Quotulatiousness

November 29, 2024

Dr. Jay Bhattacharya nominated as Director of the US National Institutes of Health

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

From the point of view of the establishment, the barbarians are well and truly inside the gates, as President-elect Donald Trump has nominated Stanford epidemiologist Dr. Jay Bhattacharya as the next director of the National Institutes of Health:

Dr. Jay Bhattacharya, Donald Trump’s nominee as Director of the National Health Institutes.
Photo by Taleed Brown, 2020, via Wikimedia Commons.

Four years ago, Jay Bhattacharya was ostracized by his colleagues at Stanford and censored on social media platforms thanks to a campaign against him by the public-health establishment. The director of the National Institutes of Health, Francis Collins, sent an email to another NIH official, Anthony Fauci, urging a “quick and devastating published takedown” of Bhattacharya and his fellow “fringe epidemiologists”.

Bhattacharya is far from the fringe today. Donald Trump nominated him this week for Collins’s old job, director of the NIH. Assuming the Senate confirms him, it will be a major victory for science and academic freedom — and a serious threat to the universities that suppressed scientific debate and promoted disastrous policies during the pandemic, causing public trust in science to plummet. Academic researchers and administrators have mostly refused to acknowledge their mistakes, much less make amends, but Bhattacharya promised yesterday to “reform American scientific institutions so that they are worthy of trust again”.

As NIH director, he would wield a potent tool to induce reform: money. Stanford and more than a dozen other universities each get more than $500 million annually in grants from the NIH, the world’s largest funder of biomedical research. The NIH grants support not only researchers but also their universities’ bureaucracies, which collect a hefty surcharge to cover supposed overhead costs. The federal largesse has helped finance the administrative bloat at universities, including the expansion of diversity, equity, and inclusion bureaucracies under the Biden administration, which took into account a university’s commitment to DEI principles when deciding whether to award grants from the NIH and other agencies.

Those priorities are about to change. Trump has vowed to rescind immediately Biden’s executive order directing federal agencies to promote DEI. During his first term, Trump threatened to issue an executive order barring universities from receiving federal funds if they suppressed free speech. He didn’t issue that order, but whether or not he does so in his next term, the NIH director will already have the power to consider a university’s commitment to academic freedom in deciding whether or not to award funds.

“For science to thrive and progress, we must be open-minded and allow vigorous and passionate debate,” says Martin Kulldorff, a former professor of medicine at Harvard. “Why should taxpayers subsidize universities that don’t allow that?” Kulldorff, an eminent epidemiologist, lost his job at Harvard after he became an early and outspoken critic of pandemic policies. In 2020, he joined with Bhattacharya and Sunetra Gupta, an epidemiologist at Oxford, to write the Great Barrington Declaration, a critique of lockdowns that was signed by tens of thousands of scientists and physicians.

Bhattacharya, who has a Ph.D. in economics as well as an M.D. from Stanford, hung on to his job as professor of health policy at the latter’s medical school, but his views were taboo on campus. After he and colleagues did a field study at the start of the pandemic showing that the Covid fatality rate was much lower than the doomsday number used to justify lockdowns, they were vilified by academics and journalists, and Stanford subjected them to a two-month inquiry by an outside legal firm. (They were vindicated by the inquiry and also by subsequent research confirming their findings.)

QotD: Why nothing gets done in the Current Year

Filed under: Bureaucracy, Business, Government, Quotations, Technology, USA — Tags: , , , — Nicholas @ 01:00

… we do gain a lovely illustration of why nothing ever really gets done in this modern world. Sure, the politicians have demanded more [advanced logic] chips in a country that doesn’t have any spare chip technicians — TSMC has had to import their own from Taiwan — and so on and so on. But there’s also this:

    Having pumped billions of dollars into building the next generation of computer chip factories in the US, the Biden administration is facing new pressure over the health and safety risks those facilities could pose. Environmental reviews for the new projects need to be more thorough, advocates say. They lack transparency around what kinds of toxic substances factory workers might handle, and plans to keep hazardous waste like forever chemicals from leaching into the environment have been vague.

    A coalition of influential labor unions and environmental groups, including the Sierra Club, have since submitted comments to the Department of Commerce on draft environmental assessments, saying that the assessments fall short. The coalition’s comments flag lists of potential issues at several projects in Arizona and Idaho, including how opaque the safety measures that manufacturers will take to protect both workers and nearby residents are.

This is not a serious complaint. This is actually the national association of environmental studies writers spotting a gravy train passing by and desiring to dip their ladle in. And that’s all it is too. But it’s also that excellent example of why fuck all ever gets built. We’ve an entire — and politically powerful — class that makes their living producing the hundred tonne reports that accompany building anything. And they’re not going to allow anything to be built unless they get paid for writing hundred tonne reports. And, to complete the circle, if every activity requires a hundred tonne report then fuck all will ever get done.

There was, back a time, a law passed about blood minerals. The law said anyone who might use them must write to all suppliers to ask if they do. Then those said anyones must tell consumers whether they do. This cost $4 billion just in the first year. From what I’ve heard — and might take the trouble to prove one day — the bloke who led the campaign for the law requiring the letters now runs a very profitable consultancy advising large corporates on how to write the letters. $4 billion spent by society so that one bloke can gain a minor summer place in the Hamptons. This doesn’t make us richer as a whole, it’s pissing the wealth of the nation up the wall.

