Coyote Blog

There has been a lot written about "chaos" in UK government and financial markets since the Brexit vote, so much so there are supposedly folks who voted for Brexit who want a do-over.

A few thoughts:

• Short term changes in financial asset prices, like bank stock prices or currency futures, are largely irrelevant in the long-term.  The recent supposed "big drop" in US equities markets, for example, took the market all the way back to where it was in... March, barely 3 months ago.  You will see buying in these assets in the coming days and the drop of the last few days will be largely forgotten soon.   Financial markets don't react well to being surprised, but they will get over it.
• I don't see how the UK and the pound are necessarily weaker post-Brexit.  The US is fine.  The Swiss are fine.  Heck, the Swiss have to constantly fight to keep their currency lower.
• Unlike other EU nations, the majority of UK trade is with non-UK nations.  While trade with the EU will likely be on worse terms in the future (though the Swiss and Norwegians have pretty good deals), UK will be unshackled from the EU bureaucracy in negotiating new deals with the rest of the world.  If the US President had any vision whatsoever, he would already have offered the UK a free trade deal, rather than being petty and saying the UK goes to the back of the line for exiting a transnational body the US would never join itself.
• Much of the "chaos" in British government can be traced 100% to the anti-Brexit folks.  The Anti-Brexit folks very explicitly refused to craft any Brexit contingency plans, using threats of post-Brexit chaos to try to up the pressure against the Brexit vote.  President Obama did the exact same thing with Obamacare, refusing to create contingency plans if the SCOTUS overturned key parts of the ACA, hoping to ratchet up pressure against that outcome.  Had their been at least the outlines of a plan, they would be checking down it right now.  Things I would do as PM on the trade front:  1.  Demand the Swiss deal from the EU for Britain.  2.  Approach major trading partners with offers of free trade deals.  A British commonwealth free trade zone is a great idea.

I am speaking at an event this Friday in the Atlanta area held by the Dekalb Young Republicans called "Cutting the Red Tape: A Forum on Overbearing Government Regulations".   Even better than my presence, I will be sharing the stage with Don Boudreaux of George Mason University and Cafe Hayek.  Anyone who has read this site will know I link Don at least once a week so it will be fun to meet him in the flesh.  Here are the full details:

When:
Oct. 17th, 2014 at 7:30 PM

Where:

Atlanta Perimeter Marriott Center

246 Perimeter Center Pkwy NE, Atlanta, GA 30346

Free Parking

Again, it is open to anyone (as proven by the fact that I am neither young nor a Republican and they are letting me speak).

Folks who read this site know I have been critical of Phoenix light rail since well before it was opened.  So often, folks just willfully misinterpret my criticisms.   The actual rail line and its service is pretty nice, and the facilities are quite attractive (lets see what they look like in 10 years though).  If Santa Claus had just delivered the Phoenix light rail system for free to Phoenix, I would be thrilled with it.   But Santa unfortunately was not involved, and instead the rail line was paid for by area residents, and it cost them over $75,000 per daily roundtrip rider to build, plus annual operating deficits infinitely into the future.   I would be thrilled if an Aston Martin Vanquish showed up in my garage tomorrow, but I am not going to fork over a quarter of a million bucks for one.  Ditto the light rail system.

Anyway, the 2009 FTA transit database is out, and Randal O'Toole has helpfully summarized it in spreadsheet form, which you can download here.  You can peruse your own local system.  Probably the hardest thing to figure out are the mode codes, which are deciphered here.  Since 2009 was the first full year of operation for Phoenix light rail, we can finally look at data for Phoenix on an apples to oranges apples basis with other transit systems  (it is really, really hard to squeeze useful information out of the data Valley Metro posts on their site).

I am just going to highlight two numbers for Phoenix light rail (TRS_ID 9209 in the data).

• The public subsidy per individual trip (that is one person boarding and riding one way) is $32.73!!   No one would pay this amount if it were the fare.   This equates to a public subsidy (beyond the fares paid) of $3.82 per passenger mile.  Remember, this is not a hostile analysis, but based on the numbers Valley Metro itself submits to the FTA.   Note the IRS reimbursement rate for the total cost (capital and incremental expense) of driving a car is 50 cents per mile, which drops even lower per passenger mile when the car has more than one person in it.  The average occupancy of a car is something like 1.5, which would make the cost per passenger mile of the average car to be about 33 cents per mile.  Ignoring the passenger fares, the public subsidy alone for light rail in Phoenix is 11.6 times larger [note: and yes, this includes the gas tax, so it includes a lot of the maintenance of the road infrastructure.  To include full cost of maintaining and building highways, it might have to be a few cents higher, but its not going to come anywhere in the ballpark of the light rail number].
• But we are paying more for rail to save the environment, right?  Well, the BTUs expended per passenger mile for Phoenix light rail was 4402.  This compares to the average for passenger cars as determined by the DOE at 3437 BTU/PM.  So the train actually uses 28% more energy to move one rider one mile than does the average car.

