The Urge to Control

This is the personality of the people we are electing to higher office.  They have such an urge for control that they will not allow cell phone pictures taken of them in public.  By personality, these people have to control everything.  Is it really any surprise when they turn around and read our email?

From the article at the fabulous Photography is Not a Crime:

Hillary Clinton’s henchmen snatched a smartphone from a man who had photographed her giving a speech in Miami Thursday, deleting the image before returning the phone.

“That’s American politics,” one of the individuals in charge of preventing the presidential hopeful from being photographed told a Miami Herald reporter covering the meeting.

No, that’s Russian politics. Or Chinese politics. Or Cuban politics.

By the way (and I could be wrong here) Carlos Miller strikes me as much more Occupy than Tea Party in his political preferences.  But he obviously doesn't pull any punches on his issue (legality of public photography) when his team is involved.

This Was My Take As Well: Cut Farm Subsidies, Not Food Stamps

First, as many of you may have guessed, the "massive cuts" in food stamps over the next 10 years proposed by House Republicans are basically just a modest reduction in their rate of growth.  All attempts to slow the spending growth in any government program will always be treated by the media as Armageddon, which is why government spending seldom slows (see: Sequester).

But I have been amazed through this whole deal that Republicans want to extract a pound (actually probably just an ounce or so) of flesh out of the Food Stamp program but explicitly left the rest of the farm bill with all of its bloated subsidies alone.  Henry Olson asks the same question at NRO.

I will add one other observation about food stamps that is sure to have just about everyone disagreeing with me.  Of late, Republicans have released a number of reports on food stamp fraud, showing people converting food stamps to cash, presumably so they can buy things with the money that food stamps are allowed to be used for.

Once upon a time, maybe 30 years ago in my more Conservative days, I would get all worked up by the same things.  Look at those guys, we give them money for food and they buy booze with it!  It must be stopped.  Since that time, I suppose I never really revisited this point of view until I was watching the recent stories on food stamp fraud.

But what I began thinking about was this:  As a libertarian, I always say that the government needs to respect and keep its hands off the decision-making of individuals.  If people make bad choices, paraphrasing from the HBO show Deadwood, then let them go to hell however they choose.  And, more often than not, it turns out that when you really look, people are not necessarily making what from the outside looks like a bad choice -- they have information, incentives, pressures, and preferences we folks sitting in our tidy Washington offices, chauffeured to work every day, may not understand.

So if we are going to give people charity - money to survive on when poor and out of work - shouldn't we respect them and their choices?  Why attach a myriad of conditions and surveillance to the use of the funds?  Of course, this is an opinion that puts me way out of the mainstream.  Liberals will treat these folks as potential victims that must be guided paternally, and Conservatives will treat them as potential fraudsters who must be watched carefully.  I think either of these attitudes are insidious, and it is better to treat these folks as adults who need help.

I Would Really Like To Know: Does She Honestly Believe This, or Is Her Job To Spin This Kind of BS With A Straight Face

I can create a long list of reasons for disliking Republicans, but Nancy Pelosi just seems either totally insane or totally brazen when she makes this observation about Obama and Republicans:

“He [President Obama] has been … open, practically apolitical, certainly nonpartisan, in terms of welcoming every idea and solution. I think that’s one of the reasons the Republicans want to take him down politically, because they know he is a nonpartisan president, and that’s something very hard for them to cope with.”

As a truly non-partisan observer, I would say that I have not seen a President in my lifetime as empty of strategic thinking and substantive ideas.  Jeez, Bill Clinton did more substantive thinking in the shower in the morning than Obama has done in five years.  This man is all hyper-divisive rhetoric.  If Obama supporters want to compare him to a great leader, he reminds me in some ways of Bismark in the sense that Bismark was the master of negative integration, of defining an internal enemy (a Reichsfeinde) on every issue and marginalizing that enemy to unify everyone else on his side.  Of course, eventually, the legacy of that approach did not work out so well.

Corleone-Style Government

This is pretty amazing -- a FOIA and a subsequent string of emails between a USA Today reporter and the Department of Justice.  Like any email string, you need to go to the end and then read up.  Essentially, the DOJ tells the reporter that they have information that undermines the reporter's story but won't tell him what it is.  Instead, they threaten to hold it until after the reporter has published, and then give the information to another media outlet in order to embarrass the reporter, all because the reporter is "biased" which in Obama Administration speak means that he is an outlier that does not dutifully fall in line with the Administration's talking points.

My guess is that this is a cheap bluff to prevent a story from being published that the DOJ does not want to see in the public domain.  Even if it is not a bluff, this is a horrendous approach to releasing information to the public.

Don't Ever Have an Ear Emergency in Phoenix

A couple of weeks ago, I started losing hearing in one ear.  A bit later, it started to hurt.  Suspecting an infection, I called my ENT's office.  They said they couldn't see me for four weeks, and would not let me switch to see anyone else in their 10-person practice (against their practice rules, which raises the question of, from a customer point of view, why there is any benefit to a large practice at all -- the large pool of doctors provides the illusion of more customer service capability but in fact the sole logic of the practice is cost-sharing of overhead and support staff).  So eventually I just went to one of those walk-in urgent care clinics in a strip mall near me and had the GP there look at it.  I found that I did in fact have an infection and got an antibiotic scrip and some drops and was told if it did not get better in 7 days, go see a specialist.

So it has been a week and the pain is mostly gone but I still have lost most of my hearing in the ear.  So I tried to make an appointment at my ENT again -- 4 weeks.  I described my situation, and said something seemed wrong.  4 weeks.

