Archive for the ‘Uncategorized’ Category.

Dungeons & Dragons Porn -- Amazing Homemade Maps

At Atlas Oscura.

By the way, if you are tired of killing time (or your kids killing time) on airplanes watching movies, this is a solitaire pen and paper take on D&D.  Every time you open a door there are 36 possible rooms/corridors beyond that you resolve with a die rolls, then more rolls to determine encounters.  Requires a sheet of graph paper for the dungeon to get mapped and to track character skills/etc.

If Feel Like I Called The Elon Musk - Popular Mechanics Love Fest

In my extended article the other day about Tesla I wrote of Elon Musk

Elon Musk is not the smartest guy in the world.  He is clearly a genius at marketing and brand building.  He has a creative mind -- I have said before he would have been fabulous at coming up with each issue's cover story for Popular Mechanics.  A mile-long freight blimp!  Trains that run in underground vacuum tubes!  A colony on Mars!  But he suffers, I think, from the same lack of self-awareness many people develop when they are expert or successful in one thing -- they assume they will automatically be equally as brilliant and successful in other things.  Musk creates fanciful ideas that are exciting and might work technically, but will never ever pencil out as profitable business (e.g. Boring company, Hyperloop).

Seriously, go back and look at old popular mechanics covers.  Here is one in my domain:

The magazine specialized in really cool ideas that 14-year-old geeky boys like me ate up in the 1970s.  But most of them share in common with Elon Musk's ideas that they will never be practical.  So it is not surprising that Popular Mechanics put out an absolute puff issue on Elon Musk, apparently aimed at helping the man Popular Mechanics loves rehabilitate his reputation after getting some bad press for making false promises and breaking securities laws.   The piece was such a hopeless PR piece masquerading as journalism that the Atlantic felt the need to call them out for it.

Other readers, particularly journalists, were flabbergasted, including several Popular Mechanics staffers and contributors who declined to speak on the record because they feared jeopardizing their jobs. “It’s not the job of a magazine to do some PR recovery efforts for somebody exhibiting unstable behavior just because you like that he makes cool cars and rockets,” one Popular Mechanics writer said. (Disclosure: I worked at Popular Mechanics as a web intern for about a month in 2012.) For many journalists, the essay collection was a love letter bursting with unbridled, unfiltered admiration for Musk, a public figure the magazine covers, regularly and objectively. The material reads as if it came straight from the public-relations managers whose jobs are to make their boss look good.

In response to criticism the Popular Mechanics editor said:

D’Agostino said he decided to do the project after reading a slew of negative press of Musk and his properties, and, as he put it in the final collection, “myopic and small-brained” criticism. He cited as examples news coverage of the misleading tweet about Tesla, the ensuing SEC debacle, Musk’s weed experience on Joe Rogan’s podcast, and the entrepreneur’s relationship with the singer Grimes....

Musk, he said, is a good representative for the Popular Mechanics ethos. “It’s always been a magazine about what’s possible and the people who sort of tinker with things and solve problems with the aim and goal of improving human life and existence, and using technology to make things better,” he said. “When you look at someone like Elon Musk, we kind of think of him as one of us. He’s doing something very Popular Mechanics—you don’t know if it’s going to work, but he tries these things and gives it his all.”

I am perfectly willing to acknowledge Musk's good points, as I did in my long essay linked above, but in my opinion Musk is leading a lot of very naive investors over a cliff.  Go read the Tesla fan boards and the $tsla tag at twitter and you will see a series of investors who have never bought a stock before talking about how they put all their savings into Tesla.  Ugh.  Magazines like Popular Mechanics have some responsibility not to shamelessly tout a high-risk stock to naive investors.

