January 2012

A tab “dump” just sounds so… half-hearted. A rally — now that’s designed to discuss.

Here’s some news of the day from angles that make it interesting:

A look ahead: What to expect with regard to housing issues in 2011.

What “blood libel” means (and doesn’t mean).

The nation’s capital is getting its first residential charging station for electric cars!

A sage reminder that the Tucson (domestic) terrorist attack was more about Rep. Giffords than it was about Sarah Palin.

Employment trends in historical context: Hold on to your hats (and definitely don’t quit your day job!).

Groupon: How much is it worth (and how much do investors think it’s worth)?

Have a listen here.

Land-use and Transportation Policy Analyst Marc Scribner talks about his new CEI Issue Analysis, “The Limitations of Public-Private Partnerships.” Marc argues that PPPs are an improvement over the status quo in surface transportation because they introduce at least an element of competition into a sector where there is usually none. But PPPs are harmful in real estate developments because they tend to favor politicians’ preferences over those of consumers.

The U.S. dropped from 8 to 9 on the just-released “Index of Economic Freedom” put out by the Heritage Foundation and the Wall Street Journal. That’s a bit of a downer, considering we used to be #4, back in 1995. The Index ranks nations on 10 measures of openness, rule of law, and competitiveness. Tellingly, all regions except Europe and North America achieved increased levels of economic freedom. In fact, the U.S. didn’t even earn a grade of “free” – which would’ve been a score of 80 or higher. If this were running or swimming, I think this is kind of like coming in maybe third place in the second-fastest heat. Woo.

Why is this important? As the Index authors explain, “economic freedom is key to overall well-being.” That means tangible benefits of living in a freer society, such as higher per capita incomes, better health, education, and security, and more personal freedom.

Seems we slipped a bit in business freedom (score of 91), trade freedom (86.4), government spending (54.6 – there’s a shocker, right?), monetary freedom (77.4). Somehow we squeaked a bit ahead in labor freedom (95.7), freedom from corruption (75), and fiscal freedom (68.3). (CEI has a forthcoming Agenda for Congress that should prove a great blueprint for reform in these regards.)

The good news from a global perspective is that the global average economic freedom score increased a bit, 0.3 percent, to 59.7, with the biggest improvements in developing and emerging economies. And more economies improved than took a dive.

1. California Gov. Jerry Brown is confiscating half of the 96,000 taxpayer-funded cellphones currently owned by state employees.

2. Incipio has created a Gameboy-inspired iPhone case–but they won’t be selling it because of “legal concerns.”

3. Buy your Google 2010 pillow here.

4. The push to ban Kanye West’s newest music video is getting people talking about our current “sexual culture.”

5. GQ lists the best booze currently being made in the U.S.A.

Photo Credit: Flickr Photostream

There is a lot of cynical and dishonest blather right now about the need to dial down America’s political rhetoric because of the shootings in Tucson, even though such rhetoric played no role in the shootings. As the Denver Post‘s David Harsanyi notes, this blather is being used as a pretext by liberals (some of whom are quite nasty) seeking to shut down debate and criticism of abuses by big government.

Lost in the furor over the shootings is the fact that America has a fairly bland political culture that discourages harsh criticism of political leaders: bland by both historical and international standards. My French relatives regularly denounce their country’s leaders in far more heated and pungent terms than Americans like Sarah Palin do. Founding fathers like Thomas Jefferson and John Adams were attacked far more vitriolically in the media than recent presidents like Obama and Bush were, as Reason magazine points out here and here. Recent attempts to blame the shootings in Arizona on the political climate are ignorant of both America’s own history and the world beyond America’s borders.

As reporter Robert Barnes noted days ago in the Washington Post, there is “no evidence that the suspect in Saturday’s shootings that left six dead and Giffords and 13 others wounded was influenced by inflammatory political rhetoric, or that any voices that motivated him were outside his own head.” But Congressman Bob Brady (D-Pa.) responded by introducing a bill to “shut” harsh rhetoric aimed at politicians “down.” And the liberal establishment, speaking through the editorial board of the New York Times, recently called on Arizona to “quiet” the harsh “voices” who allegedly promote “division” by criticizing liberal constituencies like illegal immigrants, “welfare recipients,” and “bureaucrats.” The Times insinuated that “opponents of health care reform” had helped create a political climate that led to the shootings.

Chilling sharp criticism of political leaders is a bad idea. It will make it even harder to get entrenched politicians to address problems like America’s skyrocketing budget deficit, which has mushroomed as result of feel-good “bipartisan” policies like the recent deal between Obama and Congressional leaders (which will add $900 billion to the national debt to perpetuate welfare-expansions in the failed stimulus package, and tax-cuts that the country can’t afford), the Iraq War, the failed $150 billion Bush-Pelosi-Reid stimulus rebates, and the costly No-Child-Left-Behind Law backed by Ted Kennedy and George Bush (Bush increased education spending by 58% even as wasteful education spending exploded).

