Archive for September 2017

OK, I Am Failing the Ideological Touring Test Here

I pride myself on being able, generally, to craft arguments on various issues along any of Arnold Kling's three axes of political discourse.  But I can't come up with an argument for why college students (likely Progressives on the oppressor-oppressed axis) would be legitimately afraid of the beach ball (via Maggies Farm).  My libertarian axis explanation of course is that having found that the "those guys' speech scares us" approach has been successful at shutting down speech of their opponents in the past, they are rationally pursuing a proven winning strategy.  But what is the Progressive argument here?

Saw This Coming From A Mile Away: Russia Ads on Facebook Not Necessarily For Trump

In general, the whole Russia Facebook ad purchase story has been a huge yawner.  In an election where Hillary Clinton and her supporting PACs spent $1.2 billion and Trump spent about half that, are we really concerned about the impact of $100,000 in ad spend on Facebook?  Has there been anyone other than Russia and the Koch Brothers who the media could seriously write stories about manipulating an election by spending 0.0055% of the total advertising in the election? If that 0.0055% really turned the election, please send me the name of their ad agency.

The really interesting part of this story is that absolutely no one has said anything about that $100,000 actually having been spent on Trump.  People talk about the story as if they obviously were for Trump, but perhaps tellingly no one has actually confirmed this.  Certainly if you had asked me to guess in June of 2016 who Russia would have been making ads for, I would not have assumed Trump rather than Hillary was a sure bet.  And then there is this today from CNN

At least one of the Facebook ads bought by Russians during the 2016 presidential campaign referenced Black Lives Matter and was specifically targeted to reach audiences in Ferguson, Missouri and Baltimore, sources with knowledge of the ads told CNN.

Ferguson and Baltimore had gained widespread attention for the large and violent protests over police shootings of black men. The decision to target the ad in those two cities offers the first look at how accounts linked to the Russian government-affiliated troll farm known as the Internet Research Agency used geographically targeted advertising to sow political chaos in the United States, the sources said.

Hmmm.  I guess the apple does not fall far from the tree.  In the Cold War this is exactly the kind of thing the Soviets would have funded.  Though given how tribalized politics are I am not sure that spending money to target a political tribe to reinforce them in their already strongly-held beliefs is a super-productive way to spend money.  More to follow I am sure.

I Still Don't Understand Why Progressives Blindly Support Public Employee Unions

I have asked this question before:

Taking the government's current size and tax base as a given, is there a segment of the progressive community that gets uncomfortable with the proportion of these resources that are channeled into government employee hands rather than into actual services for the public?

I don't think this is an unfair question.  People ask lots of unfair questions in politics that try to impose the questioner's assumptions and worldview on the respondent (You want open immigration?  Don't you care about terrorism?  You don't want a $15 minimum wage?  Don't you care about the poor?)  But I am honestly trying to ask this of Progressives from the Progressive worldview -- Increasingly privileged government workers, who typically make more in pay in benefits for less work than the rest of us, are claiming for themselves so many of the resources of the government that services and programs Progressives favor are being cut back.  In the Progressive oppressor-oppressed model, how does $100,000 pensions for government workers get prioritized over homeless shelters?

Here is another example:

We have written frequently over the past couple of weeks about the disastrous public pension funds in Kentucky that are anywhere from $42 - $84 billion underfunded, depending on which discount rate you feel inclined to use. As we've argued before, these pensions, like the ones in Illinois and other states, are so hopelessly underfunded that they haven't a prayer of ever again being made whole.

That said, logic and math have never before stopped pissed off teachers and/or clueless legislators from throwing good money after bad in an effort to 'kick the can down the road' on their pension crises. As such, it should come as no surprise at all that the Lexington Herald Leader reported today that Kentucky's 365,000 teachers and other public employees are now demanding that taxpayers contribute a staggering $5.4 billion to their insolvent ponzi schemes over the next two years alone. To put that number in perspective, $5.4 billion is roughly $3,200 for each household in the state of Kentucky and 25% of the state's entire budget over a two-year period.

Why Is It So Hard To Get Even Smart People To Think Clearly on Electric Vehicle Efficiency?

A lot of people on Twitter get freaked out when they see football players kneeling for the national anthem, or detect obscure micro-agressions in some online statement.  When I venture onto Twitter, which I am still not sure is good for my mental health, I get freaked out by this:

My initial response on Twitter was "Of course they are if you leave out the efficiency of converting fuel to electricity".  I will explain this response more in this post.

It would be impossible to say that Eric Schmidt is not a smart guy or lacks technical training.  I'd like to think that he would quickly understand his error and say that he would have said it better when he has 280 characters.  But soooo many people make this mistake, including the folks who write the electric vehicle MPGe standards for the government, that it is worth explaining why Mr. Schmidt's statement, as written, is silly.

Let's first look at what the terms here mean.

  • When we say that electric motors are 97% efficient, we mean that the actual physical work produced per unit of time is 97% of the electrical power used by the motor, which equals the current flowing to the motor times its voltage.
  • When we say that the internal combustion engine is 45% efficient, we mean that the physical work we get out of the engine is 45% of the heat liberated from burning its fuel.

By the way, both these efficiency numbers are the top end of current technology running at an ideal speed and percentage load.  In real life, efficiencies of both are going to be much lower.  Of the two numbers, the efficiency number for internal combustion is probably the most generous -- for non-diesel engines in most cars I would be surprised if the actual efficiency was much higher than half this figure.  Even average electric motors will still be in the 80's.

Here is the problem with what he tweeted

The problem with Schmidt's statement on its face is that he is comparing apples and oranges -- he has left out the efficiency in actually producing the electricity.  And for the vast, vast majority of the country, the marginal fuel -- the fuel providing the electricity for the next increment of load -- is going to be natural gas or coal.  His numbers leave out that conversion step, so let's add it in.

Actual power plants, depending on their age and use, have a wide range of efficiency numbers.  For example, a big combined cycle plan is more efficient that a gas turbine, but a gas turbine is useful because it can be started and stopped really quickly to react to changes in load.  Schmidt used leading-edge efficiency numbers so I will do the same.  For a coal plant the best numbers are in the high forties.  For a gas plant, this can reach into the 50's (this site says 60% but that is the highest I have ever seen).  We will take 50% as a reasonable number for a very very efficient power plant.  Power plants, by the way, since they tend to run constantly at ideal speeds and loads can get much closer to their ideal efficiency in real life than can, say, internal combustion engines.

After the electricity is produced, we have to take into account line and transformer losses (and in the case of electric cars the battery charging losses).  This obviously varies a lot but I have always used a figure of 10% losses so a 90% efficiency number.

Taking these numbers, let's convert the 97% efficiency number for electric motors to an efficiency number all the way back to the fuel so it is apples to apples with internal combustion.  We take 97% times 90% transmission efficiency times 50% electricity production efficiency equals 43.6%.  This is actually less than his 45% figure.  By his own numbers, the electric motor is worse, though I think in reality with realistic efficiency numbers rather than best-possible numbers the electric motor would look better.   The hard step where one is really fighting the laws of thermodynamics is the conversion of heat to work or electricity.  So it is amazing that a tiny power plant in your car can even be in the ballpark of giant optimized multi-stage power plants.

