Quotulatiousness

September 16, 2011

Ontario’s clean energy Potemkin village

Filed under: Cancon, Economics, Politics, Technology — Tags: , , , , , , — Nicholas @ 10:50

John Ivison reports on a recent photo op by Premier Dalton McGuinty:

The solar energy company touted this week by Ontario Premier Dalton McGuinty as a flagship of the province’s clean energy economy has halted production because of slow demand.

Mr. McGuinty was flanked by Eclipsall Energy Corp.’s workforce when he visited its Scarborough solar panel plant Tuesday, but there was no mention that the production line is temporarily shut down. When my colleague Tamsin McMahon visited the plant she found the reception desk was empty, the cafeteria was closed and only a handful of employees milling around inside the sparsely furnished building.

Leo Mednik, Eclipsall’s chief financial officer, said the production line halt is because the company has already completed its current order book. “It’s no secret that the market is slow and there have been delays. That’s part of it — part of it is logistics. Our production team went through our purchased inventory a lot quicker than expected,” he said.

Not only is the plant not working to capacity: it’s only working at all because of government subsidies:

The Liberal government’s efforts have created jobs — though the 20,000 number touted by Mr. McGuinty seems highly questionable, far less the 50,000 he says will be created by the end of next year. In addition, they are hardly high wage, high skilled jobs the Premier claims (Eclipsall pays 20% over minimum wage to its workers, who assemble glass and solar cells imported from Asia, thereby qualifying for the Liberal Green Energy Act’s 60% domestic content rule).

The question is: how sustainable are these jobs? Mr. Mednik admitted that if the domestic content rule was removed, Eclipsall and other Ontario manufacturers would not be able to survive. “Frankly, it would be very difficult for any start-up to compete” against cheaper Chinese producers, he said.

He said it is a question of when, rather than if, the 60% threshold is removed. Both the European Union and Japan have taken the FIT program to the World Trade Organization and want the local content requirements removed. They claim this Buy Ontario provision is a prohibited subsidy. The FIT program might also soon become subject to a NAFTA dispute case, after American renewable company Mesa Power Group said it would file a complaint.

September 8, 2011

Play it again, Gibson

Filed under: Bureaucracy, India, Law, USA, Woodworking — Tags: , , , , — Nicholas @ 08:59

Allahpundit posted the video clip above, saying:

If I’m understanding the applicable law correctly, Gibson is as much a victim of Indian protectionism as they are federal meddling. Watch the quickie John Roberts segment for the gist of it. The wood they use to make guitar keyboards is sufficiently rare/endangered that it can’t be exported legally from India unless it’s already been finished by Indian workers, and under U.S. law, if the export is illegal under Indian law, then it’s illegal here too. The governing statute, the Lacey Act, was passed in 1900, but only in 2008 was it expanded to include plants as well as animals, which is why Gibson’s now being hassled about the wood. All of which is jim dandy — except for the question of why Gibson seems to be getting so much federal attention vis-a-vis other firms. Roberts touches on that.

H/T to Jon, my former virtual landlord, who commented “I like the way he pulls the finished guitar fret out of his ass.”

Update: Speaking of Jon, he’s all over this issue with another link and extra commentary:

CHRIS DANIEL: Mr. Juszkiewicz, did an agent of the US government suggest to you that your problems would go away if you used Madagascar labor instead of American labor?

HENRY JUSZKIEWICZ: They actually wrote that in a pleading.

[. . .]

He’s even warned clients to be wary of traveling abroad with old guitars, because the law says owners can be asked to account for every wooden part of their guitars when re-entering the U.S. The law also covers the trade in vintage instruments.

As Jon points out, this is more than just an issue for the musical instrument makers and musicians:

It’s only a matter of time until this is applied to tools and furniture.

I wonder where [hand tool maker] Lie Nielsen’s politics lie — but he should be safe, using domestic cherry for his totes and knobs.

Lee Valley might have a problem exporting to the US, what with bubinga and rosewood components and being based in Ottawa, which is now a hotbed of hard-right conservative political thought. (A co-worker is wondering why I’m giggling to myself here).

