Coyote Blog

An excellent editorial from Tim Carney

Democrats occupied the Senate floor all night Monday, talking aboutclimate change. They didn't try to advance any legislation, and they didn't even try very hard to get media attention.

“The members know that serious climate change legislation stands no chance of passage in this divided Congress,” wrote the New York Times' climate-change reporter, Coral Davenport. Beyond that, Democrats know that action on climate legislation would help Republicans take the Senate in 2014.

So why occupy the Senate floor talking about the issue? In short: Faith, identity and cash.

The liberal climate cause is easier to understand if you think of it as a religion. Monday’s talkathon sounded at times like a religious revival. Senators spoke about the faithful who “believe in wind” and “believe in renewable” energy. Sen. Chris Coons, D-Del., said climate for him is “a faith issue.”

One doctrine in the Church of Climate is sola fide. In the words of Reformation theology: Justification comes through faith alone. “Good works” are irrelevant....

Beyond exercises in faith and identity politics, the Democratic all-nighter should be understood as a very odd fundraiser. Most fundraisers feature one or two politicians speaking to dozens of donors. Monday night featured a dozen politicians speaking to one donor: Energy billionaire Tom Steyer.

Steyer, having made his riches partly in green energy and fossil fuels, has decided to spend his billions electing Democrats who will pass climate legislation. He says he’s divested from his energy holdings, signifying his intentions are sincere.

Steyer spent $8 million to help elect Terry McAuliffe governor of Virginia last fall. “Steyer will inject millions into assorted races” in 2014, reports Joe Hagan in Men's Journal. Steyer has made it very clear what a politician needs to do to get his money: Make a big deal about climate change.

By the way, kudos to Carney for getting this correct.  It seems like an easy nuance to get accurately, but no one in the media ever does

Democrats called Republicans “deniers” 28 times during the talkathon. Majority Leader Harry Reidframed his speech this way: “Despite overwhelming scientific evidence and overwhelming public opinion, climate change deniers still exist.”

There’s an ounce of truth to this attack: Some Republicans wrongly deny that carbon dioxide and similar gasses exert a net upward pressure on atmospheric temperature, and that this has affected the climate.

But liberals hurl the term “climate denier” at anyone who doubts the hyperbolic catastrophic predictions of Al Gore, posits that non-manmade factors (like the sun) may also drive climate change, or opposes Democrats policies — the same policies Democrats aren’t actually trying to pass.

I have actually learned to embrace the "denier" label.  When it is applied to me, I agree that I am, but that one has to be careful what exact proposition I am denying.  I don't deny that the world has warmed over the last 100 years or that man-made CO2 has contributed incrementally to that warming, both now and in the future.  What I deny is the catastrophe.

The Senate Majority Leader has decided to try to shame and silence a private citizen for daring to engage in political discourse.  Here is Harry Reid:

I believe in an America where economic opportunity is open to all. And based on their actions and policies they promote, the Koch brothers seem to believe in an America where the system is rigged to benefit the very wealthy.

Remember that this is coming from the man who has somehow become a multi-multi-millionaire over a lifetime of only holding government jobs.

Contrast this with Charles Koch's actual words, parts of which could have come out of the mouth of an occupy Wall Street protester:

I think one of the biggest problems we have in the country is this rampant cronyism where all these large companies are into smash-and-grab, short-term profits, saying how do I get a regulation, or we don’t want to export natural gas because it’s one of our raw materials … Well, you say you believe in free markets, but by your actions you obviously don’t. You believe in cronyism.

And that’s true even at the local level. I mean, how does somebody get started if you have to pay $100,000 or $300,000 to get a medallion to drive a taxi cab? You have to go to school for two years to be a hairdresser. You name it, in every industry we have this. The successful companies try to keep the new entrants down. Now that’s great for a company like ours. We make more money that way because we have less competition and less innovation. But for the country as a whole, it’s horrible.

And for disadvantaged people trying to get started, it’s unconscionable in my view. I think it’s in our long-term interest, in every American’s long-term interest, to fight against this cronyism. As you all have heard me say, the role of business is to create products that make people’s lives better while using fewer resources to do it, and making more resources available to satisfy other needs.

When a company is not being guided by the products they make and what the customers need, but by how they can manipulate the system — getting regulations on their competitors, or mandates on using their products, or eliminating foreign competition — it just lowers the overall standard of living and hurts the disadvantaged the most.We end up with a two-tier system. Those that have, have welfare for the rich. The poor, OK, you have welfare, but you’ve condemned them to a lifetime of dependency and hopelessness.

Yeah, we want “hope and change,” but we want people to have the hope that they can advance on their own merits, rather than the hope that somebody gives them something. That’s better than starving to death, but that, I think, is going to wreck the country. Is it in our business interest? I think it’s in all our long-term interests. It’s not in our short-term interest. And it’s about making money honorably.

