From the Correlation does not Equal Causation Files

On this blog, I have often felt the need to point out that correlation does not equal causation.  For example, if X increases at the same time Y increases, it is not necessarily true that X causes Y or Y causes X.  The correlation could be a coincidence, or it could be that both X and Y are related to a third variable Z that drives their movement.

Anyway, I see this mistake all the time.  What I did NOT expect to see was that someone would have to explain that non-correlation does not equal causation.  But that seems to be the wacky world that environmental science has descended into, via the Commons Blog:

EPA's new report "America's Children and the Environment" notes that
air pollution declined, but asthma prevalence continues to rise. One
possible conclusion from this is that air pollution is not actually a
cause of asthma. In fact, that's the most plausible conclusion. Every
pollutant we measure has been dropping for decades pretty much
everywhere, while asthma prevalence has been rising pretty much
everywhere. This is true throughout the entire western world, not just
the U.S. In fact, asthma incidence is highest in countries with the
lowest levels of air pollution. Asthma is rare in developing countries
with much more polluted air. Asthma incidence is simply unrelated to
air pollution. Asthma attacks are probably unrelated as well. But even
if air pollution can cause asthma attacks, it is a minor cause,
responsible for less than 1% of all asthma attacks.

Despite these two trends going in the opposite direction, environmental activists still insist that large increases in asthma rates are driven by pollution:

A report by E&E News
(subscription required) makes it clear that what's in EPA health
reports doesn't actually matter. The story opens with "While the number
of children living in areas violating ozone and particulate matter (PM)
standards has declined in recent years, adolescent asthma that results
from exposure to such pollutants continues to rise, according to new
U.S. EPA statistics." The journalistic goal is to raise health alarms,
whether warranted or not. Thus, the news story itself says air
pollution, the presumptive cause of asthma, went down and yet asthma
prevalence went up. However, the reporter claims air pollution is
responsible for rising asthma just the same.

Wow.  These guys could be the poster-children for refusing to adjust their beliefs in the face of actual facts.  They even acknowledge that pollution and asthma are going in opposite directions and still they insist on their causation theory.

P
ostscript:  I am willing to believe, maybe, that there is some unknown, unmeasured and unregulated pollutant out there that is increasing and is causing increases in asthma.  However, that is not the argument these folks are making - they are using asthma increases to lobby for tougher standards on known pollutants.

Update:  The best guess I have for the increase in asthma in this country, and the strong positive correlation between asthma and economic development, is that it has something to do with indoor pollution.  The spike in asthma cases seems to parallel the rise in energy prices.  Beginning in the 1970's, we began sealing up houses tighter and tighter to conserve energy.  Increasing penetration of air conditioning simultaneously caused people to close the windows.  I am convinced its something inside, not outside.

The Statist Trap

David Boaz of Cato makes this comment in the context of an article on suppressing speech in modern South Africa:

In the last days of apartheid, some libertarians pointed out to South
Africa's rulers that if they left a government broadcasting operation
in place, they would one day regret the way a different government
would use it. Looks like that day has come.

This is a point I make time and time again.  When statists push their policies, it is always with the assumption that they themselves will be in control of the government machinery they create.  In contrast, the miracle of the US Constitution was that the government was constituted with the assumption that rogues and scoundrels would take control, and the founders put protections in place to limit the damage these scoundrels could do to our individual liberties.

As I said previously
:

I am reminded of all this because the technocrats that built our
regulatory state are starting to see the danger of what they created.
A public school system was great as long as it was teaching the right
things and its indoctrinational excesses were in a leftish direction.
Now, however, we can see the panic.  The left is freaked that some red
state school districts may start teaching creationism or intelligent
design.  And you can hear the lament - how did we let Bush and these
conservative idiots take control of the beautiful machine we built?  My
answer is that you shouldn't have built the machine in the first place
- it always falls into the wrong hands.  Maybe its time for me to again invite the left to reconsider school choice.

Today, via Instapundit, comes this story about the GAO audit of the decision by the FDA to not allow the plan B morning after pill to be sold over the counter.
And, knock me over with a feather, it appears that the decision was
political, based on a conservative administration's opposition to
abortion.  And again the technocrats on the left are freaked.  Well,
what did you expect?  You applauded the Clinton FDA's politically
motivated ban on breast implants as a sop to NOW and the trial
lawyers.  In
establishing the FDA, it was you on the left that established the
principal, contradictory to the left's own stand on abortion, that the
government does indeed trump the individual on decision making for
their own body
  (other thoughts here).
Again we hear the lament that the game was great until these
conservative yahoos took over.  No, it wasn't.  It was unjust to scheme
to control other people's lives, and just plain stupid to expect that
the machinery of control you created would never fall into your
political enemy's hands.

As I concluded before, even Star Trek figured out this whole technocrat losing control of the fascist state thing 40 years ago.

Failure of the War on Drugs

Frequent readers of this site will know that I support the legalization of most illegal narcotics for adult use, not because I am a secret user who wants to come out of the closet, but because prohibition and efforts to save people from themselves always result in failure.  In particular I remember the old joke that communicates so well the inherent contradictions embodied in the drug war.  It goes: "What is the worst thing that can happen to a teen who smokes marijuana?  Answer: He can get thrown in jail."

