One Weird Trick That Will Sell Your Tax Increase to the Public

Here is the trick:  You want a tax increase for X.  The public is never going to approve of raising taxes for X.  So you bundle 95% X with 5% Y, Y being something the public is really excited about.  As much as possible, you never mention X in any discussion of the tax increase, despite most of the funds being dedicated to X, and instead focus solely on Y.   If history is any guide, you will get your tax increase.

What a specific example?  You want a tax increase to fund a huge public transit boondoggle.  The public is not buying it.  So you rebrand the public transit project as a "transportation bill", you throw in a few highway improvements, you talk mainly about the highway improvements, and you get your public transit bill.

Another example is general revenue increases.  Most of these tax increases go to increasing the salary and pensions of bureaucrats and senior administrators that aren't really doing anything the public wants done in the first place.  So you say the tax increase is to improve the pay of three (and only these three) categories of workers:  police, firefighters, and teachers.  The public likes what these folks do, and could mostly care less about what anyone else in local government does.   So even if the taxes help about just 3 teachers among 3000 other bureaucrats, you sell it as a teacher salary increase.

It is because I understand this one weird trick that this sort of story does not surprise me in the least:

'Yikes!': Some Arizona teachers see little from Prop. 123

For months leading up to the vote on Proposition 123, supporters of the public education funding measure pleaded for its passage, saying it represented money for teachers.

But as the first installment of cash has gone out, many teachers may find Prop. 123 is a smaller windfall than they hoped. And voters may be surprised to learn where some of the money is going.

In some cases, teachers will collect less than 20 percent of their district's Prop. 123 funds. Some districts will use most of their money for other purposes, ranging from textbooks to computers to school buses, according to an Arizona Republicsurvey of district spending plans.

The measure was sold as a way to direct money — significant money — to teachers and classrooms....

With no rules on how the money can be used, each school district has tried to address its own priorities. While many supporters of the measure invoked teachers as the main reason to vote for Prop. 123, others in the public school systems have staked a claim to the money, especially after many went years without raises beginning in the recession.

Those seeing raises include relatively low-paid secretaries, custodians and bus drivers. But it also includes superintendents, principals and mid-level administrators who don’t work in classrooms.

That may not sit well with voters who opposed the measure or with supporters who thought they were doing something more substantive for teachers.

 

 

Thanks to Arnold Kling, I Sort of Understood Trump's Speech Last Night

My personal reaction was that Trump's speech was horrifying, a dystopian vision that bears no relationship to what is actually going on in this country (e.g. violent crime continues to fall, trade continues to make us wealthier, immigrants continue to make productive contributions, etc).  Peter Suderman has more in case you missed it.

But in Arnold Kling's 3-axis model of politics, the speech made perfect sense.   Trump has decided he is going to run hard on the civilization-barbarism axis.  The barbarians are at the gates, and his opponents are either too weak to deal with them or are actually in league with the barbarians.  He is the strong leader who will turn them back and make everyone safe again.  We're not going to trade with the barbarians, we are not going to treat with them, and we are not going to waste civil rights on them.  Ugh.  Trump is working hard to make me feel the victim, but I don't accept victim status.

I am not sure if this is marginally better or worse than what we are going to get at the Democratic Convention, where we will get four days of hearing that I personally am the bad guy and source of all misery in the world and the person that needs to be regulated harder and looted more furiously.   I almost prefer the Democratic approach, because at least evil is being done against me rather than in my name.

How Different Is Trump From Other Politicians?

This was an interesting profile of Trump featuring his ghostwriter on Art of the Deal.  Frequent readers will know that even years before he came on the Presidential stage, I was never taken in by the Trump-is-a-great-businessman meme  (most recently here).

In the New Yorker article, Trump's ghost says that Trump is not nearly as smart as he is made out to be, he is petty and childish and vain and self-absorbed.  He apparently makes promises he never keeps and has made a mess of a number of his businesses.  He has a short attention span and a shallow understanding of most issues.

Which all leads me to ask -- how does this make him any different from most other politicians, including the one he is running against for President?  Is he unique in these qualities or merely unique in his inability or unwillingness to hide them?  Does he have more skeletons in his closet, or does he just engender less personal loyalty so that more of his insiders speak out?

Don Boudreaux quoted a great bit from H.L Mencken the other day:

The state – or, to make the matter more concrete, the government – consists of a gang of men exactly like you and me.  They have, taking one with another, no special talent for the business of government; they have only a talent for getting and holding office.  Their principal device to that end is to search out groups who pant and pine for something they can’t get, and to promise to give it to them.  Nine times out of ten that promise is worth nothing.  The tenth time it is made good by looting A to satisfy B.  In other words, government is a broker in pillage, and every election is a sort of advance auction sale of stolen goods.

Early, Middle, Late Springsteen

Like Ed Driscoll at Instapundit, I too loved Bruce Springsteen's first three albums and really don't have much interest in the rest -- though unlike Driscoll it has little to do with Springsteen's politics.  If I only listened to albums that were 100% aligned with me politically, I would have to walk around all day just looping Rush's 2112.

After several great albums, Springsteen in his mid-era, he went all poppy and dropped a lot of the lyricism of his early work.  The slide from his early work to Born in the USA was a bit like finding out Bob Dylan was the author of Call Me Maybe and All About That Bass.

In Springsteen's late era, he has simply become some grim prophet of New Jersey post-industrial decline.  I can handle his pop stuff, but his more recent stuff is simply unlistenable in my book.  Here is what it reminds me of:  For those of you who saw the movie Network, remember how Howard Beale was taken aside by the Ned Beatty character for a grim lecture?   Before that moment, Beale was a popular, authentic spokesman who hit a nerve with the populace.  Afterwards, he was boring and depressing and unwatchable.  I have always wondered if Bruce Springsteen had a similar meeting.