Carthage, it’s the only solution. The biggest problem who is who the hell would buy our nice new stock of enslaved environmental bureaucrats? Razing, salt, ploughs, these are easy but who’s mad enough to offer a positive price for the last part of the process?

Tim Worstall, “Why Fuck All Ever Gets Done In This Modern World”, It’s all obvious or trivial except …, 2024-08-28.

November 8, 2024

“The Science™, that thing we’re supposed to believe in and obey – is distinctly and increasingly political”

Filed under: Bureaucracy, Government, Politics, Science, Technology, USA — Tags: , , , , , — Nicholas @ 05:00

President-elect Donald Trump has a vast array of options to tackle in the traditional first hundred days of his administration. Chris Bray says that one of the very first of these should be the depoliticization of the federal science agencies:

Donald Trump has spoken very clearly about his day-one determination to end the mutilation of children in the service of gender ideology, but let’s look for the roots of that poison tree. Via Billboard Chris, here’s a sample descriptive section from a National Institutes of Health grant given to a pediatric gender physician in Los Angeles, and read this carefully to find the most important sentence:

Dr. Johanna Olson-Kennedy has worked to push gender hormone treatment down to eight year-olds, with research funding from the federal government. Now, big finish: the dates on the NIH grant that Billboard Chris highlighted:

This is a project — gender hormones for eight year-olds — that operated with federal funding during the first Trump administration. Policy expressed in words meets policy expressed in cash. This is what matters, year after year, through Republican and Democratic administrations alike (click to enlarge):

The money, the money, and the money. What you fund is what you’re doing. It may not seem like a big target, but the politicization of federal science funding is a root cause of institutional decay and pathological narrative-making, and cutting the money pipeline to politicized science is the policy action that will matter for decades. Remaking the funding pipeline for federal science grants is a day one priority, because the money will shape policy far more than any declaration of intent.

The problem is everywhere: the NIH, the NSF, NASA, NOAA, and so on. SpaceX is catching rockets; NASA is funding this: “21-EEJ21-0020 ASSESSMENT OF THE GULF COAST ENVIRONMENTAL JUSTICE LANDSCAPE FOR EQUITY.”

And this: “EXPLORING SYNERGISTIC OPPORTUNITIES BETWEEN CHARLOTTE-AREA ENVIRONMENTAL JUSTICE INITIATIVES AND NASA EARTH SCIENCE INFORMATION.”

Pick a federal science grant website and spend some time exploring it. Here’s the National Science Foundation’s funding opportunities page. Sample grant program: “Growing Research Compliance Support and Service Infrastructure for Nationally Transformative Equity and Diversity”.

Today’s funded program for transformative science equity and environmental justice is tomorrow’s new policy measures. This is the pipeline to programs. What you fund today is what you’re going to do in five years.

October 26, 2024

Our solar energy future – “In September alone, Germany paid 2.6 billion Euro to renewables producers for electricity that had a market value of a mere 145 million Euro”

Filed under: Economics, Germany, Media, Politics, Technology — Tags: , , , , , — Nicholas @ 04:00

Checking in with what’s been happening in Germany, eugyppius explains why solar power is far from the cost-free energy source that politicians and scam artists try to claim:

Photovoltaic panels on a roof, 28 April, 2015.
Photo by Antonio Chaves, via Wikimedia Commons.

Climatism in Germany is attended by all manner of naive ideas and bright pink fairytale slogans. Among the latter is a dubious proverb proclaiming that “The sun doesn’t send any bills” (in German: “Die Sonne schickt keine Rechnung“). Such proverbs always seem initially plausible (is there anything freer and more democratic than sunshine?) while proving to be basically the opposite of the truth. In fact, the energy transition has landed German taxpayers in the position of paying billions of Euros for the sun to shine. It is becoming an unmitigated disaster, and what is worse, the more we expand solar capacity, the more we will have to pay. For something that does not send any bills, sunshine has sure become very expensive here in the Federal Republic.

Welt calls it “the solar trap,” and it works like this: Our Renewable Energy Sources Act (EEG) pledges to pay renewables producers fixed tariffs for every kilowatt hour of electricity their installations feed into the grid. Whether you are an ordinary climate-conscious person with solar panels on your house or you run massive solar farms, the EEG entitles you to receive these fixed “feed-in tariffs” for a period of twenty years. The EEG also requires grid operators to accept your electricity regardless of demand and to sell it on the electricity exchange.

Now the sun, although it may not charge for its services, turns out to have this naughty habit of shining in many places all at once. When this happens, electricity supply often exceeds electricity demand and exchange prices fall. They can fall all the way to zero, or in extreme situations of excessive sunshine they can even go negative. Negative prices mean that you have to actually pay “buyers” to take the excess power off your hands. Whether the prices are merely very low, or zero, or negative, the German taxpayer has obligated himself, via the EEG, to pay these producers of unwanted if extremely green and climate-friendly electricity their fixed feed-in tariffs anyway. That is, we are on the hook for the difference between the actual exchange value of excess electricity and the feed-in tariffs promised to producers. In this way we have ended up literally paying for the sun to shine.