Whenever I make the argument for drug legalization, 100 out of 100 times the first response is "what kind of message does that send to kids."  They argue that even if kids under 18 are not allowed access to drugs, legalization for adults will send the message to kids that drug use is more acceptable, and their use of drugs will increase.

What is most surprising about this statement is how easy it is to test.  The approach was suggested to me by something I read in Reason the other day.

Check out this press release from the Department of Health and Human Services on youth drug use:

The Substance Abuse and Mental Health Services Administration today
announced that current illicit drug use among youth ages 12-17
continues to decline.   The rate has been moving downward from 11.6
percent using drugs in the past month in 2002 to 11.2 percent in 2003,
10.6 percent in 2004 and 9.9 percent in 2005....

The  rate of past month cigarette use among youth ages 12-17 declined from 13.0  percent in 2002 to 10.8 percent in 2005.

The counter proof to the "what about the kids" argument is right here in these two paragraphs.  Tobacco today, which is illegal for teens while legal (but frowned upon) for adults, is a good proxy for post-legalization narcotics.  Note therefore that illicit drug use among teens is 9.9 percent, while tobacco use is 10.8 percent.  There is virtually no difference!  The legal-for-adults substance is used by teens at only slightly higher a rate than illicit drugs, and this from the drug warriors' own figures.  At most, the"message" sent by legalizing tobacco seems to be no different than the "message" sent by making narcotics illegal. Tobacco is legal for adults, does not carry nearly the same stigma as illegal drugs, is far easier for a teen to obtain, and carries much lower penalties for its use, and still it is used by teens at about the same rate as illegal drugs.  In fact, in the figures you can see the legal tobacco use falling faster than illegal drug use.

So what has prohibition, prohibition-related drug violence, and hundreds of thousands of people in jail for drug use achieved?

Public Schools Not Underfunded, Teachers Not Underpaid

The single post from way back that I still get the most Google hits from (and the most nasty email, I might add) was my post on the myth that public schools teachers are underpaid.  This was a follow-on post to my lengthy post fisking the NEA's school improvement plans and here too.  The premise in all these posts was that 1) Public schools actually spent more per pupil than private schools that do a better job and 2) Teachers, when you adjust their total hours to match other workers who don't get summers off, make a salary very competitive to other professionals, even before their hefty government benefits package.

The Goldwater Institute has just completed a study of Arizona private schools, and has come to many of the same conclusions.  The study's author, Andrew Coulson, summarizes the findings:

In a study released yesterday
by the Goldwater Institute, I analyze the results of their most recent
private school survey. Among the other fascinating findings is that
public schools spend one-and-a-half times as much per pupil as do
private schools. Or, looked at the other way, private schools spend a
third less than public schools.

Some other fascinating tidbits:

Teachers make up 72 percent of on-site staff in Arizona's independent education sector, but less than half
of on-site staff in the public sector. In order to match the
independent sector's emphasis on teachers over non-teaching staff,
Arizona public schools would have to hire roughly 25,000 more teachers
and dismiss 21,210 non-teaching employees.

When teachers' 9-month salaries are annualized to make them
comparable to the 12-month salaries of most other fields, Arizona
independent school teachers earned the equivalent of $36,456 in 2004 "”
about $2,000 less than reporters and correspondents. The
12-month-equivalent salary of the state's public school teachers was
around $60,000, which is more than nuclear technicians,
epidemiologists, detectives, and broadcast news analysts. It's also
about 50 percent more than reporters or private school teachers earn.

My kids go to an absolutely fabulous private school here in Phoenix.  It is secular and (gasp) actually runs for-profit, so it has no endowments or sources of grants or charitable funds.  In exchange for a great education that far outstrips the quality of even the best local schools, it charges a tuition substantially less than the Phoenix-area per-pupil public school spending (and it offers a 20% discount for each child over one).  If you are considering a move to the area, email me and I will give you more detail.

More here on the virtues of school choice.  This is a sort of related post on the barriers to starting a private school.

Does This Really Work? Stock Scam Update

About once a week, I get a call from some stock sales boiler room that begins "My name is ________, do you remember me?  We talked about 6 months ago about a company named ________."  He then, if I let him, will proceed to tell me that he gave me a buy on this stock at that time and it's gone up some unbelievable percentage since then.

There is one problem.  We never talked before about a stock.  I never, ever let a boiler room guy go more than two sentences without hanging up or challenging his BS, so we couldn't have talked about it.  On a couple of occasions when one of the guys who called actually made the mistake of giving a specific date in the past for his call, a quick check of my calendar showed that I was out of town both times.  One guy got kind of scary.  I made the mistake of saying "Look, I know that Tony Soprano or whoever is standing beside you pushing this stock, but I am not interested and I can spot your line of bullshit a mile away."  The guy then proceeded to tell me, as a thinly veiled threat I guess, about his prior convictions for throwing a Molotov cocktail into the offices of someone he did not like.

What these guys are trying to do is to fake a track record of good stock picking.  Reputable brokers used to call me once in a while and say -- here are ten stocks, write them down and I will call you back in 6 months and you can see for yourself if I know how to pick stocks.  These new guys skip this step, looking backwards to find a stock that did well over the last 6 months and then trying to convince you they told you about it months ago before it went up. 