Here is why electric motor efficiency is almost irrelevant to getting rid of fossil fuels

Very efficient electric motors are necessary to moving to a non-fossil fuel economy, but not because of small increments in efficiency.  The reason is that large parts of our energy-using technology, mostly vehicles, run on a liquid fuel directly and this distribution for the fuel is already in place.  To replace this liquid fuel distribution system with something else is really expensive.  But there does exist one other energy distribution system that has already been built out -- for electricity.  So having efficient electric motors allows use of non-gasoline energy sources if those sources can be turned into electricity.  For example, there are real advantages to running vehicles on CNG, but there is no distribution system for that and so its use has been limited to large fleets (like city busses) where they can build their own fueling station.  But electric cars can use electricity from natural gas, as well as solar and wind of course that have no other distribution method other than by electricity.

The problem with all this is that most of the barriers to using electricity in more applications are not related to motor efficiency.  For vehicles, the problem is in energy storage density.  Many different approaches to powering automobiles were tried in the early days, including electric and steam powered cars.  The main reason, I think, that gasoline won out was due to energy storage density.  15 gallons of gasoline weighs 90 pounds and takes up 2 cubic feet.  This will carry a 40 mpg car 600 miles.   The Tesla Model S  85kwh battery pack weighs 1200 pounds and will carry the car 265 miles (from this article the cells themselves occupy about 4 cubic feet if packed perfectly but in this video the whole pack looks much larger).  We can see that even with what Musk claims is twice the energy density of other batteries, the Tesla gets  0.22 miles per pound of fuel/battery while the regular car can get 6.7.  More than an order of magnitude, that is simply an enormous difference, and explains the continued existence of internal combustion engines much better than electric motor inefficiencies.

And here is why electric vehicle equivalent MPG standards are still screwed up

I don't really have the energy to write about this again, but because these issues are so closely related I will quote myself from the past.  Suffice it to say that after years of development, the EPA made nearly the exact same mistake as did Mr. Schmidt's tweet.  This Despite the fact that the agency had already developed an accurate methodology and then abandoned it for a flawed methodology that produced inflated numbers for electric vehicles.  There is more than one way for the government to subsidize electric vehicles!

The Fisker Karma electric car, developed mainly with your tax money so that a bunch of rich VC's wouldn't have to risk any real money, has rolled out with an nominal EPA MPGe of 52 in all electric mode (we will ignore the gasoline engine for this analysis).

Not bad?  Unfortunately, it's a sham.  This figure is calculated using the grossly flawed EPA process that substantially underestimates the amount of fossil fuels required to power the electric car, as I showed in great depth in an earlier Forbes.com article.  In short, the EPA methodology leaves out, among other things, the conversion efficiency in generating the electricity from fossil fuels in the first place [by assuming perfect conversion of the potential energy in the fuel to electricity, the EPA is actually breaking the 2nd law of thermodynamics].

In the Clinton administration, the Department of Energy (DOE) created a far superior well to wheels MPGe metric that honestly compares the typical fossil fuel use of an electric vs. gasoline car, using real-world power plant efficiencies and fuel mixes to figure out how much fuel is used to produce the electricity that goes into the electric car.

As I calculated in my earlier Forbes article, one needs to multiply the EPA MPGe by .365 to get a number that truly compares fossil fuel use of an electric car with a traditional gasoline engine car on an apples to apples basis.  In the case of the Fisker Karma, we get a true MPGe of 19.  This makes it worse than even the city rating of a Ford Explorer SUV.

I Was Not Happy About Trump's Pardon of Joe Arpaio, But This Court Challenge Seems Nuts

I can only guess that the article does a poor job of describing the plaintiffs' argument.  Because the argument that the pardon power impinges on the separation of powers, presumably because it voids a judicial ruling, would be true of any pardon in all of history.  The Constitution seems to be pretty open-ended in granting this power.  As much as it is heartening to see Democratic Congresspersons suddenly develop a concern about Constitutional limits on government power, this seems like a big waste of time and money.

A slate of congressional Democrats is asking a federal judge to invalidate former Sheriff Joe Arpaio's presidential pardon and move forward with sentencing.

Attorneys for 33 members of the U.S. House of Representatives aired their concerns in a "friend of the court" brief filed in federal court on Wednesday morning.

The brief argued that U.S. District Judge Susan Bolton should toss President Donald Trump's pardon of Arpaio, 85, in the interest of protecting the government's division of powers.

"The presidential pardon upon which that motion is based is an encroachment by the Executive on the independence of the Judiciary," the document stated. "The amici urge the Court to defend jealously against that encroachment as the framers intended."

Squishy Words That Create Problems For Using Results of Scientific Studies

The IPCC AR4 summary report had this critical conclusion:

Most of the observed increase in global average temperatures since the mid-20th century is very likely due to the observed increase in anthropogenic GHG concentrations.[7] It is likely that there has been significant anthropogenic warming over the past 50 years averaged over each continent (except Antarctica)

I want to come back to this in a second, but here is a story the Bryan Caplan posted on his blog.  He is quoting from Tetlock and Gardner's Superforecasting

In March 1951 National Intelligence Estimate (NIE) 29-51 was published.  "Although it is impossible to determine which course of action the Kremlin is likely to adopt," the report concluded, "we believe that the extent of [Eastern European] military and propaganda preparations indicate that an attack on Yugoslavia in 1951 should be considered a serious possibility." ...But a few days later, [Sherman] Kent was chatting with a senior State Department official who casually asked, "By the way, what did you people mean by the expression 'serious possibility'?  What kind of odds did you have in mind?"  Kent said he was pessimistic.  He felt the odds were about 65 to 35 in favor of an attack.  The official was started.  He and his colleagues had taken "serious possibility" to mean much lower odds.

Disturbed, Kent went back to his team.  They had all agreed to use "serious possibility" in the NIE so Kent asked each person, in turn, what he thought it meant.  One analyst said it meant odds of about 80 to 20, or four times more likely than not that there would be an invasion.  Another thought it meant odds of 20 to 80 - exactly the opposite.  Other answers were scattered between these extremes.  Kent was floored.

Let's go back to the IPCC summary conclusion, which is quoted and used all over the place  (no one in the media ever actually digs into the charts and analysis, they just stop at this quote).  A few thoughts:

  1. This kind of conclusion is typical of team process and perhaps is a reason that large teams shouldn't do scientific studies.  We wouldn't have aspirin if 500 people all had to agree on a recommendation to allow it.
  2. Climate alarmists often claim "consensus".  Part of the way they get consensus is by excluding anyone who disagrees with them from the IPCC process and publication.  But even within the remaining core, scientists have vast differences in how they evaluate the data.  Consensus only exists because the conclusions use weasel words with uncertain meaning like "most"  and "significant"  (rather than a percentage) and "very likely" (rather than a probability).
  3. Is "most" 51% or 95%?  The difference between these two is almost a doubling of the implied temperature sensitivity to CO2  -- close to the magnitude of difference between lukewarmer and IPCC estimates.  Many skeptics (including myself) think past warming due to man might be 0.3-0.4C which is very nearly encompassed by "most".
  4. It may be that this uncertainty is treated as a feature, not a bug, by activists, who can take a word scientists meant to mean 51% and portray it as meaning nearly 100%.

