Posts tagged ‘US’

Subsidize Biofuels, Destroy the Rainforest

Not much comment necessary for the following, except to say that I don't think one should be able to call this an unintended consequence of US biofuel and corn subsidies when 1) the results are utterly predictable and 2) folks like myself publicly predicted it.

The US is the world's leading producer of soy, but many American soy
farmers are shifting to corn to qualify for the government subsidies.
Since 2006, US corn production rose 19% while soy farming fell by 15%.

The
drop-off in US soy has helped to drive a major increase in global soy
prices, which have nearly doubled in the last 14 months. In Brazil, the
world's second-largest soy producer, high soy prices are having a
serious impact on the Amazon rainforest and tropical savannas.

"Amazon
fires and forest destruction have spiked over the last several months,
especially in the main soy-producing states in Brazil," said Laurance.
"Just about everyone there attributes this to rising soy and beef
prices."

High soy prices affect the Amazon in several ways. Some
forests are cleared for soy farms. Farmers also buy and convert many
cattle ranches into soy farms, effectively pushing the ranchers further
into the Amazonian frontier. Finally, wealthy soy farmers are lobbying
for major new Amazon highways to transport their soybeans to market,
and this is increasing access to forests for loggers and land
speculators.

Using Copyright Law to Block Price Arbitrage

Movie producers sell DVDs cheaper in, say, Taiwan than they do in the US.  This is not an unheard of economic phenomenon -- it happens in every commodity and product.  The reason we don't notice these price differences too much is that traders and arbitragers and shipping companies will target the largest price differentials and take advantage of them by buying and shifting products around until the price differential is less than the transportation and transaction costs.  Basic economics.

However, despite a number of structural advantages that already serve to reduce this cross-flow (e.g. different languages), the media companies are trying to stretch copyright law far beyond what CopyOwner says is legally defensible:

Copyright owners (including the owners of the "works" embodied in
the copyrighted labels on common non-copyrighted goods) like to
discriminate in pricing by creating artificial markets so that
discounts in one market won't be resold at a lower price in over-priced
markets. The thinking goes, "Why let U.S. consumers get the benefit of
prices that are affordable to people in developing countries when we
know we can get more out of the U.S. consumer's pocket?"

The
"first sale doctrine," now codified as Section 109 of the Copyright
Act, makes clear that the copyright owner's right of distribution is
subject to the copy owner's right to sell it to anyone, anywhere, at
any price. And that's great policy. Entrepreneurs who see too big a gap
between the prices charged U.S. consumers and the prices charged
consumers elsewhere for identical copies can buy the cheaper product
and sell it at a profit, while still giving the U.S. consumer a better
bargain.

But that's not why I nearly fell out of my chair. I
was used to these anti-competitive price discriminators ranting about
perfectly lawful gray market goods. What this story does is label these
perfectly legal importers as pirates. That's right. Despite quoting the
Supreme Court in Quality King Distributors v. L'anza Research International,
that "once the copyright owner places a copyrighted item in the stream
of commerce by selling it, he has exhausted his exclusive statutory
right to control its distribution," a ruling that suggests that the
evildoers are those who try to circumvent the law by preventing gray
market imports, they go on to call the importers "pirates"

It is Time To Reform the US Patent Office

The evidence is fairly clear that it is past time to reform the US Patent Office, particularly in its handling of software and Internet-related patents.  One of my ex-employers, Mercata, managed to obtain several patents (including a few that were awarded postmortem) that in effect patented volume discounting (though the method was sortof kindof clever).  Amazon famously managed to patent 1-click ordering, and numerous companies from Red Hat to Blackberry have been subject to expensive suits from various patent trolls, many of whom never took a single step to monetizing or developing their patents besides hiring lawyers. 

Stephan Kinsella at Mises has another good example:  Apple is attempting to patent the ordering of take-out food by cell phone.

Genius! Apple's done it! They've solved the problem of waiting in line for food or beverages. You place your order before you get it--but not the normal way--see, here's the pure genius of it--you place your order, get this, you won't believe it, wirelessly.
Yep! Who would have thunk it? I mean, I know it's well known to call in
a food order and drive there in time to get it, so you don't have to
wait in line (and this might be done on a (wireless) cordless home
phone, or a (wireless) cell phone, but I digress); or to place your
order and receive one of those little blinky-buzzy things that tells
you when your order is ready, so you don't have to wait in line (hey,
aren't those little blinky wireless buzzers, er, wireless? but again, I
digress); and it's known to communicate wirelessly; and in other
countries, it's well-known to use cell phones to make purchases. And in
McDonald's, you can place your order at a little automated computer
kiosk (but maybe it uses wires! Whew--HUGE difference, lemme tellya).

But, my God, Apple! Oh, it's amazing--the innovative brilliance to think of using a cell phone--a cell phone,
do you hear me!?--to place an order for a cuppajoe... so you don't have
to stand in line... it's so beautiful, I'm about to shed tears...
Sniff... Thank God for the US patent system giving them a king's
monopoly on this unique idea. Otherwise, no one would have come up with
this!. And let's only hope Apple gets a patent on this and is able to
sue or threaten other companies to pay them royalties for all their
remotely similar "wireless communications systems". After all, it's a small price to pay to have the American innovation we do.

There was a time when I was naive enough to think that the US Patent Office would step back and say -- "oops, we screwed up.  We really didn't know what we were doing when we were flooded with all of these business-model-masquerading-as-software patents.  Now we realize we need to get our act together."  Congress is going to have to step in and reduce or eliminate the patentability of software and business models (all other software other than computer code is subject copyright law, not patents).

But of course, Congress will never make these reforms, because forcing business competition into the courts under arbitrary and changing law rather than settling business model superiority in the marketplace generates far more political activism and campaign donations.  So why am I even bothering writing this.  Never mind.

Postscript: By the way, if I were running a software or Internet company, I would be filing every dumb patent application I could think of, because if I don't, someone else will and will and then I am stuck with a suit and trying to prove priority.  Which causes me to think of one way we might force reform -- a sort of reverse strike.  Every software company in 2008 should strive to file as many patent applications for every BS thing they can think of.   Maybe a deluged PTO might at that point force some kind of reform.

Arizona Business Death Penalty Enacted

This Tuesday, Arizona's death penalty goes into effect for businesses that knowingly hire workers who have not been licensed to work by the US Government.  Employers must use the e-Verify system the Federal government has in place to confirm which human beings are allowed by the federal government to work in this country and which people businesses are not allowed to employ.  Businesses that don't face loss of their business license (in itself a bit of government permission to perform consensual commerce I should not have to obtain).

There are any number of ironies in this law:

  • The Arizona government has resisted applying the same tight standards to receipt of government benefits, meaning the state is more comfortable with immigrants seeking government handouts than gainful employment.
  • The state of Arizona resists asking for any sort of ID from voters.  This means that the official position of the state of Arizona is that it is less concerned about illegal immigrants voting and receiving benefits than it is about making sure these immigrants don't support themselves by working.  This is exactly the opposite of what a sane proposal would look like. (and here)
  • In the past, we have used Arizona drivers licenses to verify citizenship.  By implementing this law, the Arizona Government has said that an Arizona driver's license is not sufficient proof of citizenship.  Unable to maintain the integrity of their own system (e.g. the drivers license system) the state has effectively thrown up its hands and dumped the problem on employers
  • The e-verify system, which the law requires businesses use, currently disappears in 11 months.
  • The law requires that the e-Verify system be used for both current and new employees.  It is, however, illegal under federal law to use the e-Verify system on current employees.
  • In fact, the e-Verify system may only be used within 3 days of hire -- use it earlier or later, and one is violating the law.  In a particular bit of comedy, it is illegal to use the e-Verify system to vet people in the hiring process.  The government wants you to entirely complete the expensive hiring process before you find out the person is illegal to hire.
  • There are apparently no new penalties for hiring illegal immigrants at your house (since there is no business license to lose).  State legislators did not want to personally lose access to low-cost house cleaning and landscaping help.  We're legislators for God sakes -- we aren't supposed to pay the cost of our dumb laws!

I have criticized the AZ Republic a lot, but they have pretty comprehensive coverage on this new law here and here.

Update:  Typical of the government, the e-Verify registration site is down right now.

Update #2:  It appears Arizona is taking a page from California's book.  California often passes regulations that it hopes businesses will follow nationally rather than go through the expense of creating different products or product packaging for California vs. the other states.  Arizona may be doing something of the same thing, since the terms of use for e-Verify require that if a business uses e-Verify, it must use if for all employees.  Therefore, a business that has any employees in Arizona is technically required to use this system for all employees nationwide.

Update #3:  By the way, I guess I have never made my interest in this issue clear.  We do not hire any illegal immigrants.  Since most of our positions require employees to live on site in their own RV, it is seldom an issue since the average illegal immigrant does not own an RV.  We have always done all of our I-9 homework, even though the government stopped auditing I-9's about 8 years ago.  We have in fact been asked about five times by foreigners to hire them under the table without having the licenses and papers they need from the US government -- all of them have been Canadian.

