Markets vs. Regulation
My Forbes article is up this week and uses my company's vendors to compare the power of markets vs. government regulation. A small excerpt:
I am assuming that many readers will have already spotted what these three vendors have in common: all are either highly-regulated government-enforced monopolies (in the case of liquor wholesaling and electric power) or government agencies themselves. As a consumer, I get the worst deal from my vendors in direct proportion to how heavily regulated they are.
GRRRRRR
I grew up in Houston. Around and embedded in Houston are a number of small cities and villages with their own police forces. You generally really, really did not want to encounter these folks. They often hired the dregs of large police forces, preferentially taking the hard cases even the larger forces could not tolerate. I remember the small village next to my high school hired one of the Houston Police officers who beat Joe Campos Torres to death (after Texas courts gave the two leaders of the beating probation and at $1 fine for killing the Vietnam vet). These police forces are famous for their hostility to non-whites.
So it comes as no surprise, but never-the-less with great irritation, to see another such Houston-area independent city (in this case Bellaire) refusing to punish criminal officers who gunned down an innocent man in his own driveway for the apparent crime of driving while black
Cop runs license check on a suspicious vehicle. Although they apparently committed no traffic violation, cop insists that his decision to run a check had nothing to do with the fact that the occupants were black, and happened to be driving in an affluent, predominately white neighborhood. The cop’s partner apparently then enters the wrong license number, which returns a car that had been reported stolen. So cop follows car into driveway, which happens to be the home of the driver’s parents, where he lives. Cop approaches driver and occupant with his gun drawn. Driver’s parents come out to see what’s causing the commotion. Cop roughs up driver’s mother. Driver gets up from ground to tell cop to lay off of his mother. Cop shoots driver, a full 32 seconds after pulling into the driveway.
The driver, who was unarmed, will now carry a bullet in his liver for the rest of his life. The cop was charged with first degree aggravated assault. A jury acquitted him. Now this week, U.S. District Judge Melinda Harmon dismissed the driver’s lawsuit against both the cop that fired his gun and the cop who entered the wrong license plate number, citing qualified immunity. According to Harmon, the officer acted “reasonably,” and moreover, wrongly accusing an unarmed man of stealing a car, pointing a gun at him, then shooting him in the liver, “did not violate [his] constitutional rights.”
Both cops are back on the force. The guy with the bullet in his liver? Tough luck. He’ll be paying his own medical bills.
Republicans are Just Like Democrats -- AZ Version.
As I mentioned the other day, I sometimes have this fantasy that we have some sort of libertarian streak in the Arizona Republican party. The Goldwater Institute and Jeff Flake give me hope. But then the Arizona legislature gets to work and my hopes are dashed.
A big national Republican issue is the excessive power Congress has delegated to the EPA and FDA to regulate and ban substances, from BPA to CO2. So what do the Republicans do in AZ? They propose a law to give an un-elected bureaucracy the power to willy nilly ban substances without a bit of legislative oversight.
The legislature had previously outlawed 30 chemicals that could be used to make the "bath salts"-type mixtures, and dropped another eight substances on the bill Governor Jan Brewer signed last month.
As Boca Raton Florida-based attorney Thomas Wright III told New Times shortly before Brewer signed the legislation, "To suggest they're putting a ban on bath salts is dumbing down the general public."
Republican state Senator Linda Gray is now explaining this to everyone, as she's proposed a new method to attempt banning "bath salts."
House Bill 2388 is the new hope, which would allow the state's Board of Pharmacy and the Department of Public Safety to ban the sales of chemical substances at their pleasure.
According to a Senate fact sheet, the pharmacy board "must make a formal finding that the chemical composition defined by the Board has a potential for abuse and submit the finding to DPS."
The pharmacy board then has to "consult" with DPS about its proposed rule, and that's that. The board just has to let the governor and the legislature know once a year which chemicals it's decided to ban.
So after all the concern about regulation voiced by Republicans about the EPA, they are giving even more sweeping powers to... the Board of Pharmacy and the Department of Public Safety? This should be all the proof you need that the Coke and Pepsi party have equivalent authoritarian streaks. As many other libertarians have observed, the Republicans have a healthy distrust of government, except when it comes to anyone such as the DPS or military that carries a gun, and then they are willing to hand over infinite trust and authority.
