Coyote Blog

It is not that often I get the opportunity to find something about taxes and markets in Kevin Drum's column that I agree with, but his guest blogger Paul Glastris has a good series of posts on state and local tax breaks, and even direct subsidies, for relocating businesses (first post here).  Glastris argues for the elimination of these tax breaks and subsidies, and I agree 100% with this conclusion, though not necesarily his legal justification for doing so (more on that later).

I have written a number of times about my frustration with a particular type of these subsidies - the public financing of stadiums for private sports teams (here, here, and here).  This stadium construction is usually undertaken as a result of corporate blackmail, where sports teams threaten to move unless they get a new stadium.  The dynamics of other tax breaks and subsidies to relocating businesses referred to by Glastris are usually similar, though these companies don't tend to have the monopsony power of sports franchises so they often get a smaller payout.

Why do local governments pay out huge incentive to corporations who after all have to put their business somewhere?  The answer is that they are caught in a classic prisoner's dilemma.  Basically, in this "game", each participant has individual incentives that seem to point to a certain set of actions.  Unfortunately, when players follow these incentives, the result is sub-optimized for everyone.

In this example, local authorities see a business that may move to town, and decide it is better to have it in their city with tax concessions than to have it in another city.  Since cities lose some of these battles and win some, and since cities that lose one battle tend to pay more to win the next one, the end result is that businesses end up being distributed fairly evenly, but cities have all given up huge tax concessions.  Clearly the ideal state, at least for city governments, is to not give any tax concessions at all.  In this case, businesses would likely still end up being distributed fairly evenly, but cities would not have given out tax breaks.

The only way to get to this end state is 1) have a philosophic change, with local citizens rejecting the use of government to affect relocation decisions (ie become libertarians!); 2) collude - have the council of mayors get together and sign a no new subsidy pledge or 3) have some higher authority police the local governments (that is the option explored in the Glastris article - can the US Government or courts constitutionally stop this). 

The Washington Monthly, in opposing these tax breaks, has a problem, though.  As good technocrats and liberal interventionists, they wholeheartedly support the government's right to regulate the hell out of business and commercial decision-making.  They can't, therefore, take the much cleaner libertarian argument I do, that the government should not be interfering in free, arms-length commercial decision-making at all. 

They are stuck with narrowly opposing just one kind of government interventionism (tax breaks to business) and this leads to a couple of problems in Galstris's argument.  The first is a consistency problem, which you can see in the attorney's letter Glastris quotes.  He argues in the first paragraph of his letter that these tax breaks violate the commerce clause because they unduly influence interstate commerce, then argues in his second paragraph that these tax breaks have no discernible influence on corporate decision making.  Well, if the second part is true, then their logic in the first part can't be true.

The other problem with their argument is that liberals want a commerce clause, as redefined by courts in the 1930's, as enabling massive government intervention, but in this case Glastris is trying to use it in its pre-1930's use, which was restrictive.  If the Glastris wants to take the position that the commerce clause limits state and local businesses from trying to change the decision-making and cost structure of businesses engaged in interstate commerce, wouldn't this same logic extend to making unconstitutional state-based business regulations?  If you can't give a local tax break to a certain industry, doesn't that mean you can't give a higher tax (say on lodging) to another industry?  The specific words of the Ohio decision referenced says:

... the tax scheme discriminates against interstate commerce by granting preferential treatment to in-state investment and activity.

I might ask, if you take this argument, wouldn't laws that make in-state investment and activity less attractive than other states also be unconstitutional? 

One final note.  As a libertarian, I have gone through phases on targeted tax breaks.  There have been times in my life when I have supported tax breaks of any kind to any person for any reason, by the logic that any reduction in taxation is a good thing.  I know there are many libertarians that take this position.  Over time, I have changed my mind.  First, targeted tax breaks seldom in practice reduce the overall tax burden - they tend to be made up somewhere else.  Second, these tax breaks tend to be gross examples of the kind of government coercive technocratic meddling in commerce and individual decision-making that I despise.  Almost always, they are trying to get individuals to do something they would not otherwise do, so in practice they tend to be distorting and carry all kinds of unintended consequences (as well as being philosophically repugnant).

