Posts tagged ‘Italy’

Good News, I Hope

I have to take this with a grain of salt, because it is coming from GE, the current American poster-child for rent-seeking, particularly in attempting to be a magnet for green energy subsidies.   But since the statement can be seen as under-cutting the subsidy argument, I have to take it more seriously:

Solar power may be cheaper than electricity generated by fossil fuels and nuclear reactors within three to five years because of innovations, said Mark M. Little, the global research director for General Electric Co.

“If we can get solar at 15 cents a kilowatt-hour or lower, which I’m hopeful that we will do, you’re going to have a lot of people that are going to want to have solar at home,” Little said yesterday in an interview in Bloomberg’s Washington office.

....GE, based in Fairfield, Connecticut, announced in April that it had boosted the efficiency of thin-film solar panels to a record 12.8 percent....The cost of solar cells, the main component in standard panels, has fallen 21 percent so far this year, and the cost of solar power is now about the same as the rate utilities charge for conventional power in the sunniest parts of California, Italy and Turkey.

I am all for that.  I have always had faith that solar would make sense someday, and that we would be ranking out cheap solar conversion surfaces like carpet out of Dalton, Georgia, but every time I have priced it to date on my house, even with huge government subsidies, it has not made sense.    In Europe, it requires 50-60 cent feed in tariffs (basically a subsidy in the form of above-market electricity prices paid by the utility for solar-sourced electricity) to get solar capacity installed, so 15-cents would be great and is approaching the cost of electricity in some high cost areas.

Here in Phoenix, FirstSolar does a ton of thin film.  I have always had mixed feelings about FirstSolar.  On the one hand, they live off subsidies and would basically not be in business if it were not for huge European subsidies of various forms.  On the other, though, they have been one of the few solar companies that actively have talked for years of a development path to a cost position that does not require subsidies.

You Thought I Was Joking About Dictator Retirement Island

Via the Guardian

Efforts appear to be under way to offer Muammar Gaddafi a way of escape from Libya, with Italy saying it was trying to organise an African haven for him, and the US signalling it would not try to stop the dictator from fleeing....

A senior American official signalled that a solution in which Gaddafi flees to a country beyond the reach of the international criminal court (ICC), which is investigating war crimes charges against him, would be acceptable to Washington, pointing out that Barack Obama had repeatedly called on Gaddafi to leave.

Seen and Unseen

Every time you see a politician claiming he created jobs with some expenditure of taxpayer money, you have to ask yourself, what would private investors have done with that money had it not been taken away from them?  Via John Stossel

In a new article, "The Myth of Green Energy Jobs: The European Experience", the environmental scientist and a resident scholar at the American Enterprise Institute writes,

"Green programs in Spain destroyed 2.2 jobs for every green job created, while the capital needed for one green job in Italy could create almost five jobs in the general economy."

Italian Rail

After having my car hit 3 times in one week driving in Italy, I swore this time I would do it without the car.  So I tried rail.  I had almost as much trouble with rail as with driving.

First, never, ever, ever buy a Eurail pass for Italy.  It is way too expensive compared to the train fares.  Its a good deal in Switzerland, so I bought one for Italy before doing the research.  It became a running joke in Italy - every single Italian rail employee we had to show the pass to told us we should not have bought it.  So not only did I pay too much, but I got reminded of it twice a day.

Second, all but the smallest and shabbiest trains require advanced reservations, but these reservations are nearly impossible to make if you are not Italian, because the rail site has some kind of weird block on most all American credit cards (much about this around the Internet).  This means that I can't just have get-on-the train and go flexibility, I have to pick a train I want to use in the future and then stand in line at a rail station to purchase the ticket or reservation.    Lines do not move fast in Italian rail stations.

But the classic story comes from my minor infraction of rail policy that ended up costing me money.  I don't know if this is just government or if it they have a lot of problem with cheating.  Apparently, each day you are supposed to fill that days date in the next slot on your Eurail pass before you get on the train.  I forgot to on one trip, so the conductor insisted I owed a 50 euro fine.  Seriously.  I said, let me add the date right now, but she said no.  They had a couple guys lined up to throw us off in the next random Italian town if we did not hand over the money  (reminds me of this story in England).

I will say, once I calmed down, that in retrospect the lecture from the Italian state employee on why it is important to follow every single rule and to trust our betters in government that all the rules are for a good reason was almost worth the 50-euro price of admission.

It took me a while to figure out what they were afraid of -- I suppose if you did not write the date in advance, and the conductor never came by, you could get an extra day of travel.  Of course, I had paid extra money for a reservation on that particular train, so it was unlikely I was gaming the system (another reason not to get a Eurail pass in Italy, you still have to pay extra for nearly every train).  And it seemed odd that on a 2-hour train ride they thought it a real risk no conductor would come by, though on the very next day we took a 2-hour ride and there was no conductor, so I suppose it is possible.