Republicans Shackle Themselves to a Suicide Bomber

Back in the depths of WWI, the Germans woke up one day and found that their erstwhile ally Austria-Hungary, to whom they had given that famous blank check in the madness that led up to the war, was completely incompetent. Worse than incompetent, in fact, because Germany had to keep sending troops to bail them out of various military fixes, an oddly similar situation to what Hitler found himself doing with Italy in the next war.  (This is a really interesting book if you have any doubts about how dysfunctional the Hapsburg Empire was in its waning days).

Anyway, Germans soon began to wonder if they were "shackled to a dead man."

I am reminded of that phrase as I see that the Republicans have officially nominated Donald Trump for the presidency, perhaps the worst choice the party has made in its history, Nixon included. I don't think "shackled to a dead man" is quite right. I think that "shackled to a suicide bomber" is more apt. Trump is not only going to lose big in this election to an incredibly weak Democratic candidate, but he is also going to kill the Republicans in the House and Senate and any number of down-ballot elections. Nutty over-the-top crazy talk that might have been mildly entertaining in the primaries is not going to be very funny to voters trying to pick who sits at the other end of the red phone.

As I said on twitter this morning, I almost wish I had not left the Republican party 30 years ago so I could quit today.

The Problem Is That We Should Not Care About "Democracy", We Should Care About Protection of Individual Rights

Perhaps this is yet another negative legacy of Woodrow Wilson and his "Making the world safe for democracy" meme.  We talk all the time about allying with and siding with and protecting democracies, but all "democracy" really means in practice (at least today) is that the country has some sort of nominal election process.  Elections are fine, they are less bad than most other ways of selecting government officials, but what we really should care about is that a country protects individuals rights, has free markets, and a rule of law.  If a county has those things, I am not sure I care particularly if they vote or pick leaders by randomly selecting folks from the phone book.

You can see this problem at work here, :

Most democratic governments – including the United States – condemned the attempted recent military coup against Turkish President Recep Tayyip Erdogan, and welcomed its failure, citing the need to respect Turkey’s “democratic” institutions. But in the aftermath, Erdogan took the opportunity to persecute his political opponents on a large scale, including firing thousands of judges who might constrain his authoritarian tendencies. Erdogan’s government was also severely undermining civil liberties long before the coup, even going so far as to pass a law criminalizing “insults” to the president, under which hundreds of people have been prosecuted. Erdogan’s own commitment own commitment to democracy is questionable, at best. He famously once called democracy a tram that “[y]ou ride it until you arrive at your destination, then you step off.”

This raises the question of whether the coup attempt against Erdogan might have been justified. More generally, is it ever justified to forcibly overthrow a democratic government? In this 2013 post, written after the successful military coup against Egypt’s radical Islamist government, I argued that the answer is sometimes “yes.” There should be a strong presumption against forcibly removing a democratic regime. But that presumption might be overcome if the government in question poses a grave threat to human rights, or is likely to destroy democracy itself by shutting down future political competition.

While we can argue if Erdogan is "committed" to democracy, I think it is pretty clear that he is not committed to the protection of individual rights.

What we need is a new alliance not to protect the world for democracy -- that word may originally have meant what I want it to mean but now it seems possible to just check the democracy box merely by having some kind of voting.  We need a new (much smaller than the UN) alliance to make the world safe for, what?  We need a name.  What do we call a country with strong protections of individual rights, free markets, and the rule of law?

Postscript:  yes, there are snarky answers to the last question, such as "increasingly rare" and "net here anymore".

Republican Administrations Are Just As Incompetent as Democratic Administrations: Governor Doug Ducey in AZ

Strong supporters of both political parties maintain a delusion that all government problems are the result of the incompetence of the other political team, rather than the inherent incentive and information problems facing all government efforts.

Republicans, for example, made fun of Obama's competence with the horrendously bad rollout of the Federal Obamacare exchange.  But now, Doug Ducey's Arizona Department of Revenue is having the same problem.

As of this month, the agency is requiring that all multisite businesses (like mine) must file online rather than with pen and paper.  So we logged in today to file our report.  What a disaster!  The only thing I can even compare it to is stories of the early days of the Obamacare exchange.  First, the site is set up so that even a relatively simple return must have data entered across scores of pages.  In basic layout, it  is probably the worst site of any of the ten states we do business in.

But what has really made today a nightmare is that it is taking 5-10 minutes to load each page.  The agency clearly was not ready for the load.  Combined with a site design that requires many many page loads to complete simple tasks, and it makes filing (a 10 minute or so job on paper) a multi-day nightmare.  Four hours into it and I have not completed one location out of 15 or so I need to enter.

When I called the DOR, they basically said I had to suck it up.  I begged them for some sort of simple accommodation -- I have filed by paper for 13 years, why not allow me to file by paper for one more month until they get their act together?  No dice.  They instead suggested that my accounting staff come in at midnight tonight to do the work when the load on their servers would be lower.

If anything, the response from Republican Doug Ducey's office was even more insulting.  They said to me that this change had been announced for months, as if it was my failing to enter the system in a timely manner that was the problem.  According to Ducey's staff, I could have avoided the whole problem by filing my June revenue numbers a few months back, lol.  I patiently explained that June numbers could not be reported until the bank statements had arrived and were reconciled, such that most all returns had to be filed between the 15th and the 20th of the month.  And what is more, if this had been in the works so long, why hadn't the Administration seen fit to do an adequate job of testing the site and preparing for adequate capacity?

The answers from the governor's office were just as absurd and arrogant as any coming out of the Obama Administration about the failures of the exchange.  Which again proves to this libertarian that there is no much real difference between the Coke and Pepsi parties.  The problem is the government -- without the accountability brought by market competition -- trying to do these sorts of things.

