Quotulatiousness

February 6, 2013

Why does every infrastructure project cost more?

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

In his nominally NFL-related column, Gregg Easterbrook usually manages to insert interesting topics that are not in the least related to football:

Where Is the Bridge to Nowhere When You Really Need It? Another reason unprecedented increase in the national debt is not resulting in newly built infrastructure to help the economy grow is that government projects keep taking longer and costing more. Two years ago on Reuters, your columnist opined, “A combination of top-heavy bureaucracy, union rules, cost-plus profits and graft have made recent federally funded construction projects insanely expensive and slow. When the funding comes from borrowing by Washington, then businesses, unions and local petty officials have a self-interest in running up the cost while dragging their feet.”

That column ended by noting the slow pace and cost overruns in plans to replace the Tappan Zee Bridge on the Hudson River north of New York City.

Now two years have passed, and guess what’s happened to the Tappan Zee Bridge replacement project? It’s no closer to beginning. New York Magazine reports that $88 million has been spent just to study a bridge replacement — not for architecture drawings, just study. The original Tappan Zee Bridge, completed in 1955, cost $675 million in today’s dollars and required three years to complete. New York State officials are saying the replacement will cost at least $3 billion and take five years to build. New York Magazine warns the price is lowballing for an expected cost much higher.

New York is demanding that the federal government fund most of the new bridge. Borrowed funny-money would be used; contractors and unions would have every incentive to drag their feet, running up the bill, while corrupt politicians would want the project to last as long as possible, so there was more funny-money to steal.

Meanwhile the existing Tappan Zee Bridge continues to crumble and nothing’s being done. At the current snail’s pace, a new bridge is many years away. What if the existing bridge collapses? Politicians will claim they were never warned, just as they claimed they were never warned before storm surge from Hurricane Sandy smashed up lower Manhattan, Long Island and Hoboken, N.J. Running up the national debt is bad enough; not building what the country needs is even worse. But politicians observe that behaving recklessly, then blaming others, is what advances their careers. Barack Obama acted recklessly with the nation’s finances, and was re-elected. Chris Christie did nothing to prepare New Jersey’s low-lying city from storm surge, then blamed others, and made the cover of Time magazine. Where is the political leader who will place acting responsibly ahead of self-promotion?

November 27, 2012

Comparing Walmart to Costco

Filed under: Business, USA — Tags: , , — Nicholas @ 10:16

Megan McArdle explains why the facile comparison of the two big US retail firms does not make as much sense as people think:

One simply cannot have a discussion about Walmart’s wages without someone bringing up Costco. It seems to be de rigeur, like tipping your waiter, calling your mother on her birthday, and never starting your thank you notes with the words “Thank you”. So lets get it out of the way before the supper gong goes.

[. . .]

Costco has a more highly paid labor force — but that labor force also brings in a lot more money. Costco’s labor force, paid $19 an hour, brings in three times as much revenue as a Walmart workforce paid somewhere between 50-60% of that. (There’s a bit of messiness to all these calculations, because of course both firms have employees who don’t work in stores — but that’s the majority of their workforce, so I’m going to assume that the differences come out in the wash.)

This is not because Costco treats its workers better, and therefore gets fantastic productivity out of them, though this is what you would think if you listened to very sincere union activists on NPR. Rather, it’s because their business model is inherently higher-productivity. A typical Costco store has around 4,000 SKUs, most of which are stacked on pallets so that you can be your own stockboy. A Walmart has 140,000 SKUs, which have to be tediously sorted, replaced on shelves, reordered, delivered, and so forth. People tend to radically underestimate the costs imposed by complexity, because the management problems do not simply add up; they multiply.

One way to think about this is Thanksgiving dinner: how come you, who are capable of getting a meal on the table 364 nights of the year, suddenly find yourself burning things, forgetting the creamed onions in the microwave, and bringing the mashed potatoes to the table a half an hour late? Because when you’re cooking sixteen things instead of four, it is not the same as cooking four four-item meals. There are all sorts of complex interactions involving things like heating times and oven space, and adding more people to the problem, while probably necessary, itself multiplies the complexities.