Spammers Get A Bigger Vision

In the middle of a block of Nigerian email scams and spam for cheap viagra, I got this:

Brazilian Sugar in
Containers
C&F Price
Worldwide
Icumsa 45 - US $ 435.00 per
ton
Icumsa 100 US $ 425.00
per ton
Icumsa 150 US $ 420.00 per
Ton
Minimum order quantity: 10 container of
20" with 27 tons per container and 270 tons in total

I must say that offering me $115,000 of sugar is not the usual come-on

Unbundling Citizenship

Those who oppose more open immigration generally have three arguments, to which I have varying levels of sympathy:

  • It's illegal!  Illegal immigration violates the rule of law.  I have always thought this argument weak and circular.  If the only problem is that immigrants are violating the law, then the law can be changed and its now all legal.  Since this is not the proposed solution, presumably there are other factors that make more open immigration bad beyond just the fact of its illegality.  I am positive I could come up with hundreds of bad laws that if I asked a conservative, "should I aggressively enforce this bad law or should I change it," the answer would be the latter.
  • We will be corrupting our culture.  I am never fully sure what these arguments mean, and they always seem to carry a touch of racism, even if that is not what is intended.  So I will rewrite this complaint in a way I find more compelling:  "We are worried that in the name of liberty and freedom, we will admit immigrants who, because of their background and culture, will vote against liberty and freedom when they join our democracy."  I am somewhat sympathetic to this fear, though I think the horse may already be out of the barn on this one.  Our current US citizens already seem quite able to vote for restrictions on liberties without any outside help.  If I were really worried about this, I might wall off Canada before Mexico.
  • Open Immigration or Welfare State:  Pick One.  I find this the most compelling argument for immigration restrictions.  Historically, immigration has been about taking a risk to make a better life.  I have been reading a biography of Andrew Carnegie, which describes the real risks his family took, and knew they were taking, in coming to America.  But in America today, we aren't comfortable letting people bear the full risk of their failure.  We insist that the government step in with our tax money and provide people a soft landing for their bad decisions (see:  Mortgage bailout) and even provide them with a minimum income that in many cases dwarfs what they were making in their home country. 

My problem with conservatives is that they are too fast to yell "game over" after making these arguments, particularly the third.  There are some very real reasons why conservatives, in particular, should not so easily give up on finding a way to allow more free immigration.  Consider these questions:

  • Should the US government have the right and the power to dictate who I can and cannot hire to work for me in my business?
  • Should the US government have the right and the power to dictate who can and cannot take up residence on my property (say as tenants)?

My guess is that many conservatives would answer both these questions in the negative, but in reality this is what citizenship has become:  A government license to work and live in the boundaries of this nation.

I can't accept that.  As I wrote here:

The individual rights we hold dear are our rights as human beings, NOT
as citizens.  They flow from our very existence, not from our
government. As human beings, we have the right to assemble with
whomever we want and to speak our minds.  We have the right to live
free of force or physical coercion from other men.  We have the right
to make mutually beneficial arrangements with other men, arrangements
that might involve exchanging goods, purchasing shelter, or paying
another man an agreed upon rate for his work.  We have these rights and
more in nature, and have therefore chosen to form governments not to be
the source of these rights (for they already existed in advance of
governments) but to provide protection of these rights against other
men who might try to violate these rights through force or fraud....

These rights of speech and assembly and commerce and property
shouldn't, therefore, be contingent on "citizenship".  I should be
able, equally, to contract for service from David in New Jersey or Lars
in Sweden.  David or Lars, who are equally human beings,  have the
equal right to buy my property, if we can agree to terms.  If he wants
to get away from cold winters in Sweden, Lars can contract with a
private airline to fly here, contract with another person to rent an
apartment or buy housing, contract with a third person to provide his
services in exchange for wages.  But Lars can't do all these things
today, and is excluded from these transactions just because he was born
over some geographic line?  To say that Lars or any other "foreign"
resident has less of a right to engage in these decisions, behaviors,
and transactions than a person born in the US is to imply that the US
government is somehow the source of the right to pursue these
activities, WHICH IT IS NOT...

I can accept that there can be some
minimum residence requirements to vote in elections and perform certain
government duties, but again these are functions associated with this
artificial construct called "government".  There should not be, nor is
there any particular philosophical basis for, limiting the rights of
association, speech, or commerce based on residency or citizenship,
since these rights pre-date the government and the formation of borders.

I have advocated for years that the concept of citizenship needs to be unbundled (and here, on the Roman term Latin Rights).   Kerry Howley makes a similar argument today:

Citizenships are club memberships you happen to be born with. Some
clubs, like the Norway club, have truly awesome benefits. Others, like
the Malawi club, offer next to none. Membership in each club is kept
limited by club members, who understandably worry about the drain on
resources that new members might represent. Wishing the U.S. would
extend more memberships in 2008 isn't going to get you very far.   

Conceptually,
for whatever reason, most of us are in a place where we think labor
market access and citizenships ought to be bundled. A Malawian can't
come work here, we think, without the promise of a club membership,
which is nearly impossible to get. This is an incredibly damaging
assumption for two reasons: (1) memberships are essentially fixed in
wealthy democratic societies (2) uneven labor market access is a major
cause of global inequality. Decoupling the two leads to massive gains,
as we see in Singapore, without the need to up memberships.   

Here's
another way to think about it: Clubs have positive duties toward their
members, including those of the welfare state. But the negative duty
not to harm outsiders exists prior to clubs, and denying people the
ability to cooperate with one another violates their rights in a very
basic way. Our current policy is one of coercively preventing
cooperation. In saying "we can't let people into this country unless we
confer upon them all the rights and duties of citizenship," you are
saying that we need to violate their right to move freely and cooperate
unless we can give them welfare benefits. But that's backwards.

Environmentalists Want Us To Celebrate Squalor

I really want to thank Michael Tobis at environmentalist hang-out Grist.   For years people have accused me of over-reading  the intentions of climate catastrophists, so I am thankful that Tobis has finally stated what climate catastrophists are after (emphasis in the original, but it is the exact phrase I would have highlighted as well)

Is infinite growth of some meaningful
  quantity possible in a finite space? No scientist is inclined to think
  so, but economists habitually make this
  claim without bothering to defend it with anything but, "I'm, an
  economist and I say so", or perhaps more thoughtfully, "hey, it's
  worked until now".

Such ideas were good approximations in the past. Once the finite
  nature of our world comes into play they become very bad approximations. You know, the gods of Easter Island
smiled on its people "until now" for a long time, until they didn't.
The presumption of growth is so pervasive that great swaths of economic
theory simply fail to make any sense if a negative growth rate occurs.
What, for instance, does a negative discount rate portend? ...

The
  whole growth thing becomes a toxic addiction. The only path to a soft
  landing is down
; we in the overheated economies need to learn not just
  to cope with decline but to celebrate it. We need not just an ideology
  but a formal theory that can not only cope with reduced per capita
  impact but can target it.

Decline isn't bad news in an airplane. Decline is about reaching
your destination. Perhaps there is some level of economic activity
beyond which life gets worse? Perhaps in some countries we have already
passed that point? Could the time where we'd all be better off with a
gradual decline have arrived? How much attention should we pay to the
folks who say we should keep climbing, that there's no way we can run
out of fuel, that we'll think of something?

So there it is, in the third paragraph, with no danger of misinterpretation.  These folks want economic decline.  That's a fancy way of saying "We want you poorer."

I could spend weeks writing about the fallacies and anti-human philosophy embedded in these four paragraphs, but here are just a few reactions.

The Zero Sum Fallacy

Every generation has people, like Mr. Tobis, who scream that we are all living in a petri dish and this is the generation we run out of Agar.  Of course they are always wrong.  Why? 

Well, first, the prime driver of economic growth is not resources but the human mind.  And the world of ideas has no capacity limits.   This is an  issue that Julian Simon wrote about so clearly.   Tobis is trying to apply physical models to wealth creation, and they just don't apply.  (and by the way, ask the passengers of TWA flight 800 if decline isn't bad news in an airplane).

Further, if we talk about the world of resources, we currently use a trivial fraction of the world's resources.  By a conservative estimate, we have employed at most (including the soil we till for agriculture, extracted minerals, etc) less than 0.0001% of the earth's mass.  In terms of energy, all energy (except nuclear) comes ultimately from the sun  (fossil fuels, hydropower reservoirs, etc are just convenient storage repositories of the sun's energy).  We currently use an infinitesimal percentage of the sun's energy. I wrote much more on the zero-sum wealth fallacy here.  And here is my ancestor blogger in Coyote Broadsheet making the same fallacy as Mr. Tobis back in the 19th century, writing on the Peak Whale Theory.

Wealth Benefits the Environment

Just like actual 20th century data tends to undermine catastrophic climate forecasts, experience over the last century tends to contradict the notion that growth is devastating to the environment. 

We can find the best example right here in the environmental Satan called the USA.  The US has cleaner air and water today than in any time in decades.  Because of technology and growth, we can produce more food on less land than ever -- in fact the amount of land dedicated to agriculture has shrunk for years, allowing forests to steadily expand in the US for over eighty years (that is, until the environmentalists got the government to subsidize ethanol).   No one in Brazil would be burning huge tracts of the Amazon if they enjoyed the agricultural productivity we do in the US.  Sure, we have done some things that turn out to be environmentally bad (e.g. lead in gasoline) but our wealth has allowed us to fairly painlessly fix these mistakes, even if the fixes have not come as fast as environmentalists have desired. 

I will confess that the Chinese seem hell bent on messing up their air and water as much as possible, but, just like the United States, it will be the wealthy middle and upper class of China that will finally demand that things get cleaned up, and it will be their wealth, not their poverty, that allows them to do so.   Similarly, I don't think CO2 reduction will do much of anything to improve our climate, but if we find it necessary, it will be through application of wealth, not squalor, that we overcome the problems. 

Here is a simple test:  Which countries of the world have the worst environmental problems?  Its is the poorest countries, not the wealthiest.

