Quotulatiousness

February 2, 2012

In Arizona “any time two or more people work together to influence a vote … they instantly become a ‘political committee'”

Filed under: Bureaucracy, Law, Liberty, Politics, USA — Tags: , , , — Nicholas @ 13:08

What’s all this about “free speech” if you are legally encumbered with ridiculous regulations even before you speak?

Dina Galassini does not seem to pose a threat to Arizona’s civic integrity. But the government of the desert community of Fountain Hills believes you cannot be too careful. And state law empowers local governments to be vigilant against the lurking danger that political speech might occur before the speakers notify the government and comply with all the speech rules.

Last October, Galassini became annoyed — like many Ron Paul supporters, she is easily annoyed by government — about the city’s plan to augment its spending with a $29.6 million bond issue, to be voted on by mail by Nov. 8. On Oct. 6, she sent emails to 23 friends and acquaintances, urging them to write letters to newspapers and join her in two demonstrations against the bond measure. On Oct. 12, before she could organize the demonstrations, she received a stern letter from the town clerk: “I would strongly encourage you to cease any campaign-related activities until the requirements of the law have been met.”

State law — this is the state of John McCain, apostle of political purification through the regulation of political speech — says that any time two or more people work together to influence a vote on a ballot measure, they instantly become a “political committee.” This transformation triggers various requirements — registering with the government, filing forms, establishing a bank account for the “committee” even if it has raised no money and does not intend to. This must be done before members of this fictitious “committee” may speak.

Is Sino-Forest a typical Chinese company?

Filed under: China, Economics, Government, Law — Tags: , , , — Nicholas @ 09:52

Colby Cosh posted an initial article on the investigation into Sino-Forest’s business back in June:

Timber company Sino-Forest is locked in a fascinating battle for survival against Carson Block, a stock analyst with a mixed record of publicity attacks on Chinese-based enterprises. With professional analysts reluctant to say what they make of Block’s “strong sell” report on Sino-Forest, I’m in no position to endorse it as a piece of financial advice or investigative journalism. Considered strictly as entertainment, however, the report is remarkable.

Block has documented that Sino-Forest operates with extraordinary opacity for a company whose holdings are surely very widely distributed — particularly, one assumes, within Canada. Sino-Forest claims to be doing hundreds of millions of dollars’ worth of sales through mostly unidentified “authorized intermediaries” in China — traders who are apparently happy to let the company buy title to trees, hold them as they appreciate, take on the bulk of the costs and risks in the meantime, and then snap up revenues when the trees are eventually converted into wood products. Block, having poked around a bit in the literal Chinese backwoods, questions whether much if any of the reported underlying activity is happening.

[. . .]

Sino-Forest is refusing, despite intense pressure, to make a full disclosure of the identities of the “authorized intermediaries” who are making its money. The company claims that to do so would put it at a competitive disadvantage, which makes one wonder why its business model ought to depend so heavily on sheer obscurity. One possible answer is that Sino-Forest’s real, fundamental business is some sort of cryptic regulatory arbitrage; that seems like a game potentially worth playing with paper assets in places that have a strong rule of law, but it is surely a dangerous one in a nominally Communist country, where a nationalization could be arranged in the space of an afternoon. (Or where some regional Party functionary could simply be bribed to “lose” crucial paperwork.)

Today, he posted a follow-up report:

Could a curious investor look at actual maps of timber controlled by Sino-Forest agents, you ask? Well, you see, it’s not exactly kosher for foreigners to carry around maps of remote parts of China. You can borrow them from forestry officials if you really need to. Will the local forestry bureaus confirm Sino-Forest’s claims about plantations operated by its agents? Well, sometimes they’ll give you a certificate of sorts, for all the good it might do. “The confirmations are not title documents, in the Western sense of that term,” the committee report notes. (As I understand it, the Western meaning of “title document” is that it gives one an unquestioned, justiciable claim to ownership of something, whether the Party or the Army or the good Lord in heaven approve or not.)

[. . .]

