A Crony Gift By Any Other Name is Still The Same

Via the AZ Republic

The true cost to operate Jobing.com Arena ranges from $5.1 million to $5.5 million a year, which is about $10 million to $20 million a year less than the Glendale City Council has agreed to pay hockey-related interests to manage the facility in recent years.

The net management costs, included in documents recently published on the city’s website, are bundled in the city’s solicitation for a new company to operate the city-owned arena.

Glendale council members interviewed by The Arizona Republic said they hadn’t reviewed the documents and were surprised by the figures.

“I wasn’t aware of that,” Mayor Jerry Weiers said. “Then again, I know damn good and well that the way it’s been run, they’re not putting anything extra into it whatsoever.”

This is unbelievably easy to understand .  It is a hidden subsidy, and everyone knows it.  The pictures of politicians running around saying "what, we had not idea" is just hilarious.  The Phoenix Coyotes hockey team has the lowest attendance in the league, and loses money.  In addition, the NHL, which owns the team, has committed to its members that it will not take a loss on the team, meaning that it needs to sell the team for north of $200 million.  The team is worth over $200 million, but only if moved to Canada.  In Glendale, it is worth $100 million or less.

The city was close to a deal a few years ago to sell the team.  It tackled the team value problem by basically throwing $100 million in taxpayer money into the pot for the sale (to make up for the difference in value between the asking price and actual worth).  When this encountered a Constitutional challenge (under the AZ Constitution corporate welfare is illegal though you would never know it living here) the city council disguised the subsidy in the form of an above-market-rate payment for running the arena.

So absolutely everyone knows what is going on here.  This has become a massive black hole for the town of 250,000 people that achieves nothing but the self-aggrandizement of the local politicians, who feel like bigshots if they have a real major sports franchise in town.  Oh, you heard that this all actually pays for itself in tax money?  Hah!

The justifications for previous management deals revolved around a commitment to keeping the team in Glendale. Loyal fans pleaded with council members for the team’s future. And a council majority saw advantages, including thousands of fans trekking to their city 41 nights a year to watch hockey and spend money in the city’s restaurants and shops.

The city collects revenue associated with the team and arena through leases, parking fees and tax collections for food and merchandise sales in the nearby Westgate Entertainment District. Those figures have been on the upswing, particularly since an outlet mall opened last fall.

Total collections were $4.7 million in fiscal 2011, and reached $6.4 million through just the first eight months of the 2013 fiscal year, according to the city. That money helps pay, but doesn’t fully cover, the city’s debt to build the arena.

The town spent $300 million on a stadium and subsidized the team between $25 and $40 million a year, depending on how you count it, all to get an "incremental" $6-8 million in tax money.  And by the way, just because they collect it in this area does not make it incremental -- these sales could well have cannibalized another area of town.

The Shifting Concept of "Dystopian"

Some professors are arguing about online education.  I will not comment on that particular topic right now, though it sounds a bit like two apatosauruses arguing about whether they should be worried about the comet they just saw.

I did, however, want to comment on this, from an SJSU professor to a Harvard professor, I assume pushing back on online course work designed by Harvard.  Emphasis added.

what kind of message are we sending our students if we tell them that they should best learn what justice is by listening to the reflections of the largely white student population from a privileged institution like Harvard? Our very diverse students gain far more when their own experience is central to the course and when they are learning from our own very diverse faculty, who bring their varied perspectives to the content of courses that bear on social justice…

having our students read a variety of texts, perhaps including your own, is far superior to having them listen to your lectures. This is especially important for a digital generation that reads far too little. If we can do something as educators we would like to increase literacy, not decrease it…the thought of the exact same social justice course being taught in various philosophy departments across the country is downright scary — something out of a dystopian novel…

I would have said that teaching social justice at all and requiring students to take it at many universities was something out of a dystopian novel.  In fact, the whole concept of social justice, wherein it is justified that certain groups can use the coercive force of government to get whatever they may fancy merely by declaring that there is a right to it (e.g. health care), actually underlies a number of dystopian novels.