So I talked to two friends who are both semi-retired ENT's.  They said to get my butt to a doctor ASAP because it could be nothing or it could be something really bad that needs immediate intervention.  But no ENT would see me for weeks.  So one of my friends said they would help me, but they needed audiology tests.  Turns out, those are being scheduled 3 weeks out.  I finally called in a favor with a friend of a friend and found someone to test me next Monday, just four days from now.  Four days seems a long wait for something that could be an emergency, but it beats the hell out of 4 weeks.

This is what we have done to the practice of medicine.  With a myriad of professional licensing requirements and regulatory burdens that raise the fixed cost of opening a practice, we have managed to simultaneously raise prices while limiting supply.

Trend That is Not A Trend: Rolling Stone Wildfire Article

Rolling Stone brings us an absolutely great example of an article that claims a trend without actually showing the trend data, and where the actual data point to a trend in the opposite direction as the one claimed.

I won't go into the conclusions of the article.  Suffice it to say it is as polemical as anything I have read of late and could be subtitled "the Tea Party and Republicans suck."  Apparently Republicans are wrong to criticize government wildfire management and do so only because they suck, and the government should not spend any effort to fight wildfires that threaten private property but does so only because Republicans, who suck, make them.  Or something.

What I want to delve into is the claim by the author that wildfires are increasing due to global warming, and only evil Republicans (who suck) could possibly deny this obvious trend (numbers in parenthesis added so I can reference passages below):

 But the United States is facing an even more basic question: How should we manage fire, given the fact that, thanks to climate change, the destruction potential for wildfires across the nation has never been greater? In the past decade alone, at least 10 states – from Alaska to Florida – have been hit by the largest or most destructive wildfires in their respective histories (1). Nationally, the cost of fighting fires has increased from $1.1 billion in 1994 to $2.7 billion in 2011.(2)

The line separating "fire season" from the rest of the year is becoming blurry. A wildfire that began in Colorado in early October continued smoldering into May of this year. Arizona's first wildfire of 2013 began in February, months ahead of the traditional firefighting season(3). A year-round fire season may be the new normal. The danger is particularly acute in the Intermountain West, but with drought and record-high temperatures in the Northwest, Midwest, South and Southeast over the past several years, the threat is spreading to the point that few regions can be considered safe....

For wildland firefighters, the debate about global warming was over years ago. "On the fire lines, it is clear," fire geographer Michael Medler told a House committee in 2007. "Global warming is changing fire behavior, creating longer fire seasons and causing more frequent, large-scale, high-severity wildfires."...(4)

Scientists have cited climate change as a major contributor in some of the biggest wildfires in recent years, including the massive Siberian fires during a record heat wave in 2010 and the bushfires that killed 173 people in Australia in 2009.(5)...

The problem is especially acute in Arizona, where average annual temperatures have risen nearly three-quarters of a degree Fahrenheit each decade since 1970, making it the fastest­-warming state in the nation. Over the same period, the average annual number of Arizona wildfires on more than 1,000 acres has nearly quadrupled, a record unsurpassed by any other state and matched only by Idaho. One-quarter of Arizona's signature ponderosa pine and mixed-conifer forests have burned in just the past decade. (6)...

At a Senate hearing in June, United States Forest Service Chief Thomas Tidwell testified that the average wildfire today burns twice as many acres as it did 40 years ago(7). "In 2012, over 9.3 million acres burned in the United States," he said – an area larger than New Jersey, Connecticut and Delaware combined. Tidwell warned that the outlook for this year's fire season was particularly grave, with nearly 400 million acres – more than double the size of Texas – at a moderate-to-high risk of burning.(8)

These are the 8 statements I can find to support an upward trend in fires.  And you will note, I hope, that none of them include the most obvious data - what has the actual trend been in number of US wildfires and acres burned.  Each of these is either a statement of opinion or a data point related to fire severity in a particular year, but none actually address the point at hand:  are we getting more and larger fires?

Maybe the data does not exist.  But in fact it does, and I will say there is absolutely no way, no way, the author has not seen the data.  The reason it is not in this article is because it does not fit the "reporters" point of view so it is left out.  Here is where the US government tracks fires by year, at the National Interagency Fire Center.   To save you clicking through, here is the data as of this moment:

click to enlarge fires 2013 to date

 

Well what do you know?  The number of fires and the acres burned in 2013 are not some sort of record high -- in fact they actually are the, respectively, lowest and second lowest numbers of the last 10 years.  In fact, both the number of fires and the total acres burned are running a third below average.

The one thing this does not address is the size of fires.  The author implies that there are more fires burning more acres, which we see is clearly wrong, but perhaps the fires are getting larger?  Well, 2012 was indeed an outlier year in that fires were larger than average, but 2013 has returned to the trend which has actually been flat to down, again exactly opposite of the author's contention (data below is just math from chart above)

Click to enlarge

 

In the rest of the post, I will briefly walk through his 8 statements highlighted above and show why they exhibit many of the classic fallacies in trying to assert a trend where none exists.  In the postscript, I will address one other inconsistency from the article as to the cause of these fires which is a pretty hilarious of how to turn any data to supporting you hypothesis, even if it is unrelated.  Now to his 8 statements:

(1) Again, no trend here, this is simply a single data point.  He says that  10 states have set in one year or another in the last decade a record for one of two variables related to fires.  With 50 states and 2 variables, we have 100 measurements that can potentially hit a record in any one year.  So if we have measured fires and fire damage for about 100 years (about the age of the US Forest Service), then we would expect on average 10 new records every decade, exactly what the author found.  Further, at least one of these -- costliness of the fires -- should be increasing over time due to higher property valuations and inflation, factors I am betting the author did not adjust for.

