January 2012

1. Two Mississippi sisters in prison for armed robbery are being released on the condition that the younger sister donate her kidney to the older sister.

2. An NYC directive that would have forced stores to display graphic anti-smoking posters was shot down yesterday by a federal judge.

3. Montreal artist Isabelle Hayeur wanted to draw attention to a rundown Vancouver neighborhood, so she set up film projections to make an abandoned building look like it was on fire.

4. Europe is banning hundreds of herbal medicinal products.

5. Gene Healy lists the worst op-eds of 2010.

Photo Credit: Flickr Photostream

For those of you on the East Coast and in parts of Europe, I hope you weren’t too inconvenienced by the winter weather. We in D.C. were lucky that after we were warned about an eight-inch blizzard (still nothing compared to the two feet we had early this year that paralyzed the city for a week), we got off with a light dusting.

In what should my last blog post this year (though I could always have one tomorrow — ha ha!), I wanted to share with you a piece I had a couple weeks ago in The Wall Street Journal, but this time on the Leisure & Arts page on the journey of a fairly common expression and the song that gave it birth.

First, though, let me give a brief update from my last blog post on my work on the Federal Reserve’s debit card interchange fee price control proposal put out just before Christmas – or what I call “the Fed’s giant gift to big retailers and lump of coal for consumers.” I wrote a piece that went into more detail on the Fed rule for Andrew Breitbart’s BigGovernment.com, and that article garnered more than 100 comments. Also, the American Family Association’s OneNewsNow quoted me extensively in an article that does a very good job of explaining how the Fed’s price caps on debit card processing for retailers would shift costs to consumers in terms of loss of free checking (already happening in anticipation of this rule), reduced card rewards, and other new fees.  And I recommend an op-ed in The Washington Times yesterday by Professor Richard Epstein explaining why this rule and the Durbin Amendment to Dodd-Frank that it derives from – this country’s first price control scheme to Epstein’s knowledge that sets below-cost prices by design — runs afoul of Supreme Court precedent on 5th Amendment property rights to a return on capital invested.

I’ll be writing much more on this in the weeks to come. Some readers may have also seen an e-mail I sent on this subject last week, in which I said that when some of the most profitable retail chains like Walgreens complain about paying less than two cents on the dollar for the benefits that debit and credit cards bring to them in terms of increased sales and fraud protection, “I have to say, ‘Cry Me a River!”

This actually provides a great segue to my Wall Street Journal arts piece, which is on the phrase “Cry Me a River” and the resurgence of the 1955 song of that title that has inspired and may have invented the phrase’s use.  Some of you know that I reviewed and covered music when I was a staff writer at The Washington Times and Investor’s Business Daily. I still occasionally write articles on music.

But this article was more than that, and I was able write a piece on the origin of a phrase in the English language in the vein of the “On Language” column I so admired by the late William Safire in The New York Times Magazine.

It turns out I’m not the only one who uses the phrase “Cry Me a River” to get a point across. It’s a great all-purpose phrase to express your belief that someone’s complaint is trivial, or that he or she brought one his own misfortune. With the help of able assistants named “Google” and “Google News,” I was able to find the phrase’s widespread use on targets from President Obama to Glenn Beck to Lindsay Lohan to Tiger Woods.

I was also very fortunate to talk about the beauty of the original song — about a jilted lover who gets gratification in an ex’s regret — in telephone interviews with the wonderful pop-and-standards singer Michael Bublé, who uses the standard as an elaborate opening song to his concerts, and the song’s composer Arthur Hamilton. Hamilton wrote “Cry Me a River” as a young songwriter some 55 years ago, and has met many of the its performers from original singer Julie London (his former girlfriend) to Bublé (whose recording session of the song he attended). Mr. Hamilton told me he never heard the phrase before he came up with it for the song, and was at first worried that listeners would confuse the phrase with the Crimea.

Two other points in anticipation of comments: Justin Timberlake’s 2002 hit with the title “Cry Me a River” wasn’t a cover of the standard; it was just an original song with the same title. Don’t know how many Justin Timberlake fans there are among OpenMarket readers (and he actually did a good acting job in The Social Network), but just wanted to clear up a potential point of confusion.

Also, my apologies in advance for neglecting to cite Joe Cocker’s early ’70s acid rock version of “Cry Me a River” that hit the pop charts (and which you can see a live performance of here on YouTube). Space in the piece was limited (unlike in my rambling blog posts), and I thought Aerosmith would provide a better example of the diversity of artists who covered the song. But given the comments of Journal readers to the story, I can see my omission of him was a mistake.