The impression given is that you need influential “backers” to do business in China. The question for the Western investor, though it’s probably now moot, is whether the real role of these backers is to help exploit Chinese resources for the benefit of the Western shareholders or to help fleece Western shareholders for the benefit of Chinese suppliers and bureaucrats.

As Jon, my former virtual landlord puts it, this is a hobby horse I like to ride now and again.

January 26, 2012

What is really meant by the term “market failure”

Filed under: Economics, Media, Politics — Tags: , , , , , — Nicholas @ 11:10

Posting on the Institute of Economic Affairs blog, Tom Papworth tries to clarify what the term “market failure” actually means, in comparison to how it’s commonly used by politicians and journalists:

Firstly, it seems to blur the distinction between ‘the market’ and ‘the markets’ — a very common error in current discourse. The market is an economic concept that describes the myriad of choices and exchanges that take place between people every day; the markets are the very real institutions created for handling major financial transactions. It is not clear to me that this article acknowledges that distinction. This manifests itself primarily in the title and main theme: indeed, as Jan (and at least one commentator) does tacitly acknowledge, the financial markets are so shaped by government intervention that it would be a surprise if they did correspond to a model market.

And that brings me to the second problem: the suggestion that markets don’t fail when they ‘respond rationally, quickly and often brutally to conditions as they find them’. While that description is true, it has little bearing on the concept of market failure. Market failure typically refers to situations where the effects one would expect to see in a theoretical market economy do not in fact manifest themselves in real life. As the great man himself would be — and perhaps was — the first to point out (though without using these terms) markets fail because of factors such as monopoly and externality — monopolies undermine competition and so markets do not clear; externalities enable costs to be passed onto third parties and prevent all beneficiaries contributing to the production of goods. Information asymmetry is often presented as another source of market failure.

Now, to be fair to Jan, that precision of language is hardly prevalent among the politicians he is criticising. When they speak of market failure, it seems almost as though market success is defined by a number of uneconomic measures such as social justice, or even (that ultimate weasel-word) fairness.

Ireland’s septic protest

Filed under: Bureaucracy, Environment, Europe, Government — Tags: , , , , , — Nicholas @ 10:52

Elizabeth sent me a link to this Independent.ie article which allowed Lise Hand to dig deep into the Irish septic tank issue while managing not to get too potty-mouthed:

These doughty lads of the West weren’t messing about with a bit of chanting and poster-waving in the manner of an, ahem, bog-standard protest outside Leinster House. Not a bit of it, having driven since dawn in buses up from the corners of Galway, the attitude was, when we’re out, we’re out.

And so the Charge of the Septic Tank Brigade to the gates of Leinster was a colourful affair. They had brought a toilet with them and all, as a pertinent prop to illustrate their admanatine opposition to the introduction of a €50 septic-tank registration charge — a charge which affects rural Ireland, as it’s being imposed on almost half a million households who are not part of a public-sewage scheme.

What’s more, if any tanks fail an inspection, householders will be obliged to upgrade or replace them, which could cost thousands of euro.

And so, the several hundred men (and a few women) from the West were in fighting form on Kildare Street yesterday afternoon. And along with the toilet — which proved a handy seat for the protest’s organiser, Padraig ‘An Tailliura’ O’Conghaola from Rossaveal who was minding the megaphone and trying to keep a bit of order on proceedings.

There was an impressive array of giant paintings on black banners, tastefully depicting images such as sunsets and sailboats and a puzzled-looking lassie sitting on a toilet.

And there was quite a smorgasbord of slogans being waved about: from Winston Churchill’s observation, “We contend that for a nation to tax itself into prosperity is like a man standing in a bucket trying to lift himself up by the handle”; to more earthy exhortations, such as: “Septic Tank Charges are A Pain in the Hole”; and the bi-lingual “‘Cac’ Hogan RIP — Ireland’s Saddam Hussein”; to the pithy enjoinder, “Get A Grip — Stand Up to Europe”.

