January 2012

Afternoon Links: November 12, 2010

by Nicole Ciandella on November 12, 2010 · 1 comment

in Zeitgeist

1. A robot actress is getting rave reviews in a new Japanese play. James Cameron will never have to deal with “actors” again.

2. You know those reusable grocery bags that are supposed to be great for the environment? It turns out they may be hazardous waste.

3. Twitter users are rallying around a man convicted of tweeting a “terrorist threat” by retweeting his offending message under the hashtag #IAmSpartacus.

4. How exactly are the midterm elections like Toy Story 3?

5. The Mount Washington Resort in New Hampshire wants other businesses in the area to stop using “Mount Washington” in their names. Presumably the mountain itself will be allowed to keep its name.

November 24: National Opt Out Day

by Michelle Minton on November 12, 2010 · 3 comments

in Mobility, Nanny State, Personal Liberty, Regulation

OptOutDay.com the website and group is urging air-travelers on November 24 (one of the busiest travel days of the year) to refuse to submit to a full body scan. Described byWonkette as “Child Porn Airport Death Machines,” they can choose the “enhanced” pat-down option, described by others as public molestation. National Opt Out Day, created by “ordinary citizen” Brian Sodegren, is one of many groups pushing for action against the new backscatter full-body imaging machines that produce naked images of passengers and have questionable effects on health.

Dave Bates, president of the Allied Pilots Association, urged pilots to decline the scan, saying, “It is important to note that there are “backscatter” AIT devices now being deployed that produce ionizing radiation, which could be harmful to your health.”

It isn’t an easy choice, though. The enhanced pat-down, which includes a rigorous examination of the genitals and other parts of the body, has resulted in horror stories, including anaccount from a rape survivor who said the experience was like reliving her assault again. And it seems that this very publicly traumatic experience is meant to be horrifying in order to “encourage” passengers to choose the machines. Why? Because as the pat-down does not include a cavity search, it is little more than “security theater,” contributing nothing to the security of a flight. It certainly wouldn’t deter a motivated terrorist from sneaking a weapon onto a plane.

When Jeffrey Goldberg at The Atlantic confronted a TSA agent with this question the agent admitted that the point of the enhanced pat-down was to scare people into the machines.

What about people who hide weapons in their cavities? I asked….”We’re just not going there,” he reiterated.

I asked him if he was looking forward to conducting the full-on pat-downs. “Nobody’s going to do it,” he said, “once they find out that we’re going to do.”

In other words, people, when faced with a choice, will inevitably choose the Dick-Measuring Device over molestation? “That’s what we’re hoping for. We’re trying to get everyone into the machine.”

“The effectiveness of pat-downs does not matter very much, because the obvious goal of the TSA is to make the pat-down embarrassing enough for the average passenger that the vast majority of people will choose high-tech humiliation over the low-tech ball check.

As Goldberg and others have suggested, perhaps the TSA ought to focus on enhanced background checks rather than finding new ways to humiliate and violate innocent travelers. Perhaps the TSA should allow airlines the option to opt-out of using the backscatter machines and let passengers vote with their dollars whether or not security is worth this loss of dignity and personal privacy. Perhaps the federal government should revisit its decision to create the TSA in the first place, when it nationalized airport security in the wake of 9/11.

While many people opt-out on the 24th and for as long as the backscatter machines remain in use, many more will opt-out of flying all together. Fewer fliers means less money for airlines and less money to spend on repairing planes and conducting real security checks. Personally, I’m far more worried about the wings falling off of my plane than a terrorist with a pair of scissors.

In addition to a loss of revenue, fewer fliers means more drivers on the road and likely more accidents. All of this leads me to wonder whether these new security measures have made us a safer freer society?

Personally, I’m going to opt-out of the scanner every time I fly and I don’t plan on taking my molestation/pat-down quietly.

The Market Works as Shop Closes

by Lee Doren on November 12, 2010

in Economy

Ed Morrissey over at HotAir.com found an interesting story about a shop going out of business. Apparently, Don Otto’s Market was run the same way politicians treat their citizens. The result was predictable and the business failed in about 6 months.