In September alone, Germany paid 2.6 billion Euro to renewables producers for electricity that had a market value of a mere 145 million Euro. Our sunny autumn is destroying our already-fragile government budget. Federal number-crunchers had originally allocated 10.6 billion Euros for feed-in tariffs in 2024, but already the government owes 15 billion and the year is not yet over. Scholz’s cabinet are thus trying to allocate an additional 8.8 billion Euro for the rest of the year. The parliament have yet to approve the additional funds, though, and also the damned sun will just not stop fucking shining, and so probably even this supplementary allocation won’t be enough. We’re bleeding money, all for a sun that doesn’t send any bills.

This problem will get worse before it gets better. The more solar panels we install, the greater oversupply we’ll face when the sun shines, and the larger the spread between the fixed feed-in tariffs and the actual market value of this green electricity. In 2024, as I said, the government projected that feed-in tariffs would cost 10.6 billion Euros, but they’ll probably end up costing 20 billion at least. Next year, the costs are projected to be even higher, and the year after that, they will be higher still. As Welt report, the German government plans to triple our solar capacity to 215 gigawatts over the next six years – “the equivalent of 215 nuclear power plants” every time the sun emerges from behind a blessed cloud.

The energy transitioners know they messed up. The new plan is to change the rules for solar subsidies. When prices go negative, larger producers won’t receive their fixed tariffs, and they’ll also have to sell their electricity themselves. In this way, they will become newly sensitive to market demand and stop overproducing electricity when nobody wants it. It is almost like creating a blind system totally oblivious to market incentives was a bad idea. Unfortunately, the new rules will apply only to new solar installations. The German government will still have to honour its insane agreement to pay the operators of older solar plants for years to come. We will light billions on fire for nothing.

October 8, 2024

Hats off to the brilliant negotiators of the Mauritian government

Filed under: Britain, Government, Military, USA — Tags: , , , , , — Nicholas @ 05:00

At The Critic, Yuan Yi Zhu salutes the negotiators who managed to get an amazing deal from the British government for the Chagos Islands (which contain the strategic US naval base of Diego Garcia):

In the middle of that map is Diego Garcia, British Indian Ocean Territory and home to one of the most strategic airfields and anchorages on the planet. […] The red circle is 2,000 nautical miles from the island. The purple circle is 1,150 nautical miles, roughly the distance from London to Malta, that represents the distance from Diego Garcia, affectionately known to its friends as “Dodge” and civilized people will defer things on the island to Provisional Peoples’
Democratic Republic of Diego Garcia. That circle is also the distance from Diego Garcia to the island of Mauritius.
Caption and image from CDR Salamander.

Donald Trump likes to brag about his prowess as a negotiator, but he has nothing on the government of Mauritius, which pulled one of history’s great diplomatic heists yesterday, when it announced that the British government had agreed to give it the Chagos Islands, which have been sovereign British territory without interruption since 1814.

To add insult to injury, not only will Mauritius gain a new colony, but it will collect large rents from the Americans for the military base on Diego Garcia, while the British government will pay hefty financial support to Mauritius (Africa’s third richest country on a per capita basis) for the honour of handing over to Mauritius one of the world’s most strategically valuable territories.

In other words, not only is Mauritius having its cake and eating it too, it has also extracted from the British taxpayer a new cake, to be savoured while it smugly lectures the world about the importance of decolonisation.

Never mind that Mauritius sold the Chagos Islands to the United Kingdom in 1965 for the-then astronomical sum of £3 million and a valuable British security guarantee. Its prime minister had described the islands as “a portion of our territory of which very few people knew … which is very far from here, and which we had never visited”, so it was no big loss.

In the 1980s, a new government changed its mind and decided to get the islands back. It alleged the British had threatened to withhold independence from Mauritius unless it agreed to sell the territory. The small problem was that every single surviving Mauritian negotiator cheerfully admitted that they didn’t care about the Chagos, whose inhabitants they regarded as half-civilised savages.

And the blackmail thesis suffered from the fact that Britain in the 1960s could not get rid of its remaining colonies fast enough — Mauritius had to wait a few more years for independence because part of its population wanted it to remain a British territory.

Mauritius then decided to wave the bloody shirt of the Chagossians, who had been callously expelled by the British to make way for the air base and dumped on Mauritius. The fact that the Mauritian treated them terribly — so terribly, in fact, that thousands of them left for the UK, the country which had deported them in the first place — was but a minor detail.

In 2019, Mauritius managed to get the International Court of Justice to say that the islands should be given to Mauritius. The ruling was not even legally binding, but Mauritius was somehow able to convince gullible Whitehall functionaries that Britain had no choice but to give the islands to Mauritius.

So far as I am aware, there is no truth to the rumour that Spain and Argentina are in negotiation with Mauritius to take over their respective territorial claims on Gibraltar and the Falkland Islands.

September 17, 2024

Noormohamed: “Nice newspaper, National Post. It’d be a shame if …”

Filed under: Business, Cancon, Media, Politics — Tags: , , — Nicholas @ 03:00

One of the more blatant examples of Liberals saying the quiet part out loud:

We need to talk about Liberal MP Taleeb Noormohamed and his not so subtle reminder to the National Post that it wouldn’t exist without the benefaction of Prime Minister Justin Trudeau’s government.