For an example of this sort of thing taken to an extreme, arguably corrupt level, consider the original 97% global warming consensus survey which asked 77 scientists hand-selected from a pool of over 10,000 working on climate-related topics two questions.  Answering yes to the two questions put you in the 97%.  In the context of what was written above, note the wording:

That anything-but-scientific survey asked two questions. The first: “When compared with pre-1800s levels, do you think that mean global temperatures have generally risen, fallen, or remained relatively constant?”  Few would be expected to dispute this…the planet began thawing out of the “Little Ice Age” in the middle 19th century, predating the Industrial Revolution. (That was the coldest period since the last real Ice Age ended roughly 10,000 years ago.)

The second question asked: “Do you think human activity is a significant contributing factor in changing mean global temperatures?” So what constitutes “significant”? Does “changing” include both cooling and warming… and for both “better” and “worse”? And which contributions…does this include land use changes, such as agriculture and deforestation?

Good Lord, I am a hated skeptic frequently derided as a denier and I would answer both "yes" and be in the 97% consensus.  So would most all of the prominent science-based skeptics you have ever heard of.

 

Most College-Age Kids Probably Can't Remember A Major Hurricane Landfall

Most folks, even those who say they are data-driven, are not data-driven.  They react to their perception.  If some sort of activity suddenly makes the news more, we assume that activity is increasing, even if all that is happening is that the activity is simply making the news more.

A lot of the folks who want to blame this year's landfalling hurricanes on global warming are making this mistake.  If you are 20, the last major hurricane landfalls were in 2005 when you were 8.  The last decade has seen a nearly unprecedented drought in US major hurricane landfalls, so against the backdrop of this drought, several major Atlantic storms seems highly unusual.  But I grew up in the 1960's to the 1980's on the Gulf Coast and hurricanes were a regular part of our life then.  When I lived in Clear Lake City, Texas, we had so many in a few years in the 1980's that I had a special spot picked out to park my car to keep it above flood waters.  In the 1990's, we had a memorable vacation where we rented a house on the North Carolina coast for a month and got hit by three hurricanes -- we spent the whole trip hiding in the laundry room from tornado warnings and evacuating back and forth to the interior of the state.

For those who like simple charts, the WSJ had a good one the other day:

Making this a chart of hurricane landfalls deals with the public perception issue, as landfalls tend to be the only ones we really remember.  But this is actually a terrible metric (even though it makes my point about Irma and Harvey not representing any sort of upward trend) because landfalls are random and may not really represent actual hurricane activity.  A better metric is accumulated cyclonic energy of tropical storms, which looks at a sort of integral of storm strength over time.  This does not show a trend either, but since I cannot find a chart of ACE updated with recent activity I am not going to put it up here.   Here it was as of June of this year, and this chart only goes back to 1970 -- if we had good data early in the 20th century it would have been much higher.

 

 

I Think I Am A Macroeconomics Denier

Microeconomics generally provides a powerful set of tools that have proven useful and successful predictors of how things work in the world.  But I am not sure I trust anything at all from macroeconomics.  Sure, I am fine with work about what contributes to or hinders wealth creation over long time periods -- Ricardo and Adam Smith and Julian Simon and Deirdre McCloskey and that sort of work.  But I am not sure macro is capable of any useful predictions on the 5-20 year scale.  Perhaps it is like climate and trying to isolate output effects of changing one input when millions of other variables are changing is simply impossible for us at this time.  Perhaps the stakes of macro, since it drives major public policy and government spending and regulator decisions, are simply too high for objective work.  I don't know, but I don't trust any of it.  Particularly when so many of the current recommendations for increasing near-term prosperity contradict what we know to have driven long-term prosperity.

My View on the Source of Wealth in the Modern World

About 15 years ago, I wrote something I wanted to repeat here just because I keep looking for it and a lot of my old Typepad blog era stuff is hard to find.  The original post is gone but I quoted from it in 2005.

Since 1700, the GDP per capita in places like the US has risen, in real terms, over 40 fold.  This is a real increase in total wealth, created by the human mind.  And it was unleashed because the world began to change in some fundamental ways around 1700 that allowed the human mind to truly flourish.  Among these changes, I will focus on two:

  1. There was a philosophical and intellectual change where questioning established beliefs and social patterns went from being heresy and unthinkable to being acceptable, and even in vogue.  In other words, men, at first just the elite but soon everyone, were urged to use their mind rather than just relying on established beliefs
  2. There were social and political changes that greatly increased the number of people capable of entrepreneurship.  Before this time, the vast vast majority of people were locked into social positions that allowed them no flexibility to act on a good idea, even if they had one.  By starting to create a large and free middle class, first in the Netherlands and England and then in the US, more people had the ability to use their mind to create new wealth.  Whereas before, perhaps 1% or less of any population really had the freedom to truly act on their ideas, after 1700 many more people began to have this freedom. 

So today's wealth, and everything that goes with it (from shorter work hours to longer life spans) is the result of more people using their minds more freely.

At the time, perhaps to my shame, I had never even heard of Deirdre McCloskey nor her work that has been published in three volumes called the Bourgeois Era explaining what she calls the "great enrichening" (which I am slowly plowing through).  My thinking when I wrote this seems reasonably consistent with her conclusions, though she has obviously been a lot more systematic in thinking about it.  This exchange with Gregory Waymire is a short but quite readable window on her thinking.  She writes in part:

You're adopting a conventional and somewhat silly view that the bourgeoisie were especially diligent, when it is not true as fact and is anyway not the character of the bourgeoisie that
mattered to the Great Enrichment (which by the way was a factor of 30 per capita in countries that fully adopted economic liberalism, not the factor of 10 you quote: look at the passage again, and read slower and longer). Weber sometimes got this right, sometimes wrong. But people tend to read him as saying that higher savings and more diligence, Ben Franklin style (and even Ben did not actually do it), is what made us rich.

One trouble which such a conventional argument is an economic one that Solow-type models (and Smith- and Marx- and Weber- type models) that reduce growth to savings and labor effort are radically mistaken. What matters is human creativity released from ancient trammels....

What made us rich, I argue at no doubt tedious and unreadable length in the Bourgeois Era trilogy, is imagination, ingenuity, radical ideas released. They were released in turn by liberalism, Smith's "liberal plan of [social] equality, [economic] liberty, and legal [justice]."

Woah! You Mean Illegal Activity That We Never Punish is Still Occurring?

Democrats are having fun noting the hypocrisy (after all the focus in the last election on Hillary's email practices) of Trump Administration members doing official business via personal email.  I will leave them to their fun.**

But I will note that I am a huge supporter of FOIA and government transparency and from the very beginning I criticized Hillary Clinton's use of private email primarily because it was clearly done to evade government transparency laws.  We did not punish her for obvious violations, and we did not punish Gina McCarthy when she used private email as the head of the EPA to avoid public scrutiny of her contacts with environmental lobbying groups.  So we should not be surprised if lots of other people are doing the same thing.  Politicians would love to sweep all their private conversations under the rug if we let them.  We need to start charging people for this crime -- even one high-profile person to start pour encourager les autres would be a start.

