January 2012

Morning Media Summary

by Lee Doren on February 8, 2011 · 1 comment

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

Tech:

China building a city for cloud computing:
“China is building a city-sized cloud computing and office complex that will include a mega data center, one of the projects fueling that country’s double-digit growth in IT spending.”
FCC to move toward overhaul of $8 billion phone fund for Internet:
“The Federal Communications Commission is expected to move forward Tuesday on a long-fought plan to convert federal phone subsidies for rural areas into funding for high-speed Internet connections.”

Global Warming / Environment / Energy:

NYT: Olbermann to join… Al Gore’s Current TV:
“Why would Olby settle for a rinky-dink operation like Current after being MSNBC’s 8 p.m. go-to guy for years on end? Could be that they outbid for him, but a big payday seems unlikely considering that the network was struggling so badly last year that it had to remake its whole operation. (Besides, who else would be bidding? CNN?) The key, I’d bet, is the equity provision, i.e. control. MSNBC’s overall leftward tilt was partly Olbermann’s doing; presumably he’ll have an even bigger influence over the programming at the “new” Current TV. In fact, per the Reuters story at the last link, the early buzz about Current when Gore got involved in 2004 was that it would be a left-wing alternative to Fox News. Having tried and semi-succeeded to build precisely that at MSNBC, Olby may be thinking of this as a second shot but with even greater leverage. Plus, if even one-tenth of the stories are true about what it’s like to work with him, he’ll need some equity to ensure that he doesn’t eventually get shoved out here too.”

Droughts, Floods and Food:
“But the evidence tells a different, much more ominous story. While several factors have contributed to soaring food prices, what really stands out is the extent to which severe weather events have disrupted agricultural production. And these severe weather events are exactly the kind of thing we’d expect to see as rising concentrations of greenhouse gases change our climate — which means that the current food price surge may be just the beginning.”

EPA Administrator Lisa Jackson’s journey as a regulatory warrior:
“Environmental Protection Agency (EPA) Administrator Lisa Jackson will testify before the House Energy and Commerce Committee on Wednesday in what will be the first showdown between the newly empowered House Republicans and the EPA chief over the agency’s regulatory powers.”

Insurance / Gambling:

Gaming bills targets impact:
“While it remains a coin toss whether the governor and lawmakers will overcome disagreements on expanded gambling, opponents are pushing for a new study of the negative social and economic impacts that casinos and slot parlors could bring to the state.”

Las Vegas sports books take a hit on Super Bowl action:
“Reporting from Las Vegas — The boys from Ohio and their lawyer friend from New York pulled onto the Strip this weekend braced for the inevitable.”

Health / Safety:

Junk food diet linked to lower IQ – study:
“Toddlers who have a diet high in processed foods may have a slightly lower IQ in later life, according to a British study described as the biggest research of its kind.”

Health Care Showdown: Obama Administration Calls Out GOP Governors:
“The Obama administration is showing political tough love with Republican governors who criticized both the constitutionality and funding of the president’s signature health care legislation.”

Flu breakthrough promises a vaccine to kill all strains:
“Scientists at Oxford University have successfully tested a universal flu vaccine that could work against all known strains of the illness, taking a significant step in the fight against a disease that affects billions of people each year.”

Economics:

When States Go Bust:
“It’s a solution of apparent Alexandrian elegance and simplicity: Empower America’s cash-strapped states to slice cleanly through a strangling knot of debilitating debt and government union cronyism by letting them file for bankruptcy. Long-term liabilities could be restructured, unaffordable labor contracts rewritten, fiscal health restored. No federal bailouts necessary.”

Obama: Corporate Profits “Have to be Shared By American Workers”:
“”If we’re fighting to reform the tax code and increase exports, the benefits cannot just translate into greater profits and bonuses for those at the top. They have to be shared by American workers, who need to know that opening markets will lift their standard of living as well as your bottom line,” President Obama told the Chamber of Commerce on Monday morning.”