Growth / Climate Tradeoffs

For the sake of argument, let's assume that man-made global warming increases severed storm frequency by 20%, or by 3 or 4 extra hurricanes a year (why this probably is not happening).  Even a point or two knocked off worldwide economic growth means hundreds of trillions of dollars in lost annual GDP a century from now (2% growth yields a world economy of $450 trillion in a century.  3% growth yields a world economy $1,150 trillion in a hundred years.)  So, using these figures, would the world be better off with the current level of hurricanes, or would it be better off with four more hurricanes but $700 trillion a year more to deal with them.  Hmmm.  Remember, life lost in a hurricane correlates much higher with poverty in the area the hurricane hit rather than with storm strength, as demonstrated by recent cyclones in Asia.  This general line of reasoning is usually described as warmer and richer vs. cooler and poorer

I cannot speak for Mr. Tobis, but many environmentalists find this kind of reasoning offensive.  They believe that it is a sin for man to modify the earth at all, and that changing the climate in any way is wrong, even if man is not hurt substantially by this change.  Of course, in climate, we have only been observing climate for 30-100 years, while climate goes through decadal, millennial, and even million-year cycles.  So it is a bit hard to tell exactly what is natural for Gaia and what is not, but that does stop environmentalists from declaring that they know what is unnatural.  I grew up in the deep South, and their position sounds exactly like a good fiery Baptist minister preaching on the sins of humanity.

More from Jerry Taylor, who got Tobis started on his rant in the first place.

Postscript:  Here is an interesting chicken or the egg problem:  Do you think Mr. Tobias learned about man-made global warming first, and then came to the conclusion that growth is bad?  Or did Mr. Tobis previously believe that man needed to be fewer and poorer, and become enthusiastic about global warming theory as a clever packaging for ideas most of the world's population would reject?  The answer to this question is a window on why 1)  the socialists and anti-globalization folks have been so quiet lately (the have all jumped onto global warming); 2)  no one in the global warming movement wants to debate the science any longer  (because the point is not the science but the license to smack down the world economy)  and 3)  why so much of the Bali conference seems to be about wealth transfers than environmentalism.

Environmentalists Want Us To Celebrate Squalor

I really want to thank Michael Tobis at environmentalist hang-out Grist.   For years people have accused me of over-reading  the intentions of climate catastrophists, so I am thankful that Tobis has finally stated what climate catastrophists are after (emphasis in the original, but it is the exact phrase I would have highlighted as well)

Is infinite growth of some meaningful
  quantity possible in a finite space? No scientist is inclined to think
  so, but economists habitually make this
  claim without bothering to defend it with anything but, "I'm, an
  economist and I say so", or perhaps more thoughtfully, "hey, it's
  worked until now".

Such ideas were good approximations in the past. Once the finite
  nature of our world comes into play they become very bad approximations. You know, the gods of Easter Island
smiled on its people "until now" for a long time, until they didn't.
The presumption of growth is so pervasive that great swaths of economic
theory simply fail to make any sense if a negative growth rate occurs.
What, for instance, does a negative discount rate portend? ...

The
  whole growth thing becomes a toxic addiction. The only path to a soft
  landing is down
; we in the overheated economies need to learn not just
  to cope with decline but to celebrate it. We need not just an ideology
  but a formal theory that can not only cope with reduced per capita
  impact but can target it.

Decline isn't bad news in an airplane. Decline is about reaching
your destination. Perhaps there is some level of economic activity
beyond which life gets worse? Perhaps in some countries we have already
passed that point? Could the time where we'd all be better off with a
gradual decline have arrived? How much attention should we pay to the
folks who say we should keep climbing, that there's no way we can run
out of fuel, that we'll think of something?

So there it is, in the third paragraph, with no danger of misinterpretation.  These folks want economic decline.  That's a fancy way of saying "We want you poorer."

I could spend weeks writing about the fallacies and anti-human philosophy embedded in these four paragraphs, but here are just a few reactions.

The Zero Sum Fallacy

Every generation has people, like Mr. Tobis, who scream that we are all living in a petri dish and this is the generation we run out of Agar.  Of course they are always wrong.  Why? 

Well, first, the prime driver of economic growth is not resources but the human mind.  And the world of ideas has no capacity limits.   This is an  issue that Julian Simon wrote about so clearly.   Tobis is trying to apply physical models to wealth creation, and they just don't apply.  (and by the way, ask the passengers of TWA flight 800 if decline isn't bad news in an airplane).

Further, if we talk about the world of resources, we currently use a trivial fraction of the world's resources.  By a conservative estimate, we have employed at most (including the soil we till for agriculture, extracted minerals, etc) less than 0.0001% of the earth's mass.  In terms of energy, all energy (except nuclear) comes ultimately from the sun  (fossil fuels, hydropower reservoirs, etc are just convenient storage repositories of the sun's energy).  We currently use an infinitesimal percentage of the sun's energy. I wrote much more on the zero-sum wealth fallacy here.  And here is my ancestor blogger in Coyote Broadsheet making the same fallacy as Mr. Tobis back in the 19th century, writing on the Peak Whale Theory.

Wealth Benefits the Environment

Just like actual 20th century data tends to undermine catastrophic climate forecasts, experience over the last century tends to contradict the notion that growth is devastating to the environment. 

We can find the best example right here in the environmental Satan called the USA.  The US has cleaner air and water today than in any time in decades.  Because of technology and growth, we can produce more food on less land than ever -- in fact the amount of land dedicated to agriculture has shrunk for years, allowing forests to steadily expand in the US for over eighty years (that is, until the environmentalists got the government to subsidize ethanol).   No one in Brazil would be burning huge tracts of the Amazon if they enjoyed the agricultural productivity we do in the US.  Sure, we have done some things that turn out to be environmentally bad (e.g. lead in gasoline) but our wealth has allowed us to fairly painlessly fix these mistakes, even if the fixes have not come as fast as environmentalists have desired. 

I will confess that the Chinese seem hell bent on messing up their air and water as much as possible, but, just like the United States, it will be the wealthy middle and upper class of China that will finally demand that things get cleaned up, and it will be their wealth, not their poverty, that allows them to do so.   Similarly, I don't think CO2 reduction will do much of anything to improve our climate, but if we find it necessary, it will be through application of wealth, not squalor, that we overcome the problems. 

Here is a simple test:  Which countries of the world have the worst environmental problems?  Its is the poorest countries, not the wealthiest.

Growth / Climate Tradeoffs

For the sake of argument, let's assume that man-made global warming increases severed storm frequency by 20%, or by 3 or 4 extra hurricanes a year (why this probably is not happening).  Even a point or two knocked off worldwide economic growth means hundreds of trillions of dollars in lost annual GDP a century from now (2% growth yields a world economy of $450 trillion in a century.  3% growth yields a world economy $1,150 trillion in a hundred years.)  So, using these figures, would the world be better off with the current level of hurricanes, or would it be better off with four more hurricanes but $700 trillion a year more to deal with them.  Hmmm.  Remember, life lost in a hurricane correlates much higher with poverty in the area the hurricane hit rather than with storm strength, as demonstrated by recent cyclones in Asia.  This general line of reasoning is usually described as warmer and richer vs. cooler and poorer

I cannot speak for Mr. Tobis, but many environmentalists find this kind of reasoning offensive.  They believe that it is a sin for man to modify the earth at all, and that changing the climate in any way is wrong, even if man is not hurt substantially by this change.  Of course, in climate, we have only been observing climate for 30-100 years, while climate goes through decadal, millennial, and even million-year cycles.  So it is a bit hard to tell exactly what is natural for Gaia and what is not, but that does stop environmentalists from declaring that they know what is unnatural.  I grew up in the deep South, and their position sounds exactly like a good fiery Baptist minister preaching on the sins of humanity.

More from Jerry Taylor, who got Tobis started on his rant in the first place.

Postscript:  Here is an interesting chicken or the egg problem:  Do you think Mr. Tobias learned about man-made global warming first, and then came to the conclusion that growth is bad?  Or did Mr. Tobis previously believe that man needed to be fewer and poorer, and become enthusiastic about global warming theory as a clever packaging for ideas most of the world's population would reject?  The answer to this question is a window on why 1)  the socialists and anti-globalization folks have been so quiet lately (the have all jumped onto global warming); 2)  no one in the global warming movement wants to debate the science any longer  (because the point is not the science but the license to smack down the world economy)  and 3)  why so much of the Bali conference seems to be about wealth transfers than environmentalism.

Environmentalists Want Us To Celebrate Squalor

I really want to thank Michael Tobis at environmentalist hang-out Grist.   For years people have accused me of over-reading  the intentions of climate catastrophists, so I am thankful that Tobis has finally stated what climate catastrophists are after (emphasis in the original, but it is the exact phrase I would have highlighted as well)

Is infinite growth of some meaningful
  quantity possible in a finite space? No scientist is inclined to think
  so, but economists habitually make this
  claim without bothering to defend it with anything but, "I'm, an
  economist and I say so", or perhaps more thoughtfully, "hey, it's
  worked until now".

Such ideas were good approximations in the past. Once the finite
  nature of our world comes into play they become very bad approximations. You know, the gods of Easter Island
smiled on its people "until now" for a long time, until they didn't.
The presumption of growth is so pervasive that great swaths of economic
theory simply fail to make any sense if a negative growth rate occurs.
What, for instance, does a negative discount rate portend? ...

The
  whole growth thing becomes a toxic addiction. The only path to a soft
  landing is down
; we in the overheated economies need to learn not just
  to cope with decline but to celebrate it. We need not just an ideology
  but a formal theory that can not only cope with reduced per capita
  impact but can target it.