Anatomy of Activism

There is one thing that activists can never, ever do:  declare victory and go out of business.   For activists, their chosen problem is always worse than ever and continuing to go downhill.

Here is an example, the book "Failing at Fairness," written in 1994 to make the case that education was failing girls.  Here is one summary of the book:

Drawing on findings from 20 years of research on sexism in American classrooms, this book examines the history of women's education and its shortcomings. The hidden curriculum, the effect of gender bias on self-esteem, test results, and professional orientation of girls from primary education through college were examined through naturalistic observation. The results suggest that girls are systematically denied opportunities in areas where boys are encouraged to excel, often by well-meaning teachers who are unaware that they are transmitting sexist values. Girls are taught to speak quietly, to defer to boys, to avoid math and science, and to value neatness over innovation, appearance over intelligence. In the early grades, girls, brimming with intelligence and potential, routinely outperform boys on achievement tests, but by the time they graduate from high school they lag far behind boys--a process of degeneration that continues into adulthood.

All of this will seem familiar, as women's groups typically claim that things have gotten worse on all of these fronts since 1994.   I have no doubt that these flaws exist, along with many others, in the government education system.  You certainly won't get me defending the public schools.  But I thought of this book today when I saw the chart below from Mark Perry, which I annotated with the publication date for Failing at Fairness:

college-degrees-annotated

It takes some work to look at this situation and decide that the main issue you want to highlight is how girls are getting hosed. But trust an activist to be up to the task.

Postscript:  This seems relevant (it has been around the net for a while, so I don't know what source to link, sorry)

stemwomen

So Can We Really Not Hold Two Ideas In Our Heads Simultaneously?

Two statements:

  • Police do an important job and sometimes face real dangers in performing this job
  • Police sometimes abuse their authority and are sheltered from accountability for these abuses

I don't understand why so many folks seem to be unable or unwilling to hold both these beliefs at the same time.  I certainly think both statements are easily demonstrated as true.  Why do so many treat them as mutually exclusive?

Finally, Finished

After months of paint frustration and poor design planning (I glued in the internal bracing before I installed the individual drivers, making what should have been a simple step a contortion act), my most recent speaker project is done.  This pair took longer than all the other speakers I have built, combined.  So they better sound good.  Here is one (from the back) just before I added the last bit of acoustic poly-fill stuffing and buttoned up the back.

CameraZOOM-20160717150118543

Yes, all those drivers on the left had to be installed reaching through those small holes in the bracing.  Ugh.  Anyway, after I took this picture, I had one more -- appropriate for this project -- negative surprise when the fit on the port on the back was not quite right and a lot of filing and trimming was needed for the usually simple task of installing the back cover.  Right now the speakers are breaking in and then I need to do testing and gain adjustments (I am using an electronic crossover with parametric equalization I built from a miniDSP kit).

The original article on the theory of the design is here.  I will post final pictures soon -- they do look simply awesome, though I will say again that life is too short to put a gloss piano black finish on mdf, but I am glad I did it now that all the work is done.   Not sure what I will be doing with my weekends going forward.

As an aside, I am not moving -- on his way to his first apartment, my son claimed a couple of my old bookshelves, leaving me with packing boxes of my books on the floor.  There is a bit of a story on his whole job search:  For months of his senior year he kept telling us he turned down such and such job in Boston or New York.  He didn't want to work in the northeast and didn't want to be an investment banker, eliminating about 95% of the companies that come to the small Amherst College campus.  However, with some persistence, he landed a job with craft brewer Ballast Point in San Diego.  So after all my parental angst about his future, when I tried to lecture him on how to do a job search, he ended up working for a beer company in Southern California.  Compare that to my first job, working in an oil refinery in Baytown, Texas.  So I suppose he wins job search.

Not Written About Climate Science, But It Could Have Been

Michelle Minton on flawed government nutrition guidance and the science behind it:

Congress, of course, is an inherently political entity. And so when it — or any other government-appointed body — privileges one theory over another, it creates bias that trickles down to the research community. The problem is not simply that the government makes decisions on the basis of imperfect information, but that government intervention, itself, can distort the development of research.

For example, the theory that dietary fat plays a large role in cardiovascular disease was controversial in the scientific community, even as the government began relying on it to develop the first federal nutritional guidelines. In fact, a lot of the existing research contradicted it. Nevertheless, the theory flourished. Why? In part, no doubt, because researchers — many of whom rely on government grants — faced risks associated with bucking the new zeitgeist created by the government.

Police and Community Roundup

Walter Olson has an interesting roundup of articles related to police accountability, over-policing, and many other related issues.

Living Atlas Shrugged in Venezuela

This sounds so much like the latter stages of Atlas Shrugged, when one by one Colorado businesses shut down, worsening shortages across he country.  The government tries to come in and restart each factory, but there is no confidence that the government can actually do the job and within months the whole thing has imploded forever.

Over the weekend, Kimberly-Clark said that the South American nation’s deteriorating economic situation had made “it impossible to continue our business at this time."  The company had made a number of hard-to-find staples in Venezuela such as diapers and face tissues.

As Bloomberg adds, the decision will likely to add to shortages that have gripped Venezuela for the past few years after the ruling socialists capped the price on many consumer basics below production costs." As we have documented repeatedly, desperate shoppers now routinely spend long hours in front of stores to purchase essential products ranging from toilet paper to rice. At the same time, companies face hefty losses on price-controlled goods, while the products are often flipped on the black market for many times their sticker price.

So in retaliation, Venezuela's government announced it had seized the factory.  Labor Minister Owaldo Vera said Monday that the socialist government took the action at the request of the 971 workers at the factory that the company decided to shutter. The seizure follows a similar takeover from 2014 when Clorox announced it was closing its doors.

