Quotulatiousness

June 10, 2013

When recycling makes sense – and when it doesn’t

Filed under: Economics, Environment, Government — Tags: , , , — Nicholas @ 11:14

Michael Munger examines two of the most common myths about recycling:

Almost everything that’s said about recycling is wrong. At the very least, none of the conventional wisdom is completely true. Let me start with two of the most common claims, each quite false:

  1. Everything that can be recycled should be recycled. So that should be the goal of regulation: zero waste.
  2. If recycling made economic sense, the market system would take care of it. So no regulation is necessary, and in fact state action is harmful.

If either of those two claims were true, then the debate would be over. The truth is more complicated than almost anyone admits.

There are two general kinds of arguments in favor of recycling. The first is that “this stuff is too valuable to throw away!” In almost all cases, this argument is false, and when it is correct recycling will be voluntary; very little state action is necessary. The second is that recycling is cheaper than landfilling the waste. This argument may well be correct, but it is difficult to judge because officials need keep landfill prices artificially low to discourage illegal dumping and burning. Empirically, recycling is almost always substantially more expensive than disposing in the landfill.

Since we can’t use the price system, authorities resort to moralistic claims, trying to persuade people that recycling is just something that good citizens do. But if recycling is a moral imperative, and the goal is zero waste, not optimal waste, the result can be a net waste of the very resources that recycling was implemented to conserve. In what follows, I will illustrate the problems with each of the two central fallacies of mandatory and pure-market recycling, and then will turn to the problem of moral imperatives.

May 31, 2013

The congenital defect of politics

Filed under: Books, Bureaucracy, Government, Politics — Tags: , , , — Nicholas @ 08:56

Jonah Goldberg talks about a new book from Kevin Williamson:

Kevin Williamson’s new book is quite possibly the best indictment of the State since Our Enemy, the State appeared some eight decades ago. It is a lovely, brilliant, humane, and remarkably entertaining work.

Though he sometimes sounds like a reasonable anarchist, Williamson is not in fact opposed to all government. But he is everywhere opposed to anything that smacks of the State. There’s an old line about how to carve an elephant: Take a block of marble and then remove everything that isn’t an elephant. Williamson looks at everything we call the State or the government and wants to remove everything that shouldn’t be there, which is quite a lot. In what may be my favorite part of the book, he demolishes, with Godzilla-versus-Bambi ease, the notion that only government can provide public goods. In fact, most of what government provides are nonpublic goods (transfer payments, subsidies, etc.), and a great deal of what the market provides — from Google and Wikipedia to Starbucks rest­rooms — are indisputably public goods.

[. . .]

Williamson’s core argument is that politics has a congenital defect: Politics cannot get “less wrong” (a term coined by artificial-intelligence guru Eliezer Yudkowsky). Productive systems — the scientific method, the market, evolution — all have the built-in ability to learn from failures. Nothing (in this life at least) ever becomes immortally perfect, but some things become less wrong through trial and error. The market, writes Williamson, “is a form of social evolution that is metaphorically parallel to bio­logical evolution. Consider the case of New Coke, or Betamax, or McDonald’s Arch Deluxe, or Clairol’s Touch of Yogurt Shampoo. . . . When hordes of people don’t show up to buy the product, then the product dies.” Just like organisms in the wild, corporations that don’t learn from failures eventually fade away.

Except in politics: “The problem of politics is that it does not know how to get less wrong.” While new iPhones regularly burst forth like gifts from the gods, politics plods along. “Other than Social Security, there are very few 1935 vintage products still in use,” he writes. “Resistance to innovation is a part of the deep structure of politics. In that, it is like any other monopoly. It never goes out of business — despite flooding the market with defective and dangerous products, mistreating its customers, degrading the environment, cooking the books, and engaging in financial shenanigans that would have made Gordon Gekko pale to contemplate.” Hence, it is not U.S. Steel, which was eventually washed away like an imposing sand castle in the surf, but only politics that can claim to be “the eternal corporation.”

