Posts tagged ‘TJIC’

Barf

The average federal worker now makes over twice the wages and benefits of the average private worker
Edwards_fed

Maybe they have some sort of incentive plan, receiving a percentage of the value they have personally destroyed.  Because sure as hell none of them are producing anything.  If the Democrats want to fight income inequality and take on excessive compensation that is set without oversight, I might suggest beginning with the federal government. 

Postscript: TJIC has pointed out that he and I, though we tend to agree, often express ourselves differently.  Here is my prediction of TJIC's response to this article:  "We going to need a lot more rope."  How's that, Travis?

Lord of the Bad Plan

TJIC points to more poor decision-making by LOTR characters.  I can't take these criticisms seriously after seeing the Lord of all ring-plan critiques here:

Lileks, Power Tools, Movies. What More Could You Want?

One of my favorite bloggers, TJIC, also runs a business called SmartFlix
which has an enormous collection of instructional videos, from crafts
to outdoors to home improvement, all for rent.  Most of these niche
videos are incredibly helpful, but are almost impossible to find
anywhere else.

Anyway, TJIC apparently wrote James Lileks, a really fun-to-read columnist and author, with the following come-on:

We send you a video.  You watch it, or watch 10 minutes of it, or don't watch it at all.

Then you write something, which might be a review, or might
barely mention the video at all. For example, a short review on a video
that instructs one on how to play pool might mention the fact that you
watched 10 minutes of the video, and then segue onto a story about you
playing pool 15 years ago with The Giant Swede"¦

In short, I propose a business relationship where you do whatever the heck you want to.

Anyway, Lilek's first column is up.

BMOC Continues to Be Precient

Previously, I posted how my book BMOC foresaw a new business model in giving product placements to the most popular high school kids as opinion leaders who would drive adoption by their fellow teens.

This week, TJIC points out that the New York Times is starting to sniff around another business model in the book, that of fountain coin harvesting.  They are starting to see the market:

In all these babbling places, the story is the same: Coins pile up, Mr.
Mendez removes them and people's fascination with tossing pocket change
into water continues, unexplained"¦

But miss the real business model (from the book):

On
the basis of this market research and his quirky insight, Preston Marsh founded
3Coins, Inc, and began an intensive six month research and development
program. He hired engineers from several
hot tub and spa companies that had developed the modular spa, a design where
all the necessary pumps and plumbing were integrated with the tub into a single
portable unit. His designers worked long
weeks coming up with three modular fountain designs, driving down the estimated
manufacturing cost to just $350 per unit. 

Next,
Preston Marsh took these fountain designs to mall owners, architects, building
managers, landscapers and anyone who designed or owned public spaces. In every case, the deal was the same: Preston Marsh would give the client one or
more free fountains to adorn their public spaces, and would even provide the
labor to clean and treat the fountains once a week. In return, Preston Marsh literally "kept the
change". Preston Marsh paid local
entrepreneurs 25% of the change drop to clean the fountains and empty and
deposit the change. The rest was pure
profit.

The
resulting economics were startling. For
each installation, Preston Marsh had up-front investments of about $750,
including the $350 tub plus delivery and installation. In return, Preston Marsh gained about $50 a
week in revenue, or $37.50 after the servicing agent took his 25%. Over a year, the fountain would produce
$1,950 in revenue, with virtually no expenses or overhead. 

After
five years, 3Coins had nearly 10,000 fountains in place, generating almost $20
million in annual revenue, over half of which was profit. And Preston Marsh owned 100% of the company.

You can still buy BMOC at Amazon, which has had a bit of a sales resurgence of late after a couple of press mentions.   Servers are standing by.

 

BMOC Continues to Be Precient

Previously, I posted how my book BMOC foresaw a new business model in giving product placements to the most popular high school kids as opinion leaders who would drive adoption by their fellow teens.

This week, TJIC points out that the New York Times is starting to sniff around another business model in the book, that of fountain coin harvesting.  They are starting to see the market:

In all these babbling places, the story is the same: Coins pile up, Mr.
Mendez removes them and people's fascination with tossing pocket change
into water continues, unexplained"¦

But miss the real business model (from the book):

On
the basis of this market research and his quirky insight, Preston Marsh founded
3Coins, Inc, and began an intensive six month research and development
program. He hired engineers from several
hot tub and spa companies that had developed the modular spa, a design where
all the necessary pumps and plumbing were integrated with the tub into a single
portable unit. His designers worked long
weeks coming up with three modular fountain designs, driving down the estimated
manufacturing cost to just $350 per unit. 