Is anyone out there so busy that they fall for this, and allow themselves to be convinced they had such a conversation in the past?  I get these calls at least once a week, so if they are expending this effort, it must be working on someone.

Firefox 2.0 Is Here

Come and get it.

Update:  First impression, the inline spell checker alone is worth the upgrade.

OK, the Post Office Still Sucks

I had been lulled into thinking maybe the US Postal Service was modernizing, but I was wrong.  I have a PO Box in Colorado where I have my mail for our business forwarded to our Phoenix office for the winter months.  However, there is apparently absolutely no way to have all the mail coming to that box forwarded.  It can only be forwarded by name.  So, if I have 7 business names and 12 employees with mail in that box, I have to submit 19 change of address cards.  And, if anyone makes a typo in mailing to one of these 19 names, it won't get forwarded - only if the letter is addressed to the name exactly as it is written in the change of address card will it get to me.  Anyone want to guess how often that happens?

Congrats to Scott Adams

Scott Adams and his Dilbert cartoon have brought me a lot of mirth over the years.  In fact, Dilbert and Dogbert look down on my right now from an animation cell over my desk.  So I was very excited to see his good-news story about his partial recovery from a disease that stole his voice. 

As regular readers of my blog know, I lost my voice about 18 months
ago. Permanently. It's something exotic called Spasmodic Dysphonia.
Essentially a part of the brain that controls speech just shuts down in
some people, usually after you strain your voice during a bout with
allergies (in my case) or some other sort of normal laryngitis. It
happens to people in my age bracket.

I asked my doctor "“ a specialist for this condition "“ how many
people have ever gotten better. Answer: zero. While there's no cure,
painful Botox injections through the front of the neck and into the
vocal cords can stop the spasms for a few months. That weakens the
muscles that otherwise spasm, but your voice is breathy and weak.

The weirdest part of this phenomenon is that speech is processed in
different parts of the brain depending on the context. So people with
this problem can often sing but they can't talk. In my case I could do
my normal professional speaking to large crowds but I could barely
whisper and grunt off stage. And most people with this condition report
they have the most trouble talking on the telephone or when there is
background noise. I can speak normally alone, but not around others.
That makes it sound like a social anxiety problem, but it's really just
a different context, because I could easily sing to those same people.

Except in Scott's case, he may have actually recovered.  How he got there is an amazing story, read it all.  From it, you can pick up three lessons:

  • The human brain is weirder than we can imagine
  • You do not want to get Spasmodic Dysphonia
  • Never give up

What are Business Ethics?

The Market Power blog noticed something that also tweaked my interest, in an article from the Chronicle of Higher Education:

Today's M.B.A. students are not as ethically challenged as recent
reports make them out to be, according to the findings of a study being
released today at a global conference of business educators and
leaders. In fact, 81 percent of those responding to a recent survey
believe businesses should work to improve society, and 78 percent of
them want "corporate social responsibility" integrated throughout their
core courses.

The survey results will be presented during a three-day
conference, "Business as an Agent of World Benefit," at Case Western
Reserve University, in Cleveland. The conference, which began on
Monday, has drawn 440 management educators and business leaders, as
well as about 1,000 online participants.

I know this issue has been debated in circles, but I still have real heartburn defining business ethics as "corporate social responsibility."  In my mind, and as reinforced by cases like Adelphia and Enron, the number one overriding ethical responsibility of corporate managers is their fiduciary responsibility to the company's owners.  Second is their responsibility to comply with the law (though sometimes the law is so muddled and contradictory that may be difficult).  Third is the obligation to be honest in dealings with employees, suppliers, and customers and to honor the commitments that the company has made to all three. 

In this context, asking a manager to divert the company's resources away from honoring these commitments or providing a return on the shareholder's investment, instead focusing them on some other nebulous entity called "society," is wholly unethical. 

Awesome Statement of Principles

From Arnold Kling, one of those articles so good I have trouble excerpting it to do it justice.  Here is just a small taste of some of the principles he puts forward:

1. Liberty is important for its own sake. People are entitled to make their own choices.

2. There are other values in addition to liberty. However, many
noble causes end up infringing on liberty without achieving their
desired ends. Government policies should be evaluated on the basis of
their consequences, not on the basis of how they make us feel. It may
feel good to set a minimum wage, to impose rent control, or to declare
a war on drugs, but the evidence is that such policies tend to work to
the detriment of their intended beneficiaries.

3. I value relieving the suffering of others. However, compared with
liberals, I have considerable humility when it comes to advocating
taking other people's money in order to satisfy my urge to alleviate
poverty.

4. Corporate power is adequately checked by market forces.
Competitors are the main force protecting consumers. Alternative job
opportunities are the main force protecting workers. For corporate
power to be a threat, it must be allied with government power.

Please, go enjoy the whole post.

PS- OK, if you really aren't going to read the whole thing, here is another taste:

I believe that in reality what has helped the less fortunate is
economic growth. Today's elderly are affluent not because of Social
Security, but because of all of the wealth created by private sector
innovation over their lifetimes. Government involvement in health care
and education is an impediment to progress in those fields. Job
training and welfare are demonstrable failures.