"Kimberly-Clark will continue producing for all of the Venezuelans," Vera said in a televised statement from the factory surrounded by workers chanting pro-government slogans. That statement was not exactly true: former workers of the company would continue producing under the observation of government management. We doubt this "forced restructring" will survive more than a few months.

I have written this before, but I interpret Atlas Shrugged a bit differently than most.  There is much criticism of the one-dimensional characters and limited character development in the book.  But I have always thought this beside the point.  The main character in Atlas Shrugged is the world itself, and the main story arc is the decline and fall of the world under the increasing influence of socialism.  All the human characters are just props to this main drama.

In this interpretation, the climax of the book is when the hobo Jeff Allen tells the story of 20th Century Motors to Dagny on the train.  This story shows the final death throws of a group of people attempting to pursue socialism in its purest form.  It's a statement of the end towards which everything else is quickly heading.  After this point in the book, we immediately are in Galt's Gulch and end up with Rand's Utopian vision, which from a literary standpoint is awkward and boring.  That's because utopian novels are always dull as dirt.  Rand's triumph in that book was that she was absolutely prescient about how socialism plays out, which we are seeing today in Venezuela.

Why BLM and the Campus "Rape Culture" Movement Are A Lot Alike

Both BLM and the campus rape culture movement have a starting point in real problems.

On campus, and even in a few police precincts, women complaining about sexual assault would get patted on the head and sent on their way, their charges going largely investigated.  In part, oddly enough, I think the problem stems from the war on drugs -- for literally decades, campus police have helped to shelter their students from drug investigations and harassment from their local community police force.  I know they did so at Princeton when I was there.  So campus police forces really had a mission to keep their students out of jail and out of trouble.  This is A-OK with me on drugs, but it obviously leads to terrible results when we get to sexual assault.  So something needed to be done to have police forces, particularly ones on campus, take sexual assault charges seriously.

With police, officers have been sheltered from any real accountability for years.  We give the police the ability to use force and other powers that ordinary citizens don't possess, but instead of giving them more scrutiny and accountability to offset these powers, we give them less.  This has really been a bipartisan problem -- Conservatives tend to fetishize the police and want to assume by default that all police actions are justified.  The Left is more willing to be skeptical of police behavior, but they refuse to take on any public sector union and police unions have generally locked in their contracts any number of accountability-avoidance mechanisms.  So something needed to be done to bring accountability to police forces.

And with these quite justifiable and reasonable goals around which many of us could have coalesced into some sort of consensus, both protest efforts immediately overreached into crazy zones.

On campus, the reasonable demand for serious action in response to a sexual assault charge was abandoned in favor of the demand for immediate conviction without due process based on any sexual assault charge.  Oddly mirroring the conservative attitude towards police, activists said that alleged victims had to always believed, and demanded that universities punish anyone accused of sexual transgressions.  The result has become a toxic mess, and in some ways is a setback for justice, as activists have made it easier to get a rapist thrown out of school but perhaps harder to actually get thrown in jail.

With police, activists immediately eschewed the reasonable need for more police accountability and jumped to the contention that all police officers are racist and systematically abuse black citizens.  Their focus seems to be on police shootings, though I find the pattern of petty police harassment (through the war on drugs and programs like New York's stop and frisk) to be more problematic.  Just as in the campus rape debate, a reasonable need for more accountability and investigation of police shootings has morphed into a demand that police officers be treated as guilty by default in all shootings.

Each of these movements have made the problems more visible while simultaneously making these problems less likely to be solved.

I will add that I stick by my evaluation of BLM I wrote a while back.  I actually sort of liked a lot of their proposed plan, but I wrote (see particularly part in bold):

There is much that progressive and conservative groups could learn from each other.  Conservative groups (outside of anti-abortion folks) are loath to pursue the public demonstration and disruption tactics that can sometimes be helpful in getting one's issues on the public agenda.  The flip side is that public disruption seems to be all BLM knows how to do.  It can't seem to get beyond disruption, including the unfathomable recent threat to disrupt an upcoming marathon in the Twin Cities.   It could learn a lot from Conservative and libertarian groups like ALEC, that focus on creating model legislation and local success stories that can be copied in other places.  Many of the steps in BLM's plan cry out of model legislation and successful pilots/examples.

 

Update on Applied Underwriters

Applied Underwriters (AU) followed through on their threats to file suit against me for my posts, claiming they were defamatory. I hired an attorney who filed a motion to dismiss the claims, asserting among other things, that my statements were opinion and were protected by the First Amendment.  However, the Court found that the manner in which my statements were made “could” be considered statements of fact and not mere opinions.  As a result, the Court ruled that the case could go forward and denied my motion.  I am happy to report, however, that AU and I have resolved our differences and the case is being dismissed.  In the meantime, I have worked and will continue to work with AU on trying to better understand the program.  While I continue to believe that the terms were not clearly explained to me during the sales process and that there is an unknown factor regarding my deposits that AU decides, I do have a better understanding of my program and my hope is that it will continue to work as they claimed.  I still do not know when I am going to get the return of my deposits, if at all, but I will wait and see as it depends on my claims during the life of the program.  But, more importantly, they provided me with workers’ compensation insurance when no other alternative was available, which allowed me to stay in business. My final word on this issue is that whenever you are procuring insurance, regardless of whether it is from AU or another company, take the time to understand the program and get a broker who will work with you to answer any questions you may have.

Attracting Monarch Butterflies: Try Parsley

I thought this was interesting on volunteer efforts to create habitat for migrating monarch butterflies.

