Posts tagged ‘White House’

I Am Not Sure This Accomodation Law Needle Can Be Threaded

Via Zero Hedge:

The Washington Post and New York Times have recently opened up their platforms to Op-Eds defending, justifying and promoting abhorrent behavior committed against conservatives. Calling them out is the Washington Examiner's Byron York, who notes that "the toxicity of the resistance to President Trump has risen in recent days," with both papers "publishing rationalizations for denying Trump supporters public accommodation and for doxxing career federal employees."

First up, Stephanie Wilkinson, the owner of the infamous Red Hen restaurant in Lexington, Virginia. Wilkinson unapologetically booted White House spokeswoman Sarah Huckabee Sanders and her family last June. Wilkinson told the Washington Post at the time that her gay employees were too triggered by Sanders to serve her due to the Trump administration's transgender military ban.

It is going to be fascinating to see how these folks on the Left thread the Constitutional needle to make it illegal to refuse to bake cakes for gay weddings but legal to refuse service to Republicans.  My prediction is that someone on the Left is soon going to try and I am sure the New York Times will gladly give them editorial space to do so.  My guess is that any such theory will take advantage of the popular but bogus "hate speech is not free speech" idea.

I don't really get worked up about accomodation law too much one way or another.  I know our company benefits from being open to all.  We get calls all the time from customers who have been turned away because they have kids or have an older RV and we are happy to have their business.  It's not as true today but 15 years ago we gained a lot of good workers by hiring gay campground managers when many campgrounds thought it was "unsafe" to employ gay people around kids in campgrounds.  On the other hand, I read the First Amendment right of association as the right not to associate as well, so if folks want to turn away business it does not wildly bother me.  I personally wouldn't bake a cake for, say, the local Nazi party rally or Che Guevara birthday party.

My public policy rule of thumb is to allow folks to refuse accommodation as long as they represent a small percentage of the supply in a market.

Trump Acts Crazy; Democrats Respond by Saying "Hold My Beer"

Six months into the Trump Administration, I was committed to voting for whomever the Democrats fielded in the next election -- I was even going to eschew my usual quixotic Libertarian vote.

Since then my views on Trump are mixed at best.   I still think his demeanor is appalling.  His trade policy is even worse than I had feared.  His demagoguery on immigration has only resulted in a gridlock that has left a total mess at the border.  His use of national emergencies to end-run democratic processes is a terrible precedent.  To be fair, there have been some good things.  I have been encouraged by some of the regulatory efforts in some of his departments -- in particular I would happily follow Sonny Perdue's lead and ship much of the Federal headcount out of DC and into flyover country.  And I think the tax cuts passed were largely structured in a sensible manner.  None of this silver lining, though, is enough to offset the bad things for me.

But the largest change that has occured since my original vow has been the behavior of the Democrats.  Seeing the craziness in the White House, their response has been "You think that's crazy?  Hold my beer!"  The competition among mainstream Democratic candidates to one up each other with trillion dollar giveaways and absurd socialist programs is simply astounding.  Even my wife the New England Democrat -- who I am pretty sure has never checked an R box in the voting booth except maybe for Jeff Flake -- is horrified at the choices.

I am exceedingly close to joining the Ostrich party and, after years of political engagement, just ignoring it all.

On Losing the Thread -- Update on What Actually Remains of the Russia Collusion Tale

I want to thank everyone for all the comments on my thread asking for someone to give me the current, most damning case for Russia collusion.  I am going to try to pull together a best-of version to post here.

However, I wanted to post a few excerpts from TA Frank at Vanity Fair, in an article titled "IS THIS IT?: A TRUMP-HATER’S GUIDE TO MUELLER SKEPTICISM" that seems to almost perfectly capture my current take on the whole affair:

Certainly, Trump’s ethical standards are low, but if sleaziness were a crime then many more people from our ruling class would be in jail. It is sleazy, but not criminal, to try to find out in advance what WikiLeaks has on Hillary Clinton. It is sleazy, but not criminal, to take a meeting in Trump Tower with a Russian lawyer promising a dossier of dirt on Clinton. (Just as, it should be mentioned, it is sleazy, but not criminal, to pay a guy to go to Russia to put together a dossier of dirt on Trump. This is one reason why the Clinton campaign lied about its connection to the Steele dossier, albeit without the disadvantage of being under oath.) It is sleazy, but not criminal, to pursue a business deal while you’re running for president. Mueller has nailed people for trying to prevaricate about their sleaze, so we already have a couple of guilty pleas over perjury, with more believed to be on the way. But the purpose of the investigation was to address suspicions of underlying conspiracy—that is, a plan by Trump staffers to get Russian help on a criminal effort. Despite countless man-hours of digging, this conspiracy theory, the one that’s been paying the bills at Maddow for a couple of years now, has come no closer to being borne out. (Or, as the true believers would say, at least not yet.)...

Let’s take a moment to consider Mueller himself. The cut of his jib is likable, and the trad Brooks Brothers vibe of his wardrobe is a perfect complement to his job title. But it’s hard to avoid the suspicion that he’s playing a political game at this point. To be fair, I’m vulnerable to confirmation bias of my own in this assessment, since about a year ago I suggested that Mueller was going to drag out his investigation until 2019, when Democrats were likely to be back in charge of the House, and seeing a prediction play out can lead to unwarranted certitude. But the reports we’re starting to see suggest a man who’s fallen prey to the same state of mind that warped Ken Starr—namely disgust over the people you’re investigating and a desire to justify the sunk capital.

He includes this warning, which oddly enough is nearly identical to what I used to tell my Republican friends as they were giddy about a Ken Starr investigation into investment wrongdoing resulting in ... charges of perjury about lying about an extra-marital affair

Partisanship is hostile to introspection, but at some point maybe we’ll look back and think again about what was unleashed in the panic over Russian influence. Trump’s White House has pursued what is arguably the harshest set of policies toward Russia since the fall of Communism—hardly something to celebrate—yet nearly all the pressure, from the center-left as much as the right, is toward making it even tougher. As for those tapping along to S.N.L. songs in praise of Mueller and his indictments, they might want to remember that Trump won’t always be in office. The weapons you create for your side today will be used by the other side against you tomorrow. Do we really want the special-counsel investigation to become a staple of presidential life? It’s a creation with few boundaries on scope and a setup that encourages the selection of a suspect followed by a search for the crime, rather than the other way around. This caused calamities in the era of Bill Clinton, and it doesn’t get any better just because the partisan dynamics are reversed.