The reason for this immortality is simple: The people running the State are never sufficiently willing to contemplate that they are the problem. If a program dedicated to putting the round pegs of humanity into square holes fails, the bureaucrats running it will conclude that the citizens need to be squared off long before it dawns on them that the State should stop treating people like pegs in the first place. Furthermore, in government, failure is an exciting excuse to ask for more funding or more power.

May 16, 2013

You don’t have to be a “Little Englander” to think the UK would be better off outside the EU

Filed under: Britain, Europe — Tags: , , , — Nicholas @ 08:03

In sp!ked, Rob Lyons explains that it’s not just the neanderthal throwback Tories who are questioning whether the UK should leave the European Union:

Over the past week, there has been the most serious discussion about Britain leaving the European Union since it first joined in 1973, and since the British electorate voted in its only referendum on EU membership, under Harold Wilson’s Labour government, in 1975. This discussion a good thing, because it really is time we made a collective dash for the exit from the EU.

[. . .]

The EU doesn’t only elevate technocrats in the economic sphere. More and more political and social policy is also effectively being guided from Brussels. Consider an opinion piece [in the] Guardian this week, by the head of policy at Friends of the Earth UK, Craig Bennett. Bennett argues that the ability of the EU to impose rules and regulations on Britain has improved our health and environment. To be explicit: Bennett thinks it is better that people outside Britain impose these things upon us, even over the heads of our elected representatives. Where a national government might have to balance costs and benefits, and take into consideration the stated desires and priorities of voters, regulations and directives from Brussels can be imposed free from such consequences and accountability. From the point of view of NGOs and lobbyists, this is great news. Why try to change popular opinion when you can simply get the green light from some unelected body of technocrats?

To be anti-EU does not mean being anti-Europe. True, there is a fair degree of parochialism and anti-immigrant sentiment among many of those in Britain who want out. But those of us who believe in having closer ties with Europe and greater freedom of movement across the continent should also be opposed to the EU. Because, thanks to its anti-democratic institutions and its imposition of draconian policies on unwilling citizens, the EU is now doing more harm than good for the cause of creating a sense of European common interest. It might be uniting national elites, allowing them to take refuge from their electorates in the citadels of Brussels, but it is disempowering and even dividing the peoples of Europe — Germans vs Greeks, for example, or enlightened Western Europeans against allegedly backward, racist Hungarians.

Despite the creation of the European Parliament in 1979, there is no meaningful European demos. But the ability to move and trade freely is a good thing — something we could surely retain without the bureaucratic honeypot of the EU’s institutions. It’s time for all Europeans to reimagine how we might live and work together — and Britain marking a sharp exit from the anti-democratic, pseudo-unifying mess that is the EU could be the perfect catalyst for that.

May 15, 2013

Canadians’ hypocrisy on climate change

Filed under: Cancon, Environment, Politics — Tags: , , , — Nicholas @ 00:01

Stephen Gordon fired off a tweetstorm yesterday:

May 1, 2013

A quick primer on crony capitalism

Filed under: Business, Government, Politics, USA — Tags: , , , , , — Nicholas @ 09:58

In The Atlantic, Timothy P. Carney gives us a thumbnail sketch of the rise and rise of crony capitalism in the United States since 2004:

The 2005 and 2007 energy bills required drivers to buy ethanol, created a government loan-guarantee program for private sector green-energy projects, and effectively outlawed the traditional incandescent light bulb. Ethanol and the green-energy finance programs are pretty naked corporate welfare. General Electric and the light-bulb industry lobby supported the light-bulb law, which forces consumers to buy higher-profit-margin high-tech bulbs.

Then, 2008 saw an avalanche of corporate bailouts: Bear Stearns, AIG, Fannie Mae and Freddie Mac. Then the TARP bailed out all of Wall Street, and later General Motors and Chrysler.

Obama came to power in 2009 and signed an $800 billion stimulus bill supported by the Chamber of Commerce and loaded with goodies for the likes of Google and Solyndra. Obama pushed cap-and-trade with the support of the U.S. Climate Action Partnership, a corporate coalition led by GE, which had set up a business to create and trade greenhouse-gas credits.