Chilling criticism of Obamacare is also a bad idea, given that even liberal commentators admit that it is a “disaster” that has not lived up to its promises, and given how it has increased state budget deficits, healthcare costs, and red-tape. And it has been criticized by law professors as violating Constitutional limits on Congress’s power under the Commerce Clause and Spending Clause.

The intellectual climate is already so stiflingly conformist in liberal circles that it is considered a faux pas or even racist to criticize Obama at some Washington-area dinner parties, no matter how factually based the criticism. The closing of the liberal mind is manifested in books such as I Can’t Believe I’m Sitting Next to a Republican. (Vitriolic and violent rhetoric from the left in recent years has made any controversy over Sarah Palin look like a tempest in a teapot: Palin’s use of martial metaphors in campaign rhetoric was completely commonplace and unobjectionable, as Slate’s Jack Shafer and others have noted, and the word “campaign” is itself of martial origin.)

Making politics blander will not do anything to prevent future shootings. People who threaten to kill government officials are seldom influenced by the tone of political rhetoric. I was once a law clerk for a federal judge (a moderate Republican much like John Roll, the widely respected federal judge who was slain in Arizona). My judge had received many death threats over the years (and his family later received death threats after his funeral). Accordingly we, his law clerks, were vigilant to make sure that six people who had threatened the judge not be allowed into his chambers. But none of these death threats were tied to politics, much less to heated political rhetoric or Talk Radio.

Most of the judges in this country who are slain are killed by people unhappy over outcomes in non-publicized cases, such as divorce cases, or child-custody disputes, or run-of-the-mill criminal cases. Political rhetoric plays no role in their death whatsoever. Similarly, would-be assassins like President Reagan’s assailant, John Hinckley, often have bizarre motives completely unrelated to politics.

On the other hand, silencing dissenters will prevent them from harmlessly letting off steam and thus increase the likelihood that a few of them will resort to violence. As Supreme Court Justice Louis Brandeis, who was once venerated by liberals, observed in Whitney v. California, “repression breeds hate,” and “hate menaces stable government”; “the path of safety lies in the opportunity to discuss freely supposed grievances and proposed remedies.”

Did you know that some states require companies to deliver phone books to state residents?

Never mind the fact that most people don’t use phone books for their intended purpose at all. In 2008, less than 10 percent of phone book owners actually used the book to find a phone number or locate a business.

More importantly, in this era of failing (or flailing) states, why are states imposing positive requirements on businesses and individuals that choose to root themselves in those states?

Verizon publishes most of the phone books making their way around the U.S. While local blog “We Love DC” echoes every contract-bound Verizon customer’s snark that she’s “not in love with the idea that Verizon should ever have to stop an obligation,” it quickly concedes that “it seems like this might be a good idea whose time has passed.”

Last year Verizon tried to beg off of its obligation to keep running the phone book racket in more than a dozen states. Verizon met with Maryland state commissioners on Dec. 8, claiming that “evolving customer preferences” have made physical phone books — or at least the white pages — obsolete.

Maryland denied Verizon’s request only two days later. Evidently the state required little debate to determine that residents should be able to access one another without having to resort to the internets, and that Verizon should continue to provide the means.

Some states do acknowledge that customers’ preferences are evolving. Seattle has been pushing legislation since sumer that would ban phone book distribution in the city unless people specifically request a hard copy. White pages have been eliminated from some states’ phone books; in Pennsylvania, New York,?New Jersey, Delaware, and Florida, customers only receive the yellow pages.

Verizon — the largest landline provider, along with AT&T — illustrates customers’ evolving preferences with a disconnection rate at about 10 percent per year for landlines. Callers prefer to rely only on cell phones. Yet white pages list don’t list cell phone numbers at all; they include only landlines.

It’s easy to find information on phone books’ ecological impact and stats, but the question remains: Why do states want to stay involved?

The decision whether or not to publish phone books should fall to the businesses. The yellow pages industry is working on a nationwide opt-out system, premised on environmentalism and the idea that Yellow Book wants its pages “to be welcome in your home.”

Many states have already established (or discussed) an opt-in method. This new approach merely grants white page publishers relief from state requirements to distribute white pages (full list here). The Washington Post quotes companies’ report that in the opt-in states, only about 2 percent of customers are requesting phone books. Further:

In the 12 states and the District where Verizon is the dominant carrier, savings could top 17,000 tons of paper each year. In Virginia, the company estimated it could save 1,640 tons of paper annually.

Some groups say the move is long overdue.

Banthephonebook.org has created a petition drive and a Facebook page to encourage opt-in programs as it looks to save the 5 million trees it says are used each year to create the white pages and the $17 million spent each year to have the books recycled.