Decline isn't bad news in an airplane. Decline is about reaching
your destination. Perhaps there is some level of economic activity
beyond which life gets worse? Perhaps in some countries we have already
passed that point? Could the time where we'd all be better off with a
gradual decline have arrived? How much attention should we pay to the
folks who say we should keep climbing, that there's no way we can run
out of fuel, that we'll think of something?

So there it is, in the third paragraph, with no danger of misinterpretation.  These folks want economic decline.  That's a fancy way of saying "We want you poorer."

I could spend weeks writing about the fallacies and anti-human philosophy embedded in these four paragraphs, but here are just a few reactions.

The Zero Sum Fallacy

Every generation has people, like Mr. Tobis, who scream that we are all living in a petri dish and this is the generation we run out of Agar.  Of course they are always wrong.  Why? 

Well, first, the prime driver of economic growth is not resources but the human mind.  And the world of ideas has no capacity limits.   This is an  issue that Julian Simon wrote about so clearly.   Tobis is trying to apply physical models to wealth creation, and they just don't apply.  (and by the way, ask the passengers of TWA flight 800 if decline isn't bad news in an airplane).

Further, if we talk about the world of resources, we currently use a trivial fraction of the world's resources.  By a conservative estimate, we have employed at most (including the soil we till for agriculture, extracted minerals, etc) less than 0.0001% of the earth's mass.  In terms of energy, all energy (except nuclear) comes ultimately from the sun  (fossil fuels, hydropower reservoirs, etc are just convenient storage repositories of the sun's energy).  We currently use an infinitesimal percentage of the sun's energy. I wrote much more on the zero-sum wealth fallacy here.  And here is my ancestor blogger in Coyote Broadsheet making the same fallacy as Mr. Tobis back in the 19th century, writing on the Peak Whale Theory.

Wealth Benefits the Environment

Just like actual 20th century data tends to undermine catastrophic climate forecasts, experience over the last century tends to contradict the notion that growth is devastating to the environment. 

We can find the best example right here in the environmental Satan called the USA.  The US has cleaner air and water today than in any time in decades.  Because of technology and growth, we can produce more food on less land than ever -- in fact the amount of land dedicated to agriculture has shrunk for years, allowing forests to steadily expand in the US for over eighty years (that is, until the environmentalists got the government to subsidize ethanol).   No one in Brazil would be burning huge tracts of the Amazon if they enjoyed the agricultural productivity we do in the US.  Sure, we have done some things that turn out to be environmentally bad (e.g. lead in gasoline) but our wealth has allowed us to fairly painlessly fix these mistakes, even if the fixes have not come as fast as environmentalists have desired. 

I will confess that the Chinese seem hell bent on messing up their air and water as much as possible, but, just like the United States, it will be the wealthy middle and upper class of China that will finally demand that things get cleaned up, and it will be their wealth, not their poverty, that allows them to do so.   Similarly, I don't think CO2 reduction will do much of anything to improve our climate, but if we find it necessary, it will be through application of wealth, not squalor, that we overcome the problems. 

Here is a simple test:  Which countries of the world have the worst environmental problems?  Its is the poorest countries, not the wealthiest.

Growth / Climate Tradeoffs

For the sake of argument, let's assume that man-made global warming increases severed storm frequency by 20%, or by 3 or 4 extra hurricanes a year (why this probably is not happening).  Even a point or two knocked off worldwide economic growth means hundreds of trillions of dollars in lost annual GDP a century from now (2% growth yields a world economy of $450 trillion in a century.  3% growth yields a world economy $1,150 trillion in a hundred years.)  So, using these figures, would the world be better off with the current level of hurricanes, or would it be better off with four more hurricanes but $700 trillion a year more to deal with them.  Hmmm.  Remember, life lost in a hurricane correlates much higher with poverty in the area the hurricane hit rather than with storm strength, as demonstrated by recent cyclones in Asia.  This general line of reasoning is usually described as warmer and richer vs. cooler and poorer

I cannot speak for Mr. Tobis, but many environmentalists find this kind of reasoning offensive.  They believe that it is a sin for man to modify the earth at all, and that changing the climate in any way is wrong, even if man is not hurt substantially by this change.  Of course, in climate, we have only been observing climate for 30-100 years, while climate goes through decadal, millennial, and even million-year cycles.  So it is a bit hard to tell exactly what is natural for Gaia and what is not, but that does stop environmentalists from declaring that they know what is unnatural.  I grew up in the deep South, and their position sounds exactly like a good fiery Baptist minister preaching on the sins of humanity.

More from Jerry Taylor, who got Tobis started on his rant in the first place.

Postscript:  Here is an interesting chicken or the egg problem:  Do you think Mr. Tobias learned about man-made global warming first, and then came to the conclusion that growth is bad?  Or did Mr. Tobis previously believe that man needed to be fewer and poorer, and become enthusiastic about global warming theory as a clever packaging for ideas most of the world's population would reject?  The answer to this question is a window on why 1)  the socialists and anti-globalization folks have been so quiet lately (the have all jumped onto global warming); 2)  no one in the global warming movement wants to debate the science any longer  (because the point is not the science but the license to smack down the world economy)  and 3)  why so much of the Bali conference seems to be about wealth transfers than environmentalism.

Can We Get Over Our Obsession with Agriculture?

Dan Griswold writes today about our depressing continued subsidization of the agriculture business, up to and including gutting any reasonable energy policy in favor of subsidizing corn farmers.

Beyond shear inertia and the fact that Iowa leads the primaries, can anyone really explain this.  For God sakes, we have a cabinet-level position for agriculture, and, in case of a massive Cylon attack, the secretary of agriculture is 8th in line for the Presidency.

Here is some perspective:  Agriculture, even if you include fishing and forestry, accounts for 1.1% of US GDP.  $122 billion of total value added.  Computers and electronic parts is a larger industry.  As is entertainment and recreation.  As is the restaurant industry.  Heck, Exxon and Wal-Mart are probably more deserving of cabinet positions. 

Question About Nuclear

I was perusing the US electricity generation data a minute ago, and noticed this trend in nuclear generation in the US (all numbers in millions of MW-hours, from here):

1995..........673
1996..........675
1997..........629
1998..........674
1999..........725
2000..........705
2001..........534
2002..........507
2003..........459
2004..........476
2005..........436
2006..........425

I am wondering at the fall of 300 million megawatts-hours from 1999 to 2006.  My guess is that maybe some of the really old US government-owned plants closed.  But to the extent that this decline is due to aging plants and regulations limiting capacity, it strikes me that if someone in government really wanted to come up with a plan by 2020 to reduce CO2 in utility plant emissions, that regaining a portion of this lost nuclear capacity might be the cheapest and fastest approach.  After all, 300 million MWH is about 20% of total coal-fired generation and about 45 times more capacity than the sum of all US generation from non-hydro renewables (which don't really reduce CO2 anyway).

Mandating the Impossible (Not to Mention the Stupid)

Here is a snippet from the energy bill that just passed the House:

On Thursday, just over a year after winning the majority, Democrats in
the House of Representatives voted through an energy bill that
represents a stark departure from the administration's approach. It
would raise vehicle fuel efficiency (Cafe) standards for the first time
in over 30 years, by 40%, to 35 miles per gallon for both cars and
light trucks and SUVs. A renewable energy standard mandates that
utilities generate 15% of their power from renewables by 2020. It would
set a renewable fuel standard aiming to generate 36 billion gallons of
ethanol a year by 2022. A tax package would roll back some $13.5bn in
oil industry subsidies and tax breaks to help pay for $21bn worth of
investments in clean energy development, mainly in the form of
investment tax credits for wind and solar, along with the development
and purchase of plug-in hybrid vehicles. And it would raise efficiency
standards for appliances and buildings.

Let's look at a couple of pieces very quickly.  Recognize that this is based on 10 whole minutes of research, far more than a busy Congressman could possibly be expected to muster.

  1. They want 15% of power generation from renewables by 2020.  I am not sure if this includes hydro.  If it does, then a bunch of Pacific Northwest utilities already have this in the bag.  But even if "renewable" includes hydro, hydro power will do nothing to meet this goal by 2020.  I am not sure, given environmental concerns, if any major new hydro project will ever be permitted in the US again, and certainly not in a 10 year time frame.  In fact, speaking of permitting, there is absolutely no way utilities could finance, permit, and construct 15% of the US electricity capacity by 2020 even if they started today.  No.  Way.   By the way, as a sense of scale, after 35 years of subsidies and mandates, renewables (other than hydro) make up ... about .27% of US generation.
  2. The Congress is demanding 36 billion gallons of ethanol.  Presumably, this is all from domestic sources because Congress has refused to drop the enormous tariffs on ethanol imports.  But the entire corn harvest in 2004 of 11.8 billion bushels would make only 30 billion gallons of ethanol.  So Congress wants us to put ALL of our food supply into our cars?  Maybe we can tear down the Amazon rain forest to grow more.
  3. By the way, I am all for cutting all subsidies to any industry for any reason, but when they say "industry subsidies and tax breaks" for the oil industry, what they mostly mean is this:

These were leases for drilling rights in the Gulf of
Mexico signed between oil companies and the Clinton Administration's
Interior Department in 1998-99. At that time the world oil price had
fallen to as low as $10 a barrel and the contracts were signed without
a requirement of royalty payments if the price of oil rose above $35 a
barrel.

Interior's Inspector General investigated and found
that this standard royalty clause was omitted not because of any
conspiracy by big oil, but rather because of bureaucratic bungling in
the Clinton Administration. The same report found that a year after
these contracts were signed Chevron and other oil companies alerted
Interior to the absence of royalty fees, and that Interior replied that
the contracts should go forward nonetheless.

