January 2012

Defending the Incandescent Light Bulb

by Brian McGraw on February 16, 2011 · 6 comments

in Energy, Nanny State, Personal Liberty, Regulation

Jim DiPeso, writing at The Daily Green, does not care much for Freedom Action’s campaign to overturn the impending ban on the incandescent light bulb. That’s fine, we certainly don’t expect everyone to agree or it wouldn’t have been banned in the first place. But he makes a number of questionable claims that are worth addressing, and includes unnecessary personal attacks.

To begin, he uses an analogy of a business deciding whether or not to fire a productive or unproductive worker, noting that it always makes sense to fire the unproductive worker. This is intuitive, but in this situation DiPeso trusts the business to make the decision on their own (he doesn’t propose a government agency dedicated to evaluating and firing unproductive private sector workers), yet isn’t convinced that consumers can make analogous decisions on their own (which bulb is better?) and need governmental decree. If the light bulbs truly are the same and save the consumer money, it seems that consumers will naturally transition towards CFLs.

Also a small quip — the Competitive Enterprise Institute is not a “hard-nosed voice of business.” CEI supports free markets and policies that allow for the myriad benefits of competitive market forces. It is widely acknowledged that General Electric played a major role in passing this legislation, which lowers choice and competition at the expense of consumers.

Moving on, DiPeso accuses Freedom Action of being disingenuous in calling the legislation a ban on incandescent light bulbs. The language is correct as is. The legislation was written to require quality standards for incandescents that are unobtainable in the short run, effectively banning the bulb. In the past, DiPeso has repeatedly referred to the ban as a “phase-out“ (what would you call an involuntary phase-out forced upon you, other than a ban?) and written a blog post entitled: “Bulb Ban – Give me Incandescent Bulbs…or Give me Death.” So DiPeso has uncritically referred to the legislation as a ban in the past, yet feels free to accuse Freedom Action of lying. The reader can decide who is being dishonest.

He makes the point that these bulbs are more energy efficient and ceteris paribus will save you money in the long run if you don’t adjust your behavior. Few people refute this, though economists will point to Jevon’s Paradox, noting that improved efficiency does not guarantee a reduction in net energy usage (and historically, has not) — individuals will find other uses for their light as it is cheaper or might be less careful to turn lights off. Either way, DiPeso admits this incandescent ban will have a negligible effect on carbon dioxide emissions.

He points to a study where consumers were unable to tell the difference. I will point to Free Our Light’s Facebook page full of individuals who seem well aware of differences between incandescent light and CFL light, vastly preferring the light from an incandescent bulb. As mentioned above, if individuals cannot tell the difference between the lighting, and CFLs save money, the market will take care of this switch without government decree.

Finally, he gets to mercury. There is an enormous difference between mercury released into the air from electricity production and mercury released into a closed environment in your home where you have the potential to ingest the toxic chemical before it disperses. Tellingly, the EPA doesn’t offer guidance for mercury exposure during your everyday life, though it does offer guidance for CFL breakage in your own home (hint: evacuate).

From electricity production, mercury is released into the air, which is vast and allows the mercury to disperse to negligible amounts that the EPA has deemed safe for humans. Further proof that small amounts of mercury are okay: humans eat millions of pounds of tuna per year which is known to have small amounts of mercury in it — your body is capable of removing mercury from your system and you will suffer no damage assuming you don’t ingest too much too quickly (like if you were to break a CFL and inhale a few feet away from it).

Is the risk of mercury from a CFL large? No, of course not. But it is greater than zero, and some consumers may have risk preferences that would cause them to spend the extra money on incandescent bulbs to avoid this risk. In our opinion, they should have this right.

Finally, I will also note that in a previous blog post, DiPreso, as a conservative, understands the principle behind being angry over a ban that limits personal freedom and choice:

Nevertheless, I get what Bachmann is upset about. It’s a matter of principle. On the face of it, a federal government of limited and enumerated powers shouldn’t be reaching so deeply into the minutiae of our lives.

Note his understanding of principles (alternatively, the principle of opposing legislation enacted as crony capitalism) does not seem to apply when he disagrees with an organizations larger policy preferences.