(2)  This cost increase over 17 years represents a 5.4% per year inflation.  It is very possible this is entirely due to changes in firefighting unit costs and methods rather than any change in underlying fire counts.

(3) This is idiotic, a desperate reach by an author with an axe to grind.  Wildfires in Arizona often occur out of fire season.   Having a single fire in the winter means nothing.

(4) Again, we know the data does not support the point.  If the data does not support your point, find some "authority" that will say it is true.  There is always someone somewhere who will say anything is true.

(5) It is true that there are scientists who have blamed global warming for these fires.  Left unmentioned is that there are also scientists who think that it is impossible to parse the effect of a 0.5C increase in global temperatures from all the other potential causes of individual weather events and disasters.  If there is no data to support a trend in the mean, it is absolutely irresponsible to claim causality in isolated data points in the tails of the distribution

(6) The idea that temperatures in Arizona have risen 3/4 a degree F for four decades is madness.  Not even close.  This would be 3F, and there is simply no basis in any reputable data base I have seen to support this.  It is potentially possible to take a few AZ urban thermometers to see temperature increases of this magnitude, but they would be measuring mostly urban heat island effects, and not rural temperatures that drive wildfires (more discussion here).  The statement that "the average annual number of Arizona wildfires on more than 1,000 acres has nearly quadrupled" is so awkwardly worded we have to suspect the author is reaching here.  In fact, since wildfires average about 100 acres, the 1000 acre fire is going to be rare.  My bet is that this is a volatility in small numbers (e.g. 1 to 4) rather than a real trend.  His final statement that "One-quarter of Arizona's signature ponderosa pine and mixed-conifer forests have burned in just the past decade" is extremely disingenuous.  The reader will be forgiven for thinking that a quarter of the trees in Arizona have burned.  But in fact this only means there have been fires in a quarter of the forests -- a single tree in one forest burning would likely count for this metric as a forest which burned.

(7) This may well be true, but means nothing really.  It is more likely, particularly given the evidence of the rest of the article, to be due to forest management processes than global warming.

(8)  This is a data point, not a trend.  Is this a lot or a little?  And remember, no matter how much he says is at risk (and remember this man is testifying to get more budget money out of Congress, so he is going to exaggerate) the actual acreage burning is flat to down.

Postscript:  The article contains one of the most blatant data bait and switches I have ever seen.  The following quote is taken as-is in the article and has no breaks or editing and nothing left out.   Here is what you are going to see.  All the way up to the last paragraph, the author tells a compelling story that the fires are due to a series of USFS firefighting and fuel-management policies.  Fair enough.   His last paragraph says that Republicans are the big problem for opposing... opposing what?  Changes to the USFS fire management practices?  No, for opposing the Obama climate change plan. What??  He just spent paragraphs building a case that this is a fire and fuel management issue, but suddenly Republicans suck for opposing the climate change bill?

Like most land in the West, Yarnell is part of an ecosystem that evolved with fire. "The area has become unhealthy and unnatural," Hawes says, "because fires have been suppressed." Yarnell is in chaparral, a mix of small juniper, oak and manzanita trees, brush and grasses. For centuries, fires swept across the chaparral periodically, clearing out and resetting the "fuel load." But beginning in the early 1900s, U.S. wildfire policy was dominated by fire suppression, formalized in 1936 as "the 10 a.m. rule" – fires were to be extinguished by the morning after they were spotted; no exceptions. Back in the day, the logic behind the rule appeared sound: If you stop a fire when it's small, it won't become big. But wildland ecosystems need fire as much as they need rain, and it had been some 45 years since a large fire burned around Yarnell. Hawes estimates that there could have been up to five times more fuel to feed the Yarnell Hill fire than was natural.

The speed and intensity of a fire in overgrown chaparral is a wildland firefighter's nightmare, according to Rick Heron, part of another Arizona crew that worked on the Yarnell Hill fire. Volatile resins and waxy leaves make manzanita "gasoline in plant form," says Heron. He's worked chaparral fires where five-foot-tall manzanitas produced 25-foot-high flames. Then there are the decades of dried-up grasses, easily ignitable, and the quick-burning material known as "fine" or "flash" fuels. "That's the stuff that gets you," says Heron. "The fine, flashy fuels are just insane. It doesn't look like it's going to be a problem. But when the fire turns on you, man, you can't outdrive it. Let alone outrun it."

Beginning with the Forest Service in 1978, the 10 a.m. rule was gradually replaced by a plan that gave federal agencies the discretion to allow fires to burn where appropriate. But putting fire back in the landscape has proved harder to do in practice, where political pressures often trump science and best-management practices. That was the case last year when the Forest Service once again made fire suppression its default position. Fire managers were ordered to wage an "aggressive initial attack" on fires, and had to seek permission to deviate from this practice. The change was made for financial reasons. Faced with skyrocketing costs of battling major blazes and simultaneous cuts to the Forest Service firefighting budget, earlier suppression would, it was hoped, keep wildfires small and thus reduce the cost of battling big fires.

Some critics think election-year politics may have played a role in the decision. "The political liability of a house burning down is greater than the political liability of having a firefighter die," says Kierán Suckling, head of the Tucson-based Center for Biological Diversity. "If they die, you just hope that the public narrative is that they were American heroes."