This is The Resistance's Real Failure (Assuming They Want to Make Progress on Their Issues, and Not Just Score Political Points)

From even before day 1 of the Trump Administration, the "resistance" has proclaimed that Trump is an illegitimate President and anyone who even has civil discourse with him will be othered and humiliated.

Readers know that I find Trump and his style to be distasteful, and believe he is dead wrong on immigration and trade, but the irony of the Resistance's position is:

  1. I am not sure there ever has been a President more open to a deal (at least on issues outside of his hot buttons like immigration and trade).  If one approaches him to bargain, he will bargain.  If one instead challenges his manhood, he is going to dig in his heels and likely childishly harden his position against whatever you support.
  2. There are very few things that Trump seems to have a hard-and-fast ideological position on, which tells me he is likely to act pragmatically (or in the case where he is resisted, vindictively).
  3. There is zero evidence that he is anything but a liberal on social issues  (OK, yes, he has been crass and offensive with women, but many other prominent social liberals have done the same thing).  I have gay friends who were horrified at his election, but I still don't see any evidence Trump has a problem with gay people. Prominent gay rights groups should go to the White House and could make some real progress (and then maybe create a Kickstarter campaign to help beef up Trump's Secret Service protection because Pence could be a real problem on gay rights issues if President).

I have said all this for a while but am reminded of it from this story by Jacob Sullum entitled, "Kanye’s real success: Trump now backs criminal justice reform"

Kanye West’s literal embrace of President Trump was all over the news last week. The president’s rhetorical embrace of criminal justice reform got considerably less attention, but may prove more consequential.

In an interview with Fox News on the morning of his meeting with the rap impresario, Trump signaled that he was ready to go beyond “back-end” reform, which focuses on rehabilitation of inmates, and support “front-end” reform, which focuses on reducing sentences and sending fewer people to prison.

The key to understanding Trump’s remarks is Alice Marie Johnson, whose sentence the president commuted in June at the behest of West’s wife, Kim Kardashian.

Government Regulatory Template: Subsidize Demand, Restrict Supply

The government does it in health care, education, and housing.  Usually in the name of increasing access to or usage of something, they will subsidize demand.  But then at the same time they will restrict supply, giving lie to this stated justification of increasing access, making the whole exercise a crony enrichment of a small number of incumbent producers or asset owners.  The government creates low income housing programs and subsidized mortgages but limits the ability to construct new homes, thus having the primary effect not of increasing housing access but of driving up home prices for current incumbent home owners.  In health care the government subsidizes access to care in any number of ways but then restricts supply through certificates of need, onerous licencing programs, and drug manufacturing restrictions.

Now, consider solar panels.  The government has many programs to subsidize the purchase of solar panels.  Often, one can get local, state, and federal rebates and tax breaks for buying solar panels.  But at the same time:

President Donald Trump’s pledge to offer American companies more aggressive protection from foreign competition got fresh ammunition Friday, when a government board cleared the way for him to deploy a long-dormant legal weapon to restrict solar panel imports....

In the solar panel case, filed by Georgia-based Suniva Inc. and joined by Oregon-based SolarWorld Americas Inc., the ITC commissioners will now consider specific policy recommendations and submit those to the White House by Nov. 13. Mr. Trump then has two months to decide whether to impose solar trade barriers....

“We brought this action because the U.S. solar manufacturing industry finds itself at the precipice of extinction at the hands of foreign market overcapacity,” Suniva said. The firm filed for bankruptcy protection earlier this year.

This really is utter madness, even from a domestic employment standpoint.  I would be willing to be that the solar panel installation industry, which will be hurt by rising costs of solar panels, employs way more people than the US panel manufacturing industry.  The solar industry's trade association seems to agree:

“Analysts say Suniva’s remedy proposal will double the price of solar, destroy two-thirds of demand, erode billions of dollars in investment and unnecessarily force 88,000 Americans to lose their jobs in 2018,” said the Solar Energy Industries Association, which promotes solar use.

For Progressives who are suspicious of public choice theory, this is they sort of prediction public choice theory makes and should be an area where Progressives and libertarians could make common cause.  But traditionally Progressives have always been trade restrictionists, which seems crazy to me.

 

One Onerous New Regulation Down, Zillions More to Go

A while back I wrote about the Obama Administration's near exponential expansion of EEO reporting

 It takes the current EEO-1 (the annual exercise where we strive for a post-racial society by racially categorizing all of our employees) and makes it something like 15-20 times longer.  In addition, rather than simply "count" an employee as being on staff in a certain race-gender category, we now have to report their income and hours worked.  Either I will have to hire staff just to do this stupid report, or I will again (like with Obamacare) have to pay a third party thousands of dollars a year to satisfy yet another government reporting requirement.  This is utter madness.

Get this -- the report has 3600 individual cells that must be filled in.  And this is in addition to the current EEO-1 form, which also still has to be filled out.  The draft rule assumes 6-7 hours per company per year for this reporting.  They must be joking.

Fortunately, the Trump Administration has at least temporarily suspended this requirement:

On Tuesday, the White House suspended a burdensome reporting requirement for employers that would have cost them $400 million while yielding information of questionable value. It did so in rejecting changes to the EEO-1 form made at the end of the Obama administration.

The White House Office of Management and Budget stated that the pay collection and reporting requirements “lack practical utility, are unnecessarily burdensome, and do not adequately address privacy and confidentiality issues.” It explained its reasoning in a letter to the Chair of the Equal Employment Opportunity Commission, Victoria Lipnic.

The Obama administration had claimed that rewriting the form to include 3,660 boxes for companies to check or fill out would help identify wage discrimination. But very little of the information it sought would have shed any light on potential wage discrimination.

