Main


February 3, 2012

How to Slow Down Creative Destruction



(p. 356) This catallaxy will not go smoothly, or without resistance. Natural and unnatural disasters will still happen. Governments will bail out big corporations and big bureaucracies, hand them special favours such as subsidies or carbon rations and regulate them in such a way as to create barriers to entry, slowing down creative destruction. Chiefs, priests, thieves, financiers, consultants and others will appear on all sides, feeding off the surplus (p. 357) generated by exchange and specialisation, diverting the life-blood of the catallaxy into their own reactionary lives. It happened in the past. Empires bought stability at the price of creating a parasitic court; monotheistic religions bought social cohesion at the price of a parasitic priestly class; nationalism bought power at the expense of a parasitic military; socialism bought equality at the price of a parasitic bureaucracy; capitalism bought efficiency at the price of parasitic financiers.


Source:

Ridley, Matt. The Rational Optimist: How Prosperity Evolves. New York: Harper, 2010.





January 21, 2012

"Just What Ailments Are Pylos Tablets Supposed to Alleviate?"



LinearBscript2012-01-14.jpg










"Professor Bennett's work opened a window to deciphering tablets written in Linear B, a Bronze Age Aegean script." Source of caption and photo: online version of the NYT obituary quoted and cited below.



(p. 22) Deciphering an ancient script is like cracking a secret code from the past, and the unraveling of Linear B is widely considered one of the most challenging archaeological decipherments of all time, if not the most challenging.


. . .


Linear B recorded the administrative workings of Mycenaean palatial centers on Crete and the Greek mainland 3,000 years ago: accounts of crops harvested, flocks tended, goods manufactured (including furniture, chariots and perfume), preparations for religious feasts and preparations for war.

It was deciphered at last in 1952, not by a scholar but by an obsessed amateur, a young English architect named Michael Ventris. The decipherment made him world famous before his death in an automobile accident in 1956.

As Mr. Ventris had acknowledged, he was deeply guided by Professor Bennett's work, which helped impose much-needed order on the roiling mass of strange, ancient symbols.

In his seminal monograph "The Pylos Tablets" (1951), Professor Bennett published the first definitive list of the signs of Linear B. Compiling such a list is the essential first step in deciphering any unknown script, and it is no mean feat.


. . .


"We know how much Ventris admired Bennett, because he immediately adopted Bennett's sign list of Linear B for his own work before the decipherment," said Mr. Robinson, whose book "The Man Who Deciphered Linear B" (2002) is a biography of Mr. Ventris. "He openly said, 'This is a wonderful piece of work.' "


. . .


As meticulous as Professor Bennett's work was, it once engendered great confusion. In 1951, after he sent Mr. Ventris a copy of his monograph, a grateful Ventris went to the post office to pick it up. As Mr. Robinson's biography recounts, a suspicious official, eyeing the package, asked him: "I see the contents are listed as Pylos Tablets. Now, just what ailments are pylos tablets supposed to alleviate?"



For the full obituary, see:

MARGALIT FOX. "Emmett L. Bennett Jr., Ancient Script Expert, Dies at 93." The New York Times, First Section (Sun., January 1, 2012,): 22.

(Note: ellipses added.)

(Note: the online version of the obituary is dated December 31, 2011, and has the title: "Emmett L. Bennett Jr., Expert on Ancient Script, Dies at 93.")


The book on the amateur, uncredentialed Ventris is:

Robinson, Andrew. The Man Who Deciphered Linear B: The Story of Michael Ventris. London, UK: Thames & Hudson, 2002.



BennettEmmettJr2012-01-14.jpg













"Emmett L. Bennett Jr." Source of caption and photo: online version of the NYT obituary quoted and cited above.







January 19, 2012

Branson Advises Entrepreneurs: "Think of What Frustrates You"



BransonRichardCaricature2012-01-13.jpg















Source of caricature: online version of the WSJ interview quoted and cited below.





(p. A13) Governments have long dominated space, starting with the Soviet Union's 1957 launch of Sputnik 1. The U.S. soon followed. "If they'd used just a small fraction of that money as prize money and given it to the best commercial companies, that money would've been far better spent," Mr. Branson muses. "The $10 million [Ansari] X Prize very much sparked our move into space travel," he notes, referring to the competition organized by entrepreneur Peter Diamandis and launched in 1996.

Mr. Branson had dreamed of exploring the final frontier for decades. "I think it just simply goes back to watching the moon landing on blurry black-and-white television when I was a teenager and thinking, one day I would go to the moon--and then realizing that governments are not interested in us individuals and creating products that enable us to go into space," he says. In 1995, after making billions of dollars in the music and airline businesses, Mr. Branson registered a new company, Virgin Galactic (the name "sounded good"), at London's Companies House. Then the company started searching for rocket scientists and the right technology.

Several years later, in July 2002, Virgin's team traveled to California to check on American aerospace designer Burt Rutan's progress on the Virgin Atlantic Global Flyer, a plane built "to circumnavigate the globe non-stop on a single tank of fuel," according to Virgin's website. Virgin discovered that Mr. Rutan intended to compete for the X Prize with SpaceShip One, the world's first privately developed spacecraft, financed by Microsoft co-founder Paul Allen.

Mr. Branson quickly struck a deal: Virgin would license Mr. Rutan's SpaceShip One technology from Mr. Allen if he won the competition. In 2004, Mr. Rutan did just that, and Virgin Galactic was off to the races.


. . .


So what advice does Mr. Branson have for aspiring entrepreneurs? "Think of what frustrates you--and if you're frustrated by something and you feel 'Dammit, if only people could do this better,' then go try to do it better yourself. It can start off in a really small way . . . and you'll be surprised: If you're doing it better yourself, in whatever field it is, you'll be filling a gap and you suddenly might start creating a business."



For the full interview, see:

MARY KISSEL. "THE WEEKEND INTERVIEW with Richard Branson; Space: The Next Business Frontier; By next Christmas the airline mogul could be ferrying paying customers outside the atmosphere--and, later, to the bottom of the ocean." The Wall Street Journal (Sat., December 17, 2011): A13.

(Note: ellipsis added.)





January 13, 2012

Indian Middle Class: "The State Is Preventing Me from Doing What I Want to Do"



NagParthoIndianEntrepreneur2011-11-14.jpg"Partho Nag, a childhood friend of Shubhrangshu Roy's who lives in the same New Delhi suburb. Mr. Nag, who runs an IT service company out of his home, joined Mr. Roy and other friends as they volunteered at the Hazare protests. "We've been told since our childhoods, 'Politics is bad, don't get into politics,'" Mr. Nag said. "But the point is that somebody has to clean it up. We can't just scold people."" Source of caption and photo: online version of the NYT article quoted and cited below.


(p. 1) DWARKA, India -- Shubhrangshu Barman Roy and his childhood friends are among the winners in India's economic rise. They have earned graduate degrees, started small companies and settled into India's expanding middle class. They sometimes take vacations together and meet for dinners or parties, maybe to celebrate a new baby or a new business deal.

Yet in August, Mr. Roy and his friends donned white Gandhi caps, boarded a Metro train in this fast-growing suburb of the Indian capital and rode into New Delhi like a band of revolutionaries to join the large anticorruption demonstrations led by the rural activist Anna Hazare. They waved Indian flags, distributed water to the crowds and vented their outrage at India's political status quo.

"I could feel that people really wanted change," Mr. Roy, 36, recalled proudly.

It may seem unlikely that middle-class Indians would crave change. They mostly live in rapidly growing cities and can afford cars, appliances and other conveniences that remain beyond the reach of most Indians. Theirs is the fastest growing demographic group in the country, and their buying power is expected to triple in the next 15 years, making India one of the most important consumer markets in the world.

But buying power is not political power, at least not yet in India. The wealthier India has become, the more politically disillusioned many of the beneficiaries have grown -- an Indian paradox. The middle class has vast economic clout yet often remains politically marginalized in a huge democracy where the rural masses still dominate the outcome of elections and the tycoon class has the ear of politicians.


. . .


(p. 10) "This middle class is less about 'what the state can do for me' than 'the state is preventing me from doing what I want to do,' " said Devesh Kapur, director of the Center for the Advanced Study of India at the University of Pennsylvania.

The Hazare movement rattled India's political establishment because it offered a glimpse of what could happen if the middle class was mobilized across the country. Professionals and college students provided the organizational spine, and money, that brought hundreds of thousands of people of all backgrounds onto the streets in what many described as a political awakening.


. . .


Mr. Roy and his friends, including Mr. Nag, had grown up in New Delhi in the same government housing development. They were all the sons of government bureaucrats who would later offer similar advice: Get a government job.

"He always insisted," Mr. Nag recalled of his father's prodding. "But we had an idea that a government job was too lousy."

They were teenagers in the early 1990s when Indian leaders embarked on the reforms that began dismantling the stifling licensing regulations that had choked the economy. Private enterprise, large and small, would steadily emerge as the engine of Indian growth and the delivery vehicle of growing aspirations. Mr. Nag would open a small IT service firm. Two other friends would start a textile trading company. Mr. Roy would earn graduate degrees and start a consulting firm.


. . .


On a recent afternoon, Mr. Roy pointed to a crude asphalt scar in the road where workers had installed an underground water connection. The scar extended along the road toward Mr. Roy's house, only to abruptly turn left in the direction of another building.

"You see this?" he asked, angrily. "This is a connection that comes here, but it is illegal."

For Mr. Roy, the scar in the street marks the corruption and collusion and the failure of the state to deliver on its end of India's social contract. His family is supposed to get water from a legal connection for $4 a month. Except that water is unusable. For years, his father had paid a fee to fill large jugs from a private water tanker -- until his father slipped while carrying one of them.

Mr. Roy then spent about $1,000 to build an underground water storage tank beside his home. Now, every week a tanker delivers a $30 shipment of water into the tank, while Mr. Roy also buys bottled water for drinking, bringing his monthly bill to about $160. Mr. Roy suspects that local officials, rather than correcting the situation, allow it to continue in exchange for kickbacks from the owners of the private water tankers. In the end, though, he pays.

These tales of petty graft proliferate across India, but especially in cities, analysts say, for the simple reason that cities now have more money.

McKinsey Global Institute, a consulting group, has estimated that India's middle class could grow to nearly 600 million people by 2030. Today, nearly three-quarters of India's gross domestic product comes from cities, where less than a third of India's population lives, an imbalance that correlates with the divide between middle-class economic and political power.

"For politicians, the city has primarily become a site of extraction, and the countryside is predominantly a site of legitimacy and power," Ashutosh Varshney, an India specialist at Brown University, wrote recently. "The countryside is where the vote is; the city is where the money is. Villages do have corruption, but the scale of corruption is vastly greater in cities."



For the full story, see:

JIM YARDLEY. "INDIA'S WAY; Protests Help Awaken a Goliath in India." The New York Times, First Section (Sun., October 30, 2011): 1 & 10.

(Note: ellipses added.)

(Note: the online version of the article is dated October 29, 2011 and has the title "INDIA'S WAY; Protests Awaken a Goliath in India.")





January 9, 2012

Pedro de Verona Rodrigues Pires Wins Ibrahim Prize for Achievement in African Leadership



PiresPedroDeVeronaRodrigues2011-11-14.jpg














"Pedro de Verona Rodrigues Pires" Source of caption and photo: online version of the NYT article quoted and cited below.



(p. A10) MONROVIA, Liberia -- Pedro de Verona Rodrigues Pires, the former president of Cape Verde, the desertlike archipelago about 300 miles off the coast of West Africa, has won one of the world's major prizes, the $5 million Ibrahim Prize for Achievement in African Leadership.

The record of governing in Africa has been poor enough lately that the Mo Ibrahim Foundation decided not to award the prize for the past two years. In many African countries, leaders have refused to leave office after losing elections, tried to alter constitutions to ensure their continued tenure or gone back on pledges not to run for re-election.


. . .


Mr. Pires served two terms -- 10 years -- as president until stepping down last month. During that period, the foundation noted, Cape Verde became only the second African nation to move up from the United Nations' "least developed" category. The foundation says the prize is given only to a democratically elected president who has stayed "within the limits set by the country's constitution, has left office in the last three years and has demonstrated excellence in office."



For the full story, see:

ADAM NOSSITER. "Ex-President of Cape Verde Wins Good-Government Prize." The New York Times (Tues., October 11, 2011): A10.

(Note: ellipsis added.)

(Note: the online version of the article is dated October 10, 2011.)





January 7, 2012

Few Banks Give S.B.A. Loans, They Take Two Years, and Have "Absolutely No Flexibility"



BlumenthalNeilEntrepreneur2011-11-14.jpg"Neil Blumenthal, one of the founders of Warby Parker, an online eyewear company, was invited to Washington in an initiative to encourage companies owned by members of the millennial generation." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. B7) Mr. Blumenthal, 31, one of the founders of Warby Parker, an online eyewear company that sells designer frames for less than $100, was among 150 young chief executives invited to Washington by Our Time, a youth advocacy group, . . .


. . .


The following is a condensed version of a recent conversation in which Mr. Blumenthal spoke, among other things, about what politicians don't understand about business, . . .


. . .


Q. What was it like trying to get an S.B.A. loan?

A. Finding a bank that did S.B.A.-term loans was a challenge. We were surprised that they needed two years and that banks had absolutely no flexibility. Many of the loan officers said we had a reputable business that was cash-flow positive and we had the most sophisticated business plan they'd ever seen, but they can't provide loans to people who don't have two years of tax returns.

Q. Isn't that a reasonable request when you're talking about using taxpayer dollars to guarantee a loan to a private company?

A. I understand where the banks are coming from. It probably was necessary to implement hard and fast rules to stop the bleeding when the crisis hit, but they should be looking at the policies and thinking: Does this make sense now?

Q. Was the application process difficult?

A. We had to sign so many documents that my hand hurt after I was done. I had to pledge not to open a zoo, swimming pool or aquarium. It struck me as strange. Yes, it's the bank's duty to do due diligence, but this was just a silly restriction.

Q. But there was a happy ending, right?

A. Yes, after being turned down by 15 banks, it was a personal relationship that introduced us to a regional bank in New Jersey that gave us a $200,000 loan.

Q. What reasons did the 15 banks give for turning you down?

A. They didn't have the authority to bypass the rule that you have to have two years of tax returns.

Q. Was your company profitable at the time?

A. Yes, we were profitable and we had a ton of traction. We had higher customer satisfaction scores than Zappos or Apple. A rational bank should have wanted to support us, even though we were a more risky bet than a company that had been around longer.

Q. What did the bank that lent you money do differently? Did it demand collateral?

A. We came through a personal relationship at a very high level at a regional bank in New Jersey that didn't have the draconian guidelines because their management was empowered to make decisions. For the $200,000 S.B.A.-backed loan that we got, the bank wanted $100,000 in collateral in either cash or marketable products. The reason they wanted so much collateral was that if we default, the regional bank is not going to go through the process of getting the money from the S.B.A. because it's so onerous.


. . .


Q. Are you involved in the political process?

A. We have never met with politicians. I don't know the first thing about how to get heard. My suspicion is that it's to donate a lot of money.


. . .


Q. What do you make of the economic turmoil we've been experiencing?

A. It highlights that it might be too much to ask Washington to help with entrepreneurship when they can't even get the basics right, like maintaining a decent credit rating.



For more of the conversation, see:

HANNAH SELIGSON. "SMALL BUSINESS; Young Entrepreneur Sees Little Help In Washington." The Wall Street Journal (Thurs., August 18, 2011): C12.

(Note: ellipses added.)

(Note: the online version of the article is dated August 17, 2011.)





January 2, 2012

The Kauffman Foundation's Startup Act Would Encourage Entrepreneurs




The WSJ tells us the credentials of the authors of the following advice: "Mr. Muller is CEO of GenOn Energy. Mr. Zimpleman is president and CEO of the Principal Financial Group."



(p. A15) In our view, there is no hope of giving consumers renewed confidence in America unless governments at all levels mount a vigorous effort to get rid of rules that discourage entrepreneurs from launching and growing new businesses.

The Kauffman Foundation recently proposed a way to do that with a set of ideas aptly called the Startup Act. Those ideas, which would cost the government virtually nothing, include:

• Letting in immigrant entrepreneurs who hire American workers.

• Reducing the cost of capital through capital gains tax relief for early stage investments.

• Reducing barriers to IPOs by allowing shareholders to opt out of Sarbanes-Oxley.

• Charging higher fees for patent applicants who want quick decisions to remove the backlog of applications at the Patent Office.

• Giving licensing freedom to academic entrepreneurs at universities to accelerate the commercialization of their ideas.

• Having the government provide data to permit rankings of startup friendliness of states and localities.

• Regular sunsets for regulations and a consistent policy of putting new ones in place only if their benefits exceed their costs.



For the full commentary, see:

EDWARD R. MULLER and LARRY ZIMPLEMAN. "OPINION; An Entrepreneurial Fix for the U.S. Economy; Several reforms can make it faster and easier for new business startups.." The Wall Street Journal (Mon., AUGUST 29, 2011): A15.






December 31, 2011

Federal Subsidies Create Few Green Jobs



(p. F2) . . . solar power, which makes extensive use of robots in fabricating the cells, and has no moving parts to service once it is up and running, may be an odd choice for job creation.

"It's just not that labor-intensive," said Howard Axelrod, an engineer and economist. And as for the jobs it creates, there may be a price elsewhere, Dr. Axelrod said.


. . .


Build enough solar plants and some coal plants will shut down; that would amount to firing Peter to hire Paul.


. . .


And, economists point out, some of the work that renewable energy creates goes to people who already have jobs -- roofers who install the panels or truck drivers who move them around, or steel workers who make towers for new wind machines.

Some of the jobs could eventually go elsewhere. Two years ago, Evergreen Solar, which got $58 million in aid from Massachusetts for a factory in Devens, said it would shift production to China instead.


. . .


The debate is part of a larger discussion of what constitutes a "green" job. In October 2009, Congress gave the Bureau of Labor Statistics a special appropriation to count them.


. . .


"Driving a bus is driving a bus, right?" said Connie Mack, Republican of Florida. Hilda Solis, the secretary of labor, said they were "green buses." But aides later clarified that the bureau counted any bus driving job as green because it preserved natural resources.

None of this suggests that green is bad, just that it is not particularly job-heavy. In December 2010, Susan Combs, the comptroller of Texas, reported that school districts in her state were giving tax abatements to lure new jobs, but had to give $1.6 million for every wind energy job. Manufacturing jobs could be created for $166,000 each.



For the full story, see:

MATTHEW L. WALD. "Solar Power Industry Falls Short of Hopes in Job Creation." The New York Times (Weds., October 26, 2011): F2.

(Note: ellipses added.)

(Note: the online version of the article has the date October 25, 2011.)





December 29, 2011

The Case Against Fluoridating Public Water Supplies



(p. A18) Last week, Pinellas County, on Florida's west coast, voted to stop adding fluoride to its public water supply after starting the program seven years ago. The county joins about 200 jurisdictions from Georgia to Alaska that have chosen to end the practice in the last four years, motivated both by tight budgets and by skepticism about its benefits.

Eleven small cities or towns have opted out of fluoridating their water this year, including Fairbanks, Alaska, which acted after much deliberation and a comprehensive evaluation by a panel of scientists, doctors and dentists. The panel concluded that in Fairbanks, which has relatively high concentrations of naturally occurring fluoride, the extra dose no longer provided the help it once did and may, in fact, be harmful.


. . .


The movement to stop fluoridating water has gained traction, in large part, because the government has recently cautioned the public about excessive fluoride. A report released late last year by the Centers for Disease Control and Prevention linked fluoride to an increase among children in dental fluorosis, which causes white or yellow spots on teeth. About 40 percent of children ages 12 to 15 had dental fluorosis, mostly very mild or mild cases, from 1999 to 2004. That percentage was 22.6 in a 1986-87 study.

Fluorosis is mostly a cosmetic problem that can sometimes be bleached away. But critics argue that spotted teeth are a warning that other bones in the body may be absorbing too much fluoride. Excessive fluoride can lead to increases in bone fractures in adults as well as pain and tenderness.

"Teeth are the window to the bones," said Paul Connett, a retired professor of environmental chemistry and the director of the Fluoride Action Network, which advocates an end to fluoridated water.

Experts say that one possible factor in this increase may be that fluoridated water is consumed in vegetables and fruit, and juice and other beverages as well as tap water. And the consumption of beverages continues to increase.


. . .


The conclusion among these communities is that with fluoride now so widely available in toothpaste and mouthwash, there is less need to add it to water, which already has naturally occurring fluoride. Putting it in tap water, they say, is an imprecise way of distributing fluoride; how much fluoride a person gets depends on body weight and water consumed.

Doctors, scientists and dentists, including Dr. Bailey of the Public Health Service, mostly agree that fluoride works best when applied topically, directly to the teeth, as happens with brushing.

"The fact that no one really knows what dosage a given person receives from fluoridated water makes the subject of benefits and harms very difficult to quantify," said Rainer Newberry, a professor of geochemistry at University of Alaska, Fairbanks, who sat on the committee that studied the issue prior to the June vote in Fairbanks. "And this presumably explains the number of studies with diverging conclusions."



For the full story, see:

LIZETTE ALVAREZ. "Looking to Save Money, More Places Decide to Stop Fluoridating the Water." The New York Times (Fri., October 14, 2011): A18.

(Note: ellipses added.)

(Note: the online version of the article is dated October 13, 2011.)






December 23, 2011

When a Graph Is a Matter of Life and Death



(p. 72) In her authoritative book The Challenger Launch Decision, sociologist Diane Vaughan demolishes the myth that NASA managers ignored unassailable data and launched a mission absolutely known to be unsafe. In fact, the conversations on the evening before launch reflected the confusion and shifting views of the participants. At one point, a NASA manager blurted, "My God, Thiokol, when do you want me to launch, next April?" But at another point on the same evening, NASA managers expressed reservations about the launch; a lead NASA engineer pleaded with his people not to let him make a mistake and stated, "I will not agree to launch against the contractor's recommendation." The deliberations lasted for nearly three hours. If the data had been clear, would they have needed a three-hour discussion? Data analyst extraordinaire Edward Tufte shows in his book Visual Explanations that if the engineers had plotted the data points in a compelling graphic, they might have seen a clear trend line: every launch below 66 degrees showed evidence of (p. 73) O-ring damage. But no one laid out the data in a clear and convincing visual manner, and the trend toward increased danger in colder temperatures remained obscured throughout the late-night teleconference debate. Summing up, the O-Ring Task Force chair noted, "We just didn't have enough conclusive data to convince anyone."


Source:

Collins, Jim. How the Mighty Fall: And Why Some Companies Never Give In. New York: HarperCollins Publishers, Inc., 2009.

(Note: italics in original.)






December 22, 2011

Feds Increase Seizure of Property from Those Who Have Not Been Convicted of a Crime



CaswellMotelOwner2011-11-10.jpg"Mr. Caswell, here in the motel's lobby, is not accused of any wrongdoing but stands to lose his business under a law that calls for the forfeiture of properties linked to crimes." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. A1) TEWKSBURY, Mass.--The $57-a-night Motel Caswell, magnet for hard-luck cases, police patrol cars and the occasional drug deal, is the unlikely prize in a high-stakes tug-of-war between conservative legal activists and the government.

The motel's owner, spurred by a recent Supreme Court decision, is trying to convince a federal court that the Constitution bars the U.S. Department of Justice from seizing his property, where guests have been found guilty of drug offenses. The owner, Russell Caswell, isn't accused of any wrongdoing. But he stands to lose his business nonetheless under a law that calls for the forfeiture of properties linked to

Mr. Caswell's federal court case challenges the U.S. government's ballooning asset-forfeiture system that in more than 15,000 cases last year confiscated cash, cars, boats and real estate valued at $2.5 billion. While many asset forfeitures are tied to convictions, the federal government can seize properties stained by crime even if owners face no charges.

"People shouldn't lose their property if they haven't been convicted of any crime," said Scott Bullock, a lawyer for the Institute for Justice, a libertarian public-interest law firm in Arlington, Va., that has joined in the motel's defense. "Mr. Caswell hasn't even been accused."

(p. A14) Civil rights groups, libertarians and attorneys defending against seizures say the government is overstepping its bounds in a practice that has swelled in the past decade to encompass some 400 federal statutes, covering crimes from drug trafficking to racketeering to halibut poaching.



For the full story, see:

JOHN R. EMSHWILLER, GARY FIELDS and JENNIFER LEVITZ. "Motel Is Latest Stopover in Federal Forfeiture Battle." The Wall Street Journal (Tues., OCTOBER 18, 2011): A1 & A14.






December 4, 2011

In Greece's Bloated Bureaucracy "It's All about Who You Know"



GreekGovernmentWorkerProtest2011-11-10.jpg "Police officers, firefighters and coast guard officers protested austerity measures in Athens on Monday." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A5) ATHENS -- Stories of eye-popping waste and abuse of power among Greece's bureaucrats are legion, including officials who hire their wives, and managers who submit $38,000 bills for office curtains.

The work force in Greece's Parliament is so bloated, according to a local press investigation, that some employees do not even bother to come to work because there are not enough places for all of them to sit.


. . .


Some experts believe that Greece could reap significant savings by reducing its bureaucracy, which employs one out of five workers in the country and by some estimates could be trimmed by as much as a third without materially affecting services. But though salaries have been cut, the government has yet to lay off anyone.

The main reason is also one of the very reasons that Greece got into trouble in the first place: The government is in many ways an army of patronage appointments built up over decades. When election time rolls around, state workers become campaign workers, and their reach is enormous. There are so many of them that almost every family has one.


. . .


Whether the right workers will be laid off remains an open question. "A lot of people in the government are terrified," Mr. Hlepas said. "They don't think any of those people over in Parliament are going to go. They think the ones that do the work will get cut."

Thomas Tsamatsoulis, 41, who works for the Greek equivalent of the Federal Aviation Administration, said he found himself on an early list headed for the reserve pool, though he had been sent to the United States for electronics training and now has a skill that is rare in his agency. At the same time, Mr. Tsamatsoulis said, the agency, which has just two airplanes, has more than 15 pilots.

"You want to believe the government will do this right," he said. "But it is very difficult. It's not how it has worked in the past. It's all about who you know."

Greece's bureaucracy has been growing steadily since democracy was reinstated in 1974, with each new administration adding its supporters to the payroll -- and wages rising steeply in the past decade, experts say.

"There was really a party going on," said Yannis Stournaras, an economist and the director of the Foundation for Economic and Industrial Research in Athens. "The government kept adding bonuses and benefits and pensions. At election time there was a boom cycle as they handed out jobs."

"Now they need to cut," he added. "But they have already lost precious time."

Stories of excesses abound. Mr. Papandreou told Parliament that one of his ministers found a predecessor's $38,000 bill for curtains when the Socialists returned to power in 2009. Mr. Mossialos said he found that his own ministry, for media and communication, was spending $750,000 a year for office space for just 11 people.

But some experts question whether the culture of bloat and favoritism will ever be conquered.



For the full story, see:

SUZANNE DALEY. "Bureaucracy in Greece Defies Efforts to Cut It." The Wall Street Journal (Tues., October 18, 2011): A2.

(Note: ellipses added.)

(Note: the online version of the article is dated October 17, 2011.)






December 1, 2011

Justice for He Who Taxed Unjustly



(p. 444) At the height of the agricultural crisis, the British government under the Liberals did an odd thing. It invented a tax designed to punish a class of people who were already suffering severely and had done nothing in particular to cause the current troubles. The class was large landowners. The tax was death duties. Life was about to change utterly for thousands of people, including our own Mr Marsham.

The designer of the new tax was Sir William George Granville Venables Vernon Harcourt, the chancellor of the exchequer, a man who seems not to have been liked much by anyone at any point in his life, including his own family. Known familiarly, if not altogether affectionately, as 'Jumbo' because of his magnificent rotundity, Harcourt was an unlikely persecutor of the landed classes since he was one of them himself. The Harcourt family home was Nuneham Park in Oxfordshire, which we have visited in this book already. Nuneham, you may remember, was where an earlier Harcourt reconfigured the estate but failed to recollect where the old village well had been, fell into it and drowned. For as long as there had been (p. 445) Tories, the Harcourts had numbered themselves among them, so William's joining of the Liberals was seen within his family as the darkest treachery. Even Liberals were startled by his tax. Lord Rosebery, the prime minister (who was himself a big landowner), wondered if some relief should at least be granted in those cases where two inheritors died in quick succession. It would be harsh, Rosebery thought, to tax an estate a second time before the legatee had had a chance to rebuild the family finances. Harcourt, however, refused all appeals for concessions.

