Archive for the ‘Government’ Category.

Congress and Obama Enticing States Further into Bankruptcy

I missed this in the original discussion of the stimulus.  I was one of the first to point out that most of the stimulus was earmarked for maintenance of state government budgets rather than the infrastructure projects people thought they were getting  (here and here).  But I missed this part of the law, which basically made acceptance of these funds a suicide pact for many states:

Worst of all, at the behest of the public employee unions, Congress imposed "maintenance of effort" spending requirements on states. These federal laws prohibit state legislatures from cutting spending on 15 programs, from road building to welfare, if the state took even a dollar of stimulus cash for these purposes.

One provision prohibits states from cutting Medicaid benefits or eligibility below levels in effect on July 1, 2008. That date, not coincidentally, was the peak of the last economic cycle when states were awash in revenue. State spending soared at a nearly 8% annual rate from 2004-2008, far faster than inflation and population growth, and liberals want to keep funding at that level.

A study by the Evergreen Freedom Foundation in Seattle found that "because Washington state lawmakers accepted $820 million in education stimulus dollars, only 9 percent of the state's $6.8 billion K-12 budget is eligible for reductions in fiscal year 2010 or 2011." More than 85% of Washington state's Medicaid budget is exempt from cuts and nearly 75% of college funding is off the table. It's bad enough that Congress can't balance its own budget, but now it is making it nearly impossible for states to balance theirs.

These spending requirements come when state revenues are on a downward spiral. State revenues declined by more than 10% in 2009, and tax collections are expected to be flat at best in 2010. In Indiana, nominal revenues in 2011 may be lower than in 2006. Arizona's revenues are expected to be lower this year than they were in 2004. Some states don't expect to regain their 2007 revenue peak until 2012.

So when states should be reducing outlays to match a new normal of lower revenue collections, federal stimulus rules mean many states will have little choice but to raise taxes to meet their constitutional balanced budget requirements. Thank you, Nancy Pelosi.

Apparently a couple of states (no surprise, Texas is among them) were smart enough to turn down some of the money.

What Government is Good At

The TSA may be unable to successfully seize explosives before they get on an airplane, but they are able to successfully seize the laptops of bloggers who are critical of their organization.

Napolitano: Last Politician to Head DHS

I have said for a while that Homeland Security is the worst possible job for any politician who actually wants to have a future political career.  The job is all downside.  I wrote a year ago:

Yeah, I know it is not a done deal, but the rumors are that our governor Janet Napolitano will be Obama's choice for Homeland Security.

On its face, this both makes a ton of sense, and simultaneously is odd.  It makes sense because Napolitano is one of those rising Democratic stars who get special love in part for not being white males.  It is odd because pulling her up to Washington would, by law, pass the governorship for the next two years to the Republicans (the Secretary of State completes the term, and she is a Republican).  It also strikes me as odd because I think Homeland Security would be an absolutely awful platform for launching a run for higher office.  That job has no upside "“ it is all downside.

But the final reason in the end that this may make sense can be seen in this table below from Paul Kedrosky on projected state budget deficits as a percentage of state revenues

Arizona is almost in as bad of shape as California, and California is a disaster area.  So the financial chickens are about to come to roost here in Arizona for the drunken spending spree the state has been on, presided over by Napolitano.  To preserve her from going to the Gray Davis Memorial Retirement Home for Failed Governors, Obama is likely to beam her up to Washington.

As I wrote before, I don't think Napolitano would normally have accepted this job had she not been desperate for a face-saving way to escape Arizona mid-term.  But after recent events, I think it is highly unlikely anyone else on an elected-official career track will take this job.  Look senior FBI or CIA types on the future.

Update: More here from Expresso Pundit.

So in the next six months--probably much sooner--Janet will move on and the President will pick an obscure, non-political, retired General who is clearly qualified and above reproach.

Security Theater

I am a little late to the game, but in case you have not seen the new DHS regs (apparently only in place until December 30, when they will no doubt come up with something even stupider, here they are.