So what was unique about Don Otto’s?

Well, the owners charged over $8 for eggs, and $28-per-pound of steak. Then when the customers refused to purchase the food at that price, the owners blamed the customers for their lack of loyalty, and understanding about “food quality.” Amazingly, the owners were shocked to think that the price on particular food actually translated into customer purchasing decisions. A quote from a few months ago explains the owner’s naivete:

Eggs, from free-range chickens, are $8.50 a dozen. When asked whether people will balk at the cost, Otto shrugs and explains these chickens’ laying routine. “Their lay cycles rely on the sun, not on artificial lamps that distort production,’’ he says.

So here is a clear example of the free market working. Citizens did not want a particular product at the price that was offered. As long as the shop stayed open, the business was wasting resources. Once the business closed, resources could better serve the public in other sectors of the economy. The sad thing is that had Don Otto’s been a car company, the government probably would have bailed it out already.

Image citation.

CEI Weekly: CEI Asks High Court to Hear Tobacco Case

by Nicole Ciandella on November 12, 2010

in Features, Odds & Ends

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
November 12, 2010

>>Featured Story

This week, CEI petitioned for a Supreme Court review of our lawsuit challenging the constitutionality of the 1998 Tobacco Master Settlement Agreement. CEI attorneys argue that the $200 billion agreement between major tobacco companies and state attorneys general violates the Compact Clause of the Constitution. Washington Examiner Senior Columnist (and former Warren Brookes fellow) Tim Carney recently reported on the case. For more on CEI’s cert petition and the history of the case, see here and here.

>>Shaping the Debate
Would the Lame Duck Dems Try to Force Card Check?
Vincent Vernuccio’s interview on Varney & Co.

Instant Reform: Measure the Hidden Tax of Regulation
Wayne Crews’ op-ed in Forbes

Big Labor May Still Reap Benefits Despite Election Losses
Ivan Osorio and Vincent Vernuccio’s op-ed in Forbes

Tax Preparers Shouldn’t Get IRS Favors
Ryan Young and Caleb Brown’s op-ed in Investor’s Business Daily

Retire the Stealth Tax on Carbon
William Yeatman’s citation in The Denver Post

Job Flight Not Air Board’s Problem
Ben Lieberman’s citation in The Orange County Register

Cigarette Warnings to Be More Graphic
Sam Kazman’s citation in The Washington Times


>>Best of the Blogs

The Problem With Public-Private Partnerships
By Fred Smith

USDA Puts Fox in Charge of Guarding the Hen House
By Greg Conko

White House Science Scandal Obfuscated With Creative Grammar
By Chris Horner

Towards a Goal of Smaller Government
By Kathryn Ciano

Gulf Oil Spill Doesn’t Spread to Voting Booths
By Ben Lieberman

>>CEI Podcast

November 11, 2010: Taxing New IRS Regulations

Fellow in Regulatory Studies Ryan Young explains how an IRS proposal for mandatory certification of tax preparers would hurt consumers and taxpayers. It is one more example of how regulation can hurt competition. Large tax preparation firms would benefit at the expense of individuals and smaller firms who can’t afford the added regulatory burden.

>>Support CEI

Like what you read?

The Competitive Enterprise Institute’s 26-year record of success is made possible by our over 3,000 supporters. Please be sure to stop bywww.cei.org/support to make a donation today.  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.

Morning Media Summary

by Lee Doren on November 12, 2010

in Economy, Energy, Environment, Legal, Personal Liberty, Regulation, Trade

Tech:

Cubans upset at video game that aims to kill Fidel Castro:
“Cuba’s state-run media and bloggers are not amused at “Call of Duty: Black Ops,” a new videogame in which the player can join a secret operation in the 1960s to assassinate former leader Fidel Castro.”

Palestinian held for Facebook criticism of Islam:
“A mysterious blogger who set off an uproar in the Arab world by claiming he was God and hurling insults at the Prophet Muhammad is now behind bars — caught in a sting that used Facebook to track him down.”