In many ways, this law is exactly like the environmental laws Republicans hate that require detailed analyses of potential harms but no counterveiling analysis of benefits. In this case, the Pharmacy board is required to analyze the potential for abuse of chemicals but there is absolutely no language requiring any consideration of the benefits of the substance's use or legality. By the language of the law, if there is a potential for abuse, it must be banned no matter how otherwise useful the product is or could be.
Great Achievements in American Capitalism
It is hard to even describe to younger folks what a wasteland the American beer market was in the early 1980's. Via here
I Have A Lot of Respect for Free Speech Lawyers
According to Ken and Popehat, Eugene Volokh is defending Crystal Cox in a free speech case. Here is some background on Ms. Cox. In discussing Volokh's defense, Ken makes the same point I have on many occasions:
Crystal Cox is not a sincere supporter of free speech. Crystal Cox is not a defender of the First Amendment. Crystal Cox supports free speech for Crystal Cox, but for her own critics, Crystal Cox is a vigorous (if mostly incoherent) advocate for broad and unprincipled censorship.
This should not surprise us. As I mentioned before, free speech cases often involve defending vile speech by repugnant people. Nearly as often, those repugnant people are no respecters of the rights of anyone else. Do you think the Nazis who marched at Skokie, if they had their way, would uphold the free speech rights of the religious and ethnic minorities who protested them? Do you imagine that Fred Phelps' church, given its choice, would permit the blasphemous and idolatrous freedoms it rails against?
No. We extend constitutional rights to people who, given the opportunity, would not extend the same rights to us. That's how we roll.
Crystal Cox is no different. Eugene Volokh and the Electronic Frontier Foundation are appealing the judgment against her to vindicate (through however flawed a vessel) important free speech issues.
But it is one thing for me to blog that everyone, including Illinois Nazis and Crystal Cox, should have free speech rights. It's quite another to actually spend days of one's time on a pro bono basis actually handling her legal work. So kudos to Volokh -- we all know the sewers need to be cleaned out from time to time but few of us actually will jump in and do it.
Greatest Corporate Value Proposition Ever
Flying Robots Deliver Tacos To Your Location
If this is an April Fools joke, I am going to cry.
That Constitution Thingie
I missed this from Volokh a while back, but since our Con-law-professor-in-chief has done so poorly defending the Constitutionality of the PPACA, someone gave Congress a crack at the job:
Most of us know that when then-Speaker Pelosi was asked where the Constitution gives Congress the power to enact an “individual mandate,” she replied with a mocking “are you serious? Are you serious?”
Here are a few more pearls of constitutional wisdom from our elected representatives.
Rep. Conyers cited the “Good and Welfare Clause” as the source of Congress’s authority [there is no such clause].
Rep. Stark responded, “the federal government can do most anything in this country.”
Rep. Clyburn replied, “There’s nothing in the Constitution that says the federal government has anything to do with most of the stuff we do. How about [you] show me where in the Constitution it prohibits the federal government from doing this?”
Rep. Hare said “I don’t worry about the Constitution on this, to be honest [...] It doesn’t matter to me.” When asked, “Where in the Constitution does it give you the authority …?” He replied, “I don’t know.”
Sen. Akaka said he “not aware” of which Constitutional provision authorizes the healthcare bill.
Sen. Leahy added, “We have plenty of authority. Are you saying there’s no authority?”
Sen. Landrieu told a questioner, “I’ll leave that up to the constitutional lawyers on our staff.”
Is the Real Intent of Cyber-Bullying Laws to Eliminate Criticism of Politicians?
Ken over at Popehat had a great article about a proposed cyber-bullying law in Connecticut. While he later reports the bill may have died in committee, it is still instructive to look at it, as its twin may well get passed in AZ and many other states are proposing such laws faster than the little animals pop up in a whack-a-mole game.