The companies have since invested billions of dollars
in the Gulf on the basis of those lease agreements, and only when the
price of oil surged to $70 a barrel did anyone start expressing outrage
that Big Oil was "cheating" taxpayers out of royalties. Some oil
companies have voluntarily offered to renegotiate these contracts. The
Democrats are now demanding that all these firms do so -- even though
the government signed binding contracts.

Update:  More thoughts hereMy climate skeptic video is here.

Nothing New Under the [Rising] Sun

Sixty-six years ago today, the Japanese attacked Pearl Harbor, which turned out to be about as smart of a strategic move as taunting the New England Patriots just before the game.  During subsequent years, there was an inevitable investigation into why and how the US got caught so flat-footed, and who, if anyone, was to blame.

Decades later, revisionist historians reopened this debate.  In the 1970's, not coincidently in the time of Watergate and lingering questions about the Kennedy assassination and the Gulf of Tonkin, it was fairly popular to blame Pearl Harbor on ... FDR.  The logic was (and still is, among a number of historians) that FDR was anxious to bring the US into the war, but was having trouble doing so given the country's incredibly isolationist outlook during the 1920's and 1930's.  These historians argue that FDR knew about the Pearl Harbor attack but did nothing (or in the most aggressive theories, actually maneuvered to encourage the attack) in order to give FDR an excuse to bring America into the war.  The evidence is basically in three parts:

  • The abjectly unprepared state of the Pearl Harbor base, when there were so many good reasons at the time to be on one's toes (after all, the Japanese were marching all over China, Germany was at the gates of Moscow, and France had fallen) could only be evidence of conspiracy.
  • The most valuable fleet components, the carriers, had at the last minute been called away from Pearl Harbor.  Historians argue that they were moved to protect them from an attack known to be coming to Pearl.  They argue that FDR wanted Pearl to be attacked, but did not want to lose the carriers.
  • Historians have found a number of captured Japanese signals and US intelligence warnings that should have been clear warming of a Pearl Harbor attack.

I have always been pretty skeptical of this theory, for several reasons:

  • First, I always default to Coyote's Law, which says

When the same set of facts can be explained equally well by

  1. A massive conspiracy coordinated without a single leak between hundreds or even thousands of people    -OR -
  2. Sustained stupidity, confusion and/or incompetence

Assume stupidity.

I think it is more than consistent with human history to assume that if Pearl Harbor was stupidly unprepared, that the reason was in fact stupidity, and not a clever conspiracy

  • The carrier argument is absurd, and is highly influenced by what we know now rather than what we knew in December of 1941.  We know now that the carriers were the most valuable fleet component, but no one really knew it then (except for a few mavericks).  Certainly, if FDR and his top brass knew about the attack, no one would have been of the mindset that the carriers were the most important fleet elements to save.
  • I find it to be fairly unproductive to try to sort through intelligence warnings thirty years after the fact.  One can almost ALWAYS find that some warning or indicator existed for every such event in history.  The problem occurs in real-time, when such warnings are buried in the midst of hundreds of other indicators, and are preceded by years of false warnings of the same event.
  • I don't really deny that FDR probably wanted an excuse to get the country in the war.  However, I have never understood why a wildly succesful Japanese attack on Pearl Harbor was more necessary than, say, an attack met strongly at the beach.  I can understand why FDR might have allowed the attack to happen, but why would he leave the base undefended.  The country would have gotten wound up about the attack whether 5 ships or 10 were destroyed.

It is interesting how so much of this parallels the logic of the 9/11 conspiracists.  And, in fact, I have the same answer for both:  I don't trust the government.  I don't put such actions and motivations past our leaders.  But I don't think the facts support either conspiracy.  And I don't think the government is capable of maintaining such a conspiracy for so long. 

US Convinces China to Jack Up Prices to American Consumers

From the NY Times:

Bowing to American pressure on the eve of high-level talks to reduce
economic tensions, China agreed Thursday to terminate a dozen different
subsidies and tax rebates that promote its own exports and discourage
imports of steel, wood products, information technology and other goods.

Thanks a lot.  The Bush Administration crows that:

This outcome represents a victory for U.S. manufacturers and their workers

Um, not if they are consumers too, as they all are.  And not if their company buys any inputs from Chinese manufacturers.

Napoleon said to never interrupt an enemy when he was making a mistake.   I don't consider China an enemy, but it just flabbergasts me that the Chinese taxpayers and consumers see fit to subsidize lower prices for our consumers, and we feel the need to stop them.   More here and here.

Memo to Fact Checkers and Editors on Ethanol

Let's forget all the other issues surrounding ethanol for a moment  (we'll mention a really bad one below), and just consider one fact that is beyond dispute.  Ethanol has an energy content per gallon that is only about 65% of that of gasoline.  So, another way to put it is that it takes a bit over 1.5 gallons of ethanol to replace 1 gallon of gasoline.  There is nothing suspicious or sinister about this (ethanol is flawed for other reasons) or at all controversial. 

Therefore, when your paper prints something like this:

"The number of plants under construction is truly frightening,"
said Ralph Groschen, a senior marketing specialist with the Minnesota
Department of Agriculture who closely watches the state's ethanol
development. The country could go from 7 billion gallons of capacity
now to 12 billion gallons, or about roughly 10 percent of U.S. gasoline
capacity, in a few years, according to Groschen.

You need to understand that you and everyone else are failing at simple math.  In 2004 the US consumed just over 140 billion gallons of gasoline.  So, already, our media has failed the math test.  12 billion gallons would be 8.6%, but we will give them a pass on rounding that to "roughly 10 percent."  But this 8.6% only holds true if gasoline is replaced by ethanol 1:1.  Using the actual figures cited above, 12 billion gallons of ethanol is about 7.8billion gallons an a gasoline equivalent, which would make it  5.6% of US gasoline usage in 2004, and probably an even smaller percentage if we were to take the worlds "gasoline capacity" at face value, since surely capacity is higher than production.

I know it seems petty to pick on one paper, and probably would not be worth my time to bother if it was just this one article.  But this mistake is made by every MSM article I have ever seen on ethanol.  I can't remember any writer or editor ever getting it right.

By the way, if you want more on what is wrong with ethanol, check my past posts

Finally, the other day I pointed out how much of our food crop is getting diverted to fueling our cars, with negligible effect on CO2 or oil imports.  If you really want to be worried about ethanol, note this:

Biofuels need land, which means traditional food crops are being
elbowed off of the field for fuel crops. Biofuel production is
literally taking the food out of people's mouths and putting into our
gas tanks. Already, increased food costs sparked by increased demand
are leaving populations hungry. The price of wheat has stretched to a
10-year high, while the price of maize has doubled.

Need more
land? Clear cut some forest. Is there a word beyond irony to describe a
plan to mitigate climate change that relies on cutting down the very
trees that naturally remove carbon from the atmosphere? Stupidity,
perhaps? The logic is like harvesting a sick patient's lungs to save
her heart. Huge tracks of Amazon
rainforest are being raised to the biofuels alter like a sacrificial
lamb, and the UN suggests that 98 percent of Indonesia's rainforest
will disappear by 2022, where heavy biofuel production is underway.

Still
need land? Just take it. The human rights group Madre, which is backing
the five-year moratorium, says agrofuel plantations in Brazil and
Southeast Asia are displacing indigenous people. In an editorial
published on CommonDreams last week, Madre Communication Director Yifat
Susskind wrote, "People are being forced to give up their land, way of
life, and food self-sufficiency to grow fuel crops for export."

Show a Little Backbone!

This is pretty funny:

A labor dispute which has darkened US light entertainment and chat
shows claimed another victim on Wednesday, forcing the cancellation of
a CBS News debate among Democratic White House hopefuls.

The debate, scheduled for Los Angeles on December 10, was nixed
after candidates including Hillary Clinton and Barack Obama said they
would refuse to cross a picket line that the Writers Guild of America
Union had threatened to set up.

"CBS News regrets not being able to offer the Democratic
presidential debate scheduled for Dec. 10 in Los Angeles," CBS said in
a statement.

"The possibility of picket lines set up by the Writers Guild of
America and the unwillingness of many candidates to cross them made it
necessary to allow the candidates to make other plans."

Since the writers have nothing to do with the debate (presumably, unless Hillary's question-writing shills are part of the guild) then their picketing the debate makes no more sense than if, say, the meat packers were picketing.  Is the winning candidate going to refuse to enter the White House if any union is picketing out front?  As Ed Morrissey points out, this does not bode well for any of the candidates being able to stand up to special interests as president.

Update:  Next up, Democratic candidates to commit to not hire anyone for their administration who did not attend a government-run, NEA-unionized high school.

New Unified Field Theory

Albert Einstein's dream is now a reality.  We have a new unified field theory:  Global Warming causes everything bad.   Via Tom Nelson and American Thinker, comes this list by Dr. John Brignell of links to articles in the media attributing various bad things to Global Warming.  Currently, his list has over 600 items!  Some excerpts:

Agricultural
land increase
, Africa
devastated,
  African
aid threatened
, Africa
hit hardest,
air
pressure changes
, Alaska
reshaped
, , Alps
melting
, Amazon
a desert
, American
dream end
amphibians
breeding earlier (or not)
ancient
forests dramatically changed
, animals
head for the hills,
Antarctic
grass flourishes
, anxiety,
algal
blooms
, archaeological
sites threatened,
Arctic
bogs melt
, Arctic
in bloom
, Arctic
lakes disappear
, asthma,
Atlantic
less salty
, Atlantic
more salty
...


itchier poison ivy
, jellyfish
explosion
, Kew
Gardens taxed
, kitten boom,
krill
decline
, lake
and stream productivity decline
, lake
shrinking and growing
, landslides, landslides
of ice at 140 mph
, lawsuits
increase
, lawsuit successful,
lawyers'
income increased (surprise surprise!)
, lightning
related insurance claims
, little
response in the atmosphere
, lush
growth in rain forests
, Lyme
disease
Malaria,
malnutrition,  mammoth
dung melt
, Maple syrup
shortage
...

wheat
yields crushed in Australia
, white
Christmas dream ends
, wildfires, wind
shift
, wind
reduced,

wine - harm
to Australian industry
, wine
industry damage (California)
,
wine industry disaster (US)
,
wine - more
English
, wine
-German boon
, wine
- no
more French
winters
in Britain colder
, wolves
eat more moose
, wolves
eat less,
workers laid
off
, World
bankruptcy
, World
in crisis
, World
in flames
, Yellow
fever
.