 

** This is an example of the good side of partisanship -- someone is always in opposition.  Engadget never did a single article on Gina McCarthy or other Obama Administration officials evading FOIA through private email accounts, presumably because it was much more sympathetic to that administration.  But it does not like Trump so it is on the case.  Which is fine-- the watchdogs across administrations don't always have to be the same people, they just need to be there.

 

Bad Police Officers Have Been Successfully Lying To Us For Decades

I have never thought that bad police officers were anything but a small minority of police forces, but unfortunately lack of accountability, a general unwillingness to punish bad officers, and even protection provided to bad officers by good ones all combine to let these bad officers do a lot of damage.

Lawrence Faulkenberry has been awarded $1.3 million for the police brutality he suffered.  But in the decades before inexpensive personal video recording, he would have instead been rotting in jail.

The video, posted below, shows Fauklenberry standing outside his home when three deputies walk up with guns drawn, responding to a false report from his mentally ill son after a spat over homework, who had accused his father of being drunk and carrying a gun.

Not only does Faulkenberry not own a gun, he was not drunk.

“The video plainly shows that at no point during the entire incident did the plaintiff offer any resistance or assault any of the deputies.

...

Not only did Faulkenberry not assault deputies, the video shows Caldwell County Sergeant Dustin M. Yost using a judo-type leg sweep on Faulkenberry, causing him to fall down, even though he appeared to be fully cooperating.

Then all three deputies can be seen piling on top of him with one deputy punching him in the eye and another pushing him down with his knee.

The video also revealed at no point in the video did Faulkenberry assault deputy Michael Taylor and deputy Houseton, which they claimed as justification for their use of force.

Faulkenberry was arrested for felony assault on a public servant, resisting arrest and aggravated assault with a firearm.

One wonders how many innocent people went to jail, and still go to jail, because police know that they can make any story stick -- at least until video evidence started to appear, and even then it is hart to convict police of obvious crimes.

Postscript:  I would add that this case illustrates one of my issues with the BLM approach to police violence -- it is not just an issue of racism.  This is a white victim.  And since it is really hard to fix racism anyway (thought there are police training programs that can help), the solution has to also involve a lot of hard work changing rules and union contracts to increase police accountability, hard work that pretty much is not happening or even being discussed anywhere -- instead we are arguing about NFL millionaires taking a knee during the national anthem.

The Conservatism of Progressives

Despite having a lot of respect for the intellect and the insane eclecticism of its author Tyler Cowen, I have never read the Complacent Class.  The title really did not intrigue me, and frankly from that title probably had the wrong vision of what the book was about.  That is, until I read George Will's recent review, in which he said in part:

In 1800, McCloskey says, the world’s economy was where Bangladesh’s economy now is, with no expectation of change. Today, most of the jobs that existed just a century ago are gone. And we are delighted that this protracted disruption occurred. Now, however, the Great Enrichment is being superseded by the Great Flinch, a recoil against the frictions and uncertainties — the permanent revolution — of economic dynamism. If this continues, the consequences, from increased distributional conflicts to decreased social mobility, are going to be unpleasant.

Although America is said to be — and many Americans are — seething about economic grievances, Tyler Cowen thinks a bigger problem is complacency. In his latest book, “The Complacent Class: The Self-Defeating Quest for the American Dream,” Cowen, professor of almost everything (economics, law, literature) at George Mason University and co-author of the Marginal Revolution blog, argues that the complacent class, although a minority, is skillful at entrenching itself in ways detrimental to the majority....

For complacent Americans, a less dynamic, growth-oriented nation seems less like an alarming prospect than a soothing promise of restfulness. In a great testimonial to capitalism’s power, “The Communist Manifesto,” Karl Marx wrote: “All fixed, fast-frozen relations, with their train of ancient and venerable prejudices and opinions, are swept away, all new-formed ones become antiquated before they can ossify. All that is solid melts into air.” Complacent, because comfortable, Americans have had enough of that.

Hmm, I suppose I should read it.  I don't want to judge the premise of the book from a few lines of a 3rd party review, but the themes here are strikingly similar to something I wrote 13 years ago (!) on this blog in a post titled "Progressives are too Conservative to Like Capitalism".  I still agree with much, though not all, of what I wrote there so I will pare it down a bit:

Most "progressives" (meaning those on the left to far left who prefer that term) would freak if they were called conservative, but what I mean by conservative in this context is not donate-to-Jesse-Helms capital-C Conservative but fearful of change and uncomfortable with uncertainty conservative.

OK, most of you are looking at this askance - aren't progressives always trying to overthrow the government or something?  Aren't they out starting riots at G7 talks?  The answer is yes, sure, but what motivates many of them, at least where it comes to capitalism, is a deep-seated conservatism.

Before I continue to support this argument, I must say that on a number of issues, particularly related to civil liberties and social issues, I call progressives my allies.  On social issues, progressives, like I do, generally support an individual's right to make decisions for themselves, as long as those decisions don't harm others.

However, when we move to fields such as commerce, progressives stop trusting individual decision-making.  Progressives who support the right to a person making unfettered choices in sexual partners don't trust people to make their own choice on seat belt use.  Progressives who support the right of fifteen year old girls to make decisions about abortion without parental notification do not trust these same girls later in life to make their own investment choices with their Social Security funds.  ... [this would also make a good example:  Progressives oppose school choice because they don't think the poor capable of making good education decisions]

Beyond just the concept of individual decision-making, progressives are hugely uncomfortable with capitalism.  Ironically, though progressives want to posture as being "dynamic", the fact is that capitalism is in fact too dynamic for them.  Industries rise and fall, jobs are won and lost, recessions give way to booms.  Progressives want comfort and certainty.  They want to lock things down the way they are. They want to know that such and such job will be there tomorrow and next decade, and will always pay at least X amount.  That is why, in the end, progressives are all statists, because, to paraphrase Hayek, only a government with totalitarian powers can bring the order and certainty and control of individual decision-making that they crave.

Progressive elements in this country have always tried to freeze commerce, to lock this country's economy down in its then-current patterns.  Progressives in the late 19th century were terrified the American economy was shifting from agriculture to industry.  They wanted to stop this, to cement in place patterns where 80-90% of Americans worked on farms.  I, for one, am glad they failed, since for all of the soft glow we have in this country around our description of the family farmer, farming was and can still be a brutal, dawn to dusk endeavor that never really rewards the work people put into it.

This story of progressives trying to stop history has continued to repeat itself through the generations.  In the seventies and eighties, progressives tried to maintain the traditional dominance of heavy industry like steel and automotive, and to prevent the shift of these industries overseas in favor of more service-oriented industries.  Just like the passing of agriculture to industry a century ago inflamed progressives, so too does the current passing of heavy industry to services.