Morning Media Summary

by Lee Doren on February 16, 2011

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

Tech:

Computer crushes the competition on ‘Jeopardy!’:
“The computer outsmarted its human competition in Game 1 of the Man vs. Machine competition on “Jeopardy!””

De-fund the FCC:
“From the Hill: “Federal Communications Commissioner Michael Copps made a case for a government hand in media policy in a speech to the FCBA on Tuesday… The Democratic commissioner pointed to Fox News’ Bernie Goldberg and Bill O’Reilly as examples of the problem with today’s media landscape, saying the pair has taken his own words out of context.””

Update: Draft IEEE standard would speed video uploads on mobile devices:
“A newly formed industry group has proposed a standard that could help eliminate those long pauses – buffering and rebuffering — that users experience during video content uploads to mobile devices.”

Israeli general claims Stuxnet attacks as one of his successes:
“The latest results of a Symnatec study concentrating on the Stuxnet worm revealed that its developers knew what they were doing – once finished, it took only 12 hours to infect the first target.”

Taxes on Cell Phones Hit All-Time High, 10 Best and Worst States:
“Wireless consumers in Nebraska, Washington, and New York pay more than 20 percent of their wireless bills in taxes and fees, mostly due to the proliferation of archaic or duplicated surcharges.”

Obama seeks big boost in cybersecurity spending:
“The White House is proposing a big increase in cybersecurity research and development in next year’s budget to improve, in part, its ability to reduce the risk of insider threats and ensure the safety of control systems such as those used at power plants.”

Egypt Leaders Found ‘Off’ Switch for Internet:
“Epitaphs for the Mubarak government all note that the mobilizing power of the Internet was one of the Egyptian opposition’s most potent weapons. But quickly lost in the swirl of revolution was the government’s ferocious counterattack, a dark achievement that many had thought impossible in the age of global connectedness. In a span of minutes just after midnight on Jan. 28, a technologically advanced, densely wired country with more than 20 million people online was essentially severed from the global Internet.”

Global Warming / Environment / Energy:

Quote of the week: the middle ground where AGW skeptics and proponents should meet up:
“This article was sent to me by Charles Hart, and I have to say, I really like this quote from Curt Stager in Fast Company. Between the extremes of Hansen’s pronouncements about coal death trains and people in Britain having to choose between food and fuel, this is where we need to be.”

Insurance / Gambling:

Charity Groups Push for Change in Indiana Gambling Laws:
“Tired with the cumbersome laws that govern Indiana’s gambling industry, charity groups and non-profit organizations are pushing for substantial changes that will see a possible change in legislation. As such, a coalition of these groups is promoting two bills that will see a relaxation of gambling in Indiana bars and at charity events.”

Health / Safety:

Super Nanny: First Lady of Junk Science Michelle Obama:
“America is finally catching on. For nearly two years, I’ve chronicled food profiteer-turned-food cop Michelle Obama’s obese and obscene power grab masquerading as a public health crusade. She quickly leveraged her hubby’s U.S. Senate victory to snag a lucrative seat on the corporate Board of Directors of TreeHouse Foods, Inc. despite having zero experience in the industry, publicly begrudged other Americans’ choices in how they earn their money — and then parlayed her East Wing power to push Obamacare, threaten food advertisers’ speech and serve the SEIU’s legislative agenda (full story on this in Culture of Corruption), and brow-beat restaurants over portion sizes. Mrs. O even played the childhood obesity card to try and win the Chicago crony-lympics bid.”

Senators: Ban smokeless tobacco use in MLB:
“Two Democratic senators are asking baseball commissioner Bud Selig to ban all tobacco use in the sport, specifically citing smokeless products.”

Healthcare Reform Law Requires New IRS Army Of 1,054:
“The Internal Revenue Service says it will need an battalion of 1,054 new auditors and staffers and new facilities at a cost to taxpayers of more than $359 million in fiscal 2012 just to watch over the initial implementation of President Obama’s healthcare reforms. Among the new corps will be 81 workers assigned to make sure tanning salons pay a new 10 percent excise tax. Their cost: $11.5 million.”