Postscript #1:  If find it hilarious that the SJSU rejects Harvard-created course materials because they are the product of white privilege.  I cannot speak to Harvard undergrad, but my son is at Amherst which could certainly be lumped into the same category (any college named after an early proponent of biological warfare against Native Americans has to be up there in the white privilege category).  My son actually gave up his earlier plan to study history when he looked at the course catalog.  It was impossible to simply study, say, the political and economic history of Western Europe.  All the courses are such things as "the role of women in the development of Paraguayan aboriginal rights."

Postscript #2:  I don't have the larger context for this letter but it strikes me the professor is stuck in the typical leftist technocratic top-down and centralized single mandated approach to anything.  Why is it that online courses would end up with no viewpoint or content competition?  The Internet has increased the access of most people to a diversity of ideas that go beyond what they got in the morning fish-wrap and from Uncle Walter on TV.  Why would it have the opposite effect in education?  Or perhaps that is what the professor is worried about, a loss of control of the education message by the current academic elite, to be feared in the same way the Left hates Fox News.

Phoenix Spent $1.4 Billion To Cannibalize Buses

I have written many times about my problems with Phoenix light rail -- examples are here and here.  We paid $1.4 billion in initial capital costs, plus tens of millions a year in operating losses that must be subsidized by taxpayers, for a line that carries a tiny tiny percentage of Phoenix commuters.  Capital costs equate to something like $75,000 per daily round trip rider  -- If we had simply bought every daily rider a Prius, we would have save a billion dollars.

But, as with most things the government does, it is worse than I thought.  Over the last several years, I have been treating these daily light rail riders as if they are incremental users of the area's transit system.  In fact, they are not, by Valley Metro's (our regional transit authority) own numbers.  Here is the key chart, from their web site.

ridership report chart graphic

Compare 2009 to 2012.  Between those years, light rail ridership increased by just a hair under 8 million.  In the same time period, bus ridership fell by just a hair over 8 million.  So all new light rail ridership is just cannibalizing buses.  We have spent $1.4 billion dollars to shift people to a far more expensive transit platform, which does not offer any faster service along its route (the light rail has to fight through traffic lights on the surface streets same as buses).

This is a pattern seen in most cities that adopt light rail.  Over time, total ridership is flat or falls despite rising rail ridership, because rail is so expensive that it's operation forces transit authorities to cut back on bus service to balance their budgets.  Since the cost per rider is so much higher for light rail than buses, a dollar shifted from buses to light rail results in a net reduction in ridership.

Postscript:  Looking at the chart, light rail has achieved something that Valley Metro has not seen in decades -- a three year period with a decline in total ridership.  Sure, I know there was a recession, but going into the recession the Valley Metro folks were arguing that a poor economy and rising gas prices should boost their ridership.

 

 

NPR on the Obamacare-Driven Shift to Part-Time Work

I don't have time to excerpt but, as I predicted, the media is finally catching up to the enormous shift (mainly in the retail and service sector) to part-time work.    I had a long article on this at Forbes last week.

Undermining Your Own Argument

Apparently Leftist blogger Meg Lanker faked a rape threat against herself in an attempt to Conservatives look bad.  OK, this is sad and pathetic, even more so because it is almost guaranteed that her political allies will first forgive her, and then defend her actions as some sort of brave and necessary action to fight patriarchal... uh, whatever.    It is also an incredibly dangerous action at a university, given that the Obama Administration has demanded that schools eliminate due process from on-campus sexual assault allegations and tilt their judicial process, such that it is, against accused male students.  Had she done this at, say, Yale and actually framed a particular guy, that guy would probably be kicked out of school already.

I won't add any more critique of Ms. Lanker.  Just assume that I am appalled by her actions.  But let me raise an issue with the Conservative critique of Ms. Lanker:  No one seems to be able to resist the temptation to comment on her looks and her weight, two things that (to my knowledge) are absolutely irrelevant to the discussion.  They are just completely ad hominem.  Stacy McCain engages in it, for example.   The posts on this Facebook page (which perhaps is a hoax itself, given the ungrammatical and frankly absurd wording of the header phrase) are even more abusive in this same vein.  Seriously folks, it is rather undermining to your argument that Lanker was exaggerating the boorishness of men with her fake threat when you jump on her Facebook page and engage in boorish ad hominem attacks.