Here is my advice.  I don't know much about feeding and attracting adult butterflies, but we sure found the recipe to getting caterpillars and cocoons.  When I lived in Texas (Houston to be exact), my dad planted all kinds of flowers and herbs around the yard in pots.  However, each year, the parsley would be absolutely mobbed by monarch butterfly caterpillars.  We soon gave up growing parsley for food and did it just for the butterflies.  Every year, cocoons would start showing up all over our parsley, and on one day a year, we would have a massive monarch butterfly hatch.

My Nomination for Corporate State of the Year: Napa County, California

Last week I went on a wine-tasting tour in the Napa Valley with a bunch of friends who are passionate about wine.  It was an odd experience, because I am not passionate about wine and do not have the tasting ability to discern many differences between the wine.  I could tell it was a red wine, and maybe if it was dry or fruity, but hints of tobacco and blackcurrent?  Not so much.  It was also weird to be in a place where I really was not very passionate (wine is behind both beer and cocktails in my drinking hierarchy) but I was surrounded by people with a an excess of passion -- by people who seem to build their whole life around wine.  There was a lot of competitive one-upsmanship and virtue signalling going on around wine that I only barely understood.  I would equate the whole experience with my wife's experience at Comicon, standing in line behind two guys passionately arguing about comic book hero backstories.  I tried my hardest to be tolerant of those who had really different interests than I have, though I will say that this tolerance was NOT shared by most wine enthusiasts who treated me as demonstrably defective when I admitted that wine did not do that much for me.

Anyway, at each tour we typically got the whole backstory of the business.  And the consistent theme that ran through all of these discussions was the simply incredible level of regulation of the wine business that goes on in Napa.   I have no idea what the public justification of all these rules and laws are, but the consistent theme of them is that they all serve to make it very hard for small competitors or new entrants to do business in the county.  There is a board, likely populated by the largest and most powerful entrenched wine makers, that seems to control the whole regulatory structure, making this a classic case of an industry where you have to ask permission of your competitors to compete against them.  There are minimum sizes, in acres, one must have to start a new winery, and this size keeps increasing.   Recently, large winemakers have started trying to substantially raise this number again to a size greater than the acreage of any possible available parcel of land, effectively ending all new entrants for good.  I forget the exact numbers, but one has to have something like 40 acres of land as a minimum to build a structure on the land, and one must have over 300 acres to build a second structure.  You want to buy ten acres and build a small house and winery to try your hand at winemaking? -- forget it in Napa.

It took a couple of days and a bunch of questions to put this together.  Time and again the guide would say that the (wealthy) owners had to look and wait for a long time to find a piece of land with a house on it.  I couldn't figure out why the hell this was a criteria -- if you are paying millions for the land, why are you scared to build a house?   But it turned out that they couldn't build a house.  We were at this beautiful little place called Gargiulo and they said they bought their land sight-unseen on 3 hours notice for millions of dollars because it had a house AND a separate barn on it grandfathered.  Today, it was impossible to get acreage of the size they have and build two structures on it, but since they had the barn, they could add on to it (about 10x the original size of the barn) to build the winery and still have a separate house to live in.

This is why the Napa Valley, to my eye, has become a weird museum of rich people.  It seems to be dominated by billionaires who create just fantastically lovely showplaces that produce a few thousand cases of wine that is sold on allocation for 100+ dollars a bottle to other rich people.   It is spectacularly beautiful to visit -- seriously, each tasting room and vineyard is like a post card, in large part because the owners are rich enough to care nothing about return on capital  invested in their vineyards.  The vineyards in Napa seem to have some sort of social signalling value which I don't fully understand, but it is fun to visit for a few days.  But in this set-piece, the last thing the folks who control the county want is for grubby little middle-class startups to mess up their carefully crafted stage, so they are effectively excluded.

I know zero about wines, but from other industries this seems to be a recipe for senescence.  It would surprise me not at all to see articles get written 10 years from now about how Napa wines have fallen behind other, more innovative areas.  I have never been there, but my friends say newer areas like Paso Robles has an entirely different vibe, with working owners on small plots trying to a) actually make a viable business of it and b) innovate and try new approaches.

Postscript:  The winner of the cost-no-object winery award had to be Palmaz.  Created by one of the folks who invented the heart stent, it was a wonderfully eccentric place.   The owner theorized years ago that pumping wine (something that is done at many steps to transfer it between process steps) hurts the wine by breaking up longer chain tannin molecules (search me if this is true).  Anyway, he wanted everything gravity fed, but that meant you needed grapes to come in at the top, with fermenters below that, and filters below that, and wine barrels for aging below that.  Well, if you have been reading this post, you can guess that a building tall enough for this certainly can't be built in Napa.  So he carved it out of a mountain.  Seriously, this place is like NORAD, with probably a mile of underground passages stacked 18 stories deep from top to bottom.  In the center of the mountain is this room:

click to enlarge

In a circle behind the railing are fermenters on a train track that can rotate as a group all around like a giant carousel to position them under the grape chute or over the filters.  The room is carved out with a giant dome, and on the dome are projected process control data about each grape or wine batch.  It was truly incredible.  (More about it online here)

Don't get me wrong, I love this.  It is a pleasant eccentricity, from which others can benefit.  And the wine was good, at least to my admittedly weak evaluation skills.  I just hate it that the arbiters of the Napa Valley feel the need to exclude others who want to use their own land in different ways.

Update:  A Coyote Blog reader writes that they ARE doing things differently making wine in Paso Robles.  Here is his web site and story.

The Terrible Idea That Won't Die: Solar Roads

From Engadget:

Solar Roadways' dreams of sunlight-gathering paths are one step closer to taking shape. Missouri's Department of Transportation is aiming to install a test version of the startup's solar road tiles in a sidewalk at the Historic Route 66 Welcome Center in Conway. Okay, it won't be on Route 66 just yet, but that's not the point -- the goal is to see whether or not the technology is viable enough that it could safely be used on regular streets. You should see it in action toward the end of the year.