Highlights:

  • Physical patdowns of some but not all of a passenger's body, to exclude areas of the body actually used by the recent terrorist to secret his bomb components.
  • No getting up in the last hour of the flight, for no good reason than the last threat occurred in the last hour of the flight.  Of course, the 9/11 hijackings occurred in the first hour of the flight.
  • Services that are actually starting to make air flight more tolerable are banned, including midair Internet access and real-time satellite TV feeds.  And no more of that telling you where you are and how long until you land - you'll just have to wait for the landing gear to kiss the ground to know when you are landing.
  • Everything that was inspected at the security point has to be reinspected at the gate
  • Don't bother trying to read anything on the flight or occupy your mind in any way - personal items banned in the first and last hour.
  • Only one carry-on, so plan to check your bag, paying the airline to do so, and then add an extra 45 minutes at your destination to wait for it to finally be delivered back to you.

I used to fly about 100,000 miles a year in this job.  I am now down to 25,000, despite the fact my business is even more spread out.  A bit more effort from the DHS and I will get it down to zero.

Expect A LOT More of This With The New Federal Health Care Rules

Via the Dallas Morning News:

A last-minute change in the federal health care bill ditched a proposed 5 percent tax on cosmetic medical procedures and replaced it with a 10 percent tax on indoor tanning services.

Goodbye Botox tax. Hello tan tax.

This seems really random.  Why should either of these businesses foot a special, disproportionate share of my health care bill?  Well, things that seem random to most of us make perfect sense in Congress.

The tan tax popped up in the health care bill last weekend after powerful medical lobbies "“ including the American Academy of Dermatology Association, American Medical Association, American Society of Plastic Surgeons and Botox-maker Allergan "“ persuaded Congress to remove a tax on cosmetic medical procedures and replace it with a 10 percent surcharge on indoor tanning services.

Lobbyists are very good at punching political hot-buttons.  Since they couldn't argue that botox is "for the children," and since it is generally used by rich white people they could not place the race or class card, they played the only card they had:

"Since 90 percent of cosmetic surgery patients are women, this would have been a very discriminatory tax," said White, who opposed the cosmetic surgery tax.

Technocrats want to believe, and perhaps honestly believe themselves, that care guidelines in the new Federal health care system will be science-based.  What possible basis do they have for thinking that?  We have 50 state laboratories, where states specify must-carry rules on procedures, and not a single one of these lists are science based -- they are loaded with special interest handouts.   I even show in this post how special interests give money to academia to produce studies whose entire conclusion is that certain procedures (performed by the special interest group funding the study) need to be in the minimum coverage laws.   The very first time out, when confronted with a science-based care recommendation (that women not receive breast cancer screening until after 50), the Congress specifically overrode it in the bill under a firestorm of public outcry.

But maybe the dermatologist guys are really looking after us?  After all:

The American Academy of Dermatology warns of significant health risks caused by indoor tanning.

But, as it turns out, it only sees health risks in the use of ultra-violet light by practitioners who are not members of their trade group.  I have bolded the key passage that gives away the game.

Indoor tanning industry groups note that dermatologists use tanning equipment in their offices for cosmetic skin conditions, such as eczema and psoriasis, in phototherapy treatments that cost up to $100 per visit billed to health insurance companies. In contrast, indoor tanning salons cost as little as $6 to $20 per session.

The tan tax would exempt phototherapy services performed by a licensed medical professional.

"This is like Coke being allowed to lobby the government to tax Pepsi, but that Coke be allowed to sell the same product and not be taxed for it," International Smart Tan Network Vice President Joseph Levy said in a statement. "It's unbelievable."

Explain the Difference

Is there any difference between Hugo Chavez and Barack Obama in terms of how they approach the auto industry?  "Make the kind of cars I thing you should, or the government will take you over."

Mr. Chavez said his socialist government is going to apply strict quotas regarding the number and types of vehicles auto makers can produce. The president also ordered his trade minister, Eduardo Saman, to inspect the Toyota plant, saying it may not be making enough "rustic vehicles," a style of all-terrain vehicle that is much-needed in Venezuela's countryside, where they are often converted into minibuses.

"They'll have to fulfill [the quotas], and if not, they can get out," Mr. Chavez said during a televised address. "We'll bring in another company."

He said if the inspection shows Toyota isn't producing what he thinks it should and isn't transferring technology, the government may consider taking over its plant and have a Chinese company operate it. "We'll take it, we'll expropriate it, we'll pay them what it's worth and immediately call on the Chinese," Mr. Chavez said. Chinese companies, he said, are willing to make vehicles made for the countryside.

It seems like Venezuelan workers want the same deal Obama gave the UAW:

Venezuela's auto sector is in tatters amid recurring labor problems that have led to a lack of productivity. Analysts say many auto workers hope their company is nationalized so they can become de facto government workers and enjoy the extra job security that comes with that status.