People should only profit to the extent they make other people’s lives better. You should profit because you created a better restaurant and people enjoyed going to it. You didn’t force them to go, you don’t have a mandate that you have to go to my restaurant on Tuesdays and Wednesdays or you go to prison. I mean, come on. You feel good about that?

Harry Reid's entire job is built on a foundation of cronyism.  Most of his re-election money comes from outside his home state of Nevada, from companies hoping to score political favors from him and from the power he weilds in the Senate.  If laws were proposed to thwart Congressional cronyism, say through reducing the power of Congress to pick winners and losers, who would fight such a law, Reid or Koch?

So much of government regulation boils down to the protection of politically connected incumbent competitors against new competition.  This is an astonishing example, sent in by a reader:

BEMIDJI, Minn. - Assistant House Majority Leader Frank Moe says people
who rent out their lakefront homes may be hurting the state's resort
industry.

The Bemidji DFLer has authored a bill ordering the
state's tourism agency to study whether the increased competition is
hurting resorts. It's now awaiting Governor Tim Pawlenty's signature.

If you are willing to make up your own bed, there are a lot of reasons why private home rentals are a more attractive vacation option than resorts, particularly when you consider the high price of those ancillary resort services.  Why the government needs to be involved in what is, to my eyes, just a normal consumer preference is beyond me.  This last line caught my eye:

The state's resort industry is struggling as lakefront property values
soar but the market restricts what they can charge for cabin rentals.

Uh, OK.  I have the same problem -- land for cabins and campgrounds in areas people want to spend the weekend is really expensive, labor costs are up, but rental rates remain low.  So what?  Through their preferences and how they translate to prices, consumers are saying that there is better uses for prime land than lakefront rental cabins.  I can accept that.

The Colorado faculty is going apeshit because the state has proposed making Bruce Benson, a Colorado oilman-Republican, who *gasp* only has a paltry BA degree, head of the University of Colorado system.  To a large extent, folks are going nuts largely because he has different politics than 97% of the faculty and because he has actually done something productive in his life.  However, not being able to say this out loud  (we're a government body so we are not supposed to have political tests, wink wink) his lack of an advanced degree has become the centerpiece of the opposition.

State House Majority Leader Alice Madden, a Democrat and CU law school
graduate, declared that Benson would be "the least educated president
ever considered in modern history."

Apparently, his academic record does not live up to University of Colorado standards, which has gleefully employed academic titans like Ward Churchill.  (By the way, isn't it interesting that these folks respect a couple of years at the age of 23 getting a masters in petroleum engineering more than 50 years of demonstrated excellence actually practicing petroleum engineering.)

But here is my advice to Mr. Benson:  Don't take the job.  Mr. Benson, in the private sector, you were probably used to having employees who didn't like you or think you were the best person for your job.  However, you knew that they could either be persuaded by demonstrated performance over time, or else you at least knew that people would work for your goals despite their dislike for you, since they knew that their success lay in the success of the organization as a whole.

University faculty do not behave this way.  They have a completely different set of incentives.  With a job for life, and knowing that no matter how bad the university gets, it will still get state support, they have absolutely no incentive to pull together for the good of the institution or, even less likely, for the well-being of the student body.  There are many exceptions to this; in fact, the exceptions may number more than 50% of the faculty.  But these exceptions do not drive faculty behavior.  Those that drive faculty behavior are the ones that are out for either self-aggrandizement or the promotions of symbols over performance or both. 

There once was a dean at Princeton University I liked and respected named Neil Rudenstine (actually he was Provost when I was there, but who the hell knows what a Provost is?).   Rudenstine was named President of Harvard, and was a good fundraiser (like Benson) and was very hands-off in his management style (as Benson promises to be).  Neil was a good man, but he was broken by the Harvard faculty, driven to what probably was literally a mental breakdown.  And then there was Larry Somers.  He was a very different type of man than Rudenstine -- tougher, more politically experienced.  But he too was broken by the Harvard faculty in an attempt to move that institution perhaps 1% of the way towards where you probably want to move Colorado. 

Don't do it. 

A lot of bad legislation has been passed to protect consumers from the "scourge" of monopoly.  The most common fear is that some company will lock up the market and then start raising prices.  This never happens in real life, because entry in most markets is far easier than most people imagine, particularly in modern America where there are so many accumulations of capital looking for a way to be spent.  In fact, the only time such price-gouging monopolies are ever sustainable is when they are backed by the coercive power of government.

The milk market, for decades one of the most egregious examples of government price-fixing for the benefit of producers over consumers, provides us with a perfect example of this phenomena:  A cartel charging too high of prices that is taken on by a maverick price-cutting outsider, who was on a path to success until the feds slapped him down.