Blue State Governance: Illinois Needs A Half Year of Taxes Just to Pay Late Bills

Per the WSJ:

This is what happens when a major American state lets its bills stack up for two years.

Hospitals, doctors and dentists don’t get paid for hundreds of millions of dollars of patient care. Social-service agencies help fewer people. Public universities and the towns that surround them suffer. The state’s bond rating falls to near junk status. People move out.

A standoff in Illinois between Republican Governor Bruce Rauner and Democratic Speaker of the House Michael Madigan over spending and term limits has left Illinois without a budget for two years. State workers and some others are still getting paid because of court orders and other stopgap measures, but bills for many others are piling up.

...Susana Mendoza, the state’s Democratic comptroller, is in charge of doling out limited funds to organizations demanding payment—a job she likens to handing out crumbs to starving children. She predicted unpaid bills will soon top $16 billion. “It is almost hard to say those numbers out loud because they seem so insane, but that’s where we are right now,” she says.

For reference, the entire tax revenue of the state of Illinois is just $32 billion a year, so even if the government were to close tomorrow and fire everyone, it would still take 6 months of taxes to just catch up on the bills.  And you can bet this does not include the most common form of borrowing done by most government agencies -- deferred maintenance.  Pretty much every government agency in the country at every level of government does not fully fund the maintenance of its capital assets (from parks to school buildings) preferring instead to fund the maximum salaries and retirement benefits for the maximum number of headquarters staff.

By the way, you may notice at the budget link that the proposed budget still calls for $6 to $7 billion a year in deficit spending, and does not include any provision for catching up on Illinois's sky-high $130 billion in unfunded retirement benefits (a number that represents a full 4 years of tax revenues).  Illinois is functionally bankrupt, and the only good news is that Illinois favorite son Barack Obama is no longer in the White House to bail them out.

Evergreen Campaign Promises that are Always Broken

Some Conservatives are miffed that Trump is apparently not going to move the US Embassy in Israel to Tel Aviv

In March 2016, addressing the American Israel Public Affairs Committee conference, Donald Trump said that, as president, he would move the U.S. embassy in Israel to Jerusalem. Trump called that city “the eternal capital of the Jewish people.”

Now, however, President Trump has decided to keep our embassy in Tel Aviv. A senior White House official explained: “We don’t think it would be wise to [move] it at this time” because “we’re not looking to provoke anyone when everyone’s playing really nice.”

This promise to move the US Embassy in Israel is evergreen, and is always broken.  A similar promise by candidates such as Barack Obama to declare the Ottoman treatment of the Armenians to be genocide is another promise of symbolic action that is never actually implemented in office.  These mostly symbolic gestures are really powerful in campaigns, because they will tend to energize certain groups and make them more likely to vote for you.  But it turns out that each of these actions would tend to tick off unpredictable, scary, violent parties, the negative consequences of which might well outweigh the benefits of the gesture.  Even ignoring violence and irrationality, these actions impose an opportunity cost, likely limiting progress on other diplomatic fronts with these same parties.

This is why the vast majority of actual government actions reside in the lower left square in the framework below -- don't believe me?  Look at the legislative output from any particular session of Congress.  The vast majority of the actions taken are to declare some special day, a low-cost symbolic action meant to make some group feel warm towards some politician.

 

Orren Boyle Smiles

I just cannot understand how politicians can be called "populist" for favoring a few hundred thousand domestic steel workers and steel company equity holders over 300 million domestic consumers who depend on low-cost steel for their jobs or buy steel products.  But there seems to be something about the steel industry that causes folks who normally would scream about corporate welfare to just roll over.

At noon, Donald Trump will sign an executive order calling for a probe whether imports of foreign-made steel are hurting U.S. national security. The order will revive a decades-old, rarely used law to explore imposing new barriers on steel imports, in this case aimed loosely at China.

Trump will sign the memorandum related to section 232 of the Trade Expansion Act of 1962 at an event in the White House that will include leadersd of several U.S. steel companies; the law will allow the president to impose restrictions on imports for reasons of national security. Trump’s directive will ask Ross to conduct the probe “with all deliberate speed and deliver the results to the president with his recommendations."

An official cited by Reuters sad that there are national security implications from imports of steel alloys that are used in products such as the armor plating of ships and require a lot of expertise to create and produce.

Why do I suspect the national defense argument is a total sham?

Update:  “For every steelworker, there are 60 workers in steel-using industries,” said Lewis Leibowitz, a Washington attorney who has worked on trade cases involving steel in the past. “You need competitive steel prices for those industries to be competitive and to export.”  source:  WSJ

No Matter What They Actually Say, the Public Trusts Private Corporations More Than Government, And I Can Prove It

As a libertarian, I find myself constantly saying to folks something like:  "private actors (corporations, businesses, individuals, etc. are inherently more trustworthy than government because they cannot legally interact with you through force or fraud -- the government is free to do both.  If you don't like what a private actor is doing, you can simply refuse to interact with them further, an ability one does not have with the government."  This seems like such an obvious point but few people, particularly on the Left, will ever agree with me.  But I have recent proof that in their hearts, most people understand this perfectly.

What is my proof?  The universal, bipartisan freakout over the man who was dragged off by force from a United flight.  People are focusing on this event for the very fact that this example of a private company deploying force against its customers is so incredibly rare.  The Internet is filled with similar or in fact much worse examples of the government abusing its authority -- false arrests, petty harassment, asset seizures without due process -- but people just yawn and these videos gets 236 views  vs. millions for the United video.  Because, presumably, people have come to expect such abuses from the government but not from private companies.

And to a large extent, this particular example of private violence is the exception that will prove the rule.  Because United is going to experience real accountability.  It is already getting a firestorm of bad press that will cost them current and future business.  They will face lawsuits and possible government action.  But the average police officer or government official (or VA or IRS administrator) who abuses their power retain their jobs for life with no negative consequences from their actions.  Also, we should note that it was a government agent in this case who was the one who actually used force and dragged the passenger off, not a private United employee.  Almost every time one looks deeply at an abuse by private companies, at the end of the day that company is enabled or protected in doing so by so some sort of crony relationship with the government.

