Quotulatiousness

June 11, 2011

They “buried the ban in the 300-plus pages of the 2007 energy bill, and very few talked about it in public”

Filed under: Economics, Government, Law, Technology — Tags: , , — Nicholas @ 11:28

Virginia Postrel talks about the looming ban-that-isn’t-a-ban on incandescent lightbulbs:

One serious technophile, University of Tennessee law professor Glenn Reynolds, spent much of 2007 flogging compact fluorescents on his popular Instapundit blog, eventually persuading more than 1,900 readers to swap 19,871 incandescent bulbs for CFLs. To this day, the Instapundit group is by far the largest participant at OneBillionBulbs.com, a bulb-switching campaign organized by the consulting firm Symmetric Technologies. But Reynolds himself has changed his mind.

“I’m deeply, deeply disappointed with CFL bulbs,” he wrote last month on his blog. “I replaced pretty much every regular bulb in the house with CFLs, but they’ve been failing at about the same rate as ordinary long-life bulbs, despite the promises of multiyear service. And I can’t tell any difference in my electric bill. Plus, the Insta-Wife hates the light.”

That was our experience with the early CFL bulbs, too: they didn’t come close to achieving the longevity we were supposedly paying all the extra money for. And, as I’ve posted before, they’re not as easy to clean up after breakage as the older bulbs.

So the activists offended by the public’s presumed wastefulness took a more direct approach. They joined forces with the big bulb producers, who had an interest in replacing low-margin commodities with high-margin specialty wares, and, with help from Congress and President George W. Bush, banned the bulbs people prefer.

It was an inside job. Neither ordinary consumers nor even organized interior designers had a say. Lawmakers buried the ban in the 300-plus pages of the 2007 energy bill, and very few talked about it in public. It was crony capitalism with a touch of green.

Crony capitalism is what the general public is coming to think is the only kind of capitalism, because they have seen so much of it during the last few presidencies. Your business can be plagued with petty regulators enforcing nitpicking rules, while Congress showers money and special privileges on big businesses and banks.

But, as she points out, it’s not technically a true ban:

Now, I realize that by complaining about the bulb ban — indeed, by calling it a ban — I am declaring myself an unsophisticated rube, the sort of person who supposedly takes marching orders from Rush Limbaugh. In a New York Times article last month, Penelope Green set people like me straight. The law, she patiently explained, “simply requires that companies make some of their incandescent bulbs work a bit better, meeting a series of rolling deadlines between 2012 and 2014.”

True, the law doesn’t affect all bulbs — just the vast majority. (It exempts certain special types, like the one in your refrigerator.) The domed halogen bulbs meet the new standards yet are technically incandescents; judging from my personal experiments, they produce light similar to that of old- fashioned bulbs. They do, however, cost twice as much as traditional bulbs and, if the packages are to be believed, don’t last as long.

I keep hoping that LED lights will be able to produce the kind of long-life that we used to be able to depend upon from incandescents, as CFLs and halogen bulbs have not come close to living up to the promises. However, LEDs have not yet managed that trick in commercial applications.

So, aside from allowing lobbyists to flex their muscles, what is the ban attempting to achieve? That’s not quite clear-cut:

Though anti-populist in the extreme, the bulb ban in fact evinces none of the polished wonkery you’d expect from sophisticated technocrats. For starters, it’s not clear what the point is. Why should the government try to make consumers use less electricity? There’s no foreign policy reason. Electricity comes mostly from coal, natural gas and nuclear plants, all domestic sources. So presumably the reason has something to do with air pollution or carbon-dioxide emissions.

But banning light bulbs is one of the least efficient ways imaginable to attack those problems. A lamp using power from a clean source is treated the same as a lamp using power from a dirty source. A ban gives electricity producers no incentive to reduce emissions.

July 22, 2009

Tinkering with “the engine of poverty”

Filed under: Economics, Politics — Tags: , , , — Nicholas @ 14:42

Jon sent me this link with the comment “Don’t know if the article is bloggable, but I liked the opening salvo”:

Natural disasters can cause enormous human misery, and require massive relief operations, to provide food and medical aid. To cause serious, long-term, grinding poverty, however, you need government involvement.

I have to agree with Jon, the opening to the post is quite good. After digging into some of the examples (the Ukraine under Stalin, Ethiopia in the 70s-80’s, and the US experiment with the “Great Society”), the first point at which an apolitical or undecided reader would say “Now, hold on there . . .”

Of course, the meaning of “poverty” has changed a lot over the years. The poor of the United States have a higher standard of living than the middle class in much of the rest of the world. They also have a higher standard of living than the filthy rich of a hundred years ago, or the crowned royalty of the centuries before that. This improved standard of living has very little to do with the government.

Poverty is something any civilized society wants to reduce and then eliminate, but it never seems to happen. The reason for that, aside from the vast amounts of time, effort, money, and resources being wasted through inefficiency, incompetence, and bureaucratic delay, is that the problem cannot be solved in most countries by definition. Most of the time when people use the term “poverty” they mean relative poverty. For most of the western world, absolute poverty affects a vanishingly small number of people (it’s not gone, but it’s lower than it’s ever been for any civilization in history). Relative poverty, however, is usually linked to a formula (like a set percentage of the average family income), which means that even as individuals’ and families’ financial situations improve, they will still be proportionally lower than the average (which will have improved over the same relative period of time). Statistically, no improvement will appear.

Popular belief, shaped by the official statistics, is that many people live in dire circumstances. Some do, but most who are technically below the poverty line are doing better than the average family from a few decades back. Proportionally, they’re still below the line, but from the standpoint of access to food, shelter, health care, and transportation, they’re better off.

If you are motivated by a humanitarian desire to help the poor – the ostensible mission of much of the modern liberal state – you must realize that nothing helps them more than the increased standard of living and economic opportunity brought about by the private sector.

However, the public perception is quite different: that it is the modern liberal state that has made these improvements against the active resistance of the private sector.

Here, in a nutshell, is the crucial difference between reality and the perception of most voters:

The value of every wasted government dollar must be judged by what free enterprise could have accomplished with it.

Most westerners think that General Motors, Chrysler, and AIG are the perfect exemplars of the free enterprise system, replacing the earlier capitalist icons of Enron and Worldcom.

When you say “capitalist”, most people hear a very different word than the one you’re using. “Free enterprise”, to far too many people, means vast corporations with dozens of legislators (or even legislatures) in their back pockets, using their tame politicians to obtain tax credits, advantageous labour codes, or “eminent domain-ing” their way through neighborhoods. The “private sector” decodes to “rich, secretive plutocrats”.

What you say and what they hear bear very little resemblance to one another. You’re not speaking the same language.

Then, the touching statement of hope:

If the six long months of this Administration serve any constructive purpose, it should be permanently dissolving the illusion that a small group of political appointees can predict what the economy will do, and control it to produce an improved outcome.

Most people, in times of stress, look for that man on the white horse. Most Americans still think they found one.

QotD: Republican government

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

Republican government is impossible in an age where not only are the bills too long for a reasonably engaged citizen to read, not only are they too long for a legislator to read, but they’re too long to write down before they’re passed into law. We just have to trust our rulers, and they just have to trust whichever aides negotiated whichever boondoggles with whichever lobbyists.

Mark Steyn, “Jacksonian America”, National Review, 2009-07-20

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