Shuttle operator may propose commercial flights:
“NASA contractor United Space Alliance is preparing a long-shot bid to continue flying the shuttle as a commercial service after the space agency completes its last three planned missions this year.”

Paul Ryan to lock in cap on discretionary spending:
“House Budget Committee chairman Rep. Paul Ryan, R-Wis., is expected to enter into the congressional record a cap on discretionary spending as promised by House Republcians prior to the election. From National Journal:”

The top five Obama regulations that American businesses hate the most:
“Top GOP oversight official Rep. Darrell Issa asked 150 industry groups which of President Obama’s regulations they think are impeding economic growth.”

Legal:

Chipotle under fire from feds:
“U.S. Immigration and Customs Enforcement is preparing to crack down on 60 Chipotle Mexican Grill restaurants in the D.C.-Virginia area in an effort to weed out undocumented workers, the restaurant chain confirmed Monday.”

Republicans ask court to toss climate case:
“Two top House Republicans and the Senate’s leading global warming skeptic asked the Supreme Court Monday to throw out a lawsuit seeking to force electric utilities to slash greenhouse gas emissions.”

Labor:

SEIU Propaganda Campaign Hits California:
“California’s Prime Healthcare Services (PHS), a private for-profit hospital chain, is fighting back against ugly propaganda and extortive threats from the Service Employees International Union (SEIU). The California Public Policy Center’s Unionwatch site has a quick and dirty summary of the charges:”

Transportation/ Land Use:

Wisconsin governor could cost high-speed rail ’10-15 years’:
“Wisconsin’s new Tea Party-cozy Gov. Scott Walker’s wrench in the works of that high-speed train link between Chicago and Minneapolis could set the plan back “10 to 15 years” or so, says the chairman of a Minnesota pro-train group. The Strib’s Pat Doyle (now on the transportation beat) writes: “The dashed prospects for high speed come as President Obama vowed in last month’s State of the Union address to make it available to 80 percent of Americans by 2035. Obama dedicated $8 billion in stimulus money for high speed — defined as 110 miles per hour or faster. But Walker’s decision to reject $810 million of it to build a link between Milwaukee and Madison resulted in those funds being re-routed to other projects. Walker said the line would have cost Wisconsin millions to operate … While the Twin Cities-to-Chicago project has stalled, other regions are moving ahead. Illinois is using $1.1 billion in federal money to begin building high-speed from Chicago to St. Louis. California voters approved nearly $10 billion in bonds to help finance a San Diego-to-Sacramento line.” Thanks a lot, pal.”

Afternon Links: February 7, 2011

by Nicole Ciandella on February 7, 2011

in Odds & Ends

1. A 24-year-old English teacher was forced to resign after she posted pictures of herself drinking wine and beer while on vacation in France.

2. The unemployment rates of men vs. women.

3. The Brazilian president says capitalism is dead.

4. NYC cop tickets a bicyclist for not wearing a helmet–even though that’s not against the law.

5. Artist Bill Guffey uses Google Street View as inspiration for paintings.

Photo Credit: Flickr Photostream

Politicans Using Crisis for Political Gain

by Trey Kovacs on February 7, 2011 · 1 comment

in Bailout Watch, Economy, Labor, Politics as Usual

Here is a letter to the editor responding to the New York Times editorial “Their Real Agenda”:

The author claims politicians are using the financial crisis for their own ideological gain. This may be true. But it does not negate the fact that states are in financial crisis. The solution for dealing with the costs of public sector union employees is simple. Get rid of defined benefit plans and require government employees to contribute to their retirement and healthcare like everyone else. Retirement liabilities are a large portion of state deficits. If unions do not allow their members to renegotiate their current unsustainable contracts, which they will not, bankruptcy or severe cuts are the only options. A federal bailout of fiscally irresponsible states would just kick the can down the road. Again.