Firefox 4 regains speed mojo:
“With the release of Firefox 4 Beta 7, Mozilla returned to near the top spot in browser performance rankings.”

Seybold’s Take: The fallacy of unlocked phones:
“From time to time there is talk in the press about being able to purchase unlocked phones that can be moved from the networks they were intended for to other networks. It seems many people believe that if a phone is unlocked it can simply be moved from one network to another. This became a rallying point for many when AT&T Mobility and Apple teamed up for the iPhone on a five-year exclusivity deal.”

Google: Third parties liable for Java infringement, not us:
“Third parties, not Google, would be liable for any Java copyright violations in the Android mobile OS, according to a filing the vendor made Wednesday in U.S. District Court for the Northern District of California.”

Police recruits screened for digital dirt on Facebook, etc.:
“Law enforcement agencies are digging deep into the social media accounts of applicants, requesting that candidates sign waivers allowing investigators access to their Facebook, MySpace, YouTube, Twitter and other personal spaces.”

Watchdog Planned for Online Privacy:
“The Obama administration is preparing a stepped-up approach to policing Internet privacy that calls for new laws and the creation of a new position to oversee the effort, according to people familiar with the situation.”

Global Warming / Environment / Energy:

Peaceful resistance: incandescent light bulb stockpilers defy the ban:
“Smith stockpiles incandescent light bulbs. He has been collecting them for three years now, ever since the Energy Independence and Security Act of 2007 passed. The act, which imposed a de-facto ban on incandescent bulbs by 2012, was co-sponsored by Upton. In September, Barton co-authored legislation to turn back that part of the bill.”

White House Notebook: No dead fish means water ok:
“Dead fish tell no tales—unless they’re the goldfish being used to monitor water quality at the conference center where President Barack Obama and other world leaders met Friday to hash out global economic policy.”

Insurance / Gambling:

William Hill to Set Up Shop in New Jersey:
“Believing that New Jersey will soon be the first US state to legalize online sports betting and poker, Gambling911.com has learned that William Hill is already in the process of setting up an office in the state. They will immediately employ 6 individuals. It was not clear at press time whether any of these jobs would go to state citizens or current William Hill associates. ”

Health / Safety:

Dr. Drew on Obamacare: ‘You will see a massive flight of physicians from the field’:
“He couldn’t be more wrong, of course. Good intentions will act as a magic spell and everything will work out just like Obama says. You’ll see. After all, health care is a right. Doctors and nurses must take care of us, by force if necessary. They don’t have the right not to! See, look, it’s in the Constitution.”

Washington state bans alcoholic energy drinks:
“Retailers have a week to clear millions of dollars worth of alcoholic energy drinks from their shelves after state regulators banned them Wednesday, citing the hospitalization of nine dangerously drunk college students last month.”

Economics:

On Fixing Social Security, and the Budget:
“I’d suggest the data might be explained by recourse to the employment-to-population ratio for 18-24 year olds, which is under 50%. I don’t find it surprising that people who are not self-supporting would disproportionately break in favor of higher taxes to support a paternalistic program. But the proportion in the general population which supports tax increases is well under 50%, and unsurprisingly, is lowest among the age groups that are going to pay most of the taxes.”

Reason TV: Is payday lending immoral?:
“This is no easy question. In any other context, the interest rates charged for payday lending would be considered usurious, even loan-sharking — minus the knee-capping, of course. But payday lenders operate in a high-risk market with essentially unsecured loans of such short duration that anything less in terms of interest would put them out of business. That appears to be the intent of the new consumer-protection regulation passed by Congress and hailed by Barack Obama as the most comprehensive protections for consumers ever passed. But without payday lending, will the new regulations wind up hurting the people Obama and Congress brag about protecting? Reason TV’s Nick Gillespie and Ted Balaker look at the implications of the new regulation:”