In fact, here is a sure fire test for a progressive.  If given a choice between two worlds:

  1. A capitalist society where the overall levels of wealth and technology continue to increase, though in a pattern that is dynamic, chaotic, generally unpredictable, and whose rewards are unevenly distributed, or...
  2. A "progressive" society where everyone is poorer, but income is generally more evenly distributed.  In this society, jobs and pay and industries change only very slowly, and people have good assurances that they will continue to have what they have today, with little downside but also with very little upside.

Progressives will choose #2.  Even if it means everyone is poorer.  Even if it cuts off any future improvements we might gain in technology or wealth or lifespan or whatever.  They want to take what we have today, divide it up more equally, and then live to eternity with just that.   Progressives want #2 today, and they wanted it just as much in 1900 (just think about if they had been successful -- as just one example, if you are over 44, you would have a 50/50 chance of being dead now).

Don't believe that this is what they would answer?  Well, first, this question has been asked and answered a number of times in surveys, and it always comes out this way.  Second, just look at any policy issue today.  Take prescription drugs in the US - isn't it pretty clear that the progressive position is that they would be willing to pretty much gut incentives for any future drug innovations in trade for having a system in place that guaranteed everyone minimum access to what exists today?  Or take the welfare state in Continental Europe -- isn't it clear that a generation of workers/voters chose certainty over growth and improvement?  That workers 30 years ago voted themselves jobs for life, but at the cost of tremendous unemployment amongst the succeeding generations?

Government Regulatory Template: Subsidize Demand, Restrict Supply

The government does it in health care, education, and housing.  Usually in the name of increasing access to or usage of something, they will subsidize demand.  But then at the same time they will restrict supply, giving lie to this stated justification of increasing access, making the whole exercise a crony enrichment of a small number of incumbent producers or asset owners.  The government creates low income housing programs and subsidized mortgages but limits the ability to construct new homes, thus having the primary effect not of increasing housing access but of driving up home prices for current incumbent home owners.  In health care the government subsidizes access to care in any number of ways but then restricts supply through certificates of need, onerous licencing programs, and drug manufacturing restrictions.

Now, consider solar panels.  The government has many programs to subsidize the purchase of solar panels.  Often, one can get local, state, and federal rebates and tax breaks for buying solar panels.  But at the same time:

President Donald Trump’s pledge to offer American companies more aggressive protection from foreign competition got fresh ammunition Friday, when a government board cleared the way for him to deploy a long-dormant legal weapon to restrict solar panel imports....

In the solar panel case, filed by Georgia-based Suniva Inc. and joined by Oregon-based SolarWorld Americas Inc., the ITC commissioners will now consider specific policy recommendations and submit those to the White House by Nov. 13. Mr. Trump then has two months to decide whether to impose solar trade barriers....

“We brought this action because the U.S. solar manufacturing industry finds itself at the precipice of extinction at the hands of foreign market overcapacity,” Suniva said. The firm filed for bankruptcy protection earlier this year.

This really is utter madness, even from a domestic employment standpoint.  I would be willing to be that the solar panel installation industry, which will be hurt by rising costs of solar panels, employs way more people than the US panel manufacturing industry.  The solar industry's trade association seems to agree:

“Analysts say Suniva’s remedy proposal will double the price of solar, destroy two-thirds of demand, erode billions of dollars in investment and unnecessarily force 88,000 Americans to lose their jobs in 2018,” said the Solar Energy Industries Association, which promotes solar use.

For Progressives who are suspicious of public choice theory, this is they sort of prediction public choice theory makes and should be an area where Progressives and libertarians could make common cause.  But traditionally Progressives have always been trade restrictionists, which seems crazy to me.

 

San Francisco & Austin: Cities So Woke and Progressive That Blacks Are Forced To Leave

I found this interesting from Randal O'Toole

Between 2015 and 2016, the total population of the San Francisco-Oakland urban area grew by 13,773 people, but the black population shrank by 5,839, suggesting that Bay Area land-use policies continue to push low-income people out of the region by making housing unaffordable. The Austin urban area, to its shame, saw a decline of 4,439 blacks despite a total population growth of 25,316.

 

Streetcar Folly

This article on an expansion of the already grossly under-performing Seattle trolley system has everything:  Over-optimistic ridership and revenue projections and no better service than busses while costing substantially more.  It's hard to figure out where to even excerpt this article, which is the kind of skeptical media coverage of light rail and trolleys that one almost never sees, particularly in a Progressive city like Seattle.

Your fares cover about 40 percent of operating costs for Sound Transit’s Link light rail. Fares cover about 31 percent of the cost of King County Metro buses. Seattle’s two streetcar lines cover 23 percent of their costs with fares.

But once a streetcar is built along First Avenue in downtown Seattle, the city Department of Transportation (SDOT) expects fares to cover a whopping 56 percent of operating costs for the three lines.

That would be among the highest rates of any transit agency in the country.

And it’s one of a number of optimistic financial projections contained in Seattle’s plans to expand a streetcar system that is performing far below expectations.

“The financial assumptions are simply unrealistic based on our history with the streetcar,” Seattle City Councilmember Lisa Herbold said. “I don’t want a situation where we don’t meet those projections and the result is we end up seeing bus-service hours cut to pay for any shortfall.”

Which is exactly what happens with every trolley and light rail project, as I reported on in Phoenix recently.

The two streetcar lines — South Lake Union and First Hill — have low ridership that the city doesn’t expect to improve until the First Avenue line is built. But once it is built? The city predicts an exponential surge.

So far this year, the city’s two streetcar lines have averaged about 5,200 riders per weekday, if you filter out 2½ weeks in the spring that the First Hill line was shut because of an uncontrolled skid.

Those numbers, for the two lines combined, equate to about the 25th-most-popular bus line in King County.

SDOT predicts that in its first year of service, the expanded streetcar system will more than quadruple its ridership — to nearly 22,000 weekday riders....

SDOT officials say their ridership model is the gold standard — used by the Federal Transit Administration to validate other agencies’ models.

I loved that last line - "used by the FTA"... not mentioning this model has been overestimating ridership at every other project in the country. I would say it is the gold standard for producing figures to try to sell a bad project to taxpayers.

I wish every article on light rail disclosed this critical piece of information:

Westlake Avenue is a microcosm of the arguments made by streetcar skeptics nationwide, who question their utility if they are not separate from other traffic.

“If you build a streetcar instead of a good bus line, that money you spend above the cost of the bus line is not helping anyone get anywhere faster,” Jarrett Walker, a Portland-based transit consultant, wrote in 2009.

Bus lines are almost always cheaper to build than streetcar lines and they’re also less expensive to operate. It costs King County Metro about $163 an hour to operate a bus, according to federal data, while a South Lake Union streetcar costs $242 an hour, although a streetcar can carry 30 to 40 more people than a double bus.

I will end with the line my reader pulled out from the article

Why, many transit users realized, should they ride the streetcar, which runs barely 1 mile, when buses come four times as often, cover the same stretch as quickly and also extend their routes to West Seattle and Ballard?