FDIC’s Pay Caps Will Keep Businesses on “Sidelines”

by John Berlau on February 7, 2011 · 1 comment

in Agenda for Congress, Bailout Watch, CEI Projects, Deregulate to Stimulate, Economy, Legal

At 11:30, in a much-anticipated speech at the U.S. Chamber of Commerce, President Obama used Super Bowl analogies to urge American businesses to “get off the sidelines,” “get in the game,” and “invest in America.” But some two hours later, an action by Federal Deposit Insurance Corporation proposing to slash bonuses at financial firms illustrated why so many private-sector players are reluctant to enter a “game” in which the referees change so many of the rules at mid-quarter.

The proposed rules issued by the FDIC would require banks, brokerages, and other financial firms to defer 50 percent of executives’ bonuses for three years. The FDIC, in coordination with other agencies, was given the authority to issue such a rule by Section 956 the of the 2,400-page Dodd-Frank Act that passed last year. But the law doesn’t require this action to be taken. If Obama really wanted to be true to his word about rational regulation, he would tell the FDIC — led by George W. Bush-holdover Sheila Bair — to shelve this rule that micromanages decision that should be made by private companies and their shareholders.

In a free market, it’s up to a company’s owners to decide how to reward those who run it. What is Facebook CEO Mark Zuckerberg worth given the value he has created? That is a hard question; but it is thankfully one government bureaucrats don’t have to decide. The owners of Facebook and every other companies.

The stated purpose of some of the other provisions of Dodd-Frank — such as say-on-pay and “proxy acccess” — is to give shareholders more of a say on how the amount of CEO pay and how it is structured. Whether these provisions actually do this — or whether they simply override state law and empower special interests — is another story.

But here the FDIC as nanny-state entity is overturning the entire justification of shareholder empowerment by dictating terms of a financial executives’ compensation. The argument is that pay practices can encourage “excessive risk taking,” but it simply isn’t borne out in the data that executives made the hazardous bets they did to reap short-term gains.

A study issued by the National Bureau of Economic Research (NBER) from finance professors at the Univeristy of Ohio and the Swiss Federal Institute of Technology found that “banks with higher option compensation and a larger fraction of compensation in cash bonuses for their CEOs did not perform worse during the crisis.” In fact, the study found some evidence these executive performed better than those at banks that had deferred long-term pay plans along the lines the FDIC is now proposing to mandate.

The NBER study and other evidence indicates that bank CEOs were just as caught up in the housing bubble as other players, such as home buyers, the real estate industry, and government-sponsored enterprise Fannie Mae and Freddie Mac — of which all members of the Financial Crisis Inquiry Commission agreed contributed to the crisis, but disagreed on the degree of this contribution.

Many financial executives, like the others, believed that housing would go up in the long haul and many invested accordingly. The authors of the NBER study conclude: “Bank CEOs did not reduce their holdings of shares in anticipation of the crisis or during the crisis. Consequently, they suffered extremely large wealth losses in the wake of the crisis.”

Regulations on CEO pay are a poor tool to address bank risk-taking. This should be addressed by reserve requirements, leverage rules, and above all reform of deposit insurance to reduce the moral hazard of taxpayer guarantees. The FDIC bonuses threaten to make U.S. financial firms — and the Main Street businesses who depend on financing from these firms — less competitive and put a crimp on job growth.

Another TSA Nightmare

by Hans Bader on February 7, 2011 · 2 comments

in Labor, Mobility, Nanny State, Personal Liberty, Precaution & Risk, Regulation

The writer Andrew Ian Dodge shares his painful experience at the hands of the TSA at this link. The TSA inflicted prolonged pain on him through completely unnecessary “kneeding and prodding” of his scar from a “colon cancer operation that went from” his crotch to his sternum. He still hurt a day later.