January 9, 2012

Calling it “austerity” doesn’t make it so

Filed under: Economics, Government, Media, USA — Tags: , , , , , — Nicholas @ 10:11

Nick Gillespie provides a reality check on some particularly imaginative use of “austerity” in describing the end of the Bush administration and the start of the Obama administration:

In constant 2010 dollars, the federal government spent about $2.3 trillion in 2001. By 2010, the total was around $3.6 trillion. And though the federal government has not passed (and will not pass) a budget for a third straight year, the two plans currently on the table envision spending either $4.7 trillion or $5.7 trillion in 2021. The lowball figure comes from the budget that passed the GOP-controlled House last spring. The higher number comes from President Obama’s budget proposal.

If austerity is the new black, the news has yet to reach the people who actually wield power in the capital. And if the Washington elite aren’t serious about cutting spending, they sure aren’t hell-bent on cutting red tape and regulations either.

For self-evident reasons, George W. Bush and the Republicans soft-pedaled the fact that, over the course of his presidency, he hired 90,000 net new regulators, signed the Sarbanes-Oxley bill that radically complicated corporate accounting practices, passed a record number of “economically significant” regulations costing the economy $100 million or more and, says economist Veronique de Rugy, spent more money issuing and enforcing federal regulations than any previous chief executive.

Obama is continuing the trend by increasing employment at regulatory agencies by more than 13 percent and issuing 75 major rules in his first two years.

All this happened during what Frank calls “the golden years of libertarianism.” So I have problems understanding what he is talking about when he issues dicta such as “free-market theory has proven itself to be a philosophy of ruination and fraud.”

December 17, 2011

We are “at the mercy of underachieving Congressional know-nothings that have more in common with the slacker students sitting in the back of math class than elected representatives”

Filed under: Government, Law, Liberty, Media, Technology — Tags: , , , , — Nicholas @ 10:52

A great post on the folks who are currently debating — if so many declarations of ignorance can be called “debating” — hacking away at the very basis of the internet we’ve come to love:

Some background: Since its introduction, SOPA and its Senate twin PROTECT-IP have been staunchly condemned by countless engineers, technologists and lawyers intimately familiar with the inner functioning of the internet. Completely beside the fact that these bills as they currently stand would stifle free speech and potentially cripple legitimate businesses by giving corporations extrajudicial censorial powers, they have found an even more insidious threat: The method of DNS filtering proposed to block supposed infringing sites opens up enormous security holes that threaten the stability of the internet itself.

The only problem: Key members of the House Judiciary Committee still don’t understand how the internet works, and worse yet, it’s not clear whether they even want to.

It’s of course perfectly standard for members of Congress to not be exceptionally proficient in technological matters. But for some committee members, the issue did not stop at mere ignorance. Rather, it seemed there was in many cases an outright refusal to understand what is undoubtedly a complex issue dealing with highly-sensitive technologies.

When the security issue was brought up, Rep. Mel Watt of North Carolina seemed particularly comfortable about his own lack of understanding. Grinningly admitting “I’m not a nerd” before the committee, he nevertheless went on to dismiss without facts or justification the very evidence he didn’t understand and then downplay the need for a panel of experts. Rep. Maxine Waters of California followed up by saying that any discussion of security concerns is “wasting time” and that the bill should move forward without question, busted internets be damned.

The traditional lightbulb may be safe for a bit longer

Filed under: Bureaucracy, Law, Liberty, Technology — Tags: , , , — Nicholas @ 10:29

From the Washington Times:

Congressional negotiators struck a deal Thursday that overturns the new rules that were to have banned sales of traditional incandescent light bulbs beginning next year.

That agreement is tucked inside the massive 1,200-page spending bill that funds the government through the rest of this fiscal year, and which both houses of Congress will vote on Friday. Mr. Obama is expected to sign the bill, which heads off a looming government shutdown.

Congressional Republicans dropped almost all of the policy restrictions they tried to attach to the bill, but won inclusion of the light bulb provision, which prevents the Obama administration from carrying through a 2007 law that would have set energy efficiency standards that effectively made the traditional light bulb obsolete.