By the way, this seems like a suckers play -- please put more valuable stuff in your store window so when we break in there is more to steal:

Mr. Chavez said late Wednesday the Japanese auto maker needs to transfer more new technologies and manufacturing methods from headquarters to its local unit in Venezuela.

While Mr. Chavez directed most of his criticism at Toyota, he said other auto assemblers, including Fiat SpA and General Motors, are also guilty of not sharing technology from abroad with their Venezuelan units.

The left often seems to imply that the US government is too eager to shed blood to protect American industry overseas, but in point of fact American industry has had to live with the reality for decades that foreign governments often steal billions of dollars in American-owned assets with barely a peep being heard from the US government.  For example, there is really no such thing as a Saudi or Libyan or Venezuelan or even Mexican oil industry - those are just assets paid for and built by private Western concerns and then stolen by local governments.

And You Thought I Was Cynical and Paranoid?

July 16, 2009

It is totally clear to me that Obama and Pelosi will spend any amount of money to pass their key legislative initiatives.  In the case of Waxman-Markey, the marginal price per vote turned out to be about $3.5 billion.  But they didn't even blink at paying this.  That is why I fear that some horrible form of health care "reform" may actually pass.  If it does, the marginal cost per vote may be higher, but I don't think our leaders care.

Instapundit, December 21, 2009

CASH FOR CLOTURE: "You can't even dignify this squalid racket as bribery: If I try to buy a cop, I have to use my own money. But, when Harry Reid buys a senator, he uses my money, too. It doesn't "˜border on immoral': it drives straight through the frontier post and heads for the dark heartland of immoral."

Plus, Oh, Nebraska. So what exactly was different about what Rod Blagojevich did?

Plus, keeping track of the bribes.

San Francisco: Progressive Paradise or Bankrupt Banana Republic?

Great article in the SF Weekly on San Francisco:  The Worst Run Big City in the US.  The article is lengthy and packed full of government fail.  Just one example:

You can't get San Francisco running efficiently, because that would require large numbers of unionized city workers to willingly admit their redundancy and wastefulness. Inefficiency pays their salaries. "It's been going on for decades," Peskin says.

This problem comes up almost every time the city negotiates labor contracts, which is part of the reason San Francisco is constantly on the brink of fiscal ruin. Politically powerful unions "” the progressives are beholden to the service unions; moderates cater to police, firefighters, and building trades; and Republicans ... what's a Republican? "” negotiate contracts the city knows it can't afford. Politicians approve them, despite needing to balance the budget every year, because the budget impact of proposed contracts is examined by the Board of Supervisors only for the following year, no matter how long contracts run. According to former city controller Ed Harrington, it has become common practice not to schedule any raises for the first year of a contract, but to provide extensive raises in later years.

The result is a contract that looks affordable one year out, then blows up in the city's face. City employees receive up to 90 percent of their already generous salaries in pensions and many also receive lifetime health care "” meaning that as they retire, labor costs soar.

Sounds like the health care bill in Congress, no?  The bit near the beginning on the problem in the parks department - overstaffing, no one showing up for work, lost money, poor controls, no process - particularly resonate with me.  My business is the privatization of public parks.  I can't tell you how many public parks agencies I know to be providing terrible service (service levels that I would be ashamed of) with grossly inflated budgets tell me face-to-face that they can't privatize because that would jeopardize the quality of the parks.  Well, that and the fact that the public employees unions would not allow it.

I always laugh when folks tell me that government intervention is needed because private industry is too short term oriented.  But no one is more short term oriented than politicians looking to the next election or closing this year's budget hole.  In particular, capital maintenance is always ignored until infrastructure is literally falling apart.   We see it in parks, transit systems, roads, schools, etc.  It is the same phenomenon that causes third world state-run oil companies to have their production fall off - instead of reinvesting their profits into upgrades and maintenace of their fields and infrastructure (as those short-term focused American oil companies do) they transfer the money into social giveaways that cement their political power.  Here is a great example from San Francisco:

In 2002, the San Francisco Chronicle revealed that the city had, for decades, been siphoning nearly $700 million from its Hetch Hetchy water system into the San Francisco General Fund instead of maintaining the aging aqueduct. Several mayors and boards of supervisors used that money to fund pet causes, and the Public Utilities Commission didn't say no. Unfortunately, spending maintenance money elsewhere doesn't diminish the need for maintenance. By 2002, the water system was in such desperate condition that voters were asked to pass a $3.6 billion bond measure to make overdue fixes. Obligingly, they did "” who doesn't like water? Since then, the projected costs have swelled by $1 billion. So far.

