Coyote Blog

As many of my readers know, we run over 200 recreation facilities across the country, from Washington to Florida.  This experience of serving nearly a million customers a year has yielded some odd insights.  One of the ones I published before is that the far-and-away worst litterers in the country are Southern Californians and LA residents in particular, California-eco-speak notwithstanding. 

Another observation we have made is that many times our most difficult customers turn out to be law enforcement officers.  I'm not talking about all of them - the vast majority of law enforcement officers are friendly, peaceful campers.  But when we have an incident of a customer refusing to follow the rules and wanting privileges no one else gets, like-as-not the customer is a law enforcement officer of some sort.  For example, we have had an off duty law-enforcement officer pay for one campsite, and then spread his stuff out over three, and refuse to limit himself to one site or pay for the other two he was using.   We have had off-duty law enforcement officers who had their car towed because it was parked for four hours in a tow-away zone, and then had their on-duty friends show up (well out of their jurisdiction) and interrogate our managers and otherwise harass them in retribution.  Heck, we have biker gangs come through that are more respectful of authority than certain off-duty law enforcement officers.

This irritating little site (HT: Hit and Run) possibly explains some things for me.  The site is apparently run by cops and is aimed at criticizing cops who do not extend other officers "professional courtesy"  which apparently is a euphemism for "allow them to break the rules with impunity."  Police officers who actually have the temerity to enforce the rules on other police officers are singled out as "dicks."  Maybe I understand why some of our police officer customers are not accustomed to having to follow the same rules as everyone else.

From San Francisco, of course! via Market Power

Prop. G obligates the
Planning Commission to conduct a hearing for any chain store (also
known as "formula retail") proposed in neighborhood commercial
districts.

Formula retail is defined as any retail sales establishment with 11
or more stores in the United States that maintains two or more
standardized features, including decor, facade, color scheme, uniforms,
signage or a trademark.

Incredibly, freaking 58% of the voters passed this turkey.  It's hard to know where to start, but here are a few thoughts:

• Equal protection?  Anyone?  Buehler? 
• One of the most obvious punishments of success I have ever seen.  If you only have one store, you are fine.  But if you are succesful and your concept flourishes and you have many stores, then you are automatically penalized.
• One of the single most anti-consumer pieces of legislation I have ever seen.  Stores using a proven formula that has been succesful in other areas have a sort of consumer good housekeeping seal of approval.  They are by definition retail establishments where many consumers have already voted with their wallet "we like this."  So in effect, proven customer favorites are penalized vs. less proven concepts.  What an odd zoning concept when you put it that way -- we don't want anyone doing business here that has already proven themselves to be succesful with customers.  We only want you if you have no proof customers want what you are selling.

The other night I was staying in Arcadia, CA (a suburb of LA near Pasadena) on what I was told was the old Route 66.  There were a ton of restaurant choices, many of which I did not recognize, and there was a Chile's, which I grew up with in Texas.  I am positive some of those restaurants would have provided me a more satisfying meal than Chile's.  I am also sure some would have been worse.  Sometimes I am in the mood to find something new, but that night I just wanted a predictable experience.  All that stuff San Francisco is trying to penalize -- those standardized features -- bring real value to many consumers.

For years, banks have been sued for "red-lining" poor neighborhoods, meaning they were accused of purposefully avoiding doing business in these poor areas.  National retail chains have been accused of something similar, causing poorer the oft-commented-on irony that poorer neighborhoods often have the highest retail prices.

The City of Los Angeles seems to like this practice and wants to pass new legislation aimed at further limiting retail choices in poorer neighborhoods:

"Amid worries of an obesity epidemic and its related illnesses,
including high blood pressure, diabetes and heart disease, Los Angeles
officials, among others around the country, are proposing to limit new
fast-food restaurants -- a tactic that could be called health zoning."
Zoning restrictions on fast-food outlets in towns such as Concord,
Mass. and Calistoga, Calif. are typically based on traffic or aesthetic
concerns, rather than a determination to second-guess what residents
choose to eat. The proposed L.A. restrictions would not be city-wide
but would instead be specifically targeted to the city's poorest
sections in and around South Central. Mark Vallianatos, director of
something called the Center for Food and Justice at Occidental College (more about it), says "bringing health policy and environmental policy together with land-use planning" is "the wave of the future."