Next,
Preston Marsh took these fountain designs to mall owners, architects, building
managers, landscapers and anyone who designed or owned public spaces. In every case, the deal was the same: Preston Marsh would give the client one or
more free fountains to adorn their public spaces, and would even provide the
labor to clean and treat the fountains once a week. In return, Preston Marsh literally "kept the
change". Preston Marsh paid local
entrepreneurs 25% of the change drop to clean the fountains and empty and
deposit the change. The rest was pure
profit.

The
resulting economics were startling. For
each installation, Preston Marsh had up-front investments of about $750,
including the $350 tub plus delivery and installation. In return, Preston Marsh gained about $50 a
week in revenue, or $37.50 after the servicing agent took his 25%. Over a year, the fountain would produce
$1,950 in revenue, with virtually no expenses or overhead. 

After
five years, 3Coins had nearly 10,000 fountains in place, generating almost $20
million in annual revenue, over half of which was profit. And Preston Marsh owned 100% of the company.

You can still buy BMOC at Amazon, which has had a bit of a sales resurgence of late after a couple of press mentions.   Servers are standing by.

 

Nice Work!

TJIC finished putting in his own cabinetry, and it looks awesome.  Clearly, this is the guy my wife thought she was marrying.

B-List?

TJIC, who really is a terrific up and coming libertarian-ish blogger, writes:

But in the short term, I'd like to thank the three B-list bloggers
who have so kindly linked to this humble Z-list blog multiple times:

B-list?  I guess I will accept that, as long as I can be in the same category as one of my favorite actresses, queen of the B-movies Sybil Danning.  I am also consoled that just after Sports Illustrated called Mark O'Meara the "king of the B's", he proceeded to win two majors in the same year.

Those Dang Illegal Immigrants Taking All of Our Jobs

Via TJIC and Mark Perry come this excellent observation:

State unemployment rates for April were released last week by the
BLS, and there are now 18 states that have set historical record-low
jobless rates in the last year

Here are the 18 states with historical record-low jobless rates"¦

"¦California: 4.7% in November 2006
"¦Arizona: 3.9% in March 2007
"¦New Mexico: 3.5% in February 2007
"¦Texas: 4.2% in April 2007"¦

I wonder where our economy would be without those 15 million Mexican immigrants.  Negative unemployment?

Introducing Obama to Capitalism

Via TJIC:

In his commencement speech at Southern New Hampshire University
this morning, Obama - like most commencement speakers - delivered a
call to public service; unlike many, however, he also warned against
the charms of doing what most college graduates set out to do: Make
money.

"In a few minutes, you can take your diploma, walk off this
stage and go chasing after the big house and the large salary and the
nice suits and all the other things that our money culture says you
should buy.

"But I hope you don't. Focusing your life solely on making a
buck shows a poverty of ambition. It asks too little of yourself. And
it will leave you unfulfilled," he told the crowd.

This statement would certainly be true in 18th century European monarchies, in Soviet Russia, in third world Kleptocracies, in Cuba, and in Chavez's Venezuela.  Because making money in these environments is a zero-sum game, and the only way to get rich is to loot it from some poor schmuck who is actually creating the value.

But here in America, we (mostly) have this cool system called capitalism.  In capitalism, all interactions are based on the voluntary self-interest of the parties involved.  This means that one only can "make a buck" by doing something or making something that is of value to another person.  And only by successfully serving the needs of a LOT of people does one get really rich. 

TJIC's conclusion is wonderful:

Far better that they spend their life

  • majoring in political "science"
  • working for a meaningless non-profit
  • trying to register more people to vote so that the negative-sum game of politics can have more credibility
  • helping political partisans redrawn electoral district boundaries in the same negative-sum game of politics
  • being a senator, pushing for more regulations and tax increases

That, clearly, is a fulfilling life.

Let the suckers create value.

The best and brightest should just steal it, and move it around
(while taking some portion of it for themselves, and destroying another
portion of it).

Beware of people who try to demonstrate how much they "care" using other peoples' money.

How NOT to Choose a Copyright Attorney

Absolutely hilarious interaction between TJIC and an attorney looking for class actions in all the wrong places.  Extra marks for gratuitous Conan reference. 