My favorite line:

"San Francisco is Disneyland for adults, or a place people go until they grow up."

Please Mock These People

Every one of these members of the House Subcommittee on Commerce, Trade, and Consumer Protection voted to pass this absurd law out of committee except Rep. John Barrow, D-Ga.

Bobby L. Rush, Illinois, Chairman

Jan Schakowsky, IL, Vice Chair George Radanovich, CA, Ranking Member
John P. Sarbanes, MD Cliff Stearns, FL
Betty Sutton, OH Ed Whitfield, KY
Frank Pallone, Jr., NJ Joseph R. Pitts, PA
Bart Gordon, TN Mary Bono Mack, CA
Bart Stupak, MI Lee Terry, NE
Gene Green, TX Sue Wilkins Myrick, NC
Charles A. Gonzalez, TX John Sullivan, OK
Anthony D. Weiner, NY Tim Murphy, PA
Jim Matheson, UT Phil Gingrey, GA
G. K. Butterfield, NC Steve Scalise, LA
John Barrow, GA (voted NO!)
Doris O. Matsui, CA
Kathy Castor, FL
Zachary T. Space, OH
Bruce L. Braley, IA
Diana DeGette, CO

Hat tip: Don Boudreaux

Dear Keynesians: Please Explain How We Get a >1 Multiplier from This

Via Valley Fever:

Republican senators submitted a report to Congress yesterday outlining billions of dollars of useless or stupid spending in the Obama stimulus plan.

What do we mean by useless or stupid? How about $100,000 for a puppet show in Minnesota or a $2 million replica railroad in Nevada....

The wasteful spending isn't isolated to Minnesota and Nevada, some of it is right here in Arizona.

According to the report, Arizona State University and the University of Arizona were given nearly a million dollars to study the work habits of ants.

"I had no idea that so much expertise concerning ants resided in the major universities of my state," McCain says. "I say that with an element of pride, but I'm not sure its deserving of these taxpayers' dollars."

Here are some I wish I had won grants for, at least in my youth:

Some of the other gems outlined in McCain's catalog of stupid spending are a $400,000 grant awarded to the University of Buffalo for a study on kids who smoke weed and drink malt liquor, a dinner cruise boat in Chicago that got $1 million to fight terrorism, and a $219,000 grant to the National Institute of Health to determine whether college chicks are more likely to "hook up" after drinking.

In other words, the federal government spent $219,000 to study beer goggles.

Look in the Dictionary Under Dysfunctional and You Will Find This

Taxpayers in Maricopa County (which includes Phoenix) are paying millions of dollars for officials within the county government to sue each other:

Lawsuits between county agencies including the Sheriff's Office, the County Attorney's Office and the Treasurer's Office against county administration have cost more than $2.5 million in legal fees according to the county's records through early November.

The Sheriff's Office has used attorneys from Ogletree, Deakins, Nash, Smoak and Stewart to wage legal battles with the county on issues including control of a law-enforcement computer system and the need to release surveillance footage of sheriff's deputies arresting Supervisor Don Stapley

in a county parking garage.

Next year, the Sheriff's office has asked for $7 million for this purpose.  Wow.  Given that I despise Sheriff Arpaio, I would love to lay this all at his door step but my sense is that the dysfunctionality goes broader and deeper.

The Evolution of Activism

A couple of years ago I wrote:

Activist: A person who believes so strongly that a problem needs to be remedied that she dedicates substantial time to "¦ getting other people to fix the problem.   It used to be that activists sought voluntary help for their pet problem, and thus retained some semblance of honor.  However, our self-styled elite became frustrated at some point in the past that despite their Ivy League masters degrees in sociology, other people did not seem to respect their ideas nor were they particularly interested in the activist's pet issues.  So activists sought out the double shortcut of spending their time not solving the problem themselves, and not convincing other people to help, but convincing the government it should compel others to fix the supposed problem.  This fascism of good intentions usually consists of government taking money from the populace to throw at the activist's issue, but can also take the form of government-compelled labor and/or government limitations on choice.