Noormohamed, Parliamentary Secretary for Heritage – the ministry responsible for media welfare – did so via a post on X in which he told NP Comment senior editor Terry Newman: “Your paper wouldn’t be in business were it not for the subsidies that the government that you hate put in place — the same subsidies your Trump-adjacent foreign hedge fund owners gladly take to pay your salary.”

I wrote at length about this for The Line and, being aware that there is some crossover among subscribers, I won’t repeat that, but here’s a summary, followed by an update and then we’ll dig a little deeper into government funding for media, trans activist extremism in the Senate and other juicy stuff.

As I wrote in The Line concerning the government’s willingness to put the squeeze on media, “Nothing Noormohamed said was untrue. He and I are in perfect alignment in the view that were it not for the patronage of the Justin Trudeau government, Postmedia (and likely the Toronto Star) would by now have ceased to exist. Some of its titles may have sold for parts, but most of its zombie products would have been dispatched long ago with a bankruptcy bullet to the brain, allowing new media to spring forth from decay.”

You can read it all here.

But the most alarming part of this story isn’t that Noormohamed said what he said. That was appalling but predictable. What’s truly chilling is that he could flex his muscles, whip out his influence and intimidate what was once a free and independent press in this country and get away with it.

There were just a handful of media responses to his highly inappropriate but not unexpected behaviour. A week later, I could find no fiery or even gentle editorials condemning his statements. My Google search revealed just three news stories (Western Standard, True North & Rebel News) while none of the nation’s leading commentators cleared their throats to object.

Perhaps this is because media decided it was no big deal that an influential government MP was reminding them to keep in mind just who is paying their bills when they sit down to write. It could also be that they are bothered by it but don’t wish to draw the public’s attention to their new role as government dependents because they know it undermines public trust in them. Or, they have just given up on the idea of freedom of the press but want to keep it as their dirty little secret. Maybe all three. All I could hear was the silence of the lambs being led to the slaughter.

June 13, 2024

Debunking the “miraculous” Marshall Plan

Filed under: Economics, Europe, Germany, History, USA, WW2 — Tags: , , , , , , , , — Nicholas @ 03:00

If you’ve read anything about the state of Europe in the aftermath of the Second World War, you’ll undoubtedly have heard of the way the Marshall Plan did wonders to get (western) Germany and the other battle-devastated nations back on their feet economically. At FEE, Christian Monson suggest that you’ve been provided with a very rosy scenario that doesn’t actually accord with the facts:

Konrad Adenauer in conversation with Ludwig Erhard.
KAS-ACDP/Peter Bouserath, CC-BY-SA 3.0 DE via Wikimedia Commons.

Unfortunately, the ubiquity of the myth that the Marshall Plan rebuilt Germany is proof that state-controlled education favors propaganda over economic literacy. Despite the fact that most modern historians don’t give the Marshall Plan much credit at all for rebuilding Germany and attribute to it less than 5 percent of Germany’s national income during its implementation, standard history textbooks still place it at the forefront of the discussion about post-war reconstruction.

Consider this section from McDougal Littell’s World History (p. 968), the textbook I was given in high school:

    This assistance program, called the Marshall Plan, would provide food, machinery, and other materials to rebuild Western Europe. As Congress debated the $12.5 billion program in 1948, the Communists seized power in Czechoslovakia. Congress immediately voted approval. The plan was a spectacular success.

Of course, the textbook makes no mention of the actual cause of the Wirtschaftwunder: sound economic policy. That’s because, for the state, the Marshall Plan makes great statist mythology.

Not only is it frequently brought up to justify the United States getting involved in foreign conflicts, but it simply gives support for central planning. Just look at the economic miracle the government was able to create with easy credit, they say.

And of course, admitting that the billions of dollars pumped into Germany after WWII accomplished next to nothing, especially when compared to something as simple as sound money, would be tantamount to admitting that the government spends most of its time making itself needed when it isn’t and thereby doing little besides getting in the way.

The Inconvenient Truth of Currency Reform

You are unlikely to find the real cause of the Wirtschaftwunder mentioned in any high school history textbook, but here is what it was. In 1948, the economist and future Chancellor of West Germany Ludwig Erhard was chosen by the occupational Bizonal Economic Council as their Director of Economics. He went on to liberalize the West German economy with a number of good policies, the most important being currency reform.

The currency in Germany immediately after WWII was still the Reichsmark, and both the Nazis and then the occupying Soviet authorities had increased the amount in circulation significantly. As a result, by 1948 the Reichsmark was so worthless that people had turned to using cigarettes and coffee as money.

To give people a true store of value so that they could calculate economic costs accurately, assess risk and invest in the future, Erhard created the Deutsche Mark, West Germany’s new currency. Like ripping off a bandaid, he decreased the money supply by 93 percent overnight.

It’s also worth noting that while Erhard, following his school of Ordoliberalism, did form a central bank, it was at least designed independent from the government and followed a hard-money policy (preserving a stable amount of money) through the length of the Wirtschaftswunder. In fact, the original Bank Deutsche Länder was rather limited in scope until it was reorganized as the considerably more centralized Bundesbank in 1957, incidentally when Germany’s economic miracle began to lose steam.