For those who don't want to read my whole essay, the biggest problem at Tesla is that Musk has promised a lot of things, all of which take capital which it is increasingly clear Tesla does not have.  The promised Semi, pickup truck, coupe, solar shingle, China expansion, EU sales of the model 3, expansion of the sales and service network, bringing body shops in house, implementation of full self-driving -- not to mention repaying a growing accounts payable backlog and over a billion dollars in debt coming due in the next 6 months -- all will require billions of capital and Tesla is hitting bottom.  Musk claims he will be able to fund this with organic cash production but this almost has to be an outright lie.  He needs to raise equity, but has not done so when his stock was at all-time highs.  Now that he is in trouble with the SEC, rumors swirl that he may not be able to raise new capital.  If he cannot, Tesla will be bankrupt in 6 months or less.  Tesla might survive if it can find a white knight (though many of the obvious candidates have turned him down) but this is a lot of risk for noob investors to take on and a lot of risk to simply IGNORE in a Popular Mechanics puff piece.

Postscript:

By the way, is the balance problem on Elon Musk coverage really a dirth of hagiography? This is the man the press explicitly calls the real life Tony Stark.  If anything, he needs that guy referred to in the final seconds of the movie Patton, the person who rides with the Roman general during his Triumph and whispers in his ear that all glory is fleeting.  I have no problem talking about the wonderful things Musk has helped push forward (and I do) but good God aren't you obligated to also include stuff like this, out of his own mouth?

You can click on the tweet and see my whole response, but eschewing 3rd party dealers and having its own sales and service network has been a Musk strategic pillar for 8 years.  The production ramp for the Model 3 is years behind.  And the CEO just looked at the map and realized they did not have enough service locations even for their less-than-expected sales?  This may be a great idea man and visionary and man who can get great efforts started, but this is not the tweet of a great, or even a good, CEO.

More Entrepreneurship Would Help Progressive Causes, But Progressives Do Not Understand It At All

Last week I was walking through one of our area's  large upscale resorts.  The resort was hosting what looked like a huge conference of a large franchising organization.  What struck me immediately in the lobby and everywhere on the grounds was how many people of color were there -- it might have been as many as half.  And the crowd was WAY more than half women.  I don't want to argue right now about buying a franchise as a path to entrepreneurship -- there are pros and cons.  But it really helped reinforce something I always suspected -- that entrepreneurship is a particularly important path of self-improvement for women and people of color.

These all sound like worth progressive goals, and in fact many progressive profess to support entrepreneurship.  Here is a screen shot from Beto O'Rourke's web site a loyal reader sent me:

Amazing.  We are going to promote entrepreneurship by showering the economy with regulations (1000 new bills a year in progressive CA) and making sure many of the returns from an entrepreneurs' money and effort go to other people.**  This is like saying we really want to promote the growth of the rabbit population and we are going to do it by putting out lots of rabbit traps and making sure all the carrots the rabbits are eating are given to others.

** By the way, perhaps the #1 great progressive misunderstanding is that without one single government intervention, the vast majority of the entrepreneur's efforts go to others.  Employees will earn far more in total than will the entrepreneur herself, and  consumers will be left with far more value from the products and services they buy than the entrepreneur ever got back in profit.  Steve Jobs created far more wealth and well-being for the rest of us than he did for himself.

How Politicians Very Carefully Prioritize When to Unleash the Coercive Power of the State

A Small Suggestion for Maximizing Value of Your Loyalty Points

It is useful to have an algorithm for spending your travel (hotel, air) loyalty points.  Years ago I generally saved them for big vacation trips, usually to Europe or Hawaii.  These were the most expensive trips I took and it felt good to bring their cost down.

Two things have killed this algorithm for me.  One is that most major airlines don't have squat for points availability on popular Trans-Atlantic and Hawaiian routes (British Airways, I am looking at you).  The second change was that I started to read some of the web sites focused on travel points, for example the Points Guy.

There is good information on these sites, but a lot of the detailed strategies are way to arcane and time-consuming to bother with (e.g. Take your American Express points and convert them into gift certificates denominated in Ecuadorian currency, and then apply these for double credit... etc).  But the one takeaway I have had is to think of your points like a currency with a constantly varying exchange rate to dollars, and find the opportunities to spend the points at the best exchange rates.  TPG  maintains a monthly estimate of the value of each type of reward point.  Expected value is between 1 and 2 cents a point for most.