In June 2009, Obama signed the Family Smoking Prevention and Tobacco Control Act, a regulatory measure that Philip Morris supported and reportedly helped write — smaller competitors called it the “Marlboro Monopoly Act.” That same month, Wal-Mart, the country’s largest private-sector employer, publicly endorsed the employer mandate in health insurance that became part of Obamacare. The drug lobby wrote significant parts of Obamacare, and the hospital lobby liked the bill enough to file an amicus curiae brief with the Court defending the law from its challenge by states and the small business lobby.

Boeing and the Chamber of Commerce launched a full-court lobbying push in 2011 to save and expand the Export-Import Bank, the government agency Obama loves using to subsidize U.S. Exports — including lots of Boeing jets. In a lesser-known case of regulatory profiteering, Obama hired H&R Block’s CEO to a top position at the IRS, where he crafted new regulations on tax preparers — rules which H&R Block supported and small tax preparers sued to overturn.

April 29, 2013

US domestic firearms sales continue to grow

Filed under: Business, USA — Tags: , , , , — Nicholas @ 12:38

In the Wall Street Journal, Tom Gara shows us the booming market for firearms since 2008:

Gun buyers have long demonstrated a tendency to stock up on weapons and ammunition ahead of possible changes to gun laws, and a so-called “Obama surge” in gun sales kicked off in the lead-up to Barack Obama’s first election victory in 2008.

There was a similar pick up in 2012 as a second Obama victory looked likely, and another rush on stores when it became clear the Obama administration would push for tighter gun control laws in the wake of the Sandy Hook school shooting last December.

In fact, the rush beginning in December has been high even by historic standards: the FBI conducted just under 2.8 million background checks on prospective gun buyers in December 2012, the highest number in any single month since records begin in November 1998. That’s more than triple the number it was running in in December 2002.

And the rush has continued through 2013 so far. Here’s the number of monthly background checks in the first three months of each year since 1998. This year looks set to be the busiest ever.

Jan-Mar gun sales 1998-2013

April 17, 2013

New frontier in crony capitalism – public-policy profiteering

Filed under: Business, Economics, Government, Technology — Tags: , , , , — Nicholas @ 08:47

Timothy Carney explains why the big companies that made ordinary incandescent lightbulbs were among the groups pushing to make those lightbulbs effectively illegal. It’s a classic case of using government power to reduce competition and increase profit margins for certain companies:

Absent barriers to entry, light-bulb profit margins had to stay low. GE could make superior bulbs — soft white, etc. — but people are only willing to pay so much of a premium for those. After all, we’re dealing with light here, which is kind of a commodity.

So, where to find barriers to entry? Maybe higher-tech bulbs? LEDs, CFLs, or other bulbs that offer longer life and greater efficiency. GE, Osram, and Sylvania jumped into those high-tech bulbs, got some patents. R&D expenses, higher manufacturing costs, proprietary information — these created barriers to entry and allowed heftier profit margins.

But what if you made a super-efficient long-life bulb — and nobody wanted it? What if you couldn’t convince consumers that these bulbs were good for them? Well, that’s when you thank your lucky stars that you are GE, with the largest lobbying budget of any company in America.

You “heavily back” legislation that will “effectively outlaw … the traditional incandescent light bulb.” Now all consumers are forced to play in the world where you have greater barriers to entry, and thus bigger profit margins.

The negative consequences here aren’t mere Tea Party concerns about “crony capitalism” or, say, freedom of choice. One cost is the erosion of competition. GE in this case has found a way to divorce profit from the delivery of value – and I call it public-policy profiteering.

Sure, these high-tech bulbs have value. But I think consumers, rather than politicians, should be the ones who determine what value they assign to energy efficiency and longevity. So, through government intervention, capitalism starts to resemble the Marxist caricature of capitalism — Big Businesses making profits while denying consumers what they want.

April 5, 2013

Northern Quebec is the home of the world’s best gin

Filed under: Business, Cancon — Tags: , , — Nicholas @ 00:02

Or so Maclean’s says. Thanks to Canada’s odd patchwork of post-Prohibition trade restrictions between provinces, Ungava by Domaine Pinnacle is only available in Alberta, BC, and Quebec itself:

It is a difficult gin to miss. When Ungava won a Best of Show award at the prestigious World Spirits Competition last week, a judge noted its “unusual colour that helps grab your senses.” It’s perhaps the most polite way of drawing attention to Ungava’s yellow tint, about which Pinnacle president Charles Crawford is slightly more blunt. “It’s a bit like morning’s vitamin-enriched urine,” he says. His PR people prefer “sunshine yellow.”