So I suppose we should ask, if people really in their hearts understand that private "power" is much less menacing than government power, why do they still support increasing the power of government over private actors?  And the answer must be that they believe (or hope, or expect) that use of this government power will achieve some end they want that they cannot achieve without force.  The problem with this of course is that it is naive -- it assumes that once you give great power to the government, government employees will use this power in the way you would use it, for the same goals and ends.  But this is seldom the case, certainly over the long haul.  I argued for years that the Left under the Obama administration was supporting Presidential power on the assumption they would hold the White House forever and thus get to wield all this power.  Which is why, I suppose, there has been so much freakout over Donald Trump's victory.

Postscript:  Here is an example video of government brutality just from my news feed today.  It will get no real traction because everyone has come to expect the government to act in this manner.

Number of Private Jobs Created By all Past Presidents Combined: Zero

For eight years, I had to endure articles from the Left about all the jobs Obama had created.  Now that the White House has changed hands, it is all the bloggers on the Right breathlessly reporting job creation by Trump and heralding the February job figures (example).  Though the Left is still trying to credit Obama (example)

  1.  Presidents do not create private jobs.  Period.  Even so-called infrastructure spending and stimulus merely take private money from whatever it was being used for previously and applies it to investment projects that politicians want.  Sure, there are new easy to see infrastructure jobs from these projects, but what is also there, largely unseen, are whatever jobs would have been created (or not lost) had the money used for these projects been left to private individuals to spend or invest as they see fit.
  2. Presidents do have long-term effects on prosperity, but these are usually based on regulatory and tax policy that can take years to play out -- not the span of days from January 20 to February.  The main effect government officials can have is negative, by creating drags on private enterprise.  The best they can achieve is generally removal of past negatives.
  3. To the extent individual companies credit Trump with various job growth steps, this is a function of our corporate crony state, not any underlying economic reality.  I have been at the highest levels of Fortune 50 companies (not as an executive but as a consultant and later as executive staff).  Corporations do not suddenly make changes in business strategy and capital investment plans based on elections.  They do make changes based on real changes, e.g. this tax policy was changed or that regulation was changed, none of which has yet occurred.  Of course, they may credit the new President as responsible for certain investments or changed decisions, but this is generally flattery attached to actions that would have happened anyway, or crass calculations meant to garner higher crony status in the future.

Congratulations #DeleteUber on Weakening an Important Source of Restraint on Trump

A couple weeks ago I was having dinner with a couple of guys who fear and despise Trump.  I told them that all the marches in the streets were not going to affect Trump's behavior one bit, though it will affect the behavior of the Congress when (and if, given the new Imperial presidency, copyright Bush and Obama) they are called on to ratify some of Trump's actions.  I told them that the biggest check on Trump, at least in the near term on issues like immigration, was going to be American corporations.  As much as the Left may not like corporations, businesses need trade and immigration and free international travel to function in the global economy and they are not going to be happy about all of Trump's planned restrictions (you could see echoes of that last night in a number of the Superbowl commercials).

So of course the Left gears up a #DeleteUber campaign because Uber didn't participate in a taxi strike at JFK protesting Trump's immigration order.  Essentially, protesters who are mad at Trump for restricting travel are mad at Uber for, uh, not restricting travel.  In the end, all the #DeleteUber folks did was force the Uber CEO to quit Trump's advisory counsel.  Congratulations Left, you managed to remove a likely voice of reason from inside the White House.

I would happily join up with the Left in opposition to a lot of Trump's actions if I wasn't so absolutely horrified at their tactics.  There is no reason, no thoughtfulness at all.  Even the media participates in this dumbing down by simply refusing to making issues clear (e.g. continuing to call the 90-day visa timeout from 7 countries a "muslim ban").  And the first person from the Left who I hear criticize the anti-free-speech violence at Berkeley will be the first.

Update:  97 tech firms team up against Trump's immigration ban.  The problem with this approach is that I am not sure the "immigration ban", which is in fact a 90-day pause in issuing visas to folks from 7 countries, is actually illegal under current law and precedent.   Obama did something similar with Iraq at one point.   But I am happy to see them taking a shot at it -- in my mind a single person should not have this much power.  By the way, Amazon and Tesla did not sign, in part because their leaders still sit on Trump's advisory board.  The latter strikes me as a reasonable strategy, but I wonder how long the Left will allow them to remain inside the tent.

 

Trump is Going to Destroy Economic Growth If We Don't Find Ways to Block Him -- We Need A Real Consumer Advocacy Organization

As an example, from the WSJ today:

Auto executives typically spend the end of the year prepping for product debuts and thinking up ways to spark sales.

This time around, Detroit’s chiefs devoted considerable time to trying to figure out how to deal with the nation’s new commander in chief. Union bosses are being called in to consult on how to reshuffle factory work, board members are trying to figure out who has friends in President Donald Trump ’s new administration, and task forces have been created to monitor his Twitter account.

At a dinner party during the Detroit auto show earlier this month, Ford Motor Co. Chief Executive Mark Fields said he reread Mr. Trump’s “The Art of the Deal” over the holidays. He first read it in the 1980s, but wants to better understand the new occupant of the Oval Office.

American companies, several of which have been scolded by Mr. Trump, often via Twitter, are suddenly grappling with a new, unpredictable force in their operations. Barbs have included the price the Pentagon pays for Lockheed Martin Corp. jets and whether Carrier Corp. assembles furnaces in Indiana. AT&T Inc. Chief Executive Randall Stephenson recently met with Mr. Trump, who had expressed concerns about the telecom giant’s proposed purchase of Time Warner Inc.

In other words, rather than worrying about pleasing consumers, auto companies are spending all their time figuring out how to please the occupant of the White House.  This sounds more like corporate life in Venezuela than the US.  It is absurd that Trump claims to be about reducing regulation, and then personally intervenes to micro-manage corporate division-of-labor and sourcing decision.