Here again is the WSJ “Cry Me a River” piece. Your comments on any subject to me are always welcome (here or at my email jberlau@cei.org) , and have a very happy New Year and great 2011!

Photo Credit: Flickr Photostream

Union Snow Cleanup

by Lee Doren on December 30, 2010

in Video

[youtube:http://www.youtube.com/watch?v=WOaYO1JGf5A 285 234]

Public anger over New York City’s botched snow plowing effort this week has turned to the city’s sanitation workers union — for good reason. The New York Post reports:

Selfish Sanitation Department bosses from the snow-slammed outer boroughs ordered their drivers to snarl the blizzard cleanup to protest budget cuts — a disastrous move that turned streets into a minefield for emergency-services vehicles, The Post has learned.

Miles of roads stretching from as north as Whitestone, Queens, to the south shore of Staten Island still remained treacherously unplowed last night because of the shameless job action, several sources and a city lawmaker said, which was over a raft of demotions, attrition and budget cuts.

“They sent a message to the rest of the city that these particular labor issues are more important,” said City Councilman Dan Halloran (R-Queens), who was visited yesterday by a group of guilt-ridden sanitation workers who confessed the shameless plot.

Halloran said he met with three plow workers from the Sanitation Department — and two Department of Transportation supervisors who were on loan — at his office after he was flooded with irate calls from constituents.

The snitches “didn’t want to be identified because they were afraid of retaliation,” Halloran said. “They were told [by supervisors] to take off routes [and] not do the plowing of some of the major arteries in a timely manner. They were told to make the mayor pay for the layoffs, the reductions in rank for the supervisors, shrinking the rolls of the rank-and-file.”

New York’s Strongest used a variety of tactics to drag out the plowing process — and pad overtime checks — which included keeping plows slightly higher than the roadways and skipping over streets along their routes, the sources said.

The snow-removal snitches said they were told to keep their plows off most streets and to wait for orders before attacking the accumulating piles of snow.

The costs that government employee unions impose on taxpayers are bad enough. But holding a city hostage during an emergency should be truly beyond the pale. In this case, people died because emergency vehicles couldn’t get through the unplowed streets. (It’s worth noting that, while The Post is to be commended for reporting this story, the workers who revealed the union shenanigans are whistle blowers, who do not deserve the ugly “snitch” epithet.)

New York Mayor Michael Bloomberg hasn’t shied away from taking on the teachers unions that have brought the city’s public schools to dysfunction. Now the sanitation union’s bosses have issued him a challenge. He must meet that challenge if he wants to put a good light on his legacy.

For more on public sector unions, see here and here.

Paris is looking to potentially ban “gas-guzzling” vehicles from city limits. The proposal, still in its infancy, lacks important details but nonetheless appears to be a senseless attack on politically unpopular vehicles that will have an insignificant effect on congestion or the environment. France is known for having high fuel taxes, but an outright ban seems to be unprecedented. This link estimates SUV ownership in France at about 4.5 percent, much lower than the 40 percent (including light trucks) in the  United States.

A quote from a Parisian official:

“I’m sorry,” Baupin said on RTL Radio, “but having a sport utility vehicle in a city makes no sense.”

When asked what owners of SUVs should do, he said, “sell it and buy a vehicle that’s compatible with city life.”

Wow. There are a number of reasons one might want to own an SUV and live in a city. Aesthetically, they might be easier on the eyes compared to the smaller, more compact European style vehicles.  There is ample evidence that they are much more likely to keep you alive in an accident. There is space to haul things around. If one ever wanted to leave Paris (a complete hypothetical, I’m sure), France as a whole sees a sufficient amount of snow that an SUV would come in handy in the event of a snowstorm.

Changing the rules in the middle of the game is incredibly harmful to citizens who own SUVs. What does Monsieur Baupin think will happen to the SUV market in Paris given a ban? Individuals would get nowhere near the historic market value for their vehicle given the implementation of a ban. And don’t forget, purchasing or selling a car involves significant transaction costs — dealing with regulations, fees, time, etc.

These types of policies have been tried before in Paris. The net result was a decrease in automobile usage, decreased usage of public transportation (via slower buses),  and an estimated loss of €177 million because of slower goods-delivery.

Today is the last working day of 2010 which means the last edition of the 2010 Federal Register came out this morning. The final unadjusted page count is 82,589 pages. That’s the third-highest ever.

Page counts are typically highest in years when power changes hands. This year was no exception. The two other highest unadjusted page counts occurred when Carter handed off to Reagan, and when Clinton handed off to Bush. The Bush-Obama hand-off featured the largest-ever adjusted page count, 79,435.