In the summer of 2003, shoppers in Southern California began getting a break on the price of milk.

A
maverick dairyman named Hein Hettinga started bottling his own milk and
selling it for as much as 20 cents a gallon less than the competition,
exercising his right to work outside the rigid system that has
controlled U.S. milk production for almost 70 years. Soon the effects
were rippling through the state, helping to hold down retail prices at
supermarkets and warehouse stores.

That was when a coalition of giant milk companies and dairies, along
with their congressional allies, decided to crush Hettinga's
initiative. For three years, the milk lobby spent millions of dollars
on lobbying and campaign contributions and made deals with lawmakers,
including incoming Senate Majority Leader Harry M. Reid (D-Nev.).

Last
March, Congress passed a law reshaping the Western milk market and
essentially ending Hettinga's experiment -- all without a single
congressional hearing.

The most hilarious (or disgusting, depending on my mood) part is listening to the statements of other milk producers complaining about the new competition and price-cutting, something the rest of us in business face as a matter of routine, but from which the privileged few in the dairy business are shielded:

Hettinga's operation was "damaging to the marketplace," said Elvin
Hollon, director of economic analysis for Dairy Farmers of America.
"Nobody ever envisioned there would be such large handlers" outside the
pool.

"So," Hollon said, "the regulations had to change."

and this:

In an interview later, Nunes called the milk legislation a victory for
"every dairy farmer in America except those who were gaming the
system." He added, "People out there were making millions of dollars a
year off the backs of America's dairy farmers . . . that was a wrong
that was finally righted.

That last paragraph is so brazen you may not even get it ... he is referring to competitors that are charging lower prices.  They are "making millions of dollars off the backs of America's dairy farmers" the same way the Honda Civic made millions of dollars off the back of the Yugo.  Under the new law passed by the dairy industry's cronies, Hettinga can still operate like he has been, as long as he pays $400,000 each year to his competitors to make up for the fact that he is out-competing them.

I will say I probably would like this guy -- he is able to look on the bright side:

"I still think this is a great country," Hettinga said. "In Mexico, they would have just shot me."

Yeah, we're much better here.  The government only rapes rather than kills you.

The National Review has endorsed our own North Phoenix Congressman John Shadegg for the Speaker of the House.  I second the motion.  Though we don't always see eye-to-eye on some of the "social" issues, Shadegg is one of the few consistent voices for small government left in Congress.

Congressman John Shadegg
of Arizona has jumped into the House majority-leader race. He is a
decided underdog and is taking a personal risk by voluntarily giving up
his leadership slot as head of the Republican Policy Committee to
pursue the majority leadership. But fortune favors the bold, and so do
we. At a time of an ethical crisis, when the Republican majority often
seems to have lost direction, John Shadegg is the right man to clean
house and restore the GOP majority to its core principles. We endorse
John Shadegg for majority leader.

No one doubts Shadegg's talent or his principle. While all three
contenders have conservative voting records, Shadegg is a member of the
class of 1994 who never lost the conservative, reformist spirit of that
watershed year. He voted against No Child Left Behind, and, more
recently, against the prescription-drug bill. He has warm personal
relations with the conference's moderates, and is a fresh face at a
moment that cries out for one.

Update:  I am in full support of this statement:

We are bloggers with boatloads of opinions, and none of us come
close to agreeing with any other one of us all of the time. But we do
agree on this: The new leadership in the House of Representatives needs
to be thoroughly and transparently free of the taint of the Jack
Abramoff scandals, and beyond that, of undue influence of K Street.

We are not naive about lobbying, and we know it can and has in fact
advanced crucial issues and has often served to inform rather than
simply influence Members.

But we are certain that the public is disgusted with excess and with
privilege. We hope the Hastert-Dreier effort leads to sweeping reforms
including the end of subsidized travel and other obvious influence
operations. Just as importantly, we call for major changes to increase
openness, transparency and accountability in Congressional operations
and in the appropriations process.

As for the Republican leadership elections, we hope to see more
candidates who will support these goals, and we therefore welcome the
entry of Congressman John Shadegg to the race for Majority Leader. We
hope every Congressman who is committed to ethical and transparent
conduct supports a reform agenda and a reform candidate. And we hope
all would-be members of the leadership make themselves available to new
media to answer questions now and on a regular basis in the future.

Beyond this statement, I will say that until the government gets out of the game of distributing spoils, of sacrificing one group to the interests of the other, of taking from one person and giving to another, and of controlling how we as individuals make decisions in every aspect of our lives, corruption will never go away in government.  Some men will always be willing to bribe and cheat to use the government to get over on other men, and their victems will be forced to do the same to defend themselves.