The Feds May Have to Come Clean

From Marginal Revolution:

The FASAB has asked
that the United States government start including future Medicare and
Social Security liabilities in current budget deficit figures:

Monday,
the Federal Accounting Standards Advisory Board released a proposal in
which the government would have to account for the cost of future
Social Security payments year by year as people build up entitlements.

Seen in advance of its release by the Financial Times, the switch in
accounting practices would be an international accounting anomaly, as
most other governments treat social insurance as a political commitment
to pay future benefits rather than a financial liability, the newspaper
said.

The FASAB is made up of six independent members who support the
proposal and three opposing members from the U.S. Treasury, the White
House Office of Management and Budget and the Government Accountability
Office.

I support this change despite the fact it may result in what I consider bad outcomes (e.g. big tax increases) as the magnitude of future liabilities become clear.  Tyler Cowen also argues it may make these programs harder to scale back, since it shifts the future payments from a political promise to a financial commitment.  But just like free speech, one has to be consistent in one's support for transparency.

If this all seems arcane to you, let me give you some perspective.  Today, Jeff Skilling was given over 30 years in jail for various accounting-related frauds, supposedly hiding losses and liabilities from shareholders's view.  But what Skilling was convicted of doing were minor, subtle accounting tricks involving penny-ante sums of money compared to the egregious games Congress plays with accounting for the federal government's future liabilities.  Skilling was accused, for example, of booking future liabilities in certain joint ventures where they were hard to find; the feds, in contrast, do not book future liabilities at all.

Dave Barry was Right about Having Sex with Dogs

In a really funny interview, Dave Barry lamented that the first argument he always heard against being a libertarian was that in a free society, "everyone would have sex with dogs."  Among other funny stuff, he said:

I got a few letters, mostly pretty nice. One or two
letters saying, "Here's why it wouldn't work to be a libertarian, because people
will have sex with dogs." Arguments like, "Nobody would educate the kids."
People say, "Of course you have to have public education because otherwise
nobody would send their kids to school." And you'd have to say, "Would you not
send your kids to school? Would you not educate them?" "Well, no. I would. But
all those other people would be having sex with dogs."

He was right!  Here is Sean Gleeson, via Glen Reynolds, arguing that libertarians are wrong, because they ... wait for it .. will allow people to have sex with animals.

These pro-bestial arguments are disarming to any honest and consistent libertarian. Even Instapundit Glenn Reynolds allows
that he's "got nothing against" bestiality, explaining "since I'm happy
to eat animals it's hard for me to consider people having sex with them
to be, you know, more exploitative."

That's because libertarianism is fundamentally wrong.

The worthiest argument against bestiality is not that it is "cruel," nor that it is "exploitative." It is that it is a violation of human dignity.

Bestiality
is so very wrong not only because using animals sexually is abusive,
but because such behavior is profoundly degrading and utterly
subversive to the crucial understanding that human beings are unique,
special, and of the highest moral worth in the known universe"“a concept
known as "human exceptionalism."

Within the
narrow blinders of libertarianism, laws can only be justified by appeal
to an unconsenting victim. Human dignity has no place in the
libertarian worldview, and the libertarian is left with no basis to
outlaw what he calls "victimless crimes." Prostitution, polygamy,
pornography, incest, drug abuse, bestiality, and a host of other
crimes, being consensual, must be legal, and that's that.

And
this is libertarianism's greatest failing. The libertarians happen to
come to the right conclusions on a great many issues of policy, and I
am happy to ally with them on those issues. But libertarianism is not
an adequate theory of governance.

By the way, just so all of you can think less of me, I have no problem legalizing prostitution, polygamy,
pornography, incest, drug abuse, and bestiality involving consenting adults (kids, who by definition are not legally capable of making adult decisions, are a different legal matter).  Here for example is my rant on legalizing prostitution.  Here is my favorite ode to Polygamy.  Here is my summary post on letting individuals run their own damn life.

When people come to tell you that it is OK for them to use coercion and force against you, but only to protect you from yourself, or even more nebulously to protect your "human dignity," run away screaming.  Here is a bet:  Give me absolute dictatorial powers but limited only to things I could justify as "protecting human dignity" and I would have a full-bore fascist state built by the end of the week.  Because that phrase can freaking mean anything at all.  And it is always, always, always the person who makes such statements who envisions themselves (not you our me!) defining the terms.

I am not sure what my "dignity" is or where it rests, but please, as long as I am not hurting anyone else, leave the protection of it to me alone.

Burning Climate Skeptics at the Stake

Ronald Bailey makes a plea for free scientific inquiry in response to Dave Roberts proposal vis a vis climate skeptics.  Mr. Roberts said, in part:

When we've finally gotten serious about global warming, when the
impacts are really hitting us and we're in a full worldwide scramble to
minimize the damage, we should have war crimes trials for these
bastards"”some sort of climate Nuremberg

Oh goody, yet another reason I will be put up against the wall come the progressive revolution.  I would give Mr. Roberts a helpful suggestion:  A better analog for prosecuting people over their scientific beliefs would be the Catholic Church's various attempts to stamp out heresy, including their prosecution of Galileo for his views that the earth orbits around the sun, rather than vice-versa.