And while we are on the subject of class actions, note this case in Overlawyered  where the class itself received a sum total (not average per person, but cumulative total) of $2,402 while their lawyers received $1,000,000.  Once a useful tool for redressing fraudulent behavior, class actions now have become primarily either 1) a profit-making-through-extortion tool for lawyers or 2) a way to legislate without actually going to the legislature. 

Income Inequality and Game Theory

Consider this situation:  You are a member of a four-person rock band.  Each member of the band has contributed somewhat equally over time, and band revenues have always been split evenly, 25% to each member, though its total earnings on an absolute basis have been small  However, the band has suddenly become the next U2.  It is likely the band will make tens of millions of dollars over the coming years.  Just as this is happening, the other three band members come to you and threaten to make you Pete Best.  They will allow you to stay with the band, but only if you accept a reduction in your share of the earnings to 10%.  You perceive this move as unfair given your equal contribution to the band to date.  However, even 10% of the band's new fortunes would be a LOT of money (and fame) and you honestly believe that even a 10% share is better than you could do with any other band or occupation.  What do you do -- take 10% or quit?  (assume you want to be famous and you have no legal recourse against the other members)

In an analytical vacuum, one might predict that any rational person would take the deal -- while it is less than might be hoped, it is certainly a better deal than one could get any place else.  A pure profit maximizing decision would be to stay with the band (and watch you back at night for more knives).

However, numerous studies and surveys have shown that in fact, a  large number of people would choose to give up the money rather than feel cheated.  Just look at the number of professional football players who have held out for a whole season to try to get a better contract.  In every case, the present value of the salary lost for that season is far greater than any increase in salary in the future from taking the tough stand.  But these players would rather be paid nothing than feel underpaid.

TJIC had a pointer to an interesting article on game theory.  In it, the author talks about this behavior in the context of a game that divides up pies, and summarizes:

Apparently, making money is not the players' only concern; participants have a sense of pride and care about how they are treated by others, economists have concluded. Thus, offers perceived to be "unfair" are rejected out of a desire for revenge.

In fact, revenge and/or envy has been tested in a number of games, where scientists gave players trailing in the game the ability to spend money solely to take away money from the leading players  (e.g. you can spend your last $10 to make $10 of your opponents money disappear).  There is something in human behavior that wants to bring down the winners, even when doing so makes one worse off himself.  (Question to Red Sox fans:  would you accept a lifetime bad of the Sox from the World Series if you were guaranteed the Yankees would never make the World Series either?)

I guess I don't really have a problem with such behavior in consensual transactions (though I personally work pretty hard to purge my ego from business decisions).  My problem comes when people motivated in this way vote in our society that has proven to have inadequate protections of the minority, at least when we refer to the minority of rich and successful

In Closing of the American Mind,  Allan Bloom tells the story of a question he used to ask his classes vis a vis income inequality.  He would ask something like "Would you vote for a law that reduced income inequality but at the same time reduced total wealth, such that the poor might get a larger slice of a smaller pie, and might even be worse off on an absolute basis afterwards."  Apparently, he would get solid majorities for "yes" and in fact I have been in classes where this same question was asked and at least 40% said "yes."  This is a situation a bit similar to the one above, but without it being personal.  In other words, no one has explicitly hosed you, they have just done better.

I hope you can see the parallel.  Large numbers of people are willing to pay (or equivalently make less money) to reduce the earnings of people who are wealthy and/or successful. They are even  more willing to do so if they think that they have been treated unfairly.  Which is why you see so many politicians and media outlets working so hard right now to convince the middle class that current income distribution patterns are somehow "unfair."  Politicians are pandering to this base human emotion, the desire to spitefully bring someone else down (in the case of income equality laws, someone the person has likely never even met or transacted with) even if it makes oneself worse off.   

I can understand why Pete Best might harbor a grudge against the Beatles.  But why do so many Americans harbor a grudge against people they have never met, just because they make more money?

We Know How You Should Be Living

TJIC has a nice post on the arrogant paternalism inherent in urban planning.

The Party is making decisions about how we should live, and then, eventually, telling us about them.

The aim is to have 80 percent of new housing and new jobs in cities
and larger municipal centers such as Framingham, Peabody, Norwood, and
Marlborough. That would enable more people to walk or use mass transit
and thereby reduce traffic and pollution, according to the plan.

So, of the million possible variables, the ones they've chosen to
optimize are the minimization of the average distance one has to drive
to get to work.

Things they have implicitly then de-prioritized:

  • open space per family
  • privacy per family
  • floor space per family
  • minimal overall commute time per individual
  • noise abatement
  • etc.

