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Public Key Encryption

This video, linked by Tyler Cowen, is the best I have seen to simplify the basic theory of public key encryption:

This follow-up video takes this basic understanding and explains RSA encryption

Can Congress Keep Its Hands off Anything?

Representative introduces bill set set minimum airplane seat pitch.

Coyote on the Real Clear Radio Hour

Bill Frezza interviewed me for his show the other day.  I felt it was not one of my better performances but he says he is a wizard of editing so we will see.  Anyway, I am actually sharing the show with Coyote-favorite Dr. Richard Lindzen, so at least that half of the show should be worth your time.  Here are the details:

Tune in Saturday, February 13th to RealClear Radio Hour with Bill Frezza with guests Richard Lindzen and Warren Meyer.

You can listen live on Bloomberg’s Boston iHeartRadio or Bloomberg’s San Francisco iHeartRadioSaturdays at 10a PT/ 1p ET, 4p PT/ 7p ET or Sundays at 1a PT/ 4a ET.

Government Science Monopoly

Richard Lindzen, atmospheric physicist, MIT professor emeritus, and lead author of the “Physical Climate Processes and Feedbacks” chapter of the 2001 Intergovernmental Panel on Climate Change report, attributes climate hype to politics, money, and propaganda. Lindzen particularly takes issue with the “97% consensus” claim that is being used to stifle debate and demonize skeptics.

Rescuing Public Parks

Warren Meyer, founder and president of Recreation Resource Management, shares how he has successfully managed public parks for nearly 25 years. Meyer advocates for whole park concessions—privatized management of public parks—to save them from closure and agency mismanagement.

If you can't tune in live - download the as-aired shows from iTunes or listen to podcasts with additional content on SoundCloud or YouTube

 

The weekly one-hour program airs:

WXKS 1200 and WJMN 94.5F in Boston Saturdays 1p & 7p & Sundays 4a ET,

KNEW 960 & KOSF 103.7 in San Francisco Saturdays 10a & 4p & Sundays 1a PT,

1030 KVOI in Tucson, AZ Saturdays 4a MT,

KSBN 1230 Money Talk in Spokane, WA Saturdays 5a PT,

Cities 92.9FM WRPW in Bloomington, IL Saturdays 7a CT,

1590 WSMN in Nashua, NH Saturdays 12p ET,

KATE 1450AM in Alberta Lea, MN Saturdays 1p CT,

1330 WEBY in Pensacola, FL Saturdays 3p CT,

The Patriot, KRMR 105.7FM in Hays, KS Sundays 3p CT,

The Patriot, KNNS 1510AM in Larned, KS Sundays 3p CT,

KVOW 1450 in Riverton, WY Sundays 3p MT, and

WROM Radio in Detroit, MI Mondays 8p ET

Does the ACLU Still Support the First Amendment?

The ACLU has always been an important but imperfect organization.  Historically, its biggest problem IMO has been its Stalinist origins and its resulting complete silence on, even at times hostility towards, property rights.   But it was always wonderfully absolutist in protecting free speech.  One of my first blog posts, which I can't seem to find, 10+ years ago was a post congratulating the ACLU to the distasteful but necesary task of defending the free speech rights of neo-Nazis.

Unfortunately, the rising opposition to free speech on the Left seems to be infecting the ACLU.  Via Ronald Collins:

Wendy Kaminer is an ardent free-speech advocate; she is currently a member of the advisory board of the Foundation for Individual Rights in Education (FIRE). Ms. Kaminer Kaminer was a member of the board of the ACLU of Massachusetts from the early 1990s until June 2009. She was also a national board member of the ACLU from 1999 until her term expired in June 2006. As to the omission of any reference to protecting First Amendment free-speech freedoms in the 2016 Workplan, she stated:

I’m not at all surprised that the ACLU’s 2016 work plan doesn’t include an explicit commitment to protecting freedom of speech. At the national level, ACLU has been exercising its right to remain silent on key free speech issues for years, in apparent deference to progressive support for restricting speech deemed racist, sexist, homophobic or otherwise exclusionary. Still, while it’s unsurprising, the ACLU’s withdrawal from free speech battles that could eventually lead the U.S. to adopt a Western European approach to regulating “hate speech” is indeed alarming. As threats to free speech intensify — on campus (thanks partly to arguably unconstitutional federal mandates) and in the remarkable tendency of some liberals to blame the victims of violence for giving offense to their murderers (remember Charlie Hebdo) — the ACLU’s timidity in protecting speech looks more and more like complicity in censoring it.