March 2, 2011

Why “Buy American” or “Buy Canadian” campaigns are bad economics

Filed under: Economics, History, Liberty, USA — Tags: , , , , , — Nicholas @ 12:26

Daniel Ikenson takes ABC to task for their misleading propaganda against international trade:

Back in the “golden age” of 1960, when imports were oddities to marvel over in a disdainful way, the per-capita U.S. income was $2,914. In 2009, with imports ubiquitous, per-capita income was $46,411. (Economic Report of the President, 2010, Tables B-1 and B-34). In real, inflation-adjusted terms, even with a U.S. population increase from 181 million to 307 million, per-capita incomes in 2009 were almost triple what they were in 1960 ($42,277 vs. $15,669 in 2005 dollars — ERP, 2010, Tables B-2 and B-34). Oh, if only we could replicate the relative poverty, the limited consumer choices, the inefficient production processes, the massive trade barriers that compelled Americans to buy American, and the uneconomic work rules and wages commanded by once-powerful private sector labor unions. In 1960, before real economic liberalization spawned cultural and social liberalization, Diane Sawyer would never have dreamed of being a network news anchor, if she even dared to entertain the concept of working outside of the home. How can she pine for such an era?

It’s frustrating that so much research refuting the myth of manufacturing decline and supporting the conclusion that U.S. manufacturing is thriving — and is in fact leading the world in terms of value of output — is simply neglected by a media that is more committed to scaring than informing. Today Americans are less likely to find in their homes products manufactured in the United States because U.S. manufacturers have moved on to producing higher value products. American manufacturing isn’t focused on products that consumers find in retail stores, like furniture, hand tools, sporting goods, flatware, draperies, carpeting and clothes. American factories produce more value than any other country’s factories by focusing on producing the highest value products: pharmaceuticals, chemicals, airplanes, sophisticated componentry, technical textiles, and other items often sold directly to other businesses.

I and others have been making these points for several years, as U.S. manufacturing continues to thrive in every metric . . . except employment. Manufacturing employment peaked in 1979 and has been on a downward trajectory ever since. But that is the point that eludes ABC and everyone else who thinks U.S. manufacturing’s best days are in the past. Making more with less is the goal! That’s how an economy grows! The political imperative of “putting people back to work” regardless of the economic value of that work — remember the so-called stimulus? — spits in the face of economics. The fact that Americans are unemployed speaks to a mismatch of skills demanded and skills available, as well as to a business and regulatory environment that dissuades investment and hiring.

February 23, 2011

Now you can’t have “Cornish Pasties” unless they’re from Cornwall

Filed under: Britain, Bureaucracy, Europe, Food — Tags: , , — Nicholas @ 09:16

Apparently the poor bakers of Cornwall have been driven to the edge by unfair competition. They’ve been fighting the tide of so called “Cornish Pasties” that have never been within hundreds of miles of Cornwall. Now, thanks to the intrepid bureaucrats of Brussels, the Cornish Pasty now has the same kind of name protection as Champagne:

Aficionados of the Cornish pasty will in future be assured that their pasty is the real deal, following a European Commission ruling that only pasties prepared in Cornwall in the traditonal way can be labelled “Cornish”.

Cornish maiden bearing platter of genuine Cornish pasties. Photo: Cornish Pasty AssociationThe announcement that the pasty has been granted “protected geographical indication” (PGI) marks a great day for the Cornish Pasty Association, which for nine years has battled to protect its product from pretenders pumping out non-traditional imitations “inferior in both quality and taste”.

I’ve always been a big fan of “Cornish Pasties”, but I now discover that I’ve apparently been cheated all these years: I’ve never actually eaten a “real” Cornish Pasty in my entire life! (And given that I’ve never been to Cornwall, I may never try one . . .)

January 25, 2011

Margaret Wente: Harper has found the “sweet spot” in Canadian politics

Filed under: Cancon, Media, Politics — Tags: , , , , , , — Nicholas @ 12:14

Margaret Wente is sympathetic to her Liberal friends:

I’ve been feeling kind of sorry for my liberal friends. They can’t stand Stephen Harper. They wince when they hear his name. And yet, in spite of his disagreeable personality, his grip on power is stronger than ever. He has lasted an improbable five years. He has run the longest minority government in Canada’s history and held office longer than Lester Pearson. Aaargh!