I am becoming increasingly convinced that these are all stealth attempts to protect politicians and public officials from criticism. Look at the proposed law in CT:
(a) A person commits electronic harassment when such person, with intent to harass, annoy or alarm another person, transmits, posts, displays or disseminates, by or through an electronic communication device, radio, computer, Internet web site or similar means, to any person, a communication, image or information, which is based on the actual or perceived traits or characteristics of that person, which:
(1) Places that person in reasonable fear of harm to his or her person or property;
(2) Has a substantial and detrimental effect on that person's physical or mental health;
(3) Has the effect of substantially interfering with that person's academic performance, employment or other community activities or
responsibilities;
(4) Has the effect of substantially interfering with that person's ability to participate in or benefit from any academic, professional or community-based services, activities or privileges; or
(5) Has the effect of causing substantial embarrassment or humiliation to that person within an academic or professional community.
One of the tricks of these laws is to mix and thereby conflate outrageous behavior most all of us are willing to restrict (e.g. make a credible threat to someone's life) with everyday behaviors such as annoying people.
Let's say I were to write in my blog that, say, Joe Arpaio is an jerk and should not get re-elected. Let's analyze the statement
- It's transmitted electronically
- It will very likely annoy Arpaio, since he is known to be annoyed by all criticism
- I am trying very hard to interfere with his employment by preventing his re-election
By this law, therefore, even this relatively mild criticism is illegal. In fact, since all criticisms of politicians can be said to negatively affect their re-election chances, by part 3 any political criticism online would be illegal.
I honestly don't think this is a bug, it is a feature. Already police departments and other public officials are using cyber-bullying laws to stomp on those who criticize them.
Make Men Pay
After some noodling with 30 year term policies for 50-year olds fitting my wife and my descriptions, the Coyote think tank has unearthed this devastating chart:
This is based on quotes for $1,000,000 in term insurance on a 30-year policy as quoted at Quickquote.com for a fifty-year-old man and woman (male: $2990, female $2020 or 48% more expensive for men).
What is your reaction to this? If it is something like, "no sh*t, women live longer so their insurance is going to be cheaper," then you are a normal rational human being that understands that more expensive risks require higher premiums.
But the Obama administration does not see things this way at all. More expensive premiums for more expensive risks are used by the administration to demagogue to favored constituency groups that they are somehow being hosed and only Obama can protect them. I mean, why else would the Administration release this chart:
Just a few weeks ago a grad student from Georgetown became famous for talking about all the expensive and special needs that women have that need to be covered in health insurance. So of course their insurance is more expensive.
Here is a perfectly accurate way to re-label this chart
So here is the Obama algorithm. If men are more expensive to insure, men should pay the difference. If women are more expensive to insure, men should pay the difference.
Totally Irresponsible
I am seldom surprised at NBC's behavior -- after all, this is the network that ran the exploding pickup truck story, only to admit later that it put model rocket engines in the fuel tanks to ignite the cars during simulated crashes because the they weren't catching fire on their own.
But NBC's editing of the Zimmerman 911 tapes to make them more inflammatory really sets a new low. The country was practically on the verge of race riots, with groups actually posting dead-or-alive bounties for Zimmerman, and NBC purposefully edited the tape from neutral to incendiary?
U. of Rochester Solar Table -- 3,846 Years To Break-even
Professor Rizzo was keen that I check out the $12,000 solar picnic table at University of Rochester
Most kids use this to hook up their laptops. Here are a few assumptions
- 3 hours of use per day (heroic, I am pretty sure it is less than this)
- 65 watt draw from one laptop
- 160 days with sun (Rochester is apparently in the top 10 US cities for number of heavy cloud days)
- 10 cents per kw-hour
This means the table would produce 31,200 W-hr per year or 31.2 KW-hr per year. This yields an annual electricity savings of $3.12, giving the table a payback time on its investment of 3,846 years. If one assumes a cost of capital anywhere north of 0.026% per year, then the sun will go dark before this table pays itself off.