Update:  Holy moly did I get the wrong link for the Stacy MCain post.  I will leave the link above as-is because it is kind of funny.  I had this link on my clipboard because I wanted to suggest them to my teenage daughter as a way to deflect unwanted (by dad) male attention.  The Stacy McCain link is here.

 

All It Needs Is A Big Red Self-Destruct Button

I kind of like having a window in my office, but otherwise this is a pretty cool office / lair.

Site Fixed. Hopefully

Host Gator usually does a good job for me but screwed up bringing the server back from maintenance.  To their credit they admitted the mistake.  All looks well EXCEPT for some reason we have picked up absurdly high Disqus Twitter reaction counts.

If You Like Your Current Health Insurance...

... expect a big price increase.

From my broker, in response to my wife's query as to why our health insurance renewal was so much more expensive this year.  It is by far the largest single year increase we have ever had.  He said:

this is just he beginning of higher costs for insurance and many changes will be taking place due to the full implementation of Obamacare

Social Security Worse Than Even the Most Corrupt Private Funds

Kevin Drum and Matt Yglesias think that 401-K's are a total ripoff.

After the new fee disclosure statements went out, roughly the same percentage—half!—of participants said that they still do not know how much they pay in plan annual fees and expenses, according to a recent survey by LIMRA, an association of insurance and financial services organizations.

....For those 401(k) participants who said they thought they knew how much they paid in fees, most of them were way off base. One out of four participants thought they paid 25% or more in fees, 16% thought they paid between 10% to 24% in fees, and 30% thought they paid between 2% and 9% in fees. Only 28% of participants thought their fees were less than 2%.

That group is the closest to reality. On average fees and expenses range between 1 to 2 percent, depending on the size of the plan (how many employees are covered) and the employees’ allocation choices (index funds versus actively managed funds), says LIMRA.

First, this is bizarre, as the indictment here of private fund management seems to be that people are *gasp* paying fees that are much lower than they think they are.   Also, it may well be that these people are not mistaken, but just using a different mental definition for fee percentage.  After all, why is total assets necessarily the best denominator for this calculation?  Obviously the fund industry likes it that way because it gives the lowest number, but it could be that people are thinking about annual fees as a percentage of the annual income.  Thus a fee of 1-2% of assets could well be 25% of annual income.  Hell, since I invest for income growth, I could argue that this is a MORE rational way to think about fees.  Obviously Drum and Yglesias are just captive mouthpieces of big Mutual Fund.

Second, and perhaps more importantly -- do you know what retirement fund has higher implicit fees and a lower lifetime total return than nearly any private fund in existence?   Social Security.  Read your statement you get and do the math.  You will find that the total you will likely get out will be less than you put in, even BEFORE present value effects, even if you have put money in for 30 years.  In other words, the internal rate of return on your and your employer's taxes is less than zero.

Ahh, but you say, that is because your Social Security taxes are going to subsidize people who don't work.  Fine, but then don't be surprised if there is strong support for a retirement system that does not pass the money through government hands.  Even getting a crappy rate of return from some hack investment manager is likely still better than putting your money in a government system where cash is skimmed off to feed whatever political constituency has the clout to grab it.

Postscript -- by the way, I leave aside the issue of whether it is a productive thing to tax-subsidize.  I am generally against tax preference for selected behaviors, even relatively popular  ones like savings.  But Yglesias wants to replace 401-K's with some kind of coerced government system (the note about fees above is to make the case that the average person cannot be trusted and that our masters need to do the savings for us).  Image one giant Calpers.  Ugh.

Can't Anyone be Consistent?