My new algorithm is to use my points when I am getting at least 2 cents for them, and hopefully more.   Take hotel points for example.  From time to time I will find that there is some squeeze in hotel rooms in a city I want to visit and the price of most hotels have risen 50-100% for these days.  This is a great time to use your points, particularly if you are locked into the dates and can't go on a cheaper date.  The reason for this is while the price in $ goes up, the price in points does not.  There may be some hotel chains that limit availability, but Starwood for example does not.  Let me give an example.

In several weeks I am taking my wife for a nice weekend to see her friends in Manhattan.  We are locked into the dates.  But it turns out that there is some UN event and all the hotel rates have skyrocketed even higher than usual NYC hotel rates.  It was just going to be too expensive to stay in a really special hotel.  Until I thought of the St. Regis.  It is not my first choice, but it is in Starwood and with the Starwood Amex card I have a zillion points.  Turns out for a basic room the nightly rate had gone all the way to $1500 (welcome to NY).  But the points cost for the same room was the same as it ever was, 35,000.  I was effectively getting 4.3 cents each for my points.  One could argue that since this was not my first choice, I should compare it to that alternative, but even with a cheaper rate at that hotel this was still 2.6 cents of savings for each point.

For American Airlines, I try to do the same thing.  Most transcontinental flights have no points availability, or have availability at really bad exchange rates (The one exception I have found is Cathay Pacific, which takes American points and tends to have a lot of award seats).  I increasingly use my points domestically.  When rates shoot up for a particular flight, there still may not be availability but sometimes the opportunities are there.

Is The Phoenix Housing Market Peaking?

I am not actually active in the residential home market, so I can (without losing any money) call market tops and bottoms from semi-random variables.  In 2005, I wrote here about a possible housing top when I overheard a dentist tell a doctor about all he money he was making flipping raw land  (I will apologize to dentists here, but when I studied investing at HBS 30 years ago I had a professor who would ask the class, for a bad investment, "who do we sell this to?"  Answer:  Doctors!   And if it is a really, really bad investment, who do we sell this to? Dentists!)

Anyway, I was out on my super-dorky but easy-on-the-knees and fun to ride elliptical scooter the other day and stopped to take a picture of a quiet intersection near my home:

I only got seven of the signs in my picture, but there were eight different open house notices for homes all within an easy walk of this location.  Reminded me of 2009.

Postscript:  By the way, I always feel bad about joking at the expense of doctors and dentists and their investments, so I will share one of my personal great moments in investment savvy.  In 1984 I graduated as a mechanical engineer that had a lot of background in programming and micro-computers (my specialty was control theory and something awkwardly called interfacing microprocessors with mechanical devices, which we just call "robotics" today).  I had lots of good job offers, and most were for about the same amount of money except one outlier that did not pay nearly as much but instead paid in all these crappy pieces of paper called options.  Hah!  I wasn't falling for that, and I turned them down and worked for real money.  That company I turned down was Microsoft and just the options they offered in the offer letter, I remember calculating once, would be worth more today than all my cumulative lifetime earnings to date.

Canadian Authoritarianism: Prosecuting People With the Wrong Opinions

This comes to us from that bastion of freedom called Canada, where half of Americans wanted to run when Trump got elected.

It’s like something out of George Orwell’s 1984**.

Canada’s Competition Bureau, an arm’s length agency funded by Prime Minister Justin Trudeau’s government to the tune of almost $50 million annually, investigated three organizations accused of denying mainstream climate science for over a year, following a complaint from an environmental group.

The bureau discontinued its 14-month probe in June, citing “available evidence, the assessment of the facts in this case, and to ensure the effective allocation of limited resources”, according to Josephine A.L. Palumbo, Deputy Commissioner of Competition, Deceptive Marketing Practices Directorate.

But it will re-open its investigation should it receive relevant new information from the public.

The complaint was filed by Ecojustice on behalf of six “prominent” Canadians, including former Ontario NDP leader and UN ambassador Stephen Lewis.

It accused three groups, Friends of Science, the International Climate Science Coalition, and the Heartland Institute of making false and misleading claims about climate change, including that the sun is the main driver of climate change, not carbon dioxide, and that carbon dioxide is not a pollutant.

When it launched its complaint in December, 2015, Ecojustice told the National Observer it would press the Commissioner of Competition to refer the matter to the Attorney-General of Canada for “criminal charges against the denier groups”.