My views on the reasonable skeptical middle ground on climate change here. (and more here)

Besides, I would argue that progressives like Mr. Roberts willful ignorance of the science of economics has been far more destructive than potential scientific misreadings of global warming.

Slavish Devotion to Political Correctness

With the proviso that I don't know anything about the people involved, I will say this controversy seems to be about nothing. 

Maryland Lt. Gov. Michael S. Steele accused a leading Democratic
congressman yesterday of racial insensitivity for saying the Republican
candidate has "slavishly" followed the GOP.

Steele, an African
American running for the U.S. Senate, was reacting to remarks by House
Minority Whip Steny H. Hoyer, who characterized Steele this week as
having had "a career of slavishly supporting the Republican Party."

To say someone is "slavishly following" or showing "slavish devotion" is so common that I think you have to give the benefit of the doubt that the intention was not racial.  Here are some Google searches:

This is perhaps the dumbest fake-racial-gaffe since the kerfuffle in Washington about the word "niggardly" or the airline passenger lawsuit against saying "eenie meenie minie moe."  I could not find even one article in a quick scan that seemed to have any racial context -- these are merely very common phrases used in political discourse because they imply someone is somehow an unthinking tool of some organization rather than a person who thinks for himself.

By the way, it's illuminating to see the Republicans play the race / political correctness card in the
heat of political battle just as fast as the Democrats would.  Which, ironically, seems to be just as fast as Democrats are willing to play the "Don't vote for the gay guy" card, which is usually thought of as a Republican political tool.  Can anyone still believe that there is any real difference between the two parties?

I Am Done with the Cardinals Until...

I am done with the Cardinals until they get an offensive line. I have written many times about the sad, failing strategy of drafting high-profile position players (particularly wide receivers) but paying no attention to the offensive line.  The Cardinals have one of the best receiving corps in the nation, have what looks to be a great young quarterback, has a top-notch running back, but did NOTHING over the winter to shore up what last year was a crappy O-line.  This is despite being $10 million under the cap!

And you saw it last night.  Commentators have criticized the coaches for getting too conservative in the second half of last night's debacle, and certainly that is true.  But a good team with a back like Edgerin James should be able to close out a game in the fourth quarter by pounding the ball on the ground.  And the Cardinals could not, with James averaging less than 1 yard per carry after the opening drive in the first quarter.

I give up.  I am tired of getting suckered onto the bandwagon.  Until the Bidwells crack open the wallet and focus some cap money on the O-line, I am back to rooting for the Broncos.

Update:  Greg Easterbrook piles on:

When my two football-crazed boys got up early this morning I said,
"Guys, Arizona was ahead by 20 and had the ball on the last play of the
third quarter." Immediately both said, "And the Cardinals lost." Not
only did Arizona blow a late 20-point lead at home in front of a
national television audience; the Bears committed six turnovers and the Cards still managed to lose. Arizona held Chicago to nine first downs and was plus-four
in turnovers, yet managed to lose. In the closing seconds, Arizona had
last year's Pro Bowl kicker lined up for a 41-yarder to win, and
trigger what would surely have been wild civic celebration, and still
lost. What's a stronger expression than "pitiful"? We must now twist an
old line and proclaim: Whom the football gods would destroy, they first
make Arizona Cardinals.

 

Does the Left Really Believe this?

When I see statements like this, I am left to wonder whether folks on the left really believe this, or if it is just throwaway political rhetoric which no one really expects intelligent people to believe (key passage in bold):

But how are people dealing with these drops on their own today?
Mostly by going into debt. As I show in my book, median household debt
as a share of income for married parents was more than 125 percent of
income in 2004. The economist Herb Stein once said, "If something can't
go on, it won't." And the debt hemorrhage of the American family simply
can't go on.

If the returns of rising risk add up to the ability to borrow more
to dig oneself out of short-term holes (thus digging a deeper long-term
hole), then I think we can safely say that most Americans would be
happy to give up the returns to obtain greater security.

But here's the kicker: We can provide security and help our
economy. Just as businessmen and entrepreneurs are protected against
the most severe economic risks they face to encourage economic
investment and growth,
we are most capable of fully participating in
our economy, most capable of taking risks and looking toward our
future, when we have a basic foundation of financial security.

How are businessmen and entrepeneurs protected?  By who?  I own and run my own small business, and I have yet to encounter
anyone who has given me any help or succor in our bad years. Or good
years. I don't even get covered by the minimum safety net type stuff my
employees have (workers comp, unemployment) without paying extra out of
my own pocket, which they don't have to do.

This is exactly the kind of throwaway absurdly false statement that
makes it impossible for me as a small business owner to take anyone on
the left seriously
, however much I am attracted to them for their
position on a variety of social and war issues. I am sure that this is
the type of statement that most of his readers on the left nod their
heads to, sure that all of us business owners are all dialed into the
fat life somehow via the government, when in fact I spend most of my
life dealing with the myriad of government-required wastepaper that
makes it nearly impossible to run a business at all.

  I am certainly willing to believe that there are certain Fortune
100 companies that recieve all sorts of government rents -- Steel
companies, in the form of protectionism; Wal-mart, in tax abatements
and eminent domain handouts; ADM, in the form of ethanol subsidies;
tobacco companies, in the form of government roadblocks to new
entrants.