I am just floored that Conservatives, who very very recently argued that the act of one bad guy at Newtown should not be used to limit the rights of tens of millions of legal gun owners, are now arguing that the acts of two bad guys (Tsarnaev's) SHOULD be used to limit the rights of tens of millions of peaceful immigrants.

Blaming Excessive Taxation on .... Capitalism?

Megan McArdle has a lot more patience than I explaining to a writer at Crooked Timber why artists don't get special tax deductions that aren't available to anyone else.

But what I thought was amazing, was the fact that they seem to blame an overbearing and over-reaching IRS on .... markets and capitalism. I'll give one example of the general tone:

One of the days, I’ll get around to reading the copy of Sandel’s ‘What Money Can’t Buy; The Moral Limits of Markets’. It’s even made the exquisitely painful cut of being one of only two dozen books brought on our three-month sojourn on the south coast of England. When I do read Sandel, I hope to acquire a greater appreciation for exactly how market thinking has permeated and corrupted so many aspects of human life.

One surprising place a weirdly attenuated and manically zealous form of market thinking has popped up is in the Minnesota tax office. (via BoingBoing) They’re running a quite unhinged vendetta against Lynette Reini-Grandell and Venus DeMars, a married couple who make music, art, poetry and teach English. The taxman running their audit says Reini-Grandell and DeMars’ creative activities don’t make enough money, and haven’t for years, thus proving the artists are mere hobbyists who shouldn’t get a tax break. Either they should turn a consistent profit by now, or have given up already and gone back to being good little consumers.

I am exhausted with people with people equating free markets and capitalism with the crony corporate state we have today.

By the way, I am the first to acknowledge that the government does not consider non-monetary benefits in many parts of their legislation.  Just one example is minimum wage legislation. For a teenager without work experience, being able to have an internship where they can prove they are reliable and learn how to work in an organization has tremendous value.  But these huge non-monetary benefits (so large many teens and low-skilled workers might take a job for free, at least to prove themselves initially) cannot be counted in the minimum wage calculation.

Classic Partisan Thinking

Kevin Drum writes

On the right, both climate change and questions about global limits on oil production have exited the realm of empirical debate and become full-blown fronts in the culture wars. You're required to mock them regardless of whether it makes any sense. And it's weird as hell. I mean, why would you disparage development of renewable energy? If humans are the ultimate creators, why not create innovative new sources of renewable energy instead of digging up every last fluid ounce of oil on the planet?

I am sure it is perfectly true that there are Conservatives who knee-jerk oppose every government renewable energy and recycling and green jobs idea that comes along without reference to the science.  But you know what, there are plenty of Liberals who knee-jerk support all these same things, again without any understanding of the underlying science.  Mr. Drum, for example, only recently came around to opposing corn ethanol, despite the fact that the weight of the science was against ethanol being any kind of environmental positive years and years ago.  In fact, not until it was no longer cool and caring to support ethanol (a moment I would set at when Rolling Stone wrote a fabulous ethanol expose) did Drum finally turn against it.  Is this science, or social signalling?   How many folks still run around touting electric cars without understanding what the marginal fuels are in the electricity grid, or without understanding the true well-to-wheels efficiency?  How many folks still run around touting wind power without understanding the huge percentage of this power that must be backed up with hot backup power fueled by fossil fuels?

Why is his almost blind support of renewable energy without any reference to science or the specifics of the technologies involved any saner than blind opposition?  If anything, blind opposition at least has the numbers on their side, given past performance of investments in all sorts of wonder-solutions to future energy production.

The reason there is a disconnect is because statists like Drum equate supporting government subsidies and interventions with supporting renewables.  Few people, even Conservatives, oppose renewables per se.  This is a straw man.  What they oppose are subsidies and government mandates for renewables.  Drum says he has almost limitless confidence in  man's ability to innovate.  I agree -- but I, unlike he apparently, have limitless confidence in man's ability to innovate absent government coercion.  It was not a government program that replaced whale oil as an illuminant right when we were approaching peak whale, it was the genius of John D. Rockefeller.  As fossil fuels get short, prices rise, and people naturally innovate on substitutes.  If Drum believes that private individuals are missing an opportunity, rather than root for government coercion, he should go take up the challenge.  He can be the Rockefeller of renewable energy.