All I can say is:

Dont_panic_earth_300w

Burning the World's Food in Our Cars

It is good that doom mongers like Paul Ehrlich have been so thoroughly discredited.  But could anyone have imagined that not only are we not facing "Population Bomb" style famines, but we are in fact spending billions of dollars of taxpayer money to promote burning food in cars?

I am not sure how anyone thought this was a good idea, since

  1. Every scientific study in the world not conducted by an institution in Iowa have shown that corn-based ethanol uses more energy than it produces, does not reduce CO2, and creates new environmental problems in terms of land and water use.
  2. Sixty seconds of math would have shown that even diverting ALL of US corn production to ethanol would only replace a fraction of our transportation fuel use.

Apparently, Nebraska has reached a milestone of sorts: (HT Tom Nelson)

With three new plants
added in November, annual corn demand for ethanol production in
Nebraska passed the 500-million-bushel mark for the first time, using
37% of Nebraska's corn.

How much fuel has this produced?

"Today, that ambitious
directive has become a reality." Sneller says "At current rates,
Nebraska plants will use 514 million bushels of corn annually to
produce 1.4 billion gallons of ethanol. By the end of 2008, Nebraska
plants will process 860 million bushels into 2.3 billion gallons of
ethanol. Distillers grain, a co-product of ethanol production, is
widely accepted and marketed as a superior livestock feed."

This is enough ethanol to replace about a billion gallons of gasoline (since ethanol has less energy content than gasoline).  This represents about  0.7% of US gasoline usage.  The cost?  Well, I don't know how many billions of subsidy dollars have flowed to Nebraska, but there is also this:

Corn prices have
remained virtually unchanged since World War II. Increased demand from
ethanol production has raised average corn prices by 70% and is driving
an economic resurgence in rural Nebraska, according to Todd Sneller,
administrator of the Nebraska Ethanol Board.

So we have spent billions of taxpayer dollars, have diverted about 40% of Nebraska's corn output, and we've raised prices on corn 70% all to replace less than a percent of US gasoline usage.  If we could really do the fuel balance on the whole system, we would likely find that total fossil fuel usage actually went up rather than down through these actions.

Never have I seen an issue where so many thoughtful people on both sides of the political aisle united in agreement that a program makes no sense since... well, since farm subsidies.  Which, illustratively, have not gone away despite 80 years of trying.  As I wrote here:

Companies are currently building massive subsidy-magnets
biofuel plants.  Once these investments are in place, there is going to
be a huge entrenched base of investors and workers who are going to
wield every bit of political power they can to retain subsidies forever
to protect their jobs and their investment.  Biofuel subsidies will be
as intractable as peanut and sugar subsidies and protections.

A Statist View of Rights

In the statist's world, your rights are whatever the state says they are.  You can really see this concept at work in this breathtakingly bad Canadian decision reported by Eugene Volokh:

Richard Warman, a lawyer who worked as an investigatory for the
Canadian Human Rights Commission, often filed complaints against "hate
speech" sites "” complaints that were generally upheld under Canadian
speech restrictions. Fromm, a defender of various anti-Semites and
Holocaust denials, has been publicly condemning Warman for, among other
things, being "an enemy of free speech." Warman sued, claiming that
these condemnations are defamatory.

Friday, the Ontario Superior Court held for Warman
"” chiefly on the grounds that because Warman's claims were accepted by
the legal system, they couldn't accurately be called an attack on free
speech.

This case leaves one's head just spinning with ironies, not the least because it is a great example of how libel law as practiced in many western countries outside the US is itself a great enemy of free speech.  The logic chain used by the judge in this case should make every American appreciative of our Constitutional system and our view of rights as independent of (and if fact requiring protection from) the state:

[25] The implication, as well as the clear of meaning of the words
["an enemy of free speech" and "escalated the war on free speech"], is
that the plaintiff is doing something wrong. The comment "Well, see
your tax dollars at work" also implies that Mr. Warman misused public
funds for this "war on free speech".

[26]  The plaintiff was using legal means to complain of speech that he alleged was "hate" speech.

[27]  The evidence was that Mr. Warman was successful in both the complaint and a libel action which he instituted.

[28] Freedom of expression is not a right that has no boundaries.
These parameters are outlined in various legislative directives and
jurisprudence. I find Mr. Fromm has exceeded these. This posting is
defamatory.

The implication is that there are no fundamental individual rights.  Rights are defined instead by the state and are whatever is reflected in current law.  In this decision, but fortunately not in the US, the law by definition can't be wrong, so taking advantage of a law, in this case to silence various groups, is by definition not only OK, but beyond the ability of anyone to legally criticize.  There is much more, all depressing.  Here is one example of a statement that was ruled defamatory:

Thank you very much, Jason. So, for posting an opinion, the same sort
of opinion that might have appeared in editorial pages in newspapers
across this country, Jason and the Northern Alliance, his site has come
under attack and people who are just ordinary Canadians find themselves
in front of the courts for nothing more serious than expressing their
opinion. This is being done with taxpayers' money. I find that
reprehensible.

OK, so here is my opinion:  Not only is Richard Warman an enemy of free speech, but the Canadian legislature that passed this hate-speech law is an enemy of free speech and the Canadian Supreme Court is an enemy of free speech.  Good enough for you hosers?

I guess I will now have to skip my ski trip to Whistler this year, to avoid arrest at the border.

Analysis of "New" UN Climate Warming

Under
mounting pressure from climate catastrophists to ignore uncertainties
in the science and to produce definitive statements that can be used as
calls for government interventionism, the UN will apparently release a new "warning" this week:

Global
warming is destroying species, raising sea levels and threatening
millions of poor people, the United Nations' top scientific panel will
say in a report today that U.N. officials hope will help mobilize the
world to take tougher actions on climate change.

The report
argues that only firm action, including putting a price on
carbon-dioxide emissions, will avoid more catastrophic events.

Those
actions will take a small part of the world's economic growth and will
be substantially less than the costs of doing nothing, the report says.

For the first time, the UN is trying to
argue explicitly that the cost of CO2 abatement is lower than the cost
of doing nothing.  They are arguing that a cooler but poorer world is
superior to a warmer and richer world.  I am glad they are finally
arguing this point.  Because while we can argue about the truth of how
much the world has warmed and how much is due to man, the UN is DEAD
WRONG on this point.  The cost of aggressive CO2 abatement is far, far
higher than the cost of doing nothing.

The report presumably will be released by UN Secretary-General Ban Ki Moon, who demonstrated his stunning ignorance of climate science, geology, and geography on a recent climate-junket to Antarctica.  Let's take it line by line.

Is man destroying or threatening species?  Absolutely.  Is this threat from CO2 and warming? No, and I have read every inch of the UN IPCC report and you can find no evidence for this proposition.
But saying this rallies the environmental base (the hard core
environmentalists don't really care about poor people, at least when
their interests conflict with animals).  Most of the evidence is that
species thrive in warmer weather, and polar bears have survived several
inter-glaciation periods where the north pole melted entirely in the
summer.

Are sea levels rising?  Yes.  In fact, they have been
rising for at least 150 years, and in fact have been rising steadily
and at roughly the same rate since the last ice age.  We have seen
absolutely no acceleration of the underlying sea level rise trend.
Further, the UN's IPCC does have a forecast for sea level rise over the
next century.  Even using temperature forecasts I consider exaggerated,
the UN does not forecast more than about a foot of sea level rise over
the coming century, only a bit more than what the sea level has risen
over the last 150 years.  This is a great example of the disconnect
between the UN political climate reports and the science underlying
them.  The guys writing the summary know that their report says only a
few inches of sea level rise, so they just say it is rising, and then
let the crazies like Al Gore throw around numbers like 20 feet.

Here is an interesting thought:  If I say the sea levels
will rise 0" over the next 100 years, the UN will call me out and say I
am wrong.  However, when Al Gore said sea levels will rise 20 feet in
his movie An Inconvenient Truth, no one at the UN or the IPCC
called him out, despite the fact that my forecast was only a few inches off from theirs and his was 19 feet off the mark.

And of course, there are the poor.  The number one biggest
losers in any effort to abate CO2 emissions will be the poor.  In
wealthy countries like the US, the poor will be the hardest hit by $10
or even $20 gas prices that would be necessary to rolling CO2
production back to 1990 levels.  In the third world, nearly a billion
people just starting to emerge from poverty will have no chance of doing so if their economies are hamstrung with CO2 limits.  The poor will be devastated by aggressive CO2 limits.