Here is how Harvey A. Silverglate, co-founder of FIRE and a former member of the Board President of the ACLU of Massachusetts, replied:

Sadly, it comes as no surprise that the national ACLU Board and Staff are nowhere to be seen in the increasingly difficult battle to protect First Amendment freedom of expression rights. This is especially so in areas where the ACLU, more and more, pursues a political or social agenda where the overriding importance of the goal transcends, in the eyes of ACLU’s leadership, the needed vitality of free speech principles neutrally and apolitically applied. Fortunately, some ACLU state affiliates still carry the free speech battle flag, but they are a diminishing army in a war that is getting more and more difficult, even though more and more important, to wage.

 

Winners in the "Find Coyote A Special Laundry Rack" Contest

A few days ago I asked readers if they could find me a laundry drying rack that could elevate with an electric winch, to take advantage of the limited floor space but 12 foot ceilings in my bizarrely designed laundry room.  These are surprisingly common in Asia but I could not find any for sale in the US.

Several of the early responses found manual ones but missed on the electric/automatic spec  (e.g  here and here).  I may in the end get one of these and motorize it but the contest specified already motorized.

Phil had the first winning entry, finding this Asian model for sale to the US in retail lots.  Its too expensive, and Dwight found one later much cheaper, but the contest was for first email, and did not say anything about price.  I will give Dwight honorable mention because I feel like I searched the Sh*t out of Amazon and somehow missed this.

I decided to give a second award to Neil.  He was the first one to go a little more creative and search beyond laundry to get something with the right functionality but designed for a different application.  It is not the most attractive item in the world but easily has the best price-value ratio of any solution so I awarded a second prize for it.

Finally, while it does not win, Brad gets honorable mention for this closet solution, which is not quite what I am looking for, but might have been made to work if I didn't have other options.

Thanks to everyone.  I'll post a picture when we finally install something.

 

Stupid BS Government Officials Get Away with Everywhere

I don't know if you have ever had to write a check or sent a form to a county assessor, clerk, treasurer or the like.  But the odds are that the forms you were working with did not tell you to send a check to "Loudon County Tax Assessor" but to something like "Mike Cambell, Loudon County Tax Assessor."  There is absolutely no reason the assessor's personal name has to be on the check, or on the forms, or on the letterhead, or on the envelope, or on the return address.  But it is.  Because this is a way that small-scale elected officials have found to get free advertising and name recognition in their next election at taxpayer expense.  It is an advantage they have structured as incumbents against any would-be challengers.

And it has real costs even beyond the artificial limiting of electoral competition.  When the current assessor loses office, or retires, or just gets hit by a bus, all the printed materials in the office have to be thrown away as they all had his or her name on them and are thus obsolete.  All new material has to be printed.   Someone has to go in and manually edit every single form.  The printer has to reset to make a new batch of return address envelopes and such.  The bank needs to be notified that checks to the deposit will be addressed to a different person.  It is crazy.

Social Justice Warriors and Original Sin

I have come to the conclusion that the concept of original sin must be one of those that are quite appealing to humans.

For literally millennia, original sin has been a foundational part of much of Christianity.  We were all born with original sin, and so effectively started life with guilt.  It turns out that it is much easier to exercise power over the guilty than over people who consider themselves innocent.  The Catholic Church took advantage of this power by claiming that no individual could wipe away their original sin, their inherited guilt, without active engagement with the Church itself.  I will leave aside theological arguments** here, but conclude that the Church used the original sin doctrine in part to enhance its temporal power.

As Christianity fades somewhat as an active part of Western culture, the idea of Christian original sin seldom comes up much in any practical way.  But that does not mean the world has abandoned the concept of original sin - no indeed.  Racism is one of the classic examples of original sin - in it, someone born black, or Jewish, or whatever, is tainted with an original sin that they cannot wash away, and makes them somehow inferior to others.