Postscript:  By the way, it is absurd and disingenuous to equate opposition to what have been a series of boneheaded government investments in questionable ventures and technologies with some sort of a-scientific hatred of fossil fuel alternatives.  I have written for a decade that I long for the day, and expect it to be here within 20 years, that sheets of solar cells are cranked from factories like carpet out of Dalton, Georgia.

More Washington Hypocrisy

When an election was in the offing and 60 Minutes was paying attention, Congress voted a couple of years ago to finally remove the exemption that protected Congress and its staff from insider trading laws that apply to everyone else.

Now that the election is over and no one is looking, Congress has reversed itself 

So... with very little fanfare, Congress quietly rolled back a big part of the law late last week. Specifically the part that required staffers to post disclosures about their financial transactions, so that the public could make sure there was no insider trading going on. Congress tried to cover up this fairly significant change because they, themselves, claimed that it would pose a "national risk" to have this information public. A national risk to their bank accounts.

It was such a national risk that Congress did the whole thing quietly, with no debate. The bill was introduced in the Senate on Thursday and quickly voted on late that night when no one was paying attention. Friday afternoon (the best time to sneak through news), the House picked it up byunanimous consent. The House ignored its own promise to give Congress three days to read a bill before holding a vote, because this kind of thing is too important to let anyone read the bill before Congress had to pass it.

Why Is Apple Planning a Huge Bond Issue?

Apple has tens of billions of dollars of cash.  So why is it considering a $10 billion bond issue?

Despite its huge cash stockpile, Apple plans to issue debt to help fund dividend payments and stock buybacks in part because much of its cash is overseas. Raising money in the debt market would help Apple avoid the big tax bill that would come from bringing the cash back to the U.S

The US is the only major company I know of that double taxes foreign income of its corporations.  Outside the US, the general principle is that a company pays taxes locally in the country in which income is earned, and then can repatriate that money freely.  Apple has already paid taxes on this money locally (granted, at relatively low rates, but country's corporate tax rates are lower than ours).  But it must pay something like 35% to repatriate that money to the US.  This is sort of a negative stimulus, a multi-billion dollar incentive for Apple to find some way to spend this money overseas rather than in the US.

I will reiterate my tax plan.  Eliminate the hugely distortive corporate income tax altogether.  Instead, tax all individual capital gains and dividends at regular income rates - no special low rates.  Corporate earnings are thus taxed when they flow through to individuals either as higher equity prices or as dividends.

The savings and benefits would be huge --

  • an order of magnitude less room for special interst lobbying
  • the elimination of crony tax breaks for favored industries
  • the elimination of the tax preference for debt  (this is the other game Apple is playing - take on tax-favored debt to boost your stock price)
  • the elimination of all sorts of bizarre and unnatural corporate tax schemes and vehicles
  • the elimination of all that corporate legal tax expense
  • the elimination of two sets of books for every company (every major corporation has two sets of books, one for investors and one for the IRS, differing in many ways including depreciation methodology)

CO2 Leads to Prostitution

You may have noticed that I have not blogged a lot on climate of late.  This is mainly because nothing substantial has really changed in four years or so.  The skeptic argument has not changed and really has not been refuted.  In fact, published estimates for climate sensivity continue to move down towards my estimates.

But I could not resist linking to this

Several House Democrats are calling on Congress to recognize that climate change is hurting women more than men, and could even drive poor women to "transactional sex" for survival.

Licensing is Anti-Consumer

From a reader, comes this story of St. Louis so far refusing to grant a license to a woman who wants to operate a clothing sales truck (in a parallel to the growing food truck business).  What is the official explanation for denying her a license?  These government folks are refreshingly honest, not even bothering with the BS about consumer protection and jumping right to the real reason - incumbent businesses don't want new forms of competition.