Years before the light rail system was completed, I made my light rail bet:  That with the capital cost, I could easily buy a Prius for every daily rider, and still save money.  And for less than the annual operating subsidy, I could give all the new Prius owners free gas each year.  Already my bet has proved more than correct.  But now we know that under my Prius plan, we also would have saved energy, since the Prius uses less than 1700 BTU/pm, less than a third of what Phoenix light rail consumes.

I will be testifying in Pennsylvania in a hearing on public-private partnerships, with my 20 minutes on private parks management:

Tuesday, April 6th, 1:00 PM

Grove City College Hall of Arts and Letters, Sticht Auditorium

100 Campus Drive, Grove City

Topic:  Public Private Partnerships

Grove City Campus:   http://www.gcc.edu/Campus_Map.php

My presentation slides are here:  Keeping Parks Open with Private Management

On this blog, I have often felt the need to point out that correlation does not equal causation.  For example, if X increases at the same time Y increases, it is not necessarily true that X causes Y or Y causes X.  The correlation could be a coincidence, or it could be that both X and Y are related to a third variable Z that drives their movement.

Anyway, I see this mistake all the time.  What I did NOT expect to see was that someone would have to explain that non-correlation does not equal causation.  But that seems to be the wacky world that environmental science has descended into, via the Commons Blog:

EPA's new report "America's Children and the Environment" notes that
air pollution declined, but asthma prevalence continues to rise. One
possible conclusion from this is that air pollution is not actually a
cause of asthma. In fact, that's the most plausible conclusion. Every
pollutant we measure has been dropping for decades pretty much
everywhere, while asthma prevalence has been rising pretty much
everywhere. This is true throughout the entire western world, not just
the U.S. In fact, asthma incidence is highest in countries with the
lowest levels of air pollution. Asthma is rare in developing countries
with much more polluted air. Asthma incidence is simply unrelated to
air pollution. Asthma attacks are probably unrelated as well. But even
if air pollution can cause asthma attacks, it is a minor cause,
responsible for less than 1% of all asthma attacks.

Despite these two trends going in the opposite direction, environmental activists still insist that large increases in asthma rates are driven by pollution:

A report by E&E News
(subscription required) makes it clear that what's in EPA health
reports doesn't actually matter. The story opens with "While the number
of children living in areas violating ozone and particulate matter (PM)
standards has declined in recent years, adolescent asthma that results
from exposure to such pollutants continues to rise, according to new
U.S. EPA statistics." The journalistic goal is to raise health alarms,
whether warranted or not. Thus, the news story itself says air
pollution, the presumptive cause of asthma, went down and yet asthma
prevalence went up. However, the reporter claims air pollution is
responsible for rising asthma just the same.

Wow.  These guys could be the poster-children for refusing to adjust their beliefs in the face of actual facts.  They even acknowledge that pollution and asthma are going in opposite directions and still they insist on their causation theory.

Postscript:  I am willing to believe, maybe, that there is some unknown, unmeasured and unregulated pollutant out there that is increasing and is causing increases in asthma.  However, that is not the argument these folks are making - they are using asthma increases to lobby for tougher standards on known pollutants.

Update:  The best guess I have for the increase in asthma in this country, and the strong positive correlation between asthma and economic development, is that it has something to do with indoor pollution.  The spike in asthma cases seems to parallel the rise in energy prices.  Beginning in the 1970's, we began sealing up houses tighter and tighter to conserve energy.  Increasing penetration of air conditioning simultaneously caused people to close the windows.  I am convinced its something inside, not outside.

Having grown up in Texas, I love this:  Their city underwater and possibly joining Atlantis for eternity, the Superdome looking like the Kingdome, the newspapers flooded out of their offices, with no power and no printing presses, probably operating out of a Motel 6 somewhere, the New Orleans Times-Picayune still has time to address life's essentials -- How ARE the Saints going to stop the run this year? (posted at 8:50 PM Tuesday)

One of the major on-field concerns for the Saints is to figure out how
to stop the run. Off the field reports of major flooding back home
occupied the thoughts of many of the Saints players Tuesday in the
second day of practice at San Jose State.

Going into Thursday's preseason finale against the Oakland Raiders, the
Saints have allowed a whopping 535 yards on the ground in the first
three exhibitions with a staggering 6.7 yards per carry for opponents.

You may have to scroll down a few posts, I am not sure their permalinks are working right.