So now, we have the next step -- advocating that others spend their time convincing government to use compulsion to solve some imagined problem.  Kevin Drum urges:

The only real way to address climate change is to make broad changes to laws and incentives.  It puts everyone on a level playing field, it gives everyone a framework for making their own choices, and it gives us a fighting chance of making the deep cuts we need to.  So listen to Tidwell: "Don't spend an hour changing your light bulbs. Don't take a day to caulk your windows. Instead, pick up a phone, open a laptop, or travel to a U.S. Senate office near you and turn the tables: 'What are the 10 green statutes you're working on to save the planet, Senator?'"

Jackboots seem to be "in" this season.

Postscript: In the language of mathematics (I mentioned before I am in the middle of Goedel-Escher-Bach) if actually aiding someone is "helping," then I guess organizing people to help is meta helping, and lobbying government to force other people to help is meta meta helping and so advocating on your blog that people should lobby the government to force other people to help is meta meta meta helping.  Must really warm Drum's heart to be so directly connected with helping people.

Friday Funnies #2, Via the SEIU

The union whose president leads the world in visits to the White House this year has shown what is at the heart of its quest to help mankind -- a  naked power grab.

In pursuit of an Eagle Scout badge, Kevin Anderson, 17, has toiled for more than 200 hours hours over several weeks to clear a walking path in an east Allentown park.

Little did the do-gooder know that his altruistic act would put him in the cross hairs of the city's largest municipal union.

Nick Balzano, president of the local Service Employees International Union, told Allentown City Council Tuesday that the union is considering filing a grievance against the city for allowing Anderson to clear a 1,000-foot walking and biking path at Kimmets Lock Park.

"We'll be looking into the Cub Scout or Boy Scout who did the trails," Balzano told the council.

Balzano said Saturday he isn't targeting Boy Scouts. But given the city's decision in July to lay off 39 SEIU members, Balzano said "there's to be no volunteers." No one except union members may pick up a hoe or shovel, plant a flower or clear a walking path.

via Alex Tabarrok

Life Support for Government

I have warned about this before:

In fact, Hollywood's portion of the stimulus package reveals an important factor of the Recovery Act: The money is not going to areas that would more directly stimulate the economy but instead to provide ongoing life support to deficit-ridden federal, state and local agencies.

That is the main impression I have gotten when reading the stimulus jobs data base -- the fake districts and BS accounting did not catch my eye so much as the fact that all the jobs seemed to  be saved jobs in government agencies.  I am pretty sure that had the stimulus been originally sold with its true goals -- to help stave off financial accountability in state and local governments -- it would have had more difficulty passing.

Though some of us saw this even in the bill itself (this blog, Jan 27, 2009)

So do you see my point. The reason so much of this infrastructure bill can be spent in the next two years is that there is no infrastructure in it, at least in the first two years!  42% of the deficit impact in 2009/2010 is tax cuts, another 44% is in transfer payments to individuals and state governments.  1% is defense.  At least 5% seems to be just pumping up a number of budgets with no infrastructure impact (such as at Homeland Security).  And at most 6% is infrastructure and green energy.  I say at most because it is unclear if this stuff is really incremental, and much of this budget may be for planners and government departments rather than actual facilities on the ground.

LOL

Obama specifically promises not to spend the stimulus money on dog parks  (as an example of what people would consider frivolous public investment).  Katherine Mangu-Ward brings us this picture of a stimulus funded dog park near her home:

4066569328_acac66a054

Bernie Madoff Counts the Stimulus

Cafe Hayek has a series of articles here and here on the absurd numerical games going on to pump up the stimulus numbers (which I also offered example of here, where pay increases were considered a "job saved").

For example:

Up to one-fourth of the 110,000 jobs reported as saved by federal stimulus money in California probably never were in danger, a Bee review has found.

California State University officials reported late last week that they saved more jobs with stimulus money than the number of jobs saved in Texas "“ and in 44 other states.

In a required state report to the federal government, the university system said the $268.5 million it received in stimulus funding through October allowed it to retain 26,156 employees.

That total represents more than half of CSU's statewide work force. However, university officials confirmed Thursday that half their workers were not going to be laid off without the stimulus dollars.

"This is not really a real number of people," CSU spokeswoman Clara Potes-Fellow said. "It's like a budget number."