The problem will only get worse as extremist Republicans and conservative Democrats foster a climate of malign neglect. Even before President Obama unveiled a new climate-change initiative days before the fire, House Speaker John Boehner dismissed the reported proposal as "absolutely crazy." Before he was elected to the Senate last November, Jeff Flake, then an Arizona congressman, fought to prohibit the National Science Foundation from funding research on developing a new model for international climate-change analysis, part of a program he called "meritless." The biggest contributor to Flake's Senate campaign was the Club for Growth, whose founder, Stephen Moore, called global warming "the biggest myth of the last one hundred years."

By the way, the Yarnell firefighters did not die due to global warming or even the 10am rule.  They died due to stupidity.  Whether their own or their leaders may never be clear, but I have yet to meet a single firefighter that thought they had any business being where they were and as out of communication as they were.

 

Let's Not Forget Martha Coakley's Crimes

Martha Coakley, former Massachusetts Attorney General, is apparently running for Governor of that state after her failed bid to be Senator.

Walter Olson has a round-up of Coakley's various abuses of power, which start with her shameful hounding of the Amirault family against all reason and facts, apparently for the sole purpose of self-aggrandizement.  Unfortunately, all too frequently AG's are rewarded for prosecutorial abuse in the form of media attention and often election to higher offices (Janet Reno rode witch hunts of day care operators very similar to Coakley's into the White House).

The day care worker witch hunt was one of the more bizarre events to occur in my lifetime.  I even sat on a jury of such a case, the only jury I have ever been on.  You have heard of copycat murders?  This turned out to be a copycat false accusation.  It eventually became clear that the teenage babysitter who made the main accusations really wanted to be on the Oprah show, and saw how other day care and child abuse whistle blowers had been interviewed by Oprah.   I kid you not.   By the time of this case, defense lawyers had become wise to the prosecutors' game of using brainwashing techniques to try to get small children to make bizarre sexual allegations against adults in the case.  So the defense was able to highlight the extremes that a couple of state psychologists had gone through to effectively break one poor 6 year old girl.  It was sickening, and it took us about 15 minutes to acquit.   But this is the type of behavior Ms. Coakley and her staff were engaging in.

Will Health Insurance on Obamacare Exchanges Cost More Than People Are Paying Today?

I am not going to add to the confusion on this.  For a lot of people who already have health insurance, the answer will be "maybe".  Older folks and folks with health problems may see less expensive policies, and younger people will likely pay more.

I do, however, want to add two observations that are often lost in this discussion:

  • For the millions of people who have chosen not to buy health insurance and now will be forced to do so by law, they will certainly be paying more.  Anything is more than the "zero" which has been these peoples' preference to date.
  • A more interesting question is:  what will happen to premiums in the second year.  Right now, insurance companies are pricing as if all these young people who have not been buying policies will be forced to do so by the law (a key, maybe the key, funding source for Obamacare is forcing young healthy people to buy overpriced policies to subsidize older people).  What if they refuse?  After all, the penalties in the first several years are not very severe, and Obamacare removes any risk from not being covered, because if one gets sick he can just run and sign up then, like getting home insurance once your house is on fire.  The prices on the exchanges in 2014 will be very interesting.

About That "Thousand Year" Storm in Colorado....

Last week I expressed my doubts that the storm in Colorado was really, as described breathlessly at the Weather Underground, a once in a thousand year storm (the logic of the article, and many others, being that one in a thousand is the same as "zero" and thus the storm could not have occurred naturally and therefore Global Warming).

Turns out it is not even close.  From the Colorado Climate Center at Colorado State University:

How much rain fell on Colorado this week? And where? Colorado residents can help the weather experts at Colorado State University answer these questions.

In response to the incredible recent rains and flooding in parts of the state, the Colorado Climate Center will be mapping rainfall totals and graphing hourly intensities for the entire state for the period beginning Sunday, Sept. 8 (as storms first developed over southern Colorado) through the end of the storm later this weekend

"As is typical of Colorado storms, some parts of the state were hard hit and others were untouched. Still, this storm is ranking in the top ten extreme flooding events since Colorado statehood," said Nolan Doesken, State Climatologist at CSU. "It isn't yet as extreme or widespread as the June 1965 floods or as dramatic as the 1935 floods but it ranks right up there among some of the worst.”

Among the worst, according to Climate Center data, occurred in May 1904, October 1911, June 1921, May 1935, September 1938, May 1955, June 1965, May 1969, October 1970, July 1976, July 1981, and, of course, the Spring Creek Flood of July 1997 that ravaged Fort Collins and the CSU campus.

."Every flood event in Colorado has its own unique characteristics," said Doesken. "But the topography of the Colorado Front Range makes this area particularly vulnerable when the necessary meteorological conditions come together as they did this week."

So it is perhaps a one in fifteen year flood.  Note that (by the math in my previous article linked above) a one in fifteen year flood covering an area half the size of Colorado should occur on overage over 60+ times a year around the world.  Our intuition about tail of the distribution event frequency is not very good, which is just another reason they make a poor proxy for drawing conclusions about trends in the mean of some phenomenon.