This time, the spike happened with only the House changing parties. The next few years will tell us a lot. 2010′s high page count may have been a combination of this year’s ambitious legislation plus a midnight rush to get the White House’s regulatory wish list in place before the other team can block it.

Or, as in the past, it could be that we have reached a new, permanent plateau of frenzied federal activity.

I’m hoping for the former. But the Republicans in Congress are no friends of limited government, so one never knows. They will reliably oppose anything the other team comes up with. But as the Bush years showed, they’ll also vote for the exact same policies so long as it’s their team that’s proposing them. This is not a recipe for fiscal or regulatory health.

Tech:

Apple Sued Over Apps Privacy Issues; Google May Be Next:
“Two separate groups of iPhone and iPad users have sued Apple alleging that certain software applications were passing personal user information to third-party advertisers without consent.”

Seventh Circuit: Website operator does not have to obey injunction in defamation case:

“Plaintiffs got an injunction that ordered defendants to remove defamatory content from the web that defendants had posted. When the defendants did not comply with the injunction, plaintiffs asked the court to enforce the injunction against Ripoffreport.com, the website on which some of the defamatory content appeared.”

Amazon in Book Banning Business:
“On December 9, 2010, I was contacted by CreateSpace (Amazon’s Print on Demand service) who publishes my print books. They informed me that my title, Back to the Garden, had been removed for violating their “content guidelines.” When I consulted their guidelines I found them so vague as to be useless—were they saying my content was illegal? Public domain? Stolen? Offensive? (All of these were on the list). When I inquired as to the specifics of the violation, they were not forthcoming, and sent a form letter response stating that Amazon “may, in its sole discretion, at any time, refuse to list or distribute any content that it deems inappropriate.””

Global Warming / Environment / Energy:

Green Scotland Relies on French Nuclear Power During Deep Freeze:
“Scotland’s wind farms froze up in the record freeze this month forcing the government to rely on power from French nuclear plants.”

Texas, EPA fight over regulations grows fierce:
“A longstanding tit-for-tat between Texas and the U.S. Environmental Protection Agency over how to regulate pollution has grown fierce in recent months, leaving industry frustrated and allowing some plants and refineries to spew more toxic waste into the air, streams and lakes than what is federally acceptable.”

Insurance / Gambling:

Bentley: Attorney general to control task illegal gambling task force:
“Gov.-elect Robert Bentley said Wednesday that he would hand over the Governor’s Task Force on Illegal Gambling to Attorney General-Elect Luther Strange when they both take office on Jan. 17.”

Stumbo says no gambling legislation this session:
“House Speaker Greg Stumbo said Wednesday that the legislature is unlikely to tackle any gambling related legislation this session, which begins next week.”

Health / Safety:

Tales of Socialized Medicine: Man’s Penis Amputated following Misdiagnosis:
“It remains unclear if the man would have been able to keep his penis had the cancer been detected sooner.”

Economics:

Stocks point slightly lower ahead of economic data:
“Stocks are looking ready to start the day slightly lower as traders seem nervous ahead of the year’s last set of economic data.”

Legal:

Feds probe Christine O’Donnell’s Campaign Spending:

“Federal authorities have opened a criminal investigation of Delaware Republican Christine O’Donnell to determine if the former Senate candidate broke the law by using campaign money to pay personal expenses, according to a person with knowledge of the investigation.”

Rig Owner Refuses To Honor Oil Spill Subpoenas:
“The owner of the rig that exploded in the Gulf of Mexico is refusing to honor subpoenas from a federal board that has challenged the company’s involvement in monitoring the testing of a key piece of equipment that failed to stop the oil spill disaster.”

Ohio Court Rules Tobacco Settlement Funds Fair Game:
“Ohio is calling it a major victory for residents while anti-smoking proponents are burned up over a court ruling that said it was okay for the state to spend tobacco settlement funds however they choose. On Wednesday, the Ohio Supreme Court ruled that, according to the Columbus Dispatch, state officials “acted legally when they nearly emptied a fund intended for anti-smoking programs and earmarked the money for unrelated health-care purposes such as expanding Medicaid coverage.””

Labor:

Sampling of Editorials from NY State:
“When Assembly Speaker Sheldon Silver and the heads of New York State United Teachers, 1199 SEIU and the Civil Service Employees Association come out against a tax cap, you’ve got to consider the possibility that the cap is a good idea.”

Transportation/ Land Use:

Vos upset at Democrats over bumper sticker:
“Robin Vos, a Racine Republican, is taking offense at a Democratic bumper sticker he claims shows a train slamming into Gov.-elect Scott Walker’s head in a bloody crash. He thinks Democrats should stop offering it.”