Why Aren’t G.M.O. Foods Labeled?:
“If you want to avoid sugar, aspartame, trans-fats, MSG, or just about anything else, you read the label. If you want to avoid G.M.O.’s — genetically modified organisms — you’re out of luck. They’re not listed. You could, until now, simply buy organic foods, which by law can’t contain more than 5 percent G.M.O.’s. Now, however, even that may not work.”

Economics:

World Bank: Food prices at “dangerous levels”:
“Global food prices have hit “dangerous levels” that could contribute to political instability, push millions of people into poverty and raise the cost of groceries, according to a new report from the World Bank.”

Legal:

Shirley Sherrod Catches Andrew Breitbart’s Car:
“You know that saying about the dog which chased the car but didn’t know what to do once it caught it. Shirley Sherrod just filed suit against Andrew Breitbart, but I think she’ll find it was not worth the pursuit. “

Labor:

National Labor Relations Board to decide whether labor organizers can use ‘micro union’ targets:
“The National Labor Relations Board (NLRB), the mediation agency charged with interpreting and maintaining the fairness of unionizing efforts nationwide, will soon decide whether or not labor unions will be allowed to break off different sections of workforces into small groups to organize five or 10 workers at a time instead of the whole workplace at once – or organize using “micro unions.””

Chicago SEIU Local Leaders Probed for Terror Links:
“It’s not every day that an American labor union gets investigated for possible ties to two of the world’s most lethal terrorist organizations. But Chicago’s Service Employees International Union Local 73 isn’t an everyday union. Last September 24, FBI agents raided residences in Illinois, Minnesota and Michigan of more than a dozen radical activists in an effort to connect them to the Hamas (Gaza and the West Bank) and FARC (Colombia) guerrilla movements. Two of the occupants were SEIU Local 73 chief steward and executive board member Joe Iosbaker and former local board member-steward Tom Burke. Neither they nor anyone else has been arrested. But as the case unfolds, questions have arisen over the extent of involvement, if any, by the Chicago-based radical network that nurtured President Obama’s political ambitions from the Nineties onward.”

Transportation/ Land Use:

Businesses urged to get involved with planning on high-speed rail:
“State officials have put the call out to companies and other organizations – including small businesses – to get involved in the building of California’s plans for a multibillion-dollar high-speed rail system.”

Taxpayers Absorb Berkshire’s Dumped Bank of America Shares

by Kathryn Ciano on February 15, 2011 · 1 comment

in Economy

Late yesterday afternoon Warren Buffett’s trading conglomerate Berkshire Hathaway dissolved all of its Bank of America shares. Berkshire’s pull-out accounted for 5 million shares — not an enormous amount, but a 100 percent dump nonetheless sends a strong signal to the market.

Berkshire is up $4B this quarter over last — their formula is working. Along with Bank of America, Berkshire dumped shares in Comcast, Nike, Lowe’s, and a few other holdings.

I wrote:

In an interview released last week, the Financial Crisis Inquiry Commission quoted Buffett as criticizing Bank of America for paying a “crazy price” to acquire Merril Lynch in the midst of a financial crisis.

Until an audit subjects the Federal Reserve to transparent decisionmaking, private investments point a clearer path to what paths the public expects will be profitable in the years to come. The Fed may shift interest, but Berkshire Hathaway deals in real dollars.

Cross your fingers for Chevy’s Volt, kids, because BofA is one national investment looking dismal this week.


This is just one more way taxpayers will bear the burden of keeping banks afloat. When Congress first approved TARP last year, Treasury was slated to buy mortgage-backed securities from the banks.

The government ultimately deemed it impossible to assess securities’ values. Instead Treasury used TARP to inject free cash flow into banks by purchasing convertible bank shares — effectively bank stock options.

As banks’ losses mount and real estate prices continue to drop the banks have been unable to push these deadweight securities from their balance sheets. Banks have accepted government cash but have not been able to match that influx with equity.

Banks that do not react to investors’ cues do not adequately protect themselves from further government ownership. Last spring the three big American banks converted government-owned stock from preferred to common. Ostensibly this move protected public resources (tax dollars gov’t used to snatch up bank shares in the first place) by paying less per share but continued to “bail out” the banks stuck absorbing our securities failure.

