Coyote Blog

I took my blog post from earlier this week and expanded it to a full-blown column on the NCAA and its efforts to never, ever let its athletes make a dime from their skills.  An excerpt:

University presidents with lucrative athletic programs will do about anything to distract attention from just how much money their Universities are making off of essentially unpaid labor.  Their favorite mantra is to claim they are holding up an ideal of “amateurism.”

The whole amateur ideal is just a tired holdover from the British aristocracy, the blue-blooded notion that a true “gentleman” did not actually work for a living but sponged off the local gentry while perfecting his golf or polo game.  These ideas permeated British universities like Oxford and Cambridge, which in turn served as the model for many US colleges.  Even the Olympics, though,  finally gave up the stupid distinction of amateur status years ago, allowing the best athletes to compete whether or not someone has ever paid them for anything.

In fact, were we to try to impose this same notion of “amateurism” in any other part of society, or even any other corner of University life, it would be considered absurd.  Do we make an amateur distinction with engineers?  Economists?  Poets?

When Brooke Shields was at Princeton, she still was able to perform in the “amateur” school shows despite the fact she had already been paid as an actress.   Engineering students are still allowed to study engineering at a University even if a private party pays them for their labor over the summer.  Students don’t get kicked out of the school glee club just because they make money at night singing in a bar.  The student council president isn’t going to be suspended by her school if she makes money over the summer at a policy think tank.

In fact, of all the activities on campus, the only one a student cannot pursue while simultaneously getting paid is athletics.  I am sure that it is just coincidence that athletics happens to be, by orders of magnitude, far more lucrative to universities than all the other student activities combined.

We have 122 backets entered in our competition this year.  Here is the pick report by game

So we now discover yet another similarity between Left and Right -- they both seem to get powerful motivation by singling out a billionaire on the opposite side of the political spectrum and then blaming all manner of conspiracies on him.  The right has had fun for years vilifying George Soros and so the Left, sad to be left out of the fun, has latched onto the Koch brothers.  The objective is to tar an individual so thoroughly that mere suggestion that he supports a particular issue  casts so much doubt on the issue that its merits do not even have to be argued.  This is a game that climate alarmists were really pioneers at devising, tarring skeptics for years at the mere hint that some organization they are related to got 0.1% of its funding from Exxon.  I know folks play this game in my comment section from time to time.

This is a game I find utterly exhausting and absolutely without merit, a black hole of intellectual productivity.  For God sakes there are 524,000 Google results for "soros-funded."  Of what possible value is this adjective?  Perhaps at its best it is a proxy for "left-leaning" but then why not just use those more descriptive words?

My new column, second in a series, is up at Forbes.  It is the second of a three-part series, and looks at incentives issues with Obamacare.  A few excerpts:

In the late 1960s, as part of the Great Society program, the US government constructed huge government housing complexes, with the goal of guaranteeing that everyone, no matter how poor, would have access to housing.  By the turn of the century, most of these complexes had succumbed to the wrecking ball  -- the era of large public housing complexes was over.

Why?  Well, there were a lot of reasons the program failed, but a big one was faulty incentives.  By getting free housing, recipients had no "skin in the game," no ownership, no financial participation in their housing.  As a result, many treated their taxpayer-funded abodes with contempt.  Why not?  They weren't paying for it.  And if the property was in good shape at the end of the lease, they didn't get any extra money.

I often compare Obamacare to the great failed public housing projects by warning folks that government health care is going to be much worse.    With the housing projects, we taxpayers paid large sums of money but only a few actually had to live in the horrible government apartments -- at least most of us were able to keep our own homes.  With Obamacare, it is going to cost us even more money, and we are all going to have to move, figuratively, into the projects.

If we are all forced to have the same, low deductible, first-dollar health plans, what incentive is one going to have to stay out of the health care system, even for something minor?