Thanks to the U. of Rochester Hamilton [sic] Society
I want to thank Professor Mike Rizzo and members of the University of Rochester Alexander Hamilton [sic] Society for having me up to speak last week. I had an awesome time touring campus, some quality pub time with some of the students, some really good donuts, and then a speaking engagement followed by literally hours of questions and discussions. Here are some of us out the next day hiking the waterfront (Professor Rizzo is fourth from the right). This is at a "lighthouse" which I had expected to be some sexy Maine-type thing but turned out to be a 3-foot wide steel column with a blinking red light on top. We are on one of the breakwaters at the mouth of the Genessee River as it pours into Lake Ontario.
Professor Rizzo teaches four economics courses, including a couple of the introductory survey courses, and many students go out of their way to take all four, even if they are not even in the department. The group had an incredible vibe, the kind of student-professor learning group we all thought would be typical of college but most of us seldom actually encountered. It reminded me of Dead Poet's Society, except with economics rather than poetry and without the suicides.
In addition to being a popular professor, Rizzo also is a vastly outnumbered campus defender of individual liberty and economic sanity. I can't tell me how many kids told me they had been converted to the cause of free market economics by Professor Rizzo.
Professor Rizzo is also a constant campus gadfly on cost-benefit sensibility. Featured in an upcoming post will be a U of R solar charging station that was one of Rizzo's favorite targets. Which brings us to the issue of the group's name and why I keep writing [sic]. Apparently creating a new campus organization and 501c3 was way too costly, so they just piggy-backed on an existing group, despite the incongruity of the "Alexander Hamilton" name on a group generally dedicated to exploring small government.
I seem to be having some odd problem subscribing to his feed in Google Reader (all I get is Viagra Spam) but his blog is here: The Unbroken Window. Update: I could never get his feed to work for me so I burned a new one on my feedburner account. http://feeds.feedburner.com/UnbrokenWindow
The Positive Result Bias
This is a pretty well-known non-secret among about anyone who does academic research, but Arnold Kling provides some confirmation that there seems to be a tremendous bias towards positive results. In short, most of these can't be replicated.
A former researcher at Amgen Inc has found that many basic studies on cancer -- a high proportion of them from university labs -- are unreliable, with grim consequences for producing new medicines in the future.
During a decade as head of global cancer research at Amgen, C. Glenn Begley identified 53 "landmark" publications -- papers in top journals, from reputable labs -- for his team to reproduce. Begley sought to double-check the findings before trying to build on them for drug development.
Result: 47 of the 53 could not be replicated. He described his findings in a commentary piece published on Wednesday in the journal Nature.
"It was shocking," said Begley, now senior vice president of privately held biotechnology company TetraLogic, which develops cancer drugs. "These are the studies the pharmaceutical industry relies on to identify new targets for drug development. But if you're going to place a $1 million or $2 million or $5 million bet on an observation, you need to be sure it's true. As we tried to reproduce these papers we became convinced you can't take anything at face value."...
Part way through his project to reproduce promising studies, Begley met for breakfast at a cancer conference with the lead scientist of one of the problematic studies.
"We went through the paper line by line, figure by figure," said Begley. "I explained that we re-did their experiment 50 times and never got their result. He said they'd done it six times and got this result once, but put it in the paper because it made the best story. It's very disillusioning."
This is not really wildly surprising. Consider 20 causal relationships that don't exist. Now consider 20 experiments to test for this relationship. Likely 1 in 20 will show a false positive at the 95% certainty level -- that's what 95% certainty means. All those 1 in 20 false positives get published, and the other studies get forgotten.
To some extent, this should be fixable now that we are not tied to page-limited journals. Simply require as a grant condition that all findings be published online, positive or negative, would be a good start.
Relapse
My flu from last week seems to have migrated to my chest. Lots of coughing, fever, and right now I can hardly talk. Yuk.
Another One Bites the Dust
Another solar company which received $2.1 billion in loan guarantees from the Obama Administration has gone bankrupt. The good news is that it has not spent much of that taxpayer money, and its bankruptcy is probably due more to the bankruptcy of its German parent, which in turn is likely related to the huge cuts Germany has made in its feed-in tariff subsidies.