In that latter case we were in a car where the AC failed on a hot day, and of course it was the only train we rode on the whole trip where the windows did not open.  No conductor took my ticket, but one did stand at the end of the car the whole trip turning away anyone who wanted to get an open seat in the next car -- after all, we were assigned a specific seat and sitting in another would be against the rules.

Our Arizona Governor is Truly Lame

Governor Jan Brewer of Arizona has been insisting for MONTHS that immigrants have been beheading people in the desert.  I wrote about it here,  shande doubled down on the claim in way back in June.   She repeated the claim on a televised debate the other day, and got all the national attention on this idiotic claim that she deserves.  She has reiterated this close-to-outright-racist-paranoid-fantasy any number of times through the whole summer.  So it is grossly disingenuous for her suddenly to act like it was a one-time mis-statement:

Gov. Jan Brewer rose to national fame defending the state's immigration law and warning of rising violence along the U.S.-Mexico border, including a claim that headless bodies were turning up in the Arizona desert.

But the claim has come back to haunt her after her stammering debate performance in which she failed to back it up and ignored repeated questions on the issue from a scrum of reporters.

Brewer has spent the time since backtracking and trying to repair the damage done from her cringe-worthy debate against underdog challenger Terry Goddard.

"That was an error, if I said that," the Republican told the Associated Press on Friday. "I misspoke, but you know, let me be clear, I am concerned about the border region because it continues to be reported in Mexico that there's a lot of violence going on and we don't want that going into Arizona."

That is as craven and mendacious a response as I have ever heard from a politician, and that is saying a lot (it had to be, to bet me worked up enough to blog from a seaside resort in Italy).

More Italy

After several more days and locations (Florence, Cinqueterre via Portovenere) I am left with one question:  Why is it that even supposedly elegant European hotels charging many hundreds of Euros a night for a room are oblivious to the quality of their beds?  I am getting tired of paying tons of cash for rooms with bed linens whose quality is measured in "grit" rather than "threadcount."  The beds are uncomfortable and the pillows are awful.   The blankets are sick polyester jokes that Motel 6 would be embarrassed to offer.  For the price of just one night's room rent I could go to IKEA and outfit the rooms better.  It's not like I am some spoiled princess-and-the-pea sleeper -- I stay in a lot of cheap hotels and I tent camp, for god sakes.  My camping equipment is more comfortable than these beds.  I routinely stay in $70 hotels in the US and never get beds or linens this bad.  Do they not care, or is this what Europeans all sleep on at home?

OK, rant over.  Florence was as great as it always is.  There is way too much stuff to do there ever to get bored, all within just a few minutes walking.   Unlike past visits, we entirely skipped the Uffizi and hit a lot of historic buildings we had missed before (e.g. Medici Palace).  I enjoyed it but if you are on your first visit, the Uffizi is a must.  Also saw a bit of above-average engineering, like this:

Seriously, I wonder if I could have -- without a)  any kind of materials strength data base; b) no structural steel or modern concrete; c) no CAD facility -- designed and built such a thing in the 1400s, even with the Pantheon as a go-by to copy.  Really remarkable.

In Florence, there is a famous bridge called the Ponte Vecchio which is actually covered in buildings:

You can't tell from this picture, but the bridge (open only to pedestrian traffic) is lined with at least 40 jewelry stores.  Seriously, each storefront has bout 6 feet of space, and every one had a window with zillions of gold trinkets.  It got me thinking about the paradox of choice.  It's not hard to buy into the economic theory that too much choice may inhibit purchase while walking along this bridge, though I am told most of these folks do very well (I have never bought into the paradox of choice as social theory -- the one that says people would be happier with fewer choices.  If this were true, we would all be emigrating to North Korea).

Speaking of pedestrian streets, one important takeaway from Italy has been that one should never assume a road is too narrow, even if it is no wider than your pantry door, for a vehicle to come racing through any second.  The other day I was in a really narrow alley I thought was foot-traffic-only when a bus(!) came screaming down the lane like a piston through a cylinder.  Only a well-located doorway got me out of the way, and even then the bus's mirror clipped my arm.

The last few days we have been staying at the port town of Portovenere on the Italian Riviera.

The town itself is attractive with a fair amount to explore for its size.  I experimented some with night photography from my room

I have some other exposures that I want to try with HDR software to try to bring out a bit more of the buildings.   The town was kind of fun on a Saturday night -- in addition to a couple of rowdy weddings, there were also a lot of BIG boats that came in for dinner in the evening.  Very nice (except for my bed).

Portovenere is a convenient gateway to the Cinqueterre, five absurdly picturesque downs laid down in about 1100 AD by Walt Disney to attract American tourists.  You may have not heard their names, but you have likely seen one or all of them the last time you were at an art fair in one of the photo exhibits -- here is one example (though they had the patience to wait for a time of day where the lighting was better, presumably in the early morning).