Stone Cold Lead Pipe Lock Prediction: Equifax Will Be Changing Its Name Within 18 Months

Whether it be via bankruptcy, a merger, or just an internal rebranding, I am pretty sure the Equifax name will not exist in 18 months**. I had a class in business school that studied cases from a number of corporate PR emergencies -- J & J's aggressive handling of the Tylenol poisoning cases is frequently studied as the gold standard for how to handle such a crisis.  However, most of the cases involved companies repeatedly firing additional rounds into their foot.  Equifax seems to be working from this latter script: (via Zero Hedge)

“Today, Equifax ended up creating that exact situation on Twitter. In a tweet to a potential victim, the credit bureau linked to securityequifax2017.com, instead of equifaxsecurity2017.com. It was an easy mistake to make, but the result sent the user to a site with no connection to Equifax itself. Equifax deleted the tweet shortly after this article was published, but it remained live for nearly 24 hours.”

Further research revealed three more tweets that had sent potential victims to the same false address, dating back as far as September 9th. These tweets have also since been deleted.

“Luckily, the alternate URL Equifax sent the victim to isn’t malicious. Full-stack developer Nick Sweeting set up the misspelled phishing site in order to expose vulnerabilities that existed in Equifax's response page. “I made the site because Equifax made a huge mistake by using a domain that doesn't have any trust attached to it [as opposed to hosting it on equifax.com],” Sweeting tells The Verge. “It makes it ridiculously easy for scammers to come in and build clones — they can buy up dozens of domains, and typo-squat to get people to type in their info.”

I recently froze my credit history at the four major credit monitoring companies.  I was super paranoid about making sure the domain I was entering my personal data into was a subdomain of company's domain.  Freeze.equifax.com would probably be safe.  But equifax.freeze.com would very likely be a phishing site.  As would be www.equifaxfreeze.com or www.freeze.com/equifax.  I know from training our employees on subdomains we use in our own company's web site that 99% of my employees do not understand the differences between these addresses.

 

** Because I can be a jerk but in generally harmless ways, for several years after the Valujet crashes in the Florida swamps I told my friends -- who were flying AirTran to save money -- that they should consider flying Valujet, which I claimed was even cheaper on those routes.  They said no way they would fly Valujet after Valujet had two crashes in a row that were ascribed to lax safety standards.  AirTran at the time was Valujet with the name changed.

Engadget Is My Go-To Source For Bad Economic Analysis. Today's Lesson: Apparently Items Are More Valuable If You Can't Resell Them

The following from Endadget may be clearer if you translate the British "touts" to the American "scalpers"

Touts are unnecessary middlemen, inflating ticket prices purely to create a cut for themselves. Gig-goers hate them, artists hate them, and the government isn't too keen either. The use of automated online bots to hoover up tickets (that are later listed on resale sites with a mark-up) is set to become a criminal offence thanks to the Digital Economy Act. The government has also implored venues and resale sites to address the ways they might be enabling touts. Sure, we might be lose the stub souvenir, but can we just make digital-only ticketing mandatory and kill all the birds with one stone already?

This view of scalpers as leeching middlemen with no economic value but rather as rent-seekers who merely mark up tickets and pocket the money is unfortunately common.  But they are in fact a perfectly normal functioning of markets.  They perform at least two economic functions

  1.  Events often are mispriced for a variety of reasons.  Sometimes they charge too much, as in the recent McGregor-Mayweather fight, and the arena is half-empty.  The market can't do much to fix this.  But sometimes events are under-priced, and the demand far exceeds the available supply of tickets.  When this happens, some method of rationing must occur.  Back in my day rationing was by who was lucky enough to dial in at the exact right moment or who was willing to camp out all night.  Resale markets, including scalpers, where tickets are resold well above face value are another approach.  Scalpers don't make money taking some sort of middleman fee, they make money buying tickets at face and then taking the risk that they can resell them later at a higher price.  They are not always successful.  I have sold a number of tickets I could no longer use under face to get rid of them, taking a loss.
  2. If you cannot resell a ticket to the person you want for the price you like, you lose some of your property rights in that ticket and it is less valuable to you.  Look at airline tickets, which are all electronic today and cannot be resold or transferred.  Are you better off as a consumer not having a secondary market for airline tickets?  Do you really like tickets that are use-them-or-lose-them propositions?  The contention in this article that consumers are better off if their concert tickets worked more like airline tickets is simply nonsense.  Scalpers increase our consumer sovereignty.

It should be noted that a digital ticket does not automatically mean loss of property rights in that ticket.  I bought Dallas Cowboys playoff tickets and Hamilton tickets on a secondary market and got them transferred to me electronically.  The Ticketmaster electronic app, at least currently, allows you to transfer the ticket to someone else and so digital ticketing platforms don't have to mean scalpers go away -- one could easily imagine two guys in a parking lot can still transact in tickets from their cell phones.  But the danger, of course, is that unlike with paper tickets this right of resale can be taken away any time by simply blocking the transfer function.  The article does not make this clear but I assume they are promoting a platform where once you buy the ticket you can only resell it back via the original seller (if at all), or else the entire article would be complete nonsense (always a possibility on engadget).

Artists and producers are complete hypocrites on this issue.  They are jealous because they would like to charge what the market could bear for their tickets but fear fan backlash if they do.  So they keep prices low so they can claim to be the fan's friend, but with a catch -- they hold back a ton of inventory in the hottest shows and do not offer that to the public at the published low price.  They sell this inventory at high prices to sponsors and other special groups or even sell it themselves at high market rates on the same 3rd party resale sites they publicly criticize.   What these folks really want is for there only to be secondary markets that they control. They don't want competition from third parties, and this lack of competition is only going to be worse for the consumer.  Think of it this way -- what if by law you could only resell your car to the dealer you bought it from.  Would you get as good of a price.  Hah!

 

In Comparing Trump to Hitler, We Are Comparing Him to the Wrong German

I just finished re-reading Barbara Tuchman's the Guns of August at almost the same moment I was also reading from Trump's UN speech.  I was struck how much Trump's nationalism flavored with a sense that his country is somehow not getting its due in world affairs seems so similar to Kaiser Wilhelm II, leader of Germany from the late 19th century through the First World War.  And I think the fear many of us have is that Trump's seemingly ham-handed, blustering, confrontational style will mirror Wilhelm's mis-steps that played a large role in the advent of WWI.

It wasn't necessarily that Wilhelm wanted war and conspired to get it -- in fact, his panicky foot-dragging in the crucial late days of late July and early August of 1914 were an interesting part of the story.  He seemed to me like a blowhard in a bar that always talked about throwing down with everyone around him but was surprised on the day he actually found himself being taken out to the parking lot for a real fight (and he was not the only driver of German actions -- the army for one had a beautiful plan and almost couldn't bear not to try it).  But Wilhelm by his bluster and unpredictability and untrustworthiness and at times outright nuttiness spent years making all the options that were not-war less feasible.

The Insanity of Base Load Wind Power

I have talked a lot about how wind power has almost no effect on fossil fuel use because the unpredictability of wind requires a lot of fossil-fueled plants to keep burning fuel on hot standby in case the wind dies.  Matt Ridley comes at wind from a different angle, discussing what it would take for wind to actually have any meaningful impact on world electricity production.