Much of what social justice warriors say sounds racist to me, as they often offer negative generalizations of whole groups based on race, or gender, or sexual preference.  In my naive younger days I used to think that judging anyone based on their race rather than their individual actions and values was racism.    However, SJW's have managed to change linguistics in their favor, conveniently redefining racism (or sexism) as only applying to those in historically more powerful groups  (e.g. white males).  By this definition, a black woman can never be a racist, no matter how much she negatively stereotypes other racial groups.

Well, OK then.  I am tired of fighting this definitional issue.  So I will just say that SJW's frequently fall in the trap of believing in original sin.  Whites, males, heteros, successful people - they are all tainted in the SJW mind with original sin, so much that any utterance from any individual in these groups is deemed as having no value and therefore should be ignored or actively suppressed.  This is actually a radical version of original sin that goes way farther than the Catholic Church ever took it, though I would argue it is promulgated for roughly the same reason - to enhance one's power.

 

** Speaking of original sin, in one of the great misconceptions that Christians have of their own religion, the immaculate conception was not Mary's virgin birth of Jesus but rather her own birth without the taint of original sin.

Ugh, Aging

My college roommates and I in college, at our 25th reunion, and just this January in Thailand.

room1

room 3

room 2

How Low Can Journalism Sink? Retailer Selling Blank Paper Where They Used to Sell Magazines

Here is the magazine rack at my local Fry's Electronics store.  They used to sell a huge array of magazines.  Now they are selling blank notebook paper and spiral notebooks

blank-paper-instead-of-maga

It is bad enough that magazines were seen as a poor enough product that they get replaced by a bunch of generic, low-value, presumably low-margin items.  But I find it especially ironic that periodicals have been replaced by blank bound paper.  It implies that the paper in the magazines had value but the writing on them somehow reduced that value, such that they would rather just sell paper that is blank.

Where Are the Gender Warriors When You Need Them?

The other day I reported on the new, quite onerous race and gender reporting being proposed by the Obama Administration.  One thought I had when I was thinking how we might implement this -- the forms only have two gender options, Male and Female.

For most of us, that might seem almost tautological, but for certain gender warriors this is an act of hostility beyond imagination.  How can the government assume people only self-identify in 2 genders?  What about Agender, Androgyne, Androgynous, Bigender, Cis, Cisgender, Cis Female, Cis Male, Cis Man, Cis Woman, Cisgender Female, Cisgender Male, Cisgender Man, Cisgender Woman, Female to Male, FTM, Gender Fluid, Gender Nonconforming, Gender Questioning, Gender Variant, Genderqueer, Intersex, Male to Female, MTF, Neither, Neutrois, Non-binary, Other, Pangender, Trans, Trans*, Trans Female, Trans* Female, Trans Male, Trans* Male, Trans Man, Trans* Man, Trans Person, Trans* Person, Trans Woman, Trans* Woman, Transfeminine, Transgender, Transgender Female, Transgender Male, Transgender Man, Transgender Person, Transgender Woman, Transmasculine, Transsexual, Transsexual Female, Transsexual Male, Transsexual Man, Transsexual Person, Transsexual Woman,  and Two-Spirit?

What we need is for the gender warriors to tie up this regulation in 15 or 20 years of litigation.

(By the way, each new gender added, by the nature of how the data reporting is set up, adds an additional 1800 fields to the report).

$10 Amazon Gift Card Giveaway

I will give a $10 Amazon gift card to the first person with an email in my inbox (coyote--at---coyoteblog dot com) with a North American retail source (no large lots) for something similar to this:

Does not need to be a scissor lift, could be cables but must be motorized.   We have a very modern house which sometimes results in odd rooms.  Our laundry room is tiny in footprint but has a 12 foot ceiling (!).  So I was just in the process of designing a motor lifted frame with poles to hang clothes for drying** that could lift up and down from the ceiling when I saw this.  They seem to have many in Asia but I can't find one here.    This one has some sort of air drying system which we don't need so that is not a necessary part of the package.   This is a (homemade I think) hand winched version which would also be OK if it were motorized.

PS, this is not quite it

Update:  Thanks.  I have a couple of winners I will announce.