NewsChannel 5 received this written explanation from Maggie Crane, the communications director for Mayor Francis Slay:

"We like the idea of fashion trucks a lot, but we still need to find out if there is a way to license mobile boutiques that does not put brick and mortar stores, who have already made substantial investments in their neighborhoods, at a disadvantage. We will also need to identify neighborhoods that will welcome them.

"We went through that process with food trucks a few years ago. Food trucks, for example, must abide by an enforceable set of rules outlining everything from safety regulations to where and for how long they can park.

"Our prediction is that the region's first legal fashion trucks will be here in the City. But, for now, they are pirates."

Note by this same logic Amazon should have been banned by St. Louis, as certainly bookstores in St. Louis had made substantial investments in their neighborhoods.  In fact, one of my favorite book stores used to be in Clayton, near St. Louis, though I fear it has died  (anyone know, I can't remember the name, was a large independent).  In fact, that is an advantage of the Internet I had never considered -- it allows new businesses to challenge old ones without harassment by local licensing and zoning authorities.

Short Memories

I just heard a radio commercial today urging listeners to learn how to flip houses to great profit with absolutely no capital or down payment required.  What a great idea.

A Guide for the Left: Using Abortion to Understand the Passion of 2nd Amendment Advocates

My new Forbes column is up, and discusses the incredible similarity, in my experience, between gun and abortion advocates.  I find this particularly interesting because, in many cases, the occupants of each camp hate each other.

The most important common trait they share is that they both tend to feel (and act) like they are standing on shifting sands.  They both feel that their Constitutional rights (for guns as written in the 2nd Amendment, and for abortion as clarified in Roe v. Wade) are under constant attack by a powerful and vocal minority.  They share almost the exact same sense of paranoia (I don’t mean any negative connotation to that word — as a libertarian, I am paranoid about a lot of things).  As a result, they feel the need to hold the line against every regulation or incursion, no matter how seemingly reasonable, fearing the narrow edge of the wedge that will eventually threaten their core rights.  They know in their hearts that the true intent of regulators is to work towards outright bans, so even seemingly “reasonable” and narrow limits are treated as a Trojan Horse and opposed with an energy and vehemence that seems over-the-top to people outside of the debate or on the opposing side.

Corporate Welfare Feedback Loop

John Ross discusses the absurd tax exemption enjoyed by major sports leagues like the NFL

I was particularly struck by this

as a tax-exempt entity, [the NFL] doesn’t pay taxes on the income that it earns. The NFL has managed to keep its income earnings a little on a low side by paying its top executives corporate-level salaries—eight NFL execs took home compensation of $51.5 million in 2010. The teams get to write off their NFL membership dues, roughly $6 million per team, for the privilege of belonging to this unusual trade association, and that money is put into a stadium fund that provides interest-free loans to teams so long as they get taxpayer financing on stadium construction and improvement costs.

So NFL teams pay dues to the NFL, and get to write the cost of those dues off on their taxes.  But the NFL pays not taxes on the dues it receives   It then puts these dues in a fund that the teams can use, but ONLY if they go out and extort further taxpayer gifts for their stadiums.  Ugh.

Never Miss A Good Opportunity to Shut Up

It strikes me that a service business model that relies on frequently suing your customers is not really sustainable.

My folks out in the field operating campground face far greater problems with customers than any of these petty complaints that Suburban Express is taking to court.  My folks have drunks in their face almost every weekend screaming obscenities at them.  We have people do crazy things to avoid paying small entry fees.  We get mostly positive reviews online but from time to time we inevitably get a negative review with which we disagree (e.g. from the aforementioned drunk who was ticked off we made him stop driving).

And you know how many of these folks we have taken to court in 10 years?  Zero.  Because unless your customer is reneging on some contractual obligation that amounts to a measurable percentage of your net worth, you don't take them to court.

Yes, it is satisfying from an ego perspective to contemplate taking action against some of them.  There are always "bad customers" who don't act in civilized and honorable ways.   But I  tell my folks that 1)  You are never going to teach a bad customer a lesson, because by definition these same folks totally lack self-awareness or else they would not have reached the age of fifty and still been such assholes.  And 2) you are just risking escalating the situation into something we don't want.  As did Suburban Express in the linked article.