 

Money for Nothing, Detroit Edition

A huge portion of Detroit's operating costs go to police and fire.  If you include retiree health care and pensions, way over half of Detroit's budget goes to police and fire**.  That is an enormous increase since 1960.

detroit-bankruptcy-spending

So one might expect the schools to suck and the streetlights to be broken (which they do and are), but you would expect great freaking fire and police coverage.  But you would be wrong.  Detroit has one of the highest crime rates in the country.  This is what you get for your money there:

If you're a Detroiter who needs a police officer, it will take 58 minutes to get help -- more than five times what it takes elsewhere in the United States...

Here are some of the other problems outlined in the bankruptcy filing:

-- Response times for Emergency Medical Services and the Detroit Fire Department average 15 minutes, which is more than double the 7-minute averages seen in other cities.

-- The police department closes only 8.7% of its criminal cases, which the filing blames on the department's "lack of a case management system, lack of accountability for detectives, unfavorable work rules imposed by collective bargaining agreements and a high attrition rate in the investigative operations unit."

-- The city's violent crime rate is five times the national average, and the highest of any city with a population exceeding 200,000.

 

** This is in large part due to the power of their unions, and their ability in elections to translate hero worship for police and fire fighters into political power that will allow them to get anything they want.  As a politician, try to stand up for sanity and you will be deluged by union ads arguing that you don't respect our men who are risking their lives for you, etc. etc.

Absolute Fecklessness

I am still reading through the Detroit Free Press report on Detroit's financial history and it is really amazing.  All the stuff you expect to see is there -- over taxation, over regulation, crony gifts, huge government pay and pensions, etc.  But this was new to me, and even worse than I expected:

Gifting a billion in bonuses: Pension officials handed out about $1 billion in bonuses from the city’s two pension funds to retirees and active city workers from 1985 to 2008. That money — mostly in the form of so-called 13th checks — could have shored up the funds and possibly prevented the city from filing for bankruptcy. If that money had been saved, it would have been worth more than $1.9 billion today to the city and pension funds, by one expert’s estimate.

Outright gifts of taxpayer money to government workers, even beyond their already rich salary and pensions!  Folks on the Left from Paul Krugman to Obama are trying to portray Detroit as the innocent victim of economic and demographic exogenous forces beyond their control.  Don't let them.  The exodus from Detroit and the destruction of its economy were not random events the city had to endure, but self-inflicted wounds.

The Government, Nudging, and Delay Discounting

The theory behind the idea that government should nudge (or coerce, as the case may be) us into "better" behavior is based on the idea that many people are bad at delay discounting.  In other words, we tend to apply huge discount rates to pain in the future, such that we will sometimes make decisions to avoid small costs today even if that causes us to incur huge costs in the future (e.g. we refuse to walk away from the McDonalds french fries today which may cause us to die of obesity later).

There are many problems with this theory, not the least of which is that many decisions that may appear to be based on bad delay discounting are actually based on logical and rational premises that outsiders are unaware of.

But the most obvious problem is that people in government, who will supposedly save us from this poor decision-making, are human beings as well and should therefore have the exact same cognitive weaknesses.  No one has ever managed to suggest a plausible theory as to how our methods of choosing politicians or staffing government jobs somehow selects for people who have better decision-making abilities.

Here is a great example.  These are the people who think YOU have a problem with delay discounting:

When all the numbers are crunched, one fact is crystal clear: Yes, a disaster was looming for Detroit. But there were ample opportunities when decisive action by city leaders might have fended off bankruptcy.

If Mayors Jerome Cavanagh and Roman Gribbs had cut the workforce in the 1960s and early 1970s as the population and property values dropped. If Mayor Dennis Archer hadn’t added more than 1,100 employees in the 1990s when the city was flush but still losing population. If Kilpatrick had shown more fiscal discipline and not launched a borrowing spree to cover operating expenses that continued into Mayor Dave Bing’s tenure. Over five decades, there were many ‘if only’ moments.

“Detroit got into a trap of doing a lot of borrowing for cash flow purposes and then trying to figure out how to push costs (out) as much as possible,” said Bettie Buss, a former city budget staffer who spent years analyzing city finances for the nonpartisan Citizens Research Council of Michigan. “That was the whole culture — how do we get what we want and not pay for it until tomorrow and tomorrow and tomorrow?”

Ultimately, Detroit ended up with $18 billion to $20 billion in debt and unfunded pension and health care liabilities. Gov. Rick Snyder appointed bankruptcy attorney Kevyn Orr as the city’s emergency manager, and Orr filed for Chapter 9 on July 18.

Time: Sheltering America from Bad News Since 2009

Via Zero Hedge, Time's covers around the world this week.  Spot the outlier

20130916_time

 

I am actually sympathetic to the case that the NCAA should allow student athletes to make money as athletes (just as student business majors are allowed to make money in business and student musicians are allowed to make money in music).

But seriously?  Probably the highest profile, most contentious international diplomatic crisis of the last five years and Time chose not to put it on the cover this week?  There are only two explanations, and neither are good.  1)  Time felt that a story about American mis-steps might hurt sales.  or 2)  Time is protecting their guy in the White House.  The athlete cover story does not have an expiration date, so is the kind of story a magazine holds for a slow week.  It is hard to describe last week as a "slow week."

The Magic Theory

Catastrophic Anthropogenic Climate Change is the magic theory -- every bit of evidence proves it.   More rain, less rain, harder rain, drought, floods, more tornadoes, fewer tornadoes, hotter weather, colder weather, more hurricanes, fewer hurricane -- they all prove the theory.  It is the theory that it is impossible not to confirm.  Example

It will take climate scientists many months to complete studies into whether manmade global warming made the Boulder flood more likely to occur, but the amount by which this event has exceeded past events suggests that manmade warming may have played some role by making the event worse than it otherwise would have been...