However, these type of large politically connected corporations make
up about .001% of the total mass of corporations. And, entrepeneurs,
unless they are already rich and powerful from a previous business,
never get any breaks and in fact often face government roadblocks set
in place by powerful incumbents with political pull. I am all for
eliminating these coporate welfare handouts and incumbent protection
schemes. Before you scream aha! remember that 3 of the 4 government
rent recipients I listed as examples are beneficiaries of programs from
the left side of the aisle.

I discussed this risk-shift concept in more depth here.  One thing I didn't mention in the previous article was the author's attempt to tie household debt to income risk.  I skimmed the book and didn't see any
empirical linkage between rising income uncertainty and household debt.
I am willing to believe they both went up at the same time, but
correlation is not equal to causation. Ten years ago, when folks
lamented rising household debt, it was an issue of personal
responsibility and having the discipline to live within one's means.
Are we past that now? Is debt really going to be added to the list of
things nowadays that are-not-my-fault?

Update:  If he is referring to stuff like this, I share his outrage.  But it doesn't justify his general statement.

You Can't Win

I have been off in the back country of Wyoming, but happened to see this headline from the Casper, Wyoming paper the other day when I was passing through civilization:

Gas price drop raises concern

Why am I thinking that when gas prices rose sharply last year, they didn't run a front page headline that said "Gas price rise a huge boon."

Arizona 9/11 Memorial

I haven't really commented much on the local brouhaha over the Arizona 9/11 Memorial.  In short, critics argue the memorial does little to honor the actual victims, and spends too much time with irrelevant trivia and "America asked for it" messages.  The whole kerfuffle just reinforces my point that it takes time to gain a historical perspective on anything, and rushing to change building names or build monuments or put people on currency can often lead to decisions that are embarrassing given a bit more time for historical perspective to develop.

That being said, I thought this was a pretty good investigative report on the influences behind the memorial design (you may or may not be non-plussed by the alt-weekly writing style).  Of course, since it is impossible to get any real reporting out of our main paper, the story comes from our alternative free weekly, which runs rings around the Republic in terms of investigative reporting.

New New Deal Programs?

Hit and Run, trying to make a different point, quoted this statement from Harold Meyerson (my emphasis added):

But the new growth of selective libertarianism in the Democratic ranks
is hardly going to be the main source of controversy in coming party
debates. More likely, that debate will pit those who think retraining
is the answer to our more layoff-prone society (that's the Bob Rubin
solution) against those who think that retraining needs to be
supplemented by, for instance, publicly funded alternative energy
programs that would generate millions of jobs
(that's the solution of a
number of union leaders, and one that I favor as well). The latter
position is clearly more in the New Deal liberal mode, but Rubin's is
hardly libertarian.

Do serious people actually favor publicly funded alternative energy programs of the scale that would employ millions of people?  Note that since the total civilian labor force is approximately 150 million people, he is talking about a program encompassing several percent of the US workforce.  I am supposed to be on vacation this week, but here are a couple of random thoughts:

  • A huge government make-work program seems to be an odd response to an increase in employment volatility, which is how the problem is framed, even by Meyerson.  He calls it our "layoff-prone society."  I don't accept that this is necessarily a bad thing, but even if it is, a jobs program does not solve it.  Our unemployment today is at a low level (less than 5%) so that the problem, if it exists at all, has to be volatility, not the absolute size of employment.  So a jobs program helps, how?
  • I will confess a big government-funded jobs program would reduce employment risk in one way:  once someone is hired by the government, whether it be a teacher or bureaucrat,  it is impossible short of a felony conviction to fire them, no matter how horribly destructively incompetent they are.  So anyone hired by this new job program would have a job for life, I guess, though at an enormous dead-weight-loss of the overall economy.
  • The current economy hovers near full employment.  That means that millions of people sucked by the government into an alternative energy program would be pulled out of areas the market currently says is the most productive place for them.  Unless the government has identified a massive market inefficiency, such a program will net reduce the productivity and output of the economy.  Remember -- these millions of people are likely employed somewhere else today, so those places they are employed either have to scale back or pay more for labor.
  • Does anyone really think the government is going to make the right technology and investment choices in such a program?  It will take about 47 seconds before the investment process is politicized and spending is handed out as pork to valued supporters in key Congressional districts. (just look at ethanol and the Midwest Archer Daniels Midland lobby). Remember, the government has been pouring all its investment and subsidies and regulations (e.g. zero emissions requirements) into plug-in electric cars, which still are not there technologically.  In the mean time, the market has latched onto hybrids, a technology actually opposed at first by government energy czars in places like California (because they were not zero emissions).  Hybrids have done more to reduce automotive fuel consumption than any of the technologies, from plug-ins to fuel cells, that the US government has supported in any big way.

Postscript:  Yes, I know plug-in hybrids may be here soon, but batteries are apparently still not where they should be.  I would love to have a plug-in hybrid.  Note, of course, a plug-in hybrid is very very different from a straight electric car, which was the choice of the bureaucrats.  Also, I know that some areas have started to subsidize hybrids, for example by allowing their use by one passenger in the car-pool lane.  These are late-to-the-party efforts to claim some government credit for a private market trend already in progress.