The Product Stewardship Institute, a Boston-based nonprofit group that tries to reduce the environmental impact of consumer products, estimates that phone books contribute 660,000 tons to the water stream each year. That’s equal to the weight of 58,000 school buses.

Printing yellow pages is highly profitable. Printing white pages is costly and obsolete.

Yet state governments are determined to stay involved. States still want phone companies to distribute white pages, even at a loss, even though these books sit in landfills to rot.

Why?

Pro-smart-growth, “green” Los Angeles Mayor Antonio Villaraigosa is upset with Governor Jerry Brown’s remarkably sensible decision to shut down the state’s 425 redevelopment agencies, including L.A.’s Community Redevelopment Agency. “Los Angeles is prepared to shoulder its fair share of the responsibility, but any scenario that would completely eliminate the Redevelopment Zones and State Enterprise Zones is a non-starter,” said Villaraigosa. Here’s to hoping that he’s wrong, and that Brown’s attack on these destructive money pits is sustained!

In terms of promoting harmful and authoritarian land-use regimes, Villaraigosa is one of the worst among American mayors. He hired Gail Goldberg in 2006, a notorious San Diego smart-growther, to head up the city’s planning department. Before Goldberg resigned last year, she had spent much of her time fretting about L.A.’s supposed lack of density and pushing the mayor’s economically dangerous multifamily rental housing agenda. Her it-takes-a-City-of-Villages approach proved to be as politically unpopular as it was nonsensical. Goldberg, like many urban planners, instinctually equates real estate development — or worse, urban form — with economic development.

As land-use and transportation policy scholar (and former long-time L.A.-resident and transportation commissioner) Wendell Cox has noted time and time again, Los Angeles does not have a density problem – assuming low-density development is a problem to begin with. It does, however, have an ineffectual, burdensome government bureaucracy problem. Instead of focusing on “Redevelopment Zones,” “State Enterprise Zones,” and TIF districts, Villaraigosa should look at cutting the city’s miles of red tape if he wishes to promote economic prosperity and job growth. Sadly, Villaraigosa is likely too beholden to his apparently ineffable ideological biases to grasp reality and take seriously the problems actually facing Los Angeles.

Image credit: mateo22′s flickr photostream.

Via the New York Times, an article with empirical evidence that regulatory incentives encourage cabs to disappear around 5pm, just when they are needed most.

The article places blame on the fact that most cabs are leased by larger companies and typically operate 24 hours a day via employees trading off 12 hour shifts, and notes that the regulatory commission has attempted to fix the problem by raising fares during rush hour. The real problem, of course, is that New York City strictly limits the number of cabs allowed in the city and requires that they all be uniformly painted yellow.

Taxi medallions in New York are strictly limited (a medallion is required by law to operate a cab) to the extent that they sell for over $700,000. This enormous up-front cost makes it more difficult for individuals to attain cab licenses, and more likely for them to end up in the hands of large companies with more resources — making long, inflexible shifts more likely as larger companies with increased resources capture rents and encourage employees to demand longer shifts to help earn a sufficient wage. In addition, were medallions available at a cheaper price, it might be easier to for cabs to work part-time, covering only periods of high demand such as evening rush-hour.

The city’s Taxi Czar takes a surprisingly prudent stance:

The Bloomberg administration, which prides itself on data-driven policy, is still grappling with how to handle the discovery. Mr. Yassky said that, so far, he had no plans to ask for any changes to the industry’s schedule, although his team is still considering its options.

Mr. Yassky said the city “should be circumspect about substituting its judgment for the judgment of business people.” But he acknowledged that any attempt at regulation would have to take into account the forces that have kept the practice in place for years.

Though it still seems very likely that these regulatory bodies are directly or indirectly setting up the industry structure that they now view as troubling (and their likely response would be one of increased regulation, rather than de-regulation).

Image credit: lukegeorgeson’s flickr photostream.

The AFL-CIO has filed a formal complaint against Roquette for the ongoing lockout of union employees. The union claims that Roquette refused their terms of negotiation and too quickly replaced union-member workers. Essentially, they believe they are protecting the rights of employees. Union leaders believe companies are obligated to employ their members and at whatever price union officials demand. Otherwise, litigation and harassment will ensue. However, unions consistently infringe on the rights of non-union employees and companies, without recognizing the hypocrisy.

To highlight the double standard unions expect in recent news, SEIU agreed in settlement with the NLRB to no longer “restrain or coerce”employees “in the exercise of the rights guaranteed.” This settlement stems from a union demonstration in which SEIU supporters and organizers attempted to prevent non-union supporters from getting to work. Unions expect their employees to have guaranteed employment, but non-union employees’ rights to work are not a concern.