The tiles will be familiar if you've followed Solar Roadways before. Each one combines a solar cell with LED lighting, a heating element and tempered glass that's strong enough to support the weight of a semi-trailer truck. If successful, the panels will feed the electrical grid (ideally paying for themselves) and make the roads safer by both lighting the way as well as keeping the roads free of rain and snow. They should be easier to repair than asphalt, too, since you don't need to take out whole patches of road to fix small cracks....

As the Transportation Department's Tom Blair observes, it would be odd to push self-driving cars in the state's Road to Tomorrow initiative when the streets aren't as smart as the vehicles using them.

This has so much stupid in it, I don't even know where to start.  First, solar roads are a terrible idea.  Even if they can be made to sort of work, the cost per KwH has to be higher than for solar panels in a more traditional installations -- the panels are more expensive because they have to be hardened for traffic, and their production will be lower due to dirt and shade and the fact that they can't be angled to the optimal pitch to catch the most sun.  Plus, because the whole road has to be blocked (creating traffic snafus) just to fix one panel, it is far more likely that dead panels will just be left in place rather than replaced.

And who in their right mind would ever accept the statement that the solar panel roads would be cheaper to fix than a roadway?  What agency anywhere takes out whole patches of road to fix small cracks?  Square foot for square foot a solar road would be orders of magnitude harder to fix than just patching a pothole somewhere.

I love the line about "ideally" paying for themselves.  I am sure this is their ideal, but what is the reality?  I will bet anyone a million dollars that if all installation and maintenance costs are included, these will not come close to paying for themselves.  The first rule of alternate energy in any news article is to give the installation cost or the energy output, but never both, so actual return on investment can't be calculated.  If they give neither, as in this case, it really sucks.

And finally, what is not to love about the last paragraph, which says effectively that roads should be as smart as the cars that drive on them.  I have toyed with the idea of creating a whole new blog category on things people say that get millennials excited but make absolutely no sense.  This would be a good example.  Embedding solar panels in a road when just about any other flat surface anywhere would be a better place to put them is not "smart", it is painfully stupid.  A smart road might embed guide wires or some other technology to aid self-driving cars, but nothing like this.

Hillary Clinton and "Intent" -- Can the Rest Of Us Get A Mens Rea Defense From Prosecution?

Yesterday, the FBI said that Hillary Clinton should not be prosecuted because, though she clearly violated laws about management of confidential information, she had no "intent" to do so.  Two thoughts

  • Even if she had no intent to violate secrecy laws, she did - beyond a reasonable doubt - have intent to violate public transparency and FOIA laws.  She wanted to make it hard, or impossible, for Conservative groups to see her communications, communications that the public has the right to see.  In violating this law with full intent, she also inadvertently violated secrecy laws.  I don't consider this any different than being charged for murder when your bank robbery inadvertently led to someone's death.
  • If politicians are going to grant each other a strong mens rea (guilty mind or criminal intent) requirements for criminal prosecution, then politicians need to give this to the rest of us as well.  Every year, individuals and companies are successfully prosecuted for accidentally falling afoul of some complex and arcane Federal law.   Someone needs to ask Hillary where she stands on Federal mens rea reform.

Amazon's Shipping Estimates Are Becoming Fraudulent

I have noticed for the last 6 months or so, at least here in Phoenix, that Amazon frequently does not deliver items when they promise.  It is not just an issue with the shipper, in the last two cases the item did not even ship until 1-2 days after the date they promised for delivery.

This has reached a head in the last week, when I ordered a number of items to be delivered immediately  -- I am leaving town and wanted some items to take to my son's apartment.  They are useless to me even a few hours after I depart home.  I ordered seven items on Monday with my prime membership, and all promised delivery that same day (one for free, two with a nominal upcharge).  Of these, none arrived on Monday.  One arrived on Tuesday and as of 4PM on Tuesday, the other six have not even shipped, and Amazon is showing them here on Wednesday at best.

I would not have bought these from Amazon had they given me accurate delivery estimates.  I am wondering if they are using fake, overly optimistic delivery estimates to try to woo business from bricks and mortar stores, whose one advantage is immediate fulfillment.

UK: The Kids Are All Right Post-Brexit

There has been a lot written about "chaos" in UK government and financial markets since the Brexit vote, so much so there are supposedly folks who voted for Brexit who want a do-over.

A few thoughts:

  • Short term changes in financial asset prices, like bank stock prices or currency futures, are largely irrelevant in the long-term.  The recent supposed "big drop" in US equities markets, for example, took the market all the way back to where it was in... March, barely 3 months ago.  You will see buying in these assets in the coming days and the drop of the last few days will be largely forgotten soon.   Financial markets don't react well to being surprised, but they will get over it.
  • I don't see how the UK and the pound are necessarily weaker post-Brexit.  The US is fine.  The Swiss are fine.  Heck, the Swiss have to constantly fight to keep their currency lower.
  • Unlike other EU nations, the majority of UK trade is with non-UK nations.  While trade with the EU will likely be on worse terms in the future (though the Swiss and Norwegians have pretty good deals), UK will be unshackled from the EU bureaucracy in negotiating new deals with the rest of the world.  If the US President had any vision whatsoever, he would already have offered the UK a free trade deal, rather than being petty and saying the UK goes to the back of the line for exiting a transnational body the US would never join itself.
  • Much of the "chaos" in British government can be traced 100% to the anti-Brexit folks.  The Anti-Brexit folks very explicitly refused to craft any Brexit contingency plans, using threats of post-Brexit chaos to try to up the pressure against the Brexit vote.  President Obama did the exact same thing with Obamacare, refusing to create contingency plans if the SCOTUS overturned key parts of the ACA, hoping to ratchet up pressure against that outcome.  Had their been at least the outlines of a plan, they would be checking down it right now.  Things I would do as PM on the trade front:  1.  Demand the Swiss deal from the EU for Britain.  2.  Approach major trading partners with offers of free trade deals.  A British commonwealth free trade zone is a great idea.