Free Johnson, the next Ron Paul:
“There are certain shibboleths in presidential politics that even the most forthright candidates feel obliged to repeat, certain topics they feel compelled to avoid. Yet talk to former New Mexico Governor Gary Johnson, the unorthodox 2012 GOP hopeful, and those rules go out the window. Ask about church, and he says he doesn’t go. “Do you believe in Jesus?” I ask. “I believe he lived,” he replies with a smile. Ask about shifts in position, and he owns up to one. “I changed my mind on the death penalty,” he tells me. “Naïvely, I really didn’t think the government made mistakes.” Ask about his voting history, and he volunteers (without regrets) that he cast his first presidential ballot for George McGovern (“because of the war”). Ask about his longstanding support for marijuana legalization, and he recalls the joy of his pot-smoking days. “I never exhaled,” he says. (An avid athlete, Johnson forswore marijuana and alcohol decades ago when he realized they were hurting his ski times and rock-climbing ability.)”

Obama panel probes stimulus waste – at Ritz Carlton:
“Members of a key panel created by the American Recovery and Reinvestment Act, better known as the stimulus bill, have scheduled a meeting on November 22 to consider ways to prevent “fraud, waste, and abuse of Recovery Act funds.” The meeting will be held at the super-luxe Ritz Carlton Hotel in Phoenix, Arizona.”

Limbaugh to Simson/Bowles: Try Again, Guys:
“Essentially this nonstarter of a plan codifies the 22%-of-GDP spending Obama achieved and calls that the new normal, then “cuts” from there. Sometime down the road. maybe.”

Debt Plan Ideas Draw Scorn of Liberals and Tea Party:
“By putting deep spending cuts and substantial tax increases on the table, President Obama’s bipartisan debt-reduction commission has exposed fissures in both parties, underscoring the volatile nature and long odds of any attempt to address the nation’s long-term budget problems.”

Legal:

Unconstitutional to Require Registration and Disclosure for Any Committee Spending Over $200 to Support/ Oppose a Ballot Measure:
“Colorado law requires that any group of two or more persons that has accepted or made contributions or expenditures exceeding $200 to support or oppose a ballot issue must register as an issue committee and report the names and addresses of anyone who contributes $20 or more. Plaintiffs are residents of Parker North, a neighborhood of about 300 homes in an unincorporated part of Douglas County, Colorado, who opposed the annexation of their neighborhood into the Town of Parker. Plaintiffs had raised less than $1,000 in monetary and in-kind contributions for their cause when supporters of annexation challenged the failure of the opponents to register as an issue committee.”

Plea For Supreme Court Review Of Tobacco Pact Passionate, But Likely Futile:
“Lawyers suing to break up the $200 billion tobacco settlement have filed a passionate, if long-shot, petition for Supreme Court review of a case that has been stuffed by every court to consider it including the conservative Fifth Circuit. I’m betting this last-ditch effort won’t work either, but it’s an excellent summation of the argument against an agreement that enriched Philip Morris, plaintiff lawyers and the National Association of Attorneys General at the expense of consumers and competing cigarette companies.”

Tim Pawlenty joins health bill lawsuit:
“Minnesota Gov. Tim Pawlenty on Thursday filed a legal brief seeking to join a multi-state lawsuit challenging the Obama administration’s health care reform law. ”

Labor:

Harry Reid Re-Election Likely Due to SEIU Ballot Fraud?:
“Votes without voters – the notion seems like something from “The Twilight Zone.” Yet this outcome, the result of a mysterious computer glitch, may have helped re-elect Senate Majority Leader Harry Reid over his Republican challenger, Sharron Angle, last week by a 50.2%-44.6% margin. Actually, the “mystery” is very likely the doing of a local of the Service Employees International Union (SEIU), which nationwide provides votes, money and muscle for the Democratic Party. Critics are charging that voting machines throughout Clark County (Las Vegas), where about three-fourths of the state’s population resides, were rigged to place check marks next to Reid’s name before a person even had voted. County officials insist that no tampering has occurred. But the possibility can’t be dismissed out of hand, especially given that one of Reid’s sons is county commission chairman. ”

Transportation/ Land Use:

Pennichuck Agrees To Be Acquired By City of Nashua, NH, For $138M:
“Pennichuck Corp. (PNNW) has agreed to be acquired by the city of Nashua, N.H., for about $138 million, settling a longstanding eminent-domain dispute involving attempts by the city to acquire all or a significant portion of the business that runs Nashua’s water system.”