Even put together, wind and photovoltaic solar are supplying less than 1 per cent of global energy demand. From the International Energy Agency’s 2016 Key Renewables Trends, we can see that wind provided 0.46 per cent of global energy consumption in 2014, and solar and tide combined provided 0.35 per cent. Remember this is total energy, not just electricity, which is less than a fifth of all final energy, the rest being the solid, gaseous, and liquid fuels that do the heavy lifting for heat, transport and industry....

Meanwhile, world energy demand has been growing at about 2 per cent a year for nearly 40 years. Between 2013 and 2014, again using International Energy Agency data, it grew by just under 2,000 terawatt-hours.

If wind turbines were to supply all of that growth but no more, how many would need to be built each year? The answer is nearly 350,000, since a two-megawatt turbine can produce about 0.005 terawatt-hours per annum. That’s one-and-a-half times as many as have been built in the world since governments started pouring consumer funds into this so-called industry in the early 2000s.

At a density of, very roughly, 50 acres per megawatt, typical for wind farms, that many turbines would require a land area greater than the British Isles, including Ireland. Every year. If we kept this up for 50 years, we would have covered every square mile of a land area the size of Russia with wind farms. Remember, this would be just to fulfil the new demand for energy, not to displace the vast existing supply of energy from fossil fuels, which currently supply 80 per cent of global energy needs.

How do renewables advocates trumpet the high renewables numbers they often report?  By lumping in other things and hoping the reader is tricked into thinking the total is wind and solar.

Their trick is to hide behind the statement that close to 14 per cent of the world’s energy is renewable, with the implication that this is wind and solar. In fact the vast majority — three quarters — is biomass (mainly wood), and a very large part of that is ‘traditional biomass’; sticks and logs and dung burned by the poor in their homes to cook with. Those people need that energy, but they pay a big price in health problems caused by smoke inhalation.

People who talk about sustainability often miss the single best metric we have of the net scarcity of resources that goes into any product:  price.  I am always amazed when people point at a much much higher price version of some product and claim that it is more sustainable.  How can this possibly be?  Assuming the profit margins are relatively similar, the higher priced product has to be using more and scarcer resources.  How is that more sustainable  (I will perhaps grant the exception that certain emissions are not properly priced into some products).

To this end, wind power is much more expensive than, say, power from modern natural gas generation plants, even if one factors in a $30 a ton or so cost of CO2 emissions.  This has to make us suspicious that maybe it is not really more "sustainable".

Wind turbines, apart from the fibreglass blades, are made mostly of steel, with concrete bases. They need about 200 times as much material per unit of capacity as a modern combined cycle gas turbine. Steel is made with coal, not just to provide the heat for smelting ore, but to supply the carbon in the alloy. Cement is also often made using coal. The machinery of ‘clean’ renewables is the output of the fossil fuel economy, and largely the coal economy.

Wealth Is The New Normal

Today, we spend a lot of time trying to understand the roots of poverty.  This was not so 200 years ago.  When Adam Smith wrote "The Wealth of Nations" his task was to explain why a very few nations at the time seemed to be getting wealthier.  Poverty at the time and through most of history was accepted as the norm.  Only the advent of free inquiry and (relatively) free markets has changed that norm.

Today, I Am Pissed At Black Lives Matter. They Aren't Doing The Hard Detailed Work Change Requires

Like many of the people who are protesting today in St. Louis the acquittal of  Jason Stockley (please, let's hope it stays peaceful) I am angry about the lack of accountability for this behavior:

Smith tried to flee from Stockley on Dec. 20, 2011, following an alleged drug deal, authorities said. During the pursuit, Stockley could be heard saying on an internal police car video he was going to kill Smith, prosecutors said.

Stockley, riding in the passenger seat of a patrol vehicle with his personal AK-47 in one hand and department-issued weapon in the other, shot at Smith’s car, according to St. Louis Circuit Attorney’s Office spokeswoman Susan Ryan and charging documents.

At Stockley’s direction, the driver of the police car slammed into Smith’s vehicle and they came to a stop, court documents said. Stockley then approached Smith’s car and shot him five times with his service weapon.

Stockley’s lawyers said he fired in self-defense because he believed Smith was reaching for a gun but prosecutors said the only gun recovered from the scene had only Stockley’s DNA on it.

Stockley was acquitted of all charges today.  Just read the above and remember that Smith was not some terrorist about to detonate a nuclear weapon, he was involved in a drug sale.  And here is this police officer chasing him in gunzerker dual-wield mode, crashing his car into him and shooting him after stating his intention to do so over the radio.

But I am also pissed off at BLM.  Why?  Well, I suppose if they encourage folks to violence today I will be mad at them for that.  But I am really mad at the total failure they have become as a change organization.  For years many lone voices have tried to point out issues with police violence and the lack of accountability for it.  BLM did a great job of substantially raising awareness of these issues through protests and disruptions.  But protest and disruption (and collecting donations) is all they seem to be able to do.  The time is long past that they need to be leading the hard work of renegotiating police union contracts and changing local laws.  BLM should have been ready for a day like today with a list of model legislation they can be waving in front of cameras saying this is the list of things we need to be doing in every city to prevent a repeat of this travesty.  Instead, all we will watch is more protests and violence.

Why do I single out BLM?  Why is it their responsibility?  Because they have sucked all the oxygen out of the room.   They wanted to be -- and are -- the de facto leaders on this issue.  They get all the funding.  They get all the celebrity support.  And they are not doing jack except perhaps alienating people they will need to work with to make progress.  They actually had a good plan in the beginning that they have since abandoned in favor of posturing and virtue signalling.   In contrast look at the ACLU, the IJ, and ALEC and how they spend their resources.   It reminds me of exactly how the Trump Administration operates, as so ably described by Megan McArdle today.  Lots of posturing, no ability to do the hard, detailed work to make change.

Trump Administration Wants More Private Operation of Public Parks. Here Is What That Would Require

A lot of people have been asking me about Secretary Zinke's statements about encouraging more private operation of parks.  First the good news, its a great idea.  Here is my standard 400-word essay on why:

Should National Park’s be privatized, in the sense that they are turned entirely over to private owners?  No.  Public lands are in public hands for a reason — the public wants the government, not, say, Ritz-Carlton, to decide the use and character and access to the land.  No one wants a McDonald’s in front of Old Faithful, a common fear I hear time and again when privatization is mentioned.

However, once the agency determines the character of and facilities on the land, should their operation (as opposed to their ownership) be privatized?  Sure.   The NPS faces hundreds of millions of dollars in capital needs and deferred maintenance.  It is crazy to use its limited budget to have Federal civil service employees cleaning bathrooms and manning the gatehouse, when private companies have proven they can do a quality job so much less expensively.  The US Forest Service, for example, has had private operators in over a thousand of its largest parks for nearly thirty years, and unlike state parks agencies or even the NPS, it is not considering park closures or accumulating deferred maintenance, despite having its recreation budget axed.  Why? Because its partnership program with private operators is a fundamentally sounder, lower-cost approach to park operations.

In fact, such public-private partnerships are nothing new for the NPS.  The NPS was an early innovator in this field, and currently private companies operate many of the visitor services in parks, such as lodges and gift shops.  The US Forest Service innovation, which has been copied by many agencies including most recently California State Parks, has been to turn over operations of the whole park, not just the lodge, to a private company.  These are highly structured contracts, wherein the private company cannot modify the facilities or change fees without agency approval, and must meet a range of detailed performance goals.