That Harcourt stood almost no chance of inheriting his own family property no doubt coloured his principles. In fact, to his presumed surprise, he did inherit it when his elder brother's son died suddenly, but heirlessly, in the spring of 1904. Harcourt didn't get to enjoy his good fortune long, however. He expired six months later himself, which meant that his heirs were among the first to be taxed twice over in exactly the way that Rosebery had feared and he had dismissed. Life doesn't often get much neater than that.




Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





November 30, 2011

Venezuelans Flee Chávez's Socialism



VenezuelanHomicide2011-11-10.jpg"Street crime, such as a man's killing in Caracas last year, is high." Note the big-brother-sized image of Chávez surveying what his socialism has wrought. Source of quoted part of caption and photo: online version of the WSJ article quoted and cited below.



Those who favor socialism should observe Venezuela carefully and ponder whether they like what they see.



(p. A13) Gerardo Urdaneta moved to Houston from Venezuela for a job in 1998, the same year Hugo Chávez was first elected president. Mr. Urdaneta, an energy-shipping specialist, planned for a temporary stop and wouldn't even buy a house.

Thirteen years later, Mr. Chávez is still in power, Mr. Urdaneta is still here. He has been joined by thousands of other Venezuelans, and Houston shops now stock native delicacies like Pampero aged rum and guayanés cheese.

"There are Venezuelans everywhere," Mr. Urdaneta, 50 years old, said. "Before we were passing through. That's not the case anymore."

Waves of white-collar Venezuelans have fled the country's high crime rates, soaring inflation and expanding statist controls, for destinations ranging from Canada to Qatar. The top U.S. destinations are Miami, a traditional shopping mecca for Venezuelans, and Houston, which has long-standing energy ties to Venezuela, a major oil exporter.

There were some 215,000 Venezuelans in the U.S. in 2010, up from about 91,500 in 2000, according to the U.S. Census Bureau. The number of Venezuelans living in Spain has quintupled in the same period to more than 40,000, and the number of Venezuelan-born Spaniards has more than doubled to 90,000.



For the full story, see:

ÁNGEL GONZÁLEZ and EZEQUIEL MINAYA. "Venezuelan Diaspora Booms Under Chávez." The Wall Street Journal (Mon., October 17, 2011): A13.

(Note: ellipsis added.)

(Note: the following phrase, at the end of the quoted portion above, is in the online, but not the print, version of the article: "and the number of Venezuelan-born Spaniards has more than doubled to 90,000."



ZulianStafanoHoustonChocolateShop2011-11-10.jpg "Venezuelan exile Stefano Zullian owns a Houston chocolate shop." Source of caption and photo: online version of the WSJ article quoted and cited above.



VenezuelanHomicideEmigrationGraph2011-11-10.jpgSource of graph: online version of the WSJ article quoted and cited above.






November 24, 2011

"What Happens in America Is Defined by Tort Lawyers"



JungleGymRelic2011-11-09.jpg "CHILDHOOD RELIC; Jungle gyms, like this one in Riverside Park in Manhattan, have disappeared from most American playgrounds in recent decades." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. D3) "There is no clear evidence that playground safety measures have lowered the average risk on playgrounds," said David Ball, a professor of risk management at Middlesex University in London. He noted that the risk of some injuries, like long fractures of the arm, actually increased after the introduction of softer surfaces on playgrounds in Britain and Australia.

"This sounds counterintuitive, but it shouldn't, because it is a common phenomenon," Dr. Ball said. "If children and parents believe they are in an environment which is safer than it actually is, they will take more risks. An argument against softer surfacing is that children think it is safe, but because they don't understand its properties, they overrate its performance."

Reducing the height of playground equipment may help toddlers, but it can produce unintended consequences among bigger children. "Older children are discouraged from taking healthy exercise on playgrounds because they have been designed with the safety of the very young in mind," Dr. Ball said. "Therefore, they may play in more dangerous places, or not at all."

Fear of litigation led New York City officials to remove seesaws, merry-go-rounds and the ropes that young Tarzans used to swing from one platform to another. Letting children swing on tires became taboo because of fears that the heavy swings could bang into a child.

"What happens in America is defined by tort lawyers, and unfortunately that limits some of the adventure playgrounds," said Adrian Benepe, the current parks commissioner.



For the full story, see:

JOHN TIERNEY. "FINDINGS; Grasping Risk in Life's Classroom." The New York Times (Tues., July 19, 2011): D1 & D3.

(Note: the online version of the article is dated July 18, 2011, and has the title "FINDINGS; Can a Playground Be Too Safe?.")





November 11, 2011

Unable to Compete with Cotton "European Textile Workers Bayed for Protection"



(p. 390) Cotton is such a commonplace material now that we forget that it was once extremely precious - more valuable than silk. But then in the seventeenth century, the East India Company began importing calicoes from India (from the city of Calicut, from which they take their name), and suddenly cotton became affordable. Calico was then essentially a collective term for chintzes, muslins, percales and other colourful fabrics, which caused unimaginable delight among western consumers because they were light and washable and the colours didn't run. Although some cotton was grown in Egypt, India dominated the cotton trade, as we are reminded by the endless numbers of words that came into English by way of that trade: khaki, dungarees, gingham, muslin, pyjamas, shawl, seersucker, and so on.

The sudden surge of Indian cotton pleased consumers, but not (p. 391) manufacturers. Unable to compete with this wonder fabric, European textile workers bayed for protection almost everywhere, and almost everywhere they received it. The importation of finished cotton fabrics was banned in much of Europe throughout the eighteenth century.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: italics in original.)





November 7, 2011

The Penalty for Insulting the Future King



(p. 390) Brummell's fall from grace was abrupt and irreversible. He and the Prince of Wales had a falling out and ceased speaking. At a social occasion, the prince pointedly ignored Brummell and instead spoke to his companion. As the prince withdrew, Brummell turned to the companion and made one of the most famously ill-advised remarks in social history. 'Who's your fat friend?' he asked. Such an insult was social suicide. Shortly afterwards Brummell's debts caught up with him and he fled to France. He spent the last two and a half decades of his life living in poverty, mostly in Calais, growing slowly demented but always looking, in his restrained and careful way, sensational.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





November 3, 2011

Wigmakers Petitioned King "to Make Wig-Wearing by Males Compulsory"



(p. 384) . . . , pretty abruptly, wigs went out of fashion. Wigmakers, in desperation, petitioned George III to make wig-wearing by males compulsory, but the king declined. By the early 1800s nobody wanted them and old wigs were commonly used as dust mops. Today they survive only in certain courtrooms in Britain and the Commonwealth. Judicial wigs these days are made of horsehair and cost about £600,

I'm told. To avoid a look of newness - which many lawyers fear might suggest inexperience - new wigs are customarily soaked in tea to give them a suitable air of age.




Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

(Note: ellipsis added.)





November 2, 2011

Reagan Fought "Tyranny" of Big Government



London-statue-of-Reagan-2011-08-10.jpg


















Former Secretary of State Condolezza Rice, British Foreign Secretary William Hague and London statue of Ronald Reagan. Source of photo: http://static.guim.co.uk/sys-images/Guardian/Pix/pictures/2011/7/4/1309780763409/London-statue-of-Reagan-u-001.jpg



The McCarthy mentioned in the passage quoted below is a California representative who also serves as majority whip.


(p. A9) The statue of a smiling Reagan, dressed in a crisp suit, was paid for by the Ronald Reagan Presidential Foundation as part of a worldwide effort to promote his legacy, according to the organization's executive director.


. . .


Though Mrs. Thatcher is in poor health and did not attend, she provided a statement that was read by Mr. Hague. "Through his strength and conviction," she wrote, "he brought millions of people to freedom as the Iron Curtain finally came down."

In a speech, Mr. McCarthy described Mr. Reagan's fight not only against the forces of Communism, but against the "tyranny" of debt and big government. He and Mrs. Thatcher, he said, "did not move to the center to gather votes, they moved the center to them."



For the full story, see:

RAVI SOMAIYA. "Finding a New Perch, Americana Takes a Stand in London." The New York Times (Tues., July 5, 2011): A9.

(Note: ellipsis added.)

(Note: the online version of the article is dated July 4, 2011 and has the title "Statue of Reagan Is Unveiled in London.")





October 29, 2011

Statute of Caps "Required People to Wear Caps Instead of Hats"



(p. 381) Sumptuary laws were enacted partly to keep people within their class, but partly also for the good of domestic industries, since they were often designed to depress the importation of foreign materials. For the same reason for a time there was a Statute of Caps, aimed at helping national capmakers through a depression, which required people to wear caps instead of hats. For obscure reasons, Puritans resented the law and were often fined for flouting it. But on the whole sumptuary laws weren't much enforced. Various clothing restrictions were enshrined in (p. 382) statutes in 1337, 1363, 1463, 1483, 1510, 1533 and 1554, but records show they were never much enforced. They were repealed altogether in 1604.


Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





October 23, 2011

Obama Regulations Are "Choking Off Innovation"



From 2007 to 2010 Nina V. Fedoroff was the science and technology adviser to Secretary of State Hilary Clinton in the Obama administration. Fedoroff is currently a Professor of Biology at Penn State. The passages quoted below are from her courageous commentary in The New York Times op-ed section:



(p. A21) . . . even as the Obama administration says it wants to stimulate innovation by eliminating unnecessary regulations, the Environmental Protection Agency wants to require even more data on genetically modified crops, which have been improved using technology with great promise and a track record of safety. The process for approving these crops has become so costly and burdensome that it is choking off innovation.

Civilization depends on our expanding ability to produce food efficiently, which has markedly accelerated thanks to science and technology. The use of chemicals for fertilization and for pest and disease control, the induction of beneficial mutations in plants with chemicals or radiation to improve yields, and the mechanization of agriculture have all increased the amount of food that can be grown on each acre of land by as much as 10 times in the last 100 years.

These extraordinary increases must be doubled by 2050 if we are to continue to feed an expanding population. . . .


. . .


Myths about the dire effects of genetically modified foods on health and the environment abound, but they have not held up to scientific scrutiny. And, although many concerns have been expressed about the potential for unexpected consequences, the unexpected effects that have been observed so far have been benign. Contamination by carcinogenic fungal toxins, for example, is as much as 90 percent lower in insect-resistant genetically modified corn than in nonmodified corn. This is because the fungi that make the toxins follow insects boring into the plants. No insect holes, no fungi, no toxins.


. . .


Only big companies can muster the money necessary to navigate the regulatory thicket woven by the government's three oversight agencies: the E.P.A., the Department of Agriculture and the Food and Drug Administration.


. . .


. . . the evidence is in. These crop modification methods are not dangerous. The European Union has spent more than $425 million studying the safety of genetically modified crops over the past 25 years. Its recent, lengthy report on the matter can be summarized in one sentence: Crop modification by molecular methods is no more dangerous than crop modification by other methods. Serious scientific bodies that have analyzed the issue, including the National Academy of Sciences and the British Royal Society, have come to the same conclusion.



For the full commentary, see:

NINA V. FEDOROFF. "Engineering Food for All." The New York Times (Fri., August 19, 2011): A21.

(Note: ellipses added.)

(Note: the online version of the commentary was dated August 18, 2011.)







October 18, 2011

"It's Our Right to Choose What We Want to Put in Our Bodies"



FoodSovereigntySign2011-08-06.jpg "Protesters outside the Los Angeles Courthouse on Thursday denounced the police's moves against Rawesome, which offers raw milk products." Source of caption and photo: online version of the NYT article quoted and cited below.


LOS ANGELES -- Raw food enthusiasts fit right in here, in the earthy, health-conscious beach communities of Venice and Santa Monica, along with the farmers' markets, health food stores and vegan restaurants.

But this week, the police cleared the shelves of Rawesome, an establishment in Venice Beach, loading $70,000 of raw, organic produce and dairy products on the back of a flatbed truck.

And then, on Thursday, James Stewart, the proprietor, was arraigned on charges of illegally making, improperly labeling and illegally selling raw milk products, as well as other charges related to Rawesome's operations. Two farmers who work with Rawesome were also named in the district attorney's complaint.


. . .


The raid on Rawesome has riled people here who say that unpasteurized milk is safer and healthier. About 150 raw food advocates gathered at the Los Angeles County Courthouse on Thursday to oppose the crackdown.

"It's our right to choose what we want to put in our bodies," Ms. Buttery said. "When members filled out an application, they were saying they wanted natural bacteria in their systems. We don't want labeling. We don't want animals full of antibiotics."



For the full story, see:

IAN LOVETT. "Raw Food Co-op Is Raided in California." The New York Times (Fri., August 5, 2011): A11.

(Note: ellipsis added.)

(Note: the online version of the story is dated August 4, 2011.)





October 12, 2011

If Truman Had Not Used the Bomb, Hundreds of Thousands More American Soldiers Would Have Died



MostControversialDecisionBK2011-08-10.jpg












Source of book image: online version of the WSJ review quoted and cited below.






(p. A15) . . . , the author reminds us of the hundreds of thousands of Japanese who had died in the conventional bombings of places like Tokyo and Kyoto while Roosevelt was president, but with relatively little opprobrium attaching to FDR. Father Miscamble cites as well the horrific massacre of innocents for which the Japanese were responsible, a savagery still being unleashed in the summer of 1945, and the awful cost of battle in the Pacific, including 6,000 American dead and 20,000 wounded at Iwo Jima and 70,000 casualties suffered while capturing Okinawa. With these precedents, Herbert Hoover warned Truman that an invasion of the Japanese home islands could result in the loss of between half a million and a million American lives. Marshall, Leahy and Gen. Douglas MacArthur each had his own projected figures, none of them wildly different from Hoover's.

Under these circumstances, it was inconceivable that Truman would not have ordered the use of a potentially war-winning weapon the moment it could be deployed. It is impossible to imagine the depth of the public's fury if after the war Americans had discovered that their president, out of concern for his own conscience, had not used the weapons but instead condemned hundreds of thousands of American soldiers to certain death on the beaches and in the cities of mainland Japan.



For the full review, see:

ANNE JOLIS. "BOOKSHELF; In Defense Of 'Little Boy'; Herbert Hoover warned President Truman that invading Japan would cost at least half a million American lives." The Wall Street Journal (Weds., July 13, 2011): A15.

(Note: ellipsis added.)


Book reviewed:

Miscamble, Wilson D. The Most Controversial Decision: Truman, the Atomic Bombs, and the Defeat of Japan, Cambridge Essential Histories. New York: Cambridge University Press, 2011.






October 10, 2011

In Greece "Entrepreneurial Activity Was Denigrated"



CoustasDanaosGreekShippiingEntrep2011-08-10.jpg











John Coustas. Source of image: online version of the WSJ article quoted and cited below.







(p. A15) Athens

If you've ever wondered why so many Greeks succeed in shipping, John Coustas has a plausible theory: "Greek shipping has nothing to do with the Greek state."

His firm, Danaos Corporation, is a case in point. Mr. Coustas took over the company, which owns container ships, from his father in 1987 and has since transformed it from a three-vessel outfit into the third-largest company of its kind in the world, with a fleet of 56 ships. Danaos is incorporated in the Marshall Islands, a popular and stable jurisdiction for the global industry, and handles many of its operations through its German, Ukrainian, Russian and Tanzanian offices.

Nevertheless, Mr. Coustas is deeply concerned with the fate of his country. The government is now on the brink of default after passing its latest round of spending cuts and tax hikes. Yet the biggest risk to Greece, he says, is brain drain, that "all the good people, who really have something to offer, are either leaving or seriously considering it."


. . .


On top of misguided government spending, Mr. Coustas says entrepreneurial activity was denigrated for many years and profit was regarded as "wrong." "Anyone who wanted to make an investment here was considered a kind of bloodsucker."



For the full commentary, see:

ANNE JOLIS. "Greece: Where Profit Is Taboo; A shipping magnate on the fate of his country." The Wall Street Journal (Weds., July 13, 2011): A15.

(Note: ellipsis added.)





October 3, 2011

"Coolidge Helped Americans Prosper by Letting Them Be Free"



(p. A15) Ronald Reagan, who grew up during the Coolidge presidency, admired "Silent Cal," even going so far as to read a biography of the 30th president as he recovered from a surgery in 1985 and to praise him in letters to his constituents. To Reagan, Coolidge wasn't silent, but was silenced by New Deal supporters, whose intellectual heirs control much of Washington today.


. . .


Unlike President Obama, President Coolidge didn't want to "spread the wealth around," but to grow it. He didn't call for "shared sacrifice"--Americans had sacrificed enough during the great war--but for good character.

There "is no surer road to destruction than prosperity without character," he said in a speech at the University of Pennsylvania in 1921. And from the White House lawn in 1924 he said, "I want the people of America to be able to work less for the Government and more for themselves. I want them to have the rewards of their own industry. That is the chief meaning of freedom."


. . .


As Coolidge saw things in 1924, "A government which lays taxes on the people not required by urgent public necessity and sound public policy is not a protector of liberty, but an instrument of tyranny. It condemns the citizen to servitude." Coolidge helped Americans prosper by letting them be free.



For the full commentary, see:

CHARLES C. JOHNSON. "How Silent Cal Beat a Recession; The late president inherited a bad economy, and he cut taxes and slashed spending to spur growth." The Wall Street Journal (Thurs., August 4, 2011): A15.

(Note: ellipses added.)





September 29, 2011

McKinsey Finds 30% of Employers Will Drop Health Coverage in Response to Obamacare



McKinsey is probably the best known business consulting and forecasting firm in the United States. Many well-known management gurus, and corporate executives, have spent time working for McKinsey (as did Chelsea Clinton). One of their senior partners (Foster) co-authored a useful book called Creative Destruction.


(p. A2) A report by McKinsey & Co. has found that 30% of employers are likely to stop offering workers health insurance after the bulk of the Obama administration's health overhaul takes effect in 2014.


. . .


Previous research has suggested the number of employers who opt to drop coverage altogether in 2014 would be minimal.

But the McKinsey study predicts a more dramatic shift from employer-sponsored health plans once the new marketplace takes effect. Starting in 2014, all but the smallest employers will be required to provide insurance or pay a fine, while most Americans will have to carry coverage or pay a different fine. Lower earners will get subsidies to help them pay for plans.

In surveying 1,300 employers earlier this year, McKinsey found that 30% said they would "definitely or probably" stop offering employer coverage in the years after 2014. That figure increased to more than 50% among employers with a high awareness of the overhaul law.



For the full story, see:

JANET ADAMY. "Study Sees Cuts to Health Plans." The Wall Street Journal (Weds., JUNE 8, 2011): A15.

(Note: ellipsis added.)


The Foster book is:

Foster, Richard N., and Sarah Kaplan. Creative Destruction: Why Companies That Are Built to Last Underperform the Market---and How to Successfully Transform Them. New York: Currency Books, 2001.






September 26, 2011

Solyndra Debacle Illustrates Why Feds Should Not Pick Tech Winners



The clip above is embedded from the Jon Stewart "The Daily Show" episode that was aired on Thurs., September 15, 2011.



Government "industrial policy" is likely to fail for many reasons. One is that the government decision makers are unlikely to know which future technologies will turn out to be the best ones. Another reason is that even if they know, government decision makers often decide based on what is politically expedient or what is beneficial to their friends.

Solyndra is a case in point, as Jon Stewart hilariously reveals.






September 24, 2011

Chinese Boom Financed by Government Debt and "Clever Accounting"



EmptyLotForWuhanTower2011-08-08.jpg "An empty lot in Wuhan, China, where developers intend to build a tower taller than the Empire State Building in New York." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A1) . . . the Wuhan Metro is only one piece of a $120 billion municipal master plan that includes two new airport terminals, a new financial district, a cultural district and a riverfront promenade with an office tower half again as high as the Empire State Building.


. . .


The plans for Wuhan, a provincial capital about 425 miles west of Shanghai, might seem extravagant. But they are not unusual. Dozens of other Chinese cities are racing to complete infrastructure projects just as expensive and ambitious, or more (p. A8) so, as they play their roles in this nation's celebrated economic miracle.

In the last few years, cities' efforts have helped government infrastructure and real estate spending surpass foreign trade as the biggest contributor to China's growth. Subways and skyscrapers, in other words, are replacing exports of furniture and iPhones as the symbols of this nation's prowess.

But there are growing signs that China's long-running economic boom could be undermined by these building binges, which are financed through heavy borrowing by local governments and clever accounting that masks the true size of the debt.

The danger, experts say, is that China's municipal governments could already be sitting on huge mountains of hidden debt -- a lurking liability that threatens to stunt the nation's economic growth for years or even decades to come. Just last week China's national auditor, who reports to the cabinet, warned of the perils of local government borrowing. And on Tuesday the Beijing office of Moody's Investors Service issued a report saying the national auditor might have understated Chinese banks' actual risks from loans to local governments.

Because Chinese growth has been one of the few steady engines in the global economy in recent years, any significant slowdown in this country would have international repercussions.



For the full story, see:

DAVID BARBOZA. "Building Boom in China Stirs Fears of Debt Overload." The New York Times (Thurs., July 7, 2011): C8.

(Note: online version of the article is dated July 6, 2011 and has the title "Building Boom in China Stirs Fears of Debt Overload.")

(Note: ellipses added.)





September 23, 2011

Navigation Acts, Were "Insanely Inefficient, but Gratifyingly Lucrative to British Merchants and Manufacturers"




(p. 297) Many of Monticello's quirks spring from the limitations of Jefferson's workmen. He had to stick to a simple Doric style for the exterior columns because he could find no one with the skills to handle anything more complex. But the greatest problem of all, in terms of both expense and frustration, was a lack of home-grown materials. It is worth taking a minute to consider what the American colonists were up against in trying to build a civilization in a land without infrastructure.

(p. 298) Britain's philosophy of empire was that America should provide it with raw materials at a fair price and take finished products in return. The system was enshrined in a series of laws known as the Navigation Acts, which stipulated that any product bound for the New World had either to originate in Britain or pass through it on the way there, even if it had been created in, say, the West Indies, and ended up making a pointless double crossing of the Atlantic. The arrangement was insanely inefficient, but gratifyingly lucrative to British merchants and manufacturers, who essentially had a fast-growing continent at their commercial mercy. By the eve of the revolution America effectively was Britain's export market. It took 80 per cent of British linen exports, 76 per cent of exported nails, 60 per cent of wrought iron and nearly half of all the glass sold abroad. In bulk terms, America annually imported 30,000 pounds of silk, 11,000 pounds of salt and over 130,000 beaver hats, among much else. Many of these things - not least the beaver hats - were made from materials that originated in America in the first place and could easily have been manufactured in American factories - a point that did not escape the Americans.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





September 22, 2011

Deregulation Revived Railroads



RailroadMogulsCartoon2011-08-08.jpg
















"ALL ABOARD: The Wasp magazine in 1881 lampooned railroad moguls as having regulators in the palms of their hands." Source of caricature: online version of the WSJ article quoted and cited below.




(p. C8) Mr. Klein has written thoroughly researched and scrupulously objective biographies of the previously much maligned Jay Gould and E.H. Harriman, remaking their public images by presenting them in full. Now he has published the third and final volume of his magisterial history of the Union Pacific railroad, taking the company from 1969 to the present day.

Union Pacific--the only one of the transcontinentals to remain in business under its original name--is now a flourishing business. Thanks to a series of mergers, it is one of the largest railroads in the world, with more than 37,000 miles of track across most of the American West. Thanks to its investment in new technology, it is also among the most efficient.

In 1969, though, the future of American railroading was in doubt as the industry struggled against competition from airplanes, automobiles and trucks--all of which were in effect heavily subsidized through the government's support for airports and the Interstate Highway System.

Another major factor in the decline of the railroads had been the stultifying hand of the Interstate Commerce Commission. The ICC had come into existence in the late 19th century to limit the often high-handed ways of the railroads as they wrestled with the difficult economics of an industry that has very high fixed costs. ( . . . .) But the ICC soon evolved into a cartel mechanism that discouraged innovation and wrapped the railroad industry in a cocoon of stultifying rules.

Mr. Klein notes that in 1975 he wrote a gloomy article about the sad state of an industry with a colorful past: "Unlike many other historical romances," he wrote back then, "the ending did not promise to be a happy one."

Fortunately, a deregulation movement that began under the Carter administration--yes, the Carter administration--limited the power of the ICC and then abolished it altogether. As Mr. Klein shows in the well-written "Union Pacific," the reduction of government interference left capitalism to work its magic and produce--with the help of dedicated and skillful management--the modern, efficient and profitable railroad that is the Union Pacific.



For the full review, see:

JOHN STEELE GORDON. "Tracks Across America." The Wall Street Journal (Sat., JUNE 11, 2011): C8.

(Note: ellipsis added.)


Book reviewed in the part of the review quoted above:

Klein, Maury. Union Pacific: The Reconfiguration: America's Greatest Railroad from 1969 to the Present. New York: Oxford University Press, USA, 2011.






September 21, 2011

Coralville Police Close 4-Year-Old Abigail's Lemonade Stand



(p. 2B) CORALVILLE -- Police closed down a lemonade stand in Coralville, telling its 4-year-old operator and her dad that she didn't have a permit.


. . .


Abigail's dad, Dustin Krutsinger, said the ordinance and its enforcers are going too far if they force a 4-year-old to abandon her lemonade stand.



For the full story, see:

AP. "Coralville shuts down girl's lemonade stand." Omaha World-Herald [Iowa Edition] (Weds., August 3, 2011): 2B.

(Note: ellipsis added.)

(Note: the online version of the article is dated August 2, 2011 and has the title "Girl's lemonade stand shut down.")



The next day, the Iowa Edition of the Omaha World-Herald ran an update:


(p. 2B) CORALVILLE -- Four-year-old Abigail Krutsinger wasn't the only lemonade stand operator who was closed down when RAGBRAI bicyclists poured into Coralville last week.

At least three stands run by children were closed down because they hadn't obtained permits and health inspections.



For the full story, see:

AP. "Coralville defends closing kids' stands." Omaha World-Herald [Iowa Edition] (Thurs., August 4, 2011): 2B.

(Note: the online version of the article is dated August 3, 2011, and has the title "More lemonade stands shuttered.")






September 18, 2011

"Unless the Federal Government Takes It All Away"



BoeingSouthCarolinaPlant2011-08-08.jpg "Wayne Gravot, right, and Jeff Sparwasser at the new plant in North Charleston, S.C." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A1) NORTH CHARLESTON, S.C. -- Boeing's gigantic new $750 million airplane factory here is the pride of South Carolina, the biggest single investment ever made in a state that is far more associated with old-line textile mills than state-of-the-art manufacturing. In just a few weeks, 1,000 workers will begin assembling the first of what they hope will be hundreds of 787 Dreamliners.

That is, unless the federal government takes it all away.

In a case that has enraged South Carolinians and become a cause célèbre among Republican lawmakers and presidential hopefuls, the National Labor Relations Board has accused Boeing of illegally setting up shop in South Carolina because of past strikes by the unionized workers at its main manufacturing base in the Seattle area. The board is asking a judge to order Boeing to move the Dreamliner production -- and the associated jobs -- to Washington State.



For the full story, see:

STEVEN GREENHOUSE. "Boeing Labor Dispute Is Making New Factory a Political Football." The New York Times (Fri., July 1, 2011): A10.

(Note: ellipsis added.)

(Note: the online version of the story is dated June 30, 2011.)







September 14, 2011

Arrested for Feeding Homeless Without a Permit



ArrestFeedingWithoutPermit2011-08-08.jpg "Volunteers from Food Not Bombs were arrested at Lake Eola Park in Orlando, Fla., last month after feeding homeless people without a permit." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A10) MIAMI -- The hacker group Anonymous has declared a cyberwar against the City of Orlando, disabling Web sites for the city's leading redevelopment organization, the local Fraternal Order of Police and the mayor's re-election campaign.


. . .


The group described its attacks as punishment for the city's recent practice of arresting members of Orlando Food Not Bombs, an antipoverty group that provides vegan and vegetarian meals twice a week to homeless people in one of the city's largest parks.

"Anonymous believes that people have the right to organize, that people have the right to give to the less fortunate and that people have the right to commit acts of kindness and compassion," the group's members said in a news release and video posted on YouTube on Thursday. "However, it appears the police and your lawmakers of Orlando do not."

A 2006 city ordinance requires organizations to obtain permits to feed groups of 25 people or more in downtown parks. The law was passed after numerous complaints by residents and businesses owners about the twice-weekly feedings in Lake Eola Park, city officials said. The law limits any group to no more than two permits per year per park.

Since June 1, the city police have arrested 25 Orlando Food Not Bombs volunteers without permits as they provided meals to large groups of homeless people in the park. One of those arrested last week on trespassing charges was Keith McHenry, a co-founder of the first Food Not Bombs chapter in 1980 in Cambridge, Mass. He remained in the Orange County Jail on Thursday awaiting a bond hearing.



For the full story, see:

DON VAN NATTA Jr. "Citing Homeless Law, Hackers Turn Sights on Orlando." The New York Times, SundayBusiness Section (Fri., July 1, 2011): A10.