The big asset possessed by Solar Trust is the Blythe solar project, a planned 1000MW facility that apparently has all of its permitting in place. The Blythe facility was originally going to be a solar-thermal facility, with adjustable mirrors focusing the sun on a central boiler that would in turn power turbines. This plan was scrapped last year in favor of a more traditional PV technology, and I know local company First Solar has been hoping to save itself by getting the panel deal (First Solar also has been hammered by the loss of German subsidies).
If we take the cost of this planned 1000MW facility as the stated $2.8 billion (of which 2.1 billion would be guaranteed by US taxpayers), we see the basic problem with solar. A new 1000MW natural gas powered electric plant costs no more than about $1 billion. It produces electricity 24 hours a day. This solar plant, to be the largest in the world, would produce 1000 MW for only a few hours of the day. That area of desert gets about 7 peak sun hours per day (the best in the country) so that on a 24 hour basis it only produces 292 MW average. This gives it a total capital cost per 1000 MW of $9.6 billion, making it approximately 10 times costlier than the natural gas plant to build. Of course, the solar plant has no fuel costs over time, but solar is never able to close the gap over time, particularly with current very low natural gas prices.
Update: Apparently the $2.8 billion was just for the initial 484 MW so you can double all the solar costs in the analysis above, making the plant about 20x costlier than a natural gas plant.
I'm Not Dead Yet
This is an interesting perspective on why Blackberry / RIM may not be dead yet. After a weekend trying to futz with iPhone access to Gmail and a failed iPhone OS upgrade, I am sympathetic to the enterprise argument that modern iOS and Android smart phones may be lacking in the security and stability that corporations want. There is still an enterprise market out there -- after all, IBM completely left most of the sexy and high-profile consumer markets but still does about hundred billion in sales each year at a respectable 15% profit margin.
Yes, We Have One of Those Stupid Speech-Limiting Bills Here Too
Arizona House Bill 2549, which just passed its committee 30-0:
It is unlawful for any person, with intent to terrify, intimidate, threaten, harass, annoy or offend, to use ANY ELECTRONIC OR
DIGITAL DEVICE and use any obscene, lewd or profane language or suggest any lewd or lascivious act, or threaten to inflict physical harm to the person or property of any person.
I'm no lawyer, but it sure looks like, under this proposed law, my blogging that Sheriff Joe is an asshole will be illegal (if he is annoyed, and believe me he is annoyed by any criticism).
Note also that by the wording of the law, said communications are illegal in Arizona if it was originated here or received here. That means if you folks in Colorado or California put something profane in an Internet comment, and it annoys some idiot in Arizona, you are technically in violation of the law.
Sometimes I have this fantasy that we have a Goldwater-libertarian streak among Arizona Republicans. Obviously, this is just that, fantasy.
My New Favorite Creature
Sea Dragons! (larger versions at the link below the video)
Sea Dragons! from Warren Meyer on Vimeo.
If you need any extra encouragement to go to the Monterrey Aquarium some time, try these two jellyfish exhibits
Jellyfish from Warren Meyer on Vimeo.
Jellyfish 2 from Warren Meyer on Vimeo.
Quote of the Day
Lots more updates but I have to get home from Buffalo first. Here is a funny quote
When the Earth Hour ambassadors include a child, a magician, a couple of actors, a singer, a model, a chef, a radio presenter, a celebrity gardener, a priest, a hotelier, a former rock star, a green politician, an SBS landscape architect and not a single economist or scientist, I think we’ve long stopped listening to “the science” and are checking out the designer label.
Switched to XBMC
I have written before that I have a large movie collection ripped to a 16TB raid. In the past I have used SageTV to stream, but Sage was bought out by Google almost a year ago and has gone totally dark since then. So I switched to XBMC, which given I am not messing around with PC-based DVR, actually turns out to be a better solution from a software standpoint. I will post on my progress next week. The problem is getting a low cost streaming box to run it, like Sage had with the HD200 and HD300.