Hi-speed rail conference planned:
“State Senate President Malcolm Smith along with other local, state and federal officials will participate in the historic High Speed Rail conference of leading international experts who will discuss ways to bring the speedy passenger train to America. Expected guests include U.S. Secretary of Transportation Secretary, Ray LaHood, Deputy Administrator- Federal Railroad Administrator, Karen Rae, Governor David Paterson, Governor Elect Andrew Cuomo, Governor of Pennsylvania Ed Rendell, US Congresswoman Louise Slaughter and US Congressman John Mica.”

Dear Progressives, Wake Up!

by Alex Schibuola on November 11, 2010 · 1 comment

in Politics as Usual, Sanctimony, Zeitgeist

Daniel Hennninger has an excellent op-ed in The Wall Street Journal today. If you haven’t seen it, check it out. He nails the Obama administration’s greater flaws on the head.

The tremendous irony of the progressive movement is that they thrive on “good” causes. They love small business, but they do more than anyone to kill it (e.g., 1099 forms for expenditures meeting or exceeding $600). They care for the poor, but they do more than anyone to keep them poor (e.g., minimum wage). Their remedies for crony capitalism only exacerbate it (e.g., Fannie Mae and Freddie Mac). They profess their love of political freedom, but actively move to subvert it by dismantling economic freedom (e.g., forced purchase of health insurance).

Dear progressives,

Economic freedom is a necessary condition for political freedom. In the entire history of the world, there was never a nation that had political freedom without economic freedom.

Your good intentions are paving the road to serfdom. Or since you don’t like roads these years: Your good intentions are laying the high-speed rail tracks to serfdom. Quit breaking business — the engine of true progress.

In short: Don’t tread on us.

WHO Study on BPA: No Measurable Risks

by Angela Logomasini on November 11, 2010

in Environment, Precaution & Risk

The American Council on Science and Health has a great post on bisphenol A (BPA), noting yet another study that exonerates the chemical, which is used to make hard, clear plastics and resins used in a wide range of valuable applications. Released by the World Health Organization, this study conforms with many others that have found: No significant evidence of any health problems. It also points out that non-food exposures to BPA from such things as receipts are of of “minor relevance,” despite the fact that activists hype these very minor BPA exposures to garner lots of news coverage and generate fear among the public.

But of course government bureaucrats around the world will continue to study and re-study the issue — as long taxpayer dollars continue to flow into government research budgets thanks in good measure to activists hype. We can expect greens to march into statehouses — such as California and Oregon — when they open legislative sessions next year to  push yet more government bans of BPA. At least a half dozen states have already banned some uses such as for baby bottles.

CEI Podcast – November 11, 2010: Taxing New IRS Regulations

by Ryan Young on November 11, 2010

in CEI Projects, Deregulate to Stimulate, Economy, Podcast, Regulation

Have a listen here.

Fellow in Regulatory Studies Ryan Young explains how an IRS proposal for mandatory certification of tax preparers would hurt consumers and taxpayers. It is one more example of how regulation can hurt competition. Large tax preparation firms would benefit at the expense of individuals and smaller firms who can’t afford the added regulatory burden.

Afternoon Links: November 11, 2010

by Nicole Ciandella on November 11, 2010

in Zeitgeist

1. Scientists have released genetically-modified mosquitoes in the Cayman Islands to fight dengue fever.

2. A proposed Alabama rule would prevent certified nurses from providing pain relief to patients.

3. Is The New York Times mocking its own readers?

4. A special-education teacher once named “Teacher of the Year” was suspended for being caught on tape lamenting how difficult it is to fire bad teachers.

5. A Michigan couple is suing the school district for violating the state’s Civil Rights Act. They say their daughter was traumatized when a teacher read aloud from a book about slavery that contained the N-word.