The process by which Ungava gin is made is even more peculiar than its colour. An ice cider producer by trade, Crawford has a history of wonky tinctures — Pinnacle also produces maple-infused whiskey and a cider-brandy concoction. “Ice cider is a good product, but you can only make so much of it,” he says. “We decided to get into spirits, because there aren’t many that are uniquely Canadian.” In fact, Crawford wanted the gin to be truly, pre-colonially Canadian. He whittled down a list of 40 indigenous herbs, berries and flowers (“Nothing planted by Europeans”) to six ingredients, all found on the Ungava Peninsula in Nunavik: cloudberries; crowberries; Labrador tea; a Labrador tea cousin known as Ukiurtatuq, or “Arctic blend”; wild rosehips, which lend the gin its yellow colour; and of course juniper, without which Ungava wouldn’t be proper gin.

Every year, Crawford hires “these two guys from Kuujjuaq” (he’s unsure of their names) to pick the botanicals during Ungava’s four-week harvesting season, which usually begins in late August. The pair pack “a couple hundred kilos” of their pickings into clear, pillowy bags and send them 1,500 km straight south to Ungava’s production facility in Cowansville, about an hour’s drive east of Montreal. A neutral spirit made with locally grown corn is infused with the botanicals.

April 4, 2013

Harper Conservatives actually love big government … but on the cheap

Filed under: Cancon, Economics, Government — Tags: , , , , , — Nicholas @ 12:49

Stephen Gordon points out that the “small government” rhetoric from Stephen Harper’s Conservatives is so much hot air:

If asked, the Conservatives will tell you that they favour a smaller government that intervenes sparingly in the functioning of the market, and it’s been pretty well-established that a medium- and long-term goal of the Conservative government has been to reduce the share of Canadian GDP that is taxed and spent by the federal government. But lower taxes and lower levels of spending are not the same thing as a smaller government.

Here are the highlights (sic) of the “Strengthening the Competitiveness of the Manufacturing Sector” section of Chapter 3.2 of the budget plan:

[. . .]

  • $920 million to renew the Federal Economic Development Agency for Southern Ontario (FedDev Ontario) for five years, starting on April 1, 2014. Seriously? A slush fund economic development agency for Southern Ontario?
  • $200 million for a new Advanced Manufacturing Fund in Ontario for five years, starting on April 1, 2014, funded from the renewed FedDev Ontario. More pork to be distributed to firms that enjoy the favour of the government.
  • Building on the success of the National Shipbuilding Procurement Strategy, the Government will better ensure that purchases of military equipment create economic opportunities for Canadians by developing key domestic industrial capabilities to help guide procurement, by promoting export opportunities, and by reforming the current procurement process to improve outcomes. The Conservatives can’t even be bothered to sustain the fiction that government procurement should be aimed at obtaining the best value for the taxpayer. Public money is to be spent where politicians want to see public money being spent.

[. . .]

You don’t need a big government to interfere with markets, or to weaken property rights and the rule of law. The decision to forbid shareholders of Potash Corp from selling their holdings to BHP Billiton didn’t cost the federal government a dime. Nor did instructing banks to not offer lower mortgage rates. And then there’s the example of the government’s preference for the clumsy and heavy hand of regulation over more efficient, market-based approaches to reducing greenhouse gas emissions.

I don’t think it’s quite correct to say that the Conservatives want a smaller government. They seem happy to run a government that is as big and dumb as its predecessors — so long as it’s cheap.

March 29, 2013

If cable company ads were honest, we’d see something very similar to this

Filed under: Business, Cancon, Media — Tags: , , , , — Nicholas @ 10:10

H/T to Joey “Accordion Guy” deVilla for the link.

If North American cable-and-internet providers were honest, they’d produce an ad that went like this. Note that there’s some swearing involved, as is often the case with cable-and-internet providers.