**Phoenix has approx. 5% humidity so we don't need to bother hanging them outside, they will dry anywhere in hours.

New EEOC Payroll Reporting Rule Proposed -- I am Officially Exhausted With This Administration

I have written here before that all the free time I used to invest thinking about how to improve my business has been spent over the last 4-5 years solely on figuring out how to comply with new government regulations.  We are still trying to figure out the ins and outs of required Obamacare reporting, we have no idea yet how we are going to comply with new rules turning all of our salaried managers into timeclock punchers, and now there is this:

On the anniversary of President Barack Obama signing the Lilly Ledbetter Fair Pay Act, the Equal Employment Opportunity Commission has announced proposed changes to its EEO-1 report, requiring employers to submit employee W-2 earnings and hours worked. All employers with at least 100 employees would be required to comply. EEOC and the Office of Federal Contract Compliance Programs (OFCCP) would jointly have access to the pay data for enforcement purposes.

Available are advance copies of the proposed rule and the proposed pay reporting form.

While the Obama Administration’s January 29 statement announcing the proposal focused mainly on the gender “pay gap” as the basis for the new requirements, the proposed changes will mandate submission of pay data broken down by race/ethnicity, in addition to gender.

For the past few years, at the President’s direction, EEOC and OFCCP have sought to develop a reporting tool that would require employers to submit pay data on employees nationwide so the agencies can target investigations to address the gender “pay gap.” This proposal is the culmination of that effort.

The proposed rule will be published on February 1 and interested parties will have 60 days to submit comments.

Forget for a moment that the whole purpose of this rule is to provide litigation attorneys a database they can mine to legally harass businesses.  The reporting requirements here are incredibly onerous.  It takes the current EEO-1 (the annual exercise where we strive for a post-racial society by racially categorizing all of our employees) and makes it something like 15-20 times longer.  In addition, rather than simply "count" an employee as being on staff in a certain race-gender category, we now have to report their income and hours worked.  Either I will have to hire staff just to do this stupid report, or I will again (like with Obamacare) have to pay a third party thousands of dollars a year to satisfy yet another government reporting requirement.  This is utter madness.

Get this -- the report has 3600 individual cells that must be filled in.  And this is in addition to the current EEO-1 form, which also still has to be filled out.  The draft rule assumes 6-7 hours per company per year for this reporting.  They must be joking.

In the past, I have merely asked each local manager to tell me how many folks they have in each racial category.  Now, I am going to have to put everyone's race and gender into the payroll system -- there is no other way to do this.  And by the way, I just checked.  I have a very capable payroll company and I don't see any way to report wages and hours by race.

Congratulations Obama Administration, but I believe you have made me a Republican voter in the next Presidential election.  I have not voted for a Republican for President since George HW Bush, generally voting for whatever libertarian candidate is present.  For a while, particularly when one compared GWB to Bill Clinton, Republicans just were not that much better on economic issues than Democrats and they were terrible on social issues and things like immigration.  Now I am going to have to hold my nose on all that stuff and become a one-issue voter like my wife (she votes solely on abortion availability) and vote solely for people who have some prospect of not larding on more of this kind of crap.  And while I don't know the R's very well, for sure Hillary and Bernie will just be more of the same.

Update:   More here from the same source, who has the same observations about what a joke the administrative burden calculations are that I had.

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.

It's 2016 And Microsoft STILL Can't Do Bulleted Lists in Word Correctly

I am just staggered.  I am trying to create and edit a simple 2 level  (e.g. 1-a-b-c-2-3-4-a-b-5) etc. list in Microsoft Word and the bulleting STILL does not work right after, what, at least 10 major versions of the software?  Microsoft spends like a million man-hours screwing with the user interface so I constantly have to waste time hunting around looking for options like footer editing but they can't fix bullet points.  This is just unbelievably stupid.  No wonder productivity growth has flattened in this country -- MS Office is single-handedly trying to reduce it for everyone.

If you have worked with a law firm lately, you may well have found one still using Word Perfect.  Don't remember Word Perfect?  Beyond their being the king of the cntl-right shift-j style of commands, the one thing they could do even 20 years ago was manage a hierarchical list without making a total mess.