(Note: ellipsis added.)

(Note: the online version of the story is dated June 30, 2011.)



McHenryKeithCofounder2011-08-08.jpg "Keith McHenry, a co-founder of the first Food Not Bombs group, serving food at the park in May. He was in jail Thursday." Source of caption and photo: online version of the NYT article quoted and cited above.





September 2, 2011

China's "Orwellian Surveillance System"



BeijingWebCafe2011-08-07.jpg "A customer in a Beijing cafe not yet affected by new regulations surfed the Web on Monday." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A4) BEIJING -- New regulations that require bars, restaurants, hotels and bookstores to install costly Web monitoring software are prompting many businesses to cut Internet access and sending a chill through the capital's game-playing, Web-grazing literati who have come to expect free Wi-Fi with their lattes and green tea.

The software, which costs businesses about $3,100, provides public security officials the identities of those logging on to the wireless service of a restaurant, cafe or private school and monitors their Web activity. Those who ignore the regulation and provide unfettered access face a $2,300 fine and the possible revocation of their business license.


. . .


The new measures, it would appear, are designed to eliminate a loophole in "Internet management" as it is called, one that has allowed laptop- and iPad-owning college students and expatriates, as well as the hip and the underemployed, to while away their days at cafes and lounges surfing the Web in relative anonymity. It is this demographic that has been at the forefront of the microblogging juggernaut, one that has revolutionized how Chinese exchange information in ways that occasionally frighten officials.


. . .


One bookstore owner said she had already disconnected the shop's free Wi-Fi, and not for monetary reasons. "I refuse to be part of an Orwellian surveillance system that forces my customers to disclose their identity to a government that wants to monitor how they use the Internet," said the woman, who feared that disclosing her name or that of her shop would bring unwanted attention from the authorities.



For the full story, see:

ANDREW JACOBS. "China Steps Up Web Monitoring, Driving Many Wi-Fi Users Away." The New York Times (Tues., July 26, 2011): A4.

(Note: ellipses added.)

(Note: the online version of the story is dated July 25, 2011.)





August 31, 2011

The Victimless Crime of Selling Rice Wine



IllegalRiceWine2011-08-07.jpg "Illegal rice wine for sale in Chinatown. The wine is popular among immigrants from Fujian Province." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A22) The restaurant looks like so many others in the roiling heart of Chinatown, in Lower Manhattan: a garish sign in Chinese and English, slapdash photos of featured dishes taped to the windows, and extended Chinese families crowding around tables, digging into communal plates of steamed fish, fried tofu and sautéed watercress.

But ask a waitress the right question and she will disappear into the back, returning with shot glasses and something not on the menu: a suspiciously unmarked plastic container containing a reddish liquid.

It is homemade rice wine -- "Chinatown's best," the restaurant owner asserts. It is also illegal.

In the city's Chinese enclaves, there is a booming black market for homemade rice wine, representing one of the more curious outbreaks of bootlegging in the city since Prohibition. The growth reflects a stark change in the longstanding pattern of immigration from China.

In recent years, as immigration from the coastal province of Fujian has surged, the Fujianese population has come to dominate the Chinatowns of Lower Manhattan and Sunset Park, Brooklyn, and has increased rapidly in other Chinese enclaves like the one in Flushing, Queens.

These newcomers have brought with them a robust tradition of making -- and hawking -- homemade rice wine. In these Fujianese neighborhoods, right under the noses of the authorities, restaurateurs brew rice wine in their kitchens and sell it proudly to customers. Vendors openly sell it on street corners, and quart-size containers of it are stacked in plain view in grocery store refrigerators, alongside other delicacies like jellyfish and duck eggs.

The sale of homemade rice wine -- which is typically between 10 and 18 percent alcohol, about the same as wine from grapes -- violates a host of local, state and federal laws that govern the commercial production and sale of alcohol, but the authorities have apparently not cracked down on it.



For the full story, see:

KIRK SEMPLE and JEFFREY E. SINGER. "Illegal Sale of Rice Wine Thrives in Chinese Enclaves." The New York Times (Weds., July 20, 2011): A22-A23.

(Note: the online version of the story is dated July 19, 2011.)






August 28, 2011

Strong Economic Growth Benefits Workers



(p. A13) Workers do well only when the economy grows at a healthy and consistent pace. The biggest threat to long-term economic growth is government growth of the magnitude that characterized the past two years and that is forecast for our future.

Our current problems are not a result of acts of nature. They stem from policy choices that dramatically increased the size of the government. In the past two years, the federal budget has grown by a whopping 16%.


. . .


. . . , the price of the stimulus is what appears to be a permanent increase in the size of government that will continue to slow economic growth. Most economists believe that high debt and high taxes each contributes to slow economic growth, which hurts workers both in the short and long run.



For the full commentary, see:

EDWARD P. LAZEAR. "OPINION; How Big Government Hurts the Average Joe; Job growth is very closely linked to GDP growth. If the economy is not growing, then jobs aren't being added." The Wall Street Journal (Fri., August 5, 2011): A13.

(Note: ellipses added.)






August 23, 2011

"A Colossal Investment Project, Born of the State, Steeped in Corruption"



CandlesChinaHighSpeedTrainCrash2011-08-06.jpg"Online critics have scornfully contrasted the difference between government rhetoric about the promise of high-speed rail and the reality of the troubled network. Local residents mourned victims of the train crash in Wenzhou on July 26." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. C1) China's high-speed rail system is an apt metaphor for the country's hurtling economy over the past decade: a colossal investment project, born of the state, steeped in corruption, built for maximum velocity, and imposed paternalistically on a public that is at once amazed and skeptical. The rail system has married foreign technology with national ambition in a network billed as the biggest and most advanced in the world, in a country whose per capita income ranks below that of Jamaica.


For the full commentary, see:

JASON DEAN And JEREMY PAGE. "Trouble on the China Express; The wreck of a high-speed train has enraged the Chinese public and focused attention on the corruption and corner-cutting behind the country's breakneck economic growth." The Wall Street Journal (Sat., JULY 30, 2011): C1-C2.






August 21, 2011

Jon Stewart Skewers Media Bias Against Libertarian Ron Paul







The hilarious (but also seriously sad) clip above is embedded from the Mon., August 15, 2011 "The Daily Show with Jon Stewart."

(Note: I thank Deirdre McCloskey for letting me know about the clip.)





August 20, 2011

Cougar Dies in Connecticut Three Months AFTER Government Declares It Extinct



(p. A19) Boulder, Colo.

You have to admit, the cat had moxie.

The 140-pound cougar that was spotted last month among the estates of Greenwich -- and was later struck and killed on the Wilbur Cross Parkway -- has been the talk of southern Connecticut. New England, along with most of the Eastern United States, hasn't been cougar country since the 19th century, when the animals were exterminated by a killing campaign that started in colonial times. So where had this cougar come from?

Now we know the answer, and it couldn't be more astonishing. Wildlife officials, who at first assumed the cat was a captive animal that had escaped its owners, examined its DNA and concluded that it was a wild cougar from the Black Hills of South Dakota. It had wandered at least 1,500 miles before meeting its end at the front of an S.U.V. in Connecticut. That is one impressive walkabout.

You have to appreciate this cat's sense of irony, too. The cougar showed up in the East just three months after the Fish and Wildlife Service declared the eastern cougar extinct, a move that would exempt the officially nonexistent subspecies of the big cat from federal protection. Perhaps this red-state cougar traveled east to send a message to Washington: the federal government can make pronouncements about where cougars are not supposed to be found, but a cat's going to go where a cat wants to go.



For the full commentary, see:

DAVID BARON "The Cougar Behind Your Trash Can." The New York Times (Fri., July 29, 2011): A19.

(Note: the online version of the commentary is dated July 28, 2011.)






August 16, 2011

Chinese Government High-Speed Trains Are Financial "Black Holes"



(p. A11) BEIJING-A high-speed train from Beijing is scheduled to glide into Shanghai's Hongqiao railway station on Thursday after its inaugural run, an event meant to showcase China's technological prowess but one that lately has become part of a national debate about the pitfalls of megainvestment projects.


. . .


Detractors focus on corruption and safety problems that have lately tarnished the project's image. Pricey tickets, they say, underscore China's already huge rich-poor gap--and doom the trains to run half-empty, straining the national budget for years to come.


. . .


"Physically, they are good assets," says Ding Yuan, an accounting professor at China Europe International Business School in Shanghai. "Financially, they are all black holes."

More broadly, the high-speed rail problems underscore the shortcomings of a growth strategy that depends ever more heavily on investment in projects whose economic payoffs are uncertain.


. . .


Railways Minister Liu Zhijun proselytized for high-speed rail, telling leaders from Hubei province in January that they needed to "seize the rare opportunity to accelerate the development of the railway," according to a Railways Ministry report.


. . .


Government spending on rail projects ballooned from 155 billion yuan in 2006 ($24 billion) to a budgeted 745 billion yuan ($115 billion) in 2011, according to state-run Xinhua news agency. The ministry's debt ballooned to about 5% of GDP in the first quarter of 2011 from about 2% in 2007.

The project's flaws became painfully clear in February, when Mr. Liu was fired amid allegations that he embezzled around $30 million. Although government investigators didn't cite criticisms of the railway project, Mr. Liu's successor, Sheng Guangzu, has scaled back plans to focus on projects already under construction, rather than expansion. Railway consultants say work has been suspended on new lines, including Hubei projects the fired minister was pushing.



For the full story, see:

BRIAN SPEGELE and BOB DAVIS. "High-Speed Train Links Beijing, Shanghai; Cornerstone of China's Rail Expansion Illustrates Megaprojects' Speed Bumps." The Wall Street Journal (Weds., JUNE 29, 2011): A11.

(Note: ellipses added.)





August 11, 2011

"The Government Wants to Decide What We Eat"



PuddingBannedDenmark2011-07-19.jpg "A rule against selling food with added vitamins and minerals, like canned pudding, prompted the removal of several popular products from Abigail's, a shop in Copenhagen." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A6) COPENHAGEN -- For the last seven years, Marianne Orum has owned a narrow store in a charming street in the heart of this Danish capital.

A sign advertises "British and South African Food and Drink."

The shelves are lined with products familiar to most Americans, like Betty Crocker Pancake Mix, but also more exotic items, like Heinz's Taste of Home Delightful Spotted Dick Pudding in cans, and bottles of Harviestoun Old Engine Oil porter.

But in January Ms. Orum got a phone call from government food inspectors. Tipped off by a competitor, they told her she was selling products that were fortified with vitamins or minerals, and such products require government approval, which she did not have, so she would have to take them off the shelves.

The culprits were Ovaltine; a shredded wheat cereal called Shreddies; a malt drink called Horlicks; and Marmite, the curiously popular yeast byproduct that functions in England as a sandwich spread, snack or base for a soup (just add boiling water), and is sometimes known as tar-in-the-jar.

"That's four products in one go," said Ms. Orum, clearly angered. "That's a lot for a small company."

Application for approval, she said, costs almost $1,700 per product, and time for approval can run up to six months or more; the fee is not refunded if the product is rejected.

"It's a strange thing, this attitude in Denmark," she said, in a tone of exasperation. "The government wants to decide what we eat and not."



For the full story, see:

JOHN TAGLIABUE. "COPENHAGEN JOURNAL; Extra Vitamins? A Great Idea, Except in Denmark." The New York Times (Fri., June 17, 2011): A6.

(Note: the online version of the story was dated June 16, 2011.)






August 9, 2011

Fannie Mae Execs "Resorted to Ad Hominem Attacks" When They Vilified the "Economic Pencil Brains"



RecklessEndangermentBK.jpg













Source of book image: online version of the NYT review quoted and cited below.






(p. C6) Although the financial crisis of 2008 has left a long trail of casualties, one group has benefited from the cataclysm: financial journalists. Several have already published books shedding light on the unprecedented events that caused investment banks to fail, global stock markets to plummet and borrowers to lose their homes. "Reckless Endangerment," by Gretchen Morgenson, assistant business and financial editor and a columnist at The New York Times, and the financial analyst Joshua Rosner, is a worthy addition to the genre.


. . .


The book begins in 1994 with President Bill Clinton's kicking off a public-private partnership to extend homeownership to more Americans. . . .


. . .


. . . the institution to which the authors devote the most ink is Fannie Mae, the government-supported enterprise created in 1938 to make home loans more accessible. And the person they hold most accountable is someone whose role in the "mortgage maelstrom" has until now "escaped scrutiny": James A. Johnson, Fannie Mae's chief executive from 1991 to 1998. Mr. Johnson was the "anonymous architect of the public-private homeownership drive that almost destroyed the economy in 2008," the authors assert. "He was especially adept at manipulating lawmakers, eviscerating regulators and leaving taxpayers with the bill."

The description of Mr. Johnson's role is damning -- and although the account lacks his perspective, it is thoroughly supported through scores of interviews with academics, government officials and industry executives, some of whom are granted anonymity. While Mr. Johnson didn't respond to interview requests over five months, according to the authors, they overcome this obstacle with impressive use of public records and secondary sources, carefully attributed in the text or described in a two-page "Notes on Sources."


. . .


A particular strength of this book is the number of doubters the authors unearthed: the unsung government analysts, public lawyers and private researchers who dared to question policy decisions and stand up to the formidable "housers," as the true believers in government subsidies for home ownership are called.

The reader has a sickening sense of missed opportunity as these prophets are ignored or, worse, vilified, by those in a position to halt the mania. When a Congressional Budget Office researcher in 1995 reveals the multibillion-dollar extent of the government's subsidy to Fannie Mae and its brother institution, Freddie Mac (and that one-third of these benefits never reached borrowers), he suggests that "Congress may want to revisit the special relationship." Unable to assail the merits of his analysis, outraged Fannie Mae executives resorted to ad hominem attacks, calling budget office officials "digit-heads" and "economic pencil brains."



For the full review, see:

PAM LUECKE. "BOOKS OF THE TIMES; Nation Goes on Its Merry Way to Ruin." The New York Times (Tues., June 28, 2011): C6.

(Note: the online version of the review was dated June 27, 2011.)

(Note: ellipses added.)


Book being reviewed:

Morgenson, Gretchen, and Joshua Rosner. Reckless Endangerment: How Outsized Ambition, Greed, and Corruption Led to Economic Armageddon. New York: Times Books, 2011.






July 31, 2011

Findings "Strongly Suggest" Cholera in Haiti Due to United Nations



(p. 5A) PORT-AU-PRINCE, Haiti (AP) -- Scientists have presented the strongest evidence yet that U.N. peacekeepers imported the chol­era strain that has killed more than 5,500 people in Haiti.

A report published in the July issue of the Emerging Infectious Diseases journal says research findings "strongly suggest" that the U.N. contingent from Nepal contaminated a Haitian river because of poor sanitation at a base. Author Renaud Piarroux had previously blamed peace­keepers. This study is more com­plete and its methodology was reviewed by other scientists.



Source:

AP. "U.N. may have brought cholera strain to Haiti." Omaha World-Herald (Thursday, June 30, 2011): 5A.





July 26, 2011

Technology as an Enabler of Free Speech



InternetJalalabad2011-07-16.jpg "Volunteers have built a wireless Internet around Jalalabad, Afghanistan, from off-the-shelf electronics and ordinary materials." Source of caption and photo: online version of the NYT article quoted and cited below.


The main point of the passages quoted below is to illustrate how, with the right technology, we can dance around tyrants in order to enable human freedom.

(But as a minor aside, note in the large, top-of-front-page photo above, that Apple once again is visibly the instrument of human betterment---somewhere, before turning to his next challenge, one imagines a fleeting smile on the face of entrepreneur Steve Jobs.)


(p. 1) The Obama administration is leading a global effort to deploy "shadow" Internet and mobile phone systems that dissidents can use to undermine repressive governments that seek to silence them by censoring or shutting down telecommunications networks.

The effort includes secretive projects to create independent cellphone networks inside foreign countries, as well as one operation out of a spy novel in a fifth-floor shop on L Street in Washington, where a group of young entrepreneurs who look as if they could be in a garage band are fitting deceptively innocent-looking hardware into a prototype "Internet in a suitcase."

Financed with a $2 million State Department grant, the suitcase could be secreted across a border and quickly set up to allow wireless communication over a wide area with a link to the global Internet.



For the full story, see:

JAMES GLANZ and JOHN MARKOFF. "U.S. Underwrites Internet Detour Around Censors." The New York Times, First Section (Sun., June 12, 2011): 1 & 8.



InternetDetourGraphic2011-07-16.jpg















Source of graphic: online version of the NYT article quoted and cited above.







July 24, 2011

Bricks-and-Mortar Restaurants Use Police (Instead of Better Food) to Beat Food Trucks



KimImaAndKennyLaoFoodTruck2011-07-16.jpg "Kim Ima and Kenny Lao parked their food trucks on Front Street in Dumbo." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. D4) FOOD trucks, those rolling symbols of New York City's infatuation with haute casual food, are suddenly being chased from Midtown Manhattan. In the last 10 days, the Treats Truck, which has sold cookies and brownies for four years during lunchtime at West 45th Street near Avenue of the Americas, has been told by police officers that it is no longer welcome there, nor at its late-afternoon 38th Street and Fifth Avenue location. The Rickshaw Dumpling truck, a presence for three years at West 45th Street near the Treats Truck, has been shooed away as well.

The police "have told us they no longer want food trucks in Midtown," said Kim Ima, the owner of the Treats Truck, a pioneer of the city's new-wave food-truck movement, who began cultivating customers on West 45th Street in 2007.


. . .


Mr. Lao and other food-truck operators said they suspect that the police are responding to complaints by brick-and-mortar businesses that resent competition. Such was the case last year, when store merchants on the Upper East Side complained about Patty's Taco Truck, which sold tortas, tacos de lengua and cemitas on Lexington Avenue. The truck was towed several times and the operator arrested, prompting the Street Vendor Project, an advocate for vendors based at the Urban Justice Center, to file the lawsuit that resulted in Judge Wright's ruling, which said food is merchandise that can be regulated.



For the full story, see:

GLENN COLLINS. "Food Trucks Shooed From Midtown." The New York Times (Weds., June 29, 2011): D4.

(Note: ellipsis added.)

(Note: the online version of the story is dated June 28, 2011.)






July 23, 2011

$130,000 Federal Stimulus Used by Omaha Public Schools for Manual Attacking American Institutions



(p. 1A) The Omaha Public Schools used more than $130,000 in federal stimulus dollars to buy each teacher, administrator and staff member a manual on how to become more culturally sensitive.

The book by Virginia education consultants could raise some eyebrows with its viewpoints.

The authors assert that American government and institutions create advantages that "channel wealth and power to white people," that color-blindness will not end racism and that educators should "take action for social justice."

The book says that teachers should acknowledge historical systemic oppression in schools, including racism, sexism, homophobia and "ableism," defined by the authors as discrimination or prejudice against people with disabilities.

The authors argue that public school teachers must raise their cultural awareness to better serve minority students and improve academic achievement.



For the full story, see:

Joe Dejka. "OPS Says It Won't Go totally by the Book." Omaha World-Herald (Sunday, July 10, 2011): 1A & 2A.

(Note: the online version of the article has the title "OPS buys 8,000 diversity manuals.")





July 19, 2011

Feds Protect Us from "Older Tasty Tomato Varieties"



(p. C3) Historically, when a farmer has learned to grow a tasty variety, that farmer has actually been scorned and prevented from shipping it.

"Regulations actually prohibit growers in the southern part of Florida from exporting many of the older tasty tomato varieties because their coloration and shape don't conform to what the all-powerful Florida Tomato Committee says a tomato should look like," Mr. Estabrook writes.



For the full review, see:

DWIGHT GARNER. "BOOKS OF THE TIMES; That Perfect Florida Tomato, Cultivated for Bland Uniformity." The New York Times (Weds., July 6, 2011): C3.

(Note: the online version of the review is dated July 5, 2011.)



The web site of the Florida Tomato Committee describes its Federal mandate:

The Florida Tomato Committee is a Federal Marketing Order that was established pursuant to Federal Marketing Agreement and Order No. 966 as amended regulating the handling of tomatoes and has authority over the tomatoes grown in Florida's production area comprising the counties of Pinellas, Hillsborough, Polk, Osceola, Brevard and all counties situated south. It affects tomatoes that are shipped outside the regulated area, which includes that portion of the state of Florida situated east of the Suwanee River and south of the Georgia border.

The Committee funds research and development projects and marketing promotions that focus on maximizing Florida tomato movement, including consumer and marketing research and customized marketing programs.

Florida Tomatoes ... quality you can trust. Each Florida field-grown tomato shipped out of Florida is regulated by a Federal Marketing Order that controls grade, size, quality and maturity. The standards are the toughest in the world and ensure that Florida tomatoes are the best you can buy.



Source:

http://www.floridatomatoes.org/AboutUs.aspx

(Note: ellipsis in original.)


The book under review is:

Estabrook, Barry. Tomatoland: How Modern Industrial Agriculture Destroyed Our Most Alluring Fruit. Kansas City, Missouri: Andrews McMeel Publishing, 2011.





July 14, 2011

Katrina Was Less a Natural Disaster, and More an Artificial One Caused by Government



ShearerHarry2011-06-05.jpg

"Harry Shearer in the documentary "The Big Uneasy."" Source of caption and photo: online version of the NYT article quoted and cited below.


(p. B6) . . . Mr. Shearer is serious about his reasons for adding to a Katrina genre that includes two documentaries by Spike Lee ("When the Levees Broke: A Requiem in Four Acts" and "If God Is Willing and Da Creek Don't Rise"), another about custody battles over pets lost in the storm ("Mine"), and Werner Herzog's reinterpretation of "Bad Lieutenant" ("Bad Lieutenant: Port of Call New Orleans").

"What they are missing is why it happened, why people suffered," said Mr. Shearer, who spoke last week from his home in New Orleans.

At one-day screenings in about 160 theaters around the country on Monday, "The Big Uneasy" will fill in the blanks with a feature-length description of what it sees as failings by the Army Corps of Engineers and others.

Mr. Shearer said he was inspired to make the film last year, after hearing President Obama refer to the hurricane as a "natural disaster." Mr. Shearer argues there was nothing natural about the breakdown of systems that were supposed to protect the city.



For the full story, see:

MICHAEL CIEPLY. "Katrina Film Takes Aim at Army Corps of Engineers." The New York Times (Mon., August 30, 2010): B6.

(Note: ellipsis added.)

(Note: the online version of the story is dated August 29, 2010.)





July 3, 2011

Italian "Legal System Barely Functions"



(p. B4) The Italy that Mr. Severgnini describes seethes with frustration. Government works poorly. The legal system barely functions. Too many Italians are crowded into too little space. Fear of failure stymies innovation. Mr. Severgnini is dismayed at the national genius for enjoyment and the Italian inability to plan for the future. "Our sun is setting in installments," he writes. "It's festive and flamboyant, but it's still a sunset."


For the full review, see:

WILLIAM GRIMES. "BOOKS OF THE TIMES; An Insider Explains Italy, Land of Cheery Dysfunction." The New York Times (Weds., August 23, 2006): B1 & B4.


Book under review:

Severgnini, Beppe. La Bella Figura; a Field Guide to the Italian Mind. Translated by Giles Watson. pb ed. New York: Broadway Books, 2006.






June 27, 2011

"A Tax on Air and Light"



(p. 11) Paxton was very lucky in his timing, for just at the moment of the Great Exhibition glass suddenly became available in a way it never had before. Glass had always been a tricky material. It was not particularly easy to make, and really hard to make well, which is why for so much of its history it was a luxury Item. Happily, two recent technological breakthroughs had changed that. First, the French invented plate glass--so called because the molten glass was spread across tables known as plates. This allowed for the first time the creation of really large panes of glass, which made shop windows possible. Plate glass, however, had to be cooled for ten days after being rolled out, which meant that each table was unproductively occupied most of the time, and then each sheet required a lot of grinding and polishing. This naturally made it expensive. In 1838, a cheaper refinement was developed--sheet glass. This had most of the virtues of plate glass, but ¡t cooled faster and needed less polishing, and so could be made much more cheaply. Suddenly glass of a good size could be produced economically In limitless volumes.

Allied with this was the timely abolition of two long-standing taxes: the window tax and glass tax (which, strictly speaking, was an excise duty). The window tax dated from 1696 and was sufficiently punishing that (p. 12) people really did avoid putting windows in buildings where they could. The bricked-up window openings that are such a feature of man period
buildings in Britain today were once usually painted to look like windows. (It Is sometimes rather a shame that they aren't still.) The tax, sorely resented as "a tax on air and light," meant that many servants and others of constrained means were condemned to live In airless rooms.



Source:

Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.





June 22, 2011

Some New York Public School Teachers Still Well Paid to Do Busy Work



(p. A1) For her first assignment of the school year, Verona Gill, a $100,000-a-year special education teacher whom the city is trying to fire, sat around education offices in Lower Manhattan for two weeks, waiting to be told what to do.

For her second assignment, she was sent to a district office in the Bronx and told to hand out language exams to anyone who came to pick them up. Few did.

Now, Ms. Gill reports to a cubicle in Downtown Brooklyn with a broken computer and waits for it to be fixed. Periodically, her supervisor comes by to tell her she is still working on the problem. It has been this way since Oct. 8.

"I have no projects to do, so I sit there until 2:50 p.m. -- that's six hours and 50 minutes," the official length of the teacher workday, she said. "And then I swipe out."

When Mayor Michael R. Bloomberg closed the notorious reassignment centers known as rubber rooms this year, he and the city's teachers' union announced triumphantly that one of the most obvious sources of (p. A3) waste in the school system -- $30 million a year in salaries being paid to educators caught up in the glacial legal process required to fire them -- was no more.

No longer would hundreds of teachers accused of wrongdoing or incompetence, like Ms. Gill, clock in and out of trailers or windowless rooms for years, doing nothing more than snoozing or reading newspapers, griping or teaching one another tai chi. Instead, their cases would be sped up, and in the meantime they would be put to work.

While hundreds of teachers have had their cases resolved, for many of those still waiting, the definition of "work" has turned out to be a loose one. Some are now doing basic tasks, like light filing, paper-clipping, tracking down student information on a computer or using 25-foot tape measures to determine the dimensions of entire school buildings. Others sit without work in unadorned cubicles or at out-of-the-way conference tables.



For the full story, see:

SHARON OTTERMAN. "For New York, Teachers Still in Idle Limbo." The New York Times (Weds., December 8, 2010): A1 & A3.

(Note: the online version of the commentary is dated December 7, 2010 and has the title "New York Teachers Still in Idle Limbo.")





June 21, 2011

Moral: In a Crisis You Need Resilience and the Ability to Improvise More than You Need Detailed Advance Plans



(p. D1) When the Three Mile Island nuclear generating station along the Susquehanna River seemed on the verge of a full meltdown in March 1979, Gov. Richard L. Thornburgh of Pennsylvania asked a trusted aide to make sure that the evacuation plans for the surrounding counties would work.

The aide came back ashen faced. Dauphin County, on the eastern shore of the river, planned to send its populace west to safety over the Harvey Taylor Bridge.

"All well and good," Mr. Thornburgh said in a recent speech, "except for the fact that Cumberland County on the west shore of the river had adopted an evacuation plan that would funnel all exiting traffic eastbound over -- you guessed it -- the same Harvey Taylor Bridge."


. . .


(p. D4) Brian Wolshon, the director of the Gulf Coast Center for Evacuation and Transportation Resiliency, said that he was analyzing one county's emergency plans that seemed to have every detail covered.

"It was a wonderful report, with plans to move senior citizens out of care facilities and even out of hospitals, and they had signed contracts with bus and ambulance providers," said Dr. Wolshon, who is also a professor at Louisiana State University. "But that same low-cost provider had the same contract with the county next door, and they had the capacity to evacuate only one of these counties."



For the full story, see:

GARDINER HARRIS. "Dangers of Leaving No Resident Behind." The New York Times (Tues., March 22, 2011): D1 & D4.

(Note: the online version of the article is dated March 21, 2011.)





June 20, 2011

Entrepreneur Defends His Store with Gun



SpinelliAnthonyDefendedStore2011-06-05.jpg















"Anthony Spinelli, outside his store in the Bronx on Thursday, was called brave for shooting a man suspected of trying to rob his shop." Source of caption and photo: online version of the NYT article quoted and cited below.




(p. A23) On Arthur Avenue, a group of men piled out of Pasquale's Rigoletto restaurant onto the sidewalk to pay their respects to a sudden local hero.

"Anthony, we love you," they shouted across the street.

They summed up the local sentiment about a man, Anthony Spinelli, celebrated for protecting his livelihood. On Wednesday, Mr. Spinelli pulled one of two licensed guns in the store, and shot one of the three people suspected of trying to rob his Arthur Avenue jewelry store at gunpoint.