It has always been ironic to me that those who started the "free speech" movement of the 60's have been in the forefront of clamping down on campus speech via speech codes.  The answer to this paradox was that the free speech movement was never about free speech, but about advancing a mostly Marxist point of view to the exclusion of all others.

FIRE, the Foundation for Individual Rights in Education, has a nice roundup of work they have done to defend free speech on campuses in 2004.  Hat tip to Virginia Postrel.

I don't know whether it warrants the "crisis" moniker (to me, government is always in a disastrous state), but Social Security is indeed facing an enormous cash flow shortfall in just a few years.  Those who use bogus government accounting to say that there is no problem until 2042 are either disingenuous or delusional.  People making this argument are saying that yes, cash flow will be negative, but those negative cash flows will come out of the huge Social Security trust fund, which won't be depleted until 2042.

Um, the only problem with this is that... there is no Social Security trust fund.  I mean yes, there is such a thing on paper with a large number next to it, but there is no actual pool of cash or investments to draw on.  The "trust fund" is full of government IOU's to itself - the actual cash was spent for general budget needs over the years.  As a result, in just a few years, Social Security will require:

• Massive new taxes
• Large benefits cuts
• A complete restructuring of all parts of the program
• More government borrowing

Good post at Assymetrical Information goes into it in more depth.

The Carnival of the Capitalists is up this week at Management Craft.  I haven't had time to read through everything, so I have no recommendations this week.  The site does note that future article submissions need to go to this site, as the old email system will no longer be used.  My hosting date in February is coming up soon, and I am definitely looking forward to it.

I have mentioned on a number of occasions that journalists seldom get science stories right.  Most journalists have no science background (if they were good at math and science, they would not have been journalism majors) and they and their employers have huge biases towards spinning every science story as an end-of-the-world disaster.  I remember when I lived in St. Louis we used to say that the local TV stations accurately forecasted 12 of the last 4 blizzards.

Here is a good story and analysis from Satblog analyzing one of the news stories popping us saying that we in the US are all at risk from 100 foot tsunamis or whatever.  The blog calls a recent Dallas Morning News front page story about a tsunami that could wipe out all of Florida

a great example of the crap that passes for science reporting these days, and demonstrates a fundamental misunderstanding of the scientific process.

George's Employment Blawg has a roundup of a lot of good HR-related blog posts.

This is wrong, wrong, wrong.  Yes, I know that there is a real risk, in fact a certainty, that dangerous people will be let out on the street.  But that is the bias of our entire legal system - the "beyond a reasonable doubt" standard and other protections of the accused routinely put bad people back on the street.  We live with that, because we would rather err in putting bad people back on the street than in putting good people behind bars for life.  Give them a trial, deport them, or let them go.  Heck, airdrop them into Paris for all I care, but you have to let them get due process or go free.

Beyond the usual promises to work out more and shave off 15 pounds or so, I can't think of a better New Year's Resolution than this one, from Atlas Shrugged:

I swear--by my life and my love of it--that I will never live for the sake of another man, nor ask another man to live for mine.

The only exception to this is my immediate family, which is really not an exception - I think the very definition of family is those people you move under the umbrella of your own self, to join you as part of your "I".

Happy New Year!

This story surprises me not at all, and, if you are a reader of this site and my Florida horror stories, you will not be surprised that it occurred in Florida.  After driving all the neurosurgeons out of town with frivolous malpractice suits, plaintiffs lawyers are now suing...because there are no neurosurgeons:

Florida, the family of the late Barbara Masterson is suing West Boca Medical Center because hospital staff was unable to locate a neurosurgeon willing to come to the scene to perform life-saving surgery after a stroke. "The incident occurred in February, when Palm Beach County neurosurgeons were refusing to perform emergency services for fear of skyrocketing malpractice costs."

Also see this story about a recent death in Pennsylvania because all the neurosurgeons had been run out of town.