When I Make My Biggest Business Mistakes

As you probably can guess, I am spurred to write this post as I finally and forever bury the last traces of one of my larger business mistakes (which means that hopefully, the last of the restructuring charges are behind me).  I believe there is one constant element that permeates most of my major business mistakes:

My greatest mistakes have been made when I allow someone else's enthusiasm to overcome my rational business judgement.

I don't claim that this is everyone's problem, just mine.  I will say that the one thing about business disasters that follow a pattern is that it becomes easier to spot and avoid this pattern in the future.

Postscript:  I will add that I think this problem is a common feature of politics.  I personally fell into this trap with my initial support of the Iraq war, and I think a lot of others would say the same.  I feel like I avoided this trap with Obama.  In some sense, the political process has always used enthusiasm, or fear, or shame, or some other emotion to overcome the public's rational hesitation to have the government doing any number of things.  The Iowa caucus process is practically designed to allow group enthusiasm to trump people's rational voting intentions.

Perhaps My Most Hated Tax

This may surprise you, because it is one that is seldom discussed, but perhaps my most hated tax is local (usually county level) business personal property tax.

Why?  The actual tax bill itself is trivial.  The problem is that the paperwork is incredibly irritating.  Essentially, by each location, we have to keep track of every computer, printer, vehicle, fax machine, filing cabinet, microwave, store shelf, refrigerator, trailer, lawn mower, leaf blower (etc. etc. etc.) we own and report the value of every asset by class of equipment and year of acquisition.  And then we have to report additions and deletions to these assets.  When you consider we operate in over 30 counties, this becomes a big pain in the butt.

The net effect is that it is an enormous hassle that results in very few tax collections.  Kudos to states like Florida, that have recently initiated exemptions for companies with asset totals under a certain number.  In a lot of states I would happily pay a slightly higher fixed amount of money in lieu of all the tracking and reporting.

US Temperature Trends, In Context

There was some debate a while back around about a temperature chart some Conservative groups were passing around.

Obviously, on this scale, global warming does not look too scary.  The question is, is this scale at all relevant?  I could re-scale the 1929 stock market drop to a chart that goes from Dow 0 to, say, Dow 100,000 and the drop would hardly be noticeable.  That re-scaling wouldn't change the fact that the 1929 stock market crash was incredibly meaningful and had large impacts on the economy.  Kevin Drum wrote about the temperature chart above,

This is so phenomenally stupid that I figured it had to be a joke of some kind.

Mother Jones has banned me from commenting on Drum's site, so I could not participate in the conversation over this chart.  But I thought about it for a while, and I think the chart's author perhaps has a point but pulled it off poorly.  I am going to take another shot at it.

First, I always show the historic temperature anomaly on the zoomed in scale that you are used to seeing, e.g.  (as usual, click to enlarge)

click to enlarge

The problem with this chart is that it is utterly without context just as much as the previous chart.  Is 0.8C a lot or a little?  Going back to our stock market analogy, it's a bit like showing the recent daily fluctuations of the Dow on a scale from 16,300 to 16,350.  The variations will look huge, much larger than either their percentage variation or their meaningfulness to all but the most panicky investors.

So I have started including the chart below as well.  Note that it is in Fahrenheit (vs. the anomaly chart above in Celsius) because US audiences have a better intuition for Fahrenheit, and is only for the US vs. the global chart above.  It shows the range of variation in US monthly averages, with the orange being the monthly average daily maximum temperature across the US, the dark blue showing the monthly average daily minimum temperature, and the green the monthly mean.  The dotted line is the long-term linear trend

click to enlarge

Note that these are the US averages -- the full range of daily maximums and minimums for the US as a whole would be wider and the full range of individual location temperatures would be wider still.   A couple of observations:

  • It is always dangerous to eyeball charts, but you should be able to see what is well known to climate scientists (and not just some skeptic fever dream) -- that much of the increase over the last 30 years (and even 100 years) of average temperatures has come not from higher daytime highs but from higher nighttime minimum temperatures.  This is one reason skeptics often roll their eyes as attribution of 15 degree summer daytime record heat waves to global warming, since the majority of the global warming signal can actually be found with winter and nighttime temperatures.
  • The other reason skeptics roll their eyes at attribution of 15 degree heat waves to 1 degree long term trends is that this one degree trend is trivial compared to the natural variation found in intra-day temperatures, between seasons, or even across years.  It is for this context that I think this view of temperature trends is useful as a supplement to traditional anomaly charts (in my standard presentation, I show this chart scale once and the standard anomaly chart scale further up about 30 times, so that utility has limits).