Other notable liberal policies instituted by Erhard included removing all price controls and lowering taxes from the Nazis’ absurd 85 percent to 18 percent. The American occupational authorities opposed these reforms, but Erhard went through with them anyway. This liberalization had an immediate effect. The black market disappeared almost overnight, and in one year, industrial output almost doubled.

Perhaps most poignantly, unemployment dropped from more than 10 percent to around 1 percent by the end of the 1950s. Normally the government tries to justify currency manipulation as a means to eliminate unemployment, but the Wirtschaftwunder is evidence that sound money does the job far better.

May 31, 2024

The best that can be said about VIA Rail is that its financials aren’t as dire as Canada Post

Filed under: Business, Cancon, Government, Media, Railways — Tags: , , , — Nicholas @ 03:00

Chris Selley outlines the financial black holes that are the two Crown Corporations — Canada Post and VIA Rail Canada:

VIA Rail 918, a General Electric model P42DC locomotive, at Belleville, Ontario on 23 December 2008.
Photo by Martin Cathrae via Wikimedia Commons.

If you’re unfamiliar with Via’s financials, I’ll advise you to sit down now.

In 2023, the average passenger on The Canadian line [Toronto/Montreal to Vancouver] was subsidized by the taxpayer to the tune of $1,014.77. Revenues on the route were less than half of expenses. And your average Canadian can’t even hope to ride the bastard thing: A bunk bed for the 34 hours and 35 minutes it takes to get from Toronto to Winnipeg still goes for the bargain price of $895.

It’s a cruise ship. Not only are we lavishly subsidizing a cruise ship, but we own the cruise line, and we’re buying it new ships. It’s absolutely bananas. And among those applauding the expenditure is, somehow, the NDP’s transport critic Taylor Bachrach. Where’s simplistic populism when you need it? No money for cruise ships!

Meanwhile, media are being far too indulgent of Via’s alarming and increasing vagueness as to whether it’s committed to “high-frequency rail” on the Toronto-to-Quebec City corridor, or to “high-speed rail”, or to some combination of both. This could not be a bigger or brighter red flag: Beware of Oncoming Boondoggle.

Committing billions of dollars to a new rail corridor between Toronto and Quebec City without a firm idea as to whether it’s “high-frequency” or “high-speed” is a bit like committing billions to a new housing development without knowing whether it’s bungalows or high-rise condos. A train going 300 kilometres per hour, or more (i.e., high-speed rail) needs vastly more protection (fences, eliminating level crossings) than a train going 200 kilometres per hour. It’s not a minor detail or something to be worked out later.

And it’s painfully obvious why Via’s executives are sowing the confusion: Because the high-frequency rail plan that they actually have simply isn’t that compelling. It may offer no time savings at all between Montreal and Toronto — and anyone who tries to tell you a five-hour trip between Montreal and Toronto is a compelling option for business people is either a deluded railfan or works for Via.

“Canada charts path for high-speed trains, but obstacles loom,” a recent Globe and Mail headline declared, completely incorrectly. But casual news consumers can absolutely be forgiven for thinking Via’s working on a Toronto-to-Quebec City version of France’s TGV. Should the high-frequency rail plan ever get built, I can only imagine the kvetching and disappointment that would follow.

May 29, 2024

Ontario’s long and winding (and subsidy-strewn) road to beer in convenience stores

Filed under: Business, Cancon, Government, Wine — Tags: , , , , , , , — Nicholas @ 03:00

Apparently I’ll have a little bit more to celebrate on my birthday this year as the Ontario government’s glacially slow-to-change alcohol sales rules are being liberalized as of September 5th to allow all the province’s convenience stores to begin selling beer and wine:

“The Beer Store” by Like_the_Grand_Canyon is licensed under CC BY-NC 2.0

Premier Doug Ford promised Ontarians beer in corner stores, supermarkets and big-box stores, and by God he has delivered. As of Sept. 5, all Ontario convenience stores meeting eligibility criteria will be allowed to sell beer, wine, cider and pre-mixed drinks. As of Oct. 31, the privilege will be extended to all grocery and big-box stores. The province says it expects as many as 8,500 new booze-procurement sites to come online under the new regime. By Ontario standards, it’s absolutely revolutionary.

The new regime is also, of course, hilariously complicated. And absurdly, offensively expensive.

It is fair to describe the new regime as somewhat more competitive, and certainly more convenient. In addition to offering potentially thousands of new locations, supermarkets (including the roughly 450 already licensed) will be able to offer volume discounts on beer — i.e., a 24-pack will cost less per bottle than a six-pack. This was a privilege hitherto reserved for The Beer Store, the American-, Belgian- and Japanese-owned conglomerate that dominated beer sales in Ontario from the end of Prohibition until fairly recently.

Private retailers will even be able to set their own prices, which until now has been considered blasphemy.

It is not fair to describe the new regime, as the government does, as an “open” market.

Near as I can tell, Ontario will by 2026 have the following retail environments in place:

  • The Beer Store. Smelly, surly, and the best-available value. Only beer — no cider or mixed drinks. It’s in the name.
  • LCBO locations. Government-run liquor stores retain their near-absolute monopoly on hard liquor sales, in addition to selling beer (especially craft beer, in which The Beer Store’s owners aren’t so interested), wine and everything else.
  • LCBO- and/or The Beer Store-branded “agency stores” in rural areas, which sell everything the LCBO does, but operate inside of convenience stores, small supermarkets and other local businesses, and are staffed by non-government employees.
  • The existing supermarkets licensed to sell beer, cider and wine (and in rare cases all three!), plus scores of new outlets — the new 8,500 new locations.