The Bronx neighborhood seemed energized by the event, which people here saw as a testament to the toughness of one of the last Italian neighborhoods in New York City.

"You don't come in and try to take a man's livelihood," said Nick Lousido, who called himself a neighborhood regular. "His family's store has 50 years on this block, they're going to come in and rob him?"

On Thursday, Mr. Spinelli, 49, had returned to his shop and sized up the broken front windows and the mess inside. He said that a man and woman had entered his store, and the man had held a gun to his head while the woman had gone through jewelry drawers and stuffed jewelry into a bag. He said he had feared for his life, and that he was still shaken.


. . .


Next door to Mr. Spinelli's shop is M & M Painter Supplies, which has photographs of Pope John Paul II and Mother Teresa next to a paint color chart on the wall.

"He's a very brave man," said the store owner, Ernie Verino. "He had the gun, and it takes guts to use it."



For the full story, see:

COREY KILGANNON. "Merchant Shooting to Defend His Store Is Celebrated as Hero of Arthur Avenue." The New York Times (Fri., February 18, 2011): A23.

(Note: ellipsis added.)

(Note: the online version of the article is dated February 17, 2011 and has the title "After Shooting, Merchant Is Hero of Arthur Avenue.")






June 13, 2011

The Importance of a Picture



Pictures can be doctored, especially in the days of Photoshop. But a visual image still makes a story more memorable, and maybe sometimes more believable. This was so for Winston Smith, the protagonist of 1984:


(p. 64) Everything faded into mist. The past was erased, the erasure was forgotten, the lie became truth. Just once in his life he had possessed--after the event: that was what counted--concrete, unmistakable evidence of an act of falsification. He had held it between his fingers for as long as thirty seconds.


. . .


(p. 67) . . . , in 1973, Winston was unrolling a wad of documents which had just flopped out of the pneumatic tube on to his desk when he came on a fragment of paper which had evidently been slipped in among the others and then forgotten. The instant he had flattened it out he saw its significance. It was a half-page torn out of 'The Times' of about ten years earlier--the top half of the page, so that it included the date--and it contained a photograph of the delegates at some Party function in New York. Prominent in the middle of the group were Jones, Aaronson, and Rutherford. There was no mistaking them, in any case their names were in the caption at the bottom.

The point was that at both trials all three men had confessed that on that date they had been on Eurasian soil. They had flown from a secret airfield in Canada to a rendezvous somewhere in Siberia, and had conferred with members of the Eurasian General Staff, to whom they had betrayed important military secrets. The date had stuck in Winston's memory because it chanced to be midsummer day; but the whole story must be on record in countless other places as well. There was only one possible conclusion: the confessions were lies.



Source:

Orwell, George. Nineteen Eighty-Four. New York: The New American Library, 1961 [1949].

(Note: ellipses added; italics in original.)


By Canadian law, 1984 is no longer under copyright. The text has been posted on the following Canadian web site: http://wikilivres.info/wiki/Nineteen_Eighty-Four





June 10, 2011

New Jersey Citizens Rebel Against "Ugly" Solar Panels



SolarPanelsFailLawnNewJersey2011-06-02.jpg "Solar panels along Fifth Street in Fair Lawn, N.J. Residents elsewhere were upset they had not been notified before installation." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A1) ORADELL, N.J. -- Nancy and Eric Olsen could not pinpoint exactly when it happened or how. All they knew was one moment they had a pastoral view of a soccer field and the woods from their 1920s colonial-style house; the next all they could see were three solar panels.

"I hate them," Mr. Olsen, 40, said of the row of panels attached to electrical poles across the street. "It's just an eyesore."


. . .


(p. A3) New Jersey is second only to California in solar power capacity thanks to financial incentives and a public policy commitment to renewable energy industries seeded during Gov. Jon S. Corzine's administration. . . .

Some residents consider the overhanging panels "ugly" and "hideous" and worry aloud about the effect on property values.

Though nearly halfway finished, the company's crews have encountered some fresh resistance in Bergen County, where cities, villages and boroughs are in varying stages of mortification. Local officials have forced a temporary halt in many towns as they seek assurances that they will not be liable in case of injury, but also to buy time for suggesting alternative sites -- like dumps -- to spare their tree-lined streets.

And here in Oradell, at least one panel has gone missing.


. . .


The case of the missing panel has been referred to local law enforcement.

"PSE&G takes a very dim view of people tampering with the equipment," said Francis Sullivan, a company spokesman, "but that's secondary to the fact that it's just a dangerous idea." All the units are connected to high-voltage wires.

Richard Joel Sr., a lawyer in town, said a panel close to his house had been removed, but demurred when asked if he knew details.

"I'm not saying what happened," he said.



For the full story, see:

MIREYA NAVARRO. "Solar Panels Rise Pole by Pole, Followed by Gasps of 'Eyesore'." The New York Times (Thurs., April 28, 2011): A1 & A3.

(Note: ellipses added.)

(Note: the online version of the story is dated April 27, 2011.)





June 8, 2011

Home Decorators Are Stockpiling Incandescent Bulbs to Thwart Feds' Edict



BrooksDavidJustBulbs2011-06-02.jpg

"David Brooks, of Just Bulbs in Manhattan, has a customer who is secretly ordering thousands of incandescent bulbs. "She doesn't want her husband to know," he said." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. D1) BUNNY WILLIAMS, the no-nonsense decorator known for her lush English-style rooms, is laying in light bulbs like canned goods. Incandescent bulbs, that is -- 60 and 75 watters -- because she likes a double-cluster lamp with a high- and a low-watt bulb, one for reading, one for mood.

"Every time I go to Costco, I buy more wattage," Ms. Williams said the other day. She is as green as anybody, she added, but she can't abide the sickly hue of a twisty compact fluorescent bulb, though she's tried warming it up with shade liners in creams and pinks. Nor does she care for the cool blue of an LED.

It should be noted that, like most decorators, Ms. Williams is extremely precise about light. The other day, she reported, she spent six hours fine-tuning the lighting plan of a project, tweaking the mix of ambient, directional and overhead light she had designed, and returning to the house after dusk to add wattage and switch out lamps like a chef adjusting the flavors in a complicated bouillabaisse.

She is aware that there is legislation that is going to affect the manufacture of incandescent bulbs, but she's not clear on the details, and she wants to make sure she has what she needs when she needs it.


. . .


(p. D7) Other hoarders are hiding their behavior. David Brooks, who owns Just Bulbs on East 60th Street, said he has a customer in Tennessee who is buying up 60- and 100-watt soft-pink incandescent bulbs from G.E. and Sylvania for her three houses. Initially, she ordered 432 bulbs for each house, he said. Then she ordered another 1,000.

Mr. Brooks said the customer doesn't want her husband to find out, and wouldn't agree to speak to this reporter. The last order is destined, he said, "for a friend's house that she is helping to redecorate in Alabama. She doesn't want anyone to know her source."



For the full story, see:

PENELOPE GREEN. "Light Bulb Saving Time." The New York Times (Thurs., May 26, 2011): D1 & D7.

(Note: ellipsis added.)

(Note: the online version of the story is dated May 25, 2011.)





June 7, 2011

Government Administrators Steal Money, Food and Benefits from Poor in India



(p. A8) NEW DELHI -- India spends more on programs for the poor than most developing countries, but it has failed to eradicate poverty because of widespread corruption and faulty government administration, the World Bank said Wednesday.


. . .


One of the primary problems, the World Bank said, was "leakages" -- an often-used term in development circles that refers to government administrators and middle men stealing money, food and benefits. The bank said that 59 percent of the grain allotted for public distribution to the poor does not reach those households.



For the full story, see:

"India's Anti-Poverty Programs Are Big but Troubled." The New York Times (Thurs., May 19, 2011): A8.

(Note: ellipsis added.)

(Note: the online version of the story is dated May 18, 2011, has the title "India's Anti-Poverty Programs Are Big but Troubled," is attributed to Heather Timmons, and is considerably more detailed than the published version.)





June 6, 2011

Chinese Government Created Real Estate Bubble in a Dozen Ghost Towns Like Kangbashi Area of Ordos



KangbashiRealEstateBubble2011-06-02.jpg"As China's roaring economy fuels a wild construction boom around the country, critics cite places like Kangbashi as proof of a speculative real estate bubble they warn will eventually burst." Source of photo: online version of the NYT article quoted and cited below. Source of caption: online version of the NYT slideshow that accompanied the online article quoted and cited below.


The October 19, 2010 New York Times front page story (quoted below) on the Ordos ghost town in China, was finally picked up by the TV media on May 30 in a nice NBC Today Show report.

It should be clear that the Chinese real estate bubble will burst, just as real estate bubbles eventually burst in places like Japan and the United States. What is not clear is what the effects will be on the Chinese and world economies.


(p. A1) Ordos proper has 1.5 million residents. But the tomorrowland version of Ordos -- built from scratch on a huge plot of empty land 15 miles south of the old city -- is all but deserted.

Broad boulevards are unimpeded by traffic in the new district, called Kangbashi New Area. Office buildings stand vacant. Pedestrians are in short supply. And weeds are beginning to sprout up in luxury villa developments that are devoid of residents.


. . .


(p. A4) As China's roaring economy fuels a wild construction boom around the country, critics cite places like Kangbashi as proof of a speculative real estate bubble they warn will eventually pop -- sending shock waves through the banking system of a country that for the last two years has been the prime engine of global growth.


. . .


Analysts estimate there could be as many as a dozen other Chinese cities just like Ordos, with sprawling ghost town annexes. In the southern city of Kunming, for example, a nearly 40-square-mile area called Chenggong has raised alarms because of similarly deserted roads, high-rises and government offices. And in Tianjin, in the northeast, the city spent lavishly on a huge district festooned with golf courses, hot springs and thousands of villas that are still empty five years after completion.


. . .


In 2004, with Ordos tax coffers bulging with coal money, city officials drew up a bold expansion plan to create Kangbashi, a 30-minute drive south of the old city center on land adjacent to one of the region's few reservoirs. . . .

In the ensuing building spree, home buyers could not get enough of Kangbashi and its residential developments with names like Exquisite Silk Village, Kanghe Elysees and Imperial Academic Gardens.

Some buyers were like Zhang Ting, a 26-year-old entrepreneur who is a rare actual resident of Kangbashi, having moved to Ordos this year on an entrepreneurial impulse.

"I bought two places in Kangbashi, one for my own use and one as an investment," said Mr. Zhang, who paid about $125,000 for his 2,000-square-foot investment apartment. "I bought it because housing prices will definitely go up in such a new town. There is no reason to doubt it. The government has already moved in."

Asked whether he worried about the lack of other residents, Mr. Zhang shrugged off the question.

"I know people say it's an empty city, but I don't find any inconveniences living by myself," said Mr. Zhang, who borrowed to finance his purchases. . . .



For the full story, see:

DAVID BARBOZA. "A City Born of China's Boom, Still Unpeopled." The New York Times (Weds., October 19, 2010): A1 & A4.

(Note: ellipses added.)

(Note: the online version of the commentary is dated October 19, 2010 and has the title "Chinese City Has Many Buildings, but Few People.")




KangbashiRealEstateGraph2011-06-02.jpg















Source of graph: online version of the NYT article quoted and cited above.
























June 4, 2011

To Teach the Truth, the Best Teachers Must Become "Canny Outlaws"



PracticalWisdomBK2.jpg

















Source of book image: http://www.swarthmore.edu/Images/news/practical_wisdom.jpg




(p. 170) Walking into Mr. Drew's economics class, researchers might have interrupted a board meeting of the student-run start-up company that was at the heart of his course. Drawing on his own experience in industry, Mr. Drew taught students economic principles in a way that made sense to them because they were researching potential products they would actually sell (a mug with the school logo; a T-shirt designed by a student graphics team). They were conducting market surveys, accumulating capital, making decisions about the scale of investment, the risk, the profits.


. . .


In Houston. the magnet schools were forced to reorganize to prepare for the coming White-Perot reforms. McNeil changed her study. The new question was: How would these teachers cope with a curriculum that was test-driven?


. . .


Mr. Drew's economics class did not conform to the proficiency sequence and he had to drop the course, except as an elective.


. . .


The paperwork required by such new requirements--to assure the bureaucracy that teachers were teaching by the rules--discouraged individualized time spent with students and robbed time previously devoted to planning and assessing lessons. The requirements created the same kind of time bind Wong observed when such requirements were imposed on military trainers. (p. 171) And, as in the case of the new military training model, the new requirements discouraged flexibility, adaptability, and creativity.

McNeil found that many of the experienced teachers fought back. They became canny outlaws, or creative saboteurs, dodging the "law," finding ways to cover the "proficiencies" with great efficiency and squirreling away time to sneak real education back in at the margins of the standardized system, sometimes even conspiring with their students or teaching them how to "game" the system. Mr. Drew taught his students that economic cycles vary in length and intensity, but in the test prep period, he told them to forget this because the official answer was that each cycle lasts eighteen months. There was a danger that students who learned to look beyond the obvious, to ask "what if," to look for the exceptions to the rules, would do badly on the tests.


. . .


The ability of wise teachers to operate as canny outlaws is most seriously constrained when a highly scripted curriculum comes riding into town on the heels of high-stakes standardized tests. By prescribing, step by step, what to say and do each day to prepare students for these tests, such lockstep curricula pose a serious challenge to professional discretion. Yet even under these adverse conditions, in many schools there are canny
outlaws who find ways to avoid being channeled.



Source:

Schwartz, Barry, and Kenneth Sharpe. Practical Wisdom: The Right Way to Do the Right Thing. New York: Riverhead Books, 2010.

(Note: ellipses added.)


The McNeil book mentioned above is:

Linda, McNeil. Contradictions of School Reform: Educational Costs of Standardized Testing, Critical Social Thought. New York: Routledge, 2000.


The Wong report mentioned above is:

Wong, Leonard. "Stifled Innovation? Developing Tomorrow's Leaders Today." Strategic Studies Institute Monograph, April 1, 2002.



contradictions-school-reform-educational-costs-standardized-testing-linda-m-mcneil-paperback-cover-art.jpg

















Source of book image: http://i43.tower.com/images/mm101682007/contradictions-school-reform-educational-costs-standardized-testing-linda-m-mcneil-paperback-cover-art.jpg





June 3, 2011

Denmark (Yes, Sanctimoniously 'Green' Denmark) Seeks to Exploit the BENEFITS of Global Warming



(p. A7) Denmark plans to lay claim to parts of the North Pole and other areas in the Arctic, where melting ice is uncovering new shipping routes, fishing grounds and drilling opportunities for oil and gas, a leaked government document showed Tuesday.


For the full story, see:

THE ASSOCIATED PRESS. "WORLD BRIEFING | EUROPE; Denmark: Leaked Document Reveals Plans to Claim Parts of the North Pole." The New York Times (Weds., May 18, 2011): A7.

(Note: the online version of the story is dated May 17, 2011.)





May 29, 2011

Georgia Taxpayers Pay for "Go Fish" Museum in Former Governor's Home Town



BassLargemouthGoFishMuseum2011-05-19.jpg "A largemouth bass dominates the hatchery display at Go Fish Georgia Educational Center, a museum financed partly by the state and approved when the economy was more robust." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A14) PERRY, Ga. -- Every weekend, Michael Morris and his 2-year-old son, Jacob, visit this small town's enormous new $14 million fishing museum. They watch bream and bass swim in aquarium-size tanks. They play with an interactive model of a fishing boat and try to catch fish on a computer simulation using a rod and reel connected to a video screen.

And because the museum, the Go Fish Georgia Educational Center, is primarily financed by the state, their father-and-son outings cost only $5.


. . .


But not all Georgia taxpayers are so thrilled. Even before the museum opened in October, "Go Fish" had become shorthand in state political circles for wasteful spending. Republicans and Democrats alike groaned over $1.6 million a year in bond payments and operating costs. And even supporters concede that the museum would never have gotten financed in 2007 if the legislature knew where the economy was headed.


. . .


And then there is the controversy over the museum's location -- in the home county of its main supporter, former Gov. Sonny Perdue, a Republican who left office this month after two terms.



For the full story, see:

ROBBIE BROWN. "New Fishing Museum Becomes Symbol of Waste in Georgia." The New York Times (Tues., January 18, 2011): A14.

(Note: ellipses added.)

(Note: the online version of the article is dated January 17, 2011 and has the title "Fishing Museum Is Symbol of Waste in Georgia.")





May 26, 2011

Government Finally Allows Steve Jobs to Creatively Destroy His Own House



(p. A18) WOODSIDE, Calif. -- There may not be an app for it, but Steve Jobs did have a permit. And with that, his epic battle to tear down his own house is finally over.

For the better part of the last decade, Mr. Jobs, the co-founder and chief executive of Apple, has been trying to demolish a sprawling, Spanish-style mansion he owns here in Woodside, a tony and techie enclave some 30 miles south of San Francisco, in hopes of building a new, smaller home on the lot. His efforts, however, had been delayed by legal challenges and cries for preservation of the so-called Jackling House, which was built in the 1920s for another successful industrialist: Daniel Jackling, whose money was in copper, not silicon.


. . .


"Steve Jobs knew about the historic significance of the house," Mr. Turner said. "And unfortunately he disregarded it."

Mr. Turner said the mansion, which had 35 rooms in nearly 15,000 square feet of interior space, was significant in part because it was built by George Washington Smith, an architect who is known for his work in California. But Mr. Jobs had been dismissive of Mr. Smith's talents, calling the house "one of the biggest abominations" he had ever seen.



For the full story, see:

JESSE McKINLEY. "With Demolition, Apple Chief Makes Way for House 2.0." The New York Times (Fri., February 16, 2011): A18.

(Note: ellipsis added.)

(Note: the online version of the article is dated February 15, 2011.)





May 25, 2011

Corruption, Inefficiency, Inflation and Bad Policies Lead to Decline in Foreign Investment in India



ForeignDirectInvestmentGraph2011-05-19.jpg Source of graph: online version of the NYT article quoted and cited below.



(p. B1) While inefficiency and bureaucracy are nothing new in India, analysts and executives say foreign investors have lately been spooked by a highly publicized government corruption scandal over the awarding of wireless communications licenses. Another reason for thinking twice is a corporate tax battle between Indian officials and the British company Vodafone now before India's Supreme Court.

Meanwhile, the inflation rate -- 8.2 percent and rising -- seems beyond the control of India's central bank and has done nothing to reassure foreign investors.

And multinationals initially lured by India's growth narrative may find that the realities of the Indian marketplace tell a more vexing story. Some companies, including the insurer MetLife and the retailing giant Wal-Mart, for example, are eager to invest and expand here but have been waiting years for policy makers to let them.



For the full story, see:

VIKAS BAJAJ. "Foreign Investment Ebbs in India." The New York Times (Fri., February 25, 2011): B1 & B6.

(Note: the online version of the article is dated February 24, 2011.)





May 21, 2011

Feds Finally Admit Some Children Harmed by High Fluoridated Water Mandates



FluorisisChart2011-05-19.jpg
















Source of graphic: online version of the WSJ article quoted and cited below.



Back when I was a child, decades ago, my family opposed the fluoridation of public water supplies on the grounds that there might be health risks, and people could individually choose to apply fluoride to their teeth.

Well, now the government is suggesting that too much fluoride can harm children's teeth, and that the target level for fluoride in the water should be reduced.


(p. A3) The federal government lowered its recommended limit on the amount of fluoride in drinking water for the first time in nearly 50 years, saying that spots on some children's teeth show they are getting too much of the mineral.

Fluoride has been added to U.S. water supplies since 1945 to prevent tooth decay. Since 1962, the government has recommended adding a range of 0.7 milligrams to 1.2 milligrams per liter.


. . .


A study conducted between 1999 and 2004 by the federal Centers for Disease Control and Prevention found that 41% of children between the ages of 12 and 15 exhibited signs of dental fluorosis, a spotting or streaking on the teeth. That was up from nearly 23% found in a study from 1986 and 1987.


. . .


. . . for years, some groups have called for an end to fluoridation, arguing that it poses serious health dangers, including increased risk of bone fractures and of decreased thyroid function. Friday's announcement did little to appease such critics.

"The only rational course of action is to stop water fluoridation," said Paul Connett, executive director of the Fluoride Action Network, a nonprofit advocacy and fluoride-education group

.

For the full story, see:

TIMOTHY W. MARTIN. "Government Advises Less Fluoride in Water." The New York Times (Sat., JANUARY 8, 2011): A3.

(Note: ellipses added.)






May 18, 2011

"For the First 40 Years of Indian Independence, Entrepreneurs . . . Were Looked Down Upon"



(p. 8) Saurabh Srivastava, co-founder of the National Association of Software and Service Companies in India, explained that for the first 40 years of Indian independence, entrepreneurs here were looked down upon. India had lost confidence in its ability to compete, so it opted for protectionism. But when the '90s rolled around, and India's government was almost bankrupt, India's technology industry was able to get the government to open up the economy, in part by citing the example of America and Silicon Valley. India has flourished ever since.

"America," said Srivastava, "was the one who said to us: 'You have to go for meritocracy. You don't have to produce everything yourselves. Go for free trade and open markets.' This has been the American national anthem, and we pushed our government to tune in to it. And just when they're beginning to learn how to hum it, you're changing the anthem. ... Our industry was the one pushing our government to open our markets for American imports, 100 percent foreign ownership of companies and tough copyright laws when it wasn't fashionable."

If America turns away from these values, he added, the socialist/protectionists among India's bureaucrats will use it to slow down any further opening of the Indian markets to U.S. exporters.



For the full commentary, see:

THOMAS L. FRIEDMAN. "It's Morning in India." The New York Times, Week in Review Section (Sun., October 31, 2010): 8.

(Note: the online version of the story is dated October 30, 2010.)






May 17, 2011

Patients Face Higher Costs and Less Innovation Due to FDA



CongerMartiDiskImplant2011-05-16.jpg"Marti Conger, a business consultant in Benicia, Calif., went to England in October 2009 to get an implant of a new artificial disk for her spine developed by Spinal Kinetics of Sunnyvale, Calif., a short distance from her home." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. B1) Late last year, Biosensors International, a medical device company, shut down its operation in Southern California, which had once housed 90 people, including the company's top executives and researchers.

The reason, executives say, was that it would take too long to get its new cardiac stent approved by the Food and Drug Administration.

"It's available all over the world, including Mexico and Canada, but not in the United States," said the chief executive, Jeffrey B. Jump, an American who runs the company from Switzerland. "We decided, let's spend our money in China, Brazil, India, Europe."


. . .


(p. B7) "Ten years from now, we'll all get on planes and fly somewhere to get treated," said Jonathan MacQuitty, a Silicon Valley venture capitalist with Abingworth Management.

Marti Conger, a business consultant in Benicia, Calif., already has. She went to England in October 2009 to get an implant of a new artificial disk for her spine developed by Spinal Kinetics of Sunnyvale, Calif.

"Sunnyvale is 40 miles south of my house," said Ms. Conger, who has become an advocate for faster device approvals in the United States. "I had to go to England to get my surgery."


. . .


Device companies have been seeking early approval in Europe for years because it is easier. In Europe, a device must be shown to be safe, while in the United States it must also be shown to be effective in treating a disease or condition. And European approvals are handled by third parties, not a powerful central agency like the F.D.A.

But numerous device executives and venture capitalists said the F.D.A. has tightened regulatory oversight in the last couple of years. Not only does it take longer to get approval but it can take months or years to even begin a clinical trial necessary to gain approval.

Disc Dynamics made seven proposals over three years but could not get clearance from the F.D.A. to conduct a trial of its gel for spine repair, said David Stassen, managing partner of Split Rock Partners, a venture firm that backed the company. "It got to the point where the company just ran out of cash," Mr. Stassen said. Disc Dynamics was shut down last year after an investment of about $65 million.



For the full story, see:

ANDREW POLLACK. "Medical Treatment, Out of Reach." The New York Times (Thurs., February 10, 2011): B1 & B7.

(Note: ellipses added.)

(Note: the online version of the story is dated February 9, 2011.)





ArtificialDisk2011-05-16.jpg







"An artificial disk like the one Marti Conger received."
Source of caption and photo: online version of the NYT article quoted and cited above.





May 10, 2011

Mexican Universal Health Care: "There Are No Doctors, No Medicine, No Hospital Beds"



(p. 6) A decade ago, half of all Mexicans had no health insurance at all. Then the country's Congress passed a bill to ensure health care for every Mexican without access to it. The goal was explicit: universal coverage.

By September, the government expects to have enrolled about 51 million people in the insurance plan it created six years ago -- effectively reaching the target, at least on paper.

The big question, critics contend, is whether all those people actually get the health care the government has promised.


. . .


The money goes from the federal government to state governments, depending on how many people each state enrolls. From there, it is up to state governments to spend the money properly so that patients get the promised care.

That, critics say, is the plan's biggest weakness. State governments have every incentive to register large numbers, but they do not face any accountability for how they spend the money.

"You have people signed up on paper, but there are no doctors, no medicine, no hospital beds," said Miguel Pulido, the executive director of Fundar, a Mexican watchdog group that has studied the poor southern states of Guerrero and Chiapas.

Mr. Chertorivski acknowledges that getting some states to do their work properly is a problem. "You can't do a hostile takeover," he said.

The result is that how Mexicans are treated is very much a function of where they live. Lucila Rivera Díaz, 36, comes from one of the poorest regions in Guerrero. She said doctors there told her to take her mother, who they suspected had liver cancer, for tests in the neighboring state of Morelos.



For the full story, see:

ELISABETH MALKIN. "Mexico Struggles to Realize the Promise of Universal Health Care." The New York Times, First Section (Sun., January 30, 2011): 6.

(Note: the online version of the story is dated January 29, 2011 and has the title "Mexico's Universal Health Care Is Work in Progress.")

(Note: ellipsis added.)





May 8, 2011

Hillary Clinton Blasted "Materialism" in Others and Bought a $1.7 Million House for Herself



(p. 145) . . . , it is standard to denounce materialism in others while lusting for it ourselves. At the end of the 1990s, Hillary Rodham Clinton decried "a consumer-driven culture that promotes values that undermine democracy" and blasted "materialism that undermines our spiritual centers." Shortly thereafter, she bought a $1.7 million home and signed an $8 million book contract. As the novelist Daniel Akst has noted, Rodham Clinton thus joined the long line of commentators "bent on saving the rest of us from the horrors of consumption" while taking care to make themselves rich and comfy.


Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.

(Note: ellipsis added.)





May 4, 2011

Limits to "Sprawl" Add to House Prices Which Benefits the "Already Entrenched"



(p. 130) If 50 percent more Americans are on the way that means there must be 50 percent more suburban subdivisions, 50 percent more malls, 50 percent more of everything--unless anyone thinks it is fair to deny to newcomers the physical space and comfort that current Americans enjoy.

Sprawl may he managed well or poorly, and "smart growth" is better than dumb growth. But when people object to development per se, what they almost always mean is that they have achieved a nice lifestyle and now wish to pull up the ladders against others--and, not coincidentally, to make their own properties more valuable by artificially limiting supply. California real estate prices in particular have shot up in the last decade because slow-growth ordinances and no-growth judicial rulings have artificially restricted housing supply. Opposing sprawl can be a financial boon to anyone who's already entrenched.

Anything that runs up housing prices is of particular concern to educational equality, since today, in many parts of the United States, the housing market in effect regulates access to the best public schools. Buyers pay significant premiums for homes in the districts of high-quality public schools; in the Washington, D.C., suburbs, a home in the excellent Fairfax County or Montgomery County school systems may sell for $200,000 more than an identical dwelling from which children would attend the troubled schools of Prince George's County or Arlington County. In turn, SAT scores rise in tandem with family income--each $10,000 increment of increase in family income adds twenty to thirty points to a child's total SAT scores, studies show. Why does family income raise SAT scores? Partly because a high income enables parents to give children extra advantages, partly because low income parents or parents in broken families may shirk their responsibility for helping children succeed in school, but mostly (p. 131) because the higher a family's income the better a school district it can buy into, via the housing market. Since education is closely linked to success in later life, the nation has an interest in preventing exclusionary housing prices. That means there must be more sprawl and more growth to increase the housing supply and thereby reduce prices.



Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.





May 2, 2011

Omaha's Mayor Suttle Proposes Toilet Paper Tax



(p. 1A) Mayor Jim Suttle went to Washington Tuesday flush with ideas for how federal officials could help cities like Omaha pay for multibillion-dollar sewer projects.

Among the items on his brainstorming list: a proposal for a 10-cent federal tax on every roll of toilet paper you buy.

Based on the four-pack price for Charmin double rolls Tuesday at a midtown Hy-Vee, such a tax would add more than 10 percent to the per-roll price, pushing it over a buck.