Jesus, the Center for Food and Justice?  Another clear leading edge of health care as the Trojan Horse for fascism, which I have been warning against for years.

Brink Lindsey reminds me it is the anniversary of the release of the original Star Wars.  I happened to be staying in Century Plaza in LA with my family on the day the movie was release, though I had never heard of it.  It was actually a pretty low-budget movie, and was only released on a few screens.  I got dumped off by my family, who was going shopping, in some theater near UCLA and Century City I can't even remember the name of.  Anyway, I and about 20 other people were in the theater that first day, partly I guess because it was daytime and mid-week.   It is the first and only movie I stayed and watched a second time.  I know this makes me a geek, but it really was a transcendent experience for me, though sadly an experienced unmatched in any of the follow-on movies.

Being one of an extremely small cadre to have seen the first one on opening day (really by accident) I felt compelled to see all the others on opening day, a cycle I completed successfully.

I would argue that for its time, against expectations of its day, the opening 30 seconds after the words stop scrolling may be the most amazing and powerful opening of a film ever (starts at about 2:00 into the clip below).  And don't miss that fine exhibition of Stormtrooper shooting at about 4:31.  Enjoy it again:

And don't miss how Star Wars should have ended.  Priceless:

And if you are not Star Wars'd out, try the Stormtrooper Training Video:

Thanks to Tom Kirkendall for the link to my light rail post.  For quite a while, he has been "railing" against Houston's light rail proposals (where I was born and raised).  By the way, he is right that Phoenix is even less amenable to a rail-based system than Houston.  Houston has low population density and its downtown area is small compared to metro-friendly cities like New York, making rail an iffy proposition.  But Phoenix is even less dense and its downtown is tiny compared even to Houston.

A previous post of Tom's also gives me data to feel even more confident about my proposed bet, which was this:

If we take the entire cost of the system's construction, plus its
annual operating losses/subsides, I will bet that we could have bought
every regular rider of the rail system a nice car instead and gas for
life cheaper than the cost of the rail system.

Obviously we don't have Phoenix numbers yet, but he links an LA Times story with Los Angeles numbers:

Three light-rail lines have been added to L.A. county's transit system
in the last 20 years. Together, these cost $2.5 billion in capital
costs, they serve about 125,000 passengers per day and account for a
fiscal loss of approximately $252 million per year -- if one
acknowledges that capital costs are real, something that transit
operators and boosters often neglect.

Note that LA's system is actually a more desirable system from a rider standpoint than the one in Phoenix, since in some areas the trains avoid traffic lights, making them closer to heavy rail, and thus have a faster speed.  So lets run my bet against LA's numbers.  We don't really know what the core ridership numbers are.  Certainly its less than the 125,000.  And we don't know if an out in the morning and back at night commute counts in these numbers as one passenger or two (From here, it looks like 125,000 passengers making 2 trips each).

If the core ridership number is 125,000, the highest possible choice, then the total capital cost of the system per rider is $20,000 per rider.  This means I was right, that we could have instead bought ever rider a car for the same money.  Since the real ridership is probably less than that number, this means we could have bought ever rider a car and had money left over.  Concerned about the environment?  Then make every car a Prius, which the money would just about cover even without the volume purchasing discount they would likely get.

But what about gas?  Well, they say they have a $252 million per year operating loss.  This subsidy, which is above and beyond ticket sales, equates to $2,106 (!) per daily rider, even using the higher 125,000 figure.  At $2.50 per gallon, this equates to 15.5 gallons of gas per rider per week. 

So you can see with the LA numbers, even using the largest possible interpretation of their ridership numbers, the money used for the train could have instead bought every passenger a new car and filled the tank up with gas once a week for life.

Yes, I know, the argument is that the train reduces congestion.  Supposedly.  I have two responses:

• Rail has never reduced congestion in any city.  Go see London and Manhattan.  In fact, rail seems to encourage urban density that increases congestion. 
• In Phoenix, where rail will often replace existing lanes of roads, the train will likely carry fewer people than the lanes of traffic used to, so congestion will increase.