I liked this bit:

The problem is, the statists don't really care about green space per
se. They care about government owned (or at least government
controlled) green space. Which is better? 20 acres of land lumped into
a government owned wetland sanctuary that no one ever visits, or 20
houses, each on 1 acre lots, covered with gardens, yards, trees, and
tree-houses? The government employee doesn't get to meddle in the
individual lots, so he's always going to say that the government owned
patch is better.

What the Hell Is the Difference?

TJIC has a great response to an article describing how Nigerian politicians take money from the oil industry and use it as payments to 10% or so of the voters in order to get re-elected in perpetuity.  He says:

The difference between corrupt Nigerian democracy and glorious American
democracy is that (a) OUR government does not steal oil money, it
steals money from all sorts of industries; (b) closer to 50% of the
populace gets bought off with the loot.

What the hell is the difference, really, except we do it up front, within the "law", while Nigerians do it under the table.  Based on this, I would add a third difference to TJIC's two:  (c) at least the Nigerians treat the behavior as wrong and do it under the table -- our politicians are right up front about it.

Proletarianizing the Middle Class

I have been reading and studying Karl Marx in the last week as a part of a European History course I am taking that focuses on the 19th century.  In the context of Marx, it was interesting reading the NY Times recent article on income inequality (the newspaper is not comfortable unless it has visited this topic at least once every week or so).  You might think that I would latch onto this quote from the Times (HT: TJIC)

The top 0.1 percent of earners"¦ now brings in 11 percent of the
nation's total income, triple the share that they did just a generation
ago.

And indeed, I have written on the implied zero-sum fallacy any number of times, including just yesterday.  Implied in this one sentence from the Times is what I call the "bubbling spring" theory of wealth, where wealth and income just sort of magically appear, like a spring out of the ground, and the rich are all those piggy people up front taking more than their fair share of the water.  Of course this is ludicrous, because it implies that if the wealthy made less money, then the poor would make more.  In fact, the reality is that if the wealthy made less money, then the nation's total income would be lower.

But this is not what caught my attention.  What was new to me in my recent study of Marx was his writing on the tactics of socialist revolution.  Specifically, he spent a lot of time talking about the need to "proletarianize the middle class."  He knew that to have a successful socialist revolution, the middle class had to be made to feel marginalized and put upon by the system.  If he had lived long enough, he would have said that socialist revolution failed to occur in countries like Britain because the middle class became too large and too successful.

In this context, then, I found this quote from the Times most interesting:

There is now a big push in both Washington and state capitals to come
up with policies that can alleviate middle-class anxiety.

The author himself editorializes:

There is now a big push in both Washington and state capitals to come
up with policies that can alleviate middle-class anxiety. That's all
for the good. In fact, it is overdue.

What middle class anxiety?  The middle class is doing better than ever, except that there has been a concentrated media campaign by the Times and others, abetted by various politicians on the left, to try to make the middle class feel anxious and marginalized.  To the author's credit, he observes that while "Layoffs seem to happen more frequently than they once did," the actual evidence for increased volatility is really not there:

Only later do you come to the surprising part: there is the same
amount of variability now that there was in the 1980s and 1990s. In
journalism, this is known as burying the lead.

"Intuitively, you would think volatility is increasing," said Senator Charles E. Schumer, Democrat of New York, who along with Senator Jim Webb
of Virginia requested that the study be done. "But it isn't, which I
guess shows that the American economy has always been very flexible."

What the author does not explain is, if the increase in volatility is not real, then why do so many people believe it to be true?  The answer, of course, is that his employer, among others, have been pushing a PR campaign for years to convince the middle class that their lot sucks.  Why?  Well, read your Marx.

A Nation of Slaveholders

With the northern victory in the Civil War, and the subsequent passage of the 13th amendment, slavery was formally ended in this country.  Specifically, the 13th amendment stated:

Neither slavery nor involuntary servitude, except as a punishment for
crime whereof the party shall have been duly convicted, shall exist
within the United States, or any place subject to their jurisdiction.

Unfortunately, over a century later, slavery has returned to the United States.  Today, through the exercise of political power and the redistribution of wealth that should never have been Constitutional, 55% of Americans hold the other 45% in bondage, living off the product of their efforts just as surely as the white plantation owners of the Old South lived off the sweat of their African slaves.  The basis for this new servitude, however,  is not race, or religion, or national origin, but productivity. (via TJIC)

From the Christian Science Monitor:

Slightly over half of all Americans - 52.6 percent - now receive
significant income from government programs, according to an analysis
by Gary Shilling, an economist in Springfield, N.J. That's up from 49.4
percent in 2000 and far above the 28.3 percent of Americans in 1950. If
the trend continues, the percentage could rise within ten years to pass
55 percent, where it stood in 1980 on the eve of President's Reagan's
move to scale back the size of government.

