Coyote Blog

The management of the Post Office is a joke, and it is hardly worth the electrons to write more about it.   But I did find this factoid in Tad DeHaven's commentary on the Post Office's hopeless efforts at cost reduction interesting.

Traditional post offices, which number about 27,000, cannot be closed “for solely operating at a deficit” and the closure process is burdensome.

Wow, that is a bad law (though no worse than 10,000 others like it).  This sounds similar to the military base problem, where every facility that needs closure has a Congressperson desperately trying to keep it open against all economic reality, merely as a jobs/welfare program once its true utility is over.   Apparently, the Post Office has an overcapacity problem that rivals the US Military's after the Cold War (and really to be honest after WWII)

Full post offices are more costly to operate than other means of serving customers. The average post office transaction cost 23 cents per dollar of revenue in 2009 while the average transaction at a contract postal unit cost just 13 cents. Post offices used to generate almost all postal retail revenue, but 29 percent is now generated online through usps.com and other alternative channels.

In 2009 post offices recorded 117 million fewer transactions than in 2008. Four out of five post offices are operating at a loss. However, the postal network’s overcapacity has drawn little corrective action from Congress. In fact, legislation introduced in the House with 102 cosponsors would apply the burdensome procedures for closing post offices to other postal outlets as well. Congress is actively working against the modernization of the U.S. postal system.

The amazing thing is that they have tons of extra capacity and still provide poor service.  Just compare the process of mailing a package UPS vs. USPS.  I have a UPS account, I can print my own labels, I get billed automatically, I get package tracking, and I can send the package from the drop box downstairs in my building.

It is almost impossible to do this with the USPS.  To mail anything larger than 13 ounces, to buy postage without an expensive meter, to get a greatly inferior sort of tracking -- all require a grim trek to the post office.

My guess is that just like Pemex is not longer really about producing oil, the USPS mission is no longer primarily about delivering mail, its a welfare program.

PS - my USPS delivery guy is great.  Nicest guy in the world.  The mistake for years in criticizing the USPS has always been about criticizing the people.  Not only is that wrong, but it distracts from the problem.  By implying the problem is bad, surly people, it implies the problem is fixable with new people.  But in fact, the problem, as with all government, is information and incentives .... and in this case Congressional meddling in their mission.

The recent naming of GE's Jeffrey Immelt to head a presidential commission on, err, something or other seems to have been an occasion for bipartisan gnashing of teeth about what I call the growth of the American corporate state.  I was encouraged by the bipartisan negative reaction from the left, right, and of course the libertarians, the latter of whom have always understood the difference between being pro-capitalism and pro-business.

But all it takes is a nomenclature change of this corporate welfare to "green jobs" or "investment in the future" or "bridge to the future" or similar bullsh*t and suddenly many of the exact same people, at least on the left, are swooning again.  Why is it not obvious that, for example, green energy subsidies are just the same old corporate welfare?

Here is one aggravating example

Despite millions in government grants and subsidies, the Manitowoc company President Barack Obama called a glimpse of the future lost $4.2 million last year and cannot promise shareholders it will be profitable in the foreseeable future....

“We may continue to incur further net losses and there can be no assurance that we will be able to increase our revenue, expand our customer base or be profitable,” the report indicates.

Investors have responded to the company’s volatility, and Orion stock has plummeted in the past four years.  It closed 2007 at $18.82 a share.  By the end of 2010 it was $3.34.

Regardless, President Obama is putting his, and the U.S. taxpayers’, money on companies like Orion.

“It’s important to remember that this plant, this company has also been supported over the years not just by the Department of Agriculture and the Small Business Administration, but by tax credits and awards we created to give a leg up to renewable energy companies,” Obama said at the Orion plant on Wednesday.

The State of Wisconsin has also given its share trying to help Orion to succeed.  Since 2005, the state has given the company $350,000 in community development zone tax credits, $506,000 in economic development funds, and $420,000 from the Wisconsin Energy Independence Fund.  Plus the company got another $260,000 in stimulus funds for a State Energy project.

In addition to direct aid, public policy has also helped the struggling company.  Wisconsin law requires that 10 percent of all electricity sold in the state come from renewable sources by 2015.  Orion knows that without government intervention like that, there would be little prospect for the green economy.