Also here:

While Massachusetts recipients of federal stimulus money collectively report 12,374 jobs saved or created, a Globe review shows that number is wildly exaggerated. Organizations that received stimulus money miscounted jobs, filed erroneous figures, or claimed jobs for work that has not yet started.

The Globe's finding is based on the federal government's just-released accounts of stimulus spending at the end of October. It lists the nearly $4 billion in stimulus awards made to an array of Massachusetts government agencies, universities, hospitals, private businesses, and nonprofit organizations, and notes how many jobs each created or saved.

But in interviews with recipients, the Globe found that several openly acknowledged creating far fewer jobs than they have been credited for.

One of the largest reported jobs figures comes from Bridgewater State College, which is listed as using $77,181 in stimulus money for 160 full-time work-study jobs for students. But Bridgewater State spokesman Bryan Baldwin said the college made a mistake and the actual number of new jobs was "almost nothing.'' Bridgewater has submitted a correction, but it is not yet reflected in the report.

It is becoming clearer and clearer that the vast majority of "jobs saved" were in government, and in effect the stimulus merely had the effect of bailing out state governments that were able to use stimulus money to put off their budget reckonings.

The Murder Weapon Is Covered With His Wife's Fingerprints -- We Better Arrest the Butler

I am a bit late to this but from Arnold Kling:

The further into this crisis we go, the greater the share of subprime loans and mortgage losses are turning out to be located at Freddie and Fannie. Even one year ago, if you had asked me, I would have told you to expect at least 2/3 of the losses to be at companies like Citi and Bear, with less than 1/3 at Freddie and Fannie. It now looks quite different. Conservatively, 3/4 of taxpayers losses will be at Freddie and Fannie. Perhaps as much as 90 percent of taxpayer losses will be there.

Given the large role of Freddie and Fannie, it makes sense for politicians to create as large a diversion as possible. Hence, the brouhaha over bonuses at bailed-out banks.

Incidentally, the debate over the "public option" in health reform also can be viewed as an exercise in symbolic politics and diversion. The point is to divert attention away from the bankruptcy of Medicare.

The Honey Trap for Obama

I argued last week that all the electric vehicle talk we heard so much of at Chrysler and GM during their restructuring (remember all those GM electric car ads on TV, which have now disappeared?) were just a honey trap for Obama.  Auto makers knew that they were not designing a car for the masses, but for one man, to get him to put taxpayer money into their companies.  Now that they actually have to think about selling these cars to the public, the ads have disappeared and now Chrysler is ending its EV program.

I want to take you back to their restructuring plan.  The plan had 7 steps, listed in priority order.  The first and second priority was restructuring.  The third priority was a deal with Fiat.  The next priority, ahead of any others beyond the initial restructuring and Fiat deal, was their EV car program.  Here is the page from their plan (click to enlarge)

chrysler_plan

In fact, this was very clearly a business plan aimed at Obama.  Look at the #4-7 priorities and their order.  Only one potential investor in the whole world would appreciate these priorities.  Any private investor would find these priorities nuts:

4) Commitment to Energy Security and Environmental Sustainability

5) Compliance with Fuel Economy Regulations

6) Compliance with Emissions Regulations

7) Achieving a Competitive Product Mix and Cost Structure

So "achieving a competitive product mix and cost structure," arguably the problem that drove them into bankruptcy, is their dead last priority!  Welcome to government motors, where commitment to energy security is more important than having a competitive product mix or cost structure.

When Cynicism Pays Off

Those of us who accused Chrysler and GM of hyping their electric car programs merely as a honey trap to capture money from the Obama Administration were accused of being ridiculous cynics.  But...

Chrysler has disbanded a team of engineers dedicated to rushing a range of electric vehicles to showrooms and dropped ambitious sales targets for battery-powered cars set as it was sliding toward bankruptcy and seeking government aid.

The move by Fiat SpA marks a major reversal for Chrysler, which had used its electric car program as part of the case for a $12.5 billion federal aid package.

As late as August, Chrysler took $70 million in grants from the U.S. Department of Energy to develop a test fleet of 220 hybrid pickup trucks and minivans, vehicles now scrapped in the sweeping turnaround plan for Chrysler announced this week by Fiat CEO Sergio Marchionne.

I don't know if you remember, but during the GM bankrupcy deliberations, the airwaves were flooded with commercials for the Chevy Volt.  Seen one lately?  It is clear in retrospect those messages were political ads seeking subsidies, not marketing ads seeking to sell cars.