November 24, 2012

The disappointment of the WalMart protest

Filed under: Business, Politics, USA — Tags: , , , — Nicholas @ 11:11

Megan McArdle says that the turnout for yesterday’s nation-wide protest outside WalMart stores fell well short of expectations, but that this shouldn’t be surprising:

There’s an irony to labor organizing: the best time to get workers fired up is during economic downturns, but this is probably the worst time to actually organize them. People are most interested in union actions when jobs are scarce and they feel economically insecure, but of course, that’s when they can ill-afford to take economic changes. Unions made big gains during the Great Depression, to be sure, but they had a host of new laws and a labor-activist FDR administration throwing heavy weight behind those efforts. Without that political help, it’s hard to see how unions could have made such big gains — and of course, arguably, the higher wages that FDR’s policies pushed for helped prolong the Great Depression.

Recessions are also a time when employers don’t necessarily have a lot of profits to give up. Walmart’s $446 billion of revenue last year was eye-popping, but its profit margins are far from fat — between 3% to 3.5%. If they cut that down by a percentage point — about what retailers like Costco and Macy’s have been bringing in — that would give each Walmart employee about $2850 a year, which is substantial but far from life-changing. Further wage improvements would have to come out of the pockets of Walmart’s extremely price conscious shoppers. Which might be difficult, given how many product categories Amazon is pushing into.

The other potential strategy is to mobilize those customers — to cost Walmart business unless they up their wage-and-benefit game. But the Black Friday bargain hunters apparently simply pushed past the scattered protests in search of cheap flat-screen televisions — and the progressives who seem most on fire about this campaign are not really very likely to be Walmart shoppers. Which could be a metaphor for the whole US labor movement.

October 1, 2012

Michigan’s unions battle for a veto right over state law

Filed under: Government, Law, USA — Tags: , , , — Nicholas @ 10:10

In the Wall Street Journal, Shikha Dalmia looks at a proposed constitutional amendment in Michigan which would give unions a huge veto power over state law:

The Michigan Supreme Court recently approved the placement of a proposed constitutional amendment on the November ballot. If passed by voters, the so-called Protect Our Jobs amendment would give public-employee unions a potent new tool to challenge any laws — past, present or future — that limit their benefits or collective-bargaining powers. It would also bar Michigan from becoming a right-to-work state in which mandatory union dues are not a condition of employment. The budget implications are dire.

[. . .]

The amendment says that no “existing or future laws shall abridge, impair or limit” the collective-bargaining rights of Michigan workers. That may sound innocuous, but according to Patrick Wright of the Mackinac Center for Public Policy, the amendment would hand a broad mandate to unions to challenge virtually any law they don’t like.

[. . .]

The ballot initiative states that it would “override state laws that regulate hours and conditions of employment to the extent that those laws conflict with collective bargaining agreements.” In other words, collective-bargaining agreements negotiated behind closed doors would trump the legislature — a breathtaking power grab that would turn unions into a super legislature.

Perhaps the biggest upside for unions is that the proposal would prohibit Michigan from becoming a right-to-work state. Regaining its competitive position with respect to the 23 right-to-work states that have become attractive to manufacturers, even auto makers, would be unlikely. Rather, labor would get a field-tested strategy for scrapping those states’ right-to-work laws with ballot referendums.

September 25, 2012

QotD: Replacement NFL referees

Filed under: Football, Humour, Quotations — Tags: , , , — Nicholas @ 10:30

The replacement officials are a mockery wrapped in a travesty, dunked in a vat of incompetence, glazed with WTF and set to the Benny Hill theme song.

Scott Feschuk, “In defence of the replacement officials (Kidding: they’re terrible)”, Maclean’s, 2012-09-25

July 14, 2012

Ontario’s latest headache in the education ministry

Filed under: Cancon, Education, Government, Humour — Tags: , , , , — Nicholas @ 09:29

Mark Schatzker explains the new disaster unfolding in the Ontario government’s education file:

According to reports, a number of large unions, including CUPE, IATSE and the United Steelworkers, are already courting prominent Toronto-area student leaders. It is expected that any negotiation will include a list of long-standing student grievances. Top among them is the issue of merit based marking.

“Someone has to do something about all these losers who hog all the best marks,” said Stu, a grade 11 student at Central Etobicoke High School who did “brutal” in Functions and Applications this year.