The first thing one has to do in the customer service business is check one's ego at the door.  I have front-line employees that simply refuse to defuse things with customers (such as apologize for the customer's bad experience even if we were not reasonably the cause).  They will tell me that they refuse to apologize, that it was a "bad customer".   This is all ego.  I tell them, "you know what happens if you don't apologize and calm the customer down?  The customer calls me and I apologize, and probably give him a free night of camping to boot."  In the future, if this dispute goes public, no one is going to know how much of a jerk that customer was at the time.  Just as no one knows about these students in the Suburban Express example - some may have been  (likely were) drunken assholes.  But now the company looks like a dick for not just moving on.

This is all not to say I am perfect.  It is freaking amazingly easy to forget my own rule about checking one's ego at the door.  I sometimes forget it when dealing with some of the public agencies with which I am under contract.  One of the things you learn early about government agencies is that long-time government employees have never been inculcated with a respect for contract we might have in the private world.  If internal budget or rules changes make adhering to our contract terms difficult, they will sometimes ignore or unilaterally change the terms of our written contract.

And then I will get really pissed off.  Sometimes, I have to -- the changes are substantial and costly enough to matter.  But a lot of the time it is just ego.  The changes are small and de minimis from our financial point of view but I get all worked up, writing strings of eloquent and argumentative emails and letters, to show those guys at the agency just how wrong they are.  And you know what?  Just like I tell my folks, the guys on the other end are not going to change.  They are not bad people, but they have grown up all their lives in government work and have been taught to believe that contract language is secondary to complying with their internal bureaucratic rules.  They are never going to change.  All I am doing is ticking them off with my letters that are trying to count intellectual coup on them.

To this end, I think I am going to tape these two lines from Ken White's post on the wall in front of my desk

  • First, never miss a good opportunity to shut up.
  • Second, take some time to get a grip. You will not encounter a situation where waiting 48 hours to open your mouth will destroy your brand.

On The Creativity of Hollywood

Congrats to Overlawyered, as it Moves to Cato

The Overlawyered blog is one of the blogs I read every day, and is one of the grand old blogs of the Internet, dating back to when AOL was relevant, Pets.com was still paying for Superbowl ads, and I was still using Netscape to browse.

The move to Cato is described here.

The "They Will Not Assimilate" Argument Rising Yet Again From the Grave

How many times does an argument have to be wrong, and for how long, before it finally loses credibility?  I suppose the answer must be nearly infinite, because the "they will not assimilate" argument is rising again, despite being about 0 for 19 on the groups to which it has been applied.  Germans, Irish, Italians, Eastern Europeans, Chinese, Mexicans and now Chechnyans.   This argument always seems to be treated seriously in real time and then looks stupid 20 or 30 years later.  As an extreme example, here is Benjamin Franklin writing about Germans in 1751:

why should the Palatine Boors [ie Germans] be suffered to swarm into our Settlements, and by herding together establish their Language and Manners to the Exclusion of ours? Why should Pennsylvania, founded by the English, become a Colony of Aliens, who will shortly be so numerous as to Germanize us instead of our Anglifying them, and will never adopt our Language or Customs, any more than they can acquire our Complexion.

(By the way, if you want to retain an unadulterated rosy image of Franklin, who was a great man for many reasons, do not read the last paragraph at that link.  People are complicated and sometimes even great men could not shed all the prejudices of their day.)

The only good news is that the circle of those acceptable to the xenophobic keeps getting larger.  It used to be just the English, then it was Northern Europeans, then much later it was all Europe and today I would say it is Europe and parts of Asia.  So that's progress, I suppose.

Fun fact:  Ironically, the English King at the time Franklin wrote the quote above was George II.  He was actually a German immigrant, born in Germany before his father came to England as King George I, jumping over numerous better claimants who were Catholic.  His son actually assimilated very well, as George III spoke English as a first language, and his granddaughter Victoria practically defined English-ness.  By the way, Victoria would marry another German immigrant.

