January 2012

“Toyota Hybrid Hoax,” my piece in Forbes Online

by Michael Fumento on March 12, 2010

in Nanny State, Precaution & Risk, Regulation

Yes, you suspected it all along. Now I’ve proved it. Mr. Sikes’s wild ride was a fabrication.

The only reason his accelerator was stuck was because the was a size 10 on it. I’ve nailed him on all counts: the brakes, the shifter, the off button. And to test his claim that he actually reached down and tried to pull the accelerator up but it wouldn’t budge I did something that apparently occurred to no other reporter in the country. I actually got in a 2008 Prius to see if it was physically possible to reach that far. I couldn’t get anywhere close. An orangutan could, but whatever Mr. Sikes is, that doesn’t seem to describe him.

Also, as I knew would be the case, all sorts of things are coming out about his shady background including being deeply in debt, including to Toyota, and making lots of insurance claims for allegedly lost or stolen property. It’s all in the piece.

Nevertheless, and I plan to write more on this theme, the real hoaxter isn’t James Sikes. The red flags were popping up right from the beginning and the media ignored them because they wanted to ignore them. There’s a Toyota feeding frenzy going on and reporters just want their chunk.

Human Achievement of the (Fri)Day:Let’s have a BioBeer

by Michelle Minton on March 12, 2010

in Odds & Ends

Thank the calendars it’s Friday! Many of you have already left your jobs and are on the way to a pub to meet some friends for a few drinks, to have fun, and to relax. Well, imagine if your frosty mug of beer did more than plumping your ego and soothing your nerves…what if your brew of choice could extend and improve the quality of your life?

Imagine no more. In November 2008, scientists working at Rice University managed to create a yeast that can be used in the brewing process to create a beer with potentially age-fighting ability.

BioBeer, as it’s called, has three genes spliced into special brewer’s yeast that produce resveratrol, the chemical in red wine that is thought to protect against diabetes, cancer, Alzheimer’s and other age-related conditions.

Okay, it doesn’t quite meet the invented-in-2009 criteria, but it is just on the cusp…and so cool I had to bend the rules a little. Resveratrol is not only thought to prevent Alzheimer’s disease and heart disease, but it is also believed that it aids in weight loss.

Combine these developments with the recent news that the hops in beer is now thought to fight cancer and you have one powerful potion that could someday make the “beer versus wine” argument (at least in terms of which one is better for your health) obsolete.

Researchers at the German Cancer Research Centre in Heidelberg have discovered that beer contains a powerful molecule that helps protect against breast and prostate cancers.

Found in hops, the substance called xanthohumol blocks the excessive action of testosterone and oestrogen. It also helps to prevent the release of a protein called PSA which encourages the spread of prostate cancer.

So tonight, when you raise a glass, raise it for the scientists working hard to identify the factors underlying disease and age-issues and come up with nifty and tasty ways to solve these problems. Cheers and remember to enjoy this particular human achievement in moderation.

MD Proposed Alcohol Tax Hikes Upward of 1,000 Percent

by Angela Logomasini on March 12, 2010

in Nanny State, Personal Liberty

Despite their seeming love of big government, Maryland lawmakers have done one thing worthy of praise: they have has kept state alcohol taxes relatively low. According to the Tax Foundation‘s most recent report on excise taxes, Maryland’s wine tax is the is the 11th lowest, it’s beer tax is the 8th lowest, and it is tied with D.C. for the lowest tax on spirits. For Marylanders who value freedom, a nice glass of wine, an affordable sip of beer, or a shot of whiskey, this is is terrific news! But nanny statists don’t like it, and they are lobbying for change.

According to today’s Washington Post, the state legislature is considering steep tax hikes on wine and spirits. Allegedly, the funds would be used to help those in need, including the mentally ill, as the taxes could theoretically defray state health care costs. At least that is what the Maryland Developmental Disabilities Coalition suggested this week in testimony before a Maryland House committee.

But such advocates put too much faith in government. Maryland’s health care problems have nothing to do with low state taxes. Despite relatively low alcohol taxes, Maryland’s per-capita state taxes are among the top five highest in the nation, according to another Tax Foundation report. Feeding that beast more tax revenues won’t make state social services more effective, nor can residents be sure the revenues will be used for health care. Tax hikes more likely will increase government waste and prolong a sluggish economy–which hurts rather than helps.