Meanwhile, Ari Fleischer writes in today's WSJ (sub req) that the
top 1% of income earners pay 37% of total income taxes, the top 10% of
income earners pay 71% of total income taxes, and the top 40% of income
earners pay 99% of total income taxes.

The latter analysis is a bit off because it does not include payroll taxes, but if you include these taxes you still have under 50% of Americans paying virtually all the taxes (table at top of this page includes payroll taxes

The second greatest failing of the Constitution as originally drafted (the first being legality of slavery) is the lack of clear protections for property and commerce.  As a result, the only protection we have against full confiscation of everything we own is the whim of the electorate.  Now that a clear majority of voters are on the receiving end of money confiscated from a minority of voters, how good is this last protection? 

We have become a nation of slaveholders, with the majority holding the productive minority in bondage.  Inserting government in the middle of this process as an agent, so the recipients of this slave labor don't have to get their own hands dirty, does not change the nature of the relationship one bit.  It just pretties things up for our conscience.

Update:  Is the word "slavery" over the top?  Maybe, and I guess I could be accused of trivializing the true horrors of African slavery in the 19th century.  So substitute the word "serfdom" for "slavery". 

I Didn't Get the Memo

John Tamny in TCS Daily:

In a recent Los Angeles Times op-ed, "Overselling Capitalism,"
University of Maryland Professor Benjamin Barber wrote of the "crisis"
in the capitalist mindset, where the "'Protestant ethos' of hard work
and deferred gratification has been replaced by an infantilist ethos of
easy credit and impulsive consumption that puts democracy and the
market system at risk."

Wow, I must not have gotten the memo.  Here I have been plugging negative numbers into my 1040 for three or four years in an attempt to build a business and some future wealth, and it turns out that deferred gratification is out of style.   (TJIC also did not get the memo)

Here is a big reality check for professor Barber:  The fact that a few mortgage companies got overly generous in extending mortgage credit does not mean that the work ethic and entrepreneurship is dead.  In fact, they are virtually unrelated topics.  If the price of something is reduced, more is going to be consumed.  Suppliers of credit reduced the price of credit, too far as it turned out to make a profit, and more was consumed.  This does not represent so tragic change in the human makeup, it is just supply and demand at work, like normal, and some bad business judgement. 

In fact, I can't get over the class-based condescension that seems to fill every nook and cranny of the commentary on the mortgage bubble bursting.  When in the late 1990's, rich VC's provided too much money too cheaply to yuppies running Internet companies, I don't remember anyone lamenting a shift in human motivation or a failure of capitalism.  But when banks provided too much capital too cheaply to lower income people for home mortgages, suddenly all those lower-income people are representative of the failure of capitalism and the work ethic.

Quick, Check the Thermostat

Al Gore says that current global temperatures are the highest they have been in 1000 years.  A new study by the Institute of Astronomy in Zurich says that the "sun is more active now than it has been at anytime in the previous 1,000 years."  Related? 

Sunspots have been monitored on the Sun since 1610,
shortly after the invention of the telescope. They provide the
longest-running direct measurement of our star's activity.

The variation in sunspot numbers has revealed the Sun's 11-year cycle of activity as well as other, longer-term changes.

In particular, it has been noted that between about 1645 and 1715, few sunspots were seen on the Sun's surface.

This period is called the Maunder Minimum after the English astronomer who studied it.

It coincided with a spell of prolonged cold weather
often referred to as the "Little Ice Age". Solar scientists strongly
suspect there is a link between the two events - but the exact
mechanism remains elusive....

But the most striking feature, he says, is that
looking at the past 1,150 years the Sun has never been as active as it
has been during the past 60 years.

Over the past few hundred years, there has been a steady
increase in the numbers of sunspots, a trend that has accelerated in
the past century, just at the time when the Earth has been getting
warmer.

The data suggests that changing solar activity is influencing in some way the global climate causing the world to get warmer.

Of course, these poor scientists know that they could lose their jobs and be called Holocaust deniers if they don't acknowledge anthropomorphic global warming, so they do say:

Over the past 20 years, however, the number of
sunspots has remained roughly constant, yet the average temperature of
the Earth has continued to increase.