We need new consumer activist organizations.  The classic ones, like Nader's PIRG, are captured by progressives and economic illiterates.  Economic nationalism and tariffs and reduced immigration and border taxes and elimination of free trade treaties are all direct assaults on the American consumer.  Do all the Midwestern folks who voted for Trump ostensibly because they are struggling economically really want 20% higher prices in their Wal-Mart?

Postscript:  By the way, for a moment let's accept this awful situation.  Consider women's groups (as discussed here) and their response to Trump and Ford's response.  Which is more likely to succeed?  If abortion were my #1 issue (as it is for my wife), I would be seriously concerned that women's groups were using all the wrong tactics.  Trump is petulant.  He does not back down based on protests, he moves you up the target list.   This is a terrible, awful character flaw, but it is reality.  If women's groups had calmly sat down with Trump in a back room and worked out a deal (with a man who is a lifelong social liberal) they would probably be further ahead.

Coyote's first rule of government authority: Never support any government power you would not want your ideological enemy wielding

Way back in 2014 I wrote:

I often wonder if Democrats really believe they will hold the White House forever.  I suppose they must, because they seem utterly unconcerned, even gleeful in fact, about new authoritarian Presidential powers they would freak out over if a Republican exercised.

Coyote's first rule of government authority:  Never support any government power you would not want your ideological enemy wielding.

As Damon Root writes:

In December 2007 presidential candidate Barack Obama told The Boston Globe that if he won the 2008 election, he would enter the White House committed to rolling back the sort of overreaching executive power that had characterized the presidency of George W. Bush. "The President is not above the law," Obama insisted.

Once elected, however, President Obama began to sing a different sort of tune. "We're not just going to be waiting for legislation," Obama announced. "I've got a pen and I've got a phone...and I can use that pen to sign executive orders and take executive actions and administrative actions."...

To make matters worse, many of Obama's fervent liberal supporters pretended to see nothing wrong with such obvious abuses of executive power. For example, consider the behavior of the prestigious editorial board of The New York Times. Back in 2006, when George W. Bush had the reins, the Times published an unsigned editorial lambasting Bush for his "grandiose vision of executive power" and his foul scheme to sidestep the Senate and unilaterally install his nominees in high office. "Seizing the opportunity presented by the Congressional holiday break," the Times complained, "Mr. Bush announced 17 recess appointments—a constitutional gimmick."

But guess what the Times had to say a few years later when President Obama had the reins and he utilized the exact same gimmick? "Mr. Obama was entirely justified in using his executive power to keep federal agencies operating," the Times declared in defense of Obama's three illegal appointments to the National Labor Relations Board. (Those three NLRB appointments, incidentally, were ruled unconstitutional by a 9-0 Supreme Court.)

I remember a conversation with my mother-in-law, who is a fairly accurate gauge of New England Left-liberal thought.  She was absolutely adamant that the Republican Congress, from the very beginning, had dug in and refused to work with Obama and that the resulting gridlock gave Obama the absolute right to work around Congress and govern by fiat.   I remember asking her, are you comfortable giving President Lindsey Graham that power too? (Trump was not even a glimmer in the eye of the body politic at that point so Graham was the best Republican bogeyman I could think up on short notice).  I don't remember an answer to this, which reinforced the sense I had at the time that Democrats honestly did not think they would lose the White House in their lifetimes -- I suppose they thought that 8 years of Obama would be followed by 8 years of Clinton.

Well, the freak out is officially here and I will happily embrace all Democrats who want to make common cause in limiting Presidential power.

 

Update:  Glenn Greenwald makes many of the same points

Sen. Barack Obama certainly saw it that way when he first ran for president in 2008. Limiting executive-power abuses and protecting civil liberties were central themes of his campaign. The former law professor repeatedly railed against the Bush-Cheney template of vesting the president with unchecked authorities in the name of fighting terrorism or achieving other policy objectives. “This administration also puts forward a false choice between the liberties we cherish and the security we provide,” he said in 2007. Listing an array of controversial Bush-Cheney policies, from warrantless domestic surveillance to due-process-free investigations and imprisonment, he vowed: “We will again set an example for the world that the law is not subject to the whims of stubborn rulers.”

Yet, beginning in his first month in office and continuing through today, Obama not only continued many of the most extreme executive-power policies he once condemned, but in many cases strengthened and extended them. His administration detained terrorism suspects without due process, proposed new frameworks to keep them locked up without trial, targeted thousands of individuals (including a U.S. citizen) for execution by drone, invoked secrecy doctrines to shield torture and eavesdropping programs from judicial review, and covertly expanded the nation’s mass electronic surveillance.

Blinded by the belief that Obama was too benevolent and benign to abuse his office, and drowning in partisan loyalties at the expense of political principles, Democrats consecrated this framework with their acquiescence and, often, their explicit approval. This is the unrestrained set of powers Trump will inherit. The president-elect frightens them, so they are now alarmed. But if they want to know whom to blame, they should look in the mirror.

Dispatches from the Crony State

From the Daily Beast

For some wealthy donors, it doesn’t matter who takes the White House in 2016—as long as the president’s name is Clinton or Bush.

More than 60 ultra-rich Americans have contributed to both Jeb Bush’s and Hillary Clinton’s federal campaigns, according to an analysis of Federal Election Commission data by Vocativ and The Daily Beast. Seventeen of those contributors have gone one step further and opened their wallets to fund both Bush’s and Clinton’s 2016 ambitions.

After all, why support just Hillary Clinton or just Jeb Bush when you can hedge your bets and donate to both? This seems to be the thinking of a group of powerful men and women—racetrack owners, bankers, media barons, chicken magnates, hedge funders (and their spouses). Some of them have net worths that can eclipse the GDPs of small countries.

Ideology, policy prescriptions, legislative plans -- nothing matters except influence.  This will always happen as long as we give politicians so much power.  Its why the Coke and Pepsi party look so similar today.   At least a few people are noticing:

Is there a single person alive who believes that corporations, trade associations, NGOs, unions, and the like pay the Clintons enormous sums for speeches because they believe their members actually want to hear the Clintons say the same tedious talking points they have been spewing for years? If that were the only value received no profit-minded enterprise would pay the Clintons these vast fees because they would earn, well, a shitty rate of return.