Well, probably not.  But Seattle voters did take the great step of banning public subsidies for pro sports teams, which usually take the form of sweetheart stadium deals.  Of course, this being Seattle, the proposition's promoters were motivated less by libertarianism than by the desire to spend more government money on other things.  But since public funding of stadium's is a personal pet peeve, I will give them one cheer.

A while back I compared the escalating public subsidies of pro sports teams to a prisoner's dilemma problem:

To see this clearer, lets take the example of Major League Baseball
(MLB).  We all know that cities and states have been massively
subsidizing new baseball stadiums for billionaire team owners.  Lets
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.  First, would MLB 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.  OK, would baseball be
in the same cities?  Well, without subsidies, baseball would 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 would 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.

This subsidy game reminds me of the line at the end of the movie Wargames: 

A strange game.  The only winning move is not to play.

I don't think you will be able to guess who just wrote this in the LA Times:

The current frenzy over Wal-Mart is instructive. Its size is
unprecedented. Yet for all its billions in profit, it still amounts to
less than four cents on the dollar. Raise the cost of employing people,
and the company will eliminate jobs. Its business model only works on
low prices, which require low labor costs. Whether that is fair or not
is a debate for another time. It is instructive, however, that
consumers continue to enjoy these low prices and that thousands of
applicants continue to apply for those jobs.

Reason's Hit and Run has the answer.  I expressed similar thoughts here.

Would it be at all possible that the LA Times assign people to the business section that know something about business?

Over the last several weeks of the Lay-Skilling Enron trial, the prosecution has been putting on witnesses to testify that Enron management managed their earnings in quarterly releases by adjusting accounting reserves to increase reported income.  Here is an example:  Many companies, when they book sales, keep a reserve for noncollectable accounts.  Let's say that if a company books $1 million in sales, they might book 3% or $30,000 as a reserve against noncollectable accounts.  This reduces reported income by $30,000.  But the 3% is fairly arbitrary.  What if the bosses suddenly called down and said, you know, I think its only going to be 2.5%.  Then the entries would be changed and suddenly the company has $5000 more income.  And, if they retroactively changed the 3 to 2.5 for the last several quarters, tens of thousands of dollars might be added to this quarter's income.  Of course, in Enron's case, these entries and reserves were orders of magnitude more complicated and arcane.

So what's my beef against the LA Times?  They headline of their story on the activity I just described is:

Witness Says Enron Raided Fund

Orders to dip into reserves to inflate profit violated accounting rules, a former company accountant testifies.

What fund?  They make it sound like Lay and Skilling went into some bank vault somewhere and took money.  These reserves are not wads of cash sitting in accounts - they are accounting entries providing estimates of future expenses to be booked against current revenues.  What is undisputed is that management changed their estimates of these future expenses, which caused these paper reserve accounts to be reduced, increasing paper earnings.  You might reasonably argue that the only purpose for changing these estimates was to manipulate reported earnings in an unlawful way, and that is what the jury has to decide.  But how can you describe this as "raiding" a "fund", unless you want to portray the defendants in the worst possible light.

My guess is that the people who wrote this at the LA Times are the same ones who keep writing about the "Social Security Trust Fund" as if it is an actual pile of cash in a bank vault somewhere, and not money long ago spent by Congress.

In today's Opinion Journal, the WSJ editorializes against the proposal to even further raise marginal income tax rates in California, to the highest in the country save in New York City.  The Journal argues that this is chasing productive, high income people out of California:

The
latest Census Bureau data indicate that, in 2005, 239,416 more
native-born Americans left the state than moved in. California is also
on pace to lose domestic population (not counting immigrants) this
year. The outmigration is such that the cost to rent a U-Haul trailer
to move from Los Angeles to Boise, Idaho, is $2,090--or some eight
times more than the cost of moving in the opposite direction.

I had seen this Uhaul metric before.  The logic is that Uhaul has to keep its fleet of trucks and trailers balanced.  If everyone is going one way with them, say from California to Utah, then they are going to end up with an enormous yard full of vehicles in Utah unless they 1)  pay to backhaul the trucks to CA empty, which is really expensive, or 2) increase the price of the route to Utah and decrease the price of the route back until they are in balance or until the price of the preferred direction covers the backhaul costs.