Here is the hottest product in the geeky build-your-own end of home theater, the Raspberry Pi. A tiny computer board that apparently will run XBMC (I presume the Linux version) and stream at a full 1080P and costs about $35. Right now, XBMC users are using either dedicated PC's or hacked AppleTV boxes. I have one of each on the work bench -- the dedicated PC is expensive and the AppleTV box based on the old ATV2 won't run 1080p. The new ATV3 will run 1080p but no one has apparently rooted that yet, and besides it is still a lot more than $35. So I am on the waiting list for my Pi.
Difference Between Trusting Science and Scientists
I don't often defend Conservatives but I will say that there is nothing much more useless to the public discourse that bullsh*t sociology studies trying to show that Conservatives are dumber or whatever (and remember, those same studies show libertarians the smartest, so ha ha).
In this general category of schadenfreude masquerading as academics is the recent "finding" that conservatives are increasingly anti-science or have lost trust in science. But here is the actual interview question:
166. I am going to name some institutions in this country. Some people have complete confidence in the people running these institutions. Suppose these people are at one end of the scale at point number 1. Other people have no confidence at all in teh people running these institutions. Suppose these people are at the other end, at point 7. Where would you place yourself on this scale for: k. Scientific community?
A loss of trust in the scientific community is way, way different than a loss of trust in science. Confusing these two is roughly like equating a loss in trust of Con Edison to not believing in electricity. Here is an example from Kevin Drum describing this study's results
In other words, this decline in trust in science has been led by the most educated, most engaged segment of conservatism. Conservative elites have led the anti-science charge and the rank-and-file has followed.
There are a lot of very good reasons to have lost some trust in our scientific institutions, in part due to non-science that gets labeled as real science today. I don't think that makes me anti-science. This sloppy mis-labeling of conclusions in ways that don't match the data, which Drum is ironically engaging in, is one reason may very scientific-minded people like myself are turned off by much of the public discourse on science. The irony here is that while deriding skepticism in the scientific community, Drum provides a perfect case example of why this skepticism has grown.
It's Constitutional Because We Really, Really Want It
The game the Left is playing with the Supreme Court is interesting. Their argument going into last week's Supreme Court frackas boiled down either to, "this is really needed so it must be Constitutional" or something like "we thought the Federal government could do anything." By the way, while I find the latter depressing and it should be wrong, I can understand after decisions like Raich why one might come to that conclusion.
After getting pummeled in court this week, the Left has a couple of new takes. The first is that while their side's lawyers did not offer any good arguments, particularly vis a vis limiting principles, it's the Court's obligation to do it for them. The second is an interesting sort of brinksmanship. It says that this is so big, so massive, so important a legislation, that the Supreme Court basically does not have the cojones to overturn it on a 5-4. The extreme example of this argument, which I am seeing more and more, is that its so big a piece of legislation that it is wrong for the Supreme Court to overturn it whatever the vote, the implication being that Constitutional muster can be passed merely by making legislation comprehensive enough.
Kevin Drum has been taking both these tacks, and included this gem in one post:
So what will the court do? If they don't want a rerun of the 1930s, which did a lot of damage to the court's prestige, but they do want to put firmer limits on Congress's interstate commerce power, the answer is: find a limiting principle of their own. But find one that puts Obamacare just barely on the constitutional side of their new principle. This would avoid a firestorm of criticism about the court's legitimacy — that they're acting as legislators instead of judges — but it would satisfy their urge to hand down a landmark decision that puts firm limits on further expansion of congressional power. Liberals would be so relieved that Obamacare survived that they'd probably accept the new rules without too much fuss, and conservatives, though disappointed, would be thrilled at the idea that the court had finally set down clear limits on Congress's interstate commerce power.
You can see both arguments here - the proposition that the Court owes it to the defense attorney to make up a better argument for him, as well as the notion that the stakes are too high to overturn the legislation.
By the way, maybe I just went to some right-wing fascist school, but I sure don't remember any discussion of a loss of prestige by the Court as they overruled large swaths of the New Deal, particularly since their decisions were pretty consistent with past precedent. I always considered it was FDR who lost prestige with this authoritarian impulse to pack the Court to get the Constitutional answer he wanted. And taking the 1930's as an example, it sure seems both Left and Right are wildly hypocritical and inconsistent on when they are in favor and against Court activism.