No, the Clintons are not paid to speak. Businesses and other interest groups pay them for the favor of access at a crucial moment or a thumb on the scale in the future, perhaps when it is time to renew the Ex-Im Bank or at a thousand other occasions when a nod might divert millions of dollars from average people in to the pockets of the crony capitalists. The speaking is just a ragged fig leaf, mostly to allow their allies in the media to say they “earned” the money for “speaking,” which is, after all, hard work.

We have such people as the Clintons (and the tens of thousands of smaller bore looters who have turned the counties around Washington, D.C. in to the richest in the country) because they and their ilk in both parties have transformed the federal government of the United States in to a vast favors factory, an invidious place that not only picks winners and losers and decides the economic fates of millions of people, but which has persuaded itself that this is all quite noble. Instead, the opposite is true: This entire class of people, of which the Clintons are a most ugly apotheosis, are destroying the country while claiming it is all in the “public service.” It is disgusting. We need to say that, at least, out loud. . . .

Tear down the aristocracy of pull. This may be our last chance.

Kudos to Jeff Flake on Cuba

I missed this story originally but saw it pop up on our local news again.

Mr. Flake, who has spent a decade in a lonely battle against his party to push for easing restrictions on Cuba, is the chief Republican defender of the new Obama policy. White House officials are counting on him to make their case to his party’s rank and file, even as Republican leaders and Cuban-American lawmakers, like Senator Marco Rubio, Republican of Florida, threaten to keep the president from appointing an ambassador or funding an embassy in Havana.

At a Capitol Hill hearing presided over by Mr. Rubio on Tuesday, the two men sat next to each other, somewhat awkwardly, as Mr. Rubio grilled administration officials on a policy he has called a “concession to tyranny.” But even before the hearing, Mr. Flake had moved ahead: Last week he filed a bill to end the decades-old ban on American travel to the Communist island nation.

Good.  The Cuba embargo has been a big, obvious, sustained failure.  While we have embargoed them they have moved no closer to freedom, while scores of countries with which we actively engage have become more free, in large part due to the effect of engagement by their citizenry with the West.

Flake really is an engaging guy.  I watched him at a taping of the NPR game show "Wait, wait, don't tell me" and he charmed an audience of NPR Democrats.

Thanks to Harry Reid

Harry Reid should be thanked for admitting the sort of behavior everyone knows exists but none will confess.  The amazing thing to me is what yawns this elicits from the media:

Harry Reid, the top Democrat in the Senate, was asked by CNN’s Dana Bash this week if he regretted his 2012 accusation on the Senate floor that GOP presidential nominee Mitt Romney “hasn’t paid taxes for ten years.” Reid presented no evidence at the time and claimed he didn’t need any: “I don’t think the burden should be on me. The burden should be on him. He’s the one I’ve alleged has not paid any taxes.”

Reid’s response in the interview was fascinating. When asked by Bash if his tactic was McCarthyite he visibly shrugged on camera, smiled, and said “Well, they can call it whatever they want. Romney didn’t win, did he?” White House spokesman Josh Earnest refused to criticize Reid for his comment because it “was three years old,” when in reality Reid’s televised reveling in it was only three days old.

Net Neutering: Isn't It Great That This Old Lady Is Going To Take Us To Her House And Give Us Candy?

I read a number of tech sites like Engadget every day, and am just shocked at the continued happy puppy reactions to the FCC's takeover of the web.  The articles can all be summarized as "Hey, isn't it awesome this old lady is taking us to her house in the woods and giving us free candy?"

Daniel Henninger shares my reaction:

Washington’s seizure of the Internet is one of the great case studies in the annals of political naïveté.

Over several years, leading lights of the Web—among them Netflix,Google and Tumblr—importuned the Obama White House to align itself with the cause of net neutrality.

“Net neutrality,” like so many progressivist-y causes—climate change, health care for all—is a phrase designed to be embraced rather than understood.

But net neutrality had real meaning. Its core idea was that the U.S. Federal Communications Commission, a Washington agency whose employees have been regulating communications since 1934, should design and enforce a price mechanism for the Internet. Up to now, nobody did that.

In February the FCC did, and on that day the Little Red Riding Hoods of net neutrality found out what big teeth grandma has. The FCC said its plans to regulate the Web were in a 332-page document, which no one can see until the agency is ready....

Mr. Karp and the rest of the 20-something and 30-something Peter Pans in the app development world should find their way to the 80-something communications lawyers and lobbyists retired in Florida for a tutorial on what it’s like trying to get Washington off your back once it has climbed on. Here’s the tweet-length version: You are going to pay and pay and pay. To save you, Washington will bleed you....

No one can do business until they first run it through the Beltway bosses. For the K Street corridor, it’s the golden age all over again.

As I wrote before, isn't anyone in tech worried that the government used a semi-imaginary problem that perhaps required a flyswatter to address to justify acquiring 16-inch naval guns?

Gender Pay Gap a Myth

At first, the link I followed told me this story was from CBS.  I found it astonishing that a major news network would challenge a previously agreed on Obama Administration narrative, and sure enough I found that this was not actually from the people at CBS who are paid to write the news (they are too busy reprinting White House talking points) and is actually from one of their financial bloggers.

Never-the-less, it is a great post that gets at why every serious academic study tends to debunk the 77% gender pay gap myth.   All of it is good but the consistently most powerful point that I tend to use if I am only given time in an argument to make one point is this one:

Despite all of the above, unmarried women who've never had a child actually earn more than unmarried men, according to Nemko and data compiled from the Census Bureau.

Women business owners make less than half of what male business owners make, which, since they have no boss, means it's independent of discrimination. The reason for the disparity, according to a Rochester Institute of Technology study, is that money is the primary motivator for 76% of men versus only 29% of women. Women place a higher premium on shorter work weeks, proximity to home, fulfillment, autonomy, and safety, according to Nemko.