And the proposed tax increases are nothing short of draconian. As noted by “Brewnotes” blogger Ben Brouse in a well composed letter to MD legislators (posted on his blog):

MD proposed tax rates ($$/gal):

beer–1.16 (1,288% increase)
wine–2.96 (740% increase)
spirits–10.03 (668% increase)

If the tax increase passes, our state alcohol beverage taxes will be four times the national average for beer (highest in the nation; 2nd place Alaska at $1.07/gal), over three-and-half times the national average for wine (highest in the nation; 2nd place Alaska at $2.50/gal), and just shy of 50% higher than the national average for spirits (eleventh-highest in the nation; 1st place Washington state at $26.45/gal) [Source: the Jernigan paper referred to in the House bill preamble].

According to the Washington Post, change is unlikely because of “powerful alcohol lobby” in the state. Yet bigger lobbies have fallen under the weight of tax-and-spend politicians in the past. Still, consumers had better hope that the Post is right because it is they–not the “alcohol lobby”–who will be footing the bill.

Fumento on the Tube regarding Prius Expose in Forbes Online

by Michael Fumento on March 12, 2010

in Odds & Ends

Neil Cavuto, 6:20, Fox Business, regarding my Forbes Online piece “Toyota Hybrid Horror Hoax.”

CEI in the News: March 12, 2010

by Ryan Lynch on March 12, 2010

in Video, Zeitgeist

[youtube:http://www.youtube.com/watch?v=qYKivF80GYo 285 234]

CEI Weekly: CEI Argues Against Climate Change Policies

by Charles Huang on March 12, 2010

in Economy, Energy, Environment, Features, Global Warming, Legal, Personal Liberty, Regulation, Zeitgeist

CEI Weekly is a compilation of articles and blog posts from CEI’s fellows and associates sent out via e-mail every Friday. Also included in the Weekly newsletter is a brief description of CEI’s weekly podcast and a feature on a major CEI breakthrough made during the week. To sign up for CEI Weekly, go to http://cei.org/newsletters.


CEI Weekly
March 12, 2010


>>CEI Against Climate Change Policy
>>On Tuesday, the two articles on the front page of the Washington Times’ Commentary section were written by CEI analysts William Yeatman and Chris Horner, both criticizing proposed funding of green jobs by the Obama administration.

>>Additionally, CEI’s Chris Horner also appeared on Fox’s America’s Newsroom, to debate the US’ role in the IMF’s Climate Fund which would pay for climate programs.


>>Shaping the Debate
Real Competition Among Health Plans
John Berlau and Jonathan Moore’s article in the Politico

Avoid Land Grabs while Downsizing Detroit
Marc Scribner’s article in the Detroit News

FCC Summit Pushes Broadband for all, Spending Unused Stimulus
Wayne Crews and Ryan Radia’s citation in the Washington Examiner

DOE E-Mails To Wind Energy Lobbyists Cast Cloud Over Green Jobs Proposals
Chris Horner’s citation in the Investor’s Business Daily


>>Best of the Blogs
Climate Alarm Declining - Gallup
by Marlo Lewis
Gallup’s annual update of Americans’ attitudes on things environmental found that 48% of Americans believe the seriousness of global warming is generally exaggerated, up from 41% in 2009, and 31% in 1997, when Gallup first posed the question.

The Hidden Costs of Health Care Reform: “Obamacare Is A Budgetary Disaster”
by Hans Bader
The health care bills backed by President Obama will cost $2.3 trillion, not the $900 billion Obama claims, and will be a “budgetary disaster” that drives up the national debt, explains health care expert James C. Capretta.  The Obama administration managed to hide $1.4 trillion in costs generated by the health care reform bill though a series of budgetary “gimmicks” that the Congressional Budget Office (CBO) is required to treat as valid in scoring the bill’s enormous cost.

Lagerfeld, Chanel – Jumping the Shark with Global Warming Fashion?
by Christine Hall
Did Karl Lagerfeld jump the shark with his fall-winter 2010-11 ready-to-wear collection for Chanel? The collection was described by the AP as global warming in theme, and subsequently scorned on Newsbusters.  The show featured icebergs reportedly flown in from Sweden (whoa! with the carbon footprint!) and some extreme costume elements – like an antler-and-ear headdress – that would only appeal as street-wear to a Lady Gaga or Bjork.  Ridiculous and unwearable?  Certainly.


>>LibertyWeek Podcast
Episode 83: What Would Reagan Do?
Richard Morrison, Jeremy Lott and Marc Scribner collaborate to bring you episode 82. We cover the ever-growing deficit, the Reagan legacy, Cablevision v. ABC, the RNC’s fundraising strategy and David Paterson on scandal watch.


>>Support CEI

Like what you read?
The Competitive Enterprise Institute’s 25-year record of success is made possible by our over 3,000 supporters. Make sure to stop by www.cei.org/support and make a donation to continue your support or become a supporter. Curious about all the possible ways to donate to CEI? Contact Al Canata at acanata@cei.org or 202-331-2280 to find out more.