Government holding isn’t about ownership; it’s about control. When government dollars go to preferred stock, banks monitor what Big G owns and how many dollars are going to and from this significant stockholder. When Big G pulls out of preferred and keeps instead to common, the banks are less attentive to exactly how much the gov’t owns.

The more government hands get involved, all of its influence falls victim to mission creep. When gov’t dollars go to common stock instead of preferred, it’s not like the gov’t pulled out some of its cash to match the lower equity it was purchasing. Instead, the same number of G dollars are still flowing to the banks, but holding many more shares.

The Federal Reserve was invented to counterbalance market shifts and dips. That’s the only enterprise big enough to control for inflation.

When taxpayers have to absorb yet another private investor’s signal that BofA is flailing, that’s not inflation, that’s government failure.

Afternoon Links: February 15, 2011

by Nicole Ciandella on February 15, 2011

in Odds & Ends

1.“Why IBMs’ next target should be a machine that plays poker.”

2. Belgorod, Russia has banned Valentine’s Day.

3. Yesterday, the New York City Health Department unveiled a new smartphone app that locates free condom dispensaries.

4. Social hacking.

5. The fight over the .gay domain.

Photo Credit: Maorix’s Flickr Photostream.

Anti-Ethanol Legislation Begins Popping Up

by Brian McGraw on February 15, 2011 · 3 comments

in Energy, Ethanol

Two bills have recently been introduced that intend to block efforts made to increase U.S. consumption of ethanol.

The first, from Rep. John Sullivan (R-OK), intends to cut funding for EPA’s E15 program. My understanding of the legislation is that “cutting funding” for the program is the equivalent of ending it, as the EPA needs funds to carry out the remainder of the regulatory process (permits, guidelines for fueling stations, E15 warning stickers, etc.).

The second is from Jeff Flake (R-AZ), would end the VEETC and corresponding tariff on foreign ethanol.

Both bills would slightly limit the excessive production of corn ethanol (a good thing), but the bigger problem is the ever-increasing mandate known as the Renewable Fuel Standard. An ideal bill would end the mandate, tax credit, tariff, end the law that allows E-85 vehicles to qualify for mileage standards, and end EPA’s ability to regulate the amount of ethanol in our fuel. Then the ethanol industry couldn’t fairly argue that they’re being denied access to the market. Some energy analysts even believe E85 could exist profitably as a niche industry in the mid-west.

Realistically, in the short run, petroleum would still dominate. However, freeing capital away from politically motivated ends makes it more likely that capital will flow into areas that will actually generate benefits for consumers. It is unclear if that will ever happen with corn ethanol and/or its variants (cellulosic, biodiesel, etc.).

Here is a good piece (and a challenge) by Tim Carney on the ethanol’s industry claim that they’re being unfairly denied access to the fuel market by the EPA. Of course, the ethanol industry is being incredibly disingenuous in its calls for fair competition. They have done this before.

Mubarak’s Exit Lifts U.S. Stocks

by Kathryn Ciano on February 15, 2011 · 1 comment

in Economy, International

As Egypt settles into a cautious detente, stock markets around the world recover from their Jan 25 dip. As Mubarak ceded the presidency Friday, all three New York Stock Exchange indices and NASDAQ saw modest lifts. As stability is restored, people are more confident making investments.

Egypt’s own market has yet to recover. Mubarak dithered in office, first announcing that he would remain in place as a “figurehead,” then claiming that he would stay til the end of the summer.

Mubarak finally stepped down Friday afternoon, leaving Egypt in military hands while the government regroups. The Swiss Federal Department of Foreign Affairs has frozen Mubarak’s Swiss bank accounts and the funds that belong to “his circles” to avoid any risk of “embezzlement of state property” pending a resolution in Egypt.

Morning Media Summary

by Lee Doren on February 15, 2011

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

Tech:

Google Launches Site-Blocking Extension Against Content Farms:
“Aimed at stripping search results of pages from “low-quality” sites, a new Google Chrome extension allows users to block specified websites from appearing in search results. The names of these sites are then sent to Google, which will study the collected results and use them to determine future page ranking systems. ”

London Stock Exchange in historic Linux go-live:
“UPDATED The London Stock Exchange has successfully set into live trading a new matching engine based on Novell SUSE Linux technology, following successful last-step setup procedures on Saturday.”