“The reduction, elimination or expiration of government mandates and subsidies or economic or tax rebates, credits and/or incentives for alternative renewable energy systems would likely substantially reduce the demand for, and economic feasibility of, any solar photovoltaic and/or wind electricity generating products, applications or services and could materially reduce any prospects for our successfully introducing any new products, applications or services using such technologies,” the SEC report states.

By the way, in 2010, while the government was pouring taxpayer money into Orion, its founder and CEO was pulling his out, selling (by my count of SEC filings) 130,000 shares, despite equity prices that were at a five year low.    It is dangerous to draw conclusions form insider sales (we don't know what personal financial issues may be driving their actions) but it is interesting that the president and founder is taking the exact opposite point of view on the company's prospects than is President Obama.

I thought this map in the National Geographic was cool- it shows the most popular surname in different areas of the country.  I am not sure what geographic divisions they use (why does Texas have so little granularity?).  But it does turn out there are a couple of "Meyer" labels on the chart, which kind of surprised me  -- though they did spell it the right damn way - no "s" on the end, no Mayer, no Myer or other such nonsense ;=)

The "Meyer" in the middle of Iowa is pretty much where my dad's family settled when they came over from Northern Germany.  Though I am confused as to why they show it color-coded as English origin -- I am pretty sure this area is German  (the Meyer over around northern Nebraska and in Wisconsin is coded German).

HT:  Flowing Data

I know this is just a trivial example, but somehow it seems to be representative for me of a larger class of legislation - yield to the state!

In 2009, Colorado legislators passed the Yield to Bus Law to help transit agencies that were finding that the inability of buses to get quickly back into the traffic flow after a stop was hurting their on-time performance.

Steamboat Springs Transit helped push for the law after it had to add time to routes to stay on schedule because too often its buses were boxed in by traffic at stops, said Philo Shelton, director of Steamboat's public works department, which runs the 24-bus transit operation....

The hope is that motorists will get in the habit of yielding, thereby minimizing the need for enforcement of the law, officials say.  (via the antiplanner)

That does seem to be the point - produce citizens that are in the habit of yielding to the state.   Because we all know that having the state's bus full of empty seats stay on schedule is far more important than the schedule of all the little people around it.  When government schedules don't work, what do they do?  Change the schedules?  No!  Change the behavior of the citizenry so the schedules can be made to work.  Nothing wrong with the schedules - its all you folks who are broken.

Some days I almost can't remember my own kids' names

The mysteries of the brain may be virtually endless, but a team of researchers from two institutes in Göttingen, Germany now claim to have an answer for at least one question that has remained a puzzle: just how fast does the brain forget information? According to the new model of brain activity that the researchers have devised, the answer to that is one bit per active neuron per second. As Fred Wolf of the Max Planck Institute for Dynamics and Self-Organization further explains, that "extraordinarily high deletion rate came as a huge surprise," and it effectively means that information is lost in the brain as quickly as it can be delivered -- something the researchers say has "fundamental consequences for our understanding of the neural code of the cerebral cortex."

Andrew Thomas was very competitive in Radley Balko's Worst Prosecutor of the Year voting.  But if he had just waited a few days, this news could have easily put Thomas over the top:

The same people responsible for tens of millions in claims being filed against Maricopa County are now drooling after their own pot of gold.

Former Maricopa County Attorney Andrew Thomas and David Hendershott, Sheriff Joe Arpaio's former right-hand man have filed a notice of claim along with Thomas' former lackey, Lisa Aubuchon, for a combined total of $60 million.
Aubuchon had already filed a $10 million claim; she's revised that to $22.5 million. Andrew Thomas, who quit the job voters gave him and failed in his bid to become state Attorney General, has the gall to seek $23.5 million from taxpayers. And Hendershott, the infamous Chief Deputy now under investigation following a co-worker's allegations of corruption and abuse of power, wants $14 million.

For the first time in my life, I voted in a partisan primary for the Coke/Pepsi parties this year specifically to vote against Thomas.  I cannot even imagine why they think they deserve this kind of payoff.  If anyone should be suing, it is the citizens of Maricopa County who should be suing these three.  Lots of articles about him on my site, but this one in the ABA Journal covers a lot of the ground.

OK, I saw the Spiderman musical (still in pre-production) on Broadway last week.  I thought I would share some thoughts about the show.  Note that I like musicals and have been to a bunch but I am by no means an expert.