Because Minor Drug Cases Weren't Clogging the Courts Enough

The civil courts of Maricopa County (which includes Phoenix) are being overwhelmed by photo-radar cases from state photo-radar trucks on state highways.

In the 2008 fiscal year, ending June 2008, the total annual filings in the justice courts amounted to 435,014, which included DUI, traffic, misdemeanor and civil cases, according to the county. Since November 2008, speed-camera cases have flooded the justice courts, averaging 42,326 cases a month, accounting for 50 percent of the filings. Administrators for the justice courts expect the total might reach 600,000 this fiscal year.

Of course the solution proposed is not to get rid of the photo radar but to raise fees to cover the administration.  But you could have guessed that without me telling your, couldn't you?

You Can Officially Ignore All Future Administration Jobs Numbers

Because when they defend this practice, they put themselves on record that they have absolutely no integrity in the process:

About two-thirds of the 14,506 jobs claimed to be saved under one federal office, the Administration for Children and Families at Health and Human Services, actually weren't saved at all, according to a review of the latest data by The Associated Press. Instead, that figure includes more than 9,300 existing employees in hundreds of local agencies who received pay raises and benefits and whose jobs weren't saved....

But officials defended the practice of counting raises as saved jobs.

"If I give you a raise, it is going to save a portion of your job," HHS spokesman Luis Rosero said....

More than 250 other community agencies in the U.S. similarly reported saving jobs when using the money to give pay raises, to pay for training and continuing education, to extend employee work hours or to buy equipment, according to their spending reports.

Uh, right.  So does this mean that the Administration's pay Czar is destroying jobs by reducing salaries?  Seems like one would have to take this position to be consistent.  And wasn't, by the same logic, AIG actually creating jobs with the now-infamous bonuses earlier this year?

And by the way, it seems like those ACORN-like community organizers are returning the favors Obama has extended them by applying to the jobs reporting system their famously rigorous accounting standards they bring to their own finances as well as to voter registration .

Other tidbits from the article are also priceless:

President Barack Obama's economic recovery program saved 935 jobs at the Southwest Georgia Community Action Council, an impressive success story for the stimulus plan. Trouble is, only 508 people work there.

There is also another impression one gets from the article, other than seeing all the fraud, they is not highlighted by the reporter -- all of the jobs created seem to be government bureaucrat jobs or community group jobs.  Not one example of jobs actually producing something someone is willing to buy.  Except maybe for this example:

How did Kentucky shoe store owner Buddy Moore save nine jobs with just $889.60 in federal stimulus money? He didn't, and that's turning into a big headache for him.

Moore's store in Campbellsville, Ky., filed one of 156,614 reports from recipients of stimulus dollars designed to show how money from the $787 billion program is being spent, and how many jobs the funds have created or saved.

Moore's slice of the stimulus came in an $889.60 order from the Army Corps of Engineers for nine pairs of work boots for a stimulus project....

Paula Moore-Kirby...couldn't work out how to answer the question about how many jobs her father had created or saved. She couldn't leave it blank, either, she said. After several calls to a helpline for recipients she came away with the impression that she would hear back if there was a problem with her response, and have a chance to correct it. So with 15 minutes to go before the reporting deadline, she sent in her answer: nine jobs, because her father helped nine members of the Corps to work.

ACORN Relief Act

This was sent to me by a reader, something called the "Environmental Justice Small Grants Program."  Over the last 20 years, socialists who realized their message wasn't selling anymore remarketed themselves under the green "global warming" banner.  Coincidentally, all the exact same things socialists wanted 20 years ago are what we need to do to fight global warming.

It appears that ACORN may be getting a second life using this same strategy.  I can't bear to read all this leftish public policy psychobabble in the document, but did note this early on:

The primary purposes of proposed projects should be to develop an understanding of environmental and public health issues and to identify ways to address these issues at the local level, and educate and empower the community. The long-term goals of the EJSG Program are to help build the capacity of the communities with environmental justice concerns and create self-sustaining, community-based partnerships that will continue to improve local environments in the future.

There is a well-established scientific consensus that climate change will cause disproportionate impacts upon vulnerable populations. [1] Thus, the program is adding emphasis this year on addressing the disproportionate impacts of climate change in communities with environmental justice concerns. The goal is to recognize the critical role of grassroots efforts in helping shape climate change strategies to avoid, lessen, or delay the risks and impacts associated with climate change. An overarching goal of including this emphasis is to help increase the number of underrepresented communities and ensure equitable green economic development in ways that build healthy sustainable communities.