His friend and co-organizer Luke says a union will be able to push for a “marks tax” on the top one per cent of students. “You have these total nerds who get, like 98 in Bio,” Luke explained. “We think they should give five or ten per cent of those marks to the students who get 45.”

“We have to stop rewarding greed,” Stu said.

Over at Parkside Elementary School in Scarborough, Isabelle, who is in grade seven, is also taking up the fight to make Toronto schools a closed shop. At the top of her grievance list: “geographism.”

“The way it works right now,” Isabelle explained, “is that you have to go to whatever school is closest to your house. But what if your best friend from music camp goes to a different school? How is that, like, fair?”

Sources in the Ministry of Education say the province is already close to signing a deal with elementary students with a benefits package that includes: cupcake Fridays, a ban on quinoa, and a 5.7 per cent increase in recess every year for the next four years, raising it to 20.9 minutes by 2017. (It is presently 15 minutes.)

June 19, 2012

QotD: The mottos of “High Liberalism”

Filed under: Economics, Government, Liberty, Quotations — Tags: , , , , — Nicholas @ 07:45

The story is, in a few brief mottos to stand for a rich intellectual tradition since the 1880s: Modern life is complicated, and so we need government to regulate. Government can do so well, and will not be regularly corrupted. Since markets fail very frequently the government should step in to fix them. Without a big government we cannot do certain noble things (Hoover Dam, the Interstates, NASA). Antitrust works. Businesses will exploit workers if government regulation and union contracts do not intervene. Unions got us the 40-hour week. Poor people are better off chiefly because of big government and unions. The USA was never laissez faire. Internal improvements were a good idea, and governmental from the start. Profit is not a good guide. Consumers are usually misled. Advertising is bad.

Thus Anderson: “Externalities, asymmetrical information, and other collective action problems are … pervasive in economic life. Countless ways of conducting business reap gains for some while imposing unjust costs on others. Create a cartel. Stuff rat feces in sausages.” Thus Freeman: “It is a truism to say that in order to achieve the benefits of an efficient market economy (increasing productivity, greater economic output, increasing productive capital, etc.), the basic rules of property, contract, and exchange must be structured [by government] to realize efficient market relations.”

No. The master narrative of High Liberalism is mistaken factually. Externalities do not imply that a government can do better. Publicity does better than inspectors in restraining the alleged desire of businesspeople to poison their customers. Efficiency is not the chief merit of a market economy: innovation is. Rules arose in merchant courts and Quaker fixed prices long before governments started enforcing them.

I know such replies will be met with indignation. But think it possible you may be mistaken, and that merely because an historical or economic premise is embedded in front page stories in the New York Times does not make them sound as social science. It seems to me that a political philosophy based on fairy tales about what happened in history or what humans are like is going to be less than useless. It is going to be mischievous.

Dierdre McCloskey, “Factual Free-Market Fairness”, Bleeding Heart Libertarians, 2012-06-16

April 9, 2012

“Teacher tenure is one of those ideas” [that] “do real damage to the public education system”

Filed under: Bureaucracy, Education, Government, Politics — Tags: , , , — Nicholas @ 12:58

If I told you that an article in support of ending tenure for public school teachers appeared in The New Republic, would you believe it? I wouldn’t have done, until today:

Like the abortion measures, this bill was also pushed by Republicans — but here’s the strange part: It was actually a halfway decent idea. The subject of the bill was an important one: tenure for public school teachers. And, while the proposal wasn’t perfect, it was at least an attempt to rectify what is perhaps the least sane element of our country’s approach to education.

The vast majority of states have long granted public school teachers tenure. The way it works is simple: After a certain number of years, teachers qualify — “virtually automatically” in most states, according to the National Council on Teacher Quality — for a form of job protection that makes it extremely difficult to fire them for the rest of their careers.

[. . .]

So what is the case for K–12 teacher tenure? The truth is, there isn’t a good one. One argument typically offered by tenure defenders is that teaching is a notoriously difficult profession in which to measure success. But this is true for lots of jobs — yet, in all other professions, efforts are still made, however imperfect, to evaluate whether an employee is succeeding and to remove those who are not. Why should teaching be different? In fact, given that teaching is arguably the most important job in our society, it would be difficult to name a profession, save maybe the military, for which these sorts of heightened job protections would be less logical. If a job is truly important to the nation’s future, then you want to make sure that the most able, talented people are doing it — and doing their best work at all times.

