January 2012

These are not good economic times for labor unions, whose membership continues a long decline in the private sector. However, they remain a potent force in politics, providing considerable funding and on-the-ground help (canvassing, get-out-the vote drives) for Democratic politicians.

Thus, it makes sense for organized labor supporters to argue for the value of unions in terms of politics and policy goals. Mother Jones blogger Kevin Drum takes this approach, maintaining that unions play a vital role in pushing government to promote full employment.

[T]hat’s the point of a strong labor union: it forces the government to fight for full employment. It fights for lots of other stuff too, and that’s the whole virtue of organized labor. It’s true that they also produce a modest wage premium for their own members, but if that’s all they did then I wouldn’t care much about them and neither would most other liberals.

Unions have lots of pathologies: they can get entranced by implementing insane work rules, they can get co-opted by other political actors, and they can end up fighting progress on social issues, just to name a few. But they fight for economic egalitarianism, and they’re the only institution in history that’s ever done that successfully on a sustained basis. That’s what makes them so indispensable to liberalism and that’s what makes them the sworn enemies of conservatism.

Drum is right that unions, by fighting for redistributionist policies (which he terms “economic egalitarianism”) make up a key constituency in the overall left-liberal coalition — nothing controversial about that. However, his point about unions pushing for “full employment” seems forced. Has anyone ever heard of somebody openly promoting less employment?

More employment (with full employment its logical conclusion) is the domestic policy equivalent of a strong defense — everybody’s for it. Of course, how to employ more people is contentious, so much so that people of different ideological persuasions will argue for diametrically opposite policies to achieve it, with plenty of room for honest disagreement and debate.

More importantly, it’s worth considering what kind of employment unions want. Unions have a built-in incentive to sign up more dues-paying members. Therefore, they have an incentive to promote employment in industries and sectors where they have a greater hope of organizing workers.

In the marketplace, this gives unions very good reason to work to skew the playing field to favor unionized companies over nonunion ones. In politics, it gives unions an incentive to promote more government employment, because that is where their best organizing prospects lie. Taken together, that incentive structure — and the policies it promotes — indeed “makes them the sworn enemies of conservatism,” with “conservatism” taken to mean open markets and restrain on government

For more on labor, see here and here.

Last night’s Surprise Snowpocalypse froze traffic in place for upwards of 13 hours.

Check out this visual above for where the traffic accumulated, from Greater Greater Washington, illustrating the divide between urban and suburban commutes.

I wrote at the Examiner:

Check out how the worst congestion — the deep red lines — is in the western and southwestern portion of the District, where the suburbs sprawl the most. In the northeast part of the map, into tighter urban Silver Spring, there’s congestion, but nothing as frightening as that bloodshot sprawl into Virginia.

People abandoned their cars in the midst of their 12-, 13-hour commutes home. Even buses were stopped in the slush, while Metro trains powered (slowly) through:

In the District, at the intersection of Connecticut Avenue and Albemarle Street NW in Van Ness, buses and cars were tangled in every direction, blocking the intersection for hours. One bus blocked three lanes of Connecticut Avenue for more than two hours. A pair of Metrobus drivers – who declined to identify themselves because they said they were not authorized to speak to reporters – called it the worst travel conditions they have seen in the city during their combined 23 years behind the wheel.

Today buses are crawling along District snow emergency routes, while drivers who abandoned their cars scramble to retrieve them from tow zones. Though there was no snow emergency declared last night, all of greater D.C. jumped to emergency measures.

D.C. Fire and Emergency Medical Services tweeted that their emergency call volume in the twelve hours under snow nearly quadrupled the volume of an average day:

@ 12 hour period (4p-4a) DC F&EMS handled over 700 calls for service – typically in 24 hr we will handle about 450 calls

Drive safely, kids. If you’re lucky enough to rely on your own two feet to commute, be a good neighbor and shovel your sidewalks. Snow is heavy, slippery stuff, and many of your neighbors can’t take care of it themselves. It’s easy to see which neighbors — and which businesses! — have cleared their walks and who hasn’t!