I had never tried this myself.  I always wondered if the examples people use in articles like this are hand-selected or representative.  So I tried, at random, LA to Salt Lake City  (I have Utah on the brain, I guess, because we are going skiing up there next week, woohoo!)  and chose a date far enough in the future I didn't run into any random demand peaks.  A one-way 26-foot truck rental from LA to SLC on May 15 was quoted at $1888.  The same truck from SLC to LA was quoted at $299!  Try it yourself.

Frequent readers of my blog know I am a big supporter of open immigration, but it cannot be a good thing to send a quarter of a million of your best educated and most productive people out every year and backfill them with lower-skilled, under-educated immigrants. 

Sometimes entrepreneurs are successful enough to buy themselves sexy toys:  It may just be a nice pool table for the office, or it might be that new Gulfstream jet bought with the IPO proceeds.  But little did I know that entrepreneurial success would allow me to buy this beauty (click to enlarge):

This septic tank truck can really haul a load, carrying over 3800 gallons of, uh, poop.

We have a new facility at Pyramid Lake  we run in LA County, where, due to its location, all the bathrooms run into series of underground holding tanks.  At some point in the past, someone converted all the bathrooms into flush toilets, which in this area makes for a real waste of water and creates a lot of liquid waste we have to pump out and dispose of, at the cost of over $80,000 a year.  This truck is the intermediate solution, letting us cut our pumpong costs in half.  The long-term solution we are working with the US Forest Service on is to replace the bathrooms with a great composting technology from Bio-Sun, which will cut the waste and water use both to near zero.

So, unsurprisingly, Paul Krugman and others are arguing that Katrina is a vindication for large-government liberals  (One would think we would love GWB, who has been a better large-government builder than Clinton, but that is another topic).  Anyway, I think it is worth thinking for a second about the federal government and hurricanes.  I will divide the post into two parts:  Preparedness and Response, and show that in fact, large central-government thinking is at the heart of many of the problems that are being faced.

Disaster Preparedness
I cannot come up with any justification for the US Government taking the lead role in local disaster preparation or protection.  The types of disasters are just too wide and varied:  Tidal waves in Hawaii, earthquakes in LA, mudslides in San Diego, fires in the west, tornados in the plains, hurricanes on the gulf coast, blizzards in the north, etc. etc.  And why would anyone want the feds taking over their local disaster plans anyway?  Do you really want to rely on the hope that a national organization has the same priority on your local risks that you do?  The resources, the knowledge, and the incentive to prepare for emergencies are all local, and such preparation should be done as locally as possible.

The only reason locals would even tolerate federal involvement in disaster preparedness is $$$.  Every local politician loves federal dollars.  And even a hardcore libertarian like myself is probably willing to admit that some of the preparedness investments truly are public goods.  Take levees for example.  I am willing to have them as public goods.  However, no one can convince me that levees whose sole purpose in life is to protect New Orleans are federal public goods.  Why do I need to pay for them?  Why don't New Orleans people bear the full cost of their choice to live below sea level?  My family chooses to live in a place that is relatively free of disasters (though if the Colorado River dries up you can come visit our bleached bones as we are consumed by the desert).  Why should I subsidize people's choice to live in a location that sits in mother nature's cross-hairs?

But beyond my cantankerous libertarian desire not to subsidize you, those of you who live in disaster areas should demand to take responsibility for your own preparedness.  The feds are never going to value your safety the same way you do (as evidenced in part by the 40-year ongoing fight for levee funding in New Orleans) and are never going to understand your local problems like you do.  In fact, the illusion of federal responsibility for disaster preparedness is awful.  It gives irresponsible local authorities an excuse to do nothing and a way to cover their ass.  It creates a classic moral hazard and sense of false security.

I have resisted saying this for a week or so out of respect for the plight of individuals still struggling in Louisiana and Mississippi:  If one divides the world into the ants and the grasshoppers (per the classic fable), New Orleans and Louisiana would make the consensus all-grasshopper team.  They have lived in a stew of bad and corrupt government for years, mixed with a healthy dose of Huey Long-style patronage that created expectations that "you would be taken care of".  Their state officials have for years not only been grasshoppers, but have demanded that they be supported by the ants, and seem lost and confused that the ants didn't protect them somehow from Katrina.