Update:  In fact, today's SJ($) brings us a relevent example:

[Former Airbus CEO] Mr. Streiff talked of moving production jobs between
partner countries, running Airbus like a business. For the first time,
there was talk of apportioning work on the basis of competitiveness,
not national entitlement. There were hints that Airbus should emulate
Boeing with major risk-sharing partnerships, looking beyond Europe for
new product development resources and production sites. He even
committed the ultimate sin"”publicly admitting that Airbus had fallen
over a decade behind Boeing in new product development.

In his exit statement, Mr. Streiff said, "I
progressively came to the conviction that the mode of corporate
governance at Airbus didn't allow for the success of my plan." In other
words, the now former CEO implies, he was blocked by people who like
the status quo. So who would be happy with the status quo when the
situation is degenerating with each day? Well, any government official
who wants governments to stay in charge of the economy. The last thing
they want to see is private sector cash reinventing the fruit of their
state-directed industrial policy.

For the best clue to this dysfunction, consider
France's finance minister, Thierry Breton. He recently told reporters
that Airbus is a "European success," but vowed to "defend this model."
Now why would a model need defending if it were successful?

Airbus was created when European governments
orchestrated their economies, creating new national and continental
champions according to politicians' whims. As far as industrial policy
goes, Airbus was a no-brainer: The jetliner industry offers guaranteed
growth rates and extremely high barriers to entry. Take some legacy
industrial assets, insert government cash, find some talented sales
people, and watch it go. Every other European industrial
scheme"”shipbuilding, cars, Concorde"”obliterated value. Airbus was the
only state-supported success. Unfortunately, Europe's politicians
forgot a crucial fact: Airbus succeeded despite government industrial
policy, not because of it. In fact, this government interference has
created some serious trouble.

Look at the Airbus record: a series of moderate
successes (A300/310, 330), one huge home run (A319/320/321), and some
lamentable but forgivable near misses (A340, A340-500/600). But with
the full support and connivance of parent governments, they launched a
spine-breaking disaster, the superjumbo. Without the A380, Airbus would
still be a tremendous success. Instead, they've got a serious
industrial crisis, right in the middle of the best jetliner market in
years. Mr. Breton's "model" of state-guided industries is alchemy in
reverse: spinning gold into straw.

Does Anyone Actually Work for their Paycheck in France?

Hit and Run pointed out this story about a left-wing French newspaper that is looking to the Rothschilds for financial help.  I thought this would be a more interesting story of hippie meets banker, but I did find this one bit fascinating (shown in bold):

Mr. Rothschild, a scion of the powerful banking family,
forced out the long-serving editor of the paper in the summer. Serge
July, the editor who had created Libération along with
philosopher-writer Jean-Paul Sartre, said he resigned in hopes that his
departure would help save the paper from more radical changes.

Mr. July's exit was covered in the French media as the end of an era, a French version of the Japanese
seppuku, or ritual suicide, by a man who represented a more uncorrupted, hopeful France.

Since Mr. July left, some of Libération's best-known
reporters have quit, including Florence Aubenas, who was held hostage
in Iraq for six months in 2005. They have invoked the "conscience
clause" in French law that requires media owners to continue paying the
salary of journalists whose honor is offended by the owners' policies
or politics.

How screwed up does a legislature have to be to pass something this ridiculous?

Kos is not Tempting

Leading "progressive" blogger Markos Moulitsas is trying to tempt libertarians to the progressive cause.  He tries to convince libertarians that growing corporate power should scare them more than government power.  Uh, no.  Hammer of Truth has a good rejoinder:

Moulitsas still cites corporate power over people as a problem, and
still fails to recognize that corporations gain their undue power from
government. Government is the enabler, empowering corporations to step
on individuals and small businesses through both regulations and
subsidies. It's only by restraining government that corporations can be
held in check, and it's unfortuate that Moulitsas hasn't figured this
out yet.

Nearly every government law, from anti-trust to trade law to licensing, generally is written to benefit incumbents who make campaign contributions against upstart competition.  Also, by the way, corporations can't send people with guns to your house if you don't cooperate with their will. 

I have in the past been at the executive level of several Fortune 50 companies, and this notion of corporate power is hilarious.  In each case, our situation seemed like that of a wounded, lumbering elephant, trying to stay just ahead of a back of small but swift predators.  Sure, our very size meant that sometimes we did damage from our thrashing around, but to somehow call this power is absurd.  We were constantly fighting against our own size to try to hold on to what market we had.

Finally, with corporations, including the current great Satan Wal-Mart, I can always choose not to shop or work there.  The IRS and the US Congress offer me no similar protection from their control.

More good stuff along the same lines from Catallarchy
.

In this older post, I went into more depth on why progressives never will like capitalism, because they are too conservative (little-c).  At the end of the day, progressives like Kos want to reduce risk, variability, unpredictability and general "messiness".  These goals carry too high a price in terms of lost freedom and lost upside for humanity.