An increase in the frequency and intensity of extreme precipitation events is expected to take place even though annual precipitation amounts are projected to decrease in the Southwest. Colorado sits right along the dividing line between the areas where average annual precipitation is expected to increase, and the region that is expected to become drier as a result of climate change.

That may translate into more frequent, sharp swings between drought and flood, as has recently been the case. Last year, after all, was Colorado's second-driest on record, with the warmest spring and warmest summer on record, leading to an intense drought that is only just easing.

Generally one wants to point to a data trend to prove a theory, but look at that last paragraph.  Global warming is truly unique because it can be verified by there being no trend.

I hate to make this point for the five millionth time, but here goes:  It is virtually impossible (and takes far more data, by orders of magnitude, than we posses) to prove a shift in the mean of any phenomenon simply by highlighting occasional tail-of-the-distribution events.  The best way to prove a mean shift is to actually, you know, track the mean.  The problem is that the trend data lines for all these phenomenon -- droughts, wet weather, tornadoes, hurricanes -- show no trend, so the only tool supporters of the theory have at their disposal is to scream "global warming" as loud as they can every time there is a tail-of-the-distribution event.

Let's do some math:  They claim this flood was a one in one thousand year event.  That strikes me as false precision, because we have only been observing this phenomenon with any reliability for 100 years, but I will accept their figure for now.  Let's say this was indeed a one in 1000 year flood that it occurred over, say, half the area of Colorado (again a generous assumption, it was actually less that that).

Colorado is about 270,000 KM^2 so half would be 135,000 KM^2.  The land area of the world (we really should include oceans for this but we will give these folks every break) is about 150,000,000 km^2.  That means that half of Colorado is a bit less than 1/1000 of the world land area.

Our intuition tells us that a 1 in 1000 year storm is so rare that to have one means something weird or unusual or even unnatural must be going on.  But by the math above, since this storm covered 1/1000 of the land surface of the Earth, we should see one such storm on average every year somewhere in the world.  This is not some "biblical" unprecedented event - it is freaking expected, somewhere, every year.  Over the same area we should also see a 1 in 1000 year drought, a 1 in 1000 year temperature high, and a one in one thousand year temperature low -- every single damn year.  Good news if you are a newspaper and feed off of this stuff, but bad news for anyone trying to draw conclusions about the shifts in means and averages from such events.

Irony and the New Fed Chairman -- Progressives Support Continued Excess Financial Profits for the 1%

I have a column up at Forbes on Monday discussing the irony of how progressives, in opposing Larry Summers as Fed Chairman, have essentially made common cause with the 1%, who opposed Summers because they feared that he might end the quantitative easing gravy train for the financial markets.

Great Book for Movie Fans

Save the Cat.  It is actually a book on screenwriting, but you don't need to be a writer to enjoy it.  I zipped through it in a few hours.  I just downloaded the sequel, which is perhaps more targeted at movie buffs in that it takes his framework from the first book and shows how 30 famous movies follow it.

The reason it is compelling is that it lays out the script formula -- down to the minute -- followed by a LOT of modern movies.  I have seen the structure discussed in this book repeated in enough other books to be convinced that it is indeed the formula used by most writers, taught to most amateurs, and eschewed only by the most confident.

My wife's first reaction was: how limiting, to turn movies into repetitious formulas.  There is in fact a substantial school of thought that Save the Cat has singled-handedly killed movie-making creativity.    I understand and sympathize with that response, but remember that symphonies and sonnets and Shakespeare plays and Greek tragedies all have a defined "standard" formula as well.   Here, for example, is the typical structure of a Sonata (many or even most first movements of symphonies are in this format) (source)

sonataform

 

Even when artists violated these forms, they were familiar with the forms and knew they were violating them and were doing so for a reason.  When you take Music 101, a lot of the time is learning these forms.  So why shouldn't one do something similar in trying to appreciate film?

Save the Cat presents the movie version of this.  Other books like this book provide a separate take.  But what is amazing is not that they are different -- they use different terminology -- but how absolutely similar they are when you cut through the jargon, down to the script page numbers for each event.

PS-  This may be one of those if you can't do, teach things.  His book on writing screenplays is a bestseller, though he only had two movies produced from his work (he died fairly young) and one of these won a Razzie for worst screenplay of the year.  To some extent, it all depends on how you define "success".  He sold a couple of dozen spec scripts, which is the very definition of "not easy".

Arkansas Sets 30-minute Statute of Limitations for Crimes Committed by Police

Seriously, I am not joking.  The Arkansas State Police apparently reserve the right not to consider any complaints of police brutality or mis-use of force if they are not filed within a half hour of the incident:

The killing led to a town hall meeting Monday, and the city prosecutor, Kyle Hunter, was assigned to investigate, saying his job was to determine whether the actions were justified. Hunter requested an investigation by the state police, who were not called in following the killing of the 107-year-old Isadore, but, theArkansas Times reports, state police declined Hunter’s request:

With the lapse in time, [Arkansas State Police’s Bill] Sadler said, the crime scene has been compromised, the local law enforcement agency (the Pine Bluff PD) has already processed the evidence, and the witnesses were (long since) no longer sequestered. "It's a credibility issue and a forensic issue," he said.