Weighed against this economic disaster would be, what?
How would rising world temperatures hurt the poor?  Well, its not at
all clear.  A foot of sea-level rise is very unlikely to hurt many poor
people, though it might inconvenience a few rich owners of beach-front
luxury homes.  Here is a clarifying question I often ask people --
would you rather fifteen Atlantic hurricanes each year, or sixteen
hurricanes each year and Carribbean economies that are twice as rich
and therefore have twice the resources to handle hurricanes.  This is
the colder and poorer vs. warmer and richer choice.  We see this in Bangladesh today.  Why do orders of magnitude more people die in Bangladesh cyclones than class 5 hurricanes on the US shore?  Because they are poor, not because of anything having to do with global warming.

It is often claimed that global warming will cause
droughts, but in fact warmer world temperatures will vaporize more
water in the atmosphere and should net increase rain, not drought.  And
many of the farmers in the northern hemisphere would enjoy longer
growing seasons and thereby more food production.

Glaciers
and ice caps are melting at a rapid rate; animals and plants are
shifting their range to accommodate warmer air and water; and planting
seasons are changing, the report said.

Yes, land-based ice is melting in the Northern Hemisphere.  This is 15% of the world's ice.  85% of the world's ice is in Antarctica, which is increasing.
Seriously.  I know you don't believe this if you trust the media, but
the ice that is melting in Greenland is tiny compared to the ice that
is increasing at the South Pole.  In fact, the IPCC gets most of its
prjected sea rise from thermal expansion of warmer oceans, not from ice
melting.  And don't you love the "planting seasons are changing."  That
sounds like its scary, or something, until you recognize the truth is
that planting seasons are changing, becoming longer and more beneficial to food production!

On many occasions, I have discussed the bad science that
goes into these apocalyptic forecasts.  But that science is of top
quality compared to the economics that must have gone into the
statement that:

The most
stringent efforts to stabilize greenhouse gases would cost the world's
economies 0.12 percent of their average annual growth to 2050, the
report estimates.

This is absolute, unmitigated crap.
Though I have not seen specifics in this report, the UN's position has
generally been that emissions should be rolled back to 1990 levels (the
target embodied in the Kyoto treaty).  Such a target implies reductions
of more than 20% from where we are today and well over 50% from where
we will be in 2050.  These are enormous cuts that cannot be achieved
with current technology without massive reductions in economic growth.
The world economy is inextricably tied to the burning of fossil fuels.
And, unlike ancillary emissions like SO2, CO2 emissions cannot be
limited without actually reducing carbon combustion since it is
fundamental to the combustion chemistry.  Even supporters of
legislation such as the Bingaman-Specter bill admit that as much as a
trillion dollars will need to be spent to reduce global temperatures
about 0.13C.  And that is a trillion for the first tenth of a degree --
the law of diminishing returns means that each additional tenth will
cost more.

Lets look at history as our guide.  Most of the European
countries and Japan signed onto the Kyoto Treaty to reduce emissions to
1990 levels.  They have taken many expensive steps to do so,
implemented many more controls than in the US, and have gas prices as
much as double those in the US.  During the period since 1990, most of
these countries, unlike the US and China and India, have been in a deep
and extended economic recession, which tends to suppress the growth of
fossil fuel consumption.  Also, the CO2 numbers for countries like
Russia and Germany benefit greatly from the fall of the old Communist
Block, as their 1990 base year CO2 numbers include many horribly
inefficient and polluting Soviet industries that have since been shut
down.  And, given all this, they STILL are going to miss
their numbers.  These countries have experienced reductions in economic
growth orders of magnitude greater than this 0.12 percent quoted by the
UN, and that still is not enough to reduce CO2 to target levels.  Only
outright contraction of the world's economy is going to suffice [note:
A strong commitment to replacing coal plants with nuclear might be a
partial solution, but it will never happen because the people calling
for CO2 controls are the same ones who shut down our nuclear programs.
Also, technological change is always possible.  It would be awesome if
someone found a way to roll out sheets of efficient solar cells like
carpet out of Dalton, Georgia, but that has not happened yet.]

The UN has gotten to such low cost estimates for their
government controls because they have convinced themselves, much like
the promoters of building football stadiums for billionaire team
owners, that they will get a huge return from the government CO2
controls:

"There is high
agreement and much evidence that mitigation actions can result in
near-term co-benefits, for example improved health due to reduced air
pollution, that may offset a substantial fraction of mitigation costs,"
said the report, which summarizes research over five years of more than
2,000 of the world's top climate-change scientists...

The U.N. panel embraced the arguments of British economist
Nicholas Stern, who concluded last year that the cost of taking tough
measures to curb pollution will be repaid in the long run.

Nicholas
Stern?  Haven't we heard that name before?  Why, yes we have.  He is
the man that said that all of the world's climate problems would go
away if we forced all the western economies to look just like India.

Mr
Stern, the former chief economist of the World Bank, sends out a very
clear message: "We need to cut down the total amount of carbon
emissions by half by 2050." At current levels, the per capita global
emissions stand at 7 tonnes, or a total of 40-45 gigatonnes. At this
rate, global temperatures could rise by 2.5-3 degrees by then. But to
reduce the per capita emissions by half in 2050, most countries would
have to be carbon neutral. For instance, the US currently has, at 20-25
tonnes, per capita emissions levels that are three times the global
average.

The European Union's emission levels stand at 10-15
tonnes per capita. China is at about 3-4 tonnes per capita and India,
at 1 tonne per capita, is the only large-sized economy that is below
the desired carbon emission levels of 2050. "India should keep it that way and insist that the rich countries pay their share of the burden in reducing emissions," says Mr Stern.

Which,
by the way, is exactly my point.  I very much hope Mr. Stern continues
to make this clear in public.  One of the ways catastrophists support
their cause of massive government interventionism is to try to portray
the answer as little cutsie actions, like your 5-year-old helping with
the recycling
.  This is not what is require to meet these targets.
What is required is ratchet down the US economy until we are all about
as wealthy as the average Indian.  I guess that would at least take
care of the outsourcing "problem."

One of the ways that the UN gets away with this is that no
one has the time to read the detailed scientific report, and so
reporters rely on the summaries like these.  Unfortunately, the same
people who write the scientific sections are not the people who write
the summaries.  Careful language about uncertainties, which are still
huge, in the science are replaced by summaries written by politicians
that say:

The near-final draft,
approved Friday by representatives of more than 140 governments meeting
in Valencia, Spain, said global warming is "unequivocal" and said man's
actions are heading toward "abrupt or irreversible climate changes and
impacts."...

"This will be viewed by all as a definitive report. It is
the blueprint for the Bali talks," said Sen. John Kerry, D-Mass., who
will be at the Indonesian U.N. meeting beginning Dec. 3 as part of a
U.S. senatorial delegation.

Another
technique used by the UN that we see in play here is their willingness
to cherry-pick one author that follows the UN narrative to refute a
whole body of science that is contrary to the narrative.  Thus, the UN
latched onto Michael Mann's hockey stick to overturn a consensus that
there was a Medieval warm period, and now they have latched onto
Nicholas Stern to overturn the opinion of, approximately, every other
economist in the world who think CO2 mitigation will be really
expensive.

As always, you are encourage to view my movie What is Normal:  A Critique of Catastrophic Man-Made Global Warming Theory or check out my book (free online) called A Skeptical Layman's Guide to Anthropogenic Global Warming.

By the way, in the title I put "new" in quotes.  Here is why.  I just read a presentation by Dr. Richard Lindzen from 1992 that shows that catastrophists were declaring the debate "over" as early as 1989, before any real research had even been performed:

By early 1989, however, the popular media in Europe and the United States were declaring that "all scientists'' agreed that warming was real and catastrophic in its potential.
...
In the meantime, the global warming circus was in
full swing. Meetings were going on nonstop. One of the more striking of
those meetings was hosted in the summer of 1989 by Robert Redford at
his ranch in Sundance, Utah. Redford proclaimed that it was time to stop research and begin acting.
I suppose that that was a reasonable suggestion for an actor to make,
but it is also indicative of the overall attitude toward science.
Barbara Streisand personally undertook to support the research of
Michael Oppenheimer at the Environmental Defense Fund, although he is
primarily an advocate and not a climatologist. Meryl Streep made an
appeal on public television to stop warming. A bill was even prepared
to guarantee Americans a stable climate

8th Grade, 1895

I thought this was pretty interesting. It purports to be (and I have no reason to doubt that it is) an 8th grade final exam given in 1895 in Salina, KS.  I have seen it in the context of "gee, look how much worse our schools are" and to some extent that is unfair.  Sure, I think we all can get a gut feel from the test that expectations on students were a bit more unyielding and rigorous back then. One gets the sense that the Salina school district has not had to defend the test in court against charges that it discriminates against ... whatever and that they would not really understand the current public mantra that self-esteem should somehow trump learning and achievement.

But the fact that you and I can't answer a lot of the questions doesn't really mean much. Some of it would be hard to pass because it asks for frameworks we don't necessarily ascribe to today.  For example, it asks for the epochs into which US history is divided.  I have no idea what such epochs would be and in fact they are probably irrelevant given we have twice as much history as a country today as in 1895.  And it takes a minute to remember that when they say the "rebellion" they are probably talking about the Civil War.  And as to "orthography,"  I am not losing much sleep at night over not being able to "Give four substitutes for caret 'u'."

In general, the test reflects a shift in teaching from a lot of technical memorization to the more conceptual.  Kids who passed this test in 1895 could probably spell oddball words and fill out a map better than my kids, but I would be curious how well they would do on a five paragraph persuasive essay, something my eighth grader spends a lot of time on. 