The show began with an unforced error, which seemed really dumb given the bad press the show has been getting (mixed reviews combined with some very high-profile accidents).  I showed up 20 minutes early and found a line for the Will Call (not ticket purchase, but simply ticket pickup) that went down the entire long block.  It took me 40 minutes just to pick up my tickets.  The show started late, but I still missed the first number, and a LOT of people were behind me.

The show was sold out on a Wednesday night.  I don't know if this is a measure of its popularity or the new Nascar, waiting for an accident aspect of the show.  A friend of mine said he went the week before and the show had three long halts  (there is a lot of technical stuff going on in the flying -- the stops feel exactly like when the ride stops at DisneyWorld).  We had only two very short ones.

The staging is amazing.  Actors fly all around the stage, and more impressively, soar and fight above the audience, frequently landing on the railings of the balconies.  The stage itself is well done - they do a nice job creating the illusion of great height when scenes take place on the top of buildings.

The dancing is fun, in a high energy way.  Often it is more tumbling and gymnastics than dancing, but entertaining.

The plot in the first half is solid - the classic spiderman origin myth -- if you have seen the recent movie you have got it.

For me, the wheels really came off the bus in the second half.  The villain is Arachne -- not some super villain with an appropriate name, but the actual Arachne from greek mythology that Athena turned into a spider.  Arachne is a combination scorned lover, unkillable super-villain, and source of redemption and has these sort of spider minions around her.  This whole plot angle did not work at all for me.

Why the problem?  Well, they killed off the first villain in the first act.  So, without even being a sequel, they created the sequel problem in the second Act -- how do you top the first villain?  And like many sequels, it became over the top and incoherent.

OK, and now for the final problem:  The music was entirely forgettable.  There were no musical themes that helped unify the show (as someone like Andrew Lloyd Weber does).  There were just a bunch of unrelated songs  (I suppose there could have been a reprise, but the music being reprised was so forgettable that I forgot it).  The music established the right moods -- dark or heroic or romantic, but it was just wallpaper behind the actors.

I would not have had trouble with it if Bono and Edge had, being new to musical theater, tried to do something really different and failed.  But they simply cranked out a bunch of utterly bland show tunes.  A couple were OK at the time, but I sure wasn't whistling them on the way out.  In contrast, I saw Chorus Line 30 years ago and still can sing bits of several songs.

Weird Fact: Dr. Normon Osborn (who in the show is not only Green Goblin but also the creator of the mutant spider that gives Spiderman his powers) looks exactly like Madam Hooch in the Harry Potter movies.  As Green Goblin he looks more like a green Gene Simmons.

Here is the next bit of news I bet we will hear:  One of the victims or his/her families will sue Safeway, whose only involvement in the crime was that it had offered the parking lot as a location for Ms. Giffords constituent meeting.  Increasingly, though, the tort system is not about justice, but about finding deep pockets somehow tangentially connected to a tragedy.  I will bet that some lawyer right now is crafting a suit based on Safeway's inadequate security, poor judgement in allowing the meeting on their property, failure to warn customers of the potential dangers of attending such a political meeting, etc. etc.

The next great danger to western civilization is ... wood burning fireplaces.

“The smoke from a fire smells very nice,” said Diane Bailey, a senior scientist with the Natural Resources Defense Council in San Francisco. “But it can cause a lot of harm.” The tiny particles, she said, “can cause inflammation and illness, and can cross into the bloodstream, triggering heart attacks” as well as worsening other conditions....

Not surprisingly, the green community has been sounding the alarm for some time. For the last several years,TheDailyGreen.com, an online magazine, has advocated replacing all wood-burning fireplaces with electric ones; an article published in September by Shireen Qudosi, entitled “Breathe Easier With a Cleaner Fireplace,” argued that there is no such thing as an environmentally responsible fire: “Switching out one type of wood for another is still use of a natural resource that otherwise could have been spared,” Ms. Qudosi wrote. And last fall, an article on the Web site GreenBlizzard.com, “Cozy Winter Fires — Carbon Impact,” called wood-burning fires “a direct pollutant to you, your family and your community.”...

Karen Soucy, an associate publisher at a nonprofit environmental magazine, isn’t swayed by that argument. She refuses to enter a home where wood has been burned, even infrequently.

Ms. Soucy, 46, blames fumes from a wood fire for sending her to the emergency room 25 years ago with a severe asthma attack. She had been staying at a friend’s house in Stowe, Vt., for about a day, she said, when her lungs seized up. She was taken to a hospital in an ambulance, and got two shots of adrenalin; the doctors blamed her friend’s cat.