**I presume the author is referring to the general understanding of what 1984 was about, rather than Hillary Clinton's revisionist opinion that 1984 was a cautionary tale about the danger of not having enough respect for government authority figures.

Wow. Thanks Capitalism!

Why Wind Power Does Not Greatly Reduce Fossil Fuel Use

The problem with wind power is that electric utilities have to be prepared at any time for their power production to just stop on short notice.  So they must keep fossil fuel plants on hot standby, meaning they are basically burning fuel but not producing any power.  Storage technologies and the use of relatively fast-start plants like gas turbines mitigates this problem a bit but does not come close to eliminating it.  This is why wind power simply as a source contributing to the grid makes very little sense.  Here is Kent Hawkins of Master Resource going into a lot more depth:

How do electricity systems accommodate the nature of wind and solar? They do this by having redundant capacity almost equalling the renewable capacities as shown in Figures 5 and 6 for two jurisdictions that have heavily invested in wind and solar – Germany and Ontario, Canada.

Pt I Fig 5

Figure 5 – Duplicate capacity requirements for Germany in 2015.

Source: See note 4, sub point a.

 

Part 1 Fig 6

Figure 6 – Duplicate capacity requirements for Ontario, Canada, in 2018

Source: Ontario Power Authority[5]

In both figures, the left-hand columns are peak demand requirements and include all the dispatchable capacity that is required to reliably meet demand and provide operating reserve. In the right-hand columns, if you look very carefully, you can see the capacity credit for wind by the slight reduction in “Peak Demand + Op Reserve.” In summary, when wind and solar are added, the other generation plants are not displaced, and, relative to requirements, wind and solar are virtually all duplicate capacity.

Wind might make more sense in niche applications where it is coupled into some kind of production process that can run intermittently and have its product stored.  I think T Boone Pickens suggested having wind produce hydrogen from water, for example, and then store the hydrogen as fuel.  This makes more sense because the total power output of a wind plant over a year can be predicted with far more certainty than the power output at any given minute of a day.  This is one reason why the #1 historic use of windpower outside of transportation has been to pump water -- because the point is to fill the tank once a week or drain the field over a month's time and not to make absolutely sure the field is draining at 10:52 am.  The intermittent power is stored in the form of water that has been moved from one place to another.

My Favorite Convenience Tech: The Disney Magic Band

Before discussing the Disney Magic Band, I got to thinking about this from this article linked by Tyler Cowen:

The syringe slides in between the thumb and index finger. Then, with a click, a microchip is injected in the employee’s hand. Another “cyborg” is created.

What could pass for a dystopian vision of the workplace is almost routine at the Swedish startup hub Epicenter. The company offers to implant its workers and startup members with microchips the size of grains of rice that function as swipe cards: to open doors, operate printers, or buy smoothies with a wave of the hand.

The injections have become so popular that workers at Epicenter hold parties for those willing to get implanted.

“The biggest benefit I think is convenience,” said Patrick Mesterton, co-founder and CEO of Epicenter. As a demonstration, he unlocks a door by merely waving near it. “It basically replaces a lot of things you have, other communication devices, whether it be credit cards or keys.”

If you are like me, your immediate reaction is "Yuk, I can't imagine doing this."  But my second reaction is that there is really a step change in convenience here that folks who have not tried it may be underestimating.

The reason I know this is from my experience with the Disney Magic Band, a waterproof bracelet about the size of a small watch.  Here is an example, which includes my awesome customized tiger striping I painted on the basic orange band:

At Disneyworld, this band acts as

  • Your room key, activating the electronic locks on your room
  • Your credit card and wallet, with the ability to pay for anything anywhere in the parks and affiliated stores and hotels with a touch to the reader at every register (most require a 4-digit PIN number to be entered as well)
  • Your park entrance ticket
  • Your restaurant reservation
  • Your ride reservation (Fastpass)

One can easily navigate a multiday trip through Disneyworld without a wallet or keys and just this on your wrist.  It is pretty compelling.