On the radio Monday, a Liberal academic was explaining just what makes Mr. Harper so despicable. He’s been stealing Liberal policies! Now that’s dirty. Everyone was certain he would move the country to the right. Instead, he moved the party to the left. He racked up stimulus deficits by the billions and expanded the size of government. He pleased the people by handing them deductions for their kids’ hockey gear. He even quashed an unpopular foreign takeover — only the second veto of a foreign bid in 25 years. The Financial Post went nuts. Who does this guy think he is — Maude Barlow?

Put another way, for everyone who’s attacking Mr. Harper for being too conservative, someone else is attacking him for not being conservative enough. In politics, this is known as “finding the sweet spot.” Both the Liberals and the right-wing National Citizens’ Coalition, which he used to head, are accusing him of reckless spending. Even Peter Mansbridge challenged him for failing to live up to his small-c conservative ideals. (I wonder how the conversation would have gone if Mr. Harper had slashed the CBC.)

Wente may well be right, but I wonder how long Harper can keep the small-c conservatives happy while he does a very credible imitation of Paul Martin’s Liberal government. They wanted a change, but this is a change in labels, not in actual policies.

To be fair, Harper has been able to provide a more distinctive foreign policy than Martin would have done: his outspoken support for Israel is more than enough to set him apart from his Liberal predecessor. On domestic issues? The difference is much more in tone than in substance. On some issues, Michael Ignatieff is running to the right of Harper, which unnerves his own party no end.

November 4, 2010

Globe editorial: “Mr. Clement has much to explain”

Filed under: Cancon, Economics, Government, Politics — Tags: , — Nicholas @ 07:56

I keep wondering if there are any actual conservatives left in Stephen Harper’s merry band of economic nationalists:

Tony Clement, the federal Minister of Industry, has much to explain after his laconic rejection of BHP Billiton Ltd.’s application for permission to proceed with its offer to buy Potash Corp. of Saskatchewan Inc.

Canadians and investors around the world — not least Potash Corp.’s own shareholders — are entitled to learn what Mr. Clement thinks is the meaning of “net benefit” to Canada, in the words of the Investment Canada Act. Evidently, in his and his colleagues’ minds, free markets and the free flow of investment are not sufficient.

Canada, as an exporting nation, has far more to lose by kicking off this kind of protectionist move than any imaginable gains. We might as well write off any economic growth from exports if this is the new modus operandi of the federal government.

September 25, 2010

QotD: The price of locavorism

Filed under: Economics, Environment, Food, Liberty, Quotations — Tags: , — Nicholas @ 13:53

The local-food movement’s ideological parochialism would be dangerous if it were somehow enacted into law. But as persuasion, it tends to focus on the positive: the delights of local peaches and fresh cider, not the imagined evils of Chilean blueberries and prepeeled baby carrots. In this regard, it resembles the English Arts and Crafts movement of the late 19th century. William Morris, who is remembered today more for his wallpaper and book designs than for his social theories, didn’t manage to overturn the industrial revolution. But he and his allies left a legacy of beautiful things. Pleasure is persuasive.

Virginia Postrel, “No Free Locavore Lunch”, Wall Street Journal, 2010-09-25

March 3, 2010

QotD: Canada’s national inferiority complex

Filed under: Cancon, Quotations — Tags: , , , , — Nicholas @ 09:37

But when I refer to casting off our national inferiority complex, I don’t mean the permission we suddenly seem to have given ourselves to be overjoyed by our nation’s athletic accomplishments. Rather, I’m talking about the way most of our major national policies of the past half-century have really just been masks for our national angst. Multiculturalism, universal health care, soft power diplomacy, economic and cultural nationalism and others are all, in part, efforts to downplay our own fear that we are an insignificant nation. Through them, we reassure ourselves of our moral superiority, especially toward the Americans.

Maybe Vancouver finally made us willing to stop defining ourselves through our belief in giant government programs and our fear and resentment of the United States.

Now, perhaps, we can also give ourselves permission to stop trying to manufacture a distinctly Canadian culture and just let one evolve naturally.