“It was only later, working with a team of allergy doctors and pulmonologists, did we determine the culprit to be the wood-burning fumes from the various fireplaces,” Ms. Soucy said.

Now her husband scouts out any place they go in advance, to be sure it’s free of fireplaces, and she passes up countless dinners and parties. “I’m the one who feels guilty for always being the one to decline invitations or for making people go out of their way to clean their home,” she said. Even then, she added, “the smell lingers on everything.”

Absolutely, if you are worried about CO2 emissions, make sure you use an electric heater (some of the most inefficient sources of heat on the planet) powered by a big honking coal plant.  Because after all, in you hadn't burned that tree, it would have just fallen over and decomposed into ..uh.. Co2.  Which is why I personally advocate shrink-wrapping all Christmas trees after use and burying them deep, rather than mulching them as most cities do, to save the planet.

Here is a simple rule of thumb:  Public officials should have no expectation of privacy when performing their public functions.  Period.  Except for some really narrow exceptions, I can't think of any justification for prosecuting people filming police officers than the officer's desire to avoid accountability.

I grew up in the South and saw the tail end of Jim Crow.  This is how we are achieving the new equality -- in the future, everyone will be treated by the criminal justice system like blacks have been in the deep south.

My Forbes column is up on the minimum wage.  It covers some of the ground I could not get to on TV the other night.

There seems to be discussion in Washington about creating a legal framework for state bankruptcies.  My guess is that any law that might be passed will simply be a Trojan Horse.

A lot of people (including myself) would like the idea of the tough provisions applied to individuals who are bankrupt being applied to states.  Unfortunately, it is wildly unlikely that this is actually what we will get.  Any such law would likely just be a bailout program renamed "bankruptcy" to make it more palatable to the public, a transfer of obligations from state to federal taxpayers without any real imposition of discipline or cleanup of long-term obligations like pensions.  Heck, this is exactly what happened at GM, and that was just a private company.

Some might assume that a Republican House would be loathe to support bailout provisions for California, but two thoughts come to mind.

First, California, despite being a blue state, has plenty of red Congresspersons who will scream support for a bailout (for a parallel, think ethanol or farm subsidies, where grain state Republicans are among the first to break ranks with their brethren to support government interventionism).

Second, it is not clear that the Administration even needs the Congress any more to dish out money.  It has found so many extra-Constitutional ways to appropriate money without actually having to go to Congress (e.g. use of TARP funds for about anything, use of the Federal Reserve, etc.) that it should be no problem to do this without the House.  Take just one idea -- Imagine California issues a $100 billion in 0.0000005% 100-year bonds that the Fed then buys at face value with printed money (as they have been buying US securities).  Instant bailout, no Congress.

For many, low wage jobs are the first rung on the ladder to success and prosperity.  Raising the minimum wage is putting the first rung of the ladder out of reach of many low-skilled Americans.

File this under "why I blog rather than do a lot of talking head cable shows."

I love it when progressive policy wonks who have never, and would never sully their hands with running an actual productive enterprise, tell me I must be running my business wrong.

Well, after flying 10 hours round trip to do 5 minutes of television  (don't get me wrong, it was a new enough experience that I am glad I did it) I am going to reward myself by seeing Spiderman the musical tonight.  Seriously, Bono, Edge, Spiderman, stage accidents?  I have to give it a chance, despite mixed reviews.  I will post reviews tomorrow.

I flew to New York to go in studio on the Stossel show today.  I did a brief bit on the minimum wage, a reprise from my earlier cameo on Stossel special.  It will be on tomorrow, Thursday at 9PM Eastern on Fox Business  (not Fox News, Fox Business).

The whole experience was new to me, which made me virtually unique as I was surrounded by policy wonks who do this kind of talking head thing all the time.   By the way, there was no sharing of questions or his plan in advance -- I think they want you cold.  So answers are all in real time.

Please, please, please do not write me or post comments such as "you should have said ____."  It will just depress me.  Believe me, 5 minutes after walking out I thought of 9 things I should have said.  Which is in fact why I blog rather than engage much any more in real time argument.

Anyway, I think his show will be pretty good -- he has Michael Cannon on health care and segments after mine on cash for clunkers and alpaca subsidies.  I shared the green room with an alpaca, which will probably just go to prove the old saying about always getting upstaged by kids and animals.