Global Warming / Environment / Energy:

Global Warming Will Not Cause ‘permanent El Nino’:
“Boffins in Blighty have said that global warming and retreating Arctic sea ice cover is unlikely to result in a so-called “permanent El Niño” state in the Pacific, nor cause similar major weather-changing shifts in the behaviour of the Atlantic ocean.”

Insurance / Gambling:

Texas Lawmakers Still Split On Gambling Legislation:
“While the rest of the country has expanded their casino gambling industries at a record pace over the past couple of years, Texas has remained one of the states that has kept casino prohibition alive. It had been expected that one of the country’s most conservative states would shy away from casinos.”

Health / Safety:

Mitch Daniels on Medicare We can’t afford every form of end-of-life care for everyone:
“He said it a few days ago but it’s best contemplated today, through the lens of the fiscal apocalypse that is Obama’s budget. All along, I’ve been thinking that the Romneyites want this guy to stay out of the race lest the moderate/managerial wing of the primary grow too crowded. But now? Mitt would inevitably use Daniels as a foil to frame himself as the voice of reason on health-care reform, hammering Mitch the Knife as a de facto rationer. Then Daniels would turn around and bludgeon him for the sins of RomneyCare. And the Palinistas would watch it unfold, rubbing their hands with glee and chuckling all the while.”

UM Study Says Energy Drinks Pose Serious Risk to Kids:
“Energy drinks not only may make your kid hyper, but it turns out they might also make them seriously unhealthy.”

Economics:

Obama’s 2012 Budget Proposal: How $3.7 Trillion is Spent:
“Mandatory spending, which includes entitlement programs like Medicare and Social Security, is expected to continue to rise.”

Top 5 silliest state tax hikes:
“With states facing a collective $175 billion budget shortfall, legislatures across the country are proving the old aphorism, “necessity is the mother of invention” — even if that invention is as absurd as the “Shake Weight.””

Consumer prices on most goods expected to rise in 2011:
“A package of Oscar Mayer cold cuts. A pair of Nine West boots. A Whirlpool washing machine.”

Seizing the Future: Budget battle in Washington; Obama: “Live within our means” …by spending into oblivion:
“Oh, no. It’s another White House White Board (click here for Austan Goolsbee’s turn last week).”

Ryan: Obama punted budget, it’s ‘Debt on Arrival’:
“House Budget Chairman Paul Ryan dubbed President Obama’s budget “debt on arrival,” in the first Republican response to the $3.7 trillion plan released by the White House Monday, adding “it would be better if we did nothing than if we passed this budget.””

Latest Salaries For SJ City Employees Posted Online:
“The latest information about the salaries and benefits of each San Jose city employee was posted online Friday in an effort to maintain transparency in the city’s government.”

Legal:

Shirley Sherrod Catches Andrew Breitbart’s Car:
“You know that saying about the dog which chased the car but didn’t know what to do once it caught it. Shirley Sherrod just filed suit against Andrew Breitbart, but I think she’ll find it was not worth the pursuit. “

Labor:

Wisconsin AFL-CIO ads attack Walker plan on collective bargaining:
“The Wisconsin State AFL-CIO on Sunday launched a major advertising campaign against Gov. Scott Walker’s plan that would erase almost all collective bargaining rights for most public workers as a way to shore up the state’s finances.”

Transportation/ Land Use:

Bill would strip mining of eminent domain powers:
“A bill that would strip mining companies — and Nevada’s long-defunct sugar beet industry — of eminent domain powers was championed Monday by supporters who argue that the law is antiquated and susceptible to abuse.”

High-speed train system has a long way to go:
“The Obama administration is proceeding at full speed with plans to create a national high-speed rail system, proposing billions in next year’s budget to help lay the groundwork. But political opposition and hefty costs could mean the ambitious program goes nowhere fast.”