We are not Americans. We are never going to be Americans. No amount of economic or cultural protectionism is going to keep U.S. influences out. But also, American influences were never going to impoverish us or strip our identity away.

Maybe now, with the Olympics over and our new-found national confidence high, we’ll get past our common belief that universal health care makes us a better country and gives us superior care. For far too long we have planned health care through this sort of political filter rather than a medical one.

Perhaps instead of sneering at the Americans about their melting pot approach to immigration and insisting our multicultural approach is superior, we’ll now come to see the two as different sides of the same coin.

I think we have already come to understand that while we were tremendous peacekeepers under the UN, what the world needs now is peacemakers. There was nothing wrong with our old role. We were very good at it. But now we have moved on. We have re-equipped ourselves and are getting on with the heavy lifting of fighting in hot spots and bringing aid directly to stricken regions.

Those who still cling to the old notion of Canada as only ever a non-fighting nation, that works only through the UN and cares deeply what the rest of the world thinks of us, have been left behind by events.

Lorne Gunter, “In Vancouver and Whistler, shades of Vimy”, National Post, 2010-03-03

February 23, 2010

More market-rigging to favour Government Motors

Filed under: Economics, Germany, Law, USA — Tags: , , , — Nicholas @ 07:09

If you’re a fan of German sports cars, this might be a swan song for your preferred makes and models:

In a few years, by 2016 to be exact, P.J. O’Rourke’s “ass-engined Nazi slot car” may be history in the U.S.A. Gone. By that time, Porsche needs to have a Corporate Average Fuel Economy (CAFE) of 41.4 mpg — if President Obama gets his wish. Mission impossible, says Porsche. Jack Baruth, stock up. Porsches will be extinct.

On May 19, 2009 President Barack Obama proposed a new national fuel economy program. If signed into law in May this year, as currently planned, the law will throw a nasty punch, beginning in the model year 2012.

Porsche-Lobbyist Stefan Schläfli talked to the German Edition of the Financial Times, before taking off for Washington for a last ditch effort to save the endangered species. Says the FTD: “Hardest hit will be German producers of premium brands which sell big-engined large cars. Critics in the German camp don’t think this is a coincidence. The formulas used to calculate the maximum permissible values are tailor-made for U.S. manufacturers. Basis for the calculation will be wheel base and track width — highly unusual criteria.”

A short and compact Porsche is faced with much stricter limits than a Corvette. Not to mention a pick-up. Large manufacturers turn into a CAFE-society, and can offset their thirsty oinkers with smaller cars. Porsche doesn’t have that option. Neither does Aston Martin, Jaguar, Land Rover and other eclectic brands.

Now that the government has a major financial stake in GM and Chrysler, they don’t even need to pretend to be even-handed in their regulatory fixes.

September 18, 2009

US tariff on Chinese tires “a colossal blunder”

Filed under: China, Economics, USA — Tags: , , — Nicholas @ 09:14

I don’t read The Economist regularly these days, having given up my 20-year subscription about five years back. Their steady drift away from free markets towards statist models made the publication less and less interesting (and much more live most other financial publications). This article, however, at least covers the situation in an even-handed way:

You can be fairly sure that when a government slips an announcement out at nine o’clock on a Friday night, it is not proud of what it is doing. That is one of the only things that makes sense about Barack Obama’s decision to break a commitment he, along with other G20 leaders, reaffirmed last April: to avoid protectionist measures at a time of great economic peril. In every other way the president’s decision to slap a 35% tariff on imported Chinese tyres looks like a colossal blunder, confirming his critics’ worst fears about the president’s inability to stand up to his party’s special interests and stick to the centre ground he promised to occupy in office.

This newspaper endorsed Mr Obama at last year’s election in part because he had surrounded himself with enough intelligent centrists. We also said that the eventual success of his presidency would be based on two things: resuscitating the world economy; and bringing the new emerging powers into the Western order. He has now hurt both objectives.

Several sources mentioned that yesterday’s announcement about cancelling the ABM systems that were to be installed in Poland and the Czech Republic was an attempt to cozy up to Russia. This move can only be interpreted as an attempt to look tough against the Chinese — which would just be dumb — or (even more disturbingly) solid proof that Barack Obama doesn’t have a clue on international trade.

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