That goal is simply incompatible with tenure. Indeed, tenure is so illogical that it’s impossible to see why it shouldn’t be abolished. And that is exactly what the Virginia bill sought to do. Predictably, however, Democrats — who remain far too beholden to teachers’ unions — scuttled the measure. As a result, tenure lives on in Virginia for now.

February 3, 2012

The end of London’s diesel locomotive plant

Filed under: Cancon, Economics, Railways — Tags: , , , , — Nicholas @ 12:10

I’ve updated my earlier post on the labour dispute at London’s EMC plant now that the current owners have announced the closure of the facility.

Update, 5 February: Mike P. Moffatt at Worthwhile Canadian Initiative debunks some of the media coverage of the closure:

After the U.S.-Canada Free Trade Agreement, GM Diesel closed their La Grange, Illinois plant and consolidated their production to the London plant, though kept the head office, research, design, and manufacturing of some components in La Grange. EMD London was a direct beneficiary of the U.S.-Canada Free Trade agreement, something I have yet to hear in the media. The domestic locomotive market, by itself, would not have supported the level of production we have seen over the last two decades.

In 2005, GM Diesel sold the Electro-Motive Division (including the GM Diesel plant in London and the head office in La Grange) to a couple of U.S. private equity firms, who re-named it Electro-Motive Diesel. In 2010, those firms sold EMD to Caterpillar.

[. . .]

We need to keep in mind that:

  1. EMD has always been a U.S. corporation.
  2. The intellectual property from research and design, etc. was from the head office in La Grange, Illinois.

So that leaves “know-how” which Cohn mentions in a follow-up paragraph. On Twitter, Colby Cosh asked: “Cohn talks about “know-how” but (a) know-how isn’t IP and (b) Cat doesn’t seem to have much use for the workers who have it, do they?” Caterpillar, however, did send a number of employees from London to their new plant in Muncie, IN, to train newly hired workers. I am Facebook friends with an EMD worker and I remember him objecting loudly to this last fall. But did Caterpillar really buy EMD so that it could obtain the talents of a dozen guys to teach advanced welding techniques?

There are a lot of narratives to this story, many of them unpleasant. A narrative about a U.S. company buying Canadian IP at 15 cents on the dollar does not pass the sniff test, however.

Update the second, 7 February: Andrew Coyne gets his inconvenient, yucky facts in our lovely flag-waving, anti-capitalist nationalistic fantasy:

EMD never received any subsidies from the federal government; certainly not since Caterpillar bought it. Indeed, looking through the hundreds of pages of “grants and contribution” in the Public Accounts, it may be the only company in the country that didn’t. The Harper visit to which Olive refers was to promote a tax break for the purchasers of locomotives, not the manufacturers. The visit occurred in 2008, two years before the Caterpillar purchase.

It’s not clear how the foreign investment laws could have been invoked to cover a purchase of an American company by another American company, or if they could, why this should be the pretext for “demanding job guarantees.” Presumably if it is wrong for a firm to close a plant or lay off workers, it is just as wrong whether it has recently been the object of a foreign takeover bid or not. Perhaps you will say we should bar all companies from closing a plant. Okay: why would they ever open one? If workers, once hired, cannot ever be laid off, why would they ever be hired?

Of course, there’s always Olive’s suggestion of a punitive tariff, through which the cost of keeping jobs in London locomotive plants could be shared by consumers and businesses across the country. (You’re welcome.) This would recreate the system of foreign branch plants that existed in the days before free trade, small factories producing exclusively for the domestic market. Rather than lament at foreigners stealing our jobs and technology, the nationalists could once again lament at being tenants in our own land.

January 27, 2012

Megan McArdle finds the right word to describe Obama’s vision: Nostalgianomics

Filed under: Economics, History, Politics, USA — Tags: , , , — Nicholas @ 09:41

In her column in The Atlantic, Megan McArdle points out the extremely ahistorical nostalgia that seems to infuse President Obama’s vision:

Surely Obama’s economic advisors have not told him that they know how to replicate the growth of the 1950s — and if they did, surely the last three years have given the lie to this belief.