Most critiques of private park operations center around quality and fees.  While there certainly have been some isolated failures, in general the results have been quite good.  In Arizona, a recent poll by CampArizona.com ranked the top 10 public campgrounds in Arizona.  Of these, three of the top five were US Forest Service campgrounds run by a private operator, as was the top Arizona campground in Sunset Magazine’s “Best of the West”  (OK, I have to brag, these are all run by my company). As for fee concerns, state-run parks in California charge $30 for a no-hookup camp site.  Privately operated public campgrounds in California forests seldom charge more than $18.

My company operates over 150 state, county, and federal parks.  I encourage you to take the “Pepsi Challenge” and see some of them for yourself.  They are well-run, generally with more staff than a typical state park, and have no significant deferred maintenance backlog.  Oh, and not a single one has a McDonald’s, a billboard, or a neon sign in front of a national monument.

Now for the bad news:  I am skeptical any progress will be made, for several reasons.

  1. The rank and file of these organizations are generally against private operation of any of their functions.  For a couple of reasons.  First, people who work in government tend, through a self-selection process, to be people who are more confident in government solutions and more skeptical of private solutions.  Second, agency leaders are seldom judged on things like efficiency or customer service.  I read and act on every single negative review that comes in for our operations.  It is impossible to imagine the head of Arizona State Parks (which is about the same size as our company in terms of revenue and visitors) doing such a thing.  Agency leaders get their pay and prestige based on the size of their budget and headcount, and private outsourcing even of non-core functions works against this.
  2. Overcoming this skepticism takes a lot of hard work, organizational work the Trump Administration has shown itself either unable or unwilling to undertake so far.   As a minimum, change requires messaging that engages the rank and file, not just the Republican base.   In most lands agency, it would also require that they scrap their insanely useless (but time-consuming) planning processes in favor of a real portfolio planning process that assigns recreation lands to different customer segments (e.g. wilderness experience vs. high development) and then explicitly addresses where private capital and operating efficiency could help.

The good news is that I think there is a path to success.  The privatization message should offer real benefits agency personnel care about (and I am pretty sure tax reduction is not one of these).  Privatizing things like bathroom cleaning would allow the agency to stop overpaying for routine non-core tasks and allow it to free up resources for things its employees (and the public) are passionate about, like addressing the enormous deferred maintenance account in most lands agencies and reversing crumbling infrastructure in parks.  Most agency employees joined with recreation or environmental science degrees and don't want to clean bathrooms or deal with angry customers anyway.

For the public, recreators who like a lot of infrastructure and facilities are natural supporters of private operation and bringing in private capital to public lands, but the most passionate advocates for public lands are disproportionately folks who want wilderness experiences and distrust development.  That is why having a portfolio management process for public lands is so important.  The Forest Service, for example, makes every campground they own in the west look the same.  I can close my eyes and tell you what your Forest Service campground looks like even if I have never been there.  This is crazy.   Create something like a "Wild Camping" label and attach it to a subset of the portfolio and don't allow any development.  Even remove development.  Then have other sites for more developed camping.   Maybe sites that focus on first-timers or kids.  Maybe lower-cost value sites.  (People always assume that as a private operator, I want to develop everything, but I don't.  Sure I have places where we have cabins and showers and electricity at every site.  But I also operate pure primitive sites with no power, water, or even cell service.  Hell, in some ways I like operating the latter better -- less to go wrong.)

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.

Phoenix Transit Ridership Continues to Fall as Light Rail Investment Goes Up

Well, the numbers are in for the 2017 fiscal year (which ends June 30) and after another huge investment in light rail, Phoenix has lost more transit ridership.   From the Valley Metro web site:

First, credit where it is due.  After years of bizarre chartsmanship where bars on their graphs bore only a passing relationship to the numbers being graphed, Valley Metro seems to have adopted a new (or their first) graphing program.

As you can see, while light rail trips were up by about a million, bus trips were again down by over 2 million, for a net loss in transit ridership of over a million, the fourth year in a row this has been the case.  I had expected rail ridership to rise, since in 2016 the rail system was expanded by 31% in length and 36% in cumulative investment.  This extension resulting in a 15.6% increase in rail ridership between 2015 and 2017.  Early on, I got in a debate with supporters of the line arguing that since they had cherry-picked the densest corridor in town to start, incremental extensions would actually reduce ridership per mile because they would be serving less promising routes.  Supporters argued that I was ignoring network effects and that ridership would rise faster than line length.  I guess we are sorting out that argument now.

In the ten years leading up to the opening of the light rail line, transit ridership grew by an average of 6.7% a year in Phoenix.  In the 8 years since the rail line's opening, total transit ridership has fallen 1% per year.  This is a well known effect (at least well known to all but rail die-hards) that Randal O'Toole, among others, has been pointing out for years.  Since light rail is an order of magnitude more expensive to operate per passenger-mile, and since transit budgets are never infinite, growing light rail tends to strangle bus traffic, because bus routes and service have to be cut to feed money into the light rail money pit.  Since every dollar spent on rail moves fewer passengers than a dollar spent on buses, transferring money from buses to trail reduces total ridership.  It is worth noting that had the line not been built and bus transit had been allowed to grow as it had before the line, there might have been over 40 million more trips last year assuming pre-2009 growth rates.

The Teaching Company (Also Known as Great Courses)

A while back I was writing about something -- the Civil War I think -- and I mentioned that I had been lucky enough to have James McPherson as a professor.  I remember a comment on the post that said something like "yes, yes we know, you went to Princeton."  I certainly was lucky, and that school contributed a lot to what I am.  But as far as attributing sh*t I know to a source, Princeton is in at least second place.   By far the greatest source of what I know about history, art, music and even about the sciences comes from the Teaching Company.  And that is available to all of you, no SAT required.

I just checked my account and I have taken 71 courses from them, including 54 history courses**.  I think I have taken, for example, pretty much all the courses on this list in a Tyler Cowen post.  I began my journey taking courses on things that had always interested me but I knew a fair amount about already, such as the history of Ancient Rome or the Civil War or WWII.  But the most fun I have had has been taking courses on periods I knew little about -- such as Daileader's great histories of the Middle Ages or the History of China.  And I have had the most fun taking courses on things I knew NOTHING about, such as the history of India, of pre-Columbian American civilization, and of nomadic civilizations of Asia.

The key thing to remember is:  never pay rack rate.  Everything goes on sale from time to time.  Today until midnight, for example, they are having a 70% off sale on a subset of their stuff.  You can still get cd's and dvd's if you want but I used to get the digital download for my iPod and increasingly just stream the audio from an android app and stream the video from their Roku app.

 

** My family thinks I am weird because I listen to these courses as I run and work out (instead of music).  But it turns out this was not nearly as weird as when I have done Pimmsleur language courses while I am running.  If you want to really take your mind off your running, try to diagram a sentence in your head to figure out which of freaking German article you should be using.  Also, it creates a nice reputation around the neighborhood for eccentricity if you babble in foreign languages as you run.