(Photo from Prince of Petworth)

Here’s a great example of private entrepreneurship making public life a little sweeter. Caribou Coffee has launched a new campaign in Minnesota, touting warmed sandwiches with the illustrative warmed bus shelters.

Such a great idea, in fact, that I’m happy to give my breakfast dollars to any private companies that improve or replace aging public works!

Once again ruling against America’s employers, the Supreme Court Monday broadened the reach of the 1964 Civil Rights Act’s ban on retaliation. It overturned a federal appeals court ruling against a worker who claimed he suffered unlawful retaliation for complaining about discrimination, when a business allegedly fired his fiancée.

As Ed Whelan notes, the Supreme Court’s unanimous decision in Thompson v. North American Stainless abrogated “all four” of the federal appeals court rulings on the subject, all of which had ruled in favor of the employer in similar cases. Indeed, the Supreme Court took a more expansive view of workers’ ability to sue businesses than 18 “of the 25 appellate judges to address the issue,” including even “Carter and Clinton appointees” like Judge Diana Murphy, who “decided it in favor of the employer.”

This is part of a long line of rulings against employers by the Supreme Court, which is not pro-business at all, contrary to the false claims of many liberal reporters who cover the Supreme Court. Many of these rulings against employers, like Lewis v. Chicago (2010), have been unanimous reversals of lower court decisions.

Slate’s Dahlia Lithwick falsely claimed in 2009 that in the Supreme Court, “big business always prevails, environmentalists are always buried, female and elderly workers go unprotected, death row inmates get the needle, and criminal defendants are shown the door.”

That false claim contradicts reality. Over the last dozen years, the death penalty has been dramatically cut back in cases like Roper v. Simmons (2005), as the Supreme Court has invalidated the death penalty when imposed on the “retarded” (even the mildly retarded) or juveniles (even 16 to 18 year-olds), or when imposed by judges rather than juries (as state laws long provided).

The Supreme Court tossed out thousands of sentences given to criminal defendants through decisions like U.S. v. Booker (2005) and Blakely v. Washington, based not on defendants’ innocence, but rather on the mere fact that judges, rather than juries, had made findings related to their sentences. The supposedly “right-wing” justices Roberts, Scalia, and Thomas joined in these decisions.

Environmentalists have won many cases, including one of the most economically-significant decisions ever — Massachusetts v. EPA (2007) — which arguably opened the door to EPA regulation of virtually every human activity, on the grounds that virtually all activity (from industrial production to farming to cars) emits carbon dioxide. That decision also created a special rule of standing to allow state attorneys general to bring lawsuits that would otherwise be thrown out as meritless for lack of standing.

The Supreme Court allowed businesses to be sued even for products the FDA deems to be safe and effective, in Wyeth v. Levine (2009), in a ruling that legal commentator Ted Frank called the most anti-business decision in 43 years.

The Supreme Court has repeatedly broadened employers’ liability for discrimination against women. It continuously expanded the definition of sexual harassment: it overturned earlier limits on vicarious liability (in Faragher v. Boca Raton (1998)), allowed institutions to be sued based on the acts of non-employees (in Davis v. Monroe County (1999)), and rejected limits on lawsuits where there is no economic or psychological harm (Harris v. Forklift Systems (1993)). All these rulings overturned lower court judgments against plaintiffs. The Supreme Court also made it easier for older workers to sue over unintentional discrimination, even after settling with their employer.

Thus, Dahlia Lithwick’s depiction of the Supreme Court bore no relation to reality. But similarly false depictions are peddled by court reporters at publications like the New York Times, the Washington Post, and the Los Angeles Times, fostering a misleading image of the Supreme Court.

Sweet news on the sugar front. Senator Jeanne Shaheen (D-NH) and newly elected Senator Mark Kirk (R-IL) have introduced a bill to phase out the U.S. sugar program. Called the SUGAR Act (Stop Unfair Giveaways and Restrictions), S. 25 would reform one of the most egregious agricultural programs that raises food costs for consumers, leads to job losses in confectionery and related businesses, and harms developing countries’ competitiveness.