By the way, I think Stossel must set a different tone for his staff than is normal on TV.  I was talking to one of his producers, a guy that had come with Stossel from ABC, and I asked him if he had studied something relevant to this job in college.  I expected him to say "yes, theater" or "yes, television production."  But he said "yes, economics at George Mason."  I loved that answer.

MUCH better than stockpiling food and ammo in some crappy mountain retreat, this is the way to ride out the end of civilization.

Richard Lindzen has a great article out that summarizes much of the skeptic's case.  I do not have time to excerpt it right now, but I don't have to because Bruce McQuain does such good job.  If you find Lindzen's arguments interesting, I encourage you to watch my climate video that makes many of the same points with the addition of graphics and charts to make the points clearer to those who don't spend all their time wallowing around in these climate issues.

We tried out the new IPic theater yesterday.  They are shooting at a super-premium niche, and we went for the top package.  For our money we got free valet parking, free popcorn, and an unbelievable luxury recliner seat as nice and roomy and comfortable as anything in your house.  Waiters brought food and drinks (including cocktails) to our seats, and my wife got a nice pillow and blanket.   Not sure I am taking the kids to the smurf movie (yes, there is one coming) at this place, but it was a great date night with the wife, and in the current economy had a sort of Fiddling While Rome Burned kind of vibe to it.

My 16-year-old took the car into the shop today and had his first experience dealing with the repair guy.  I told him that they may call him and tell him he needs some work done on the car, like they will say he needs to have the flux capacitor flushed for $300, and if he was in doubt, call me.  He said fine, but if they tried to sell him laser canons, he was going for it.

For those of you worried, the coyote that was shot by the Boston environmental police (!) was no relation.  Though I would not be surprised if RFK Jr. had them ordered after me, given his statements about global warming skeptics.  HT TJIC

It is impossible to trust the judicial process after reading this (via Radley Balko) and realizing that this kind of thing must go on all the time.  In fact, our heroes on TV shows engage in behaviors not much more honorable than this.  You can't watch a TV crime drama for five minutes without seeing police and prosecutors pressuring witnesses.  I was Castle the other day with my 12-year-old daughter (her favorite show, and being a Nathan Fillion fan I am happy to watch it with her) and as usual they were interviewing some suspect and she started doing what has become her habit in these situations -- she started screaming "lawyer -- get a lawyer" at the suspect.  Good for her.

From the Chronicle of Higher Education via TaxProf Blog

If you want to get a job at the very best law firm, investment bank, or consultancy, here’s what you do:

1. Go to Harvard, Yale, Princeton, or (maybe) Stanford. If you’re a business student, attending the Wharton School at the University of Pennsylvania will work, too, but don’t show up with a diploma from Dartmouth or MIT. No one cares about those places. ... That’s the upshot of an enlightening/depressing study about the ridiculously narrow-minded people who make hiring decisions at the aforementioned elite companies. ... These firms pour resources into recruiting students from “target schools” (i.e., Harvard, Yale, Princeton) and then more or less ignore everybody else. Here’s a manager from a top investment bank describing what happens to the resume of someone who went to, say, Rutgers: “I’m just being really honest, it pretty much goes into a black hole.”

Being, I suppose, an insider to this process (Princeton - Harvard Business School - McKinsey & Company) I'd like to make a few comments

• First and foremost, this problem cuts both ways.  I can imagine outsiders are frustrated with the lack of access.  But as an insider I can tell you  (cue Admiral Akbar) It's a Trap!  You go to Princeton, think, wow, I did well at Princeton, it would be a waste not to do something with that.   You are a competitive sole, so getting into a top grad school is an honor to be pursued just like good grades.   So you go to Harvard Business School (it could have been Harvard Law) and do well.  And what is the mark of achievement there? -- getting a job at a top consultancy or top investment bank.  So you take the McKinsey job, have your first kid, and what do you find out?  Wow, I hate this job!  In fact, the only thing I would have hated more is if I had taken that Wall Street job.   Eventually you find happiness running your own company, only to discover your Ivy League degrees are a liability since they intimidate your employees from sharing their ideas and most of the other guys you know successfully running businesses went to Kansas State or Rutgers.
• My only data point inside this hiring process is from McKinsey about 15-20 years ago, so it may be out of date.    But at that time, the above statement would be BS.  Certainly hiring was heavily tilted to the top Ivies and a few top business schools.  But we had people with undergrad degrees from all over - in fact most of our office in Texas had undergrad degrees from the Texas state schools  (at lot from BYU too -- McKinsey loved the Mormons).  At the time, McKinsey was hiring hundreds of people out of business school around the world each year.  No way this could have come from only a few schools.
• My hypothesis is that this may be more a regional than an industry bias, limited to Boston/New York/East Coast.  Since many top law firms and consultancies and investment banks are in NYC, they reflect this local bias.  But I would bet these same firms and industries hire differently outside of the East Coast.
• There is some rationality in this approach - it is not all mindless snobbism.   Take Princeton.  It screens something like 25,000 already exceptional applicants down to just 1500, and then further carefully monitors their performance through intensive contact over a four year period.  This is WAY more work and resources than a private firm could ever apply to the hiring process.  In effect, by limiting their hiring to just a few top schools, they are outsourcing a lot of their performance evaluation work to those schools.