The Beer Store maintains a monopoly (in urban areas) on wholesale for bars and restaurants and on refunding cans and bottles, although its new “master framework agreement” (MFA) doesn’t even oblige it to maintain its current number of locations — which in urban areas have been dwindling rapidly. I’m a 17-minute walk from my nearest Beer Store. The house I grew up in, in the heart of midtown Toronto, is a 45-minute walk. I’m not schlepping a leaky garbage bag full of empty cans either distance.

May 20, 2024

The economic distortions of government subsidies

Filed under: Britain, Business, Economics, Government, History — Tags: , , , , , — Nicholas @ 03:00

The Canadian federal and provincial governments are no strangers to the (political) attractions of picking winners and losers in the market by providing subsidies to some favoured companies at the expense not only of their competitors but almost always of the economy as a whole, because the subsidies almost never produce the kind of economic return promised. The current British government has also been seduced by the subsidies game, as Tim Congdon writes:

Former British Conservative Prime Minister Margaret Thatcher in 1983. She was in office from May 1979 to November 1990.
Photo via Wikimedia Commons.

Why do so many economists support a free market? By the phrase they mean a market, or even an economy dominated by such markets, where the government leaves companies and industries alone, and does not try to interfere by “picking winners” and subsidising them. Two of the economists’ arguments deserve to be highlighted.

The first is about the good use — the productivity — of resources. To earn a decent profit, most companies have to achieve a certain level of output to attract enough customers and to secure high enough revenue per worker.

If the government decides to give money to a favoured group of companies, these companies can survive even if they produce less, and obtain lower revenue per worker, than the others. The subsidisation of a favoured group of companies therefore lowers aggregate productivity relative to a free market situation.

In this column last month I compared the economically successful 1979–97 Conservative government with the economically unsuccessful 2010–2024 Conservative government, which is now coming to an end. In the context it is worth mentioning that Margaret Thatcher and her economic ministers had a strong aversion to government subsidies of any kind.

According to Professor Colin Wren of Newcastle University’s 1996 study, Industrial Subsidies: the UK Experience, subsidies were slashed from £5 billion (in 1980 prices) in 1979 to £0.3 billion in 1990. (In today’s prices that is from £23 billion to under £1.5 billion.)

Thatcher is controversial, and she always will be. All the same, the improvement in manufacturing productivity in the 1980s was faster than before in the post-war period and much higher than it has been since 2010. Further, one of Thatcher’s beliefs was that if the private sector refuses to pursue a supposed commercial opportunity, the public sector most certainly should not try to do so.

Such schemes as HS2 and the Hinkley Point nuclear boondoggle could not have happened in the 1980s or 1990s. They will result in pure social loss into the tens of billions of pounds and will undoubtedly reduce the UK’s productivity.

But there is a second, and also persuasive, general argument against subsidies and government intervention in industry. An attractive feature of a free market policy is its political neutrality. Because market forces are to determine commercial outcomes, businessmen are wasting their time if they lobby ministers and parliamentarians for financial aid.

Honest and straightforward tax-paying companies with British shareholders are rightly furious if they see the government channelling revenues towards other companies who have access to the right politicians and friendly civil servants. By definition, the damage to the UK’s interests is greatest if the recipients of government largesse are foreign.

March 23, 2024

QotD: The SCIENCE was SETTLED in the 1970s

Filed under: Environment, Food, Government, Health, USA — Tags: , , , , , , , — Nicholas @ 01:00

When it comes to Leftie, it’s really hard to sort out what’s intentional from what’s merely wrong, or outdated, or stupid, or some combination of the above. So while there really does seem to be some kind of coordinated push to get us to eat grass and bugs, the red meat thing is, I think, just old misinformation that Leftie can’t admit has been overtaken by events (because, of course, Leftists can never be wrong about anything). And I’ll even kinda sorta give them a pass on that, because I know a lot of medical people who learned the “red meat is bad for you” mantra back in the days and still haven’t gotten over it …

For younger readers, back in the late 70s the nutritional Powers That Be got in bed with the corn lobby. It sounds funny, but they were and are huge, the corn lobby — why do you think we’re still getting barraged with shit about ethanol, even though it’s actually much worse for the environment than plain ol’ dinosaur juice, when you factor in all the “greenhouse emissions” from growing and harvesting it? Anyway, ethanol wasn’t a thing back then … but corn syrup was, and so suddenly, for no reason whatsoever, the PTB decided that fat was bad and carbohydrates were good.

Teh Science (TM) for this was as bogus and politicized as all the other Teh Science (TM) these days, but since we still had a high degree of social and institutional trust back then — living in a country that’s still 85% White will do that — nobody questioned it, and so suddenly everything had to be “fat free”, lest you get high blood pressure and colon cancer and every other damn thing (ever notice how, with Teh Science (TM), everything they decide is bad suddenly correlates with everything that has ever been bad? Funny, that). But since fat is what makes food taste good, they had to find a tasty substitute … and whaddya know, huge vats full of corn syrup just kinda happened to be there. Obesity rates immediately skyrocketed; who’d have thunk it?