The "Compassionate" Politician

Ted Roberts gets at a pet peeve of mine when he says:

Everything that's wrong with government can be summarized by a single
sign that stands eloquently at the entrance to my neighborhood park. A
plot of green with tennis courts and soccer fields for athletes and
playground paraphernalia for junior swingers. I mean the kind that
really like to swing. Cursed with a civic attitude that makes me wary
of gifts from politicians, I note A boastful sign. "This playground
made possible by the city of Huntsville and the Madison County
Commission," it says. Not a blatant lie - just a fuzzy deception. About
as far from the truth as the mayor's office downtown is from this
suburban playground.

I think it's the tone of our "governors" (using the word in a literal
sense) that bothers me. Their proclamations of achievement. They are
ignoring the contribution of me and my fellow taxpayers to this oasis.
They forget that we are a society of the taxpayers, by the taxpayers
and for the taxpayers.

I would go further.  I hate it when politicians are called "caring" or "compassionate" when the sole evidence for this is the fact that they take my money and give it to someone else or build something with it that they can put their name on.

Update: Fixed link

Don't Be Afraid to Let Your Enemy Speak

In this post, when I said that I thought the university had a duty to
intervene with protests only when the protests had the effect of
silencing or preventing invited speakers from speaking, this is the
type of thing I was talking about

Students stormed the stage
at Columbia University's Roone auditorium yesterday, knocking over
chairs and tables and attacking Jim Gilchrist, the founder of the
Minutemen, a group that patrols the border between America and Mexico. 

Mr. Gilchrist and Marvin Stewart, another member of his group, were
in the process of giving a speech at the invitation of the Columbia
College Republicans. They were escorted off the stage unharmed and
exited the auditorium by a back door. 

Having wreaked havoc onstage, the students unrolled a banner that
read, in both Arabic and English, "No one is ever illegal." As security
guards closed the curtains and began escorting people from the
auditorium, the students jumped from the stage, pumping their fists,
chanting victoriously, "Si se pudo, si se pudo," Spanish for "Yes we could!"

I don' t think such thuggery is protected by the first ammendment, and
certainly a private institution should be able to make sure their
invited speakers actually get to speak.  Columbia really needs to rethink its free speech policies, if it allows this behavior to occur but shuts down the hockey team for this.

By the way, I am a strong detractor of the Minutemen, their goals, and
the activities.  It's good for the soul - everyone should take the time
to defend the free speech of someone they disagree with.  Mr. Gilchrist should have been allowed to speak.  This is unfortunately yet
another example of where I am horrified by the actions of people who
agree with me.  I mean, from a PR standpoint alone, the Minutemen could not have scripted a protest that would have done more than this one to enrage and energize its supporters.  STUPID!  For my fellow travellers in the pro-immigration
movement, I would suggest you read this:  Why its good to let your enemies speak.

Update:  I was correct -- immigration foes are using this stupidity as a rallying cry.  While I often disagree quite strongly with LGF on this issue, they have a good quote from the perpetrators of this protest that highlights exactly the "free speech for me but not for thee" logic that I hate.  First they say, as all free speech opponents say:

We celebrate free speech.

Uh, OK.  Then they continue:

for that reason we allowed the Minutemen to
speak

Mr. Gilchrist was an invited guest of a private institution.  Your permission is not required or relevant.  The implication is that you somehow have a veto over everyone's speech, and they speak at your sufferance.  And finally this:

The
Minutemen are not a legitimate voice in the debate on immigration.

This is the key, absolutely dangerous assumption that all-too-many people hold in this country.  That somehow speech can be parsed into "legitimate" and "illegitimate", with the clear implication that illegitimate speech has no first amendment protection.  But who decides what is legitimate?  Of course, implicit to anyone who says this, is the assumption that "why, me and my guys would decide."  It is for this reason I have opposed "hate speech" laws in the past.

 

Sorry About the Feed Spamming

I apologize to my feed subscribers - some of you got spammed with two or three copies of some of the same old posts.  Oops.  I had to fix up my XML to get it to work right with FeedBurner and every time I republished I think I was sending out new feeds of the same posts.

Anyway, I think we are done, though there still seems to be some oddball stuff happening with the old RDF feed.  If you are having problems, you may change your feed source to Coyote Blog to this:

 
http://feeds.feedburner.com/CoyoteBlog

You don't have to switch -- the old feed sources will still work if they are operating OK for you.  Also, I hopefully got the auto-detect code right on the page, so that just putting in www.coyoteblog.com in most modern feed readers will cause the reader to auto-detect the correct feed.  Again, though, don't hesitate to comment or email with issues.

I am only $79.99 Million Short

I'm not really into the culture, so prevalent here in Scottsdale, of purchasing expensive cars and boats for use as ego-prosthetics (I drive a Volvo, for god sakes, a chick-anti-magnet if there ever was one).  But I have to admit this is cool, a new supersonic business jet.  The real breakthrough seems to be their ability to substantially reduce the sonic boom, which got the Concorde banned from over-land flights, to a legal and manageable level.  They claim sound levels 99% lower than the Concorde at ground level, though this is theoretical and has not been tested.

Qsst09
They don't mention fuel economy -- the Concorde drank fuel. 

Oh, and the price - expected to be $80 million for a twelve seat aircraft.  For those of you who don't routinely shop for private aircraft, this price is steep even in that rarefied market.  You can get a Boeing 737 outfitted very nicely as a private plane for half that.  But this new plane will get you to your house in Gstaad twice as fast.