"APB routinely responds to those requests when they come in in a timely matter," he said. He said that requests typically come within 30 to 40 minutes after deadly force was used.  Sadler said that there was no law or protocol requiring local authorities to call in the state police in a situation in which an officer uses deadly force. "That is the choice of the local jurisdiction," he said. If called, they could have arrived within half an hour, he said. "We would have immediately responded."

Raise Medicare Taxes

I have made this argument before -- your lifetime Medicare taxes cover only about a third of the benefits you will receive.   Social Security taxes are set about right -- to the extent we come up short on Social Security, it is only because a feckless Congress spent all the excess money in the good years and has none left for the lean years.

But Medicare is seriously mis-priced.  I have always argued that this is dangerous, because there is nothing that screws up the economy more than messed up price signals.  In particular, I have argued that a lot of the glowy hazy love of Medicare by Americans is likely due to the fact that it is seriously mis-priced.  Let's price the thing right, and then we can have a real debate about whether it needs reform or is worth it.

A recent study confirms my fear that the mispricing of Medicare is distorting perceptions of its utility.

As debate over the national debt and the federal budget deficit begins to heat up again, an analysis of national polls conducted in 2013 shows that, compared with recent government reports prepared by experts, the public has different views about the need to reduce future Medicare spending to deal with the federal budget deficit. Many experts believe that future Medicare spending will have to be reduced in order to lower the federal budget deficit [1] but polls show little support (10% to 36%) for major reductions in Medicare spending for this purpose. In fact, many Americans feel so strongly that they say they would vote against candidates who favor such reductions. Many experts see Medicare as a major contributor to the federal budget deficit today, but only about one-third (31%) of the public agrees.

This analysis appears as a Special Report in the September 12, 2013, issue of New England Journal of Medicine.

One reason that many Americans believe Medicare does not contribute to the deficit is that the majority thinks Medicare recipients pay or have prepaid the cost of their health care. Medicare beneficiaries on average pay about $1 for every $3 in benefits they receive. [2] However, about two-thirds of the public believe that most Medicare recipients get benefits worth about the same (27%) or less (41%) than what they have paid in payroll taxes during their working lives and in premiums for their current coverage.

Update:  Kevin Drum writes on the same study.  Oddly, he seems to blame the fact that Americans have been trained to expect something for nothing from the government on Conservatives.  I am happy to throw Conservatives under the bus for a lot of things but I think the Left gets a lot of the blame if Americans have been fooled into thinking expensive government freebies aren't really costing them anything.

Subjunctive in English -- Are There Examples Other than "Were"?

The other day I joked that most of my memories of Spanish in high school were of trying to learn and conjugate the subjunctive, an activity for which English speakers are not well-prepared.

In fact, the only example of a unique subjunctive verb conjugation I can think of in English is "were".  For example in "if I were a rich man,..."

I am sure there must be others.  I could Google it, but does anyone know any off hand?

Update:  We already have an awesome answer in the comments.  Though I am unclear how anyone that proficient in grammar can stand to regularly read this blog.  Makes me even more self-conscious about proof-reading better, which I actually have been attempting, even if the results are not obvious.

The Inevitable Result of Government Policy on the Labor Market

Assume the following conditions:

  1. I am increasingly liable for any dumbass thing my employees say or do.  It does not matter if it is absolutely against my values and company rules, if someone, say, uses a racial epithet with a customer or another employee, I will likely at least get sued.  Given my deductibles on insurance, I am out $20,000 a case even if I win.
  2. Minimum wages have increased faster than the production value of unskilled, inexperienced laborers.
  3. Obamacare is raising the minimum cost of a full-time employee by at least $2,000-$3,000 a year, not including the as-yet-to-be-define but likely expensive record-keeping and administrative requirements 
  4. In states like California, the law increasingly gives employees the ability to make new claims on my income (e.g. fake workers comp and disability claims) or to even make themselves un-firable (by asking for a family medical leave, or claiming a disability, or claiming to be a whistle-blower).

Against this backdrop, what am I going to do?  I am going to hire more skilled and experienced workers who justify my minimum employment costs.   I am going to hire mature people less likely to get me in trouble via their immature actions.  I am going to hire people with a long work history so I can see there is not a history of scams and fraud.

In other words, I am going to hire older people.  And thus:

click to enlarge

 

Of all the issues I raised above, the first one gets the least attention but in our customer contact business is perhaps the most important.  The cost of hiring a knucklehead is immense.  And the folks that do stupid stuff in 1 are often the very same people who try to take us in 4.

Keynesian Multiplier of 0.05

So much for that Keynesian stimulus notion (emphasis in the original)

With everyone focused on the 5th anniversary of the Lehman failure, we are taking a quick look at how the world's developed (G7) nations have fared since 2008, and just what the cost to restore "stability" has been. In a nutshell: the G7 have added around $18tn of consolidated debt to a record $140 trillion, relative to only $1tn of nominal GDP activity and nearly $5tn of G7 central bank balance sheet expansion (Fed+BoJ+BoE+ECB). In other words, over the past five years in the developed world, it took $18 dollars of debt (of which 28% was provided by central banks) to generate $1 of growth. For all talk of "deleveraging" G7 consolidated debt has been at a record high 440% for the past four years.

The theory of stimulus -- taking money out of the productive economy, where it is spent based on the information of hundreds of millions of people as to the relative value of millions of potential investments, and handing it to the government to spend based on political calculus -- never made a lick of sense to me.  I guess I would have assumed the multiplier in the short term was fractional but at least close to one, indicating in the short run that if we borrow and dump the money into the economy we would get some short-term growth, only to have to pay the piper later.  But we are not even seeing this.