… but again, this isn’t a deliberate thing with your average Leftie. You know how they are about Teh Science (TM), even Teh Science (TM) produced by people who thought polyester bellbottoms were a great look, which alone should tell you everything you need to know. They just learned “red meat is bad”, and so, being the helpful sorts they are, decided to boss you around about it. You know, for your own good.

Severian, “Friday Mailbag / Grab Bag”, Rotten Chestnuts, 2021-06-25.

February 27, 2024

Thank goodness we don’t get all the CBC we pay for!

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

In the dim, dark recesses of history … say twenty-five years ago … the CBC was what the government still seems to believe it is: a credible, trusted source of news and entertainment. In truth, it was never as loved as some might claim, as it had a deep bias in favour of Quebec and Ontario issues and tended to only occasionally remember the rest of the country. The federal government has been subsidizing the CBC, yet the network’s audience has shrunk to the point that it’s rare to encounter anyone who consumes very much of the programming on offer. Part of that is just the sheer variety of other options available to Canadians and part of it is the CBC’s sour, toxic, hectoring tone when lecturing about “the current thing”. Far from being a major player in upholding Canadian culture, the CBC is clearly one of the major factors that are destroying it:

… looking at the viewer and listener stats for the CBC, our national behemoth, which eats up $1.5 billion annually, and which amounts to 50% of the media dollars spent, is equally disheartening. The state spends another $600 million supporting once-successful media because “internet”. CBC television is watched by 3.9% of Canadians and only 0.8% watch CBC News. Again, half of all media dollars, half. Half is spent engaging less than 4% of Canadians. CBC radio is considered reasonably good, and is listened to by 10%, despite its vindictive calling out of anyone who disagrees with their hard socialist stance. As to other mainstream media, propped up by government via hundred of millions, it is still shedding staff and readers in double digits.

Despite every conceivable advantage, advertising on the CBC dropped 20% during the pandemic. In fact, they are so disliked that CBC is hiring “close protection security” for the next two years. They are so disliked, they have turned off commenting on their various programs. They are so disliked that there is a brand of coffee called “Defund the CBC”. This isn’t passive ignoring, this is active dislike to the point of needing bodyguards.

Why? Because our media show us to ourselves as racist, stupid, sexist, stupid, stupid and more stupid. And while they are at it, shallow and violent. That is the real reason, and the only reason CanCon is dying. They hate us. Why? The only people who have thrived during the past twenty years in Canada when private and public wealth doubled then doubled again, are the ones who live off the government, whether through mandated consulting in the enviro and other business, or direct granting or though quasi-private-sector jobs that are heavily subsidized. Public Private Partnerships have to be the most fiendish way to flat out loot the public ever been invented. Or straight up public sector jobs which are among the most lushly funded and unionized in the known universe, the number of which have grown 400% in the last ten years. Do or did you get six weeks of paid holiday a year?

And do they hate us, in fact correcting us is how they get the grants, the jobs, the subsidy. Everything they do is meant to fix us deplorable Canadians.

Sit at a downtown Toronto dinner party as I have, with say, the head of CBC drama, as I have and listen to just how much they hate the rest of Canada. Why? They hate the rest of Canada because they feel guilty. They know they are cheating and they know they are stealing. I tell ya, I needed close protection security — this woman was terrifying. “Sit Down While I’m Talking to You“, she roared at me.

February 25, 2024

Canadian publishing “has been decimated since Ottawa took an active interest in it and while federal policies haven’t been the whole problem, they’ve been vigorous contributors”

Filed under: Books, Bureaucracy, Cancon, Government, Media, Technology — Tags: , , , , , , , , — Nicholas @ 03:00

In the latest SHuSH newsletter, Ken Whyte contrasts the wholesome intentions of the Canadian federal government on cultural issues with the gruesome reality over which they’ve presided:

Even James Moore, [Liberal cabinet minister Melanie] Joly’s Conservative predecessor in the heritage department, applauded her initiative as good and necessary, although he warned it wouldn’t be easy. Moore had wanted to do the job himself, but his boss, Stephen Harper, didn’t want to waste political capital on fights with the arts community. He told Moore his job in the heritage department was to sit on the lid.

Joly got off to a promising start, only to have her entire initiative scuppered by a rump of reactionary Quebec cultural commentators outraged at her willingness to deal with a global platform like Netflix without imposing on it the same Canadian content rules that Ottawa has traditionally applied to radio and television networks. Liberal governments live and die by their support in Quebec and can’t afford to be offside with its cultural community. Joly was shuffled down the hall to the ministry of tourism.

She has been succeeded by four Liberal heritage ministers in five years: Pablo Rodriquez, Steven Guilbeault, Pablo Rodriguez II, and Pascale St-Onge. Each has been from Quebec and each has been paid upwards of $250,000 a year to do nothing but sit on the lid.

The system remains broken. We’ve discussed many times here how federal support was supposed to foster a Canadian-owned book publishing sector yet led instead to one in which Canadian-owned publishers represent less than 5 percent of book sales in Canada. The industry has been decimated since Ottawa took an active interest in it and while federal policies haven’t been the whole problem, they’ve been vigorous contributors.