I also talk about the incentive for drug development

Look around the world today -- not one country with a government health care system pays drug reimbursement rates at a level that provides any incentive for new drug development.  In fact, almost all of the world's health care R&D is paid for by Americans.  What happens when politicians, trying to close an exploding health care spending hole in the Federal budget, do exactly what every other country in the world has done and use their power to drive drug prices down to marginal cost?

In fact, to be confident that there will continue to be health care innovation in the future at all, one has to believe that the US Government will act completely differenlty in running its government health care system than does every other government in the world, despite the fact it will have the incentives to behave identically to all of them.  Is this a bet you feel good about?

I return to an old favorite topic of mine this week, government subsidies for business relocation, in my column at Forbes.com.  An excerpt:

To see this clearer, lets take the example of Major League Baseball (MLB).  We all know that cities and states have for years been massively subsidizing new baseball stadiums for billionaire team owners.  Let’s for a minute say this never happened – that somehow, the mayors of the 50 largest cities got together in 1960 and made a no-stadium-subsidy pledge.  Would baseball still exist?  Sure!  Teams like the Giants have proven that baseball can work financially in a private park, and baseball thrived for years with private parks.  But would baseball be in the same cities?  Well, without subsidies, baseball would likely be in the largest cities, like New York and LA and Chicago, which is exactly where they are now.  The odd city here or there might be different, e.g. Tampa Bay might never have gotten a team, but that might in retrospect have been a good thing.

The net effect in baseball is the same as it is in every other industry:  Relocation subsidies, when everyone is playing the game, do nothing to substantially affect the location of jobs and businesses, but rather just transfer taxpayer money to business owners and workers.

Via the AZ Republic

10 of the 25 most lucrative stimulus-funded contracts for work inside the state were awarded by the U.S. Environmental Protection Agency to one Alaskan company.

Bristol Environmental Remediation Services LLC, based in Anchorage, was not required to bid for the work, which is valued at more than $140 million and involves ground-pollution monitoring and cleanup at 10 Arizona sites, including San Carlos, Parker, Tuba City and Window Rock

Who wants to bet this company has had friends named Stevens and Murkowski?  What is it about Alaska?

As an added bonus, to my frequent point that regulation in general and our new emerging corporate state in general tend to favor large companies over small:

Tom Mertz is Tempe-based Sundt Construction Inc.'s federal division vice president, a position that has few counterparts among Sundt's smaller competitors.

Contracts funded by the federal government tend to favor larger companies such as Sundt, Mertz said, because there are additional steps involved in completing such a project, many of them involving protocol and paperwork.

"Federal-government work certainly is not for everyone," he said.

Sundt has landed both state and federal economic-stimulus projects, including one of Arizona's biggest, a $24.6 million contract to build federal-courthouse facilities in Yuma....

Mark Stapp, director of ASU's Master of Real Estate Development program and a longtime developer in the Valley, said that the problems smaller contractors encounter most often on public projects have little to do with the work itself.

"It's the administration of the work that kills them," he said.

As a result, many small and midsize contractors have avoided government-sponsored work, which adds to their current disadvantage now that the public sector is hosting the only game in town.

One of the perils of being a small school is that sports requires a lot of travel.   In Arizona (unlike Texas where I grew up) the private schools do not have their own prep league for athletics, but play with the public schools based on their size (e.g. 1A to 5A).  Ours is a 1A school that generally plays 2A because we get more teams to play that way.  In soccer we play 3A, which can be a tough road when a school that has barely 120 boys in the high school play schools with 900+ kids.  But we made it to the state finals last year, so we hold our own.

Anyway, last week we actually played a school within the boundaries of Grand Canyon National Park, just a stones throw from the south rim visitors center and the El Tovar lodge.   That was awesome - nothing like post-game parent cocktails on a deck looking at the sunset over the rim of the canyon.  (I am on the road but will post a few photos next week).