Charles Huang

Web and Media Associate

Competitive Enterprise Institute

chuang@cei.org

http://www.cei.org

http://www.openmarket.org

202-331-1010

How Do These People Avoid Cognitive Dissonance?

by Ryan Young on March 12, 2010

in Healthcare, Insurance, Politics as Usual, Regulation

Supporters of the health care bill spend a lot of time attacking health insurance companies.

The health care bill, by the way, would legally require people to give a lot of money to those same insurance companies. A lot of money. It would be the largest corporate gift Washington has ever given out — as much as $1.5 trillion over ten years by one estimate.

Health insurers’ loudest detractors are actually their best friends, and they don’t even seem to realize it. Apparently, regulatory capture is not always a conscious process.

Human Achievement of the Day: Knees on Sale

by Michelle Minton on March 11, 2010

in Odds & Ends

Today’s Human Achievement of 2009 highlights an oft overlooked benefit of defending individuals’ right to freely innovate and compete: technologies become more available and cheaper for everyone. After many centuries and countless individuals’ contributions to chemistry, medicine, and materials science an engineer at Stanford University created an artificial knee joint that will cost just $20.jaipurknee2

The new kind of prosthetic, dubbed the JaipurKnee, was created by Joel Sadler and his classmates at Stanford’s Institute of Design as a class project.

“We’re doing magical things in these classes,” Sadler said. The project’s presence at [Stanford's annual Cool Product Expo]was a callout to our students to be joel-sadler-of-standfordthinking in the mode of, ‘What am I doing in my education? How can I apply this to what I want to do in my life?’”

High-end prosthetic knees can range in cost from $10,000 to over $100,00 but the lower-end models provided little stability for the person because the design (a basic hinge) did not move in the same way a human knee would.

twenty-dollar-kneeOld models of low-cost knee joints used a single-axis joint, which rotated like a door hinge. They were unstable and unsafe for India’s varied terrain; the joint tended to buckle under weight, which could be physically as well as psychologically painful for a freshly fitted amputee.

Sadler’s team developed a new model out of a less costly oil-filled nylon polymer and is self lubricating. The design was based on the models of high-end titanium joints and has proven to be flexible and high-performing. While the estimated cost of production is only $20 Sadler noted that he expects the costs to drop even further–and he is correct. As technologies advance, as market saturation increases, as competition heats up, the costs and prices of technologies almost always decreases.

Mixed Message

by Ryan Young on March 11, 2010

in Politics as Usual, Zeitgeist

Guns and schools don’t mix. State and local jurisdictions have all kinds of gun-free school legislation. There’s even, redundantly, federal legislation.

So why is the Department of Education buying 27 shotguns?

Obama Runs Up Largest Budget Deficit in American History; Monthly Deficit Alone Exceeds Entire Annual Deficit for 2007 Under Bush

by Hans Bader on March 11, 2010

in Bailout Watch, Economy, Health and Illness, Healthcare, Insurance, Politics as Usual, Precaution & Risk, Regulation, Sanctimony

“The Obama Administration has run up the largest budget deficit in American history in February of 2010, a whopping total of $220.9 Billion in just one month.   February 2010’s unprecedented total is more than most year-long budget deficits in American history,  including 2007’s year-long total of $161 Billion.”

“President Obama’s policies would add more than $9.7 trillion to the national debt,” the Congressional Budget Office said.   That’s roughly fifteen times the cost of the Iraq and Afghanistan Wars combined.

The president’s healthcare proposals will add still more to the national debt, which he is attempting to conceal through budget gimmicks.  Even Democrats have expressed alarm about their unaffordable cost.   The true cost of his healthcare plan, experts say, is at least $2.3 trillion, dramatically increasing the budget deficit.   ObamaCare would reduce medical innovation, raise taxes, drive up insurance premiums, break campaign promises, and increase state deficits.  It  would cut the quality of  care, while imposing restrictions that failed when tried at the state level.  It ignores advice from experts about how to cut costs.

In the 2008 campaign, Obama promised a “net spending cut,” but as soon as he was elected, he proposed massive spending increases.

Economists and real estate experts say that a mortgage bailout program the Obama administration spent $75 billion on has backfired and harmed the real estate market.

The Washington Post today reports that the administration has no plans to reform Fannie Mae and Freddie Mac.  Those mortgage giants are receiving huge bailouts (more than $125 billion and rapidly rising) to enable them to carry out Obama’s policy of giving billions of dollars in handouts to deadbeat mortgage borrowers, some of whom have high incomes, and lived beyond their means.

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