Our family actually has a personal experience with this.  My dad (81 years old) broke his neck while at his ranch in central Wyoming.  As he was cared for in Casper, the largest city in the state, we soon found it impossible to get any quality time with the neurosurgeon, since there was only one left in all of the central part of the state!  Eventually, they got his neck stabilized enough to fly him to Texas on a medical evac jet where he could get real care and eventually surgery (happy ending, all is well and all the appendages still work fine).

Via the Commons, the story of how the Clear Skies initiative came off the rails, despite the fact it was initially seen as a win-win for both environmentalists and industry.  I don't know all the issues on the table, but I like the cap-and-trade concept for pollution control. 

Many folks, by the way, automatically assume that as a libertarian, I am automatically against pollution laws.  This is not the case.  In fact, this issue is a good example of how a thoughtful understanding of individual rights and property rights differs from just being blindly "pro-business".  In fact, pollution laws are nearly essential to strong property rights.  As I wrote then:

In fact, environmental laws are as critical to a nation with strong property rights as is contract law. Why? Imagine a world without any environmental legislation but with strong property rights. What happens when the first molecule of smoke from my iron furnace or from my farm tractor crosses over on to your land. I have violated your property rights, have I not, by sending unwanted substances onto your land, into your water, or into your airspace. To stop me, you might sue me. And so might the next guy downwind, etc. We would end up in an economic gridlock with everyone slapping injunctions on each other. Since economic activity is almost impossible without impacting surrounding property owners, at least in small ways, we need a framework for setting out maximums for this impact - e.g., environmental legislation.

Cap and trade strike me as the best, most free market way to limit pollution - this system shifts the burden of pollution control to the people and industries and technologies that can do it the cheapest.  Unfortunately, many environmentalists are command and control technocrats and/or socialists who greatly prefer having government micro-manage technology choices and industry by industry requirements.  Which is exactly what led to the problems referred to in the article around "new source review".

New source review is long and complicated, but basically says that existing power plants don't have to upgrade to new technologies, but new ones have to go through a very extensive environmental review and permitting process and have a suite of government mandated pollution control technologies installed.  OK, that has all been clear for 3+ decades.  The rub comes when a company considers upgrading or replacing a portion of a power plant.  For most of the life of the Clean Air Act, the government allowed utilities to upgrade and modernize plants without having to install the expensive suite of new controls.  The Clinton administration clamped down on this, making it harder to upgrade existing plants.  All the recent hullabaloo has occurred as GWB proposed to go back to the pre-Clinton rules.

This issue is a great test for environmentalists, because it separates them into those who really understand the issues and the science and legitimately want improvement, and those who care more about symbolism and politics.  Those who like symbolism have cast this move as a roll-back, and are fighting it tooth and nail.  Those who care about results know the following:

Experience under the Clinton rules has shown that most old plants will never be upgraded if they have to go through the planning process and install the new scrubbing and other technologies.  So, they will just keep running inefficiently, as-is, until they are finally shut down.  However, if allowed to be upgraded without review and new scrubbers, etc., they will become much more efficient.  No, they won't have the most modern scrubbing technology, but because they are more efficient, they burn less fuel (coal) to make the same amount of electricity and therefore will pollute less.  In some cases these rules even prevent switching to cleaner fuels like natural gas. 

In other words, most scientists, including scientific-oriented environmentalists, agree that GWB's proposal will result in less pollution, but environmentalists still oppose it because they don't like the symbolism of any pollution regulation appearing to be rolled back.  You can read a lot more about New Source Review and how it actually increases pollution in practice here.

Recently, the government announced that it would take over the United Airlines pilots pensions in the government-funded Pension Benefit Guaranty Corp.  This move is irritating pilots, because their pensions get reduced, and it is annoying to me as a taxpayer, that I have to bail out a company that was too screwed-up to fully fund its pension obligations. 