The Grand Canyon is spectacular, but there is something about looking down into it that reduces its beauty.  You only really see its real drama hiking down into it (e.g. the Bright Angel or the harder but more beautiful Kaibab trail from the South Rim).  If you want to talk about really spectacular scenery, I think Sedona beats the Grand Canyon, at least from the rim.

This week my son's team played a small school in Sedona, a pretty old boarding school called Verde Valley HS.  Its got an IB program and a lot of horses and a drop-dead location, and has been getting some popularity in this area and in SoCal.  Anyway, I have seen some nice kids fields, but this one was pretty spectacular.  Unfortunately I only had my crappy cell phone camera but here is a sample:

Just when I was climbing on top of any number of issues at work, and was ready to start blogging again in earnest, Civ 5 was released yesterday.  Yes, it has all the time destruction potential of its older versions.  Some quick thoughts from a few hours of play

• Beautiful interface.
• The things that were removed (ie religions) are not missed
• The only thing I don't like about the interface is that the new way of showing armies makes it harder to distinguish what type of troops they are.
• Love the new combat system and the elimination of absurd stacks.  The new city defense system is a nice add as well.
• More barbarians on the loose in the early game, but if they attack you no combat units (workers, settlers) they drag them back to their encampment and you can go and free the hostages
• Early game very different -- not a headlong race to settle open space.  Early game city states change the early dynamics, for the better I think.
• I like not having to build transports to send armies overseas.  This certainly will make oceans a less formidable barrier to conquest, which I think is good.
• Can't comment yet about balance or unbalanced strategies, not far enough along, but am very happy so far.

Read this story, and then imagine if the facts had been reversed:

"A sports conference that always scheduled weekday basketball doubleheaders in which women's teams played the first game -- letting the men play in the later time slot -- has altered the practice, after an anonymous sex discrimination complaint charged that this made the women's games appear to be a "warm-up" act for the men's games.

Now, hoping to avoid possible gender equity suits, other athletic conferences are considering similar scheduling changes.  Last month, the Great Lakes Intercollegiate Athletics Conference announced that it would alternate from season to season the order in which men's and women's teams would play in doubleheaders. The men will play first this season, and the women will play first next season.

Dell Robinson, the conference commissioner, said the decision was made after the league received an inquiry in March from the U.S. Department of Education's Office for Civil Rights. An anonymous complaint filed with the agency argued that the negative connotation conveyed by always having women's teams play first in these doubleheaders was detrimental to women's athletics."

So let's imagine a alternate world where women's basketball games had always traditionally been played in the second game of the double-header, after men's games.  Does anyone believe that the civil rights folks wouldn't have filed a complaint saying

Having women's games always played after men's games makes them appear to be an after-thought to the main contest, positioning the game later in the prime social hours where potential student fans will be more likely to leave early and head to the bar instead of staying to watch.  The negative connotation conveyed by always having women't teams play last in these doubleheaders is detrimental to women's athletics.

See, its easy to be a race/gender advocate.

Megan McArdle writes:

There was a great deal of back-and-forth in the left half of the blogosphere this weekend over employers who use FICO scores as a way of weeding out job candidates.  In a sort of peculiarly American fashion, our nation seems to have decided that one's credit history is a good proxy for one's worth as a human being, and thus should be used to determine eligibility for everything from employment to excellent rates on car insurance.

I have no trouble believing that the FICO score is often a proxy for what some researchers call conscientiousness; I've certainly had roommates and others around me who had terrible credit because, well, they didn't bother to pay their bills, and regarded rent as something optional that could be turned in if no more exciting commercial opportunities immediately presented themselves.

That said, it's going to be at best a weak proxy.  It's also a proxy for things that, as a society, we may not want employers to consider, like a past history of depression.  And for things that have nothing to do with your job performance, like a car accident that left you with huge medical bills and no job, or a sudden job loss.  Looking at our national savings rate, lots and lots of Americans live very close to the edge of their paychecks; they can't all be terrible employees.