H/T to Virginia Postrel for the link.

December 7, 2011

Harsanyi: Obama is “the mighty slayer of infinite straw men”

Filed under: Economics, History, Politics, USA — Tags: , , , , , , — Nicholas @ 09:18

While the GOP hopefuls are busy avoiding confrontation with Barack Obama, David Harsanyi is under no such restriction:

In Teddy Roosevelt’s era, President Barack Obama explained to the nation this week, “some people thought massive inequality and exploitation was just the price of progress. … But Roosevelt also knew that the free market has never been a free license to take whatever you want from whoever you can.”

And he’s right. Even today there are people who believe they should have free license to take whatever they want from whomever they can. They’re called Democrats.

Yet the president, uniter of a fractured nation, the mighty slayer of infinite straw men, claims that some Americans “rightly” suppose that the economy is rigged against their best interests in a nation awash in breathtaking greed, massive inequality and exploitation. Or I should say, he’s trying to convince us that it’s the case.

The middle-class struggle to find a decent life is the “defining issue of our time,” the president went on. And nothing says middle-class triumph like more regulation, unionism, cronyism and endless spending. Hey, Dwight Eisenhower (a Republican!) built the interstate highway system, for goodness’ sake. Ergo, we must support a bailout package for public-sector unions — you know, for the middle class.

Update: Monty goes a few steps further to criticize Obama:

It often strikes me how much Barack Obama looks, talks, behaves, and (apparently) believes like a character out of an Ayn Rand novel. Rand always wrote of statist Socialists more as caricatures than characters, but Barack Obama could have stepped whole and breathing right out of the pages of Atlas Shrugged. Which shows you the shallowness and unthinking obeisance to leftist cant the man displays — there is precious little subtlety to Barack Obama. You sometimes find hidden depths even in your ideological enemies, surprising pockets of common ground. But in Barack Obama, there is only a hollow vessel filled up with the thoughts and opinions of leftists he has associated with in his life. He speaks (and apparently thinks) only in platitudes, bromides, and cliches. Barack Obama is, in short, the end product of the grand “progressive” experiment since the early 1900’s. Ecce homo!

November 21, 2011

Michael Geist on the CRTC’s usage-based billing decision

Filed under: Cancon, Economics, Technology — Tags: , , , — Nicholas @ 12:56

It’s not quite what it seems like:

My weekly technology law column [. . .] notes the resulting decision seemed to cause considerable confusion as some headlines trumpeted a “Canadian compromise,” while others insisted that the CRTC had renewed support for UBB. Those headlines were wrong. The decision does not support UBB at the wholesale level (the retail market is another story) and the CRTC did not strike a compromise. Rather, it sided with the independent Internet providers by developing the framework the independents had long claimed was absent — one based on the freedom to compete.

For many years, Canada has maintained policies theoretically designed to foster an independent ISP market. Those policies required the large Internet providers such as Bell and Rogers to make part of their network available to independent competitors. Since the large providers were not supportive of increased competition, the CRTC established mandatory rules on access, pricing, and speed matching.

Yet despite years of tinkering with the rules, the independents only garnered a tiny percentage of the marketplace (approximately six percent). The UBB issue illustrates why the independent providers have struggled since the original proposal would have allowed Bell to charge independent ISPs based on the amount of data used.

While that sounds reasonable, the cost of running a network has little to do with the amount of data consumed. Rather, it is linked to the capacity of the network — the fatter the pipe, the greater the cost, irrespective of how much data is actually consumed.

November 18, 2011

EU panel spends three years to determine that water cannot be sold as a remedy for dehydration

Filed under: Bureaucracy, Europe, Health — Tags: , — Nicholas @ 08:53

Ah, Brussels! What would we do without you and your panels of experts on quiet news days?

Brussels prompted a flood of abuse this week by apparently banning bottled water vendors from promoting their products as a counter to dehydration.

The European Food Standards Agency was asked to consider its “opinion on the scientific substantiation of a health claim related to water and reduced risk of development of dehydration and of concomitant decrease of performance”.