I think the speech made it even clearer that other speeches have that the president’s vision of the world is a lightly updated 1950s technocracy without the social conservatism, and with solar panels instead of rocket ships. Government and labor and business working in tightly controlled concert, with nice people like Obama at the reins — all the inventions coming out of massive government or corporate labs, and all the resulting products built by a heavily unionized workforce that knows no worry about the future.

There are obviously a lot of problems with this vision. The first is that this is not what the fifties and sixties were actually like — the government and corporate labs sat on a lot of inventions until upstart companies developed them, and the union goodies that we now think of as typical were actually won pretty late in the game (the contracts that eventually killed GM were written in the early 1970s).

And to the extent that the fifties and sixties were actually like this, we should remember, as Max Boot points out, that this was not actually the day of the little guy. Big institutions actually had a great deal more power than they do now; it was just distributed somewhat differently — you had to worry less about big developers slapping a high-rise next to your single-family neighborhood, and a whole lot more about Robert Moses deciding he wanted to run a freeway through the spot where your house happened to be.

The military model of society — employed by both Obama, and a whole lot of 1950s good government types — was actually a kind of creepy way to live. As Boot says, “America today is far more individualistic and far more meritocratic with far less tolerance for rank prejudice and far less willingness to blindly follow the orders of rigid bureaucracies.” If you want the 1950s except without the rigid conformity and the McCarthyism, then you fundamentally misunderstand what made the 1950s tick.

January 26, 2012

The fate of London’s diesel locomotive plant

Filed under: Cancon, Economics, Media, Politics, Railways — Tags: , , , , , — Nicholas @ 10:38

In the Toronto Star, Martin Regg Cohn (who claims he “is not an anti-globalization crusader”) does his level best to put forward a case for massive government intervention in a labour dispute between Caterpillar and the Canadian Auto Workers:

At the old locomotive plant now owned by U.S.-based multinational Caterpillar Inc., the Canadian Auto Workers union is not even on strike. The CAW has been locked out since New Year’s Day because it refused to sign its own death warrant by agreeing to slash wages in half for most workers from $34 an hour to $16.50.

When a powerful multinational negotiates in bad faith, it becomes a story that governments in Queen’s Park and Ottawa can no longer wash their hands of. To put it in language that resonates with Premier Dalton McGuinty: When a bully tries to humiliate people, you can’t just watch in silence.

When high-paying skilled local jobs can be shredded at the whim of a combative multinational giant, it dramatically undermines all the upbeat rhetoric we hear from McGuinty and Prime Minister Stephen Harper about Canada’s global appeal. It sends a signal that Ontario is not so much open for business as it is closed for unions.

We jump directly from Caterpillar’s demand for wage reductions to an assertion that the company is negotiating in bad faith (I guess, from the union’s point of view, anything other than a wage increase is proof). No indication whether the company’s demand is economically justifed — if sales of the plant’s railway locomotives are as bad as the wage offer implies, then the next step will be closing the plant — just straight over to bad-mouthing the company.

And, of course, it’s merely objective reporting to use pejorative descriptors when discussing the eeeeevil multinational firm. Not content merely to malign the company, he then calls on the Premier to support the union to the hilt:

So what can our anti-bullying premier do?

If I were McGuinty, I would ask myself a simple question: What would Bill Davis do?

The former Tory premier of Ontario wasn’t perfect, but he was always plugged in. He took labour seriously, listened closely to business and wooed foreign investors (remember Renault?). He knew how to leverage the power of the premier’s office to stand up for Ontario’s greater interests.

A phone call to Caterpillar’s corporate braintrust would show that Ontario’s premier is no pushover. If that didn’t work, a phone call to Harper — who is still trying to live down the tax breaks he gave the locomotive factory’s former owners a few years ago — might find a receptive ear.

And finally we get to a good point: the foolishness of governments in giving special tax breaks to certain industries or companies. If it’s in the company’s best interests to locate in your jurisdiction, they’ll probably do it. If you have to bribe them with tax breaks, low-interest or interest-free loans, or other special incentives, then once the incentive runs its course, the company has no further requirement to stay in your location.

Update: In the National Post, Kelly McParland has some suggestions for union leaders:

1. A lot of people (the membership figures suggest it’s the vast majority) think unions are concerned solely with their own members and couldn’t give a bird’s turd for anyone or anything else, including other working stiffs, members of other unions, the fortunes of the company they work for or the customers they deal with. When you display a total lack of interest in others, they generally adopt the same attitude towards you.