I have never really even considered asking employees for their FICO score, in part because all small business people hate these scores as, even with perfect credit records, our scores tend to be smaller than people with similar income and history due to the constant credit checks made on us by vendors and other partners.

That being said, as someone who has 500 service employees working for me, I understand the insatiable desire for information on employee reliability and conscientiousness.  A large number of our employees we hire who interview well tend to get released within 60 days of their hire.  I can't tell you how many people who seem totally normal and friendly turn out to be raving maniacs in stressful customer contact situations.

The elephant in the room that neither McArdle or folks like Kevin Drum mention is that businesses are starved for reliability information on potential employees.  It used to be the best source was to check job references.  Nowadays, though, very few employers will give a honest job reference, or will provide any information at all.  I know I am guilty of that -- my company does not allow any manager to give out performance data on past employees.  I only needed to be sued once over somehow interfering with someone's living by giving honest information about that employee's reliability to change my behavior.

I understand that this is exactly what the Left is shooting for - an environment where the competent have no advantage over the incompetent.  If employers are resorting to FICO scores, it just demonstrates how all the other reasonable avenues of obtaining information have been closed to them.

The only saving grace in this country is that employment is still mostly at-will, meaning we can fire our hiring mistakes and move on.  Of course the Left wants a European-style system where it is impossible to fire anyone too -- this is the system the post office has, and one can see how well it works out.  If they are victorious on this final front, I will be forced into a game of Russian Roulette, where I can't find out anything about those I hire, I can't fire the incompetent people I do hire, and I am infinitely legally liable for any mistakes any of these employees make.

As someone who once spent nearly a hundred hours to defeat a $20 Department of Labor claim, mainly to fight the precedent, I can sympathize 100% with Wal-Mart spending millions to fight a $7,000 OSHA claim.  Note that despite all the OSHA wailing about not understanding why Wal-Mart is fighting so hard and causing them so much trouble, they admit at the end that they are trying to set a precedent for future actions.

For several years I worked for Emerson Electric, which among its many divisions owned a ladder manufacturer.  If there ever was a product that simply is what it is, totally WYSIWYG, it's a ladder.  But it turns out in this age of personal responsibility that anyone who ever gets hurt using a ladder, usually doing something stupid, will sue the ladder manufacturer for his or her injury.  Emerson fought every one, all the way to trial and sometimes appeal.  Lawyers said they were crazy, that in any given case, it would be cheaper (considering legal fees) to just settle.  But Chuck Knight (Emerson CEO) knew that these were not individual cases, they were multiple events in an ongoing "game," and game theory gives a different answer.  Fight enough of these, and tort lawyers looking for a quick buck with little work and cost will choose to spend their time elsewhere.

If you have worked in a large corporation, you probably have witnessed some end of quarter or end of year sales push, to buff up the current period's results.  People who buy cars often get the advice to buy at the end of the month or year to take advantage of this motivation.  A great example of this was in the book Barbarians at the Gate, where RJR would load the channel at the end of each quarter with tons of extra inventory to buff up quarterly profits.  Of course, this just creates the incentive next year to load the channel even more to top the previous quarter's profits that were pumped up by loading.

All of this is both rational and irrational.  From a shareholder standpoint it is irrational -- the end of the reporting period is arbitrary and all the company is doing is shifting some sales a few days, rather than generating new ones.  It can even be negative for shareholders, as in the RJR case when loading caused inventory to sit on shelves for longer and get stale and thereby less appealing to customers.   For employees of the company, this can be entirely rational depending on their incentives.  While pulling sales forward to get a better grade or commission for this quarter feels good now, it can make the next quarter harder.  But who knows what will happen in the next quarter?  In a high turnover world, I could be in a new job or new company next quarter.  Anyone who has worked with corporate incentive programs knows that it is impossible to eliminate all the unintended consequences -- all one can do is minimize them.

But supporters of government superiority to private enterprise argue that this is exactly why government is superior, because it does not have these short-term focused goals.  HAH!