The request for clarification was submitted by two German professors in 2008, in a bid to determine what health claims could be slapped on bottled water. A panel deliberated on the issue for three years, before the adjudication was delivered back in February, in time to hit the UK’s Euro-sceptical media yesterday.

November 16, 2011

Stop the attempt to nationalize the internet (for the US government)

Filed under: Government, Liberty, Technology, USA — Tags: , , , , , , — Nicholas @ 12:17

If you don’t already associate SOPA with evil, Michael Geist explains why you should:

The U.S. Congress is currently embroiled in a heated debated over the Stop Online Piracy Act (SOPA), proposed legislation that supporters argue is needed combat online infringement, but critics fear would create the “great firewall of the United States.” SOPA’s potential impact on the Internet and development of online services is enormous as it cuts across the lifeblood of the Internet and e-commerce in the effort to target websites that are characterized as being “dedicated to the theft of U.S. property.” This represents a new standard that many experts believe could capture hundreds of legitimate websites and services.

For those caught by the definition, the law envisions requiring Internet providers to block access to the sites, search engines to remove links from search results, payment intermediaries such as credit card companies and Paypal to cut off financial support, and Internet advertising companies to cease placing advertisements. While these measures have unsurprisingly raised concern among Internet companies and civil society groups (letters of concern from Internet companies, members of the US Congress, international civil liberties groups, and law professors), [. . .] the jurisdictional implications demand far more attention. The U.S. approach is breathtakingly broad, effectively treating millions of websites and IP addresses as “domestic” for U.S. law purposes.

The long-arm of U.S. law manifests itself in at least five ways in the proposed legislation.

November 15, 2011

Stephen Gordon: One does not simply end supply management

Filed under: Cancon, Economics, Food, Liberty — Tags: , , , — Nicholas @ 09:29

Stephen Gordon in the Globe and Mail‘s Economy Lab on the economically indefensible Canadian anomaly known as “supply management”:

The best way to get a rise out of Canadian economists is to ask us about our dairy supply management system. It’s simply indefensible: a government-enforced cartel whose only purpose is to generate high prices for what most would view as essential goods. This sort of arrangement wouldn’t be — and isn’t — tolerated in another sector of the economy. Nor is it tolerated anywhere else in the world. So the news that the federal government is considering putting supply management on the table in order to join the Trans-Pacific Partnership trade deal is guaranteed to generate a certain amount of excitement among my colleagues.

It’s hard to believe that the interests of 13,000 Canadian dairy farmers could consistently trump the interests of 34 million Canadian dairy consumers, but yet the system is still with us. Why can’t we simply end supply management and let consumers benefit from lower dairy prices?

The problem is that current dairy farmers are — for the most part — not earning monopoly rents from what they produce. In order to sell their output, dairy farmers must first obtain a permit to do so, and dairy quotas are not cheap: more than $25,000 per cow. To a very great extent, the higher prices that they receive simply cover this initial investment.

November 14, 2011

Bullying is bad: banning bullying would be worse

Filed under: Law, Liberty, USA — Tags: , , , , , , — Nicholas @ 09:10

Wendy Kaminer on the District of Columbia (DC) City Council’s proposed anti-bullying rules:

It started on college and university campuses, where repressive speech codes have been teaching generations of students that they have no right to offend someone, anyone, who can claim membership in a growing list of presumptively disadvantaged groups.

Now, this mindlessly censorious movement to force us to be nice to each other is encroaching on public life, off-campus: The District of Columbia (DC) City Council is considering banning the ‘harassment, intimidation, or bullying’ of students in public libraries and parks, as well as schools (including the District’s public university). Bureaucrats in charge of all relevant supervisory agencies are required to promulgate detailed policies that define bullying and harassment ‘no less inclusively’ than the City Council.