Intelligence Failure, December 15, 1944

I love these US Army intelligence maps from Western Europe on December 15 and then on December 16, 1944 (before and after the German invasion).  A useful lesson for folks who do not greet all intelligence reports with a lot of skepticism.

Bad Timing Award

Guess where I am supposed to fly on Saturday?

Update: This will totally paint me as a geek, but does this remind anyone of the Romulan plasma torpedos in the Star Trek episode "Balance of Terror"?

Markets in Not Quite Everything: IP Address Shortage

I migrated my server and in the process lost a block of 10 dedicated IP addresses I had.  So I tried to sign up for the 10 addresses again, and got this:

Due to the global shortage of IPv4 addresses, we are now required to request justification for dedicated IP address requests. Each dedicated server comes with 4 dedicated IP addresses, in addition to the primary shared IP address. Additional IP addresses must be requested in blocks of 4 IPs ($16.00/month for each block of 4). Please be aware, at this time, the only acceptable justification for a dedicated IP address we can accept is for use with an SSL certificate. You will need to provide at a copy of the certificate(s) which will be installed, however, we do not need to install the certificate for you.

Obviously IPv6 is meant to relieve this but it is still a minority of Internet traffic.

Beautiful Video, But It Gives Me the Shakes Just Looking At It

The Emergence of Traffic Jams

This is something I have long suspected.  A short unexpected braking from one care propagates into a small traffic jam.   Reminds me of waves propagating in a flowing fluid.  Does traffic have a Reynolds number?

via Twisted Sifter

Federal Lands Footprint

Courtesy of the House Committee on Natural Resources comes this map of Federal "footprint", land either owned by the Feds or under some sort of Federal designation that has substantial impacts on property use.

federal-footprint

You can click the map to enlarge it or else just go to the map with layers here.   Click the details button in the upper left to see the legend.  Beware, the map is pretty slow to function for me.  You might find an alternative that works better here.  You won't find a lot of private land west of Denver.

For much of the 19th century, the US had a sensible land policy that promoted homesteading and outright private purchases of Federal land.  Then this policy stopped, and what we have now is most of the land west of Denver managed by special interests who will fight tooth and nail to keep the land out of private hands and in their own control.

Are We Really Going to Sell Socialism in This Country Based on the Fact that the Middle Class is Getting Rich?

I present, the shrinking American middle class.  2/3 of the losses were because they moved to "rich".

um-isnt-this-good-news

via Reason

I will add to this that even our poor are materially better off than the poor in European socialist / 3rd way countries. Here is the absolute well-being by income percentile of the US vs. Bernie Sander's beloved Denmark.

click to enlarge

My Wife Loves Me

Bought me this bad boy at Costco.

click to enlarge

Flashback: My Favorite Past Pumpkin Effort

Pumpkin1   Pumpkin2

I traced a world map on the pumpkin, and then thinned the pumpkin skin in the land masses without cutting all the way through.  Since there are no holes, you will need an electric light to illuminate it.

Great Wealth is Bad Only When It Comes from Cronyism Instead of Creating Consumer Value

I book marked this long ago when I was in Europe and forgot to blog it.  From the Washington Post

You might be used to hearing criticisms of inequality, but economists actually debate this point. Some argue that inequality can propel growth: They say that since the rich are able to save the most, they can actually afford to finance more business activity, or that the kinds of taxes and redistributive programs that are typically used to spread out wealth are inefficient.

Other economists argue that inequality is a drag on growth. They say it prevents the poor from acquiring the collateral necessary to take out loans to start businesses, or get the education and training necessary for a dynamic economy. Others say inequality leads to political instability that can be economically damaging.

A new study that has been accepted by the Journal of Comparative Economics helps resolve this debate. Using an inventive new way to measure billionaire wealth, Sutirtha Bagchi of Villanova University and Jan Svejnar of Columbia University find that it’s not the level of inequality that matters for growth so much as the reason that inequality happened in the first place.

Specifically, when billionaires get their wealth because of political connections, that wealth inequality tends to drag on the broader economy, the study finds. But when billionaires get their wealth through the market — through business activities that are not related to the government — it does not.

Arizona Near Last in Local Food Consumption -- Good!