Politicians are among the worst at this.  It used to be they would do short term things to get elected, leaving the following election to take care of itself.  Now, they will take short term actions just to dominate the current news cycle.  Next week? That's an eternity, we have problems now.  Every single action taken over the last two years by both this and the previous administration and the current one relative to the economy have been totally short-term focused.  Let's bail everyone out.  Moral hazard?  That's the next administration's problem.  Just look at cash for clunkers, where the government paid $4000 for cars that blue-booked for $1500 all to pull September sales into August.  But they won the news cycle in August!

But the actual reason for my rant is a note I got from the Arizona Department of Revenue.  Apparently they have a program where large filers have to do a special report to pre-pay June sales tax** collections by June 29  (rather than by July 20 when they would usually be due).  As is so often the case, the law has been changed such that a special requirement for large filers had its threshold changed such that small-medium filers like myself also now have to play.  This is a sort of 13th report one must file (we file reports monthly) and the processing of it takes a lot of private time, plus the state has to hire a number of temps and pay overtime to receive this filing.

So why the special requirement?  Well, Arizona is on a July-June fiscal year, so June 29 is just about the end of their fiscal year.  And they are on a cash accounting basis (like most governments) so any cash that comes in the door, even if it is for a pre-payment of a future liability, counts as current period income.  This means that the state is spending a lot of overtime money shifting income by 21 days just to make its current period look better -- just like RJR or any other dynsfunctional private company.

But what makes this even more short term is that it only works once -- the first time.  It will make the first year this trick is applied look better, but then every year after will go back to being the same, with July losses to the prior year offset by June gains from the forthcoming year.  In fact the only way this game can work twice is if the threshold for pre-paying is lowered -- which is why I am having to fill out an extra form and pay a large bill 3 weeks in advance.  Arizona is looking for another one time gain.  And the larger the gain, the harder it will be to unwind this stupid costly process in the future.

** Footnote:  Actually we don't have a sales tax but a "transaction privilege tax."  However, that term gets me so infuriated, as it is based on the premise that private commercial transactions can be made only as a privilege granted by the government, that I refuse to use the term.  Right from the AZ DOR web site:  "the tax is on the privilege of doing business in Arizona."  Barf.  Don't let anyone tell you Arizona is a wild, libertarian, free market state.

Pursued two guilty pleasures this weekend:

1. Saw Kick Ass, despite Roger Ebert's plea that I should not.  Enjoyed it, though maybe it has been a bit over-hyped.  Mindy was the greatest -- in the credits my son checked out the actresses name.  He said he needed to know so he could marry her some day.
2. Played Just Cause 2.  A bit like Grand Theft Auto, but I never really liked the GTA franchise but enjoy this game.  Basically it is about blowing things up and killing people in a faraway land to create Chaos.  Very open-ended, with some nice travel dynamics, particularly with the grapple and parachute.

In the past, local governments and the legislature have blithely hit up taxpayers to pay for new sports stadiums for local teams.  You may think you have it bad in your city with 4 major sports teams, but we have 4 major sports teams PLUS about seven or eight baseball spring training stadiums.

It seems like the legislature and local government finally got tired of putting all taxpayers on the hook for these stadiums, and had the radical idea that maybe actual, you know, fans who want to use the stadiums should pay for them.  This turned out to be too expensive for ticket prices at the proposed new Cubs spring training facility -- fans aren't used to paying for the full price of their sporting event in their ticket price -- they are used to getting subsidized by non-sports fans.  As a compromise, the legislature proposed a tax on tickets for all spring training games at all stadiums to pay for this one new field.  This seems stupid to me, but it elicited this hilarious response from the baseball commissioner:

Selig told reporters at HoHoKam Park that it was a "dangerous precedent" to tax all ticket buyers primarily to benefit one team and that Major League Baseball has taken over negotiations for a new Cubs spring home.