March 26, 2013

Irish municipal workers fear for their jobs after fixing a pothole … without getting Health & Safety approval first

Filed under: Bureaucracy, Europe, Government — Tags: , , — Nicholas @ 15:05

There are some stories which are just too silly for words:

THREE county council workers have been suspended from duty for attempting to fill in a pothole outside Carrigaline.

There has been outrage at the suspensions, which were imposed by the local authority after a health and safety inspector came across the workers carrying out unscheduled repairs to a road.

The outdoor crew were suspended on full pay pending an inquiry, and are now fearing for their jobs.
Council workers must pre-plan road works, fill in reports detailing the repairs to be carried out, and use the appropriate signage to alert the public.

It’s understood workers were on their way back to a council depot in Carrigaline when they spotted a large pothole on the road surface.

They decided to stop their vehicle to repair the pothole, even though it was not on their official list of jobs. They had earlier been carrying out scheduled repairs on the Carrigaline to Crosshaven road.

A health and safety inspector came across the workers carrying out the unofficial repairs and reported them to the local authority for a breach of health and safety guidelines.

Take diet change recommendations with a pinch of salt

Filed under: Food, Government, Health, Media, Science — Tags: , , — Nicholas @ 08:59

Yes, yes, I know salt is one of the most dangerous substances known to man. Well, this week, anyway. Next week they may decide to recommend doubling your daily intake instead of reducing it. It’s an example of the nanny state’s long history of providing inconsistent — and sometimes even dangerous — dietary advice:

The government told people to switch from saturated animal fats to unsaturated vegetable fats. But that advice may have killed a lot of people. As David Oliver notes, a recent study “in the British Medical Journal” shows that ”those who heeded the advice” from public-health officials “to switch from saturated fats to polyunsaturated vegetable oils dramatically reduced their odds of living to see 2013,” incurring up to a ”60% increase in risk of death by switching from animal fats to vegetable oils.” This possibly deadly medical advice has a long history:

    Fifty years ago the medical community did an about-face … and instead went all in on polyunsaturated fats. It reasoned that since (a) cholesterol is associated with cardiovascular disease and (b) polyunsaturated fats reduce serum cholesterol levels, it inescapably followed that (c) changing people’s diet from saturated fats to polyunsaturated fats would save a lot of lives. In 1984 Uncle Sam got involved – Time magazine reported on it in “Hold the Eggs and Butter” – and he made a big push for citizens to swap out animal fat in their diet for the vegetable variety and a great experiment on the American people was begun.

As Oliver, an expert on mass torts, points out, it is hard to ”think of any mass tort, or combination of mass torts, that has produced as much harm as the advice to change to a plant oil-based diet” may have done.

Some federal food-safety regulations have also harmed public health, such as the “poke and sniff” inspection method “that likely resulted in USDA inspectors transmitting filth from diseased meat to fresh meat on a daily basis.” The Obama administration has foolishly discouraged potato consumption, even though potatoes are highly nutritious, even as it has subsidized certain sugary and fatty foods, and promoted bad advice about salt.

March 23, 2013

Human Achievement Hour 2013

Filed under: Economics, Environment, Liberty, Politics — Tags: , , , , — Nicholas @ 00:01

Oh, right. It’s once again time for the Gaia-worshippers to do an hour’s penance for the crime of being alive in an industrialized society. The Competitive Enterprise Institute proposes a different way of using that hour:

On Saturday, March 23 at 8:30pm (local time), some people, businesses and governments around the world will choose to sit in the dark for one hour as a symbolic gesture to take action against climate change. The organizers of Earth Hour say that they [no] longer expect energy use to actually drop during the hour, but instead see it as a way for people to show their commitment to reducing energy use and taking action beyond the hour.

It’s absolutely every person’s right to decide if they want to conserve energy for whatever reason; they are free to sit in the dark as long as they want. However, it should not be their right to impose their beliefs or opinions on others. And that is what is at the heart of the environmentalist movement. While many participants in Earth Hour sincerely want a cleaner environment — a desire most of us share — the environmentalist movement whether implicitly or explicitly seeks to clamp down on human progress by reducing energy consumption whether through regulation and taxation. They want to make fossil fuels, which they see as dirty, more expensive to encourage the use of renewable “greener” energies.