Disaster Response
Its probably good to have a national body that can help focus resources from around the nation onto local regions that have been devastated by some disaster.  But here is the key point.  The federal government itself is never, ever going to have the resources stockpiled somewhere to handle a disaster of this magnitude.  They can't have the doctors on staff, the firemen waiting around, the medical supplies in a big warehouse, a field full of porta-potties ready to deploy, etc. etc.  There is just too much needed, and the exact needs are too uncertain.

What they can do, though, is understand that in an emergency, Americans from all over the country are always willing to help, to volunteer their time or skills or money to aid the victims.  More than anything, the Fed's role needs to be to remove barriers from these resources gettting to the the right places as fast as possible, and to backstop these private efforts with federal resources like the military.  Take the example of refugees.  There are over a million from this hurricane.  Of those, at least 90% will be helped privately, either from their own funds or friends or family or private generosity.  Probably more like 95+%, if you include resources offered by local governments.  The feds role then is to help the remaining 5% find food and shelter.  Note, though, that the problem is not dealing with 100% of the problem, it is dealing with the 5% the leaks through bottom-up efforts, while removing barriers that might stand in the way of bottom-up efforts helping the other 95%.

Unfortunately, the feds don't think this way.  Most feds, including Krugman type large government folks, distrust private and bottom up efforts.  They are top-down technocrats, putting an emphasis on process and control rather than bottom-up initiative.  I wrote much much more about the failed technocratic response to Katrina here.  I think one can argue the reason that the refugee situation for 95% of the people worked well is that these folks quickly got out of the sphere of influence of the FEMA folks -- in other words, they got far enough away to escape FEMA control.  Can you imagine what a total disaster would be occurring if FEMA tried to control the relocation of all 1 million people?  But on the LA and MS gulf coast, FEMA is exercising total control, actually preventing private initiative from helping people, and everyone is the worse for it.  I encourage you to read more in this post about valuing control over results, but I will leave you with this one anecdote that sums up the big government technocratic top-down world Mr. Krugman longs for:

As federal officials tried to get some control over the deteriorating
situation in New Orleans, chaos was being replaced with bureaucratic rules that
inhibited private relief organizations' efforts.

"We've tried desperately to rescue 250 people trapped in a Salvation Army
facility. They've been trapped in there since the flood came in. Many are on
dialysis machines," said Maj. George Hood, national communications secretary for
the relief organization.

"Yesterday we rented big fan boats to pull them out and the National Guard
would not let us enter the city," he said. The reason: a new plan to evacuate
the embattled city grid by grid - and the Salvation Army's facility didn't fall
in the right grid that day, Hood said in a telephone interview from Jackson,
Miss.

"No, it doesn't make sense," he said.

Technorati Tags:  Katrina, Economics

Posting will be kind of light this week because I am away at camp.  My wife signed us up for a family camp that they have run for years at UC-Santa Barbara.  One good sign already:  most of the guests have been coming for years.  One lady I had dinner with is here for the 28th year.

Basically all the family stay in the dorms here, and there are activities arranged by age group all day for the kids and optional activities for the adults.  Meals are in the cafeteria, where the food has been pretty decent.  The whole family has had a good time so far, though it had a bit of a rough start for me.  We drove here from Phoenix, and I am usually fine with long-distance drives.  However, the last 4 solid hours were spent basically inside LA fighting traffic.  I was ready to blow my brains out when I got here.  Unfortunately, our car was met at the gate by a group of camp counselors who were channeling "Up with People" or maybe the Mousketeers, but they were way to jolly for my mood at the time.

By the way, how does anyone study at a University that sits on a beach?  Well, at least the high speed LAN in the rooms works really well.

As I have written before, one of the favorite past-times of local and state politicians is to hand out grants, subsidies, and tax breaks for businesses to relocate to their district.  Billions and billions of dollars are given out every year to everyone from movie producers to sports teams to Wal-marts in order to "bring jobs" to the local community.

Economists have argued for years that these subsidies are a total waste (more on this below) but the Club for Growth links a great article demonstrating that they are not only a waste, they also are downright fraudulent.

Gov. George Pataki's administration gives millions of dollars every year to businesses that promise to hire more people or retain jobs. It's a promise that is often broken.

Almost half of those companies helped by New York taxpayers fell short of the job targets that are part of their deals with the state, records show.