Sugar producers defend the program by bragging that it doesn’t cost the federal government. But their sly defense ignores the estimated $4 billion a year added costs to consumers through a program that guarantees a minimum price to sugar producers, restricts the domestic supply, and sets a quota system for imported sugar, with prohibitively high tariffs above the quota.

Senator Shaheen’s press release noted:

Currently, no other U.S. crop is subject to similar restrictions, making the current price supports an unfair deal for consumers. Plus, high sugar prices were responsible for the loss of 112,000 jobs lost in sugar-using industries between 1997 and 2009, according to Promar International, a food and agriculture consulting firm. A 2006 Department of Commerce study estimated that for every sugar growing job saved through high U.S. sugar prices, approximately three manufacturing jobs are lost.

The legislation has not yet been posted.

More news on sugar: Opposition to the sugar program looks like it’s mounting. There’s also another sugar reform bill in the works that aims to repeal the program. And, with the new Congress, it has a better chance for success. See CEI writings here and here about the sugar program during the debates over the 2008 Farm Bill, which made a bad program even worse.

Tech:

Facebook phones to be unveiled next month:
“London-based City A.M. is reporting that Facebook, in conjunction with Taiwanese phone manufacturer HTC, will launch two Facebook-branded smartphones at the Mobile World Conference next month. The Facebook phones will reportedly offer a user interface based on Google’s Android platform.”

Hackers turn back the clock with Telnet attacks:
“A new report from Akamai Technologies shows that hackers appear to be increasingly using the Telnet remote access protocol to attack corporate servers over mobile networks.”

Google Starts Censoring BitTorrent, RapidShare and More:
“It’s taken a while, but Google has finally caved in to pressure from the entertainment industries including the MPAA and RIAA. The search engine now actively censors terms including BitTorrent, torrent, utorrent, RapidShare and Megaupload from its instant and autocomplete services. The reactions from affected companies and services are not mild, with BitTorrent Inc., RapidShare and Vodo all speaking out against this act of commercial censorship.”

Facebook Launches Social Login & HTTPS To Protect Your Privacy:
“There has been much fuss over security during the last few days at Facebook. First there were reports about Facebook getting hacked in Tunisia. And then another report came up about Facebook CEO Mark Zuckerberg’s Facebook page getting hacked. And to top all this, another supposed XSS hack plagued Facebook wherein a lot of users are seeing a status update from a Roy Castillo whom they are not even friends with. In order to counter all these security issues, Facebook has introduced 2 new features.”

Global Warming / Environment / Energy:

Top Republicans craft strategy to fight EPA’s expanding regulatory reach:
“Top Republicans in the House and Senate are in the middle of crafting a plan to stop unprecedented regulation by the Environmental Protection Agency (EPA) of carbon dioxide emissions, but confusion abounds the details.”

Insurance / Gambling:

Online Gambling Webmasters getting Ready for Auction:
“Online gambling webmasters are set to start a bidding war on 2,300 web domain names tonight as the online gambling domain name marketplace GamblingInvest.com holds an online auction that will run until February 2nd 2011. Thousands of viable domain names are going up for auction and some of these could become highly profitable to the right webmasters. Domain names like Jackpot News.com, Bookmakers.mobi are just two examples of the domains that will be available through ProxiBid.com.”

Health / Safety:

The real snow job in D.C.: Obamacare waivers skyrocket to 729 + 4 states; 4 new SEIU waiver winners:
“When last we examined the growing list, privileged escapees topped 222.”

Economics:

CBO: Social Security to begin running permanent deficits this year, not 2016:
“The Congressional Budget Office said Wednesday that Social Security will pay out $45 billion more in benefits this year than it will collect in payroll taxes, further straining the nation’s finances. The deficits will continue until the Social Security trust funds are eventually drained, in about 2037.”

Rand Paul proposes $500 billion in federal budget cuts:
“U.S. Sen. Rand Paul wants to slash numerous federal programs, including food stamps for the poor, to save $500 billion in a single year.”