More than the towns, I enjoyed the walking trail in between, which is an attraction in and of itself.  It winds through wilderness and vineyards along the coast.  All through the vineyards I kept seeing what looked like a guide rail for some sort of gear-driven device.  The rail wound up and down the hills and through the vineyards.  I had assumed that it was some sort of irrigation system where the sprinkler moved along the rail (though I could not figure out how the water supply would work).  Then I found this absolutely awesome piece of steampunk-style tech:

It is hard to tell, but its a little one-person monorail that rides on the rail and pulls a couple of carts behind the "engine."  This is why I could not find any roads or really many trails in the vineyards -- they use these cool things to move about, do maintenance, and bring in the crop presumably.  And the rail does not run on the ground, but 4-5 feet in the air, so one can see over all the vines and brush.  Totally awesome.  And not a seatbelt to be found on it, which made me love it all the more.   I loved it so much, here is another shot head-on (sorry it is overexposed, I don't have the energy to edit it right now).

Thoughts on Milan

I don't promise posts every day or even any other day of the trip, but since I have a quiet moment, and my wife is writing in her diary, I thought I would post a few thoughts.

  • Milan is way underrated as a tourist spot, at least for a day or two.  It has the reputation of being a cold industrial town, and much of it may be that way, but the center of the city is quite nice to visit.  It was a legitimate rival to Florence and Venice in the Italian Renaissance.  Lots of good shopping, some good tourist sites, and the streets, particularly at night, are great to walk around.  The weather is wonderful, which helps.
  • Single impression I will hold from Milan:  Very attractive women dressed to the nines in chic outfits wearing 5-inch heels -- all while riding a bicycle.  They are all over the place.  And as for the overall rating for the lady-watching, I don't think any spot will surpass Buenos Aires in my book (with Beverly Hills probably as a #2) but Milan very much held its own in that department.
  • Stayed at the Park Hyatt on points (thank God because it is really expensive).  This is one great hotel, in a fabulous location with the best service I have ever received.
  • If you are coming to Milan, fly into Linate rather than Malpensa if you can -- the difference in time to the center of town is about an hour.
  • Milan is a great place to start your trip in norther Italy.  One can fly here from about any where in the world and they have fast, cheap trains that go everywhere in Italy.
  • Speaking of trains, don't ever, ever buy a Eurail pass for Italy.  I bought one out of habit (the Swiss pass is awesome) and because last time I drove in Italy my car was hit 3 times in 1 week.  But train travel in Italy is so cheap that the pass is not worth it, and almost every good train requires a reservation (and reservation fee) which defeats the "just walk on the train" advantage of the pass.  Also, as an American, the Trenitalia web site is endlessly frustrating, and won't accept most American credit cards, so the only way you can reserve a train in advance (which you must do) is to trudge to a travel agency or train station in Italy.  You can do it from a few US web sites but they add on huge fees.
  • The Cathedral (Duomo) in Milan was right next to our hotel and is the 3rd or 4th largest in Europe.  I found it kind of unexceptional, except for its size (and perhaps the beautifully sculpted front doors).  The interior highlight is probably the large stained glass windows (OK and the body of the saint lying in a room whose design looks like it was pulled right out of the haunted mansion ride at Disneyworld was interesting too).  However, there is one other thing unique about the Duomo that was fun -- you can go up and walk on the roof.  Not just go up in a tower, but walk all over the roof and in between the flying buttresses.  Great view and enjoyable

  • The Sforza Castle, for all its history, is about the bleakest and most overtly military building I have ever seen produced by the Italian Renaissance.  But probably appropriate for their history, given that the Sforza's were top generals to the Milanese Dukes before they took over the succession, and Milan was really home for the Renaissance era defense industry.
  • The Galleria Vittoria Emanuele is is a great Victorian-style glassed arcade near the Duomo.  The structure is cool but unfortunately there is not really anything inside to do it justice.

  • Took a lot of 3-shot photo series with a bracketing of low to high exposures so I could play with some new High Dynamic Range imaging software. This kind of scene above, with lots of texture in the buildings that gets washed out by the sunlight from the glass dome, hopefully will work well.  I will report on results.
  • On to Florence today, where we have a beautiful deck overlooking the Arno and Ponte Veccio and views from the rooftop restaurant all around Florence.  At least if the goofball in the black shirt would stop jumping in front of the camera.

Gone

I am heading for Italy for two weeks.  No blogging planned except perhaps some photo-blogging.  I expect you guys to have this country straightened out by the time I get back.

New York Takes a Cue From Italy

Via the NY Daily News:

The race for governor just got a whole lot sexier.

"Manhattan Madam" Kristin Davis is tossing her lacy brassiere into the political ring - with the help of one of the GOP's most fearsome strategists.

Though he's often labeled a "trickster," former Nixon, Reagan and Bushes operative Roger Stone tells us he's dead serious about getting Davis on the ballot.

"This is not a hoax, a prank or a publicity stunt," said Stone, who has been quietly huddling with Davis for months. "I want to get her a half-million votes."

I love this:

Davis laid out her credentials last weekend at a Libertarian Party convention on the lower East Side.

"I was valedictorian of my high-school class," said the golden-tressed Davis, sporting a modest black suit but wicked Christian Louboutins with 5-inch heels. "I worked 10 years in finance. I was vice president of a hedge fund. I went on to build a multimillion-dollar business from scratch."