Foreign Automakers Beware! Sincerely, UAW Boss Bob King

by Trey Kovacs on February 15, 2011 · 2 comments

in Labor

Another day and the same story, UAW boss Bob King is threatening foreign automakers with unionization. Bob King, again, is going back on his 11 principles for fair union elections. Bob King speaking at the annual White Shirt Day lunch said:

“UAW will target one of the transplant car companies within 90 days and will take the fight to unionize workers there to showroom floors, picketing dealerships with the targeted transplant company”

According to King’s principles, fair elections consist of:

Principle 2:

No coercion, intimidation or threats
2. Employees must be free to exercise the right to join a union or refrain from joining a union in an atmosphere free of fear, coercion, intimidation or threats. There is no free choice if a worker is afraid of
losing a job or losing benefits as a result of his or her choice, or is intimidated into making a choice not of one’s own making.

Bob King’s quote is direct intimidation and a threat to foreign automakers. Apparently, there is no principle for employers. They are allowed to be threatened and intimidated by union officials. In addition, union members of foreign automakers should examine Principle 2 closely and look to the employees of the Big 3. The Big 3 employees ended up losing their jobs and benefits from unionization. To the Bob Kings of the world, an employer looking out for their employees is against UAW and King’s principles.

Another of King’s principles:

Principle 3:

No repercussions from management or the union
3. Management must clearly articulate that if workers choose to unionize, there will be no negative
repercussions from the company. The UAW must clearly articulate that if workers choose not to unionize, there will be no negative repercussions from the union. Both the company and the union will negotiate in good faith, and any failure to reach agreement will not be caused by bad faith negotiations.

Bob King and UAW have consistently attempted to unionize foreign automakers in past and have yet to succeed. Still, UAW continues its effort to organize automaker employees. From Bob King’s threats, there will be negative repercussions for not unionizing. Calling foreign automakers “human rights violators” and picketing dealerships will affect the automakers and employees negatively, a clear violation of Principle 3. It is time for King to walk away and act on his principles.

If consistently going against your principles is not enough, King calls for Americans to recognize that:

“It was unions that built the middle class in America, It’s our job to remind people that you cannot have a strong (country) without a strong middle class (and) you cannot have a strong middle class if you do not have strong unions.”

As Americans taxpayers can see with the growing federal, state, and local debt from fiscally unsound retirement pensions and benefits in the public sector, and from the Big 3 in the private sector. Unions do not build a strong middle class or a strong America. Labor officials do create jobs they eliminate jobs. Employees beware of union official rhetoric of better pay and benefits. As the Big 3 employees have found out and government workers are seeing now, you can only keep those benefits if your employer is in business.

Regulation of the Day 165: Singing in Public

by Ryan Young on February 14, 2011

in Deregulate to Stimulate, Regulation, Regulation of the Day

It is against the law to sing in public in Anderson, South Carolina. But the ban could be lifted as soon as today. The city council will vote on the right to sing as part of an effort to clean out the books of obsolete, redundant, and just plain weird laws.

Other obsolete rules set for repeal would cover “bomb shelters, parking meters (which no longer exist in the city) and house numbering rules that predate the current 911 system.” Still other ordinances are already covered by state law.

Laws that might have made sense in the 19th century might not today. Washington, D.C., still has rules on the books for how to herd livestock through city streets, for example. A big part of regulatory reform is doing a better job vetting new rules before they hit the books. But old rules shouldn’t be exempt from scrutiny, either.

Cities, states, and the federal government should make it a priority to comb through the books and eliminate old rules that don’t apply to today’s world, or that are already covered by other levels of government.

Image credit: davidastin’s flickr photostream.

Afternoon Links: February 14, 2011

by Nicole Ciandella on February 14, 2011

in Odds & Ends

1. “If I told you how much I loved you . . .”

2. A week after the Chris Lee Craigslist debacle, a Pennsylvania teen has been arrested for trying to hire a hitman on Facebook. Gentlemen: you’re doing it wrong.

3. Engineer Raymond Kurzweil makes five predictions about what’s coming in the next thirty-five years.

4. A teenage Twilight fan told police she’d been attacked while jogging after her mother discovered bite marks on her neck. After police challenged the girl’s story, she admitted that the marks were actually the result of a consensual (vampire-themed) act.

5. The Cold War really is over: Chili’s has expanded into Russia.

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