I love maps like this one, and a year or two ago I linked an earlier version.  This one is from the Economist via Carpe Diem, and shows the name of the country whose GDP is similar in size to that of the state.

I have to criticize the map-maker, though.  They used Thailand at least four times on this map -- the original version managed to do it without repeats.  But I am amazed that Arizona ranks right there with Thailand.  This is not to diss the rest of the state, which has a lot going for it, but in terms of population and economic activity, a huge percentage in in just one city, Phoenix.

I do have to wonder whether New Mexico being matched up with "Angola" is really very flattering, and pairing Mississippi with Bangladesh is funny on a couple of levels.

Apparently, the Dire Straits song "Money for Nothing" has been banned from the Canadian airwaves:

The Dire Straits song "Money for Nothing" was ruled by the Canadian Broadcast Standards Council to be "extremely offensive" and thus inappropriate for airing on radio or television because it uses an anti-gay slur.

The decision against St. John's radio station CHOZ-FM in Newfoundland was released Wednesday. In it, the panel ruled that the word "faggot" "contravened the Human Rights Clauses" and its ethics code and is "no longer" permitted "even if entirely or marginally acceptable in earlier days."

This is stupid on its face, and even stupider if the song in question is understood.  If you have never heard the song before, it may seem an odd juxtaposition at first -- why does it alternate between jabs at rock stars on MTV and talk about moving appliances?  Because the song is exactly what it sounds like -- Mark Knopfler overheard some workers in an appliance store watching MTV and heckling the performers they saw for being rich and spoiled and overpaid and not working very hard.

The song is interesting not just because it has a great opening that is fun to play at maximum volume, but because Knopfler is one of those guys on MTV the workers are heckling.  Does he secretly agree with them, is he hurt by them, does he find them funny?   Anyway, the word "faggot" in the piece is essentially aimed at the performers themselves -- they are describing a critique they have received, repeated in all its salty blue-collar flavor.  As such the words feel utterly authentic, perhaps because they are -- Knopfler reportedly grabbed a piece of scratch paper right at the store and started jotting down notes.

I cannot imagine a less offensive use of the word.  There is absolutely no way to read the lyrics of the song and come to the conclusion the word was aimed at gays, or really at anyone else but the author and performer.   I presume by this standard  that Canada expects to ban the entire body of hip hop music?

I could have easily titled this post "the Left and Right converge," because in it I see the Left acting exactly like the religious Right I grew up around in the South that would try to ban any number of books and songs, often out of an incredibly poor understanding of what the story or song was really about.

By the way, the statists among you will be happy to know that this ban only applies to private companies -- the state is still allowed to play the song because, you know, government motives are pure and thereby sanitize any harm that might come from playing this song

Ron Cohen, the CBSC's national chairman, told The Washington Times on Thursday that the decision effectively sets a "nationwide" precedent binding on all private license holders for TV, cable-TV and radio broadcasting. It does not cover the state-run Canadian Broadcasting Corp. or "community and university" stations.

I have seen Knopfler live many times live.  To be fair, Knopfler himself seems to have some sympathy for this position, as I have seen him change the offending word to others in more recent live performances.  I don't know if this is an achnowlegement the word should be changed or he is knuckling under to pressure.    Here is the original video on YouTube.  Here is a live version where faggot is replaced.  Extra bonus cameo - Clapton in a pink suit.
Postscript: It is a fairly commonly-known bit of trivia that the first song played on MTV was "Video Killed the Radio Star."  But this was new to me:

When MTV Europe began airing in 1987, "Money for Nothing," which begins with Sting's opening falsetto whisper "I want my MTV," was the first video played.