Dodge wrote about the TSA’s recent decision to block competing private companies from performing airline security screening, even though private airport screeners do better on customer-satisfaction and passenger-happiness measures than TSA employees. I wrote earlier about how the TSA’s attack on private screening will harm innovation and passenger safety. CEI’s Brian McGraw wrote about the TSA’s recent decision to allow unionization of TSA employees, which TSA heads during the Bush administration had consistently opposed on security grounds.

The End of the Imaginary Age of Civility

by Hans Bader on February 7, 2011 · 1 comment

in Politics as Usual, Sanctimony, Zeitgeist

After the Tucson shooting, liberals lectured America, and especially conservatives, on the alleged need for more civility (even though there was no evidence that the shooter was influenced by any uncivil political rhetoric, and the shooter was not a conservative).

But the new era of civility didn’t last long, if it ever existed at all.  Some of the very people who loudly demanded civility from others quickly returned to their own deeply-ingrained habit of trash talk and hate-filled vitriol.

Liberal actor and activist Richard Dreyfuss set up a project to promote “civility in political discourse” after the shootings.  When he was asked about a liberal radio host’s yearning for the death of the “dirtbag” Dick Cheney, he praised it as “beautifully phrased,” endorsing an intemperate diatribe that also branded Cheney as an “enemy of the country,” and a “freakin’ loser.”

The liberal lobbying group Common Cause, which had hectored America about the need for civility, helped organize a demonstration outside a conference in California where participants called for the lynching of Supreme Court Justice Clarence Thomas.

Liberal Congressman Steve Cohen (D-Tenn.) helped usher in the new Age of Civility by likening Republicans to Nazis like Joseph Goebbels.

The Washington Post and New York Times enlisted two prominent practitioners of trash talk to lecture America about the need for civility. Al Sharpton preached about the “dangers of inflammatory rhetoric” in the Washington Post, despite his own past history of helping incite a deadly race riot, and a court judgment against him for defamation arising out of the Tawana Brawley hate-crime hoax.   Ex-congressman Paul Kanjorski (D) lectured about the need for “civility” in the Times, despite his October 2010 statement that Florida governor Rick Scott (R) should be shot.

The Post op-ed writers who endorsed the calls for civility then paved the way for yet more civility, both by branding conservatives as spiteful lobotomy patients, and by insinuating that opponents of gun control are collectively guilty of subversion and nativism, writing that “the descriptions of President Obama as a ‘tyrant,’ the intimations that he is ‘alien’ and the suggestions that his presidency is illegitimate are essential to the core rationale for resisting any restrictions on firearms.”

Even as it prattled about the need for civility, the New York Times editorial board directed readers to its earlier diatribe that baselessly accused Republicans, the Tea Party, and conservative media of creating a climate of “division” and “anger” that made the Tucson shootings possible. The Times did so even though a column by its own David Brooks had earlier pointed out that there was “no evidence” that the shooter was influenced in any way by conservatives.

While the Post and the Times don’t seem at all concerned about the death threats recently made by liberal activists against Republican lawmakers in Florida and in Wisconsin, they are very up in arms about factual references to the health care law as being “job-killing”  (a claim based partly on Congressional Budget Office findings that Obamacare would reduce the size of the American labor force by perhaps 800,000 people). The Post‘s Dana Milbank seems to think that criticizing the killing of an inanimate object (like a job) is violent rhetoric, and he recently wrote a long, sanctimonious editorial devoted almost entirely to the alleged incivility of referring to Obamacare as “job-killing,” which he regards as rhetorical “poison.”

Since the big-government policies they favor typically wipe out jobs  (like the $800 billion stimulus package, which wiped out jobs in America’s export sector, while subsidizing foreign green jobs, and which the CBO admitted would shrink the size of the U.S. economy in “the long run“), it’s not surprising that liberal journalists like Milbank would want to squelch discussion of “job-killing” policies.