This points up the biggest danger of government guarantees -- it causes companies to be more reckless.  Back in the 80's, banks and S&L's made insanely risky investments with bank deposits.  The people who should have been most interested in this problem - bank depositors - ignored it because they felt safe that the government had guaranteed their deposits.  In the same way, airlines and other ailing businesses with defined benefit pensions cut back on pension funding when times were bad, and the very group that should have been crying foul - the company unions - did not, because they again counted on a bail-out.

I put the blame squarely on the company's management, who made a commitment to employees and then failed to keep it, and now are using government pension gaurantees as a subsidy to close their cash flow gap.  However, it is interesting to look at the role of unions too.  For decades, unions have demanded defined benefit pensions (ones that promise a fixed amount per month at retirement) and have opposed defined-contribution pensions (ones where the company promised to contribute a fixed amount today into an investment fund).  I assume the main reason for this is that unions do not want workers to bear the market risks on investments.

Over time, though, defined benefit plans have, despite this opposition, gone the way of the dinosaur (at least in private companies - most government jobs still have them).  This is for a number of reasons:

• 401-K accounts now offer much of the same tax-deferral benefits for defined contribution programs that defined-benefit plans had
• Defined-benefit plans turn out to have market risk too.  One is inflation - benefits levels may be guaranteed, but unexpectedly high inflation can effectively reduce them, while defined contribution plans, if invested correctly, will likely produce returns to offset these inflation losses.  In addition, during go-go stock markets, holders of defined-benefit plans found out that they did not enjoy the benefits of higher investment returns - their employers pocketed them (by the way, may Americans are discovering the same about their Social Security benefits).
• As employees move around more, workers have found that defined benefit plans are not very portable, and tend to punish workers who do not stay for decades.  401-K plans are much more beneficial to workers who do not stay their whole career, or at least 20 years, in one place.
• As United pilots have found, defined benefit pension plans are hard to police by current employees- there are just too many variables that allow companies to argue that the pensions are OK.  On the other hand, defined contribution plans are very easy to police- one can check the amount of contribution each month against the amount promised.
• Finally, defined benefit plans rely on their company staying in business and fiscally sound for decades into the future.  This may have seemed a good bet at US Steel or United Airlines in 1950, but would anyone make that bet today?  For any company?

I wrote here and here about the cost that licensing can impose on consumers, often with little measurable benefit.  It's worth repeating this Milton Friedman quote:

The justification offered is always the same: to protect the consumer. However, the reason is demonstrated by observing who lobbies at the state legislature for the imposition or strengthening of licensure. The lobbyists are invariably representatives of the occupation in question rather than of the customers. True enough, plumbers presumably know better than anyone else what their customers need to be protected against. However, it is hard to regard altruistic concern for their customers as the primary motive behind their determined efforts to get legal power to decide who may be a plumber.

In this same vein, Reason has an article on the Oklahoma case where the state's requirement that casket sellers be licensed morticians was challenged legally:

Memorial Concepts Online sells an oak coffin for about $2,000, compared to an average of around $4,000 at funeral homes in Oklahoma, where the company is based. By separating the purchase of caskets from the purchase of funeral services, Memorial Concepts can offer substantial savings, not to mention a shopping environment free of hovering morticians. But in Oklahoma, which allows caskets to be sold only by licensed funeral directors, such competition is illegal.

In the last couple of weeks, particularly after Santa brought one of my kids a new mini iPod, we have been having an Aerosmith revival.  It started with our recent trip to DisneyWorld, where my daughter and I discovered the job of Disney's "rockin roller coaster", which is an Aerosmith-themed roller coaster (no, really) with Aerosmith tunes blaring through the ride.

After standing in lines for a while listening to Aerosmith tunes (but not that long, Disney's Fastpass system really makes the waits much more manageable), my kids are now huge fans.

After years of enduring a procession of moonbats and losers running under the Libertarian Party banner, I am frustrated that the party can't produce a credible libertarian candidate I feel good about voting for.  I wrote more on this here just before the election.

Now I see that the Libertarian Party is asking for a second recount in Ohio, after the first one changed the vote tally all of 300 or so votes out of a 100,000+ margin.  The Party's candidate admits that the recount won't change the result:

They have said they don't expect to change the election results, but want to make sure that every vote is properly counted.