Right, but it is A-OK if all taxpayers, including those who will never see a baseball game, are taxed to pay for the new stadium.

From Ed Morrissey:

Chicago Breaking News reported late last night that former Chicago schools chief and current Secretary of Education Arne Duncan manipulated a system to favor powerful political allies by placing their children in the schools of their choice.  The discovery of a  list, the existence of which had been long denied by the city, and its composition of mainly high-powered political figures calls into question the appeals system used to reconsider applications that had been denied by the top Chicago-area schools:

This is going to be even more fun when this game is applied to jumping the hospital waiting list.

From the new bill signed by Obama today:

Under the new law, businesses that hire anyone unemployed for at least 60 days would be exempt from paying the 6.2 percent Social Security payroll tax through December. Employers also would get an additional $1,000 credit if new workers remain on the job a full year.

This is absurdly game-able.  How do I know?  Because as I read this here (I have not read the legislation) this is a ridiculous windfall for our company.  As a seasonal business, my current payroll is about 40 people.  Over the next two months, I will hire nearly 400 workers for the summer, most of whom have not been working over the winter as they are retired and just work a few months of the year.  Am I really not going to have to pay Social Security taxes on all these people?

And how is anyone going to administer this?  Are my payroll company and I going to have to figure out the employment status of all of our hires for the last 60 days to figure out what taxes to collect?  Does anyone in Congress even think about this stuff when they pass this garbage?

Update: ADP has more

Update #2: Here is my prediction, if they forgot about seasonal hiring  (again, I have not read the letter of the law yet).  This will be like the cash for clunkers program - in a month or two they will announce that they have used up the money they had allocated for the whole year.

In 2003, my company was in some serious financial problems.  Post 9/11 commercial insurance premiums had just risen substantially, so much so that my premiums went up more than my total annual profits.  At the same time I found out that a number of operations I had just acquired were profitable only because they were not in compliance with labor law, and my crash program to bring them into compliance was going to put me deeply in the red for that year.

I did a whole bunch of things to right the ship, but the two most important were 1)  I eliminated a whole layer of management, slashing 5 vice-presidents and having all the front line managers report directly to me; and 2)  I eliminated the smallest and worst performing business units.

Now, contrast this to what governments do in the same situation.  Their first response, of course, is to do something I could not do - compel more revenue for themselves by increasing taxes.  Those of us who make our living by the free decision making of others don't have this dictatorial option.

The second thing that governments do is cut their MOST important, MOST valuable operations.  In Seattle, it was always fire and ambulance services that would be cut.  Because the whole game was to find the cuts that would most upset the public to try to avoid the necessity of having to make cuts at all.  Its an incredibly disingenuous process.  Any staffer of a private company that made cost savings prioritization decisions like government officials would be fired in about 2 minutes.

The third thing that governments do if forced to actually, really cut costs (meaning that every other stalling tactic, taxation method, and accounting trick has been exhausted) is to cut field staff who actually do the work rather than high-paid, bloated administrative staffs.  This means teachers get cut but not vice-principals.  And it means that preventative maintenance gets cut and not transit staffers:

Having removed a mere 25 employees so far, and having just suffered its deadliest year ever, Metro officials now want to raid $10 million from the agency's preventive maintenance fund in order to cover operating expenses, including salaries and benefits. Metro managers would rather skimp on passenger safety and reliability than clear out the system's deadwood and force serious concessions by the transit union.

Moreover, even as it asks riders to sacrifice, Metro is fattening itself up, hiring two new "senior planners," one to a newly created position. According to Metro's official job description, they will be "responsible for participation in the development of an annual business plan ... identifying opportunities for future growth and development" and "defining future strategies."

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.

This was simply amazing to me.  For years, I and others have said that putting more health care spending under insurance plans was going exactly the wrong direction, both from an individual choice as well as a system cost perspective.  By eliminating the need or incentive to shop by the consumer of services, prices almost inevitably rise.

