotherham. This is also why feminists won’t shut up about the “white male patriarchy” (“patriarch” meaning “father”) but have nothing to say about the shocking difference between black-on-white rape and white-on-black rape. Che is no different. He took his pain and turned it into a crusade against the world. This is why liberals put him on a T-shirt. They don’t like him because he freed Cuba or forced socialism down its throat. They like him because he personifies the cry-bully.

The “Kitchen Debates” of 1959

Filed under: Economics, History, USA — Tags: , , , — Nicholas @ 03:00

B.K. Marcus explains how ice cream was the secret weapon that won the Cold War:

Richard Nixon stood by a lemon-yellow refrigerator in Moscow and bragged to the Soviet leader: “The American system,” he told Nikita Khrushchev over frosted cupcakes and chocolate layer cake, “is designed to take advantage of new inventions.”

It was the opening day of the American National Exhibition at Sokol’niki Park, and Nixon was representing not just the US government but also the latest products from General Mills, Whirlpool, and General Electric. Assisting him in what would come to be known as the “Kitchen Debates” were attractive American spokesmodels who demonstrated for the Russian crowd the best that capitalism in 1959 had to offer.

[…]

“Don’t you have a machine,” he asked Nixon, “that puts food in the mouth and presses it down? Many things you’ve shown us are interesting but they are not needed in life. They have no useful purpose. They are merely gadgets.”

Khrushchev was displaying the behavior Ludwig von Mises described in The Anti-Capitalistic Mentality. “They castigate the luxury, the stupidity and the moral corruption of the exploiting classes,” Mises wrote of the socialists. “In their eyes everything that is bad and ridiculous is bourgeois, and everything that is good and sublime is proletarian.”

On display that summer in Moscow was American consumer tech at its most bourgeois. The problem with “castigating the luxury,” as Mises pointed out, is that all “innovation is first a luxury of only a few people, until by degrees it comes into the reach of the many.”

It is appropriate that the Kitchen Debate over luxury versus necessity took place among high-end American refrigerators. Refrigeration, as a luxury, is ancient. “There were ice harvests in China before the first millennium BC,” writes Wilson. “Snow was sold in Athens beginning in the fifth century BC. Aristocrats of the seventeenth century spooned desserts from ice bowls, drank wine chilled with snow, and even ate iced creams and water ices. Yet it was only in the nineteenth century in the United States that ice became an industrial commodity.” Only with modern capitalism, in other words, does the luxury reach so rapidly beyond a tiny elite.

“Capitalism,” Mises wrote in Economic Freedom and Interventionism, “is essentially mass production for the satisfaction of the wants of the masses.”

June 14, 2015

More on that Reason grand jury subpoena

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

At the Foundation for Economic Education, Ryan Radia discusses the free-speech-quashing subpoena issued by a federal prosecutor in New York state:

In late May, Judge Katherine Forrest, who sits on the US District Court for the Southern District of New York, sentenced Ulbricht to life in prison. This sentence was met with mixed reactions, with many commentators criticizing Judge Forrest for handing down what they perceived as an exceedingly harsh sentence.

A few Reason users, some of whom may have followed Reason’s extensive coverage of the fascinating trial, apparently found Ulbricht’s sentence especially infuriating.

One commenter argued that “judges like these … should be taken out back and shot.” Another user, purporting to correct the preceding comment, wrote that “it’s judges like these that will be taken out back and shot.” A follow-up comment suggested the use of a “wood chipper,” so as not to “waste ammunition.” And a user expressed hope that “there is a special place in hell reserved for that horrible woman.”

Within hours, the office of Preet Bharara, the US Attorney for the Southern District of New York, sent Reason a subpoena for these commenters’ identifying information “in connection with an official criminal investigation of a suspected felony being conducted by a federal grand jury.”

This doesn’t mean a grand jury actually asked about the commenters; instead, in federal criminal investigations, it’s typically up to the US Attorney to decide when to issue a subpoena “on behalf” of a grand jury.

[…]

Even if this subpoena is valid under current law — more on that angle in a bit — the government made a serious mistake in seeking to force Reason to hand over information that could uncover the six commenters’ identities.

Unless the Department of Justice is investigating a credible threat to Judge Forrest with some plausible connection to the Reason comments at issue, this subpoena will serve only to chill hyperbolic — but nonetheless protected — political speech by anonymous Internet commenters.

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