Retired professor Robert Weissberg has a fascinating article at The American Thinker called “The College Diploma Fraud.”  It describes how worthless many college degrees have become in an age of “credential-mania” (President Obama wants to double education spending to increase the number of college graduates by an additional 5 million, although there is already such a surplus of college graduates that many of them now have low-paying, unskilled jobs.)

It also chronicles how college administrators pressure professors not to fail even students who cheat or are grossly incompetent, in order to artificially inflate attendance and graduation rates: they absolve even “blatant cheating,” allow “failing grades to be expunged” even “after a final exam,” and create “special, unadvertised minority-only courses” that give failing students “As and Bs to eradicate Ds and Fs elsewhere.”

Michael Snyder has an article called “16 Shocking Facts About Student Debt and the Great College Education Scam.” As he notes, the Obama administration “has encouraged students to load up on college loans,” even though students can end up with crippling debt and a lousy job, and even though “our economy is facing the biggest student loan debt bubble in the history of the world.”

At Huffington Post, an article discusses the subject of suicide and student loan debt, and a student loan debtor who confesses, “I think about jumping out the 27th floor window of my office building” because of huge law-school debts that never led to a decent job, much less a job as a lawyer. This is not an anomaly: Kelli Space graduated with $200,000 in student loans for a sociology degree and a low-paying job.

A chart from the international agency OECD shows that education spending is higher per pupil in the U.S. than any other country in the world except for one, at the K-12 level. Lou Minatti notes an irony about blind support for exploding education spending:

We spend more money on education than any other country on the planet. Curiously, the same people who say that education spending is sacrosanct and cuts are bad also complain about the high cost of medical care and say that they’re spending a lot less money in places like France, with better results. So why are cuts in education spending bad, but cuts in medical spending good? Someone clear this up for me.

There is actually a strong argument for trimming America’s bloated education spending, as a recent commentary in the The Chronicle of Higher Education notes.

The college debt bubble dwarfs the recent housing bubble in terms of its price-to-earning ratio growth.  One hundred colleges now charge $50,000 or more a year, compared to just 5 in 2008-09. College tuition has surged along with federal financial-aid spending, which effectively rewards colleges for increasing tuition.

I earlier discussed the uselessness of elite law school educations (based on my experiences at Harvard).  (I once worked at the Education Department.)

Image credit: Honeywell-Nobel Initiative’s flickr photostream.

1. The FDNY is reinstating their famous “beefcake” calendar, but instead of donating proceeds to charity they’ll use the money to buy new equipment for the cash-strapped department.

2. It’s finally happened: someone has designed an iPhone-controlled mini-fridge/beer-cannon.

3. Disney World now manages long lines with an “underground nerve center.”

4. This 75-year-old ex-teacher has spent 13 years in a New York “rubber room” and now makes $97,000 a year. In 1997 he was charged with sexually molesting a six-year-old student.

5. Want to be able to tell where someone grew up just by listening to how they pronounce their vowels? Consult the map of North American English Dialects.

Photo Credit: Flickr Photostream

Believe it or not, insurance companies do not want to overcharge you. They want to charge just the right amount — as little as possible — just enough to cover any potential claims you are likely to file. Insurers want to charge the least they possibly can without losing money so that they can compete with other insurance companies for your business. To a large degree, what makes an insurance company successful is its ability to accurately predict your future accidents, illness, and catastrophes.

The more they know about their customers’ risk factors, the less they can charge. If an insurer knows little or nothing about the risks of his customer, then he must “pad” the premium to account for all possible catastrophes that the insurance company will have to pay for. On the other hand, if an insurer knows with relative certainty the likelihood of his customer getting into a car accident in the next year, he can charge just what is needed to cover the predicted expense.

This is clearly evident in Allstate’s new driver monitoring program, Drive Wise, which tracks the average speed and frequency of short-breaking of drivers. Customers who enroll in the voluntary program receive an immediate 10 percent discount on their policy, regardless of what the result of the monitoring shows. How can Allstate afford to do this? The reality is that even though insurers can hypothesize with fair accuracy about driving habits based on the information a policy holder provides about his or her life, this monitoring program will increase the accuracy of such predictions a hundred-fold.  The increased predictability of a customer’s accident rate means that insurers can cut back on some of the padding and charge less. For good drivers enrolled in the program, their discounts could be as much as 30 percent.

Drivers and policy makers should embrace any method insurers utilize to increase the accuracy of their rate setting. Whether it is age, gender, education status, geographic location, credit scores, or a digital monitor, anything that helps insurance companies accurately predict risk will result in greater savings and more just rates for all.