Here is a fabulous smoking gun example from my windshield repair today.  I happen to have free windshield replacement in my insurance policy.   I called the insurance company and said I had an auto glass claim.  I was transferred to Safelite Auto Glass, who apparently (very intelligently) have a contract to process claims for my insurance company.  They said I could use any provider, but would I like them to call out someone for me -- if I used their choice, the insurance company would guarantee the work.

Well, what did I care -- I wasn't paying for it -- so I had them make an appointment for me.  Unsurprisingly, it was with Safelite Auto Glass.

I must add here that Safelite did an exceptional job, the guy who showed up at my workplace was friendly and competent.  No complaints at all about the service or workmanship.

Anyway, I got a bill for which I owed zero dollars, which I suppose is heading right this minute for the insurance company.  Before I show it to you, I was curious what I would have paid for this service if it hadn't been insured and I shopped around.  I got just one quote - from the Safelite Auto Glass web site.   This is a bit unrealistic because for a purchase this large, I would have gotten several quotes.  But this was the only quote I needed.  The charge to me if I bought the new glass service with my own money without insurance was$321.05  (click to enlarge).

And this was the bill I signed for the insurance company:

For a total of $710.40.  Same service.  Same car.  Same customer.  Same part.  Probably the same repair guy.  2.2x higher price.

Now, I suppose I might be willing to believe there is some invoice pricing game here and the insurance company may get a discount over invoice, similar to car sales, though I am not sure what their incentive would be for this game -- it should be the opposite.  In fact, we can be nearly positive they are marking up the price to insurance companies given a) the web quote says right up front it is not good for insurance work and b) I have already shown how glass companies give enormous consumer kickbacks for insurance work.

If I had cared, I would have eschewed the offer on the call to have them set up the appointment and shopped around for the best kickback.  All a cross subsidy from those who don't use the insurance to those who do use the insurance.  Talk about a terrible incentive.

I think the conclusion is pretty strong.  Anything we shift to insurance from having individuals pay out of pocket gets substantially more expensive.  And this doesn't even address my changing willingness to live with a small windshield crack and avoid this purchase altogether when I am paying the bills vs. when I am not.

Rivera has 88 appearances in the post-season with only one blown save.  When he walks to the mound in the World Series, it is usually (in the immortal words of Bill Paxton) "game over man, game over."  But his one blown save is remembered in Phoenix, since it coincided with what is easily the greatest moment in Arizona pro sports history.

When reading the original House health care bill, it struck me that the new taxes on employers and such began immediately, but benefits were phased in between 2012 and 2017.  Apparently, this same thing is being done in the Baucus Bill, and I have learned that this is specifically aimed at gaming the CBO numbers.  Since journalism majors were such in large part because they didn't want to do any math, this ploy will likely work with the media, who will print the CBO findings but will be uninterested or incapable of deconstructing the numbers games.  From the Gormogons via TJIC:

What the CBO does not highlight, however, is that Sen. Baucus cooked the books. Under the Baucus plan, revenue enhancement (taxes) goes into effect immediately. Coverage does not kick in for two and one-half years. So, to make the numbers work, Sen. Baucus has to collect ten years of revenue to cover seven and one-half years of cost.

'Puter thought the whole thing smelled a little fishy, so he gave Sleestak and abacus, a quill and some parchment and set him on the CBO math. Using the above numbers, Sleestak calculates that projected revenues will generate $910 billion over 10 years. Outflows will be $829 billion over 7.5 years. Based on Sleestak's math, that's an average yearly inflow of $91 billion and an average yearly outflow of $110.5 billion, or a average annual deficit of $19.5 billion each year the benefits are actually paid.

TJIC rightly asks how this kind of game is any different from the one played by Madoff.  The only difference is that folks had the right to say "no" to Madoff whereas we will not have this ability with Congress.

Evan Bayh pretty much gives away the game.  We rob from the unpopular and give to the popular.