While branding "taxation as confiscation," the former escort empress said the legalization of prostitution and marijuana could provide $2.5 billion in revenue to help close the budget gap.

"I'm a natural Libertarian," said Davis, who also embraces gay marriage and the views of the National Rifle Association.

And here is some great political strategy:

Even though she needs only 15,000 signatures to get on the ballot, she's shooting for 45,000 - and Stone doesn't see any problem getting them.

"Kristin knows lots of Penthouse Pets," he said. "We'll get four, make them notary publics and have them, suitably attired, collecting signatures at Grand Central Station during rush hour."

More on the European Economic Model

Yesterday I posted on the irony that in the name of "change" and "dynamism," the Democrats are pushing for what basically is an inherently more conservative (little-c), less dynamic economic system that mirrors that of many continental European countries.

Daniel, an American reader who does quite a bit of work in Europe, wrote me:

1) The static nature of the Euro mentality assigns a high cost to ... people ... who try to break the mold. Cost of failure is relatively high. In Italy if your small business declares bankruptcy, you forfeit the right to vote.

2) In Germany, workers are sorted at an early age into "blue collar schools" and "professional schools". I know from my youth, if I had grown up in Germany instead of America, I probably would not be a consultant but more like a janitor (not that there is anything wrong with janitors...).

3) Social services in Europe are hit and miss. In Germany, many people carry private insurance despite the availability of public insurance because of the lack of quality.

4) (this may be a good thing) Italian school children go through a less harsh puberty than American kids. Society has drilled into them that it's not cool to be different, so there are less cliques. When I share my experiences in school with most Europeans they usually make some snide remark about how growing up in a battle zone (primary school) has caused the Iraq war.

5) Highly skilled workers are in many cases no better paid than unskilled staff. In the south of Italy a senior programmer may make 2K euros per month. A secretary might make 1.5K a month. If it weren't for most Europeans fear of moving to new cities, there would be no programmers to hire.

6) Speaking of being afraid to move, many Europeans find the thought of moving to a different city complete alien concept.

7) Life in Euro is a much more comfortable than in America *if* you are European. If you are an immigrant, forget it. After two years of pitching companies in the South of Italy, I have never seen a black person be more than a street side vendor of trinkets. In Italy, there is an unsaid rule that you must be an Italian to ever be a professional.

8) Don't get me started on France.

9) It is illegal for a business to stay open more than it's quota in most European countries. It is illegal to operate a barber shop on Mondays.

Roosevelt and Mussolini

I have elaborated a number of times on the parallels between the National Recovery Act and Mussolini-style fascism, as well as the frank admiration Roosevelt had for what Mussolini was doing in Italy.

David Boaz goes into much more detail

Roosevelt himself called Mussolini "admirable" and professed that he
was "deeply impressed by what he has accomplished." The admiration was
mutual. In a laudatory review of Roosevelt's 1933 book Looking Forward,
Mussolini wrote, "Reminiscent of Fascism is the principle that the
state no longer leaves the economy to its own devices."¦Without
question, the mood accompanying this sea change resembles that of
Fascism." The chief Nazi newspaper, Volkischer Beobachter,
repeatedly praised "Roosevelt's adoption of National Socialist strains
of thought in his economic and social policies" and "the development
toward an authoritarian state" based on the "demand that collective
good be put before individual self-interest."

When Did We Start to Fear Speech?

I feel like it is time for one of those unpopular libertarian rants that piss everyone off.   As with the last time this issue came up, I just don't understand what we fear so much letting Iranian dictator Amadinejad speak on American soil.  I am absolutely all for letting people put themselves on the record in the clearest possible way.  McQ over at Q&O is a smart guy I often agree with, but his core assumption seems to be that an invitation from Columbia University somehow confers some legitimacy on an otherwise egregious world leader.  How?  I am not sure the Columbia name even confers much legitimacy on its faculty.  The only thing the decision communicates to me is that Columbia, the university that didn't allow presentation of the Mohammad cartoons and that allows speakers to be manhandled off the stage, is deeply confused about speech issues on campus.

Information is always useful.  Would I have allowed Hitler to speak in the US in the 1930's?  Hell yes!  I wish he had gone on a 20-city speaking tour.  Hitler couldn't help but telegraph his true intentions every time he spoke.  Hell, he wrote it all down in a book if people would have paid attention.  But what if he didn't?  What if he convinced all America he was peaceful?  Even then it would have been useful.  Intelligent media (if there are any left) could then compare and contrast what he said at home vs. what he said in the US, much like a few folks do with Muslim clerics, comparing their English and Arabic speeches.  Further, folks would have immediately seen Hitler was lying in September of 1939, and, knowing Americans, they would have been more pissed off at him for being lied to.  Further, it would be fabulous to have quotes form Mussolini, touring eastern US cities, praising the New Deal and the NRA, much of which was modeled on his program in Italy.