For the full story, see:

MAGGIE O'BRIEN. "Mayor unrolls a novel way to wipe out sewer costs ■ His suggestion-- a toilet paper tax -- strikes some city industries as a gentler approach." Omaha World-Herald (Weds., March 23, 2011): 1A.

(Note: the online version has the slightly different title "Mayor unrolls a novel way to wipe out sewer costs ■ His idea-- a toilet paper tax -- strikes some city industries as a gentler approach.")





April 30, 2011

Press Routinely Puffs Up Phony Scares



(p. 107) In the winter of 2001, . . . , a New York Times page-one lead story declared in breathless phrasing that the White House had just "canceled" regulations limiting arsenic in drinking water; taking their leads from the Times, all national newscasts that night declared that arsenic protection had been "canceled." The Times went on to editorialize that government actually wanted Americans to "drink poisoned water" because this would serve the sinister interests of corporations, though how the conspiracy would serve sinister corporate interests was not explained, since the arsenic in drinking water occurs naturally. Government poisoning your water--a report you don't want to miss tonight!

Except that nothing had been canceled. The White House had held up a pending rule to make arsenic protection more strict; while the pending rule was reviewed, prior rules remained in effect. The Environmental Protection Agency continued regulating arsenic in drinking water during the entire period when such protection was supposedly "canceled." Then, in November 2001, the White House ended its review and put the much stricter rule into force. The New York Times did not play this as (p. 108) a headline lead, where the original scare story had been; enactment of the strict rule was buried in a small box on page A18. Network newscasts that had presented a shocking scandal of "canceled arsenic protection" as their big story also said little or nothing when instead stronger rules went into effect. This sort of puffing up of a phony scare, followed by studious ignoring of subsequent events that deflate the scare, is not rare. It is standard operating procedure in many quarters of journalism, including at the top.



Source:

Easterbrook, Gregg. The Progress Paradox: How Life Gets Better While People Feel Worse. Paperback ed. New York: Random House, 2004.

(Note: ellipsis added; italics in original.)





April 24, 2011

Energy Regulations Give Us Less Choice and Worse Washing Machines



(p. A17) It might not have been the most stylish, but for decades the top-loading laundry machine was the most affordable and dependable. Now it's ruined--and Americans have politics to thank.

In 1996, top-loaders were pretty much the only type of washer around, and they were uniformly high quality. When Consumer Reports tested 18 models, 13 were "excellent" and five were "very good." By 2007, though, not one was excellent and seven out of 21 were "fair" or "poor." This month came the death knell: Consumer Reports simply dismissed all conventional top-loaders as "often mediocre or worse."

How's that for progress?

The culprit is the federal government's obsession with energy efficiency. Efficiency standards for washing machines aren't as well-known as those for light bulbs, which will effectively prohibit 100-watt incandescent bulbs next year. Nor are they the butt of jokes as low-flow toilets are. But in their quiet destruction of a highly affordable, perfectly satisfactory appliance, washer standards demonstrate the harmfulness of the ever-growing body of efficiency mandates.


. . .


Front-loaders meet federal standards more easily than top-loaders. Because they don't fully immerse their laundry loads, they use less hot water and therefore less energy. But, as Americans are increasingly learning, front-loaders are expensive, often have mold problems, and don't let you toss in a wayward sock after they've started.



For the full commentary, see:

SAM KAZMAN. "How Washington Ruined Your Washing Machine; The top-loading washer continues to disappear, thanks to the usual nanny state suspects." The Wall Street Journal (Thurs., March 17, 2011): A17.

(Note: ellipsis added.)





April 22, 2011

Today Is Eleventh Anniversary of Democrats' Infamous Betrayal of Elián González



GonzalezElianSeizedOn2000-04-22.jpg"In this April 22, 2000 file photo, Elian Gonzalez is held in a closet by Donato Dalrymple, one of the two men who rescued the boy from the ocean, right, as government officials search the home of Lazaro Gonzalez, early Saturday morning, April 22, 2000, in Miami. Armed federal agents seized Elian Gonzalez from the home of his Miami relatives before dawn Saturday, firing tear gas into an angry crowd as they left the scene with the weeping 6-year-old boy." Source of caption and photo: online version of the Omaha World-Herald article quoted and cited below.



Today (April 22, 2011) is the eleventh anniversary of one of the darkest days in American history---when the Democratic Clinton Administration seized a six year old child in order to force him back into the slavery that his mother had died trying to escape.


(p. 7A) MIAMI (AP) - When federal agents stormed a home in the Little Havana community, snatched Elian Gonzalez from his father's relatives and put him on a path back to his father in Cuba, thousands of Cuban-Americans took to Miami's streets. Their anger helped give George W. Bush the White House months later and simmered long after that.


. . .


Elian was just shy of his sixth birthday when a fisherman found him floating in an inner tube in the waters off Fort Lauderdale on Thanksgiving 1999. His mother and others drowned trying to reach the U.S.

Elian's father, who was separated from his mother, remained in Cuba, where he and Fidel Castro's communist government demanded the boy's return.

Elian was placed in the home of his great-uncle, Lazaro Gonzalez, while the Miami relatives and other Cuban exiles went to court to fight an order by U.S. immigration officials to return him to Cuba. Janet Reno, President Bill Clinton's attorney general and a Miami native, insisted the boy belonged with his father.

When talks broke down, she ordered the raid carried out April 22, 2000, the day before Easter. Her then-deputy, current U.S. Attorney General Eric Holder, has said she wept after giving the order.

Associated Press photographer Alan Diaz captured Donato Dalrymple, the fisherman who had found the boy, backing into a bedroom closet with a terrified Elian in his arms as an immigration agent in tactical gear inches away aimed his gun toward them. The image won the Pulitzer Prize and brought criticism of the Justice Department to a frenzy.


. . .


The Cuban government, which tightly controls media access to Elian and his father, said neither is willing to give an interview. A government representative agreed to forward written questions from the AP to Elian, but there has been no response.

Pepe Hernandez, president of the Cuban American National Foundation, said his group predicted in 2000 that Elian would become a prop for the Castro government if he were returned. It was one reason, he said, the group fought for him to be kept in the U.S. and would do it again today, although behind the scenes to avoid negative publicity for the Cuban-American community.

"We knew what this kid was going to be subjected to," Hernandez said. "And time has proven us right."



For the full story, see:

JENNIFER KAY and MATT SEDENSKY. "10 years later, few stirred by Elian Gonzalez saga." Omaha World-Herald (Thurs., April 22, 2010): 7A.

(Note: ellipses added.)

(Note: the online version of the article is dated April 21, 2010 and has the title "10 years after Elian, US players mum or moving on.")





April 19, 2011

To Do Business in India, Bureaucrats Still Must Be Bribed



TataRatan2011-04-18.jpg "In the twilight of his career heading Tata Group, Ratan Tata says he was thwarted in his homeland by arbitrary regulatory decisions and corruption."


(p. B1) NEW DELHI--Ratan Tata has transformed Tata Group into the world's best-known Indian company, the owner of Jaguar cars, the Pierre Hotel in New York and Tetley tea.

But in the twilight of his career as chairman of the $67.4 billion conglomerate, Mr. Tata, 73 years old, is frustrated that he hasn't been able to expand more in his native India. He says bureaucratic delays, arbitrary regulatory decisions and widespread corruption have thwarted his domestic ambitions in such sectors as steel, power, aviation and telecommunications.


. . .


. . . 20 years after . . . reforms began, New Delhi still exerts tight control over large swaths of the economy. All too often, Mr. Tata and other critics say, regulators are picking winners and losers through their decisions, either by delaying certain projects and green-lighting others or by freeing up natural resources for some companies at the expense of others.

"Economically it is a much more open environment. It's one that fosters a fair amount of free enterprise until you need approvals or some kind of sanction to get something done," Mr. Tata said during an interview at the Tata-owned Taj Mahal hotel in New Delhi. "Then you still have problems, and maybe more acute then you did before."


. . .


As chairman, one of Mr. Tata's first goals was to get Tata back into the airline business. The company's former airline had been nationalized to form Air India. He planned a venture with Singapore Airlines. But, he says, aviation ministry bureaucrats held up his application for years despite his constant prodding. An aviation ministry spokeswoman didn't respond to a request for comment.

In 1998, after seven years of government inaction, Mr. Tata withdrew the application. "We went through three governments, three prime ministers, and each time there was a particular individual that thwarted our efforts," he said in a TV interview last fall. He recalled a conversation with a fellow industrialist several years ago. "He said, 'I don't understand. You people are very stupid.... Why don't you just pay?'"

Paying bribes isn't his style, Mr. Tata says. "Maybe I'm stupid or old fashioned, but I really want to go to bed at night saying I haven't succumbed to this."



For the full story, see:

AMOL SHARMA. "India's Tata Finds Home Hostile; Chair of Nation's Best-Known Company Says Bureaucracy Slows Domestic Growth." The Wall Street Journal (Weds., April 13, 2011): B1-B2.

(Note: ellipses added, except for the one after the word "stupid" which appears in the original.)

(Note: in the online version of the article, the final paragraph quoted above reads: "Mr. Tata says paying bribes isn't his style. "Maybe I'm stupid or old fashioned, but I really want to go to bed at night saying I haven't succumbed to this," he says."





April 16, 2011

To Paul Ryan, More Market Incentives in Health Care Would Reduce Costs and Improve Care



(p. B1) . . . Medicare's long-term funding gap -- . . . is by far the biggest source of looming federal deficits.


. . .


(p. B13) Some health economists believe that a combination of higher taxes and more Medicare cost controls can solve the problem. Mr. Ryan does not. And his skepticism is healthy.

To him, the only way to reduce Medicare's cost growth is to stop shielding people from the consequences of their decisions. If they want almost limitless medical treatments, they won't be able to foist the bill on taxpayers, as they do now. They will instead have to buy a generous insurance plan, partly with their own money. The resulting market forces, Mr. Ryan argues, will eventually bring down costs and leave most people better off.




For the full story, see:

DAVID LEONHARDT. "Economic Scene; A Lopsided Proposal for Medicare." The New York Times (Weds., April 6, 2011): B1 & B13.

(Note: ellipses added.)

(Note: the online version of the article is dated April 5, 2011 and has the title "Economic Scene; Generational Divide Colors Debate Over Medicare's Future.")






April 15, 2011

Italy's Dynastic Capitalism "Is Built Around Loyalty, Not Performance"



AltomonteCarloItalianEconomist2011-03-12.jpg"Carlo Altomonte, an economist, says that "Italy's problem isn't that we have a lot of debt. It's that we don't grow."" Source of caption and photo: online version of the NYT article quoted and cited below.


(p. 6) "I know that in the States, all Mediterranean countries get lumped together," says Carlo Altomonte, an economist with Bocconi University in Milan. "But Italy's problem isn't that we have a lot of debt. It's that we don't grow."


. . .


"There is no sense of what a market economy is in this country," says Professor Altomonte. "What you see here is an incredible fear of competition."


. . .


FIVE years ago, Francesco Giavazzi needed a taxi. Cabs are relatively scarce in Milan, especially at 5 a.m., when he wanted to head to the airport, so he called a company at 4:30 to schedule a pickup. But when he climbed into the cab half an hour later, he discovered that the meter had been running for more than 20 minutes, because the taxi driver had arrived soon after the call and started charging for (p. 7) his time. Allowed by the rules, but to Mr. Giavazzi, utterly unfair.

"So it was 20 euros before we started the trip to the airport," recalls Mr. Giavazzi, who is an economics professor at Bocconi University. "I said, 'This is impossible.' "

Professor Giavazzi later wrote an op-ed article denouncing this episode as another example of the toll exacted by Italy's innumerable guilds, known by several names here, including "associazioni di categoria." (These are different from unions, another force here, in that guilds are made up of independent players in a trade or profession who have joined to keep outsiders out and maintain standards, as opposed to representing employees in negotiations with management, as a union might.) Even baby sitters have associations in Italy.

The op-ed did not endear Professor Giavazzi to the city's cab drivers. They pinned leaflets with his name and address at taxi stands around Milan and for the next five nights, cabs drove around his home, honking their horns.

"This is a country with a lot of rents," says Professor Giavazzi, sitting in his office one recent afternoon, . . . "You need a notary public, it's like 1,000 euros before you even open your mouth. If you're a notary public in this country, you live like a king."

For Mr. Barbera, as is true with every entrepreneur here, the prevalence and power of Italy's guilds explains much of what is driving up costs. He says he must overspend for accountants, lawyers, truckers and other members of guilds on a list that goes on and on: "Everything has a tariff, and you have to pay."


. . .


Italians, notes Professor Altomonte, are among the world's heaviest consumers of bottled water. "Do you know why? Because the water in the tap comes from the government."

The suspicion of Italians when it comes to extra-familial institutions explains why many here care more about protecting what they have than enhancing their wealth. Most Italians live less than a mile or two from their parents and stay there, often for financial benefits like cash and in-kind services like day care. It's an insularity that runs all the way up to the corporate suites. The first goal of many entrepreneurs here isn't growth, so much as keeping the business in the family. For a company to really expand, it needs capital, but that means giving up at least some control. So thousands of companies here remain stubbornly small -- all of which means Italy is a haven for artisans but is in a lousy position to play the global domination game.

"The prevailing management style in this country is built around loyalty, not performance," says Tito Boeri, scientific director at Fondazione Rodolfo Debenedetti, who has written about Italy's dynastic capitalism.



For the full story, see:

DAVID SEGAL. "Is Italy Too Italian?" The New York Times (Sun., August 1, 2010): 1 & 6-7.

(Note: ellipses added.)

(Note: the online version of the article is dated July 31, 2010.)


BarberaSpaForYarn2011-03-12.jpg"The clothier Luciano Barbera in his family's "spa for yarn," where crates of thread rest for months. Economists fear that such small-scale artisanship cannot sustain Italy's economy forever." Source of caption and photo: online version of the NYT article quoted and cited above.





April 12, 2011

Socialism Is "Morally Corrupting"



On balance, Stephen Pollard believes that Claire Berlinski's book on Thatcher is poorly written. But he does believe that Berlinski got one important point right:


(p. 22) She is quite right, . . . , to stress that Thatcher's crusade against socialism was not merely about economic efficiency and prosperity but that above all, "it was that socialism itself -- in all its incarnations, wherever and however it was applied -- was morally corrupting."


For the full review, see:

STEPHEN POLLARD. "Thatcher's Legacy." The New York Times Book Review (Sun., January 18, 2009): 22.

(Note: ellipsis added.)

(Norte: the online version of the review has the date January 16, 2009.)


Book reviewed:

Berlinski, Claire. There Is No Alternative: Why Margaret Thatcher Matters. New York: Basic Books, 2008.






April 4, 2011

Father of Cornhusker Kickback Is Named "2010 Porker of the Year"



(p. 6A) Sen. Ben Nelson can't shake the "Cornhusker Kickback."

This week, a government watchdog group named the Nebraska Democrat its "2010 Porker of the Year," based on an online poll.

Citizens Against Government Waste included Nelson in the poll, citing his role negotiating a pro­vision of the federal health care bill that would have exempted Nebraska from paying the added costs of the law's expanded Med­icaid coverage. That provi­sion was later dropped in fa­vor of relief for all states, which Nelson has said was his goal all along.

Nelson cast the decisive 60th vote for the bill in late 2009.


. . .


Mark Fahleson, chairman of the Nebraska Republican Party, said Nelson was trying to rewrite history. "The fact is he's the fa­ther of the Cornhusker Kick­back," he said.



For the full story, see:

MICHAEL O'CONNOR. "Nelson rejects group's 'Porker of Year' label." Omaha World-Herald (Fri., March 4, 2011): 6A.

(Note: ellipsis added.)





April 1, 2011

Autos Give Us Autonomy



OpenRoad2011-03-10.jpgThe open road. Source of photo: online version of the NYT article quoted and cited below.


(p. 60) I've been converted by a renegade school of thinkers you might call the autonomists, because they extol the autonomy made possible by automobiles. Their school includes engineers and philosophers, political scientists like James Q. Wilson and number-crunching economists like Randal O'Toole, the author of the 540-page manifesto ''The Vanishing Automobile and Other Urban Myths.'' These thinkers acknowledge the social and environmental problems caused by the car but argue that these would not be solved -- in fact, would be mostly made worse -- by the proposals coming from the car's critics. They call smart growth a dumb idea, the result not of rational planning but of class snobbery and intellectual arrogance. They prefer to promote smart driving, which means more tolls, more roads and, yes, more cars.


. . .


(p. 65) . . . Macaulay . . . observed in the 19th century that ''every improvement of the means of locomotion benefits mankind morally and intellectually, as well as materially.''


. . .


In an essay called ''Autonomy and Automobility,'' Loren E. Lomasky, a professor of political philosophy at the University of Virginia, invokes Aristotle's concept of the ''self-mover'' to argue that the ability to move about and see the world is the crucial distinction between higher and lower forms of life and is ultimately the source of what Kant would later call humans' moral autonomy. ''The automobile is, arguably, rivaled only by the printing press (and perhaps within a few more years by the microchip) as an autonomy-enhancing contrivance of technology,'' he writes. The planners determined to tame sprawl, Lomasky argues, are the intellectual heirs of Plato and his concept of the philosopher-king who would impose order on the unenlightened masses.



For the full commentary, see:

Tierney, John. "The Autonomist Manifesto (or, How I Learned to Stop Worrying and Love the Road)." The New York Times Magazine (Sun., September 26, 2004): 57-65.

(Note: ellipsis added.)


The Lomasky essay is:

Lomasky, Loren E. "Autonomy and Automobility." The Independent Review
2, no. 1 (Summer 1997): 5-28.



The Macaulay quote is from:

Macaulay, Thomas Babington. "Chap. 3, State of England in 1685." The History of England from the Accession of James II. 1848.


The O'Toole book is:

O'Toole, Randal (sic). The Vanishing Automobile and Other Urban Myths: How Smart Growth Will Harm American Cities. Camp Sherman, Oregon: The Thoreau Institute, 2000.



The Wilson essay is:

Wilson, James Q. "Cars and Their Enemies." Commentary 104, no. 1 (July 1997): 17-23.





March 30, 2011

In Greece It Is Illegal for Brewers to Produce Tea



PolitopooulosDemetriGreekEntrepreneur2011-03-09.jpg "Demetri Politopoulos at his microbrewery in northern Greece. He says Greek leaders need to do more to make the country an easier place to do business." Source of caption and photo: online version of the NYT article quoted and cited below.



(p. 1) DEMETRI POLITOPOULOS says he has suffered countless indignities in his 12-year battle to build a microbrewery and wrest a sliver of the Greek beer market from the Dutch colossus, Heineken.

His tires have been slashed and his products vandalized by unknown parties, he says, and his brewery has received threatening phone calls. And he says he has had to endure regular taunts -- you left Manhattan to start up a beer factory in northern Greece? -- not to mention the pain of losing 5.3 million euros.

Bad as all that has been, nothing prepared him for this reality: He would be breaking the law if he tried to fulfill his latest -- and, he thinks, greatest -- entrepreneurial dream. It is to have his brewery produce and export bottles of a Snapple-like beverage made from herbal tea, which he is cultivating in the mountains that surround this lush pocket of the country.

An obscure edict requires that brewers in Greece produce beer -- and nothing else. Mr. Politopoulos has spent the better part of the last year trying fruitlessly to persuade the Greek government to strike it. "It's probably a law that goes back to King Otto," said Mr. Politopoulos with a grim chuckle, referring to the Bavarian-born king of Greece who introduced beer to the country around 1850.

Sitting in his office, Mr. Politopoulos took a long pull from a glass of his premium Vergina wheat beer and said it was absurd that he had to lobby Greek politicians to repeal a 19th-century law so that he could deliver the exports that Greece urgently needed. And, he said, his predicament was even worse than that: it was emblematic of the web of restrictions, monopolies and other distortions that have made many Greek companies uncompetitive, and pushed the country close to bankruptcy.



For the full story, see:

LANDON THOMAS Jr. "What's Broken in Greece? Ask an Entrepreneur." The New York Times, SundayBusiness Section (Sun., January 30, 2011): 1 & 5.

(Note: the online version of the article is dated January 29, 2011.)





March 25, 2011

State Universities Are "Byzantine Mazes, Sometimes with No Obvious Exit"



(p. A20) . . . in Wisconsin, Gov. Scott Walker proposed on Tuesday to separate the main Madison campus from the rest of the state university system, and make it a public authority. Last week, Madison's chancellor, Carolyn A. Martin, told the Wisconsin Board of Regents that she was hamstrung by state control.

"The accumulated layers of bureaucracy and the control of our mission from a distance make our institutions byzantine mazes, sometimes with no obvious exit," she said. "It's hard to be more responsible or more responsive if we spend all our time trying to comprehend and then follow 25 steps to get approval for one purchase."



For the full story, see:

TAMAR LEWIN. "Public Universities Seek More Autonomy as Financing From States Shrinks." The New York Times (Thurs., March 3, 2011): A20.

(Note: ellipsis added.)

(Note: the online version of the article is dated March 2, 2011.)





March 22, 2011

Scots Fear London May Delay the Dawn



InvernessScotlandDarkDawn2011-03-09.jpg

"Inverness, Scotland, at 8 a.m. Thursday. A change to year-round daylight time in Britain would make winter sunrise as late as 10 a.m. in the north." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A7) INVERNESS, Scotland -- The question was time, and whether to support legislative efforts in London to move it around in order to bring more light to the afternoons. The answer was no, said Jean Kaka, 67, a resident of this city far to the north.


. . .


"They're trying to tamper with our time," she said. "England is a different country than we are, and they're imposing this on us."


. . .


The problem is that while a clock change might bring afternoon joy to London, it would condemn Inverness in the far reaches of Scotland -- in relative terms, about 700 miles north of Montreal -- to long, dark winter mornings with sunrises as late as 10 a.m.

Even worse, many Scots feel, it would mean giving in to English politicians. Though the devolution of British politics has given Scotland its own legislature and responsibility for many of its own affairs, the clock is still controlled by Parliament in London.

"Certainly the people in London don't have any real concept of the effects further north," said Anthony Billington, 64, who was strolling through town recently. "I'm much more of a morning person, anyway."


. . .


Robin MacDonald, 63, who owns a television store in downtown Inverness, said that while Parliament's efforts to jump time ahead hardly mean that time is literally being stolen from him, he could do without having to set and reset his clocks twice a year.

When he was a child in the rural north, he said, he traveled to and from school in conditions "as dark as the inside of your hat." So he doesn't care what time legislators decide it is, as long as they decide something.

"They should make up their mind," Mr. MacDonald said, "and then they should leave it alone."



For the full story, see:


SARAH LYALL. "Inverness Journal; Scots Tell London, Hands Off Our Clocks." The New York Times (Fri., January 21, 2011): A7.

(Note: ellipses added.)

(Note: the online version of the article is dated January 20, 2011.)



MacDonaldRobinAndClock2011-03-09.jpg "Robin MacDonald would rather not have to reset his clocks twice a year." Source of caption and photo: online version of the NYT article quoted and cited above.





March 21, 2011

"Enough Is Enough with the Ineffective Theatrical Security Measures"



(p. B6) "DOES he bite?" the screener at the checkpoint asked warily.

"She doesn't bite," I said.

"Because we have to check under the wings," he said.

"In that case," I said, "she might bite."

At issue was our chatty little African Grey parrot, Rosie, who was watching the scene from inside her travel cage at the security checkpoint at the Newark airport. This was last week, a few days after a suspected terrorist tried to blow up an international flight on its descent into Detroit by igniting some explosives hidden in his underwear.

While the explosion fizzled, it threw airport security into a tizzy.


. . .


We were very anxious at the checkpoint. My wife solved the problem, though. One of Rosie's tricks is to spread her wings and lower her beak if you ask her to imitate an eagle.

"Rosie, do an eagle," my wife said. Inside her cage with the screener's face framed in the open door, the bird promptly spread her wings wide.

The screener had his look under the wings and lowered his wand. Merriment ensued all around -- but it had to look pretty silly.


. . .


On a more serious note, an airline pilot who did not want his name used, asked, "When will passengers say enough is enough with the ineffective theatrical security measures?"



For the full commentary, see:

JOE SHARKEY. "On the Road; Please Take Off Your Shoes, and Is the Parrot Loaded?" The Wall Street Journal (Tues., January 5, 2010): B6.

(Note: ellipses added.)

(Note: the online version of the article is dated January 4, 2010, and has the title "On the Road; Take Off Your Shoes, and Is the Parrot Loaded?")





March 20, 2011

"The Adventurous, Pioneering Spirit"



Jet_AgeBK.jpeg
















Source of book image: http://www.jetagebook.com/



(p. 30) "Jet Age" is ostensibly about the race between two companies and nations to commercialize a military technology and define a new era of air travel. There's Boeing with its back to the wall and its military contracts drying up, betting everything on passenger jets, pitted against de Havilland and the government-subsidized project meant to reclaim some of Britain's lost glory. . . .


. . .


But the book is really about the risk-taking essential for making any extreme endeavor common­place. "Jet Age" celebrates the managers, pilots, engineers, flight attendants and, yes, even passengers (for without passengers there is no business) who gambled everything so that we might cross oceans and continents in hours rather than days.

It is easy to forget, in this time of overcrowded flights, demoralizing security checks, embattled flight attendants and dwindling service, that risk was once embraced as a necessary, even desirable, part of flying. Quoted in the book, the celebrated aviator Lord Brabazon summed it up in post-accident testimony: "You know, and I know, the cause of this accident. It is due to the adventurous, pioneering spirit of our race. It has been like that in the past, it is like that in the present, and I hope it will be in the future."



For the full review, see:

MICHAEL BELFIORE. "Fatal Flaws." The New York Times Book Review (Sun., February 6, 2011): 30.

(Note: ellipses added.)

(Note: the online version of the article is dated February 4, 2011.)


The book under review is:

Verhovek, Sam Howe. Jet Age: The Comet, the 707, and the Race to Shrink the World. New York: Avery, 2010.





March 17, 2011

Koch Does Not Run with the Antelope



If you were standing amongst a herd of antelope when a dangerous predator arrived, you would not see the antelope defending themselves against the predator. What you would see would be their white rear ends disappearing in the distance.

Last July in Wichita I heard some executives from Koch Industries talking about Market-Based Management. A couple of them mentioned Koch's stands in defense of the free market. As a result of these efforts, Koch Industries has become the target of many agencies of the government and of groups opposed to the free market. Once or twice I heard an executive say something like: 'it would have been a lot easier if we had just painted our butts white and run with the antelope.'

Schumpeter thought that those in business would not defend the fortress of capitalism (CSD, p. 142). And the evidence suggests that Schumpeter was mainly right. But we can hope that there are enough exceptions, in unpretentious places like Wichita, to keep the fortress standing.


(p.A15) Years of tremendous overspending by federal, state and local governments have brought us face-to-face with an economic crisis. Federal spending will total at least $3.8 trillion this year--double what it was 10 years ago. And unlike in 2001, when there was a small federal surplus, this year's projected budget deficit is more than $1.6 trillion.

Several trillions more in debt have been accumulated by state and local governments. States are looking at a combined total of more than $130 billion in budget shortfalls this year. Next year, they will be in even worse shape as most so-called stimulus payments end.

For many years, I, my family and our company have contributed to a variety of intellectual and political causes working to solve these problems. Because of our activism, we've been vilified by various groups. Despite this criticism, we're determined to keep contributing and standing up for those politicians, like Wisconsin Gov. Scott Walker, who are taking these challenges seriously.



For the full commentary, see:

CHARLES G. KOCH. "Why Koch Industries Is Speaking Out; Crony capitalism and bloated government prevent entrepreneurs from producing the products and services that make people's lives better." The Wall Street Journal (Tues., MARCH 1, 2011): A15.


Koch's book is:

Koch, Charles G. The Science of Success: How Market-Based Management Built the World's Largest Private Company. Hoboken, NJ: Wiley & Sons, Inc., 2007.





March 16, 2011

Unclear Regulations Reduce Energy Innovation Investment



TerraPowerNuclearReactor2011-02-08.jpg


















"Source of graphic: online version of the WSJ article quoted and cited below.



(p. R3) Bill Gates reshaped the computer industry by pumping out new versions of Microsoft Windows software every few years, fixing and fine tuning it as he went along.

He's now betting that he can reshape the energy industry with a project akin to shipping Windows once and having it work, bug-free, for 50 years.

Thanks to his role funding and guiding a start-up called TerraPower LLC, where he serves as chairman, Mr. Gates has become a player in a field of inventors whose goal is to make nuclear reactors smaller, cheaper and safer than today's nuclear energy sources. The 30-person company recently completed a basic design for a reactor that theoretically could run untouched for decades on spent nuclear fuel. Now the company is seeking a partner to help build the experimental reactor, and a country willing to host it.