Thank God We Have Unionized Government Workers and Not Some Damn Private Company

The TSA, which apparently stands for Theater of Security Absurdity, apparently is completely useless:

According to a report based on an internal investigation, "red teams" with the Department of Homeland Security's Office of the Inspector General were able to get banned items through the screening process in 67 out of 70 tests it conducted across the nation.

The test results were first reported by ABC News, and government officials confirmed them to CNN. Mark Hatfield, acting deputy director, will take over for Melvin Carraway until a new acting administrator is appointed. It was not immediately clear Tuesday where Carraway would be reassigned.

Fortunately, the TSA has been successful in creating accountability-free sinecures with stupendous pension and benefit plans for thousands of people who apparently learned the security trade from Sargent Schultz.

Local Media Still Trying to Save the Phoenix NHL Team

No one loves local sports teams more than the local media.  I think they know, but probably won't admit, that they would lose a huge chunk of their remaining readership / viewership for their news products if they did not have local sports to report on.  So you will almost never, ever, ever see local media reporting reporting on the true cost (in terms of handouts of taxpayer money) to retaining pro teams.

My coverage of the Phoenix/Arizona Coyotes hockey team goes way back, including even to a mention in a George Will column.  I won't repeat all of that.  I just want to point to this article entitled "Glendale selects AEG to manage Gila River Arena; Arizona Coyotes' future unclear."

Glendale selected facilities-management company AEG Facilities to operate Gila River Arena, likely hastening the city's split with the Arizona Coyotes hockey team.

The telling thing about the article is that it never once explains to readers why this bid award might hasten the split with the Coyotes.  They mention that the Coyotes chose not to bid on the contract.   So why is this award a problem for them?  Do they hate AEG for some reason?  If you really were new to the issues here, you would have to scratch your head and wonder why the two issues were connected.

Oddly enough, everyone knows the reason, but the local media really wants to avoid mentioning this reason.  Here is the elephant in the room no one will recognize:  The Coyotes struggle to make money in this market, a fact made worse by the terrible location of the stadium at the far end of town from most of the potential corporate ticket buyers and wealthy people.   As a result, the team languished in bankruptcy for years, in part because the NHL (who took over the team) refused to sell it at a reasonable market price.

They finally found a buyer who agreed to buy it for an above-market price, but did so only because there was an implicit promise by the town of Glendale to subsidize them the $100 million difference between the actual and market price of the team..  The Goldwater Institute called foul on this subsidy and got it stopped.  So the town found a way around it, promising to award the team the stadium management contract for a price  $8-$10 million a year above market rates for the service.   The present value of this above-market pricing over the life of the proposed contract nearly exactly matched the earlier subsidy proposal Goldwater killed.  Various folks cried foul again, seeing through this sham, and got that stopped.

So the reason this award of the stadium management contract to AEG is so devastating to the Coyotes is that this contract represented the last hope of exacting a hidden subsidy from the city.  With this contract awarded to an arms-length third party at market rates, the last chance of making the Coyote's business viable on the taxpayer's backs seems to have escaped.

Update:  I am hearing now that another reason the Coyotes are done in Glendale is that they think the city of Phoenix or Scottsdale will build them a new stadium.  ugh.  Will it never end.

When Julia Tried to Start a Business

I was doing a radio interview and was reminded of this article I wrote in response to the famous Obama "Life of Julia" piece extolling the virtues of government in our lives.  Since I spend so much of my time in the last few years finding ways to comply with ever more onerous regulations (rather than actually improving my business or customer service) I thought I would offer a different view.  When I argue that free market proponents need to talk about taxes less and regulation more, this is what I am thinking about.

Since it has been several years since this went up at Forbes, I want to reprint it here in full:

Last week, the Obama Administration released a campaign piece about the life of Julia, showing how Julia benefited from taxpayer largess and oversight by the state at many points in her life. But the campaign piece was incomplete, and missed the part where Julia attempted to start her own business. Long before she started a web business out of her home, she tried to start a retail business.