[. . .]

4. Union politics might consider moving out of the stone age. The world evolves over time, but unions persist in peddling the same trite bromides as if it’s still the dawn of the industrial revolution. The “us against them” mentality; the pretense that all employers exist to exploit workers and can never be trusted; the assumption that every contract must be succeeded by an even richer one no matter the health of the industry, the economy or the company; the fealty to leftwing political parties — all are symptoms of an exhausted, outdated perspective that has barely changed since “modern technology” meant the telephone.

If unions really want to save themselves, they might take a lesson from the market economy. If no one buys what you’re selling, it’s not because they buyers aren’t bright enough. It’s because people see no value in your product.

Update, 3 February: The plant is being closed. Here’s the official announcement:

Progress Rail Services has announced that it will close Electro-Motive Canada’s (EMC) locomotive production operations in London, Ontario.

Assembly of locomotives will be shifted from the London facility to the company’s other assembly plants in North and South America, which will ensure that delivery schedules are not impacted by the closing of the London facility.

All facilities within EMC, EMD and Progress Rail Services must achieve competitive costs, quality and operating flexibility to compete and win in the global marketplace, and expectations at the London plant were no different.

The collective agreement and cost structure of the London operation did not position EMC to be flexible and cost competitive in the global marketplace, placing the plant at a competitive disadvantage. While the company’s final offer addressed those competitive disadvantages, the gulf between the company and the union was too wide to resolve and as such, market conditions dictate that the company take this step.

January 19, 2012

In spite of the large number of petitioners, recalling Wisconsin’s governor may not be a done deal

Filed under: Economics, Government, Politics, USA — Tags: , , , , — Nicholas @ 12:33

Christian Schneider in City Journal on the efforts underway in Wisconsin to recall Governor Scott Walker:

One morning last February, Wisconsin governor Scott Walker called his staff into his office. “Guys,” he warned, “it’s going to be a tough week.” Walker had recently sent a letter to state employees proposing steps — ranging from restricting collective bargaining to requiring workers to start contributing to their own pension accounts — to eliminate the state’s $3.6 billion deficit. That day in February was when Walker would announce his plan publicly.

It turned out to be a tough year. The state immediately erupted into a national spectacle, with tens of thousands of citizens, led by Wisconsin’s public-employee unions, seizing control of the capitol for weeks to protest the reforms. By early March, the crowds grew as big as 100,000, police estimated. Protesters set up encampments in the statehouse, openly drinking and engaging in drug use beneath the marble dome. Democratic state senators fled Wisconsin to prevent a vote on Walker’s plan. Eventually, the Senate did manage to pass the reforms, which survived a legal challenge and became law in July.

The unions aren’t done yet: they’re now trying to recall Walker from office. To do so, they will try to convince Wisconsin voters that Walker’s reforms have rendered the state ungovernable. But the evidence, so far, contradicts that claim—and Wisconsinites seem to realize it.

The fight between the Governor and the public unions matters more than it may seem: Wisconsin was the first state to allow civil service workers to unionize and has traditionally been seen as a strong union (and therefore also Democratic) state ever since. If unions can have some of their power trimmed back there, it will hearten the efforts of other state governments to follow suit.

January 12, 2012

Toronto Hydro takes hostages, threatens eternal darkness if demands not met

Filed under: Cancon, Politics — Tags: , , , — Nicholas @ 12:05

Ah, it must be the time of year for Toronto Hydro to lose its collective shit and start the crazy talk:

Last week, the Ontario Energy Board denied Toronto Hydro’s request for a rate hike for homes within the city limits. The hike, which would have meant a monthly increase of five dollars for a typical household, was necessary, Toronto Hydro said, to renew the city’s electrical transmission grid. Failure to do so, they warned, could result in more, and longer, blackouts.

Not so, the Energy Board ruled. They said that Toronto Hydro had not demonstrated that Toronto’s power grid needed the kind of urgent repairs that were being proposed, and also chided Toronto Hydro for failing to make necessary productivity gains, implying that the requested money was not so much about urgent repairs as needing more cash. Toronto Hydro’s response has been swift: 700 contractors have been let go, and 20% of its workforce is being told that they’re next — that’s another 350 or so jobs. Oh, and without the cash, the city is probably going to go dark.