Take the example of the Association of Flight Attendants (AFA) numerous attempts to unionize Delta employees. For the past 10 years, Delta employees have voted against unionizing. This is not convincing evidence for AFA. They have filed charges against Delta management for interfering with the elections, pushing for a new vote. Again, the voices of the majority of employees against unionization does not faze them. Union action illuminates that employee rights are not their priority. Collecting member dues are their sole objective. Talk of “rights” is merely window dressing.

Tech:

Verizon iPhone Could Double U.S. Mobile Games Industry This Year:
“Earlier today, Verizon and Apple finally confirmed what everyone knew was coming: iPhone will soon launch on the Verizon network. The hugely popular iPhone has been a hit with gamers and game developers on the App Store, and by bringing the phone to the largest carrier in the U.S., the installed base suddenly could get much larger. ”

Are the Feds spying on your Facebook account?:
“The Tunisian government is hacking its own citizens’ Facebook pages. Will our government do the same?”

Google to drop support for H.264 in Chrome:
“Google just made a bold move in the HTML5 video tag battle: even though H.264 is widely used and WebM is not, the search giant has announced it will drop support for the former in Chrome. The company has not done so yet, but it has promised it will in the next couple of months. Google wants to give content publishers and developers using the HTML5 video tag an opportunity to make any necessary changes to their websites”

Global Warming / Environment / Energy:

Snow In 49 States Right Now (MAP):
“A map of snowfall in the United States is revealing right now: 49 states have snow on this 1/11/11 and only one does not.”

The plot thickens: BBC Hits UK Govt with Freedom of Information Demand in Cold Winter Forecast Fiasco:
“The BBC serves Freedom of Information request (FOIA) on UK Government over weather forecast failures secrecy in worst winter for 100 years.”

Insurance / Gambling:

New Jersey Launches Online Gambling Website:
“Times they are a changing in New Jersey and to celebrate their forward thinking and the upcoming changes in their gambling laws, a new website has been developed to keep citizens abreast of the news in their State’s gaming sector. The new website is called “njgamingnews.com and it will cover internet gaming, Atlantic City Casino market and the state’s horse racing industry.”

Health / Safety:

How the vaccine crisis was meant to make money:
“John Walker-Smith, professor of paediatric gastroenterology, hurried to Malcolm ward on the sixth floor of the Royal Free Hospital, London, with what any doctor would think was bad news. An 8 year old boy, admitted for five days of investigations, had been provisionally diagnosed with Crohn’s disease. But when the child’s mother—here anonymised as “Mrs 2”—years afterwards recounted what happened, she seemed pleased to have received information she expected and made it sound as if Walker Smith was glad too.”

Economics:

California’s Brown proposes “painful” budget cuts:
“Brown, a 72-year-old Democrat who last week began his third term as governor 28 years after wrapping up his second term, faces a tough campaign to win approval of his budget plan from the Golden State’s fractious legislature.”

Legal:

The worst sheriff in America:
“In the ignominious tradition of camera-hogging police chief Charles Moose (remember him?), Pima County (AZ) Sheriff Clarence Dupnik has become America’s new worst celebrity lawman. While he cuddles up to MSNBC’s entire Tea Party-bashing line-up, more facts about Tucson massacre suspect Jared Loughner’s encounters with law enforcement are coming out. We now learn: “The police were sent to the home where Jared L. Loughner lived with his family on more than one occasion before the attack here on Saturday that left a congresswoman fighting for her life and six others dead, the Pima County Sheriff’s Department said on Tuesday…The news of police involvement with the Loughners suggests that county sheriff’s deputies were at least familiar with the family, even if the reason for their visits was unclear as of Tuesday night.””

Talk radio under siege:
“As I reported on the main site today, conservative media figures’ fears that the left will use Tucson to clamp down on them are not entirely unfounded.”

No talk radio for Chafee, and on-duty state workers, too:
“Chafee doesn’t plan to spend his own time on talk radio, and he intends to ban state employees from spending their state work time talking on talk radio, which was Carcieri’s favorite medium and an integral part of his communications operation.”

Labor:

Two global labor groups and AFL-CIO formal complaint against Roquette:
“As the lockout of 240 Roquette America, Inc. union employees nears the four-month mark, two global labor federations and the AFL-CIO have lodged a formal complaint on union workers’ behalf with the Organization for Economic Cooperation and Development and its U.S. Point of Contact in Washington, D.C.”

Transportation/ Land Use:

State official: Taxpayers won’t be on hook for high-speed rail:
“The private consortium that wins the right to design, build, operate and maintain the Tampa-Orlando route would be required to assume financial responsibility through its contract with the state, Florida Rail Enterprise executive director Kevin Thibault told a state Senate committee Tuesday.”

Caltrain rethinks high-speed rail relationship:
“Bob Doty, director of the Peninsula Rail Program, has traded in his Caltrain ticket for a position with engineering firm HNTB.”