This is put down to a human-produced greenhouse effect caused by the combustion of fossil fuels.             (HT:  TJIC)

Which may actually be the case, but it is interesting that astronomers feel the need to say this without any evidence of such in their own study just to protect themselves from ostracism by the climate religionists.

However, even if the two are working in concert, the fact that solar activity explains some of the 20th century warming means that current climate models are WAY overestimating the impact of anthropomorphic warming. 

For example, the climate models in the current 2007 IPCC report assume that the world would have experienced no warming in the 20th century without man.  This is from Section 8, actual is the black line, the models without man are in blue, the models with man are in red:

Ipcc1

In other words, the IPCC models completely ignore the increasing solar activity and assume 100% of 20th century warming was due to man-made effects, even the substantial warming before 1940 (and before the onset of truly heavy world-wide fossil fuel use).

Already, the models used by the IPCC tend to overestimate past warming even if all past warming is attributable to anthropomorphic causes.  If anthropomorphic effects explain only a fraction of past warming, then the current models are vastly overstated, good for stampeding the populous into otherwise unpopular political control over the economy, but of diminished scientific value.

Postscript: I cannot prove this, but I am willing to make a bet based on my long, long history of modeling (computers, not fashion).  My guess is that the blue band, representing climate without man-made effects, was not based on any real science but was instead a plug.  In other words, they took their models and actual temperatures and then said "what would the climate without man have to look like for our models to be correct."  There are at least four reasons I strongly suspect this to be true:

  1. Every computer modeler in history has tried this trick to make their models of the future seem more credible.  I don't think the climate guys are immune.
  2. There is no way their models, with our current state of knowledge about the climate, match reality that well. 
  3. The first time they ran their models vs. history, they did not match at all.  This current close match is the result of a bunch of tweaking that has little impact on the model's predictive ability but forces it to match history better.  For example, early runs had the forecast run right up from the 1940 peak to temperatures way above what we see today.
  4. The blue line totally ignores any of our other understandings about the changing climate, including the changing intensity of the sun.  It is conveniently exactly what is necessary to make the pink line match history.  In fact, against all evidence, note the blue band falls over the century.  This is because the models were pushing the temperature up faster than we have seen it rise historically, so the modelers needed a negative plug to make the numbers look nice.

Statistical Insanity

Congrats to Peter Austin for making a great point about medical research, particularly the advocacy-driven risk research we see in the media every day:

PEOPLE born under the astrological sign of Leo are 15% more likely
to be admitted to hospital with gastric bleeding than those born under
the other 11 signs. Sagittarians are 38% more likely than others to
land up there because of a broken arm. Those are the conclusions that
many medical researchers would be forced to make from a set of data
presented to the American Association for the Advancement of Science by
Peter Austin of the Institute for Clinical Evaluative Sciences in
Toronto. At least, they would be forced to draw them if they applied
the lax statistical methods of their own work to the records of
hospital admissions in Ontario, Canada, used by Dr Austin.

Dr Austin, of course, does not draw those conclusions. His point was
to shock medical researchers into using better statistics, because the
ones they routinely employ today run the risk of identifying
relationships when, in fact, there are none. He also wanted to explain
why so many health claims that look important when they are first made
are not substantiated in later studies.

Thanks again to TJIC for the link

Time for Francisco d'Anconia

Update from Venezuela:

Even Chavez's own energy officials are getting nervous "¦

Last week, for the 10th time, Chavez announced his plan to
confiscate four Orinoco Belt extra-heavy-oil projects run by six
Western companies"¦

Rather than allow Chavez's state oil company to become the
majority partner in its investment, Exxon could"¦ just walk away - a
possibility that's keeping Venezuelan energy officials up at night.

Rather than let its Cerro Negro operation be turned into a
Chavista workers collective, with Exxon there to pay the bills and
provide the technology and its workers suddenly state employees, Exxon
could just pull out"¦

Courtesy of TJIC, who suggests a similar approach but from a different fiction source.

Legislating Taste

TJIC has a good example of relying on the government to legislate taste.

More than 30 years after outlawing big flashing signs"¦
Boston wants to bring back some glitz to parts of town deemed too dark
and staid at night.

It's a good thing we've got a single monopolistic authority making aesthetic decisions for everyone.