Julia always liked the outdoors — remember that taxpayers helped her retire from productive work so she could work in a community garden. Well, as she was growing up, Julia loved to camp outdoors. For years she camped at a lovely lakefront public campground until it was forced to close — unfortunately, the government agency that ran the campground had operating costs that were so much higher than the fees charged to visitors that they couldn’t afford to keep it open any longer.

But Julia had an idea. After forming a corporation (a surprisingly easy task with lots of private companies competing to help one complete the proper legal steps), Julia approached the public parks agency about the possibility of her leasing the campground and reopening it under private management. She was surprised, though, at the tremendous opposition she encountered in the agency. Despite the fact that she was willing to adhere to operating standards and restrictions set by the public agency, she initially encountered tremendous resistance. She had assumed a parks and recreation agency would welcome the opportunity to reopen a park to the public, be she had underestimated the near universal opposition to private enterprise she found among the agency’s employees.

Eventually, though, with a lot of hard work and some help from a local TV station that rallied park users to her cause, the public agency agreed to a one-year pilot of her idea.

So the hard part was behind her, right? Probably not. In fact, Julia expected entrepreneurship to be tough. She was worried about the challenges of hiring good employees, getting financing for new equipment, and marketing her new campground. As it turned out, though, she would have little time for any of these concerns.

Before she could even think about hiring employees, she had to get a federal tax ID number, or FEIN, for her company. This identification number allows her to collect and pay her employee’s Social Security and Medicare taxes, as well as withhold and submit the Federal income tax obligations of her employees. In addition to these reports, she also learned that she had to file a separate report each quarter on her employee’s earnings in order to file and pay Federal unemployment taxes.

But her state has its own income tax, so she had to register for a separate ID number to report and pay employee state tax withholding, and then had to fill out yet another registration for another ID number to file another regular report to pay state unemployment taxes. Her state also has a public rather than private workers compensation system, so she registered for another number so she could fill out another monthly report to pay state workers compensation premiums.

And of course, since Julia intends to make retail sales, she needed to register with the state (yet another number and report) to collect and pay sales tax — though her state calls it a “privilege” tax rather than a sales tax because, as the state’s web site explains, conducting commerce is a privilege that can only be exercised with the state’s permission. She is momentarily encouraged when she finds out her state sales tax does not apply to camping, only to eventually find out this is because the state has a completely separate system (yes, another registration number and monthly report) for collecting and paying lodging taxes. So sales in her campground store will be at one tax rate on one report while campsite rentals in the same park will pay a different tax rate on a different report. Which seems overly complicated until she finds out her county also has a separate sales and lodging tax that are added to the state’s, and must be reported separately under a different registration number to the County. Thank goodness she is not in a city, or she could easily have had to file and pay three separate sales taxes and three separate lodging taxes (city, county, state). If she ever decides to rent boats on the lake, she will have to get another state registration to pay a special state boat rental tax, the percentage of which varies based on whether a boat is motorized or human-powered.

Whew. Julia thought she had finally tracked down all her tax registrations, but she was wrong. Her corporation is an S-corporation, so she files and pays her corporate income taxes on her individual return. But it turns out her state also has a franchise tax on corporations she must pay separately, based on her total revenues. In addition, it turns out that each year she must produce a complete list of all her businesses personal property, from lawn mowers to computers to radios to chairs, and submit this list to the County so she can pay property taxes on all these items. Unfortunately, in her state the property tax bill does not end there. When the public agency was running the campground, the county was not allowed to charge another government agency property taxes on the assets. The agency still owns the property — it is just leasing it to Julia so she can operate it — but the county has a mechanism called the Leasehold Excise Tax to make Julia pay the property taxes the agency doesn’t have to pay.

So twelve registration numbers and 12 monthly/quarterly/yearly reports later, surely Julia has fulfilled all her obligations to the government. Unfortunately, no, because she has not even begun to address licensing issues. To begin, the County will require that she get an occupancy permit for her campground, which must be renewed annually. This seemed surprisingly easy, until someone from the County noticed she had removed an old rotting wooden deck from the back of her store that had been a safety issue and an eyesore. It turns out she was in violation of County law because she did not get a removal permit first. She was required to get a permit retroactively, which eventually required payments to seven different County agencies and at one point required, for a reason she never understood, the collection and testing of a soil sample.