A Reliable Marker of Socialism: Politicians Accusing Private Individuals of "Hoarding"

When socialists destroy markets, shortages inevitably follow.  The current situation in Venezuela is a great example, where just about everything from food to toilet paper has disappeared off store shelves.   Rather than take a step back and say, "Wow, our policies sure have created a mess," socialists inevitably blame the shortages they created on private individuals.  Nothing says "I am a socialist" like a politician denouncing their citizens for hording.

Here is today's example from the state of New York.  New York has totally screwed up its real estate markets by making it nearly impossible to build new housing and putting rent controls on the housing that exists.  Which has inevitably led to shortages.  Which is of course blamed by politicians on individuals who are "hoarding"

State Assemblywoman Linda Rosenthal, one of the [anti Airbnb] bill's sponsors, disagrees, claiming that it targets "people or companies with multiple listings. There are so many units held by commercial operators, not individual tenants. They are bad actors who horde multiple units, driving up the cost of housing around them and across the city."

Was Brexit About Racism or Tea Kettles?

Everyone on the Left is absolutely convinced that the Brexit vote was all about racism.  In part, this is because this is the only way the Progressives know how to argue, the only approach to logic they are taught in college for political argumentation.

Yes, as an immigration supporter, I am not thrilled with the immigration skepticism that dominates a lot of western politics.  I struggle to cry "racism" though, as I confess that even I would be given pause at immigration of millions of folks from Muslim countries who hold a lot of extremely anti-liberal beliefs.

Anyway, I would likely have voted for Brexit had I been in Britain.  I think the EU is a bad idea for Britain on numerous fronts completely unrelated to immigration.  The EU creates a near-dictatorship of unelected bureaucrats who seem to want to push the envelope on petty regulation.  And even if this regulation were just "harmonizing" between countries, Britain would still lose out because it tends to be freer and more open to markets and commerce than many other European countries.

By supporting Brexit, I suppose I would have been called a racist, but it would really have been about this:

The EU is poised to ban high-powered appliances such as kettles, toasters, hair-dryers within months of Britain’s referendum vote, despite senior officials admitting the plan has brought them “ridicule”.

The European Commission plans to unveil long-delayed ‘ecodesign’ restrictions on small household appliances in the autumn. They are expected to ban the most energy-inefficient devices from sale in order to cut carbon emissions.

The plans have been ready for many months, but were shelved for fear of undermining the referendum campaign if they were perceived as an assault on the British staples of tea and toast.

A sales ban on high-powered vacuum cleaners and inefficient electric ovens in 2014 sparked a public outcry in Britain.

EU officials have been instructed to immediately warn their senior managers of any issues in their portfolios that relate to the UK and could boost the Leave campaign were they to become public....

Internet routers, hand-dryers, mobile phones and patio jet-washers are also being examined by commission experts as candidates for new ecodesign rules.

As a free trade supporter, the downside would be the loss of a free trade zone with the rest of Europe, but I am not sure it can be called a "free trade zone" if they are banning toasters.  Britain will negotiate new tariff rates with the EU, just as Switzerland and Norway (much smaller and less important trading partners) have done.

The real crime from a US perspective is the actions of our President.  Mr. Obama has told the British that by voting for Brexit, they go to "the back of the line" for trade negotiations with the US.  This is, amongst a lot of stupid things politicians say, one of the stupidest I have ever heard.  My response as president would have been to move Britain to the front of the line, offering them a free trade treaty with the US the day after the Brexit vote.  Like most politicians, unfortunately, President Obama does not view trade as a vehicle for the enrichment of individuals but as a cudgel to enforce his whims in the foreign policy arena.  Why on Earth has President Obama threatened to undermine America's strong interest in trading with the UK merely to punish the UK for not staying in the EU, a transnational body this country would certainly never join?

Government, Arrogant Ignorance, and the Power of Incentives

As most of you know, my company operates parks on public lands, so I work with government agencies a lot.  Years ago, from this experience, I coined a term called "arrogant ignorance."  It comes from numerous times when government employees will be completely ignorant of some process, perhaps even their agency's own rules and procedures, but will fight to the death any suggestion that I might be able to enlighten them or that they are doing something wrong.

For a while, people had me believing that I had just rediscovered the Dunning–Kruger effect.  But I am now convinced that this is not the same as my "arrogant ignorance".  And the difference between the two highlights a key point about failure of government I have made for years, which is that government does a bad job not because the people are bad, but because it hires good (or at least average) people who have terrible incentives and information.

First, here is Dunning-Kruger per Wikipedia:

The Dunning–Kruger effect is a cognitive bias in which relatively unskilled persons suffer illusory superiority, mistakenly assessing their ability to be much higher than it really is. Dunning and Kruger attributed this bias to a metacognitive inability of the unskilled to recognize their own ineptitude and evaluate their own ability accurately.

Like most people, I see Dunning-Kruger all the time.  But I see it equally frequently in private and public settings.  I don't think it is necessarily unique to the public sphere, and may be over-represented there only to the extent that it is much harder to eliminate under-performers from public rather than private jobs, so they may tend to concentrated more in public positions.