It's a long-term, risky endeavor for Mr. Gates and his fellow investors. The idea will require years to test, billions of dollars (not all from him) and changes in U.S. nuclear regulations if the reactor is to be built here. Current U.S. rules don't even cover the type of technology TerraPower hopes to use.

"A cheaper reactor design that can burn waste and doesn't run into fuel limitations would be a big thing," Mr. Gates says. He adds that in general "capitalism underinvests in innovation," particularly in areas with "long time horizons and where government regulations are unclear."


. . .


The company has made pitches in France and Japan, Mr. Myrhvold says; both have big nuclear-power industries. He's also made the rounds in Russia, China and India, he says. So far, there have been no takers.

One country he is certain won't be a customer anytime soon is the U.S., which doesn't yet have a certification process for reactors like TerraPower's. It would likely be a decade or more before the reactor could be tested on U.S. soil. "I don't think the U.S. has the willpower or desire to build new kinds of nuclear reactors," Mr. Myrhvold says. "Right now there's a long, drawn-out process."


. . .


Mr. Myrhvold says he hopes the process will speed up and spark innovation to meet the world's growing energy demand. "Let's try 20 ideas," he says. "Maybe five of them work. That's the only way to invent our way out of the pickle we're in."



For the full story, see:

ROBERT A. GUTH. "A Window Into the Nuclear Future; TerraPower--with the backing of Bill Gates--has a radical vision for the reactors of tomorrow." The Wall Street Journal (Mon., FEBRUARY 28, 2011): R3.

(Note: ellipses added.)





March 13, 2011

Defending the Right to Bear Arms



(p. 20) State Representative Jack Harper, who introduced a bill allowing professors to carry guns, said an Arizona State University professor, whom he has refused to identify, first raised the issue with him. "When law-abiding, responsible adults are able to defend themselves, crime is deterred," Mr. Harper said in a statement.

That is the philosophy in Arizona as a whole, where gun laws are among the least restrictive in the country. If law-abiding people can carry guns one step outside the campus to keep criminals at bay, supporters ask, why not allow them to enter a university with their firearms? That is already permitted in Utah, alone so far in allowing guns to be carried on all state campuses.

"I think that every person has the right to bear arms no matter what the circumstances," said Ashlyn Lucero, a political science student at Arizona State University who has served in the Marine Corps, is the daughter of a sheriff and grew up hunting.

Ms. Lucero carries her Glock pistol whenever possible and would carry it on campus if she could. "If I'm going out to eat somewhere, I usually have a gun with me always," she said. "It's just one of those things that you never know what's going to happen."

Thor Mikesell, a senior majoring in music who grew up hunting, is also a backer of allowing guns on campus. "There's no magic line, there's no magic barrier that makes me more safe on the campus than it is when I'm being a real person in the real world outside of the school," he said.


. . .


"This is not the 1890s' O.K. Corral shoot 'em up, bang 'em up," he said. "These are not vigilante kind of people. Their interest is their personal security and the security of their family."

The State Senate president, Russell Pearce, who recently said he would not prevent senators from taking guns into the Senate chamber despite rules against it, is an advocate for loosening as many gun restrictions as possible.


. . .


"Guns save lives, and it's a constitutional right of our citizens," Mr. Pearce said of the guns-on-campus proposal. Speaking of the Tucson shooting, which took place at a shopping center and not on a university campus, Mr. Pearce, a former sheriff's deputy, said, "If somebody had been there prepared to take action, they could have saved lives."



For the full story, see:

MARC LACEY. "Lawmakers Debate Effect of Weapons on Campus." The New York Times, First Section (Sun., February 27, 2011): 14 & 20.

(Note: ellipses added.)





March 6, 2011

What a Picture Is Worth



AppleLaptopEgyptianYouths2011-02-28.jpg"In Cairo, Egyptian youths used laptops to post video they had shot earlier Tuesday in Tahir Square. The group has been collecting accounts of the demonstrations and voices of the protesters, putting them on social networking sites like Facebook and Twitter." Source of caption and photo: online version of the NYT article quoted and cited below.


The photo above was at the top of the first page of the New York Times on Weds., Feb. 9, 2011. You have a group of lively, engaged, young people intoxicated with the idea that they may be helping to bring their country freedom. And in the center of the dark picture, amidst the conversations, is one youth looking with concentration at an Apple laptop, the sole source of color and illumination.

If I was Steve Jobs, I would value this one photo at more than a whole hour's worth of Superbowl ads.


The photo above was placed above the following story on the front page of the NYT:

DAVID D. KIRKPATRICK. "As Egypt Protest Swells, U.S. Sends Specific Demands." The New York Times (Weds., February 9, 2011): A1 & A12.

(Note: the online version of the article is dated February 8, 2011.)





March 2, 2011

Occupational Licensing Adds Billions a Year to Cost of Services



PercentageWorkersLicensedGraph2011-02-27.jpg














Source of graph: online version of the WSJ article quoted and cited below.



(p. A1) . . . economists--and workers shut out of fields by educational requirements or difficult exams--say licensing mostly serves as a form of protectionism, allowing veterans of the trade to box out competitors who might undercut them on price or offer new services.

"Occupations prefer to be li-(p. A16)censed because they can restrict competition and obtain higher wages," said Morris Kleiner, a labor professor at the University of Minnesota. "If you go to any statehouse, you'll see a line of occupations out the door wanting to be licensed."

While some states have long required licensing for workers who handle food or touch others--caterers and hair stylists, for example--economists say such regulation is spreading to more states for more industries. The most recent study, from 2008, found 23% of U.S. workers were required to obtain state licenses, up from just 5% in 1950, according to data from Mr. Kleiner. In the mid-1980s, about 800 professions were licensed in at least one state. Today, at least 1,100 are, according to the Council on Licensure, Enforcement and Regulation, a trade group for regulatory bodies. Among the professions licensed by one or more states: florists, interior designers, private detectives, hearing-aid fitters, conveyor-belt operators and retailers of frozen desserts.


. . .


Mr. Kleiner, of the University of Minnesota, looked at census data covering several occupations that are regulated in some states but not others, including librarians, nutritionists and respiratory therapists. He found that employment growth in those professions was about 20% greater, on average, in the unregulated states between 1990 and 2000.

Licensing can also drive up costs to consumers. Licensed workers earn, on average, 15% more than their unlicensed counterparts in other states--a premium that may be reflected in their prices, according to a study published by the National Bureau of Economic Research and conducted by Mr. Kleiner and Alan Krueger, an economist at Princeton University.

Mr. Kleiner estimates that across the U.S. economy, occupational licensing adds at least $116 billion a year to the cost of services, which amounts to about 1% of total consumer spending. In a look at dentistry, Mr. Kleiner found that the average price of dental services rose 11% when a state made it more difficult to get a dental license.



For the full story, see:

STEPHANIE SIMON. "A License to Shampoo: Jobs Needing State Approval Rise." The Wall Street Journal (Mon., February 7, 2011): A1 & A16.

(Note: ellipses added.)



JobsNeedingStateLicenseTable2011-02-27cropped.jpg"Some of the jobs that require licensing in one or more states." Source of caption and table: online version of the WSJ article quoted and cited above.





March 1, 2011

Property Rights Arise When Labor Creates Scarce Value



Marking snow-cleared parking spaces is a wonderful example of Demsetz's theory of how property rights tend to emerge when the efficiency gains are large enough.

I remember when I was a graduate student in Chicago sometime in the mid-to-late 1970s, there were a couple of very snowy winters in which Chicagoans would similarly claim spaces from which they had cleared the snow.

I remember, but alas did not save, an article (probably in the Chicago Tribune) documenting how someone "stole" a marked space, and later returned to find that a garden hose had been used to cover their car in a considerable layer of ice.


(p. 8A) CHICAGO (AP) -- A blizzard that dumped nearly 2 feet of snow on Chicago last week has revived a city tradition: Break out the patio furniture. Or, if none is available, suitcases, gar­bage cans, strollers, bar stools and milk crates work, too.

Chicagoans use all these items in a time-honored yet controver­sial system of preserving park­ing spots, a system known as "dibs."


. . .


Actually, a city ordinance makes the practice illegal.


. . .


Even the city's top police offi­cer sympathizes with those who do it.

"Think about it, you spend a couple hours clearing a spot, and somebody from another block takes it?" Superintendent Jody Weis said Friday.


. . .


"This is my spot because I worked hard to dig my car out," said Max Rosario, 27, just be­fore he put his patio chair on the street. It joined 16 chairs, one slab of plywood, a plastic kids table, three bar stools and a TV dinner tray, among other things.



For the full story, see:

AP. "Chicagoans calling dibs after digging out; Chairs and other objects save precious parking spots that have been shoveled." Omaha World-Herald (Sun., FEBRUARY 6, 2011): 8A.

(Note: ellipses added.)


The Demsetz paper is:

Demsetz, Harold. "Toward a Theory of Property Rights." American Economic Review 57, no. 2 (May 1967): 347-59.





February 28, 2011

Kappos Says Private Company Would Have Run Patent Office Better



KapposDavidPatent2011-02-27.jpg "David Kappos of the Patent Office, with an Edison bulb." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A1) "There is no company I know of that would have permitted its information technology to get into the state we're in," David J. Kappos, who 18 months ago became director of the Patent and Trademark Office and undersecretary of commerce for intellectual property, said in a recent interview. "If it had, the C.E.O. would have been fired, the board would have been thrown out, and you would have had shareholder lawsuits."

Once patent applications are in the system, they sit -- for years. The patent office's pipeline is so clogged it takes two years for an inventor to get an initial ruling, and an additional year or more before a patent is finally issued.

The delays and inefficiencies are more than a nuisance for inventors. Patentable ideas are the basis for many start-up companies and small businesses. Venture capitalists often require start-ups to have a patent before offering financing. That means that patent delays cost jobs, slow the economy and threaten the ability of American companies to compete with foreign businesses.



For the full story, see:

EDWARD WYATT. "U.S. Sets 21st-Century Goal: Building a Better Patent Office." The New York Times (Mon., February 21, 2011): A1 & A3.

(Note: the online version of the article is dated February 20, 2011.)





February 25, 2011

Paul Romer Looking to Found a "Charter City"



Romer's idea of setting up a Charter City sounds like a more advanced version of a free trade zone. It might work if you could find a well-governed nation to serve as guarantor of the city's charter. That's a big "if."

Still, it's a more intriguing idea for advancing economic development than most of the default policies (like sending foreign aid to be stolen by corrupt dictators).



(p. A2) For the past couple of years, economist Paul Romer has been hopscotching the globe looking for a country desperate enough to try his audacious notion: Start a new "charter city," an enclave free of old laws and practices, as William Penn did in Pennsylvania. (Think "charter school," a school free of union contracts and school bureaucracy.)


. . .


About a decade ago, he walked away from academia, started an online teaching company, sold it and then turned to his next big idea: To create jobs to lift millions out of poverty, take an uninhabited 1,000 square-kilometer tract (386 square miles), about the size of Hong Kong, preferably government-owned. Write a charter: the all-important rules. Allow anyone to move in or out. Invite foreign investors to build infrastructure for profit. And sign a treaty with a well-governed country, say Norway or Canada, to serve as "guarantor" to assure investors and residents that the charter will be respected, much as the British once did for Hong Kong, and--. . . .



For the full story, see:

DAVID WESSEL. "CAPITAL; The Quest for a 'Charter City'." The Wall Street Journal (Thurs., FEBRUARY 3, 2011): A2.

(Note: ellipses added.)





February 18, 2011

Bloggers See Bad Conditions for Entrepreneurs



conditions.gif


The chart above and the one below are from the recently-released results of the First Quarter 2011 influential blogger survey conducted by the Kauffman Foundation. (Tim Kane gave permission to put the charts on my blog.) artdiamondblog.com is one of the blogs included in the survey.

The results above show a perception that conditions are currently tough for entrepreneurs. The chart below displays one of the main reasons: the current economy is perceived as uncertain and fragile. There are many reasons for the uncertainty, but one of them is surely that the bloggers have doubts about the depth of support in government for the institutions and policies upon which entrepreneurship depends (like private property, restrained regulations, and low taxes).


For a full PDF report on the 2011 Q1 survey results, see:

http://www.kauffman.org/uploadedfiles/econ_blogger_outlook_q1_2011.pdf



word-cloud.gif






February 17, 2011

Insider Training Increases the Efficiency of Markets



(p. W2) As argued forcefully by Henry Manne in his 1966 book "Insider Trading and the Stock Market," prohibitions on insider trading prevent asset prices from adjusting in this way. Mr. Manne, dean emeritus at George Mason University School of Law, pointed out that when insiders trade on their nonpublic, nonproprietary information, they cause asset prices to reflect that information sooner than otherwise and therefore prompt other market participants to make better decisions.

This achievement can have ramifications beyond a few percentage-point increases in productivity growth.

According to Mr. Manne, corporate scandals such as Enron and Global Crossing would occur much less frequently and impose fewer costs if the government didn't prohibit insider trading. As Mr. Manne said a few years ago in a radio interview, "I don't think the scandals would ever have erupted if we had allowed insider trading because there would be plenty of people in those companies who would know exactly what was going on, and who couldn't resist the temptation to get rich by trading on the information, and the stock market would have reflected those problems months and months earlier than they did under this cockamamie regulatory system we have."

Another potential benefit of lifting the ban on insider trading is explained by Harvard University economist Jeffrey Miron: "In a world with no ban, small investors might fear to trade individual stocks and would face a greater incentive to diversify; that is also a good thing."



For the full commentary, see:

DONALD J. BOUDREAUX. "Learning to Love Insider Trading; Here's a hot tip: Want to keep companies honest, make the markets work more efficiently and encourage investors to diversify? Let insiders buy and sell, argues Donald J. Boudreaux." The Wall Street Journal (Sat., OCTOBER 24, 2009): W1-W2.


The book mentioned is:

Manne, Henry. Insider Trading and the Stock Market. New York: The Free Press, 1966.





February 1, 2011

Federal Regulations Hurt Small Toy Makers



(p. C12) The story begins in 2007, an unusually good year for Peapods Natural Toys and Baby Care, in St. Paul, Minn., and many similar mom-and-pop businesses. Frightened by news that toys made in China contained unsafe levels of lead, customers were looking for alternatives to the usual big-box offerings. Just as organic farmers gain market share whenever there's a food-safety panic, the lead scare boosted sales of artisanal children's goods. "People wanted made-in-USA products, and we were the only place in town that had them," says Dan Marshall, the owner of Peapods.

Vendors offering organic materials and a personal touch seemed poised to prosper. But the short-term boon soon turned into a long-term disaster. In response to the lead panic, Congress passed the Consumer Product Safety Improvement Act, or CPSIA, by an overwhelming majority. The law mandates third-party testing and detailed labels not only for toys but for every single product aimed at children 12 and under.


. . .


Although big companies like Mattel could spread the extra costs over millions of toys, Mr. Marshall's small-scale suppliers couldn't. Unable to afford thousands of dollars in testing per product, some went out of business. Others moved production to China to cut costs. Many slashed their product lines, reserving the expensive new tests for only their top sellers. The European companies that used to sell Peapods such specialty items as wooden swords and shields or beeswax-finished cherry-wood rattles simply abandoned the U.S. market. The survivors jacked up prices.



For the full commentary, see:

VIRGINIA POSTREL. "COMMERCE & CULTURE; Small Crafts vs. Big Government." The Wall Street Journal (Sat., January 29, 2011): C12.

(Note: ellipsis added.)





January 31, 2011

Feds Protect Us from Freshly Baked Cookies



MastersElementaryBakeSale2011-01-30.jpg
"Schools like Omaha's Masters Elementary, which held a recent holiday bake sale, count on the profits from selling cupcakes, caramel corn and other goodies to raise money for field trips and other activities." Source of caption and photo: online version of the Omaha World-Herald article quoted and cited below.



(p. 1A) A business club at Millard West High School peddles freshly baked cookies, raking in $15,000 annually to help send students to national conferences.

At Omaha's Masters Elementary, cupcakes, fudge and other bake-sale treats raise $500 for field trips, rain jackets for the safety patrol and playground equipment.

But the federal government could slam the brakes on those brownies and lower the boom on the lemon bars.

A child nutrition bill passed recently by Congress gives a fed­eral agency the power to limit the frequency of school bake sales and other school-sponsored fundraisers that sell unhealthy food.

To some, the bake sale provision makes about as much sense as leav­ing the marshmallows out of Rice Krispies treats.

It maybe makes sense for the fed­eral government to monitor the qual­ity of ground beef, eggs and milk sold in grocery stores. But caramel corn and snicker doodles whipped up by parents for school bake sales?

"Aren't there more important (p. 2A) things for them to be wor­ried about?" Sandy Hatcher, president of Masters' parent organization, said of the fed­eral government.



For the full story, see:

MICHAEL O'CONNOR. "Putting the brakes on bake sales; New federal rules on frequency during school day may affect fundraising." Omaha World-Herald (Sun., December 12, 2010): 1A-2A.






January 28, 2011

Patent Processing Delay Increases to 3.82 Years




Economists who study patents, sometimes have found that outside of pharmaceuticals, patents seldom have strong positive effects on innovation. That has led some economists and policy advisers to conclude that the patent system has more costs than benefits. But another possibility, supported by facts in the article quoted below, is that the patent system is badly designed and badly implemented.

So rather than abandon the patent system, maybe we should reform its rules, and allow the Patent Office to keep all of its fees to use for hiring and training more staff to process patents.



(p. 4A) MILWAUKEE -- A year and a half after President Barack Obama appointed an IBM Corp. executive to fix the U.S. Patent and Trademark Office, it still cannot keep up with its work­load, continuing to battle the ef­fects of years of congressional raids on its funding.


. . .


Also unchanged is a bureau­cracy that publishes entire pat­ent applications online 18 months after they are filed, whether they have been acted upon or not. That puts American ingenuity up for grabs, free to anyone with an Internet connection.


. . .


Applications now languish so long that technologies can be­come obsolete before a patent is ruled upon.

Consider:

>> The agency took 3.82 years on average for each patent it is­sued last year, up from 3.66 years in 2009 and 3.47 in 2008. Many took years longer.

>> The total number of appli­cations awaiting a final decision remains stuck at 1.22 million, nearly unchanged from levels of the past three years.

>> The agency imposed a hiring freeze in 2009 and lost examiners last year, and has been unable to replace them because of budget constraints.

In 2010, the Patent Office col­lected $53 million in fees that it wasn't allowed to keep, according to limits imposed by Congress.

Delays by the Patent Office often inflict the deepest damage on garage inventors and start-up companies that may have no oth­er assets than their unprotected ideas.


. . .


"A lot of companies actually die awaiting their patent because the Patent Office is so slow," said Michel, the former patent court judge.



For the full story, see:

MILWAUKEE JOURNAL SENTINEL. "Patent agency more harm than help for many inventors; Though more than 1 million applications are stalled, they're already posted online." Omaha World-Herald (Sun., January 23, 2011): 4A.

(Note: ellipses added.)





January 27, 2011

Stranded Chinese Drivers Curse Government and Buy Noodles from Entrepreneurs



StrandedTrafficChinaEntrepreneurs2011-01-21.jpg"Enterprising residents of Hetaocun sold food to stranded travelers at a markup." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A7) HETAOCUN, China -- Compared with some of the more spectacular recent traffic jams in China, among them a 60-mile snarl last summer that paralyzed a major artery outside Beijing for two weeks, the thousands of travelers who spent the night trapped on a snow-coated highway in southwest Guizhou Province on Monday did not even warrant a mention in the local news media.


. . .


Stranded drivers chain-smoked, stomped their feet against the chill and cursed the government for failing to come to their rescue. As the night wore on, fuel lines froze and cellphone batteries died.

The residents of Hetaocun, however, saw the unmoving necklace of taillights from their mountain village and got entrepreneurial. They roused children from their beds, loaded boxes of instant noodles into baskets and began hawking their staples to a captive clientele. The 500 percent markup did not appear to dent sales.

"It rarely snows here, so this is a good thing," said Yi Zhonggui, 42, as he wove past stalled vehicles with his wife and 4-year-old daughter lugging thermoses of hot water.

As the supply of noodles ran low, residents began gathering up the walnuts that give the village its name. In between cries of "walnuts, walnuts," salesmen like Chen Xianneng obliged the desperate with snippets of news from the front, even if the information was based on hearsay.



For the full story, see:

ANDREW JACOBS. "Hetaocun Journal; As Traffic Backs Up, Villagers See Opportunity." The New York Times (Weds., JANUARY 19, 2011): A7.

(Note: ellipsis added.)

(Note: the online version of the article is dated January 18, 2011 and has the title "Hetaocun Journal; In China, Traffic Jam Benefits Enterprising Villagers.")





January 24, 2011

Fluorescent Bulbs Burn Out Much Faster than Utility Predicted



(p. A5) When it set up its bulb program in 2006, PG&E Corp. thought its customers would buy 53 million compact fluorescent bulbs by 2008. It allotted $92 million for rebates, the most of any utility in the state. Researchers hired by the California Public Utilities Commission concluded earlier this year that fewer bulbs were sold, fewer were screwed in, and they saved less energy than PG&E anticipated.

As a result of these and other adjustments, energy savings attributed to PG&E were pegged at 451.6 million kilowatt hours by regulators, or 73% less than the 1.7 billion kilowatt hours projected by PG&E for the 2006-2008 program.

One hitch was the compact-fluorescent burnout rate. When PG&E began its 2006-2008 program, it figured the useful life of each bulb would be 9.4 years. Now, with experience, it has cut the estimate to 6.3 years, which limits the energy savings. Field tests show higher burnout rates in certain locations, such as bathrooms and in recessed lighting. Turning them on and off a lot also appears to impair longevity.



For the full story, see:

REBECCA SMITH. "The New Light Bulbs Lose a Little Shine; Compact Fluorescent Lamps Burn Out Faster Than Expected, Limiting Energy Savings in California's Efficiency Program." The Wall Street Journal (Weds., JANUARY 19, 2011): A5.





January 13, 2011

Witch Tax Rebellion in Romania: "We Do Harm to Those Who Harm Us"



(p. 16A) MOGOSOIA, Romania--Everyone curses the tax man, but Romanian witches angry about having to pay up for the first time are planning to use cat excrement and dead dogs to cast spells on the president and government.

Also among Romania's newest taxpayers are fortune tellers--but they probably should have seen it coming.


. . .


Romanian witches from the east and west will head to the southern plains and the Danube River on Thursday to threaten the government with spells and spirits because of the tax law, which came into effect Jan. 1.

A dozen witches will hurl the poisonous mandrake plant into the Danube to put a hex on government officials "so evil will befall them," said a witch named Alisia. She identified herself with one name--customary among Romania's witches.


. . .


. . . spiritualism has long been tolerated by the Orthodox Church in Romania, and the late Communist dictator Nicolae Ceausescu and his wife, Elena, had their own personal witch.

Queen witch Bratara Buzea, 63, who was imprisoned in 1977 for witchcraft under Ceausescu's repressive regime, is furious about the new law.

Sitting cross-legged in her villa in the lake resort of Mogosoaia, just north of Bucharest, she said Wednesday she planned to cast a spell using a particularly effective concoction of cat excrement and a dead dog, along with a chorus of witches.

"We do harm to those who harm us," she said. "They want to take the country out of this crisis using us? They should get us out of the crisis because they brought us into it."



For the full story, see:

ALISON MUTLER. "Witches Curses Over Paying Tax." The Denver Post (Thurs., January 6, 2011): 16A.

(Note: ellipses added.)

(Note: the online version of the article has the title "Curses! Romania's witches forced to pay income tax.")


If you prefer a briefer version of the witch story, you may consult:

The Associated Press. "A Tax on Witches? A Pox on the President." The New York Times (Fri., January 7, 2011): A9.

(Note: the online version of the NYT article is dated January 6, 2011.)





January 3, 2011

Not Long on Dong---Vietnam's Proletariat Use American Dollar Instead



HanoiBlackMarketMoneyExchange2010-12-29.jpg "A black-market money exchange in Hanoi trades dong for dollars." Source of caption and photo: online version of the WSJ article quoted and cited below.


They say that for children, 'a spoonful of sugar helps the medicine go down.' Maybe for adults, a spoonful of irony helps the zeitgeist go down?

America lost the war in Vietnam to the Communist Vietcong. Now, the Vietnam government, consisting of the linear descendants of the Communist Vietcong, has so run their currency (the dong) into the ground, that Vietnam's proletariat are choosing to use the American dollar instead of the Vietnamese dong.


(p. C1) HO CHI MINH CITY, Vietnam--At a time when many emerging markets are trying to stem a destabilizing rise in their local currencies against the dollar, up-and-coming Vietnam is grappling with a rather different problem: Residents can't get enough of the U.S. greenback, as their own currency, the dong, threatens to spiral lower.


. . .


. . . the Communist-run government's determination to hit persistently high growth targets, coupled with state-directed lending growth of more than 30% annually in recent years, have flooded Vietnam's economy with money and created a raft of problems for the local currency. The excess capital has triggered a sharper uptick in inflation than has been seen in other emerging markets, stripping confidence in the dong as residents doubt their government can manage rising costs in the months ahead.


. . .


. . . , the government is projecting an inflation rate of at least 7% a year for the next five years, far higher than its neighbors, in a sign that it intends to pursue its target-driven, growth-at-all-costs policies.

"This isn't a sustainable way to run an economy," says Nguyen Quang A, an economist who ran Vietnam's only independent economic think tank until its founders opted to close it amid tightening government censorship.



For the full story, see:

JAMES HOOKWAY. "Vietnam Battles Dark Side of Boom." The Wall Street Journal (Thurs., DECEMBER 16, 2010): C1-C2.

(Note: ellipses added.)

(Note: the online version of the article is dated DECEMBER 15, 2010; the last couple of sentences (starting with "the government") appear in the online, but not in the print, version of the article.)





December 31, 2010

The Glamour of Trains and Windmills Hides Their High Costs



(p. C12) When Robert J. Samuelson published a Newsweek column last month arguing that high-speed rail is "a perfect example of wasteful spending masquerading as a respectable social cause," he cited cost figures and potential ridership to demonstrate that even the rosiest scenarios wouldn't justify the investment. He made a good, rational case--only to have it completely undermined by the evocative photograph the magazine chose to accompany the article.

The picture showed a sleek train bursting through blurred lines of track and scenery, the embodiment of elegant, effortless speed. It was the kind of image that creates longing, the kind of image a bunch of numbers cannot refute. It was beautiful, manipulative and deeply glamorous.


. . .


The problems come, of course, in the things glamour omits, including all those annoyingly practical concerns the policy wonks insist on debating. Neither trains nor wind farms are as effortlessly liberating as their photos suggest. Neither really offers an escape from the world of compromises and constraints. The same is true, of course, of evening gowns, dream kitchens and tropical vacations. But at least the people who enjoy that sort of glamour pay their own way.



For the full commentary, see:

VIRGINIA POSTREL. "COMMERCE & CULTURE; The Allure of Techno-Glamour." The Wall Street Journal (Sat., NOVEMBER 20, 2010): C12.

(Note: ellipsis added.)





December 28, 2010

Environmentalist Antiglobalization "Vandals" Destroy Giorgio's Corn



FidenatoGiorgioItalianFarmer2010-12-21.jpg "Last week, Giorgio Fidenato, who had planted genetically modified corn, stood amid stalks that had been trampled by antiglobalization activists." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A4) VIVARO, Italy -- Giorgio Fidenato declared war on the Italian government and environmental groups in April with a news conference and a YouTube video, which showed him poking six genetically modified corn seeds into Italian soil.

In fact, said Mr. Fidenato, 49, an agronomist, he planted two fields of genetically modified corn. But since "corn looks like corn," as he put it, it took his opponents weeks to find his crop.

The seeds, known as MON810, are modified so that the corn produces a chemical that kills the larvae of the corn borer, a devastating pest. Yet while European Union rules allow this particular seed to be planted, Italy requires farmers to get special permission for any genetically modified, or G.M., crop -- and the Agriculture Ministry never said yes.

"We had no choice but to engage in civil disobedience -- these seeds are legal in Europe," said Mr. Fidenato, who has repeatedly applied for permission, adding that he drew more inspiration from Ron Paul than Gandhi.


. . .


After Mr. Fidenato's provocation, investigators did genetic testing to identify the locations of the offending stalks in the sea of cornfields that surround this tiny town. Officials seized two suspect fields -- about 12 acres -- and declared the plantings illegal. Greenpeace activists surreptitiously snipped off the stalks' tassels in the hope of preventing pollen from being disseminated.