Regulatory Suffocation

Taxes are usually the heart of the discussion when people talk about the bad business climate in California.  And certainly their taxes are just insanely high.  But for folks like me, an even bigger barrier is the regulatory environment. We are closing several operations in California at the end of this year mainly because we are just exhausted with the compliance costs and regulatory barriers to expansion.    In Ventura County, for example, we have  a camping operation that has never made money because it is under-scale. We have the capital and desire to expand it, but it has just proven impossible to do so.

A big reason for this is the regulation in California and in Ventura County.    We once had to get something like 7 permits just to remove a dangerous and dilapidated deck.  We added a 500 gallon fuel tank for fueling boats (to eliminate the unsafe practice of driving in and out of town with about 100 5-gallon fuel containers) and it took over 3-years of trekking to multiple county and state offices to get it permitted.  We thus despaired of trying to get a campground expansion approved.   Approximately the same expansion that cost us just under a million dollars in Alabama several years ago was going to cost over $5 million and Ventura County, and the County was still piling on requirements when we gave up.  And this is even before we fart with crazy California break laws and other nuttiness.

I have often told folks that I would love to see a liberal defender of all this regulatory overreach try to construct and open a restaurant in Ventura County.  It would be fascinating to watch.   (All this musing was touched off by this article on underground restaurants that try to sidestep this regulatory cost and mess).  We are a service business and California still has a lot of money, so we still operate in California.  But I continue to wonder why any company, like a manufacturer, remains in California.  Sell there yes, but produce anything you can out of state and ship it in.  Even as a service business we do a bit of this, no longer stick-building anything but having all our buildings, cabins, stores, etc built in Arizona as modular buildings and then shipped to California.  Even our labor force is partially "imported", as we hire folks who live in their RV's to come from all over the country to live and work at our campgrounds.

As I read the other day, if Silicon Valley were not already in California, would anyone in their right mind put it there?

Postscript:  One other story:  California's regulatory environment has caused a real shift in the culture as well.  At one location that we are closing this year, a local attorney has regular dinner meetings with groups of our employees to brainstorm among the group to see if they can come up with something to sue us over.

The Left Rallies to the Aid of Obama's Legacy

Well, the talking points on Obama and Syria must be out on Jornolist, and we see the results at Kevin Drum's place, among others.  Apparently, Obama's handling of Syria marks him as a great President:

If you want to give Obama credit, give him credit for something he deserves: being willing to recognize an opportunity when he sees it. I can guarantee you that George W. Bush wouldn't have done the same. But Obama was flexible enough to see that he had made mistakes; that congressional approval of air strikes was unlikely; and that the Russian proposal gave him a chance to regroup and try another tack. That's not normal presidential behavior, and it's perfectly praiseworthy all on its own.

In the meantime, it's rock solid certain that Assad isn't going to launch another gas attack anytime soon, which means that, by hook or by crook, Obama has achieved his goal for now. No, it's not the way he planned it, but the best war plans seldom survive contact with reality, and the mark of a good commander is recognizing that and figuring out to react. It may not be pretty to watch it unfold in public in real time, but it's nonetheless the mark of a confident and effective commander-in-chief. It's about time we had one.

Wow, this is so brazenly absurd that if I hadn't lived through the last several decades, I would never have believed it was possible to make something like this stick.  I am so glad that I am not a Red or Blue team member such that I would have to occasionally humiliate myself to support the team like this.

Can We Please End the Drug War Now

Recently small town Grantville, Georgia police chief Doug Jordan flew out to meet with our very own Sheriff Joe.

Following their meeting, Jordan expressed his hopes to establish Grantville’s own drug team. He also planned to have some of his officers travel to Arizona for training.

Seriously?  A dedicated drug team?  Grantville has a population of 3,096 in 2011.  Here it is in all its metropolitan glory:

grantville

 

Next, they will be wanting a tank.

Equal Marriage Arizona on Hold

I wasn't really going to post on this but since it is making the news, Equal Marriage Arizona (of which I am co-chair) is putting on hold our efforts to amend the Arizona Constitution in 2014 and will defer to 2016.

At some point when this quiets down, I will write an extended article about the experience, which was certainly a learning exercise for me (and by the way did nothing to dissuade me from my general default stance of avoiding politics like the plague).

We honestly thought that an effort initiated and led by Republicans and libertarians was the right choice for a heavily red state like Arizona, and I am still convinced of that.  In fact, I think we knocked some of the Conservative opposition on their heels, and several Conservative commentators publicly stated that ours was a dangerously (for them) effective approach.  In addition, a number of prominent Republicans took me aside and thanked me -- they felt that getting this passed would help save the party from its worst impulses.

From the beginning, I had some nervousness that our language was not perfect (though the lawyers were happy with it), but it was polling well and even more than a year in advance we were polling over 50% of probable voters in 2014.

The buzz saw we ran into was not from the  Conservative opposition but from those we thought of as our allies.  Several prominent LGBT and gay marriage groups turned against us early, and pressured nearly every other group on the Left to oppose us, even getting a number of groups who had endorsed us early to withdraw their endorsements.

The reasons for this were myriad, and I may write that story at some future date.  Some of the wounds were self-inflicted on our part, and some were frankly due to my failings as a leader in this political arena.  But I am convinced that these groups were never, ever going to support us.   Some groups honestly worried that 2014 was too early in Arizona.  Others had... other concerns.  Scott Shackford of Reason makes some pretty good guesses, but there were issues beyond these.