Morning Media Summary

by Lee Doren on February 7, 2011

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

Tech:

Internet is easy prey for governments:
“For all that the revolution in Egypt tells us about the power of networked media to promote bottom-up change, it even more starkly reveals the limits of our internet tools and the ease with which those holding power can take them away.”
EA Simulates 2010 NFL Season, Predicts Super Bowl Champs:
“EA Sports, publisher of the Madden NFL videogame franchise, has taken its latest game iteration (Madden NFL 11) and run through the upcoming 2010 NFL season, offering at least a simulated insight into who’ll be celebrating in Arlington, Texas, after Super Bowl XLV.”

Internet runs out of IP addresses:
“The pool of Internet addresses has officially been drained. Four non-profit Internet administrative groups — the Internet Corporation for Assigned Names and Numbers (ICANN), the Number Resources Organization (NRO), the Internet Architecture Board (IAB) and the Internet Society — said at a press conference in Miami, Florida, on Wednesday that the supply of IPv4 addresses has been depleted.”


Global Warming / Environment / Energy:

Big Green groups tell Obama to tell Canada to Drop Dead:
“A coalition of 89 Big Green environmental groups is urging President Obama to reject Canada’s efforts to secure U.S. approval for construction of the Keystone XL Pipeline, which would bring millions of barrels of oil extracted from Canadian shale formations.”

Oregon state legislature pushes shopping bag ban at start of 2011 session:
“Oregon’s state Senate will be conducting a hearing on Tuesday to determine whether the state should be the first in the union to ban non-reusable shopping bags in all retail outlets. The proposed ban would include both paper and plastic bags, with the exception of paper bags containing at least 40 percent recyclable materials. For those bags, shoppers would have to pay 5 cents per sack.”

Insurance / Gambling:

Barnett to fight federal gambling regulations:
“The Federal Government is working on an overhaul of gambling regulations as part of its deal to secure the support of the independent M-P Andrew Wilkie.”

Health / Safety:

Restaurant Nutrition Draws Focus of First:
“After wrapping her arms around the retail giant Wal-Mart and trying to cajole food makers into producing nutrition labels that are easier to understand, Michelle Obama, the first lady and a healthy-eating advocate, has her sights set on a new target: the nation’s restaurants.”

Economics:

Canadian Dollar Reaches Highest Level Since May 2008 on Economic Growth:
“Canada’s dollar reached the strongest level since May 2008 as the nation’s economy and employment grew more than forecast, boosting confidence in the recovery.”

Huffington Post agrees to $315 million buyout from AOL:
“Huffington Post, the liberal-leaning online news site that has been one of the Internet’s start-up success stories, said it agreed to a $315 million buyout late Sunday night from AOL Inc., the elder statesman of online access and digital content.”

IRS not ready to process many returns until mid-February:
“In the final days of 2010, the IRS announced that, because of last-minute maneuvering on Capitol Hill, the agency won’t be ready to process more than 50 million returns until mid- to late-February. Since most returns demand refunds from the IRS, the delay means millions of taxpayers will have to wait to get their money back.”

Legal:

New tax tab for Rev. Al:
“The Rev. Al Sharpton, who has vowed to clean up his fiscal house, has a new tax lien to pay.”

Sunday Reflection: Does America have a lawyer problem, or a law problem?:
“As someone who teaches at a law school, and sees his students go out into the world, I am predisposed to like law. When I practiced law at a big firm here in Washington, D.C., I enjoyed it and I felt like we helped our clients with their problems, more often than not.”

Labor:

Airport screeners allowed to unionize:
“The Obama administration has cleared the way for the nation’s 45,000 airport screeners to unionize and bargain over a limited number of workplace issues, though not pay and issues related to security. The decision quickly drew fire from Republicans.”

Transportation/ Land Use:

Texas bill gives homeowners tool against eminent domain:
“After years of conflict, the Texas Legislature could be heading toward a long-sought resolution on property rights with a carefully stitched compromise supported by Gov. Rick Perry, key lawmakers and major interest groups.”