Because she will be selling packaged foods in her store (e.g. chips and pop-tarts), she also has to get a health department license and inspection. She had originally intended to keep some fresh-brewed coffee for customers in the store, but it turned out that required a higher-level health license and eight hours training in food handling. She might have been willing to pursue it, but the inspector told her that to make coffee, she would need to install a three-basin stainless steel wash-up sink plus a separate mop sink in her store, and she decided that coffee would have to wait.

Once through the general health licensing process, she then needed to obtain licenses for individual products. She wanted to sell aspirin, so she had to get a state over-the counter drug sale license. She knew that customers would want cigarettes, so she had to obtain a tobacco sales license. One day as she was setting up, a state inspector noticed she had a carton of eggs in her cooler, and notified her she needed a state license to sell eggs (as Dave Barry would say, I am not making this up). And then there was the problem of beer.

She knew that selling beer would require an alcohol license. In addition to requiring a long, tedious application, getting such a license required that she be finger-printed at the local Sheriff’s office, that she measure the distance in feet to the nearest three stores that sold alcohol and the nearest school and church, and that she attend eight hours of special alcohol sales training. The whole application process took many months — at one point her application was kicked back to her because she included a computer CAD drawing of the store when the instructions require the drawing be made by hand (I repeat, I am not making this up). She finally thought she was home-free, when she found her state requires a public hearing as a final step to determine if the market really needs another liquor retailer. At that hearing, several large, powerful local liquor businesses testified that the market was already saturated and that they already had plenty of competition, thank you very much, and her application was denied.

By the time Julia called it quits, she still had multiple applications pending. She hadn’t yet figured out how to create the stormwater runnoff management plan needed for her stormwater permit. She hadn’t been able to satisfy the state air resources board in permitting her small above-ground fuel tank. And she was still going back and forth with the state department of water resources for her drinking water sampling and testing plan.

Julia gave up her dream of working outdoors, and spent the rest of her life closeted in a room staring at a computer screen. It wasn’t what she really wanted to do, but web design does not require a license (yet) and she could avoid the hassles involved with having employees. The public never got its park back, and the campground still sits closed, the facilities falling apart from neglect. But a few months after Julia gave up, a park agency employee wrote a scathing editorial in the local paper, citing Julia’s failure as a great example of how private enterprise has failed and the need for public agencies to do more.

Julia’s experience is a composite, but is based entirely on my personal, real experiences. Every tax, registration, report, inspection, and license mentioned is a real one my company has had to obtain at some point in our expansion to new states. The only difference is in the story of the liquor license, where after my local competitors initially blocked the license I had the wherewithal to fight and eventually get it issued.

Of Course There Are Accusations of Fraud in Iowa...

...Because the caucus process is absolutely backwards.  It uses non-anonymous voting, for god sakes.   Sophisticated democracies adopted anonymous voting centuries ago for really good reasons -- in particular it limited the ability to pressure people before and after their vote.  So no one should be surprised that a stupid system without anonymity designed to allow voters to "persuade" people voting for someone else over to their side results in stories of coercion and fraud.  Iowa should not be the first primary, not the least because of the damn ethanol issue but also because their process is archaic.

Federal Anti-SLAPP Statute -- Why It Is a Great Idea

Apparently, several lawmakers have proposed a Federal anti-SLAPP lawsuit.  This is a fabulous idea and long overdue.

I will say this is not a theoretical case for me.  I have to walk softly here because I am still in litigation, but I am currently being sued for defamation by a major corporation over a review of their services I posted hear and at Yelp  ( I won't name them but a quick search of my site for my being sued will get you there).   The suit is pretty transparently aimed at suppressing criticism, and only because I have some independent resources have I been able to pay the legal bills so far and stick to my guns.  Right or wrong has little to do with the suit -- I have every expectation of prevailing if this ever goes to trial, especially since the State of California just declared their product illegal in that state over many of the same issues I raised in my review. -- this is about making criticism of the company so expensive and scary that the average person won't attempt it.

Finally, The First Reason I Have Been Given to Vote Trump

Brown vs. Board of Education, 1954-2016