It's hard to argue with Nemko's position which, simply put, is this: When women make the same career choices as men, they earn the same amount as men.

One would think that this quote from Obama's own Department of Labor would be enough to kill this meme:

"This study leads to the unambiguous conclusion that the differences in the compensation of men and women are the result of a multitude of factors and that the raw wage gap should not be used as the basis to justify corrective action. Indeed, there may be nothing to correct. The differences in raw wages may be almost entirely the result of the individual choices being made by both male and female workers."

Regulatory Deception

Kevin Drum quotes Politico about a coming series of Administration environmental diktats:

...The administration was committed to its upcoming deadlines many months ago, in some cases under court order, after postponing a number of the actions until after the 2012 or 2014 elections. Now that Obama is almost out of time, they’re coming all at once.

The whole "under court order" and "our of time" thing is an scam.  The Administration colludes with environmental groups to sue them demanding some regulation the Administration wants but knows it can't get through the regular legislative or regulator process.  The Administration immediately rolls over in the suit and settles, agreeing to implement the regulation it wanted in the first place.  Then it can claim the settlement of the court suit "requires" them to proceed with these regulations.  I can't tell if I should be embarrassed for the reporter writing this that they are so ignorant of how these suits work or angry that the reporting is essentially colluding in this deceptive practice.

I often wonder if Democrats really believe they will hold the White House forever.  I suppose they must, because they seem utterly unconcerned, even gleeful in fact, about new authoritarian Presidential powers they would freak out over if a Republican exercised.

Coyote's first rule of government authority:  Never support any government power you would not want your ideological enemy wielding.

Equal Protection Under the Law?

Equal protection means that the same law applies to everyone, at least in theory.  But compare these two stories:

1. Exxon fined $600,000 for 85 bird deaths in five states over five years

Exxon Mobil has agreed to pay $600,000 in penalties after approximately 85 migratory birds died of exposure to hydrocarbons at some of its natural gas facilities across the Midwest.

The fine amounts to about $7,000 per dead bird.

The oil company pleaded guilty to causing the deaths of waterfowl, hawks, owls and other protected species, which perished around natural gas well pits or water storage areas in Wyoming, Kansas, Oklahoma, Colorado and Texas over the last five years....

“We are all responsible for protecting our wildlife, even the largest of corporations,” said David M. Gaouette, the United States attorney in Colorado, in a statement accompanying the Justice Department’s announcement.

We are all responsible for protecting our wildlife... except if we are politically-favored solar companies with strong ties to the Obama White House

2. No fines for solar power plant that may be killing 28,000 birds a year

A common sight in the sky above the world's largest solar thermal power plant is a "streamer," a small plume of smoke that occurs without warning. Closer inspection, however, reveals that the source of the smoke is a bird which has inadvertently strayed into the white-hot heat above the plant's many reflecting mirrors. Because the BrightSource Energy plant near Ivanpah uses supercritical steam rather than photovoltaic energy, the sun's heat is reflected off more than 300,000 mirrors to a single point, which is used to drive a steam turbine. The downside of that, of course, is that it's lethal for any wildlife that strays into the picture -- a problem that was recognized well before the facility opened, but now the government has gotten involved.

Government wildlife inspectors believe that insects are drawn to the highly reflective mirrors, which in turn lures local birds to their doom. BrightSource feels that the issue has been overblown, claiming that only 1,000 living creatures will die in a year, but the Center for Biological Diversity believes the actual figure is closer to 28,000. The US Fish and Wildlife service is pushing for more information and an accurate calculation of the deaths before California grants the company any more permits for solar plants.

You can see from the last line that the Feds don't seem to be even considering a penalty, but are just considering whether they should permit such plants in the future.  If the 28,000 figure is correct, this company should be getting $196 million in fines (the Exxon rate of $7000 per bird)  if there was any such thing as equal protection.  Even the company's admitted figure of 1,000 a year is almost 60 times as high as Exxon was penalized for, despite the fact that Exxon experienced the deaths across hundreds of locations in five states and this is just one single solar plant.

The same alternate standard is being applied to the wind energy industry, as I wrote a while back here.

Trend That Is Not A Trend: Wildfires (At Least Not This Year)

From the White House:

click to enlarge

From the Federal Government's National Inter-agency Fire Center wildfire tracking page today

click to enlarge

 

The White House letter demonstrates the behavior that drives me crazy and caused me to start this feature in the first place.  They point to 14 fires in California and imply that this proves some kind of trend.  But how can an individual data point say anything about a trend?  In fact, as you can see above, there almost 50,000 wildfires by this point each year.  So what does the existence of 14 mean, one way or another, in establishing a trend?

Just to show that I don't underestimate the impact of fire, one of these two fires referenced in the White House letter is actually threatening my business near Burney, California and has caused us substantial losses due to lost revenue (for some odd reason people don't like to come out to a park when the air is filled with smoke and ash -- go figure).

 

 

PS -- There is an upward trend in the data vs. the 1950s and 1960s which is likely tied somewhat to climate but also somewhat to forest management practices.  Academics have had trouble separating the two.

 

Obama's Demand for Wage Rules for Salaried Workers Will Have Far More Impact Than Proposed Minimum Wage Changes

The $10.10 minimum wage discussion has gotten a lot of attention.   But in 2011 only 3.8 million workers made at or below the minimum wage, and of these, at least half earn substantially more in reality through tips.

Obama's announcement yesterday that he wanted to substantially change the way salaried workers will likely have far more negative impacts on employment than his minimum wage proposals.

President Barack Obama is expected to order a rule change this week that would require employers to pay overtime to a larger number of salaried workers, two people familiar with the matter said.

Currently, many businesses aren't required to pay overtime to certain salaried workers if they earn more than $455 a week, a level that was set in 2004 and comes to roughly $24,000 a year. The White House is expected to direct the Labor Department to raise that salary threshold, though it is unclear by how much.

Ross Eisenbrey, vice president of the liberal Economic Policy Institute, and Jared Bernstein, a former White House economist, recently proposed the limit be increased to $984 a week, or roughly $50,000 a year.