What about, as Roger Simon asks:

I have a question for the Columbia crowd, since Holocaust deniers are
welcome, would you allow a speaker in favor of a return to black
slavery? I hope not. Well, that's how I feel about Holocaust deniers.

Absolutely I would.  If there was a prominent person who advocated the return to black slavery, I would want that person on the record in public.  I would love to listen to see what kind of supporters he thought he had, and, perhaps more importantly, to see who reacted favorably to him.   You have to pull these guys up into the sunlight and show the world how distasteful they are.

Update:

During the 1930s, "one of the things we really lacked in this country
was sufficient contact with Nazis to realize what they are up to," said
Harvey Silverglate, a prominent civil rights attorney who has sharply
criticized higher education for failing to support free speech on
campus. The notion "that you're going to take really awful people and
not listen to them is really suicidal for any society."

State Run Medicine: Bureaucrat Salaries Trump Patients

Italian Daniele Capezzone writes in the WSJ($):

This situation is especially dire in Italy. The
government has capped spending on pharmaceuticals at 13% of total
health-care expenditures while letting expenses for infrastructure and
staff skyrocket. From 2001 to 2005, general health expenses in Italy
grew by 31% while expenditure on medicines increased a mere 1.7%.
Italian patients might well have been better off if the reverse was the
case, but the state bureaucrats who make these decisions refuse to
acknowledge the benefits of advanced drugs....

Part of the problem is that regional authorities
manage most of Italy's health-care spending. A strike by health-care
personnel has an immediate impact on the region, but the consequences
of cutting the budget for medicines are only felt in the long term and
distributed across the nation. Hence, local authorities continue to
focus on personnel and infrastructure in an age when medical research
has become the most efficient way to improve public health.

Gee, government officials more concerned about raising government salaries than performance?  Couldn't possibly happen in the US, could it?  This is classic government management -- freeze or reduce expenses that actually provide customer service, and raise administrative costs and salaries many times faster than inflation.  This is exactly what has happened in public schools, as infrastructure and teaching aid investments have been deferred in favor of raising salaries and adding untold number of vice-principals and administrators to every school.

But the government is focused on the long-term while greedy old for-profits are short-term focused.  Right?

Unfortunately, most of today's cutting-edge research is conducted
outside Europe, which was once a pioneer in this field. About 78% of
global biotechnology research funds are spent in the U.S., compared to
just 16% in Europe. Americans therefore have better access to modern
drugs. One result is that in the U.S., the annual death rate from
cancer is 196 per 100,000 people, compared to 235 in Britain, 244 in
France, 270 in Italy and 273 in Germany.

Update:  Ronald Bailey points out that drug re importation is just a way to impose drug price controls in the US, effectively applying the most aggressive price-control regime for each drug worldwide to US prices.  Right now, drug companies tolerate price controls set as much as 2/3 under US prices or more because they can still make money at the margin, because the marginal cost of drug production is so much lower than the total cost with R&D, etc. included.  However, they cannot survive at these prices applied to US demand.  Remember, drug companies have profits margins averaging in the 18-20% range.  Perhaps you might argue they should only be making 10%, but that only gives you room for an imposed 10% price cut, not the huge cuts politicians would like.  And you would get that only at tremendous costs in terms of lost freedoms and demolished incentives for new drug development.

US Government Kidnapping

Growing up, my dad was a corporate executive in an industry where family members were routinely kidnapped and held for ransom in various countries.  As a result, I had a no-travel list of countries I could not visit, which included unsurprising entries like certain third world nations but also included countries like Italy and Germany, which we forget were plagued with Red Brigade kidnappings in the 1970's.

Foreign executives may have to add the United States to their no-travel list, as the US steps up its campaign of arresting people for activities they engaged in outside our country and which were legal in their home countries:

The founders of the online payment service Neteller have apparently been arrested  at airports in New York and Los Angeles.

It's
not yet clear why they were arrested. But it's worth noting that
Neteller, which is based in the Isle of Man, is the only offshore
online payment service that decided to continue to allow its U.S.
customers to do business with online gambling sites after the new bill
banning such transactions passed at the end of the last Congress.

And of course, U.S. officials have made a habit of late  of arresting high-profile offshore gambling executives when they pass through the U.S. to switch planes.

If an American, changing planes in Saudi Arabia, was arrested for being gay, or not wearing a burka, we would be outraged.  Brits should similarly be outraged that their subjects are being thrown in US jails for activities that are perfectly legal in their home country.

Revisiting the New Deal. Finally.

By this definition of "not normal", I am not normal either.  I share with Tabarrok the strong sense that the New Deal (combined with shockingly stupid use of Wilson's Federal Reserve and of course rampant scorched-earth protectionism) extended rather than shortened the Great Depression. 

Imagine, increasing the power of
unions to strike and raise wages during a time of mass strikes and mass
unemployment. Imagine thinking that cartelizing whole industries
thereby raising prices and reducing output could improve the economy.
Not everything Roosevelt did was counterproductive - he did end
prohibition (although in order to raise taxes) - but plenty was and
worst of all was the uncertainty created by Roosevelt's vicious attacks
on business.