Our local fishwrap laments:

The local food movement in Arizona needs just that – movement.

While some shoppers enjoy spending their Saturday mornings at local farmers markets, new research indicates Arizona lacks per-capita sales in the local food industry.

The 2015 Locavore Index found that of the 50 states and Washington, D.C., Arizona has the second lowest per-capita sales for local foods.

Here is a scoop for you:  We live in the middle of the freaking Sonoran desert.   It is a terrible place to grow most foods.  In fact, it is an environmentally awful place to grow food.   Local food folks somehow have gotten locked into transportation costs as the key driver of food sustainability that they want to focus on, but transportation costs are 10% or less of most food costs.  A small savings on transportation is absolutely dwarfed, from a productivity and resource use standpoint, by the productivity of the soil and the fit of the climate with whatever is being grown.

Here is one way to think of it -- yes, locally grown food may not have to be transported very far, but every drop of water for food grown here in the Phoenix area has to be brought hundreds of miles from declining reservoirs to grow that food.

The movement seems to imply that locally grown food is more healthy.  Why?  Why is an Arizona tomato healthier than a California tomato?

Finally, the micro-trade-protectionism is pretty funny:

If local Arizonans start buying more local food, the economy may benefit as well.

When buying local grown food, “the money stays here in the local economy, as opposed to buying something in a national chain,” said R.J. Johnson, a sales representative for Blue Sky Organic Farms in Litchfield Park. “You buy something locally, 75 percent of that money stays here in town.”

This is so economically ignorant as to be beyond belief.  If more people are growing food here locally (something that is likely a fairly unproductive task given our climate), what productive tasks are they giving up.  And this is a national effort -- are they really with a straight face telling every single state that they should buy more locally so their money stays at home?  Isn't that just one big zero sum game (actually a negative sum game because you lose benefits of specialization and comparative advantage).

Thanks Nevada for This Taxi Line

You gotta love crony capitalism.  Bowing to the demands of taxi companies, Uber is banned in Las Vegas.  As a result, this is me and many others standing in a taxi line waiting for a non-existent taxi.

no-taxi

 

My son** tells me that it was way worse when the club shows ended at 4AM.   Never since I was in pre-Uber Paris have I had so much trouble finding a damn cab.  Fortunately the weather was under 100F so walking was a fairly nice option.

Why Greek History Reminds Me of California and Illinois

From the WSJ, an article on how politicians who tried to point out the unsustainability of Greek finances years ago where not only ignored, but villified and marginalized.  Sort of like in places like California and Illinois.

In the past quarter century, Greece has had a handful of reformist politicians who foresaw the problems that are now threatening the nation with bankruptcy.

Their reform proposals were fought by their colleagues in parliament and savaged by the media and labor unions. They invariably found themselves sidelined....

Tassos Giannitsis is no stranger to this kind of war: His tenure as labor minister was more short lived, and the battles against him even more visceral. Mr. Giannitsis in 2001, again in the Pasok government led by Mr. Simitis, put forward a comprehensive proposal to reform the pension system.

Trade unions, opposition parties and Pasok itself unleashed menace on Mr. Giannitsis.

“Giannitsis was annihilated after his pension-reform proposals. There are few precedents for this kind of universal attack on a politician,” said Loukas Tsoukalis, a prominent economics professor here.

Mr. Giannitsis’s proposals, which would have reduced the pension levels Greeks receive and made the system overall more sustainable given the country’s demographic and labor-force trends, were never taken to parliament.

“From the fridge to the bin!” said the front page of newspaper To Vima on April 28, 2001, as the frozen pension-reform plan was scrapped for good.

“When I told my colleagues in the cabinet about the reforms I was proposing—which mind you were not the toughest available—the attitude I got was that I was spoiling the party,” Mr. Giannitsis said in an interview.

“They were, like, ‘everything is going great right now, why are you bothering us with a problem that may implode in a decade?’”

There are many other examples.

 

Brink Lindsey Proposes a Growth Plan with Appeal Across The Political Spectrum

It turns out that small government libertarians like myself and large-government progressives actually have something in common -- we both fear accumulations of unaccountable power.  We just find such power in different places.  Progressives fear the accumulation of power in large corporations and moneyed individuals.  Libertarians fear government power.