Do these guys know how to play hardball or what?

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!

December 2, 2011

Biggest general strike since 1926 becomes a “damp squib”

Filed under: Britain, Government, History, Media — Tags: , , , , , , — Nicholas @ 08:07

Some sense the evil hand of . . . Jeremy Clarkson?

It was to be the biggest strike in a generation. People were openly and unabashedly comparing Wednesday’s day of action over public sector pensions to the general strike of 1926. It was to bring Britain to a standstill. Mark a turning point in the battle against the cuts instigated by the spawns of the evil Iron Lady. Become a talking point that would strike fear into the cold heart of Cameron and pave the way to bigger, more decisive action.

Except, erm, the very next morning it had been almost completely forgotten. It barely registered as a blip on BBC Radio 4’s flagship Today programme. Newspaper coverage was on the whole sympathetic, but slight. None of the predicted chaos came to pass. Prime minister Cameron could quite safely dismiss the strike as a ‘damp squib’ and provoke few comments except from the usual suspects. People shrugged and went back to work. Far from being a Great Event like the 1926 strike that people would draw inspiration from in 85 years time, it was barely discussed. As my colleague Brendan O’Neill had anticipated, it all felt more like a ‘loud and colourful PR stunt ultimately designed to disguise the fact that, in truth, trade unions are a sad shadow of their former selves’.

Just as the PR flames were beginning to dim, however, enter Jeremy Clarkson, the cartoonish presenter of Top Gear, who sped to the rescue with a particularly naff joke about the strikers being shot in front of their families. Of course, he didn’t actually mean it. In the context of the programme, BBC1’s The One Show, his remarks were actually more a dig at the BBC: he had in fact been praising the strikers (‘London today has just been empty. Everybody stayed at home, you can whizz about… it’s also like being back in the 70s. It makes me feel at home somehow.) but then said, as it was the Beeb, he had to provide ‘balance’, making his now notorious quip: ‘Frankly, I’d have them all shot. I would take them outside and execute them in front of their families. I mean, how dare they go on strike when they have these gilt-edged pensions that are going to be guaranteed while the rest of us have to work for a living?’

Update: James Delingpole said he’s been flooded with interview requests since the strike began, largely because of the public’s reaction to the strike:

I got my answer from a chance remark made by Jeremy Vine after our interview. He was telling me about the phone-in he’d done the day before during the public sector workers’ strike and what had astonished him was the mood of the callers. If I remember what he said correctly, one of his studio guests was a nurse on a £40,000 PA salary, with a guaranteed £30,000 pension, and this had not gone down well with the mother-of-three from Northern Ireland struggling as a finance officer in the private sector on a salary of £14,000 and no pension to speak of. The callers were very much on the side of the private sector. In fact, they were on the whole absolutely apoplectic that privileged, relatively overpaid public sector workers with their gold-plated pensions should have the gall to go out on strike when the people who pay their salaries – private sector workers – have to go on slogging their guts out regardless.

[. . .]

After all, as Fraser Nelson reports, the strike itself was a massive flop. Only a minority of union members voted it for it; the turn-out was so poor that the unions felt compelled to send out hectoring letters accusing their membership of being “scabs”; the hospitals – and many schools – stayed open, Heathrow’s immigration queues actually got shorter. This was not the glorious day of action (or inaction) that the militants had hoped for. Nor did it fit into the BBC’s ongoing narrative that Osborne’s vicious cuts (what cuts, we ask) are causing such hardship and misery among the saintly frontline public sector workers who bravely rescue our cats from trees and smilingly change our bed pans that really a Labour government run by Ed Balls is the only option.

Not only were the strikes a failure in numbers terms, though, but more damagingly they were a failure in propaganda terms. As both Fraser Nelson and Jeremy Vine have noted, there really has been a shift in public mood. I remember not more than a year ago going on Vine’s show to state, somewhat provocatively that I’d rather toss my children out on the street than have them sponging off the taxpayer in the public sector, and of course the mainly left-leaning BBC audience went apoplectic. I think if I’d gone on and said the same thing today they would probably have been demanding a statue erected in my honour in Parliament Square.

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