“Blue Laws” May Make Super Bowl Fans “Blue”

by Angela Logomasini on February 4, 2011

in Nanny State, Personal Liberty

With the Super Bowl around the corner, many Americans are stocking up on yummy treats — including spirits, beer, and wine. But in some localities and states, consumers had better get their alcohol related-supplies on Saturday unless they want to host a “dry,” Super Bowl event. A number of jurisdictions have Sunday bans on alcohol retail sales (you will still be able to drink at a bar in most cases).

Fortunately, a quick news search reveals that a number of states and localities may eliminate Sunday restrictions.  These include: Connecticut, Georgia, Indiana, South Dakota, some South Carolina counties, some Alabama countries, as well as Fort Lauderdale, Florida, and Oxford, Mississippi.

The main proponents of such limitations are the few retailers who don’t want to be open on Sunday — and they don’t want their competition to fill that void. They partner with religious groups — in a bootlegger-and-Baptist coalition — who think Sunday should be reserved for worship not drinking or even shopping.

Now if you are religious, you might say they have a point. As a Catholic, I understand that the work of shopping on Sunday isn’t really permitted beyond perhaps picking up essentials for a meal. Of course, for me, wine is an essential! But more importantly, those sentiments belong in the private sphere. I can decide not to do my heavy shopping on Sunday, to attend mass, and relax with family — but I don’t have the right to ban commerce on Sundays any more than I have the right to mandate that people attend services. At the end of the day, the pursuit of a religious conviction is only good when it is voluntary.

It’s time lawmakers make “blue laws” voluntary — but doing away with them. Lest they make us blue when we can’t even pick up beer to enjoy with a Sunday Super Bowl event.

TSA Given Approval To Unionize

by Brian McGraw on February 4, 2011 · 1 comment

in Labor, Regulation

As the New York Times says, this is a debate that has been brewing for potentially a decade: the “right” for Transportation Security Administration workers to unionize. The American Federation of Government Employees followed up with a press release praising the decision:

AFGE National President John Gage today released the following statement:

“Today marks the recognition of a fundamental human right for 40,000 patriotic federal employees who have been disenfranchised since the inception of the agency.

Calling the right to collective bargaining a “fundamental human right” is a recent development. This would imply that those who operate businesses do not have the “fundamental human right” of being able to choose which workers they employ, but who’s counting.

The collective bargaining is limited, in that they aren’t allowed to strike or negotiate for pay. Not being allowed to strike is standard in many collective bargaining agreements for certain federal employees. I’m surprised by the lack of ability to negotiate for higher salaries, typically that is one of the defining functions of a union.

The TSA has already shown a remarkable level of incompetence in stopping bombs from getting through (though good luck if you have a nail clipper, those things are dangerous and they’ll get you every time). It seems that the historical argument of not letting them unionize due to concerns with competence, flexibility, etc. should still be correct. Furthermore, if anything, this is an argument that anyone at the TSA should be more concerned with making the appropriate changes such that BOMBS don’t get through security check points before they move onto other problems.

And finally, as Hans Bader notes: the TSA has just stopped its program which allowed “private”  screening companies to take over for the TSA in certain airports. Despite being subject to TSA’s absurd requirements (such as patting down seniors), which really throws out the argument that they’re private, these companies had received much higher performance ratings by its customers. Score one for government bureaucrats.

Afternoon Links: February 4, 2011

by Nicole Ciandella on February 4, 2011

in Zeitgeist

1. Cops are charging a seven-year-old boy for bringing a Nerf gun to school.

2. “Lesson? Before you upset your girlfriend or boyfriend, make sure they do not know how Google works.”

3. This is what happened when the National Organization for Marriage used a comic from a pro-gay-rights artist on their website.

4. NBC has allegedly fired the employee who leaked a 1994 video of Katie Couric not knowing what the internet was. A lesson in internet humiliation all around!

5. Megan McArdle: The Goals and Means of Meth Control

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