In fact, a quarter of the businesses took taxpayers' money and loans, then cut jobs.

The article is quite detailed, but here is one example:

Take the case of Ingram Micro, a global computer-parts wholesaler with a distribution center near Buffalo.

In 1999, it accepted $675,000 in taxpayers' money and promised to add 542 workers. Instead, it cut its workforce by nearly 400.

The state demanded a penalty of $176,985, but an Ingram spokesman said it has not paid and is negotiating with the state.

Last month, Ingram Micro announced it will lay off another 120 Buffalo workers and send the work overseas.

OOPS!  One is driven to ask the obvious question - why are these subsidy programs so popular?  I can think of at least three explanations.

The first explanation is political.  These subsidy programs tend to satisfy important bases from both political parties, thereby ensuring their bipartisan support.  Democrats like the idea of spending government money to create jobs, while Republicans like tax breaks and supporting business.  This explanation is unsatisfying.

The second explanation probably hits closer to the mark, and it is the cynical-political explanation that politicians like buying votes with other people's money.  When they campaign for re-election, politicians like to have a couple of "scalps" they can wave around to show the voters that they are doing something (a consistent history of sober fiscal responsibility seems to be unappealing, I guess).  Being able to say "I brought Microsoft to the town of West Nowheresville" or better yet "I brought 1000 jobs to this community" are political favorites of both parties (Here is what New Yorkers are really paying for - the ability of George Pataki to post on his web site a press release saying "Bedding Company to Create 240 New Jobs in New Baltimore").   These are priceless campaign slogans that didn't cost the politician a dime, since they were funded by taxpayers.

The third explanation comes from economics and is the most interesting.  If you shed any notion of morality or ethics (e.g. that one has no right to give one person's money to another just to make their re-election more likely) then politicians who are approached by a company looking for a handout for business relocation faces what is called the prisoner's dilemma.  Many of you may know what that is, but for those who don't, here is a quick explanation, via the Stanford Encyclopedia of Philosophy:

Tanya and Cinque have been arrested for robbing the Hibernia Savings Bank and placed in separate isolation cells. Both care much more about their personal freedom than about the welfare of their accomplice. A clever prosecutor makes the following offer to each. "You may choose to confess or remain silent. If you confess and your accomplice remains silent I will drop all charges against you and use your testimony to ensure that your accomplice does serious time. Likewise, if your accomplice confesses while you remain silent, they will go free while you do the time. If you both confess I get two convictions, but I'll see to it that you both get early parole.  If you both remain silent, I'll have to settle for token sentences on firearms possession charges. If you wish to confess, you must leave a note with the jailer before my return tomorrow morning."

The "dilemma" faced by the prisoners here is that, whatever the other does, each is better off confessing than remaining silent. But the outcome obtained when both confess is worse for each than the outcome they would have obtained had both remained silent.

I hope you can see the parallel to subsidizing business relocations (replace prisoner with "governor" and confess with "subsidize").  In a libertarian world where politicians all just say no to subsidizing businesses, then businesses would end up reasonably evenly distributed across the country (due to labor markets, distribution requirements, etc.) and taxpayers would not be paying any subsidies.  However, because politicians fear that their community will lose if they don't play the subsidy game like everyone else (the equivalent of staying silent while your partner is ratting you out in prison) what we end up with is still having businesses reasonably evenly distributed across the country, but with massive subsidies in place.

To see this clearer, lets take the example of Major League Baseball (MLB).  We all know that cities and states have been massively subsidizing new baseball stadiums for billionaire team owners.  Lets 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.  First, would MLB 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.  OK, would baseball be in the same cities?  Well, without subsidies, baseball would 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 would 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.

This subsidy game reminds me of the line at the end of the movie Wargames:

A strange game.  The only winning move is not to play.

Postscript:  As a libertarian, I have gone through phases on targeted tax breaks. There have been times in my life when I have supported tax breaks of any kind to any person for any reason, by the logic that any reduction in taxation is a good thing.  I know there are many libertarians that take this position.  Over time, I have changed my mind.  First, targeted tax breaks seldom in practice reduce the overall tax burden - they tend to be made up somewhere else.  Second, these tax breaks tend to be gross examples of the kind of government coercive technocratic meddling in commerce and individual decision-making that I despise. Almost always, they are trying to get individuals to do something they would not otherwise do, so in practice they tend to be distorting and carry all kinds of unintended consequences (as well as being philosophically repugnant).