Chavez tackles housing crisis by urging poor to squat wealthy parts of Caracas:
“Hugo Chávez has sent out troops to take over farms and urged the poor to occupy “unused” land in wealthy areas of Caracas, prompting a wave of squats that is rattling Venezuela’s middle class.”

Ohio Mom Kelley Williams-Bolar Jailed for Sending Kids to Better School District:
“An Ohio mother’s attempt to provide her daughters with a better education has landed her behind bars.”

Legal:

DOJ seeks mandatory data retention requirement for ISPs:
“The U.S. Department of Justice and an organization representing police chiefs from around the country renewed calls on Tuesday for legislation mandating Internet Service Providers (ISP) to retain certain customer usage data for up to two years.”

Labor:

AFL-CIO, Chamber release joint statement to push infrastructure spending:
“Two of Washington’s biggest rivals released a short joint statement Wednesday to push for more spending on the nation’s infrastructure.”

Transportation/ Land Use:

Obama Talks Rail in D.C., But Not in Florida:

1. Amazon is introducing a home grocery delivery service.

2. State of the Union addresses throughout history as word clouds.

3. Seattle has become the latest city to adopt market-rate parking.

4. The National Science Foundation requires a mandatory pregnancy test for female employees before they embark for Antarctica. (General policy is to keep pregnant women off the continent, since clinics are ill-equipped to provide them with proper medical care.)

5. Alcoholic milk shakes.

Photo Credit: Robin DeGrassi James’ Flickr Photostream

For the second year in a row, President Barack Obama has fretted over the “faster trains” of Europe and China in his State of the Union Address. In his third address, however, the president set a specific goal:

Within 25 years, our goal is to give 80 percent of Americans access to high-speed rail, which could allow you go places in half the time it takes to travel by car. For some trips, it will be faster than flying — without the pat-down. As we speak, routes in California and the Midwest are already underway.

In recent years, Americans’ heads have been filled with images of the future — a future where they will be able to take trains at speeds exceeding 150 miles per hour the same way they have heard citizens of developed European and Asian countries can dart across continents. After all, as Mr. Obama frequently asks, why should they have faster trains than us?

Yet this allusion to a supposedly more cosmopolitan future in transport rests on a shaky foundation of programmatic sluggishness, high pricetags, and political mislabeling. The Department of Transportation’s high-speed passenger rail program was initiated when the Intermodal Surface Transportation Efficiency Act of 1991 became law. Since then, DOT has designated 11 high-speed rail corridors. But earning this designation does not mean they are particularly viable.

One of the proposed corridors the president mentioned was the seven-state Midwest Chicago Hub Network. Despite Mr. Obama’s optimism, the situation on the ground is quite bleak. Wisconsin and Ohio recently elected governors who campaigned heavily against high-speed rail investment in their states, and the Obama administration pulled stimulus funds for the projects out of those two states. In addition to Wisconsin and Ohio, this move effectively takes Minnesota service off the table.

It is also quite misleading to refer to this as high-speed rail, at least in the sense that the Chicago Hub Network somehow compares with Chinese and European high-speed passenger rail. In those countries, trains can travel at speeds exceeding 150 miles per hour. In contrast, “high-speed” trains in the Midwest will eventually be able to top out at 110 miles per hour for very limited stretches. Nor will the Midwest trains ride on electrified railways, which is the only practical method of achieving speeds exceeding 150 miles per hour.

In California, things are no better. While the proposed corridor would be electrified, cost overruns are very likely in the already cash-strapped Golden State, the benefits touted rely on incredibly dubious assumptions, and many residents in the path of the train are less than thrilled with the project. Even the consistently liberal Washington Post editorial page called on President Obama to “hit the brakes on California’s high-speed rail experiment.”

President Obama’s policies are remarkably similar to President Bush’s. Most of their differences are in matters of degree, not principle. Both presidents believe in expanding federal involvement in health care, education, energy, you name it. Both grew regulation, spending and deficits at tremendous rates. Even their foreign policy is almost identical.