One of the things I think we have done historically is understate the true degree to which Roosevelt showed himself willing to take the country down the road to socialism, or more accurately, Mussolini-style fascism. Via David Gordon:

Roosevelt never had much
use for Hitler, but Mussolini was another matter. "'I don't mind
telling you in confidence,' FDR remarked to a White House
correspondent, 'that I am keeping in fairly close touch with that
admirable Italian gentleman'" (p. 31). Rexford Tugwell, a leading
adviser to the president, had difficulty containing his enthusiasm for
Mussolini's program to modernize Italy: "It's the cleanest "¦ most
efficiently operating piece of social machinery I've ever seen. It
makes me envious" (p. 32, quoting Tugwell).

Why did these
contemporaries sees an affinity between Roosevelt and the two leading
European dictators, while most people today view them as polar
opposites? People read history backwards: they project the fierce
antagonisms of World War II, when America battled the Axis, to an
earlier period. At the time, what impressed many observers, including
as we have seen the principal actors themselves, was a new style of
leadership common to America, Germany, and Italy.

Once more we must avoid a
common misconception. Because of the ruthless crimes of Hitler and his
Italian ally, it is mistakenly assumed that the dictators were for the
most part hated and feared by the people they ruled. Quite the
contrary, they were in those pre-war years the objects of considerable
adulation. A leader who embodied the spirit of the people had
superseded the old bureaucratic apparatus of government.

If you don't believe me, it is probably because you are not familiar with the National Recover Act (NRA) -- the famous "blue eagle".  This program was the very heart of Roosevelt's vision for the American economy, a vision of cartelized industries managed by government planners. (via Sheldon Richman of the Concise Encyclopedia of Economics):

The image of a strong
leader taking direct charge of an economy during hard times fascinated
observers abroad. Italy was one of the places that Franklin Roosevelt
looked to for ideas in 1933. Roosevelt's National Recovery Act (NRA)
attempted to cartelize the American economy just as Mussolini had
cartelized Italy's. Under the NRA Roosevelt established industry-wide
boards with the power to set and enforce prices, wages, and other terms
of employment, production, and distribution for all companies in an
industry. Through the Agricultural Adjustment Act the government
exercised similar control over farmers. Interestingly, Mussolini viewed
Roosevelt's New Deal as "boldly... interventionist in the field of
economics." Hitler's nazism also shared many features with Italian
fascism, including the syndicalist front. Nazism, too, featured
complete government control of industry, agriculture, finance, and
investment.

And further, from John Flynn's The Roosevelt Myth via Anthony Gregory:

[Mussolini] organized each trade or industrial group or professional
group into a state-supervised trade association. He called it a
corporative. These corporatives operated under state supervision and
could plan production, quality, prices, distribution, labor standards,
etc. The NRA provided that in America each industry should be organized
into a federally supervised trade association. It was not called a
corporative. It was called a Code Authority. But it was essentially the
same thing. These code authorities could regulate production,
quantities, qualities, prices, distribution methods, etc., under the
supervision of the NRA. This was fascism. The anti-trust laws forbade
such organizations. Roosevelt had denounced Hoover for not enforcing
these laws sufficiently. Now he suspended them and compelled men to
combine.

And read this to see the downright creepy Soviet-style propaganda Roosevelt used to promote the NRA.  One example:

A hundred thousand schoolchildren
clustered on Boston Common and were led in an oath administered by
Mayor James Michael Curley: "I promise as a good American citizen to do
my part for the NRA. I will buy only where the Blue Eagle flies."

The fact that the worst of the NRA was dumped by the Supreme Court, and eventually by FDR under pressure, cause us to forget what businessmen in the 1930's were seeing.  The unprecedented fall in asset prices in the early thirties would normally have started to attract capital, at least from the bottom-fishers.  But any reasonable observer at that time would have seen the US government on a path to controlling wages, prices, capacity, etc  -- not an environment conducive to investment.  In fact, under Roosevelt's NRA industry cartels, its not clear that private industrial investment was even legal without the approval of the Code Authority for that industry.

People look back fondly and give credit to the CCC and large public works programs for our recovery, but in fact these programs were necessary because FDR's New Deal, and particularly the NRA, made private investment dry up.

Postscript:  By the way, questioning the greatness of the New Deal is one of those issues that will get you labeled a wacko almost as fast as being a climate change skepticHere is Janice Rogers Brown getting slammed for questioning the New Deal.

New Deal and Fascism

On a number of occasions, I have pointed to the strong echos of Italian-style fascism in Roosevelt's New Deal, particularly in the National Recovery Act, which was practically a copy of Mussolini's political-economic model.  David Gordon reviews a new book called the Three New Deals which delves deeper into this parallel development on matters of state control of the economy between Roosevelt, Hitler, and Mussolini.