Then why the hell do it?!?  And why the hell should we use government money to do it.  And why why why the hell is the Libertarian Party, the party of not just small but minimal government, doing asking for this??

Thanks to Captains Quarters for the link.  This "count every vote" thing confuses me.  A scientist would laugh at you at the concept of error-less measurement. Every measurement and count has error - you just try to make the count or measurement error substantially smaller than the differential in votes.    In the Washington governors race or in the Florida 2000 Presidential race, the differential was/is probably within the error bar.  But certainly not in Ohio.

I have written in the last week here and here about how it is poverty, not global warming or any other tired explanation, that has the most to do with high death tolls from natural disasters. 

The Mises Institute makes the case in more depth.  Excerpt:

The correlation between poverty and destruction resulting from natural disaster seems to hold up not only with a cross-section of nations, but also over time. As nations become wealthier, their losses of human life from natural calamities tend to fall. Countries that experience economic growth are putting themselves in a better position to reduce the number of deaths that result from natural cataclysms, and the clearest way to produce that economic growth is to allow people to interact in the marketplace without government intrusion.

Collectivists, Progressives, and anti-capitalists have apparently moved on from Halliburton and targeted Walmart as the Satan of the moment.  Walmart is charge with everything from destroying communities to mistreating employees.

What most of these attacks overlook is that no one shops or works at Walmart except by their own free will - that shopping there or working there are better than their other choices.  Cafe Hayek points out this rather obvious but consistently overlooked point.  However, it is a hallmark of "progressives" that they distrust individual decision-making, so I guess it is not so surprising.  You can't compare jobs to some mythical ideal and claim that they don't measure up - jobs measure up or not only in comparison to other available opportunities.

A whole peninsula, wiped clean.  Ugly.  Thanks to LGF for the link.

Update:  The wider angle view of these photos are even more dramatic - note the new bay where there used to be farms:

More of these side-by-side tsunami before-after photo pairs are here.

Update #2:  We are getting a lot of Google hits on this.  For more before and after images, look here and  here and here (in this last link see the powerpoint download in the lower left).  This site has a ton of tsunami blog links, including pictures and video.  Here is a link-filled roundup (new 1/4) and an older one here, and another here.  And here is a dedicated blog.  Here is a 1/5 roundup of Indian blog posts about the tsunami and its aftermath.  And here is a local blog with news.  And here is the Amazon Red Cross donation page.

The concept of a cultural celebration by African-Americans of themselves and their history is a good one.  The specific values celebrated in Kwanzaa, however, suck.  They are socialist -Marxist-collectivist-totalitarian crap.   Everyone seems to tiptoe around Kwanzaa feeling that they have to be respectful, I guess because they are fearful of being called a racist.  However, I find it terrible to see such a self-destructive set of values foisted on the African-American community.  These values are nearly perfectly constructed to keep blacks in poverty - just look at how well these
same values have played out in Africa.

First, understand that I have no problem with people of any ethnic group or race or whatever creating a holiday.  Life is worth celebrating, as often as possible, even if we have to make up new occasions. One of the great things about living in Arizona is getting to celebrate Cinco de Mayo.

Second, understand that Kwanzaa is not some ancient African ethno-cultural tradition.  Kwanzaa was made up in 1966 by Dr. Maulana Karenga.  Karenga was a radical Marxist in the 60's black power movement.  Later, Karenga served time in jail for torturing two women:

Deborah Jones ... said she and Gail Davis were whipped with an electrical cord and beaten with a karate baton after being ordered to remove their clothes. She testified that a hot soldering iron was placed in Miss Davis' mouth and placed against Miss Davis' face and that one of her own big toes was tightened in a vice. Karenga ... also put detergent and running hoses in their mouths, she said."

Interestingly, after this conviction as well incidents of schizophrenia in prison where "the psychiatrist observed that Karenga talked to his blanket and imaginary persons and believed that he had been attacked by dive-bombers," California State University at Long Beach saw fit to
make him head of their Black Studies Department.