It would be difficult to define bullying more inclusively: according to the council bill, ‘harassment, intimidation or bullying’ is ‘any gesture or written, verbal or physical act, including electronic communication, that is reasonably perceived as being motivated either by any actual or perceived characteristic, such as race, colour, religion, ancestry, national origin, gender, sexual orientation, gender identity and expression, or a mental, physical or sensory handicap, or by any other distinguishing characteristic’, which a ‘reasonable person’ would foresee as effectively intimidating or harmful to students or their property, or as effectively ‘insulting or demeaning’ to any student or group of students so as to disrupt ‘the orderly operation of a school, university, recreational facility, or library’.

Don’t bother trying to figure out what this vague and verbose definition of bullying includes. Focus instead what it might exclude — not much. Virtually no speech or behaviour that a student self-conscious about any ‘distinguishing characteristic’ might consider hurtful or that a petty bureaucrat might find offensive is beyond the reach of this ban. Its scope is simply breathtaking; although, sad to say, the ‘inclusiveness’ of this bill doesn’t distinguish it from other state and local bullying laws or campus speech codes. It is, however, shamefully distinguished by its application outside of schools to public libraries and parks. Imposing a subjective sensitivity code on the general public, it displays an astonishing contempt for the most obvious and fundamental freedoms of speech and belief, as well as astonishing ignorance of constitutional rights.

November 12, 2011

Still no charges in the Gibson Guitar case

Filed under: Bureaucracy, India, Law, Media, USA, Woodworking — Tags: , , , , — Nicholas @ 11:00

An update in the Wall Street Journal just recaps the background to the case, and has an interview with Henry Juszkiewicz, the CEO.

On Aug. 24, federal agents descended on three factories and the Nashville corporate headquarters of the Gibson Guitar Corp. Accompanied by armored SWAT teams with automatic weapons, agents from the Fish and Wildlife Service swarmed the factories, threatening bewildered luthiers, or guitar craftsman, and other frightened employees. A smaller horde invaded the office of CEO Henry Juszkiewicz, pawing through it all day while an armed man stood in the door to block his way.

“I was pretty upset,” Mr. Juszkiewicz says now, sitting outside that same office. “But you can only do so much when there’s a gun in your face and it’s the federal government.” When the chaos subsided, the feds (with a warrant issued under a conservation law called the Lacey Act) had stripped Gibson of almost all of its imported Indian rosewood and some other materials crucial to guitar making.

The incident attracted national attention and outrage. Like Boeing — whose plans to locate new production in South Carolina are opposed by the National Labor Relations Board — here was an iconic American brand under seemingly senseless federal fire.

October 19, 2011

Regulators back off (temporarily)

Filed under: Bureaucracy, Economics, Environment, USA — Tags: , — Nicholas @ 09:08

Walter Olson reports on some recent regulatory retreats:

Are there enough data points yet to call it a trend? I think there are: the Environmental Protection Agency is now backing off a whole series of deeply unpopular Obama-era initiatives. This time it’s the idea of tightening the federal standard for coarse airborne particulates — better known as “dust” — from the current 150 micrograms per cubic meter to a figure somewhere between 65 and 85, depending on what assumptions are used. That change could have dealt a tough economic blow to businesses, notably farms and ranches, that kick up quantities of dirt in the ordinary course of operation. Unfortunately, the EPA — unable to resist the urge to lash out against its critics — is being less than candid about its latest turnabout.

The retreats have been coming steadily in recent months, since President Obama’s popularity ratings began to tank. In July, following protests from Sen. Olympia Snowe (R-ME) and other lawmakers, the administration dropped a proposal that would have required lead-dust lab testing as part of even relatively minor renovations to older homes. Last month it scuttled costly new smog regulations. A couple of weeks ago it relaxed its so-called Cross-State Air Pollution Rule, which was menacing the continued operation of power plants. And it remains under heavy pressure to scrap its ultra-expensive “Boiler MACT” rules, another utility nemesis.

EPA administrator Lisa Jackson has made it clear that she isn’t happy about some of these about-faces, and her staff spun the latest dust decision in remarkably graceless fashion, accusing critics of spreading “myths” and claiming the agency never had any intention of going after farm dust in the first place.

« Newer Posts — Older Posts »

Powered by WordPress