You can sort of see this coming. The savings from the pharmaceutical companies and the insurance industry, you can kind of count on that because they're not very popular.

The hospitals are a different story.  People, you know, like their hospitals; they tend to trust their hospitals. The hospitals have pledged big savings. I can easily forecast at some point in the not-too-distant future the hospitals coming in and saying, "You know what, this isn't working exactly the way we expected. Please spare us from this," and them getting a good hearing in [Congress].

Phoenix police pump six rounds into the back of an innocent Phoenix homeowner who was still on the phone with 911 calling for their help with an intruder.

The scary part is how absolutely natural and well-polished the police's actions are in initiating a cover-up.  They may be screw-ups in the use of force, but they seem well-practiced in protecting their own from accountability.  Only the lucky break of having the 911 call still in progress and being recorded in the room the police were planning the cover-up prevented it from working.  Without this evidence, one wonders if the victim (who lived, incredibly) would have found himself accused of some heinous crime to take scrutiny away from the police.  "Oh, what's this here -- looks like a bag of white powder..."

One priceless detail is that the officer said he fired without seeing any gun in part because he thought he saw a Hispanic guy.  Wow -- if he loses his job with the Phoenix police (doubtful) I am sure Sheriff Joe would be thrilled to hire him.

We see this all the time nowadays - police roll without a thought into cover-up mode, and only the accident of video or audio recording prevents the cover up from working.  One wonders how many times they get away with this game when there is no electronic scrutiny.  Which is, I suppose, why police have invented a non-existent law that it is illegal to record their actions in public.  I am all for lojacking all of them with permanent electronic recorders.  (via Radley Balko, who has a roundup of a lot of similarly scary stories).

Postscript: The innocent homeowner (Tony) survived despite this treatment by police of his bullet-riddled body:

Officers ... painfully dragged Tony by his injured leg, through the home and out to his backyard patio, where they left him bloodied and shot right in front of [his family]."

The Arambulas say the officers later dragged Anthony onto gravel, then put him on top of the hot hood of a squad car, and "drove the squad car down the street with Tony lying on top, writhing in pain."

For the betting man, here is the lock of the week:  Obama, in his Wednesday speech, will outline a plan that does one thing but describe it as something nearly opposite.  This is a common political game, so it always is a good bet with any politician, but Obama has sharpened this approach into an art form.

The more interesting bet, which is probably more like 50/50, is whether Obama will

1. Offer only incremental changes, to make sure he gets something passed he can call health care reform, but will describe it to the radical end of his base as sweeping change, -OR-
2. Offer nearly the exact same core plan that is in the House bill that has so many folks concerned, but via changes in wording and euphemisms describe it to a worried public as something much more moderate.

I am honestly torn as to which it will be.  How are y'all betting?

Congress now understands that the majority of the public has deep concerns about their government health care bill.  So, they are responding by ... finding new and creative legislative approaches to a) avoid public scrutiny of what they are actually putting into the bill and b) reduce the number of votes they need for passage.  Kevin Drum explains the game:

The latest trial balloon from the Democratic leadership is that they might split healthcare reform into two bills.  The first would have all the controversial provisions and would go through the reconciliation process, where it needs only 50 votes.  The second would go through the normal process and therefore need 60 votes, but since it includes the stuff that's widely popular it would pass anyway.

I told you weeks ago they were going to pass this pig no matter what it took.  So now the only real floor vote will be on percieved benefits (more coverage, more spending, consumer mandates) while the costs, taxes, and individual restrictions will get done in the back room, where blue dogs can disavow any responsibility.

If this becomes unstoppable, I think the Republicans should make a high profile effort to move the implementation date up from 2013 to well before the next presidential election.   You can always tell whether legislators know in their hearts if something they are passing is really going to suck for a lot of people.  They push the implementation date back  (despite the fierce moral urgency to hurry up on this, as we are told) to after the next election.