This translates to "we have found a way to hand out government money to leftish groups like ACORN to do things that are impossible to measure and thus bear little accountability by calling it all "Green."

By the way, the little footnote to prove the statement above is this:

[1]  As stated in the Technical Support Document for the Endangerment and Cause or Contribute Findings for Greenhouse Gases under Section 202(a) of the Clean Air Act (April 2009), "Within settlements experiencing climate change, certain parts of the population may be especially vulnerable; these include the poor, the elderly, those already in poor health, the disabled, those living alone, those with limited rights and power (such as recent immigrants with limited English skills), and/or indigenous populations dependent on one or a few resources. Thus, the potential impacts of climate change raise environmental justice issues."

Given that cap-and-trade is almost certainly going to impose a very large regressive tax disproportionately on the poor, I wonder why no one ever discusses environmental-solution justice issues?  Maybe it really has nothing to do with the poor, but just with power.

The Single Most Important Law That Tipped the Balance Towards Big Government

My vote:  mandatory income tax withholding.  Taxpayers never see most of the money they pay the Feds.   They don't have the shock of seeing the amount of money going to the government in one big check.  Since most formulas lead to over-withholding, people are actually eager to file their tax returns to get refunded the money that was withheld in excess of liability (e.g. interest-free loan to government).  Employers, who live in fear of violating one of a hundred thousand different labor rules, are more than willing to withhold whatever the government asks - they certainly aren't going to stand in front of the tanks to protect their employees' money.

California is taking this law to the next logical level of abuse:  Increasing the interest-free loan that citizens must give the state.  If free credit markets won't lend you money at a rate you can afford, force your citizens to lend it for free:

Starting Sunday, cash-strapped California will dig deeper into the pocketbooks of wage earners "” holding back 10% more than it already does in state income taxes just as the biggest shopping season of the year kicks into gear.

Technically, it's not a tax increase, even though it may feel like one when your next paycheck arrives. As part of a bundle of budget patches adopted in the summer, the state is taking more money now in withholding, even though workers' annual tax bills won't change.

Think of it as a forced, interest-free loan: You'll be repaid any extra withholding in April. Those who would receive a refund anyway will receive a larger one, and those who owe taxes will owe less.

I am starting to feel a sort of anti-irredentism for California.

My New #1 Reason I Hate This Recession...

...because nearly every day I get another letter from some near-bankrupt city, state, county, or other taxing authority which says basically:

"we have this vague, non-fact based hypothesis that your company owes us a lot of taxes you are not paying.  To avoid the determination that you owe us lots more money for some unproven or unspecified reason, you must send us approximately a two-inch stack of information that it will take from 8-10 hours to prepare, including..."

The most recent of these just came from the state of Michigan. There are several taxes that I don't pay because they clearly do not apply to me, but I just got a letter saying basically they will assume I owe them unless I fill out a four page form and send them a bunch of detailed financial information.

RRRRRRRRR.

Moral Hazard Continued at GMAC

From the AZ Republic:

GMAC, the former lending arm of General Motors Co., is in talks with the Treasury Department for a third injection of taxpayer aid, a further sign of the U.S. government's entrenchment in the U.S. auto industry.

The Treasury Department mandated earlier this year that GMAC Financial Services raise an additional $11.5 billion in capital after undergoing a "stress test" along with 18 other banks. While other banks deemed undercapitalized have been able to raise funds from private investors, GMAC has been forced to go back to the government.

Maybe the reason no one but Obama will give GMAC any money is that they know that every time GMAC gets any money, it simply starts shoveling it at every car buyer who walks within shouting distance of a dealership and can fog a mirror.

Immediately after GMAC became eligible for TARP money, GM reduced to zero the interest rate"¦ on certain models. ...

GMAC has begun making loans to borrowers with credit scores as low as 621, a significant relaxation of the 700 minimum score the company adopted just three months ago as it struggled to survive. America's median credit score is 723"¦

GMAC is a giant ponzi scheme to subsidize car sales.  Ponzi schemes last only so long as there is a sucker to keep putting in money.  No private funds are that dumb, but fortunately for GMAC there is the Obama administration.