But my concept of arrogant ignorance is not really a cognitive effect, I think, but rather a symptom of incentives.   The problem with most government jobs is that they have no service or output metrics so that they are instead judged mainly on conformance to procedure.  And even that is not quite correct, because most agencies I work with do not even have formal standards or quality review processes for their employees, at least below the executive level.

I want to take an aside here on incentives.  It is almost NEVER the case that an organization has no incentives or performance metrics.  Yes, it is frequently the case that they may not have clear written formal metrics and evaluations and incentives.  But every organization has informal, unwritten incentives.  Sometimes, even when there are written evaluation procedures, these informal incentives dominate.

Within government agencies, I think these informal incentives are what matter.  Here are a few of them:

  1. Don't ever get caught having not completed some important form or process step or having done some beauracratic function incorrectly
  2. Don't ever get caught not knowing something you are supposed to know in your job
  3. Don't ever say yes to something (a project, a permit, a program, whatever) that later generates controversy, especially if this controversy gets the attention of your boss's boss.
  4. Don't ever admit a mistake or weakness of any sort to someone outside the organization
  5. Don't ever do or support anything that would cause the agency's or department's budget to be cut or headcount to be reduced.

You ever wonder why government agencies say no to everything and make it impossible to do new things?  Its not necessarily ideology, it's their incentives.  They get little or no credit for approving something that works out well, but the walls come crashing down on them if they approve something that generates controversy.

So consider the situation of the young twenty-something woman across the desk from me at, say, the US Forest Service. She is probably reasonably bright, but has had absolutely no relevant training from the agency, because a bureaucracy will always prefer to allocate funds so that it has 50 untrained people rather than 40 well-trained people (maintaining headcount size will generally be prioritized over how well the organization performs on its mission).  So here is a young person with no training, who is probably completely out of her element because she studied forestry or environment science and desperately wanted to count wolves but now finds herself dumped into a job dealing with contracts for recreation and having to work with -- for God sakes -- for-profit companies like mine.

One program she has to manage is a moderately technical process for my paying my concession fees in-kind with maintenance services.  She has no idea how to do this.  So she takes her best guess from materials she has, but that guess is wrong.  But she then sticks to that answer and proceeds to defend it like its the Alamo.  I know the process backwards and forwards, have run national training sessions on it, have literally hundreds of contract-years of experience on it, but she refuses to acknowledge any suggestion I make that she may be wrong.  I coined the term years ago "arrogant ignorance" for this behavior, and I see it all the time.

But on deeper reflection, while it appears to be arrogance, what else could she do given her incentives?  She can't admit she doesn't know or wasn't trained (see #2 and #4 above).  She can't acknowledge that I might be able to help her (#4).  Having given an answer, she can't change it (#1).

You may think I am exaggerating -- how could people react so strongly to seemingly petty incentives.  But they do.  In my example above, this is probably her first job.   The government is the only employer she has known.  The confidence you might have to ignore these incentives to do the right thing likely come from jobs and experience that this woman has not had.

I will give you a real example.  One government contract manager asked us to spend $10,000 to do something, promising that the agency would reimburse me.  I told her that I had never heard of this type of spending being reimbursable, but she said we would be reimbursed.  So we did it.  Later, her boss's boss heard about the reimbursement and said it was not correct under the rules.  Eventually, our contract manager was challenged on it.  You know what she said?  She said our company spent the money without permission and that we were never promised reimbursement.  She sacrificed her honor out of the fear of #1 and #3 - the incentives were that powerful for her.  She knowingly lied and -- by the way - cost me personally $10,000 and a reprimand in our contract file.  When I called her afterwards and asked her, "what the hell?" -- she apologized to me in tears and said she just would be in too much trouble once her boss's boss was involved to admit she had authorized the expense.

So, I try to learn from this.   One thing, for example, I always do is ask myself when someone who works for me screws up, "Is this really my fault, for not training them well."  A surprising number of times, the answer is a reluctant, "yes".

What's The Deal With the State of New York and Free Speech?

Sorry, I am a bit late on this but it came out while I was out of the country.  While the New York AG is going after ExxonMobil and a number of think tanks to try to prosecute them, or at least intimidate them, for their past speech on climate issues, apparently the state of New York is also going after college students who want to boycott Israel.

I have never thought much of the BDS movement -- while like most western governments Israel certainly has its flaws, I find it bizarre that the BDS movement treats Israel like it's the worst government on Earth.  In particular, I am amazed that BDS folks frequently, while they condemn Israel, act as apologists for neighboring Arab nations whose human rights records are objectively far worse.

All that being said, if they don't want to have anything to do with Israel and want to advocate for others to take the same approach, they are welcome to do so in a free country.  But now there is this:

Continuing Gov. Andrew Cuomo's crusade against New Yorkers who don't support Israel, state Sen. Jack Martins (R-Nassau County) wants to ban public colleges and universities from funding pro-Palestinian student groups. A new bill sponsored by Martins would require state and city schools to defund any campus organization that supports efforts to "boycott, divest from, and sanction" (BDS) Israel over its treatment of Palestinians. The BDS movement has become popular on U.S. and U.K. campuses.

Martins' bill would also prohibit the funding of campus groups that support economic boycotts of any American-allied nation, although this bit seems designed to distract from his true goal: preventing anti-Israel sentiment on campus. In an interview with the New York Daily News, Martins referred to calls to boycott Israel as "hate speech" and "anti-Semitism" and said the state legislature has "no choice but to step in and prevent taxpayer dollars being used to promote" such sentiment.

If a state institution is going to fund student groups, then it needs to do so in a viewpoint neutral manner.

The only teeny tiny good part of this story is that perhaps a few campus Leftists who want to ban everything that they consider hate speech might have an epiphany that giving the government this sort of power is a bad idea, since one can never guarantee that one's own fellow travelers are going to be writing the hate speech definitions.