"That would mean between five- and 10-million people could be affected, but they might choose a lower number," Mr. Eisenbrey said about the White House plans.

5-10 million is potentially 3x or more the people affected by a minimum wage change.  But in some sense, this still underestimates the impact.  Here is one example.  Last year the average starting salary of college graduates is about $45,000.  The median is likely lower.  This means that over half of all college graduates going into the work force will be taking hourly jobs that used to be salaried.   Teachers will be hourly.  Budget analysts will be hourly.  Etc.

So all these folks are saying - Yeah!  I get overtime!   Wrong.  They will be eligible for overtime.  But companies will quickly restructure their work processes to make sure no one works overtime.  And since their new hires are working just a straight 40 hours (with mandatory unpaid lunch break time in CA), they will likely pay less.   If I am paying $40,000 a year for someone who will work extra hours for me, I am not going to pay that amount to someone just punching a time clock.  And the whole psychological relationship is changed - a salaried person is someone on the management team.  A person punching a timeclock may not be treated the same way.

Further, when someone gets switched from salary to hourly, they lose a minimum pay guarantee.  When I get a $3,500 a month offer, I know that no matter how slow things are, until I am fired I get $3500 a month.  There is a floor on my earnings.  As an hourly worker, my hours can be adjusted up or down constantly.  There is no floor at all.

Oh, and by the way, remember Obamacare?  The PPACA penalizes companies who do not provide a health plan that meets certain (expensive) criteria.  But that penalty is not applied for workers who are "part-time" or work less than 30 hours a week.  Salaried workers are automatically full time.  But once you convert all those people to hourly and make sure they are working no more than 40 hours a week, is it really so large a step to getting them under 30 hours a week?

PS-  Well, for those who think schools assign too much homework, this could well be the end of homework.  The most dangerous possible thing with hourly workers is to give them the ability to assign themselves unlimited overtime.  Teachers could do this at home with grading papers.  If I were a school, I would ban teachers from doing any grading or schoolwork prep at home -- after all, it's hourly and probably overtime and they could work unlimited hours at home and how would you get it under control?  The only way to manage it would be to ban it entirely.

PPS- What about travel?  Would you ever let workers paid hourly travel?  You would have to pay all the travel time and maybe part of the hotel time and there would be huge potential for ending up with overtime bills so better to just ban travel all together.  I know this seems knee-jerk to ban something that might impose a lot of extra labor costs seems extreme, but just look at California.  In California, employees have the right to a half-hour lunch break without work.  They can work through lunch if they choose, but courts have imposed enough onerous reporting standards around this that most companies (like mine) have just banned working through lunch.  It is a firing offense in my company, and in many others in CA, to be caught working during lunch.  We are going to see the same thing working from home.  In fact, we already see this, as there are class actions right now against companies who provided employees with cell phones saying that giving them a cell phone put them "on call" and subject to overtime hours that had to paid at home.  Companies are now making it a firing offense to take one's company cell phone home.

Sorry this post is so disorganized, but this initiative caught be by surprise and I have not been thinking about it for very long.  I will try to work out a more rigorous article in the next few weeks.

One Thing I Got Wrong About Obamacare

For several years I have feared that my high-deductible health insurance would be illegal.  I am a big believer in high deductible insurance.  First, it is real insurance, requiring that I pay day-to-day expenses but protecting me from catastrophic bill.  Second, it improves the health care system by providing incentives for consumers to actually price-shop services.

Well, I was wrong.  In fact, most people see to be getting higher deductibles than they want.

My only excuse is that the Obama Administration has acted for three years as if they hated high-deductible health coverage and were planning to make it go away.  Kathleen Sebelius has said on a number of occasions that it is not "real insurance" (she believes that insurance should actually be pre-paid medical care).  Seriously, here is an example of what she was saying:

At a White House briefing Tuesday, Health and Human Services Secretary Kathleen Sebelius said some of what passes for health insurance today is so skimpy it can't be compared to the comprehensive coverage available under the law. "Some of these folks have very high catastrophic plans that don't pay for anything unless you get hit by a bus," she said. "They're really mortgage protection, not health insurance."

She is saying this all while the policies being prepared for the exchange were exactly the kind of coverage she was speaking out against.  And she had to know -- I cannot believe a former state insurance commissioner was not looking at what policies were being prepared for the exchange.  After all, her organization made the last minute decision to hide policy pricing from the public (e.g. deleted the window shopping functionality) and this almost certainly was in response to seeing the policies being prepared for the exchange and realizing the pricing and features were not going to make people happy.

By the way, there is a certain schizophrenia here that is entirely political:  These new policies have a $10,000 deductible, but they pay 100% for condoms?    They may well be creating a combination of catastrophic insurance and pre-paid medical care that has the worst of both approaches.

Politicians lie.  But what is it about this administration that lies in ways that are inevitably going to be discovered, in just a few months?  Can they really be so focused on getting through each individual news cycle that this kind of behavior makes sense?

Filibuster Rolled Back

Well, the Senate voted to effectively end the filibuster (or I presume to end the need for 60 votes for cloture) with respect to votes on Presidential nominations that require Senate approval.

As a libertarian, I am generally a big fan of the filibuster rules.  Anything that can slow the relentless march of more and more legislation is a good thing.

That said, I have always been uncomfortable with the filibuster rules as applied to basic Senatorial tasks, particularly the need to approve Presidential appointees.  I think that the Senate reasonably owes the President a timely vote on nominations, so I think from a good government standpoint, this makes sense.

And that being said, the problem is the incredibly extra-Constitutional powers that have been given to certain administrative functions.  I can't argue with filling judge positions in a timely manner, or getting a new Secretary of State hired, but some of the Administrative agencies have acquired to themselves such crazy, unchecked, arbitrary power that the only way to dial them back at all is to try to keep them unfilled.  The filibuster was really the last check available to the minority party on agencies run wild.

So I have mixed feelings.  The Republicans overplayed their hand on some nominations that probably don't matter much while Democrats have convinced themselves that they are never going to lose the White House again so this is one expansion of majority power that will never benefit the Republicans.