Saying it wants colorful electronic marquees to create an
atmosphere like Times Square in New York, the Boston Redevelopment
Authority is planning to amend the city's zoning code to permit
electronic signs that make "bold use of graphics" and create a sense of
"animation and motion" and "images that engage the public."

So, basically, the rationale 30 years ago was "some bureaucrat
finds these tacky, so they're forbidden", and now the rationale is
"some bureaucrat likes these, so they're encouraged".

This from the city of Boston, whose government's sense of aesthetics dropped this butt-ugly eyesore of a city hall into the middle of historic downtown Boston:

Govcenter

And, in case you are one who supports government "redevelopment" and mandates on aesthetics but think that it would all work out fine if architectural experts and committees of academics made the decisions, here is the hideous Peabody Terrace at Harvard University, presumably vetted by the finest architectural academic minds in the country:

Peabody

These buildings, where Harvard stuck me for a full year, were transported right out of East Berlin, right down to the elevators that only stopped on every third floor for efficiency sake (efficiency of the builder, obviously, not the occupant).  The interior walls were bare cast concrete and no amount of heat could warm them in the winter.  It was the most depressing place, bar none, I have every lived.  But the "experts" loved them, and wished that this vision could have been forced by urban planners on all of America:

Leland Cott, an adjunct professor of
urban design at the [Harvard] GSD, calls Peabody Terrace 'a model of design
efficiency, economy, and attention to scale.'

Fortunately, someone gets it:

The magazine Architecture Boston has focused attention on the
controversial aspects of Sert's work by devoting its July/August 2003
issue to an examination of Peabody Terrace, expressing the essential
disagreement about the work in the form of a stark conundrum:
"Architects love Peabody Terrace. The public hates it."

In fact, the public's hostility to the structures may be in
proportion to its degree of proximity, with the most intense feelings
confined to those households on the front lines of the town/gown divide....

Otile McManus, in a companion essay, discusses the reactions of many
Cambridge residents, who have described the complex as "monstrous,"
"cold," "uninviting," "overwhelming," and "hostile," and have compared
it to Soviet housing.

Actually, the most intense feeling were by those who lived there, who really, really hated it  (though I will admit there were several third world students who loved it -- must have been nostalgic for them).  The article goes on to accuse detractors of being anti-modernist.  Which is a laugh, since my house is one of the most starkly modern in the area, so modern I could not sell it several years ago.  I am not anti-modern.  I am anti-bad-design.

Wow!  I am kindof amazed at the hostility I still feel fifteen years after the fact.  I had started out just to link TJIC's post, and here I am in full-blown rant mode.  Sorry.

Each Day, A little Bit Harder

Every day, the government makes it a little bit harder to run a business.  Today's water drop in the ongoing Chinese water torture comes from TJIC up in Massachusetts

Governor Deval Patrick, returning to one of the more contentious
issues of his campaign, has begun quietly putting together a plan to
limit employers' access to the criminal records of potential employees.

Aides have been meeting with lawmakers and advocates working
to limit the scope of the Criminal Offender Record Information law,
which gives many employers broad access to criminal records. Activists
argue that many applicants are rejected for jobs based on minor
criminal convictions, crimes unrelated to the post"¦

Somehow, they are going to do this:

Patrick has not yet settled on specific legislation, an aide said, but
wants to give employers access only to criminal information that is
relevant to the job being sought.

Let me ask you readers a question:  If a company hires an employee with a criminal background who then does harm to someone (say a customer or another employee) in the workplace, who get's sued:

  1. The employee, who is held individually responsible for his own actions
  2. The employer, who hired the employee in good faith but was not able to get a reference (because lawsuits have pretty much ended the practice of giving honest information about ex-employees) and was not able to do a background check (because the government would no longer share criminal records)

If you answered "1", then you either have been in cryogenic sleep for 30 years or you have never run a business.  No hope, I suppose, of tying liability protection for employers to this legislation, I guess.

By the way, the 800 pound gorilla in the room is the war on drugs.  I am sure the concern here is that more and more white collar workers are saddled with petty drug convictions that are hurting their ability to get jobs.  I would have not problem wiping all the drug possession offenses off the record, particularly since I don't think these possession offenses should be crimes anyway.