Canada’s flagship cultural institution, the CBC, is floundering. It spends the biggest chunk of its budget on its English-language television service, which has seen its share of prime-time viewing drop from 7.6 percent to 4.4 percent since 2018. In other words, CBC TV has dropped almost 40 percent of its audience since the Trudeau government topped up its budget by $150 million back in the Joly era. If Pierre Poilievre gets elected and is serious about doing the CBC harm, as he’s threatened since winning the Conservative leadership two years ago, his best move would be to give it another $150 million.

The Canadian magazine industry is kaput. Despite prodigious spending to prop up legacy newspaper companies, the number of jobs in Canadian journalism continues to plummet. The Canadian feature film industry has been moribund for the last decade. Private broadcast radio and television are in decline. There are more jobs in Canadian film and TV, but only because our cheap dollar and generous public subsidies have convinced US and international creators to outsource production work up here. It’s certainly not because we’re producing good Canadian shows.

[…]

When the Trudeau government was elected in 2015, it posed as a saviour of the arts after years of Harper’s neglect and budget cuts. It did spend on arts and culture during the pandemic — it spent on everything during the pandemic — but it will be leaving the cultural sector in worse shape than it found it, presuming the Trudeau Liberals are voted out in 2025. By the government’s own projections, Heritage Canada will spend $1.5 billion in 2025-26, exactly what it spent in Harper’s last year, when the population of Canada was 10 percent smaller than it is now.

That might have been enough money if the Liberals had cleaned up the system. Instead, they’ve passed legislation that promises more breakage than ever. Rather than accept Joly’s challenge and update arts-and-culture funding and regulations for the twenty-first century, the Trudeau government did the opposite. Cheered on by the regressive lobby in Quebec, it passed an online news act (C-18) and an online streaming act (C-11) that apply old-fashioned protectionist policies to the whole damn Internet.

This comes on top of the Liberals transforming major cultural entities, including the CBC and our main granting bodies, The Canada Council and the Canada Book Fund, into Quebec vote-farming operations. The CBC spends $99.5 per capita on its French-language services (there are 8.2 million Franco-Canadians) and $38 per capita on Canadians who speak English as the first official language. The Canada Council spends $16 per capita in Quebec; it spends $10.50 per capita in the rest of Canada. The Canada Book Fund distributes $2 per capita in Quebec compared to $.50 per capita in the rest of the country. Even if one believes that a minority language is due more consideration than a majority language, these numbers are ridiculous. They’re not supporting a language group; they’re protecting the Liberal party.

November 24, 2023

More than 1,500 new jobs thanks to federal and provincial subsidies … except the jobs are for South Koreans

Filed under: Asia, Business, Cancon, Government — Tags: , , , , , — Nicholas @ 03:00

Tristin Hopper applauds the great job creation scheme that the federal and Ontario governments have put in place … if you ignore the inconvenient fact that most of the newly created jobs aren’t even going to Canadians:

When the Ontario and federal governments greenlit one of the biggest corporate subsidy payouts in Canadian history last summer, their main pitch was the deal would create jobs.

“The governments of Canada and Ontario are partnering to attract once-in-a-generation projects that will anchor our auto manufacturing sector and keep good jobs in Canada,” reads the opening line of a July 6 joint statement announcing a record-breaking $28 billion in government “performance incentives” to secure two foreign-owned EV battery factories in Southern Ontario.

The subsidy-per-job ratio was never great. Even according to the most optimistic estimates of government spokespeople, the two factories — one operated by Volkswagen, the other by Stellantis — would create about 5,500 jobs. Per job, that’s roughly $5 million in lifetime subsidies and tax credits.

But now, it appears that many of those jobs may not even go to Canadians.

Last week, during a visit by South Korean Ambassador Woongsoon Lim to Windsor, Ont., a social media post by the Windsor Police casually mentioned that “1,600 South Koreans” would soon be arriving in the community to staff the Stellantis plant, which is set to open next year.

    With the new LGEngergy Solutions battery plant being built, we expect approximately 1,600 South Koreans traveling to work and live in our community in 2024.

    — Windsor Police (@WindsorPolice) November 16, 2023

The CEO of NextStar — the Stellantis joint venture operating the factory — hasn’t confirmed the 1,600 figure, but said in a statement that the “equipment installation phase of the project requires additional temporary specialized global supplier staff”. He added that the company was “committed” to hiring Canadians to fill the 2,500 full-time jobs at the completed plant

The revelation has sparked a wave of confusion and finger-pointing among the very officials who, mere months ago, were championing the plant as an unalloyed triumph for Canadian manufacturing jobs.

When the subsidy arrangement was first announced in July, Ontario Economic Development Minister Vic Fedeli called it a “historic deal” and “a great agreement” that “protects the thousands of jobs quite frankly that were at stake”.

June 25, 2023

Canada’s DeLorean – Bricklin SV-1

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

Ruairidh MacVeigh
Published 5 Sept 2020

This week, it’s back to cars, and today we look at the history of a motoring scandal that took place 10 years before DeLorean and his DMC-12, but followed nearly the same notes; a rushed design, shady business practices, an inexperienced workforce in an impoverished part of the world, etc.

The Bricklin SV-1 may have looked good on paper, but in reality it was a severely flawed design that was ahead of its time in many aspects, but highly primitive in others.
(more…)

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