Over at the Daily Caller, I analyze last night’s State of the Union address (I also live-blogged it here) and find it wanting. There are some real stretches of logic:

In 1957, the Soviet Union launched a satellite into space. Therefore, taxpayers should give more money to politically favored corporations. This is not a rigorous line of thought. But it was typical of yesterday’s State of the Union address.

It wasn’t all bad, though:

There was some good in yesterday’s speech. The president would like to lower corporate tax rates. After Japan’s recent rate cuts, America now has the highest corporate tax rate in the developed world — nearly 40 percent in most states. This is not the way to encourage businesses to invest in America.

I wish the president had spent a little more time on the rate cut. He could have explained to the country and his party that businesses don’t actually pay corporate taxes. That’s because businesses pass on their costs. Consumers — you and I — foot the bill.

Read the whole thing here.

In his State of the Union address, President Obama called for even more spending on his cronies — what he euphemistically referred to as “investments” in “clean energy technology.” Such spending benefits companies that donate millions to liberal politicians, like GE,  which recently spent  $65.7 million on lobbying to extract special favors from the government.

As the Washington Post notes, GE received massive taxpayer bailouts on special, preferential terms not available to other companies:

General Electric, the world’s largest industrial company, has quietly become the biggest beneficiary of one of the government’s key rescue programs for banks. At the same time, GE has avoided many of the restrictions facing other financial giants getting help from the government. The company did not initially qualify for the program.  .  .But regulators soon loosened the eligibility requirements, in part because of behind-the-scenes appeals from GE.

GE’s CEO, Jeffrey Immelt, is the “Chairman of the President’s Council on Jobs and Competitiveness.”

The “clean energy” spending Obama wants includes “initiatives aimed at building the renewable-energy sector — which received billions of dollars in stimulus funding.”

This is a bad sign for American workers, because such green jobs programs have wiped out thousands of American jobs in the past.  The $800 billion stimulus package used “green-jobs” subsidies to send American jobs overseas79 percent of those subsidies went to foreign firms, such as an Australian firm that imported Japanese wind turbines, effectively outsourcing American jobs.  (The stimulus package also wiped out jobs in America’s export sector.)  Moreover, some “green jobs” funding actually damages the environment, like ethanol subsidies:  ethanol mandates actually harm the environment, yet the Obama administration apparently considers them to be a “green jobs” program.

Echoing earlier reports that he would advocate “new government spending” on education, Obama attacked the idea of scaling back massive increases in education spending. He called cutting education spending “like lightening an overloaded airplane by removing its engine.” Lost in his hyperbole was the fact that America already spends much more per capita on education than most other wealthy industrialized countries, with worse results.  As spending has exploded, college students are spending much less time studying and reading than they used to.

Dumping more money on the educational system is unlikely to spur economic growth, since so many college students learn little in college, are not interested in learning, and only go to college in order to get paper credentials rather than an education. Obama wants all Americans to attend at least one year of college, saying in his address that “higher education must be within reach of every American.”

Those paper credentials are increasingly useless to many who obtain them.  Most people who went to college because of rising college-attendance rates in recent years wound up in unskilled jobs (including 5,057 janitors who have Ph.D’s or other advanced degrees), while tuition skyrockets. (100 colleges charge at least $50,000 a year, compared to five in 2008-09.)  Bush increased federal education spending 58 percent faster than inflation, while Obama seeks to double it.

Colleges are so awash in money that many elite colleges are using it to rapidly expand educational bureaucracies.  For example, Wake Forest University increased spending on administrators by 600 percent.

Unlike other countries, which focus on educating engineers and other economically-productive occupations, America focuses on superficial, ideologically-fashionable liberal-arts majors.  The Obama administration seems more concerned about the gender ratios in college science departments than the small number of Americans who go into science, and is now contemplating caps on the number of male science students under Title IX to promote what it perceives as gender equity.  Such caps would be based on the Obama administration’s faulty interpretation of Title IX.