Update: From the indispensable Overlawyered.com

Licensing Death Spiral

Frequent readers will remember that licensing is one of my big pet peaves, so it will not surpise anyone that I enjoyed TJIC's article on the licensing "cycle of suck"

Here's the cycle of suck:

  1. a guild of professionals decides to drive up their wages by limiting the supply through accreditation
  2. to put teeth in the accreditation, they complain to the politicians
  3. politicians see a chance to scratch a back (and get theirs
    scratched in turn) and pass regulations limiting the practice of the
    profession by the non-accredited
  4. the price rises and the supply drops
  5. marginal consumers can't afford the price
  6. politicians see a chance to scratch a back (and get theirs
    scratched in turn) and use taxpayer dollars to increase the supply of a
    service"¦but just to a target consumer group

Hair braiding or delivering cows, its all the same phenomena.  As usual, I can't make a post on licensing without a quote from Milton Friedman:

The justification offered is always the same: to protect the consumer. However, the reason
is demonstrated by observing who lobbies at the state legislature for
the imposition or strengthening of licensure. The lobbyists are
invariably representatives of the occupation in question rather than of
the customers. True enough, plumbers presumably know better than anyone
else what their customers need to be protected against. However, it is
hard to regard altruistic concern for their customers as the primary
motive behind their determined efforts to get legal power to decide who
may be a plumber.

More of my posts on this topic indexed here.

Culver City Adopts Chinese Model of Internet Access

TJIC has a great link to a new law blog called CopyOwner focused no free speech issues.  CopyOwner observes that Culver City, California appears to be emulating the Chinese Internet model, providing access for free, but only if you accept state censoring:

First, they offer Internet access, but you must agree to "limited"
Internet access. And they don't mean limited hours of the day, limited
locations, or a limited amount of time you can be on. No, when they say
"limited," they mean that they will censor access to parts of the
Internet. ("By using this free wireless network you are agreeing and
acknowledging you have read and accepted these terms and conditions of
use, and this wireless network provides only limited access to the
Internet.") In other words, they do not offer Internet access at all....

Second, in order to gain the right to enjoy
this free, public, non-Internet access, no matter what you read in the
Bill of Rights (and the First Amendment, in particular) you must agree
that the government may abridge your freedom of speech and you further
agree that when it does so (as it promises to do), you will not
exercise your right to sue for the violation of your First Amendment
rights!

I'm not making this up. Here's the fine print:
"Further, [by using it] you are agreeing to waive any claims,
including, but not limited to First Amendment claims, that may arise
from the City and Agency's decision to block access to "¦ matter and
websites [of its choosing] through this free wireless network "¦."

From
a legal standpoint, it is the same as if the Culver City public library
were offering you free access to newspapers, but was first clipping out
the articles it didn't like and making you agree not to sue for
censorship if you wanted to read what was left.

My thought at first was that this was a liability response, but my sense is that the courts have been pretty consistent in protecting ISPs when plaintiff lawyers try to drag them in as deep pockets into lawsuits  (e.g. trying to sue Earthlink because it was the medium for delivering a MySpace page which in turn allegedly facilitated some action someone is suing over).  I am left with the sense that this is just politicians trying to protect themselves from criticism.  I am almost tempted to see how this thing plays out - censorship really gets ugly in a democratic environment.  You end up with a million interest groups all lobbying that they know best what should be censored.  You would have people in the town office arguing for censorship of pornography, religion (both pro and con), evolution (pro and con), nazis, Israel, global warming skepticism.  Whatever.  (By the way, I have seen people arguing in some context for censoring every item in the preceding list)

Biofuel Stupidity

From the department of absolutely predictable unintended consequences, "Eco-friendly" fuels are destroying the rain forest.  TJIC has a great post that I can't improve on, so I will send you there.

Oops, Our Bad. Sorry.

I thought this was pretty funny, via TJIC.  The Fed apologizes for the Great Depression:

Ben Shalom Bernanke (born December 13, 1953)"¦ is an American
macroeconomist who is the current Chairman of the Board of Governors of
the United States Federal Reserve ("the Fed")"¦

On Milton Friedman's Ninetieth Birthday, Nov. 8, 2002 he
stated: "Let me end my talk by abusing slightly my status as an
official representative of the Federal Reserve. I would like to say to
Milton and Rose: Regarding the Great Depression. You're right, we did
it. We're very sorry. But thanks to you, we won't do it again.""¦

The quote is from Wikipedia, so I take it with a huge grain of salt.  Anyone have a link to another source, because the quote is pretty funny.  Good to see the government take responsibility for the economic messes it creates, even if 75 years late.  Of course, 75 years after the Hawley-Smoot tariffs helped throw a recession into the Great Depression, Congress is about to launch us down the same protectionist path, so don't give the feds too much credit.