On Aug. 9, 100 machete-wielding environmental activists from an antiglobalization group called Ya Basta descended on Vivaro and trampled the field before local police officers could intervene. They left behind placards with a skull and crossbones reading: "Danger -- Contaminated -- G.M.O."

Giancarlo Galan, who became agriculture minister in April, called the protesters "vandals," although he did not say he would allow genetically modified crops. But Luca Zaia, the previous agriculture minister and president of the nearby Veneto region, applauded the rampage, saying: "There is a need to show multinationals that they can't introduce Frankenstein crops into our country without authorization."

Over the past decade, genetically modified crops have been a major (p. A8) source of trade friction between Europe and the United States.

Both the United States Food and Drug Administration and the European Food Safety Agency say that there is no scientific evidence that eating MON810 corn is dangerous.


. . .


. . . it is not clear that the battle of Vivaro will have a quick victor. Jail time or at least fines are expected for Mr. Fidenato (illegal planting) and Mr. Tornatore (trespassing and destroying private property).



For the full story, see:

ELISABETH ROSENTHAL. "In the Fields of Italy, a Conflict Over Corn." The New York Times (Tues., August 24, 2010): A4 & A8.

(Note: ellipses added.)

(Note: the online version of the review has the date August 23, 2010.)



CornBorer2010-12-21.jpg"An ear of corn infested with corn borers. A modified variety is meant to counteract the pest." Source of caption and photo: online version of the NYT article quoted and cited above.





December 27, 2010

Government Mandates Insurers Pay for $4,300 Tests on Potential Donors Recruited by $60,000 a Week "Flirtatious Models"



(p. A16) BOSTON -- On its face, it seemed reasonable enough: a bone marrow registry sending recruiters to malls, ballparks and other busy sites to enlist potential donors.

But the recruiters were actually flirtatious models in heels, short skirts and lab coats, law enforcement officials say, asking passers-by for DNA swabs without mentioning the price of the seemingly simple procedure. And the registry, Caitlin Raymond International, was paying up to $60,000 a week for the models while billing insurance companies up to $4,300 per test.


. . .


The registry is a nonprofit subsidiary of UMass Memorial Medical Center in Worcester, . . .


. . .


James T. Boffetti, the state's senior assistant attorney general, said the registry had hired models based on their photographs and had given them "explicit instructions" to wear heels and short skirts.


. . .


New Hampshire passed a law in 2006 requiring insurers to pay for tissue-typing tests for potential bone marrow donors.



For the full story, see:

ABBY GOODNOUGH. "Flirty Models Were Hired in Bid to Find Bone Marrow." The New York Times (Fri., December 17, 2010): A16.

(Note: ellipses added.)

(Note: the online version of the article is dated December 16, 2010.)





December 23, 2010

"Can Congress Tell Us to Join a Gym?"



(p. A31) HENRY E. HUDSON, the federal judge in Virginia who ruled this week that the individual mandate provision of the new health care law is unconstitutional, has become the object of widespread derision. Judge Hudson explained that whatever else Congress might be able to do, it cannot force people to engage in a commercial activity, in this case buying an insurance policy.

Critics contend that Judge Hudson has unduly restricted Congress's authority to regulate interstate commerce, the principal basis on which the government defends the law. Some also claim that he ignored the "necessary and proper" clause of the Constitution, which allows Congress leeway to choose how to put in place national economic programs. Yet a closer reading shows that Judge Hudson's analysis could prove irresistible to the Supreme Court and that there is a reasonable chance it will agree that the insurance mandate is invalid.


. . .


Indeed, the court has never confronted a federal statute that forces people to engage in some action like this. The conservative justices in particular will no doubt wonder what else Congress can make Americans do if it can make us buy health insurance. Can Congress tell us to join a gym because fit people have fewer chronic diseases? Can Congress direct us to purchase a new Chrysler to help Detroit get back on its feet?



For the full commentary, see:

JASON MAZZONE. "Can Congress Force You to Be Healthy?" The New York Times (Fri., December 17, 2010): A31.

(Note: ellipsis added.)

(Note: the online version of the article is dated December 16, 2010.)





December 20, 2010

Government "Gave People the Crazy Juice"



BoettkePete2010-12-19.jpg "Peter J. Boettke of George Mason University is the emerging standardbearer for a revived Austrian school of economics." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. B1) Peter J. Boettke, shuffling around in a maroon velour track suit or faux-leather rubber shoes he calls "dress Crocs," hardly seems like the type to lead a revolution.

But the 50-year-old professor of economics at George Mason University in Virginia is emerging as the intellectual standard-bearer for the Austrian school of economics that opposes government intervention in markets and decries federal spending to prop up demand during times of crisis. Mr. Boettke, whose latest research explores people's ability to self-regulate, also is minting a new generation of disciples who are spreading the Austrian approach throughout academia, where it had long been left for dead.

To these free-market economists, government intrusion ultimately sows the seeds of the next crisis. It hampers what one famous Austrian, Joseph Schumpeter, called the process of "creative destruction."


. . .


(p. B3) It wasn't a lack of government oversight that led to the crisis, as some economists argue, but too much of it, Mr. Boettke says. Specifically, low interest rates and policies that subsidized homeownership "gave people the crazy juice," he says.




For the full story, see:

KELLY EVANS. "Spreading Hayek, Spurning Keynes; Professor Leads an Austrian Revival." The Wall Street Journal (Sat., AUGUST 28, 2010): B1 & B3.

(Note: ellipsis added.)





December 14, 2010

"Pumping Your Own Gas Is Illegal in New Jersey" and Oregon



CorcoranWillPumpsGasNJ2010-12-13.jpg "Will Corcoran pumps gas at Tim's Westview in Ridgefield Park. Pumping your own gas has been illegal in New Jersey for 61 years." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. A1) RIDGEFIELD PARK, N.J.--People in New Jersey pick their own strawberries. They chop down their own Christmas trees. They check themselves in at airports and check themselves out at supermarkets. Lately, a few New Jerseyans have been wondering whether it isn't about time they were allowed to pump their own gas.

Pumping your own gas is illegal in New Jersey. It has been for 61 years. It's also illegal in Oregon, and in the New York town of Huntington, on Long Island. Just about everywhere else, self-serving Americans do it themselves. As paying at the pump gets easier, the gas station attendant is fast going the way of the elevator operator.

Don't tell Will Corcoran. When you pull into Tim's Westview, a Gulf station across from the train tracks in this north Jersey town, you'll sit in your car while he fills your tank.

Under a cold rain one weekday, he stood at the driver's window of a Chevy, bent over, yakking. He wore blue. His cap had Gulf Oil's orange disk on it. After his customer signed the credit slip (Tim's pumps don't process cards), Mr. Corcoran, 42 years old, shook hands and saluted like a gas jockey in an old commercial.




For the full story, see:

BARRY NEWMAN. "Self-Service Nation Ends at Garden State Gas Pumps; Changing Law May or May Not Lower Prices; 'New Jersey Is Heaven!'." The Wall Street Journal (Sat., NOVEMBER 27, 2010): A1 & A14.






December 11, 2010

The Psychology of How Power Corrupts



(p. B1) Being in a position of power . . . may make people feel that they can do no wrong. In recent experiments, Dana Carney, a psychologist at Columbia University's business school, has found that acquiring power makes people more comfortable committing acts they might otherwise be reluctant to commit, like lying or cheating. As people rise to a position of power, she has shown, their bodies generate more testosterone, a hormone associated with aggression and risk-taking, and less cortisol, a chemical that the body generates in response to stress.

"Having power changes you physiologically, reducing your body's internal feedback that tells you which actions are good or bad," says Prof. Carney. "Power temporarily intoxicates you."



For the full commentary, see:

JASON ZWEIG. "THE INTELLIGENT INVESTOR; What Conflict of Interest? How Power Blinds Us to Our Flaws." The Wall Street Journal (Sat., OCTOBER 16, 2010): B1.

(Note: ellipsis added.)






December 2, 2010

Castro's Reform: Private Restaurants May Now Have Up to 20 Seats



CubanRestaurant2010-11-14.jpg "Restaurants, . . . , offer limited menus." Source of caption: print version of the WSJ article quoted and cited below. Source of photo: online version of the WSJ article quoted and cited below.


(p. A18) HAVANA--A package of capitalist reforms from President Raúl Castro is creating something new for many Cubans: uncertainty.

Since 1959, when Fidel Castro rode into Havana atop a tank, the Cuban state has promised its people the certainty of a job, food, education and health care. No one expected to get rich under the arrangement; the old joke here is that people pretend to work, and the government pretends to pay them.


. . .


On the island, where many Cubans have taken to using the word "changes," rather than "reforms," to refer to the restructuring, people remain cautious. Some suspect that once the economy recovers and small businesses begin to grow, the Cuban government will tighten the noose on entrepreneurs with stricter regulation and steep taxes.

A restaurant on Calle Animas offers an example of such frustrations. Opened in 1996 after an effort by Fidel Castro to jump-start the domestic economy after the collapse of the Soviet Union, it has never expanded, because of a law that limits privately owned restaurants to only 12 seats. "It's the rules, you live by them," the owner says.

Prices are high--about $20 for a lunch with fish from the fixed menu--largely, the owner says, because she can't find ingredients anywhere except in underground markets, where prices are steep. Under the new rules, private restaurants will be permitted to have up to 20 seats. Still, the owner complains that state-run restaurants in the tourist district, which don't face such restrictions, have many more than 20 seats.




For the full story, see:

A WSJ Staff Reporter. "Cubans Dip a Toe in Capitalist Waters; As State Cuts Half a Million Jobs, Future Looks Murky to Some; 'We're Being Left to Fend for Ourselves'." The Wall Street Journal (Weds., October 6, 2010): A18.

(Note: ellipses added.)






November 30, 2010

Syrian Government Wastes Water in Drought:         "No Money, No Job, No Hope"



SyrianRefugeesDrought2010-11-14.jpg "Refugees have left their farmlands and are living in tents in Ar Raqqah, Syria, because of a drought." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. A1) AR RAQQAH, Syria -- The farmlands spreading north and east of this Euphrates River town were once the breadbasket of the region, a vast expanse of golden wheat fields and bucolic sheep herds.

Now, after four consecutive years of drought, this heartland of the Fertile Crescent -- including much of neighboring Iraq -- appears to be turning barren, climate scientists say. Ancient irrigation systems have collapsed, underground water sources have run dry and hundreds of villages have been abandoned as farmlands turn to cracked desert and grazing animals die off. Sandstorms have become far more common, and vast tent cities of dispossessed farmers and their families have risen up around the larger towns and cities of Syria and Iraq.

"I had 400 acres of wheat, and now it's all desert," said Ahmed Abdullah, 48, a farmer who is living in a ragged burlap and plastic tent here with his wife and 12 children alongside many other migrants. "We were forced to flee. Now we are at less than zero -- no money, no job, no hope."


. . .


(p. A17) The drought has become a delicate subject for the Syrian government, which does not give foreign journalists official permission to write about it or grant access to officials in the Agriculture Ministry. On the road running south from Damascus, displaced farmers and herders can be seen living in tents, but the entrances are closely watched by Syrian security agents, who do not allow journalists in.

Droughts have always taken place here, but "the regional climate is changing in ways that are clearly observable," said Jeannie Sowers, a professor at the University of New Hampshire who has written on Middle East climate issues. "Whether you call it human-induced climate change or not, much of the region is getting hotter and dryer, combined with more intense, erratic rainfall and flooding in some areas. You will have people migrating as a result, and governments are ill prepared."

The Syrian government has begun to acknowledge the scale of the problem and has developed a national drought plan, though it has not yet been put in place, analysts say. Poor planning helped create the problem in the first place: Syria spent $15 billion on misguided irrigation projects between 1988 and 2000 with little result, said Elie Elhadj, a Syrian-born author who wrote his Ph.D. dissertation on the topic. Syria continues to grow cotton and wheat in areas that lack sufficient water -- making them more vulnerable to drought -- because the government views the ability to produce those crops as part of its identity and a bulwark against foreign dependence, analysts say.



For the full story, see:

ROBERT F. WORTH. "Parched Earth Where Syrian Farms Thrived." The New York Times (Thurs., October 14, 2010): A1 & A17.

(Note: ellipsis added.)

(Note: the online version of the article is dated October 13, 2010 and has the title "Earth Is Parched Where Syrian Farms Thrived.")



SyriaMaps2010-11-14.jpg

















Source of maps: online version of the NYT article quoted and cited above.





November 29, 2010

School Choice "Makes Parents and Students Happier with Their Schools"




Davis Guggenheim's "Waiting for 'Superman'" movie has brought renewed attention to the case for school choice. New York Times commentator Ross Douthat reasonably discusses that case:


(p. A21) Guggenheim's movie, which follows five families through the brutal charter school lotteries that determine whether their kids will escape from public "dropout factories," stirs an entirely justified outrage at the system's unfairnesses and cruelties. This outrage needs to be supplemented, though, with a dose of realism about what education reformers can reasonably hope to accomplish, and what real choice and competition would ultimately involve.

With that in mind, I have a modest proposal: Copies of Frederick Hess's recent National Affairs essay, "Does School Choice 'Work'?" should be handed out at every "Waiting for 'Superman' " showing, as a sober-minded complement to Guggenheim's cinematic call to arms.


. . .


A real marketplace in education, he suggests, probably wouldn't fund schools directly at all. It would only fund students, tying a school's budget to the number of children seeking to enroll. If there are 150 applicants for a charter school, they should all bring their funding with them -- and take it away from the failing schools they're trying to escape.

This is a radical idea, guaranteed to meet intense resistance from just about every educational interest group. But Hess makes a compelling case that it needs to be the school choice movement's long-term goal, if reformers hope to do more than just tinker around the edges of the system.

In the shorter term, meanwhile, he suggests that school choice advocates need to make a case for greater competition that doesn't depend on test scores alone. Maybe charter schools, merit pay and vouchers won't instantly turn every American child into a test-acing dynamo. But if they "only" create a more cost-effective system that makes parents and students happier with their schools -- well, that would be no small feat, and well worth fighting for.



For the full commentary, see:

ROSS DOUTHAT. "Grading School Choice." The New York Times (Mon., October 11, 2010): A21.

(Note: ellipsis added.)

(Note: the online version of the commentary is dated October 10, 2010.)


The Hess article is:

Hess, Frederick M. "Does School Choice "Work"?" National Affairs, Issue 5, FALL 2010.





November 23, 2010

When Inventors Could Get Patents that Were Durable and Enforceable, "the World Started to Change"



(p. 50) . . . Coke, who had . . . been made Lord Chief Justice of' England, drafted the 1623 "Act concerning Monopolies and Dispensations with penall Lawes and the Forfeyture thereof," or, as it has become known, the Statute on Monopolies. The Act was designed to promote the interests of artisans, and eliminate all traces of monopolies.

With a single, and critical, exception. Section 6 of the Statute, which forbade every other form of monopoly, carved out one area in which an exclusive franchise could still be granted: Patents could still be awarded to the person who introduced the invention to the realm--to the "first and true inventor."

This was a very big deal indeed, though not because it represented the first time inventors received patents. The Venetian Republic was offering some form of patent protection by 1471, and in 1593, the Netherlands' States-General awarded a patent to Mathys Siverts, for a new (and unnamed) navigational instrument. And, of course, Englishmen like John of Utynam had been receiving patents for inventions ever since Henry VI. The difference between Coke's statute and the customs in place before and elsewhere is that it was a law, with all that implied for its durability and its enforceability. Once only inventors could receive patents, the world started to change.



Source:

Rosen, William. The Most Powerful Idea in the World: A Story of Steam, Industry, and Invention. New York: Random House, 2010.

(Note: italics in original; ellipses added.)





November 20, 2010

Capitalism's Market Entrepreneurs Benefit the Common Man



VanderbiltFiskCartoon2010-11-14.jpg"Rails to riches: An 1870 cartoon depicting James Fisk's attempt to stop Cornelius Vanderbilt from gaining control of the Erie Railroad Company." Source of caption and cartoon: online version of the WSJ article quoted and cited below.


I have read H.W. Brands' Masters of Enterprise book and found that it contained some interesting anecdotes, but not very insightful interpretation. From Amity Shlaes' uswdul review quoted below, I would expect the same from Brands' most recent book.


(p. C7) Mr. Brands laments that capitalism's triumph in the late 19th century created a disparity between the "wealthy class" and the common man that dwarfs any difference of income in our modern distribution tables. But this pitting of capitalism against democracy will not hold. When the word "class" crops up in economic discussions, watch out: it implies a perception of society held in thrall to a static economy of rigid social tiers. Capitalism might indeed preclude democracy if capitalism meant that rich people really were a permanent class, always able to keep the money they amass and collect an ever greater share. But Americans are an unruly bunch and do not stay in their classes. The lesson of the late 19th century is that genuine capitalism is a force of creative destruction, just as Joseph Schumpeter later recognized. Snapshots of rich versus poor cannot capture the more important dynamic, which occurs over time.

One capitalist idea (the railroad, say) brutally supplants another (the shipping canal). Within a few generations--and in thoroughly democratic fashion--this supplanting knocks some families out of the top tier and elevates others to it. Some poor families vault to the middle class, others drop out. If Mr. Brands were right, and the "triumph of capitalism" had deadened democracy and created a permanent overclass, Forbes's 2010 list of billionaires would today be populated by Rockefellers, Morgans and Carnegies. The main legacy of titans, former or current, is that the innovations they support will produce social benefits, from the steel-making to the Internet.

The second failing of "Colossus" is its perpetuation of the robber-baron myth. Years ago, historian Burton Folsom noted the difference between what he labeled political entrepreneurs and market entrepreneurs. The political entrepreneur tends to compete over finite assets--or even to steal them--and therefore deserves the "robber baron" moniker. An example that Mr. Folsom provided: the ferry magnate Robert Fulton, who operated successfully on the Hudson thanks to a 30-year exclusive concession from the New York state legislature. Russia's petrocrats nowadays enjoy similar protections. Neither Fulton nor the petrocrats qualify as true capitalists.

Market entrepreneurs, by contrast, vanquish the competition by overtaking it. On some days Cornelius Vanderbilt was a political entrepreneur--perhaps when he ruined those traitorous partners, for instance. But most days Vanderbilt typified the market entrepreneur, ruining Fulton's monopoly in the 1820s with lower fares, the innovative and cost-saving tubular boiler and a splendid advertising logo: "New Jersey Must Be Free." With market entrepreneurship, a third party also wins: the consumer. Market entrepreneurs are not true robbers, for their ruining serves the common good.



For the full review, see:

AMITY SHLAES. "An Age of Creative Destruction." The Wall Street Journal (Sat., October 16, 2010): C7.

(Note: the online version of the article is dated October 29 (sic), 2010.)


The book under critical review by Shlaes:

Brands, H.W. American Colossus: The Triumph of Capitalism, 1865-1900. New York: Doubleday, 2010.


The Folsom book rightly praised in passing by Shlaes is:

Folsom, Burton W. The Myth of the Robber Barons. 4th ed: Young America's Foundation, 2003.





November 18, 2010

Some Hispanics Support Arizona Immigration Law



StoletoSpousesDisagreeArizonaLaw2010-11-14.jpg"Shayne Sotelo opposes Arizona's new immigration law, while her husband, Efrain, supports it." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. 28) PHOENIX -- Arizona's immigration law, which politicians have debated in the Legislature, lawyers have sparred over in the courtroom and advocates have shouted about on the street, has found its way up a driveway in central Phoenix, through the front door and right onto the Sotelo family's kitchen table.


. . .


That such a divisive social issue would divide some families is not surprising. But what makes the Sotelos stand out is that they are both Latinos, he a Mexican immigrant who was born in the northern state of Chihuahua and she a descendant of Spanish immigrants who grew up in Colorado.

While polls show that a vast majority of Latinos nationwide side with Mrs. Sotelo in opposing Arizona's law, that opposition is not uniform. "All Latinos are not opposed to this law -- that's too simplistic," said Cecilia Menjivar, an Arizona State University sociologist. There are other Mr. Sotelos out there, including an Arizona state legislator, Representative Steve B. Montenegro, a Republican who immigrated from El Salvador and became the only Latino lawmaker to vote in favor of the bill.


. . .


[Mr. Sotelo] thinks his adopted state has been unfairly maligned since the law passed. "I'm a Hispanic, and I don't have any issues walking the streets," he said. "They make it seem like the police or sheriff are out there checking everyone's papers, and that's not so."



For the full story, see:

MARC LACEY. "One Family's Debate Shows Arizona Law Divides Latinos, Too." The New York Times, First Section (Sun., October 31, 2010): 28.

(Note: ellipses added; bracketed name added to replace "He.")

(Note: the online version of the article is dated October 30, 2010 and has the title "Arizona Immigration Law Divides Latinos, Too.")





November 17, 2010

Public Employees' Union Was Biggest Spender in 2010 Election



(p. A1) The American Federation of State, County and Municipal Employees is now the biggest outside spender of the 2010 elections, thanks to an 11th-hour effort to boost Democrats that has vaulted the public-sector union ahead of the U.S. Chamber of Commerce, the AFL-CIO and a flock of new Republican groups in campaign spending.

The 1.6 million-member AFSCME is spending a total of $87.5 million on the elections after tapping into a $16 million emergency account to help fortify the Democrats' hold on Congress. Last week, AFSCME dug deeper, taking out a $2 million loan to fund its push. The group is spending money on television advertisements, phone calls, campaign mailings and other political efforts, helped by a Supreme Court decision that loosened restrictions on campaign spending.

"We're the big dog," said Larry Scanlon, the head of AFSCME's political operations. "But we don't like to brag."



For the full story, see:

BRODY MULLINS And JOHN D. MCKINNON. "Campaign's Big Spender; Public-Employees Union Now Leads All Groups in Independent Election Outlays." The Wall Street Journal (Fri., OCTOBER 22, 2010): A1 & A4.





November 10, 2010

Feds Chastise Us for Being Fat AND Urge Us to Eat More Cheese Pizzas



PizzaCheeseFat2010-11-08.jpg "A government-created industry group worked with Domino's Pizza to bolster sales by increasing the cheese on pies." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. 1) Domino's Pizza was hurting early last year. Domestic sales had fallen, and a survey of big pizza chain customers left the company tied for the worst tasting pies.

Then help arrived from an organization called Dairy Management. It teamed up with Domino's to develop a new line of pizzas with 40 percent more cheese, and proceeded to devise and pay for a $12 million marketing campaign.

Consumers devoured the cheesier pizza, and sales soared by double digits. "This partnership is clearly working," Brandon Solano, the Domino's vice president for brand innovation, said in a statement to The New York Times.

But as healthy as this pizza has been for Domino's, one slice contains as much as two-thirds of a day's maximum recommended amount of saturated fat, which has been linked to heart disease and is high in calories.

And Dairy Management, which has made cheese its cause, is not a private business consultant. It is a marketing creation of the United States Department of Agriculture -- the same agency at the center of a federal anti-obesity drive that discourages over-consumption of some of the very foods Dairy Management is vigorously promoting.


. . .


When Michelle Obama implored restaurateurs in September to help fight obesity, she cited the proliferation of cheeseburgers and macaroni and cheese. "I (p. 23) want to challenge every restaurant to offer healthy menu options," she told the National Restaurant Association's annual meeting.

But in a series of confidential agreements approved by agriculture secretaries in both the Bush and Obama administrations, Dairy Management has worked with restaurants to expand their menus with cheese-laden products.



For the full story, see:

MICHAEL MOSS. "While Warning About Fat, U.S. Pushes Cheese Sales." The New York Times, First Section (Sun., November 7, 2010): 1 & 23.

(Note: the online version of the story is dated November 6, 2010.)

(Note: ellipsis added.)



PizzaGraphic2010-11-08.jpgSource of graphic: online version of the NYT article quoted and cited above.





November 1, 2010

Paternalistic Welfare State Discourages Integration of Immigrants



(p. A9) . . . Alf Svensson [is a] former leader of the center-right Christian Democrats.


. . .


Sweden's paternalistic welfare state is partly to blame for some immigrants' marginal status in the economy, said Mr. Svensson. "We had...a system which was 'taking care' of immigrants, which didn't give them a chance to flex their own wings and show what they could do, and this has made integation worse," he said.



For the full story, see:

MARCUS WALKER And CHARLES DUXBURY. "Far-Right Party Wins Seats in Sweden." The Wall Street Journal (Mon., SEPTEMBER 20, 2010): A9.

(Note: bracketed words and first two ellipses added; last ellipsis in original.)

(Note: the online version of the article is dated SEPTEMBER 19, 2010.)





October 30, 2010

All He "Could See Was Cows and Farms" in "Virginia's High Tech Corner"



(p. A18) . . . government attempts to rejuvenate regional economies have a mixed track record, in the U.K. and elsewhere.

Stuart S. Rosenthal, an economics professor at Syracuse University, remembers driving through Virginia in 1997 and seeing a sign saying, "You are entering southwest Virginia's high tech corner."

"And all I could see was cows and farms," he said. Recent employment data shows that aside from one pocket, little has changed.



For the full story, see:

ALISTAIR MACDONALD. "U-Turn in the U.K.: Big Spending Cuts." The Wall Street Journal (Fri., OCTOBER 15, 2010): A18.

(Note: ellipsis added.)

(Note: the online version of the article is dated October 14, 2010.)





October 26, 2010

Stimulus Money Sent to the Jailed and the Dead



(p. A8) The Social Security Administration sent about 89,000 stimulus payments of $250 each to dead and incarcerated people--but almost half of them were returned, a new inspector-general's report found.


. . .


. . . 17,000 payments went to recipients who were in prison at the time the payment was made in May 2009. However, not all of those payments were necessarily against the letter of the law. While lawmakers intended to prevent payments to people in prison, the law included only a provision prohibiting payments to people incarcerated in the three months before the plan was passed--from November 2008 through January 2009.


. . .


. . . : The SSA says that the stimulus package didn't include a provision allowing it to try to retrieve funds that were mistakenly sent out, so it can't try to retrieve the rest of the money. Money transferred electronically may be sitting untouched in bank accounts of dead people.

The combined total of the mistaken payments is $22.3 million. About $12 million hasn't been returned.



For the full story, see:

LOUISE RADNOFSKY. "Stimulus Checks Sent to Dead, Incarcerated." The Wall Street Journal (Fri., OCTOBER 8, 2010): A8.

(Note: ellipses added.)

(Note: the online version of the article was dated OCTOBER 7, 2010.)





October 24, 2010

Wilderness Act Makes Wilderness Inaccessible and Dangerous



(p. A19) ONE day in early 1970, a cross-country skier got lost along the 46-mile Kekekabic Trail, which winds through the Boundary Waters Canoe Area Wilderness in northern Minnesota. Unable to make his way out, he died of exposure.

In response, the Forest Service installed markers along the trail. But when, years later, it became time to replace them, the agency refused, claiming that the 1964 Wilderness Act banned signage in the nation's wilderness areas.


. . .


Over the decades an obvious contradiction has emerged between preservation and access. As the Forest Service, the National Park Service and the Bureau of Land Management -- each of which claims jurisdiction over different wilderness areas -- adopted stricter interpretations of the act, they forbade signs, baby strollers, certain climbing tools and carts that hunters use to carry game.

As a result, the agencies have made these supposedly open recreational areas inaccessible and even dangerous, putting themselves in opposition to healthy and environmentally sound human-powered activities, the very thing Congress intended the Wilderness Act to promote.



For the full commentary, see:

TED STROLL. "Aw, Wilderness!." The New York Times (Fri., August 27, 2010): A19.

(Note: ellipsis added.)

(Note: the online version of the article was dated August 26, 2010.)






October 22, 2010

Competitors Have "Incentive to Misuse the Government to Obtain an Advantage"



(p. A15) Today's technology behemoth risks becoming tomorrow's dinosaur, and competitors sometimes plead for government intervention to obtain what they fail to achieve in the market. As a former head of a competition agency, I offer . . . principles to guide competition policy toward successful innovators.

. . . , be wary of competitor complaints. When a competitor tells government that its rival acts unfairly, the complaint should be viewed with great suspicion. Competitor complaints are driving recent EU investigations into companies that include Qualcomm, Google, Oracle and IBM. Competitors can provide valuable information about marketplace realities, but they have every incentive to misuse the government to obtain an advantage that is otherwise unattainable.


. . .


. . . , don't create disincentives for innovation. Complaining competitors often want innovators to be forced to share the source of their success, regardless of intellectual property rights. Nothing could be more destructive to the incentives for future innovation than rules that prevent innovators from reaping the full benefits of their work. As a unanimous U.S. Supreme Court said in its 2004 Verizon v. Trinko decision, "[f]irms may acquire monopoly power by establishing an infrastructure that renders them uniquely suited to serve their customers."



For the full commentary, see:

TIMOTHY J. MURIS. "Antitrust in a High-Tech World; The first rule of regulators should be to be wary of complaints from competitors.." The Wall Street Journal (Tues., August 12, 2010): A15.