Despite any good intentions, the ultimate result of environmentalist policies is not a healthier, cleaner environment. Instead we will see a population that is sicker and poorer. The only way we achieve technology that is “greener” is by building on older “dirtier” technology. As we make it harder and more expensive for those in the business of creating new technologies, all we do is slow progress and make it that much longer to reach more environmentally friendly solutions.

March 19, 2013

New British press control rules to apply to the internet … the whole internet

Filed under: Britain, Law, Liberty, Media — Tags: , , , — Nicholas @ 12:37

In Forbes Tim Worstall explains why the British government’s new Ministry of Truth press censorship body will have effective reach across the entire internet:

This isn’t what they think they’ve done, this is true. And it’s also not what they intended to do (or at least I hope they didn’t mean to do this) but it is still what they’ve done. They’ve passed a law which effectively censors the entire world’s media. And they’ve done this simply because they are ignorant of the very laws they’re trying to change. Which is, I think you’ll agree, a little disturbing, that politicians would casually negate press freedom just because they don’t know what they’re doing.

[. . .]

It’s a standard Common Law assumption that publication does not take place where the printing presses (or servers etc) are. Publication takes place where something is made available to be read or seen. We’ve even had two recent cases that show this. Rachel Ehrenfeld published a book in the US and yet was still sued for libel in London. For a few copies of that book had made it over to England and thus it was deemed that publication had taken place where English libel law prevailed. Just in case you think that this is some English peculiarity there was a very similar case with Dow Jones in Australia. Something was published in New York. But it was read in Australia (remarkably, by the man the piece was about, he downloaded it) and this was sufficient for the Australian courts to agree that therefore the potential libel had occurred in Oz and should be tried under Oz law.

This is even clearer with reference to child pornography laws. “Production” of child pornography includes the act of downloading such. For before it was downloaded there was one copy, on the server. Once downloaded, there are two, one on the server, the other in the browser. Thus the downloading is in itself the production of that pornography. This very point is drawn from the standard Common Law principles about publication.

Therefore, it doesn’t matter where your servers are. For that’s not what defines publication. It also doesn’t matter who the material is aimed at: nor even what language it is in. Publication happens if someone in the UK downloads whatever it is. That, in itself, is the act of publication.

March 18, 2013

Britain’s left: they have to destroy press freedom to save it

Filed under: Britain, Media, Politics — Tags: , , , , — Nicholas @ 09:46

In the Guardian, Nick Cohen explains why the rush to regulate the press is such a bad move for the left:

We are in the middle of a liberal berserker, one of those demented moments when “progressives” run riot and smash the liberties they are meant to defend. Inspired by Lord Justice Leveson, they are prepared in Parliament tomorrow to sacrifice freedom of speech, freedom of the press and fair trials. They are prepared to allow every oppressive dictatorship on the planet to say: “We’re only following the British example” when outsiders and their own wretched citizens protest.

Try warning them that one day they and this country will regret their hooliganism and they reply in the sing-song voice of a child in a playground: “Well, that’s what Murdoch and Dacre want you to say.” It’s no good pointing out that Murdoch and Dacre are tired old men from a dying newspaper industry and they will not be keeping us company for much longer. Nor can you quote Orwell’s words to the effect that just because a rightwing newspaper says something does not mean it is wrong. Nothing works.

The Labour and Liberal Democrat parties are custodians of the best of Britain’s radical traditions: the traditions not only of Orwell, but of John Milton, John Stuart Mill and the men and women who struggled against the Stamp Acts and the blasphemy and seditious libel laws. Their successors are not worthy to follow in their footsteps. For the sake of a brief partisan victory, for the chance to shout: “Yah boo sucks” at the hated tabloids, they are inviting political regulation of the press at a time when the web revolution allows not only newspapers but also large blogs and the websites of campaign groups to be “significant news publishers”, to use the ominously vague phrase Labour and the Liberal Democrats are offering to the Commons tomorrow.

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