Government Agencies Run For the Benefit of Their Employees

I have written before that the single best framework for explaining the actions of most government agencies is to assume they are run for the benefit of their employees.  This certainly seems to be the case at the FAA, which can't over 10+ years complete a modernization of its computer system or match free, private Internet tools for flight tracking, but it was able to very quickly publish a web application to promote the danger of the sequester.  Public service is not even on these guys radar screens, as they have shown themselves completely willing to screw the public in a game of chicken to get more funding back for their agency

But after Mr. Coburn published his letter on his website, FAA regional employees wrote to blow the whistle on their bosses. As one email put it, "the FAA management has stated in meetings that they need to make the furloughs as hard as possible for the public so that they understand how serious it is."

Strategies include encouraging union workers to take the same furlough day to increase congestion. "I am disgusted with everything that I see since the sequester took place," another FAA employee wrote. "Whether in HQ or at the field level it is clear that our management has no intention of managing anything. The only effort that I see is geared towards generating fear and demonstrating failure." Just so.

Moms with Ivy League Educations

Apparently it is somewhat unethical in the feminist world for women to go to the Ivy League and then become a full-time mom.   I know several women who have Ivy League undergrad or graduate degrees and have, for at least part of their lives, been full time moms.  I am married to one, for example.  I have a few thoughts on this:

  1. People change plans.  Life is path-dependent.  Many women who ended up being full time moms out of the Ivy League will tell you that it still surprises them they made that choice.
  2. Why is education suddenly only about work?  I thought liberal arts education was all about making you a better person, for pursuits that go far beyond just one's work life.  I, for example, get far more use of my Princeton education in my hobbies (e.g. blogging) than in my job.   The author uses law school as an example, and I suppose since law school is just a highbrow trade school one might argue it is an exception.  But what is wrong with salting the "civilian" population with non-lawyers who are expert on the law?
  3. Type A Ivy League-trained full-time moms do a lot more that just be a mom, making numerous contributions in their community.  I am always amazed what a stereotyped view of moms that feminists have.
  4. If spots in the Ivy League, as implied by this article, should only be held by people seriously wanting to use the degree for a meaningful lifetime career, then maybe the Ivy League needs to rethink what degrees it offers.  Ask both of my sisters about the value of their Princeton comparative literature degrees in the marketplace.  By this logic, should Princeton be giving valuable spots to poetry majors?
  5. I can say from experience that the one thing a liberal arts education, particularly at Princeton which emphasized being well rounded, prepared me for was being a parent.  I can help my kids develop and pursue interests in all different directions.  One's love of learning and comfort (rather than distrust) of all these intellectual rubs off on kids almost by osmosis.  In other words, what is wrong with applying an Ivy League education to raising fabulous and creative kids?
  6. The author steps back from the brink, but this comes perilously close to the feminist tendency to replace one set of confining expectations for women with a different set.

Oh and by the way, to the author's conclusion:

Perhaps instead of bickering over whether or not colleges and universities should ask us to check boxes declaring our racial identity, the next frontier of the admissions should revolve around asking people to declare what they actually plan to do with their degrees. There's nothing wrong with someone saying that her dream is to become a full-time mother by 30. That is an admirable goal. What is not admirable is for her to take a slot at Yale Law School that could have gone to a young woman whose dream is to be in the Senate by age 40 and in the White House by age 50.

I would argue the opposite -- the fewer people of both sexes who go to law school to be in the Senate by 40 and the White House by 50, the better.

Update:  My wife added two other thoughts

  • Decades ago, when her mom was considering whether she wanted to go to graduate school, her dad told her mom that even if she wanted to be a stay at home mom, a good graduate degree was the best life insurance she could have in case he died young.
  • Women with good degrees with good earning potential have far more power in any divorce.  How many women do you know who are trapped in a bad marriage because they don't feel like they have the skills to thrive in the workplace alone?