Anyway,  I give credit to Karenga for wanting to create a holiday for African-Americans that paid homage to themselves and their history.  However, what Karenga created was a 7-day holiday built around 7 principles, which are basically a seven step plan to Marxism.  Instead of rejecting slavery entirely, Kwanzaa celebrates a transition from enslavement of blacks by whites to enslavement of blacks by blacks.  Here are the 7 values, right from the Kwanzaa site (with my comments in red itallics):

Umoja (Unity)
To strive for and maintain unity in the family, community, nation and race

On its surface, this is either a platitude, or, if serious, straight Marxism and thoroughly racist.  Think about who else in the 20th century talked about unity of race, and with what horrible results.

In practice, the notion of unity in the black movement has become sort of a law of Omerta -- no black is ever, ever supposed to publicly criticize another black.  Don't believe me?  Look at the flack Bill Cosby caught for calling out other blacks.

Kujichagulia (Self-Determination)
To define ourselves, name ourselves, create for ourselves and speak for ourselves

Generally cool with me -- can't get a libertarian to argue with this.  When this was first written in the 60's, it probably meant something more
revolutionary, like secession into a black state, but in today's context I think it is fine.

Ujima (Collective Work and Responsibility)
To
build and maintain our community together and make our brother's and
sister's problems our problems and to solve them together

Um, do I even need to comment?  This is Marxism, pure and simple.

Ujamaa (Cooperative Economics)
To build and maintain our own stores, shops and other businesses and to profit from them together.

OK, I said the last one was Marxism.  This one is really, really Marxism. 

Nia (Purpose)
To
make our collective vocation the building and developing of our
community in order to restore our people to their traditional greatness.

There's that collectivism again

Kuumba (Creativity)
To
do always as much as we can, in the way we can, in order to leave our
community more beautiful and beneficial than we inherited it.

I guess I don't have much problem with creativity and make things better.  My sense though that if I was to listen to the teaching on this one in depth, we would get collectivism again.

Imani (Faith)
To
believe with all our heart in our people, our parents, our teachers,
our leaders and the righteousness and victory of our struggle.

What about in ourselves as individuals?  Through all of this, where is the individual, either individual responsibility or achievement?  It is interesting that a holiday that
was invented specifically to be anti-religious would put "faith" in as a value.  In fact, Karenga despised the belief in God as paying homage to "spooks who threaten us if we don't worship them and demand we turn
over our destiny and daily lives."

However, this is in fact very consistent with the teachings of most statists and totalitarians.  They tend to reject going on bended knee to some god, and then turn right around and demand that men go on bended knee to ... them, or other men.  This is in fact what this "faith" was about for Karenga - he is a statist laying the foundation for obedience to the totalitarian state.  He wants blacks to turn over their destiny and daily lives to their leaders, not to god.

So, in conclusion, Kwanzaa was designed as a celebration of creating a totalitarian collectivist Marxist racist state among African-Americans.  I may well get comments and emails that say "oh,
thats not how we celebrate it" and I will say fine - but Marxism is the core DNA of the holiday, a holiday created by a man who thought Lenin and the Black Panthers were all wimps.

Never wishing to criticize without suggestion a solution, here are alternate values I might suggest:

Freedom
-Every individual is his own master.  We will never accept any other master again from any race (even our own).  We will speak out against injustices and inequalities so our children can be free as well.

Self-Reliance - Each individual will take responsibility for their life and the lives of their family

Pride - We will be proud of our race and heritage.  We will learn about our past and about slavery in particular, so we will never again repeat it.

Entrepreneurship - We will work through free exchange with others to make our lives better and to improve the lives of our children

Education - We will dedicate ourselves and our time to education of our children, both in their knowledge and their ethics

Charity - We will help others in our country and our community through difficult times

Thankfulness - Every African-American should wake up each morning and say "I give thanks that my ancestors suffered the horrors of the slavery passage, suffered the indignity and humiliation of slavery, and suffered the poverty and injustices of the
post-war South so that I, today, can be here, in this country, infinitely more free, healthier, safer and better off financially than I would have been in Africa."