(Note: ellipses added.)






October 21, 2010

Joe Ricketts Stands Tall Against Earmarks



RickettsJoe2010-10-01.jpg







Entrepreneur Joe Ricketts. Source of photo: online version of the Omaha World-Herald article quoted and cited below.



I used to teach an Economics of Technology course in the UNO EMBA program (until a curriculum committee axed the course). As a long-shot I once invited Joe Ricketts to speak to the class. I was surprised that he accepted, and maybe also surprised that he clearly invested some time and thought in his presentation. The class was riveted not only by the story of his own entrepreneurial challenges, but also of his views of the policy issues of the day. I remember his good-natured persistence in arguing with one student who challenged him on his view of the importance of tort-reform.

From his manner, and some of the stories he told, he seemed to be the sort of entrepreneur who exemplified George Gilder's view that great entrepreneurs have a kind of humility that leaves them open to learning, at least in key areas related to their business goals. By all accounts, Sam Walton was another example. And I heard Charles Koch speak this summer and saw him interact with some of his executives; he also gave the impression of being down-to-earth, and open to learning.

(Of course, then there's Steve Jobs and Larry Ellison---generalizations on entrepreneurship are hard to come by!)

Ricketts and Koch also share another trait---this one too rare among successful entrepreneurs. They are both willing to invest a considerable part of their hard-earned wealth in order to preserve and protect the institutions of limited government that will make it possible for future entrepreneurs to succeed. In Ricketts' case, for example:


(p. 7A) WASHINGTON -- Joe Ricketts wants to bring down at least one Capitol Hill lawmaker who seeks earmarks so he can get the rest of Congress' attention.

The founder and former CEO of what is now TD Ameritrade has started a new organization called Taxpayers Against Earmarks, which will seek to highlight what he describes as the evils of legislators setting aside money for pet projects back home.


. . .


Ricketts said that while some earmarks support worthy projects, he is against them all because the process is flawed. He compared those who support earmarks to addicts and criminals.

"I'm sure that all over the country there are people that like earmarks and people come to defend earmarks, and those are the people that are on the dope," he said.

Ricketts said those who seek earmarks are asking legislators to spend other people's money for their purposes.

"That's theft," he said. "As Tom Coburn says, that's intergenerational theft. So those people that like earmarks, you can consider thieves."


. . .


Ricketts said . . . the process encourages lawmakers to throw their support behind other spending bills to gain other lawmakers' support for their earmarks.

"A lot of elected officials like the earmarks, but they've never had anybody like me or anybody else push back. ... So now the scales are going to balance a little bit," he said. "I'm going to spend as many years and as many dollars as it takes to be successful."



For the full story, see:

Joseph Morton. "Joe Ricketts Will Put Up Big Bucks to Fight Earmarks." Omaha World-Herald (Friday, October 1, 2010): 7A.

(Note: all ellipses added, except for the last one which was in the original.)

(Note: the online version of the article has the title "Joe Ricketts will help fight earmarks.")





October 19, 2010

"I Just Love Economics"



RyanPaul2010-08-29.jpg





Paul Ryan. Source of photo: online version of the NYT article quoted and cited below.






(p. 16) Your once-quiet life as a congressman from Wisconsin was forever altered at the House Republican retreat in Baltimore last month, when President Obama singled you out as a "pretty sincere guy" and gave a shout-out to your "Road Map for America's Future 2.0," your plan to balance the federal budget.
He brought up my plan and I thought for a moment, Wow, this could be a sincere olive branch.





As the ranking Republican member of the House Budget Committee, you are seen within your party as a policy wonk.
I've been working on the federal budget most of my adult life, which is kind of a pretty sad thing to admit to. I just love economics.

Your "Road Map," we should explain, is a somewhat alarming document that proposes, in 600-plus pages, erasing the federal deficit by radically restricting the government's role in social programs like Social Security and Medicare. The president described it as "a serious proposal."
Right. And then the next day his budget director starts ripping me and then the day after that the entire Democratic National Committee political machine starts launching demagogic attacks on me and my plan. So when you hear the word "bipartisanship" come from the president and then you see his political machine get in full-force attack mode, it comes across as very insincere.



For the full interview, see:

DEBORAH SOLOMON. "Questions for Paul Ryan; The Big Cheese." The New York Times, Magazine Section (Sun., February 21, 2010): 16.

(Note: bold in original versions, to indicate questions by Deborah Solomon.)

(Note: the online version of the article is dated February 19, 2010.)





October 17, 2010

The Dirt on Government Detergent Laws



JonesEliseDirtyDishes2010-09-19.jpg "Elise Jones has noticed "a white dusty film" on her dishes and attributes it to reduced phosphates in dishwasher detergent." Source of caption and photo: online version of the NYT article quoted and cited below.


(p. 1) Some longtime users were furious.

"My dishes were dirtier than before they were washed," one wrote last week in the review section of the Web site for the Cascade line of dishwasher detergents. "It was horrible, and I won't buy it again."

"This is the worst product ever made for use as a dishwashing detergent!" another consumer wrote.

Like every other major detergent for automatic dishwashers, Procter & Gamble's Cascade line recently underwent a makeover. Responding to laws that went into effect in 17 states in July, the nation's detergent makers reformulated their products to reduce what had been the crucial ingredient, phosphates, to just a trace.


. . .


(p. 4) Phosphorus in the form of phosphates suspends particles so they do not stick to dishes and softens water to allow suds to form.

Now that the content in dishwasher detergent has plummeted to 0.5 percent from as high as 8.7 percent, many consumers are just noticing the change in the wash cycle as they run out of the old product.

"Low-phosphate dish detergents are a waste of my money," said Thena Reynolds, a 55-year-old homemaker from Van Zandt County, Tex., who said she ran her dishwasher twice a day for a family of five. Now she has to do a quick wash of the dishes before she puts them in the dishwasher to make sure they come out clean, she said. "If I'm using more water and detergent, is that saving anything?" Ms. Reynolds said. "There has to be a happy medium somewhere."


. . .


. . . Jessica Fischburg, a commerce manager in Norwich, Conn., for CleaningProductsWorld.com, which sells janitorial supplies in bulk, said she was not surprised that many of her clients rejected products marketed as environmentally friendly.

"The reality of any green product is that they generally don't work as well," she said. "Our customers really don't like them."


. . .


. . . in its September issue, Consumer Reports reported that of 24 low- or phosphate-free dishwasher detergents it tested, including those from environmentally friendly product lines that have been on the market for years, none matched the performance of products with phosphates.




For the full story, see:

MIREYA NAVARRO. "Cleaner for the Environment, But the Dishes? Not So Shiny." The New York Times, First Section (Sun., September 19, 2010): 1 & 4.

(Note: ellipses added.)

(Note: the online version of the article was dated September 18, 2010, and had the title "Cleaner for the Environment, Not for the Dishes.")





October 11, 2010

Obamacare Is Increasing Health Costs



HealthOutlays2010-10-01.gif





































Source of graph: online version of the WSJ article quoted and cited below.



(p. A7) The health-care overhaul enacted last spring won't significantly change national health spending over the next decade compared with projections before the law was passed, according to government figures released Thursday.

The report by federal number-crunchers casts fresh doubt on Democrats' argument that the health-care law would curb the sharp increase in costs over the long term, the second setback this week for one of the party's biggest legislative achievements.

The Wall Street Journal reported Wednesday that insurance companies have proposed rate increases ranging from 1% to 9% nationwide that they attribute specifically to new health-law coverage mandates.



For the full story, see:

JANET ADAMY. "Health Outlays Still Seen Rising ." The Wall Street Journal (Thurs., SEPTEMBER 9, 2010): A7.

(Note: the online version of the graph has the date SEPTEMBER 8, 2010.)





October 8, 2010

Budgetless California Legislature Votes to Create "Motorcycle Awareness Month"



(p. A1) SACRAMENTO, Calif.--On the brink of insolvency, California may have to pay its bills with IOUs soon. A budget was due three months ago, and the legislature hasn't passed one.

The lawmakers can, however, point to a list of other achievements this year. Awaiting Gov. Arnold Schwarzenegger's signature, for example, is a bill that would bar the state from filming cows in New Zealand. It's the fruit of five committee votes and eight legislative analyses.

California lawmakers also voted to form a lobster commission. They created "Motorcycle Awareness Month," not to mention a "Cuss Free Week."



For the full story, see:

STU WOO. "There's No Budget, but California Is All Over the Foreign-Cow Issue; As Deficit Looms, Lawmakers Promulgate 'Cuss Free Week,' Defend the State Rock." The Wall Street Journal (Tues., SEPTEMBER 28, 2010): A1 & A18.





September 23, 2010

French Utopian Planned Community Goes Up in Flames



VilleneuveGrenobleFranceUtopia2010-09-01.jpg"The planned neighborhood Villeneuve, in Grenoble, has slowly degraded into a poor district before it finally burst into flames three weeks ago, with a mob setting nearly 100 cars on fire." Source of caption and photo: online version of the NYT article quoted and cited below.



(p. A7) GRENOBLE, France -- A utopian dream of a new urban community, built here in the 1970s, had slowly degraded into a poor neighborhood plagued by aimless youths before it finally burst into flames three weeks ago.

After Karim Boudouda, a 27-year-old of North African descent, and some of his friends had robbed a casino, he was killed in an exchange of automatic gunfire with the police. The next night, Villeneuve, a carefully planned neighborhood of Grenoble in eastern France, exploded. A mob set nearly 100 cars on fire, wrecked a tram car and burned an annex of city hall.


. . .


Villeneuve, or "new city," emerged directly out of the social unrest of the May 1968 student uprising.

People committed to social change, from here as well as from Paris and other cities, came to create a largely self-contained neighborhood of apartment buildings, parks, schools, and health and local services in this city of 160,000 people, at the spectacular juncture of two rivers and three mountain ranges at the foot of the French Alps.



For the full story, see:

STEVEN ERLANGER. "Grenoble Journal; Utopian Dream Becomes Battleground in France." The New York Times (Mon., August 9, 2010): A7.

(Note: ellipsis added.)

(Note: the online version of the review is dated August 8, 2010.)





September 21, 2010

Government Import Quotas Increase Price of Sugar in U.S.



SugarPriceGraph2010-09-01.gif













Source of graph: online version of the WSJ article quoted and cited below.




(p. A1) The gap between what Americans and the rest of the world pay for sugar has reached its widest level in at least a decade, breathing new life into the battle over import quotas that prop up the price of the sweet stuff in the U.S.

For years, U.S. prices have been artificially inflated by import restrictions designed to protect American farmers. That has kept the price well above the global market.

But in recent days, the difference between the two has ballooned, giving new impetus to U.S. sugar processors and confectioners to step up their long campaign to pressure the government to increase import limits.

Attention to sugar prices, and the dwindling supply of sugar left in U.S. warehouses, has intensified in the lead up to April 1, after which the U.S. Department of Agriculture can review and change the import quotas, which now stand at 1.3 million metric tons.

Sugar users have long been vocal critics of the quotas but have failed to convince the government to change the limits. The quota has remained unchanged since it was first imposed in 1990, except for two temporary increases after Hurricane Katrina in 2005 and a major refinery explosion in 2008.




For the full story, see:

CAROLYN CUI. "Price Gap Puts Spice in Sugar-Quota Fight." The Wall Street Journal (Mon., MARCH 15, 2010): A1 & A20.





September 17, 2010

Charles II Took a Gamble on Toleration



GamblingManBK2010-09-01.jpg











Source of book image: online version of the WSJ review quoted and cited below.






(p. A19) Early in "A Gambling Man," a detailed and thoroughly engrossing examination of the Restoration's first decade, Jenny Uglow notes that Charles Stuart, upon his ascension, "wanted passionately to be seen as the healer of his people's woes and the glory of his nation." Cromwell's regime had featured constant war and constant taxes. The population was bitterly divided among Anglicans, Catholics and dissenting Protestants--Presbyterians, Puritans, Quakers, Baptists. A huge standing army had burdened the people financially and frightened them; such an army, it was not unreasonably thought, could be used to impose a tyranny.


. . .


As a result of such divisions, Charles became a "gambler," as Ms. Uglow puts it--not at cards or gaming tables but at affairs of state. His biggest gamble was on something he fervently wanted to achieve: religious toleration for all sects and the freedom for Englishmen to follow their own "tender consciences" in individual worship. He forwarded this policy in Parliament only to receive his first major defeat with the passage of the Corporation Act, a law that took the power of corporations (governing towns and businesses) away from Nonconformists and handed it back to the Church of England. Charles had gambled on "the force of reasonable argument," Ms. Uglow says, but was ultimately defeated "by the entrenched interests of the [Anglican] Church" and "the deep-held suspicions" of Parliament, which believed that England's dissenting sects posed a persistent threat. That Charles was willing to go head-to-head with Parliament for such a cause, even in failure, was especially audacious, considering his father's fate.


. . .


In his desire to be a monarch of the people, Charles was determined to make himself accessible--in the early days of his reign he threw open the palace of Whitehall to all comers. He gambled, with some success, that (in Ms. Uglow's words) "easy access would make people of all views feel they might reach him, preventing conspiracies." During the 1666 Great Fire of London he and his brother, James, duke of York, went out into the streets and put themselves alongside soldiers and workmen. They could be seen "filthy, smoke-blackened and tired," frantically creating a firebreak as the blaze consumed London like a monstrous beast.



For the full review, see:

NED CRABB. "BOOKSHELF; Risky Business; A bitterly divided nation, a monarchy splendiferously restored.." The Wall Street Journal (Fri., NOVEMBER 27, 2009): A19.

(Note: ellipses added; bracketed word in original.)

(Note: the online version of the review is dated NOVEMBER 26, 2009.)


Book being reviewed:

Uglow, Jenny. A Gambling Man: Charles II's Restoration Game. New York: Farrar, Straus and Giroux, 2009.





September 16, 2010

Tax Hike Would Hurt Entrepreneurs



(p. A17) When Congress returns from its summer recess, members will face a pivotal decision about the expiring Bush tax cuts. President Barack Obama has called for their permanent extension for singles with incomes below $200,000 and married couples with incomes below $250,000, but has proposed that most of the tax cuts for households with higher incomes be allowed to expire.


. . .


The fact that there are millions of people in the lower tax brackets with small amounts of business income may be interesting for some purposes, but it is irrelevant for the assessment of the economic impact of the tax hikes.

The numbers are clear. According to IRS data, fully 48% of the net income of sole proprietorships, partnerships, and S corporations reported on tax returns went to households with incomes above $200,000 in 2007.


. . .


Economic research supports a large impact. A pair of papers by economists Robert Carroll, Douglas Holtz-Eakin, Harvey Rosen and Mark Rider that were published in 1998 and 2000 by the National Bureau of Economic Research analyzed tax return data and uncovered high responsiveness of sole proprietors' business activity to tax rates. Their estimates imply that increasing the top rate to 40.8% from 35% (an official rate of 39.6% plus another 1.2 percentage points from the restoration of a stealth provision that phases out deductions), as in Mr. Obama's plan, would reduce gross receipts by more than 7% for sole proprietors subject to the higher rate.

These results imply a similar effect on proprietors' investment expenditures. A paper published by R. Glenn Hubbard of Columbia University and William M. Gentry of Williams College in the American Economic Review in 2000 also found that increasing progressivity of the tax code discourages entrepreneurs from starting new businesses.



For the full commentary, see:

KEVIN A. HASSETT and ALAN D. VIARD. "The Small Business Tax Hike and the 97% Fallacy; The president's plan to raise top marginal rates is holding back the very people who should be leading the economic recovery." The Wall Street Journal (Fri., SEPTEMBER 3, 2010): A17.

(Note: ellipses added.)


One of the papers by Carroll et al, is:

Carroll, Robert, Douglas Holtz-Eakin, Mark Rider, and Harvey S. Rosen. "Income Taxes and Entrepreneurs' Use of Labor." Journal of Labor Economics 18, no. 2 (April 2000): 324-51.


The Hubbard paper is:

Gentry, William M., and R. Glenn Hubbard. "Tax Policy and Entrepreneurial Entry." The American Economic Review 90, no. 2 (May 2000): 283-87.





September 15, 2010

Brit Papers Survived Due to "the Gratifying Defeat of the Luddite Unions by Rupert Murdoch"



EvansHarold2010-09-01.jpg















"Evans says: "Ultimately, Mrs Thatcher was the reason I was fired, because I attacked her so much." Source of caption and photo: online version of The Independent on Sunday article quoted and cited below.



(p. 12) As a condition of acquiring both The Times and The Sunday Times in early 1981, Murdoch promised that the independence of each would be protected by a board of directors, and made other solemn guarantees.

"On this basis," Evans wrote in Good Times, Bad Times, "I accepted Rupert Murdoch's invitation to edit The Times on February 17 1981. My ambition," he admitted, "got the better of my judgement." Every assurance regarding editorial independence, he added, was blithely disregarded.

On 9 March 1982, the day after he'd come back from burying his father at Bluebell Wood cemetery in Prestatyn, Harold Evans was sacked.

"Ultimately," he says, "Mrs Thatcher was the reason I was fired. Because I was attacking her so much. When she started to dismantle the British economy, the most cogent critic of that policy which led, OK, to... a lot of things... was The Sunday Times. I wrote 70 per cent of that criticism myself. When I became editor of The Times, I continued to criticise monetarism. But I could still see some of the good things about her."

"Just remind us?"

"I'm thinking - and you probably won't agree with this because I sense that you're a firm supporter of the NUJ [National Union of Journalists] - mainly of her dealings with the unions."

"How do you feel about her now?"

"I think she is a very brave woman."

"Hitler was brave."

"Yes, but... she was right about terrorism. She was right about the IRA."

"Do you think Britain would be a better place if she'd never existed?"

"No. I think Britain benefited from her having been there. Britain was becoming so arthritic with labour restrictions."

"Good Times, Bad Times is an unforgiving portrait of Rupert Murdoch."


. . .


(p. 13) [Evans] has called Rupert Murdoch elitist, anti-democratic, and asserted that the Australian cares nothing about the opinion of others, so long as his business expands. This is the same man who refers to "the gratifying defeat of the Luddite unions by Rupert Murdoch".


. . .


"So how do you feel about the Murdoch empire now?"

Evans pauses. "I'm not that familiar with the British... OK. Let's take an alternative scenario. Murdoch never arrives. I manage to take control of The Sunday Times with the management buyout. Then I get defeated by the unions. The Independent wouldn't be here. Rival papers survived because they got the technology. Thanks to Murdoch."




For the full interview, see:

Robert Chalmers, Interviewer. "Harold Evans: 'All I tried to do was shed a little light'." The Independent on Sunday (Sun., June 13, 2010): 8 & 10-13.

(Note: free-standing ellipsis, between paragraphs, added; internal ellipses in original; italics in original; bracketed name added in place of "he.")





September 4, 2010

Post-War Freedom, Not FDR's New Deal or War, Ended Great Depression



(p. A17) Roosevelt died before the war ended and before he could implement his New Deal revival. His successor, Harry Truman, in a 16,000 word message on Sept. 6, 1945, urged Congress to enact FDR's ideas as the best way to achieve full employment after the war.

Congress--both chambers with Democratic majorities--responded by just saying "no." No to the whole New Deal revival: no federal program for health care, no full-employment act, only limited federal housing, and no increase in minimum wage or Social Security benefits.

Instead, Congress reduced taxes. Income tax rates were cut across the board. FDR's top marginal rate, 94% on all income over $200,000, was cut to 86.45%. The lowest rate was cut to 19% from 23%, and with a change in the amount of income exempt from taxation an estimated 12 million Americans were eliminated from the tax rolls entirely.


. . .


Congress substituted the tonic of freedom for FDR's New Deal revival and the American economy recovered well. Unemployment, which had been in double digits throughout the 1930s, was only 3.9% in 1946 and, except for a couple of short recessions, remained in that range for the next decade.

The Great Depression was over, no thanks to FDR. Yet the myth of his New Deal lives on. With the current effort by President Obama to emulate some of FDR's programs to get us out of the recent deep recession, this myth should be laid to rest.



For the full commentary, see:

BURTON FOLSOM JR. AND ANITA FOLSOM. "Did FDR End the Depression?
The economy took off after the postwar Congress cut taxes." The Wall Street Journal (Mon., APRIL 12, 2010): A17.

(Note: ellipsis added.)





September 2, 2010

"Disrespectful to Take Money from One Man's Pocket and Put It in Another's"



WestsideCommunityCenterColoradoSprings2010-08-30.jpg"A March fair to raise private funding for community centers, held at Westside Community Center, was sparsely attended." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. A1) COLORADO SPRINGS, Colo.--Like many American cities, this one is strapped for cash. Tax collections here have fallen so far that the city has turned off one-third of its 24,512 street lights.

But unlike many cities, this one is full of people who are eager for more government cutbacks.

The town council has been bombarded with emails telling it to close community centers. Letters to the local newspaper call for shrinking the police department and putting the city-owned utility up for sale. A commission is studying whether to sell the municipal hospital. Another, made up of local businessmen, will opine on whether to slash the salaries and benefits of city employees.

"Let's start cutting stupid programs that cost taxpayers a pot of money," says Tim Austin, a 48-year-old former home builder now looking for a new line of work. "It's so bullying and disrespectful to take money from one man's pocket and put it in another's."



For the full story, see:

LESLIE EATON. "Strapped City Cuts and Cuts and Cuts." The Wall Street Journal (Tues., APRIL 13, 2010): A1 & A16.






September 1, 2010

Energy Department Wastes Energy



(p. A17) WASHINGTON -- Like flossing or losing weight, saving energy is easier to promise than to actually do -- even if you are the Department of Energy.

Its Web site advises that choosing new lighting technologies can slash energy use by 50 to 75 percent. But the department is having trouble taking its own advice, according to an internal audit released on Wednesday; many of its offices are still installing obsolete fluorescent bulbs.

And very few have switched to the most promising technology, light-emitting diodes, which the department spent millions of dollars to help commercialize.

Many of the changes would generate savings that would pay back the investment in two years or so, according to the report, by the department's inspector general.

In one case, the Department of Energy made most of the investment by installing timers to shut off lights at night when it moved into a new building in 1997. But it got no benefit: as of March of this year, it had not bought the central control unit needed to run the system.



For the full story, see:

MATTHEW L. WALD. "Energy Department: Make Thyself Fuel Efficient." The New York Times (Thurs., July 8, 2010): A17.

(Note: the online version of the article is dated July 7, 2010, and has the title "Energy Department Lags in Saving Energy.")





August 30, 2010

Districts with More Government Pork Have Less Private Hiring



(p. A19) You can't read models, but you do talk to entrepreneurs in Racine and Yakima. Higher deficits will make them more insecure and more risk-averse, not less. They're afraid of a fiscal crisis. They're afraid of future tax increases. They don't believe government-stimulated growth is real and lasting. Maybe they are wrong to feel this way, but they do. And they are the ones who invest and hire, not the theorists.

The Demand Siders are brilliant, but they write as if changing fiscal policy were as easy as adjusting the knob on your stove. In fact, it's very hard to get money out the door and impossible to do it quickly. It's hard to find worthwhile programs to pour money into. Once programs exist, it's nearly impossible to kill them. Spending now creates debt forever and ever.

Moreover, public spending seems to have odd knock-off effects. Professors Lauren Cohen, Joshua Coval and Christopher Malloy of Harvard surveyed 42 years of government spending increases in certain Congressional districts. They found that federal spending increases dampened corporate hiring and investment in those districts.



For the full commentary, see:

DAVID BROOKS. "A Little Economic Realism." The New York Times (Tues., July 6, 2010): A19.

(Note: the online version of the article is dated July 5, 2010.)


The research referenced is:

Cohen, Lauren, Joshua D. Coval, and Christopher J. Malloy. "Do Powerful Politicians Cause Corporate Downsizing?" NBER Working Paper No.15839, March 2010.





August 28, 2010

Cuban Health Care Checkup



(p. A17) . . . it's a good time to check in on the state of the Cuban health-care system. That's just what Laurie Garrett, a senior fellow at the Council on Foreign Relations, does in the current issue of Foreign Affairs magazine.


. . .


Slightly more than half of all Cuban physicians work overseas; taxed by the Cuban state at a 66% rate, many of them wind up defecting. Doctors who remain in the country earn about $25 a month. As a result, Ms. Garrett writes, they often take "jobs as taxi drivers or in hotels," where they can make better money. As for the quality of the doctors, she notes that very few of those who manage to reach the U.S. can gain accreditation here, partly because of the language barrier, partly because of the "stark differences" in medical training. Typically, they wind up working as nurses.

As for the quality of medical treatment in Cuba, Ms. Garrett reports that hospital patients must arrive with their own syringes, towels and bed sheets. Women avoid gynecological exams "because they fear infection from unhygienic equipment and practices." Rates of cervical cancer have doubled in the past 25 years as the use of Pap tests has fallen by 30%.

And while Cuba's admirers love to advertise the country's low infant mortality rate (at least according to the Castro regime's dubious self-reporting) the flip-side has been a high rate of maternal mortality. "Most deaths," Ms. Garrett writes, "occur during delivery or within the next 48 hours and are caused by uterine hemorrhage or postpartum sepsis."



For the full commentary, see:

BRET STEPHENS. "Dr. Berwick and That Fabulous Cuban Health Care; The death march of progressive medicine." The Wall Street Journal (Sat., JULY 13, 2010): A17.

(Note: ellipses added.)


Reference to the Garrett article:

Garrett, Laurie A. "Castrocare in Crisis; Will Lifting the Embargo Make Things Worse?" Foreign Affairs 89, no. 4 (July/August 2010): 61-73.





August 27, 2010

Government Protects Us from Julie Murphy's Lemonade Stand



JulieMurphyLemonadeStand2010-08-16.jpgJulie Murphy and her lemonade stand. Source of photo: online version of the NYT article quoted and cited below.


(p. A8) When life gives you lemons, make lemonade.

When health inspectors cite you for it, get famous.

Julie Murphy, a 7-year-old Oregonian, set up a lemonade stand on July 29 at an art fair in northeast Portland. County health inspectors shut her down, however, telling Julie and her mother, Maria Fife, that they needed a temporary restaurant license, which costs $120. The penalty for selling food without a permit, they warned, was $500. At 50 cents a cup, that's a lot of lemonade.

Others at the fair urged the family to give away the lemonade, and they wrote "free" and "suggested donation" on Julie's sign with a marker. But the inspectors were unmoved.

Julie left the fair in tears.



For the full story, see:

JOHN SCHWARTZ. "Sorry, Kid: No License, No Lemonade." The New York Times (Sat., August 7, 2010): A8.

(Note: the online version of the article is dated August 6, 2010.)





August 23, 2010

"The Survival of Freedom and Accountable, Limited Government Is an Enormously Important Value"



GellnerErnest2010-08-05.jpg "Ernest Gellner in his office at the London School of Economics in 1979." Source of caption and photo: online version of the WSJ article quoted and cited below.


(p. W8) 'I am sorry, I have written another," Ernest Gellner used to say in his later years before publishing a new book. "I just couldn't help it." Not even his death in 1995 stopped the flow. The last of his posthumous works, "Language and Solitude," appeared in the late 1990s. Now Gellner has been brought back to life--alongside his combative ideas and his maverick approach to intellectual combat--in a sympathetic but by no means reverential biography by his former pupil John A. Hall.


. . .


Many of the problems that Gellner addressed during his long intellectual career--such as the roots of nationalism and the role of contemporary Islam--are obviously of direct relevance today. But the most pertinent part of his legacy lies in his fearless endorsement of Western modernity at a time when it was becoming increasingly embattled in the academy and elsewhere.

As Mr. Hall demonstrates, Gellner believed that there really was a clash between "liberty and pluralism," on the one hand, and "authoritarianism and oppressiveness" on the other. In a passionate riposte to Noam Chomsky, who had accused him of ignoring Western crimes, Gellner charged that his critic had "obscured" the fact that "the survival of freedom and accountable, limited government is an enormously important value even when some of its defenders are occasionally tarnished."

This was the authentic voice of Ernest Gellner: honest, cool and reasonable. Mr. Hall is to be congratulated for reminding us of how much we miss it today.



For the full review, see:

BRENDAN SIMMS. "A Combatant in the Battle of Ideas; A defender of the West when it was most embattled, a defender of reason at a time of dangerous irrationality." The Wall Street Journal (Fri., JULY 23, 2010): W8.

(Note: the online version of the article is dated July 30 (sic), 2010.)

(Note: ellipsis added.)


The book under review, is:

Hall, John A. Ernest Gellner: An Intellectual Biography. London, UK: Verso, 2010.


ErnestGellnerBK.jpg













Source of book image: online version of the WSJ review quoted and cited above.