Math is one area where my kid's education would blow this stuff away.  The math on this 1895 test is pretty tailored to the needs of a small farming town:

1. Name and define the Fundamental Rules of Arithmetic.

2. A wagon box is 2 ft. deep, 10 feet long, and 3 ft. wide. How many
bushels of wheat will it hold?

3. If a load of wheat weighs 3942 lbs., what is it worth at 50 cts.
per bu., deducting 1050 lbs. for tare?

4. District No. 33 has a valuation of $35,000. What is the necessary
levy to carry on a school seven months at $50 per month, and have
$104 for incidentals?

5. Find cost of 6720 lbs. coal at $6.00 per ton.

6. Find the interest of $512.60 for 8 months and 18 days at 7
percent.

7. What is the cost of 40 boards 12 inches wide and 16 ft. long at
$20 per m?

8. Find bank discount on $300 for 90 days (no grace) at 10
percent.

9. What is the cost of a square farm at $15 per are, the distance
around which is 640 rods?

10. Write a Bank Check, a Promissory Note, and a Receipt.

But by the end of eight grade my kids will have had two years of algebra, not necessarily because they are smarter than kids in 1895, but because perceived needs change.  My kids are more likely to need complex math for advanced science and technical degrees than they are going to need to be able to figure out how many bushels of grain will fit in the silo.  Further, where is the science on the test?  How about a second language? 

My kids go to a private school, so maybe public school parents have a different perspective.  There are a lot of reasons to criticize public schools today, but I don't think this test gives us much insight into them.

Due Process? Not When There Is Money in it for US

One of the worst violations of due process on the books today is law enforcement's ability to seize cash and assets from people only suspected to be drug dealers, with no due process whatsoever.  In fact, the only process involved is that, once seized, the private citizen from which the assets were taken must prove beyond a reasonable doubt that the money or assets are legitimately theirs, rather than the other way around.  This was a great case in point.

Along the same lines, the city of Washington DC has decided that all that due process stuff is getting in the way of their harvesting the maximum amount of cash from drivers:

In an attempt to stem the loss of revenue from motorists contesting
parking tickets, cities are effectively eliminating the traditional due
process rights of motorists to defend themselves at an impartial
hearing. By the end of next year, Washington, DC's Department of Motor
Vehicles (DMV) will not allow anyone who believes he unfairly received
a citation to have his day in an administrative hearing.

"DMV
will complete the phase-out of in-person adjudication of parking
tickets in favor of mail-in and e-mail adjudication by December 2008,"
the Fiscal Year 2008 DMV plan states.

The move is intended to allow automated street sweeper parking ticket machines
to boost the number of infractions cited well beyond the 1.6 million
currently handed out by meter maids. As one-third of those who contest
citations in the city are successful, the hearings cut significantly into the $100 million in revenue tickets generate each year.

Under
the DMV's plan, motorists will only be able to object to a ticket by
email or letter where city employees can ignore or reject letters in
bulk without affected motorists having any realistic recourse.

Thanks to Radley Balko, who also found this little gem:

In Boston and other cities in Massachusetts,
motorists cannot challenge a $100 parking ticket in court without first
paying a $275 court fee. If found innocent, the motorist does not
receive a refund of the $275.

This Job Is Half Empty

I again heard someone on NPR today lamenting the loss of manufacturing jobs in the US.  It got me thinking about a couple of things:

  1. When I had my political awakening in high school debate in the 1970s, all of the complaints from the left were about how horrible blue collar workers had it in manufacturing jobs.  At that time, manufacturing jobs were labeled by leftish critics as dirty and dangerous, and, most common, as repetitious and boring (in the Fredrick Taylor legacy).  OK, so now that they all have nice clean service jobs, we are unhappy that they don't have those old manufacturing jobs?  These are folks whose agenda has nothing to do with the words they are actually speaking, and everything to do with creating dissatisfaction to facilitate government takeover of economic functions
  2. While I am sure the service sector is overtaking manufacturing (in the same way manufacturing overtook agriculture), to some extent the statistics are misleading.

    Let's take an automobile assembly plant circa 1955.  Typically, a
    large manufacturing plant would have a staff to do everything the
    factory needed.  They had people on staff to clean the bathrooms, to
    paint the walls, and to perform equipment maintenance.  The people who
    did these jobs were all classified as manufacturing workers, because
    they worked in a manufacturing plant.  Since 1955, this plant has
    likely changed the way it staffs these type jobs.  It still cleans the
    bathrooms, but it has a contract with an outside janitorial firm who
    comes in each night to do so.  It still paints the walls, but has a
    contract with a painting contractor to do so.  And it still needs the
    equipment to be maintained, but probably has contracts with many of the
    equipment suppliers to do the maintenance.

    So, today, there might be the exact same number of people in the
    factory cleaning bathrooms and maintaining equipment, but now the
    government classifies them as "service workers" because they work for a
    service company, rather than manufacturing workers.  Nothing has really
    changed in the work that people do, but government stats will show a
    large shift from manufacturing to service employment.

  3. I am tired of the whole McJobs meme.  Have you been in a McDonalds?  How many middle age auto worker types do you see working there?  None?  What you see are young people and recent entrants to the job market, including new immigrants.  What these people need more than anything is real experience with the basics of holding a job, including showing up reliably, working in a structured environment, following a process, and providing customer service.  Sure, they would prefer that to happen at $60 an hour, what they really need, and are getting, is a credible work experience they can use to go get higher paying jobs in the future.

Anti-Trust is Anti-Consumer

Pursuing what has become a familiar theme on Coyote Blog, we again revisit anti-trust, and in the process, discover why the NY Times might be better off putting its editorial inanities back behind a firewall.

Writing about Intel, the NY Times editors say:

The abuse of market power to protect a monopoly hurts consumers and
hinders innovation "” locking out smaller rivals that may have better
products with new features or lower prices. With an 80 percent to 90
percent share of the microprocessor market, Intel wields much more
power than your local supermarket. Its threat to raise prices the
moment a customer tries to buy from rival A.M.D. can lock in even the
largest computer makers "” which depend on Intel for most of their
products and can't simply swap all their processors overnight. And with
such a level of control, Intel doesn't have to exert itself to come up
with new and better products.

Which I guess is why Lotus 1-2-3 must still have a hammerlock on the spreadsheet market, Creative must still dominate in MP3 players, IBM must still own the computer market, and GM must still rule the automotive roost.  How can any sentient human being who has lived through the past 20 years doubt that, particularly in technology, market dominance is as fleeting as the next technology cycle.   In fact, AMD several years ago made a huge penetration of the market with a series of processors a year or two ahead of Intel.  Most average consumers who can't even figure out how to attach a photo to an email never noticed, but among those who understood and cared, AMD ruled the roost.

Oh, and what was Intel's crime?

They say Intel is improperly protecting its stranglehold of the
microprocessor market by offering big discounts and rebates to computer
makers who minimize the use of processors made by rival Advanced Micro
Devices, and punishing those who stray with higher prices.

Oh my god, they are offering discounts to loyal customers!  Don Boudreax gets right to the heart of it:

Monopolists raise prices; firms facing competition do not.  Intel keeps its prices
low, meaning that it behaves competitively.  Yes, Intel's pricing
practices make life more difficult for AMD and other rivals, but that's
what competition is supposed to do.

The popular myth is that anti-trust policy is about protecting consumers.  Well, it may have been at one time or another, but currently it is all about protecting competitors who have political pull.  The Europeans are shameless about this, using anti-trust as a bludgeon to hamstring US companies who are out-competing EU home-grown competitors.  Now the NY Times wants to emulate this practice, explicitly calling on the government to force Intel to raise prices to make things easier for its competitors.

Update:  By the way, is there anyone out there who thinks Dell or H-P don't get the best possible pricing from Intel, with or without AMD purchases?  The coy little personal shopping example in the opening paragraph of the editorial is probably to help the reader forget that we are talking about Intel selling to customers who are big boys too.

Immigration Thought of the Day

Frequent readers will know that I am a strong supporter of open immigration.  I don't disagree with McQ at Q&O when he writes "Open Borders or Welfare State: Pick One," but I don't think that this is the logic of most folks who are anti-immigration.  It may be their public stance, but if more folks really thought this way, there would be serious discussion of tiered citizenship or guest worker models similar to what I have proposed on several occasions.

However, I am tempted to become a close-the-border proponent if the left continue to use numbers skewed by immigration to justify expansions of taxation and the welfare state.  Whether they are illegal or not, whether they should be allowed to stay or not, the fact is that tens of millions of generally poor and unskilled immigrants have entered this country over the last several decades.  These folks dominate the lower quintile of wage earners in this country, and skew all of our traditional economic indicators downwards.  Median wages appear to be stagnating?  Of course the metric looks this way -- as wages have risen, 10 million new folks have been inserted at the bottom.  If you really want to know what the current median wage is on an apples to apples basis back to 1970, take the current reported median wage and count up about 10 million spots, and that should be the number -- and it will be much higher. 

Income distribution numbers are the same way.  I showed in a previous post how these numbers are deceptive, when we compare them to Europe, because though European poor have a higher percentage of the median wage in their country, it is a higher percentage of a lower number.  When you correct for that effect, the US poor look pretty equal.  But immigration exaggerates this effect even more.  Instead of having income distribution numbers comparing, say, a lawyer and a blue collar worker, they are now comparing a lawyer and a non-English-speaking recent unskilled immigrant.  Of course the disparity looks worse!

The folks using these numbers have to be smart enough to understand this issue, so it can only be hugely disingenuous that they simultaneously promote immigration (which I support) while at the same time using immigrant-skewed numbers to say that the average US worker is somehow worse off.  If they keep this tactic up, even I may be tempted to close the borders.