Update 9/29/05:  We are suddenly getting a bunch of visitors from Econ.Aplia.com, which I presume is related to a university assignment or blog post somewhere.  Can someone email me in at the email in the right bar if folks are coming here from a particular site or university.  Just curious.

Update 9/30/05:  Thanks to a couple of emailers, the cat (err, bulldog?) is out of the bag and I know that Yalies are in the house.  Welcome.  I don't know if they teach free-markets any more in college, but your welcome to look around and take a walk on the libertarian dark side.  Good luck with economics, even if you did pick the wrong school.  --Coyote, Princeton '84, Harvard MBA '89

Update Again:  By the way, I discuss here the odd issue of why I and so many people misspell "dilemma" as "dilemna", as I did in this post.

First, I must confess that I have been to opening day of every Star Wars movie, and I have tickets for opening day of this last one.  Yes, I am kindof a geek, but no, I am not a total geek:  I did not sit up all night in line or anything for these movies. 

This is actually a bit of an accomplishment, because I don't think many people saw the original Star Wars movie on the first day.  One thing that I think a lot of people don't remember, given all the Star Wars hype and success, is that the original movie opened without much hype or expectations.  I was with my family visiting LA, where we were staying in some hotel in Century City  (maybe the Century Plaza - I remember it seemed pretty nice).  Anyway, my dad was on business and my mom and sisters were shopping so I walked over that morning to see what was playing at the Century City movie theater.  It was in that way I accidently saw the first showing on the first day of the original Star Wars.  It was me and about 7 other people in that huge theater.   I was so blown away that I stayed for a second showing.

Anyway, time passes.  Empire Strikes Back was great.  I thought at the time that Return of the Jedi was pretty mediocre, but that was before I saw Clone Wars which I thought was visibly stunning but really bad.  I cringed every time there was any substantial dialogue, particularly  when Padme was on the screen.

Anyway, I take this review pretty seriously, because they seem to have had the same reactions I had to the previous movies.  The Good news:  visually even more stunning, cool fight scenes, and a better all around movie than the other prequels.  The Bad news:  the Padme dialog still sucks, maybe even worse.

I really enjoyed watching Revenge of the Sith. And yes, it is quite a good film.
However, the scenes with Padmé alone are enough to give you flashbacks of the
worst parts of the first 2 sequels, and thus lower your overall enjoyment ofthe
movie.

Still... it is a strong film with a strong story, great effects and much
improved dialog (with the exception of anything with Padmé in it). Star Wars
fans should be quite happy... and non-Star Wars fans will enjoy as well.

Overall... I give Revenge of the Sith a solid 7 out of
10 (would have been a 9 if they just totally took out Padmé or
re-wrote all her pathetic dialog).

It gets much worse treatment in other venues, but for roughly the same reasons.

UPDATE:  Here is my review

By the way, Darth Vader has a blog now.  We learn a lot from it about the daily trial and tribulations of being a dark jedi master (thanks to VodkaPundit for the link):

Due to the haste with which we are proceding through the
latter phases of this battle-station's construction we have been forced to
employ scores of civilian contractors from across the galaxy in addition to our
own Imperial Corps of Engineers. This had led to a certain clash of working
cultures.

For instance, this morning I critiqued a tragically sub-par
piece of workmanship on a tractor-beam repulsolift inversion assembly by
snapping the neck of the site supervisor and throwing his limp corpse down a
disused elevator shaft.

Imperial engineers would have snapped to crisp
attention, of course, but all these civilian contractors did was give me was
grief. "Oy, you do that again and I'll have the union on you!" barked one
red-faced buffoon.

"It is vital that you enhance the inter-departmental
syngergies of your operation," I said. And then I killed him.

I can relate.

Arizona Watch has a great post today about our state government's foray into amusement park regulation after several folks were stuck on a local ride for a couple of hours. 

There are no major amusement parks in Arizona, although two large
ventures are apparently planned. Currently, inspections are handled by
insurance companies, who have a serious financial stake in maintaining
the safety of the rides. Insurers can't afford to have unsafe rides at
their client's amusement park. Compare that to the state, that has
exactly what at stake?