I won't try to take Caplan's ideological Turing test today, but will just speak from my own perspective.  I wonder how Progressives can ignore that government has guns and prisons while corporations just have the ability to sell you something or hire you (though perhaps not on the terms you prefer).  When pressed to explain why the Left is more comfortable with government power, their explanations (to my taste) depend too much on assumptions that competent versions of "their guy" pull the levers of power, and that power itself and the vagaries of government incentives will not corrupt this guy.

On the other hand, progressives ask me all the time, "how can you trust corporations so much" and then list off a justifiably long list of examples of them acting poorly.  This, I think, is where the real difference comes in, and where the confusion often comes int he public discourse.  I will answer that I don't trust anyone, government or corporations.  What I trust are the incentives and the accountability enforced in a market where a) consumers can take their money elsewhere if they get bad products or services; b) employees can take their labor elsewhere if they are treated poorly; and c) entrepreneurs can make a fortune identifying shortcomings in incumbent businesses and offering consumers and/or employees a better deal.

Unfortunately, when a person or organization finds itself very successful in this game, there is a natural tendency to want to protect their winning position.  But nothing in the market can stop a challenge from a better product or service, so successful entities tend to turn to the government (which has a monopoly on guns and prisons and asset seizures and the like) for protection against upstart challengers.  If successful, these restrictions tend to hobble growth and innovation -- imagine if IBM had successfully used government influence to halt the PC revolution or if AT&T had blocked the growth of cell phones.

This dynamic is at the heart of Brink Lindsey's new white paper at Cato (pdf).   As has been his wont in several past works, Lindsey is looking for proposals that bridge the gap between Left and Right.  So, rather than stake out the 98th salvo in an area where there seems to be a hopeless ideological divide (e.g. minimum wage or low-skill immigration), he focuses on four areas one could imagine building a broad coalition.  Lindsey focuses on attempts by successful incumbents to use government to cement their position and calls them "regressive regulation" because they tend to benefit the already-successful at the expense of everyone else.

In the following sections, I examine four major examples of regressive regulation: (a) excessive monopoly privileges granted under copyright and patent law; (b) protection of incumbent service providers under occupational licensing; (c) restrictions on high-skilled immigration; and (d) artificial scarcity created by land-use regulation. In all four examples, current government policy works to create explicit barriers to entry. In the first two cases, the restriction is on entry into a product market: businesses are not allowed to sell products that are deemed to infringe on a copyright or patent, and individuals are not allowed to sell their services without a license. In the other two cases, actual physical entry into a geographic area is being limited: on the one hand, immigration into the country; on the other, the development and purchase or rental of real estate.

One can immediately see how this might appeal across ideologies.  Libertarians and market Conservatives will like the reduction in regulation and government scope.  Progressives should like the elimination of government actions that primarily help the wealthy and powerful.**

I said "cross ideologies" above rather than bi-partisan because things get messy when actual politics intrude.  All of these protected constituencies wield a lot of political influence across both parties -- that is why the regressive regulation exists in the first place.  And they all have finally honed stories about how these restrictions that prevent new competition and business models are really there to protect the little people (just watch the battles between Uber and the taxi cartels and you will see what I mean).

Never-the-less, this strikes me as a pretty good list.  For whatever barriers there may be, it is a hell of a lot easier to picture a bipartisan agreement on any of these issues than on, say, low-skill immigration.  I haven't finished reading to the end -- I have to get on now with my day job -- so I have yet to see if there are any concrete proposals that look promising.

 

**The ideological problem here, of course, is that libertarians think that these restrictions are the primary way in which the wealthy unfairly benefit while most Progressives would (I suppose) see it as a side issue given that they believe that even the free-est of market capitalism is inherently unfair.

Reminder: My Novel BMOC is Free On Kindle for a Few More Days

BMOCIn honor of an anniversary of sorts for the book, I have done a substantial edit on both the printed and Kindle editions of my first novel "BMOC" and it is now on sale through Monday for the low, low price of $0.

Go and grab a copy.