Roosevelt never had much
use for Hitler, but Mussolini was another matter. "'I don't mind
telling you in confidence,' FDR remarked to a White House
correspondent, 'that I am keeping in fairly close touch with that
admirable Italian gentleman'" (p. 31). Rexford Tugwell, a leading
adviser to the president, had difficulty containing his enthusiasm for
Mussolini's program to modernize Italy: "It's the cleanest "¦ most
efficiently operating piece of social machinery I've ever seen. It
makes me envious" (p. 32, quoting Tugwell).

Why did these
contemporaries sees an affinity between Roosevelt and the two leading
European dictators, while most people today view them as polar
opposites? People read history backwards: they project the fierce
antagonisms of World War II, when America battled the Axis, to an
earlier period. At the time, what impressed many observers, including
as we have seen the principal actors themselves, was a new style of
leadership common to America, Germany, and Italy.

Once more we must avoid a
common misconception. Because of the ruthless crimes of Hitler and his
Italian ally, it is mistakenly assumed that the dictators were for the
most part hated and feared by the people they ruled. Quite the
contrary, they were in those pre-war years the objects of considerable
adulation. A leader who embodied the spirit of the people had
superseded the old bureaucratic apparatus of government.

He also gives us a good hint as to why so many people on the left today are trying to find way to paint the American economy as somehow broken or at some historical low point:

He concludes the book by recalling John T. Flynn's great book of 1944, As We Go Marching.

Flynn, comparing the New Deal with fascism, foresaw a problem that still faces us today.

But willingly or
unwillingly, Flynn argued, the New Deal had put itself into the
position of needing a state of permanent crisis or, indeed, permanent
war to justify its social interventions. "It is born in crisis, lives
on crises, and cannot survive the era of crisis"¦.

Katrina, General Patton, and Individual Responsibility

How can you resist that title?  I took this from Stephen Ambrose's wonderful Citizen Soldiers:

Patton entered the town [of Bitburg, Germany] from the south while the fighting was still going on at the northern edge of town.  "In spite of the fact that the shells were falling with considerable regularity, I saw five Germans, three women and two men, re-roofing a house.  They were not even waiting for Lend-Lease, as would be the case in several other countries I could mention [including France]."   Dozens of GIs make the same point:  in Italy and France, the residents left the rubble in the streets, waiting for someone else to clean it up, while in Germany the residents were cleaning up as soon as the battle passed their villages.

Does this make anyone else think of Katrina and New Orleans?  I guess they don't call it the French Quarter for nothing.

OUCH! My Ankle!

Not being much of a pro soccer fan, I have been surprised to find that the sport can be compelling, at least in stretches.  For example, the 30 minutes of overtime between Italy and Germany was quite exciting.

However, I think the sport should be ashamed at the state of affairs in its refereeing.  In any one game, you might see players rolling around on the ground faking injuries as many as 15 or 20 times.  It became a source of immense amusement for my son and I to see not only how much faking was going on, but how often the faking involved holding a body part that seemed unrelated to any contact  (e.g. holding their head as if they received a concussion when they were accidentally tripped).  If these were all real injuries, the field would look like Omaha beach by the end of the game.

Why do they do it?  Because the referees reward them for it, of course.  It was pretty clear that on many occasions acting and injury-faking turned accidental falls into penalties and minor penalties into yellow and red cards.  It's disgraceful.  I know refereeing is hard given the speed of today's athletes, but for god sakes soccer has got to be an order of magnitude easier to referee than say basketball or particularly American football. 

Even more, I wonder why fans tolerate the pretend injuries?  Can you imagine Pittsburgh Steelers fans fondly embracing a wide receiver that faked ankle injuries two or three times a game to try to get an interference call?

Most all the regulation goals in later games of the world cup have been
scored on penalty kicks.  It seems that the game has devolved into
lofting the ball into the box and then hoping to draw a penalty, sort
of like a hail Mary play at the end of a football game.  I would love
to see the game opened up a bit to allow more scoring of real goals in
regulation -- how about eliminating the offsides penalty?

Oh, Those Sophisticated Europeans

Per the NY Times:

As he left the soccer field after a club match in the eastern German
city of Halle on March 25, the Nigerian forward Adebowale Ogungbure was
spit upon, jeered with racial remarks and mocked with monkey noises. In
rebuke, he placed two fingers under his nose to simulate a Hitler mustache and thrust  his arm in a Nazi salute.

In April, the American defender Oguchi Onyewu, playing for his
professional club team in Belgium, dismissively gestured toward fans
who were making simian chants at him. Then, as he went to throw the
ball inbounds, Onyewu said a fan of the opposing team reached over a
barrier and punched him in the face....

Players and antiracism experts said they expected offensive behavior
during the tournament, including monkey-like chanting; derisive
singing; the hanging of banners that reflect neofascist and racist
beliefs; and perhaps the tossing of bananas or banana peels, all
familiar occurrences during matches in Spain, Italy, eastern Germany
and eastern Europe.

I am sure many American black athletes still have stories to tell about encountering racism, but didn't we at least climb out of this kind of pit of overt racism forty years ago or so?  While European sophisticates have looked down their noses at US racial problems, European monocultures seem now not to be ahead of us but behind us in dealing with ethnic diversity.  Though there do seem to be plenty of Americans who long to take our country back to being a monoculture.