By the way, if you doubt that last part, note that in the late 90's, median per capita income of African Americans was about $25,000, while the per capita income of Africans back in the "old country" was around $700, or about 35x less.  Note further this comparison of freedom between the US and various African nations.  Finally, just read the news about the Congo or Rwanda or the Sudan.

Update:  Even years later, commenters insist on misinterpreting this last point as some sort of justification for slavery.  I am not sure how one can come to this conclusion in an article that drips with disdain for slavery, but folks will find what they want to find.  My mistake perhaps was to presume to speak for African Americans.  It is very possible that the enslavement of their ancestors and the legacy of racist crap that still exists in this country is not balanced by the prosperity blacks now enjoy in America vs. Africa.  So I will merely speak for myself and say the rest of us are immeasurably better off for having you here.

Several days ago in this post I made the point that the only connection between the recent tsunami deaths and global warming I could find was that 3rd world poverty, which global warming treaties will likely help lock in place, made people more vulnerable to the disaster.  Kendra Okonski makes a similar point in the Asian Wall Street Journal.  Note:

Appropriate infrastructure, including warning systems that can save lives, communications systems, transportation infrastructure, medical facilities, and sophisticated construction methods are the tangible benefits of economic development. Just look at the much lower death tolls when tsunamis strike Japan, where the average citizen is 43 times wealthier than his counterparts in countries such as Indonesia, and so much better placed to afford the infrastructure needed to minimize loss of life.

He goes on to point out how focus on the focus on global warming, combined with growth destroying treaties like Kyoto as well as a hodge-podge of other statist policies will conspire to keep many people locked in poverty:

This week's tragedy illustrates why environmentalists' proposals are preposterous and counterproductive. Policies such as the Kyoto Protocol -- a global treaty to limit emissions in industrialized countries -- would in fact harm the poor the most, by slowing economic growth and distracting attention from real and present problems.

So, in conclusion

The real problem for most of the people affected by the disaster is poverty. Whatever the earth, or its climate, may have in store in the next few decades, the best strategy to minimize human deaths and suffering is to tackle poverty through economic development and technological progress.

UPDATE:  More here at Cafe Hayek

Football Outsiders has their week 16 football rankings up here.  Previously, I explained why I like Football Outsiders here.

The amazing thing to me is just how bad Atlanta looks in these rankings, at number 19.  In fact, much of the NFC playoff mix looks bad, with ATL, SEA, and GB sitting at 19,20,and 21.  On the flip side, Buffalo and 5 and Baltimore at 7 could be the best teams to miss the playoffs.  Buffalo in particular has really been playing lights out, but they still need some help this week to make the playoffs given their really bad start and the strength of the AFC.

Interestingly, Buffalo gets in if they win and the Colts beat the Broncos.  The Colts are likely to play one of these teams in the first round.  If I were the Colts, I would much much much rather face the Broncos in the first round than the surging Bills.  Bledsoe may be a playoff question mark, but Plummer is even more so.  Therefore, the Colts, despite what Dungee is saying lately, have zero incentive to win this weekend and every reason to take a dive.

I found this interview with Dave Berry in Reason Magazine while cleaning up some of my IE favorites.  Its a bit old, but still fun to read.  A sample:

If we're spending $853 trillion on some program now, and next year we spend any less, that's "budget-cutting" to them. For them, the question is always, "What kind of government intervention should we impose on the world?" They never think that maybe we shouldn't.

It gives me a real advantage as a humorist because I get credit for having insight and understanding--and I don't. I don't have any insight or understanding on anything about the government. All I think is that it' s stupid--which is the one perspective that' s almost completely lacking in Washington.

His discussion of why libertarianism won't lead to everyone having sex with dogs is priceless.  No, I am not going to explain this, you have to read it.

Its now up here at the Radical Centrist.

You can actually watch the numbers move as it refreshes.  After spending yesterday watching the tsunami body count go up, this is a much better number to watch rise.  Update:  Now over $3 million.