As an aside, Phoenix is an awful place for a roller-coaster and amusement park fan like myself to live.  Basically, we have no real amusement parks  (though there are some great ones about a 6-hour drive away in LA).  I have sat and pondered this a lot - why does a city this large with such a strong tourist economy not have a Six Flags type attraction?

The answer I guess is  that our season is wrong.  Our season is November-April, when the weather is nice.  Unfortunately, the kiddies are in school then.  During summer vacation months, Phoenix is a bit, uh, toasty (but its dry heat, as we tell our Thanksgiving turkey each year).  This answer is not totally satisfying, as uncomfortable summer cities like San Antonio and Houston have major theme parks.  Also, Phoenix has no real world class water parks (just a couple of places with 2 slides and a pool).  Maybe its because all the developpers here have golf courses on the brain.

Where do Phoenix people go for fun in the summer?  Well, if you are ever in San Diego or LA during the summer, check the license plates.  Then you will know where we are.

Politicians seem to love the movie business, or so I infer from the rash of proposals of late to subsidize the movie business. 

New York City seems to have been first out of the blocks, with this program to provide tax rebates and free advertising for shooting movies in NYC.  The article tells us this is the only industry being so targeted at this point by NY.  Why?  Why are movie jobs and movie makers somehow better than every other kind?  Maybe its because they think the movies provide good advertising for NYC, like the great light they cast on the city in movies like this and this.

Anyway, the trend got my attention when our own Arizona governor lamented that Arizona is no longer home to as many movie shoots as it once was decades ago.  Far be it for me to suggest that this is probably more of an issue of westerns going in and out of style (since about a majority of movies shot in Arizona were westerns).  Nevertheless, Napolitano is pushing ahead with her plan to improve the net income line of Hollywood studios by subsidizing production in Arizona.

Finally, via Reason, we see that Hollywood is worried that it is being left out of the subsidy competition, by actually paying companies to film in LA:

Mayor James K. Hahn on Thursday announced a plan he hopes will keep Hollywood in
Hollywood "” by paying film production companies to shoot in Los Angeles.

Hahn's proposal, which was inspired by a program that New York City
adopted in December, would use as much as $15 million in public funds to
reimburse companies that make a movie in Los Angeles, paying them 5% of their
production costs or up to $625,000.

OK, so one would think that all these locations have struggling media and production industries.  But in fact, just the opposite is true.  In New York:

But Wylde thinks film is just the tip of the iceberg. The city's entire media sector is growing explosively, she notes. From Time Warner to Hearst to Bloomberg LLP, media firms account for $13 billion in city wages, 50% more than tourism.

And, in LA:

Last year, however, film, video and television production in Los Angeles
actually reached record highs. Entertainment Industry Development Corp. issued
permits for 52,707 location production days "” one day representing a single day
of work on a single project "” a 19% increase over 2003.

Doesn't sound like they are in much trouble.  Their film and media businesses are already growing explosively to record highs.  So why do they need a subsidy?  Doesn't exactly sound like the New England textile business.

Look, at the end of the day, this is about politicians handing taxpayer money to powerful media people, people who have the ability to disproportionately influence public opinions and things like ... elections!  This is a barely disguised campaign expenditure, except for the fact that taxpayers pay the bill.

I wrote more about the idiocy of subsidizing corporate relocations to one's state or city here.

Update:  Match Welch has more

I have gotten some nice, supportive feedback from my earlier post on my frustration with the recent oil spill at Pyramid Lake, California.  So much so that I would like to ask any readers who are familiar with Pyramid Lake (the one in LA county, not the larger one in Nevada) to send me an email -- We are considering a few new services at the park and some approaches to cut down on the long waits to get on the boat ramp, and I would like to discuss them with a few smart blog readers.

I am sitting here this evening watching LA Confidential on the big screen.  This is a fabulous movie, and its incredible to me that it didn't get more play at the time.  The acting performances are awesome -- ironically I think Kim Bassinger's is the weakest, but she is the only one to get an Oscar for it. The music and mood are fabulous.  It is even more incredible that the nearly unwatchable Titanic could beat it out for best picture Oscar.  If you have never seen it, give it a rent.