I Guess I am an Extremist

I have not really had the time to do the research to form an opinion about Bush's judicial nominees, and the MSM is not very helpful in its coverage on the issue.  I wrote here that the judiciary has started to overreach of late, legislating from the bench to advance an agenda generally supported by the Democrats.  I don't know the candidates well enough to decide if these proposed judges are conservative activists who want to legislate from the bench but for conservative ends, or if they represent a first shot at reversing extra-constitutional judicial activism (which I would support).

However, I may have started to develop an favorable opinion on a couple of judges, based on what I have learned from their detractors.

Take this example, from a NY Times editorial, March 6, 2005.  In disparaging how extremist Bush judge nominees are, they use the example of:

Janice
Rogers Brown, who has disparaged the New Deal as ''our socialist
revolution.''

Woe is me, I must be an extremist.  First, the New Deal was clearly a "revolution", in that it was one of two events (the other being the Civil War) in the last 200 years that fundamentally changed the role of the federal government in what was a massive reinterpretation of the Constitution.  But was it socialist?  We can argue about whether the New Deal legacy that reaches us today is socialist or not- many quite normal non-extremist folks would argue yes and many similarly rational folks would argue no.

However, arguing the nature of the New Deal from what programs reach us today leaves out a lot of the picture.  Much of the New Deal was voided by the Supreme Court.  While some was re-passed later once FDR had a chance to remold the court with his own (for the time) extremist ideologues, some of the most socialist-statist-fascist legislation never was reinstituted.

The most dramatic of these institutions that fortunately were left on the cutting room floor was the National Industrial Recovery Act, or NRA.  Roosevelt actually modeled the NRA on Mussolini's fascism in Italy, so I guess it might be more correct to call it fascist rather than socialist but in practice, I can't ever tell those two apart.*

The image of a strong
leader taking direct charge of an economy during hard times fascinated
observers abroad. Italy was one of the places that Franklin Roosevelt
looked to for ideas in 1933. Roosevelt's National Recovery Act (NRA)
attempted to cartelize the American economy just as Mussolini had
cartelized Italy's. Under the NRA Roosevelt established industry-wide
boards with the power to set and enforce prices, wages, and other terms
of employment, production, and distribution for all companies in an
industry. Through the Agricultural Adjustment Act the government
exercised similar control over farmers. Interestingly, Mussolini viewed
Roosevelt's New Deal as "boldly... interventionist in the field of
economics." Hitler's nazism also shared many features with Italian
fascism, including the syndicalist front. Nazism, too, featured
complete government control of industry, agriculture, finance, and
investment.

If you are not familiar with the NRA, you need to be if you are going to come to a conclusion about the New Deal and just how statist FDR's aspirations were.  The actual text of the act is hereHenry Hazlitt has a long evaluation here.  In the end, the NRA was scrapped in large part because it was a disaster for the economy.  Many blame the NRA for strangling the recovery that began in 1933-34 and thus extending the depression.  Parts of the law (collective bargaining, minimum wage) were incorporated in other later legislation, but the core concept of organizing industrial cartels with government backing to run industries and set prices, wages, and production levels died, fortunately.

Update:  More here.  Mr. Gregory quotes John Flynn's The Roosevelt Myth:

[Mussolini] organized each trade or industrial group or professional group into a state-supervised trade association. He called it a corporative. These corporatives operated under state supervision and
could plan production, quality, prices, distribution, labor standards,
etc. The NRA provided that in America each industry should be organized
into a federally supervised trade association. It was not called a
corporative. It was called a Code Authority. But it was essentially the
same thing. These code authorities could regulate production,
quantities, qualities, prices, distribution methods, etc., under the
supervision of the NRA. This was fascism. The anti-trust laws forbade
such organizations. Roosevelt had denounced Hoover for not enforcing
these laws sufficiently. Now he suspended them and compelled men to
combine.

*  I disagree with people who want to argue that socialism is freedom but without property rights while fascism is property rights without other freedoms.  Neither of these conditions are stable, and both converge to the same destination of suffocating statism, just with different starting points and different people in charge.  One of the things that drive libertarians nuts is being presented with a grade school civics book that has a linear political spectrum with fascism on one end and communism on the other.  Are those really my only two choices? 

 

Death of Kyoto

Kyoto and similar protocols are dying, and for entirely predictable reasons.  Story in TCS from Buenos Aires.

The conventional wisdom that it's the United States against the rest of the world in climate change diplomacy has been turned on its head. Instead it turns out that it is the Europeans who are isolated. China, India, and most of the rest of the developing countries have joined forces with the United States to completely reject the idea of future binding GHG emission limits. At the conference here in Buenos Aires, Italy shocked its fellow European Union members when it called for an end to the Kyoto Protocol in 2012. These countries recognize that stringent emission limits would be huge barriers to their economic growth and future development.

None too soon for me.