Obama’s Labor Department Again Pushes Forced Unionism

by Russ Brown on November 11, 2010

in Labor, Regulation

You are at work one day and a couple of police vehicles pull up. They go into the administrative office area and the next thing you know, your CEO is escorted out in handcuffs. While the local news crews are capturing the moment permanently, a buzz quickly circulates through the company that the union had him arrested for egregious corporate corruption. The “perp walk” is reserved for hardened criminals in order to give our law enforcement agencies an opportunity to showcase their abilities to protect the public. Always gaining headlines are white-collar arrests where  CEOs get put on display. Think Madoff or Lay. Company leaders beware! Thanks to the Department of Labor (DOL), unions may soon have a new tool to coerce your company into forced unionism — and it may mean you go to jail. The kicker under the new rules proposed by the DOL: this can take place all because of a water-cooler conversation of which the CEO is unaware.

On election day while everyone else was watching the results, the DOL began the process of reinterpreting rules from the Labor Management Disclosure and Reporting Act concerning persuader activity. It seems that the Solis DOL has decided that the current practice is overly broad and wants to narrow the scope. The reinterpretation will require more reporting for companies, their lawyers, and consultants.

The Labor Management Disclosure and Reporting, also known as Landrum-Griffin Act (1959) came as a result of wide spread corruption throughout union leadership ranks. Remember seeing old black-and-white clips of Jimmy Hoffa, Sr. — then president of the Teamsters Union — pleading the Fifth Amendment more than a hundred times during congressional hearings? As a result, Congress passed the above legislation forcing unions to start reporting how they spend the money they receive from member dues. In addition, it also required companies, law firms, and consultants to report their activities and expenditures used to persuade employees to vote against a union in a campaign. The latter is covered under section 203 of the LMDRA, and this is the section that the Solis Department of Labor is moving to reinterpret and/or make rule changes to cause the above scenario to take place.

Here is what Joe Brock, former Teamster organizer and local president, had to say about the proposed rule change:

Armed with this tool, I would use this threat to my fullest capability. Just as I used the Unfair Labor Practice (ULP) charge against employers when they would fire an employee, ANY employee with or without cause, I would be able to use this tool in such a fashion. However, this would be a much more effective deterrent as employers would soon fear any conversation with employees, no matter how innocuous.

It has long been a requirement for consultants and law firms who meet directly with employees during a union campaign for the purpose of influencing their vote against the petitioning union to report that time. This is called “Persuader Activity” and can be generalized as “if an employee hears it, reads it or sees it, it has to be reported per section 203(b) of the LMDRA.”  There are some advice exemptions, however, that may change in this reinterpretation and or rule change as well. The problem with the advice exemption change is this could force law firms to report all advice to all of the firm’s clients no matter if it falls within the campaign that is relative or not. These new requirement simply thumbs its nose at attorney-client privilege. For example if a law firm does labor law for 100 clients but only does persuader work for one. The law firm would be responsible for reporting on all 100 clients.

Under section 203(e) of the LMDRA it clearly states that officers and supervisors of a company do not have to report their persuader activities during a union campaign. This is the change that triggers the above scenario. The change will require companies to report all conversations that management has with employees about the unions. Dave Bego, President of Executive Management Service and author of the book Devil at My Doorstep, states, “If the Department of Labor makes this rule change unions will use it to entrap companies and force neutrality agreements.” Bego is very familiar with neutrality agreements (forced unionism), as the Service Employees International Union (SEIU) laid siege to his company during a three-year corporate campaign trying to coerce his company into a union shop.

Another aspect of this rule change that not many have connected the dots to is the Sarbanes-Oxley Act 2002. As you recall, Sarbanes-Oxley was enacted in the wake of the Enron implosion, when Congress tightened accounting regulations. Where it applies here is that publicly traded companies must report on their 10K filings to the Securities Exchange Commission any potential criminal liabilities. With the statements of the former union organizer, we would speculate that publicly traded companies will be regulated into more liability. Essentially, this makes every company that is non-union responsible to report potential criminal claims based on unfounded allegations.

This move by the DOL is another example of the current administration attempting to make good on their payback promise to the unions — pushing through regulation what they could not through legislation. These particular changes will have adverse consequence the nations businesses, small and large, and the workers they employ.

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