Most of the campgrounds and recreational facilities our company runs are seasonal, meaning that they are only open from late-Spring to early-Fall.  Many are at high altitude, and are under 10+ feet of snow this time of year, so that they couldn't be kept open even if there was any customer demand.

The problem with this business model is that it tends to saddle us with a huge unemployment tax bill.  For those that don't know how unemployment taxes work -- and I certainly didn't before I got into this -- each time someone files for unemployment, the business is sent a notification.  If the person was fired for cause, or quit when work was available, and the business can prove it to the state, then the person is either denied unemployment or your business is at least not hit with the cost. 

In any other case, the person will get unemployment, and your business "experience" account is hit for your proportional share of that person's payments -- if you provided them with 100% of their employment the last couple of years then you get 100% of the cost.  Each year your tax rate (a percent of wages) is reset based on your experience account - so more unemployment claims by your ex-employees drives higher tax rates.

Even before recent problems I will describe in a moment, I have always felt that unemployment tax systems unfairly punish seasonal businesses.  Unlike at another company where a person might think they are getting a permanent job, then get laid off, my employees join in March and accept the job knowing that the job ends in September.

Well, I could live with that problem- we get hit with a month or two of unemployment until folks find another job.  Unfortunately, we now have a much worse problem, particularly in California (of course). 

Many of the people we hire are full-time RVers, meaning that they no longer have a permanent home, but roam about the country all year in their RV (I wrote about this trend here).  They work for us in the summer, and then many of them vacation all winter in places like Arizona and Mexico.  Unfortunately, many of these folks, particularly Californians, are filing for unemployment all winter while they play.

Now state rules, including those in California, require that folks applying for unemployment be looking for work, and so certify on a regular basis to the state.  However, a number of our folks are, I hate to say, lying about this.  I know of at least one pair who are on California unemployment and are not even in the country right now.  As a result, in California in 2005, I will be paying nearly 7% of wages in unemployment taxes, and the state of California will be paying in additional money from other sources, to help fund these people's winter vacations.

This really, really is irritating me, and I don't know what to do about it.  I have called the state of California on several occasions, but as long as the employee says they are looking for work, the state can't, or won't, do anything about it.  Some really annoying person at the state unemployment office told me that it was my fault, that my business should learn to plan better and this is the cost I pay for messing with people's lives by laying them off. 

Unfortunately, this "the business is evil, the employee is always right" attitude permeates nearly every state labor-related agency I have ever dealt with.  About a year ago I fired an employee for chasing a customer around with a baseball bat -- I even had a letter from the customer testifying to the whole sorry story -- and the state employment department refused to certify that the employee was fired for cause and our experience account got hit with all of the unemployment payments for this individual.

via Scrappleface:

As one unnamed reporter put it, "In the hours immediately following the disaster, millions of people in Thailand, India, Indonesia, Somalia and elsewhere turned their eyes toward America to discover whether the president would rush back to Washington D.C. and empathize with their plight. But Bush stayed in Crawford and made just one official statement, as U.S. military planes surveyed the damaged area and Air Force C-130 cargo planes with humanitarian goods headed for the region. It's as if Bush thinks that action is a substitute for news conferences."

LOL.  I have always hated the empathy dance after disasters, particularly the now required visit by the President to the disaster site.  What is he going to do?  The visit to the WTC site soon after the attack on 9/11 had value because it made a statement about security that gave confidence to people that they could return to Manhattan.  Why is it necessary, though, to tour hurricane damage by helicopter?  Isn't that the experts job? 

We had a number of our operations in Florida shut down for weeks after the recent hurricanes there.  Several of my friends asked me if I was going to go visit the damage.  "What for" I asked?  The damage had been described to me, and the folks in charge there who knew the area had a good plan in place for fixing things.  If I showed up, work would have to stop for a day while everyone showed me around.  The time to go back is after it is cleaned up, when you can thank everyone for their hard work.  But of course, I didn't have to deal with the media editorializing on my heartlessness because I didn't run to Florida and sight-see the damage.