Green Jobs

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The Internet is awash with websites promoting green jobs. Unlike regular jobs, green jobs are socially and environmentally responsible. And they are more rewarding and fulfilling. They give the green-collar worker a sense of belonging to something greater than himself. As a candidate in 2008, Barack Obama promised five million high paying green jobs. To green advocates, these jobs have helped implement the green recovery from the "Great Recession." Many tens of millions more will be created to build a new Green Economy that will bring social justice, environmental harmony, and sustainable prosperity to America.

As the Green Economy emerges, our entire infrastructure must be modernized, to bring our systems of agriculture, transportation, manufacturing, education, housing, and so forth into a mellifluous alignment with nature. According to Bright Green Talent, one of numerous companies established to help the green collar crowd, "we have to change everything — the way we live, the way we work, the way we eat, the way we travel, the way we make things." For those eager to begin green careers, it's "a wonderful time to get a green job or become a green entrepreneur." There's no time like the present to prepare for challenges ahead, such as "species extinction, deforestation, sea pollution, desertification, topsoil reduction, and freshwater depletion." And what could be more rewarding and fulfilling than a pat on the back from humanity for staving off "ecological collapse, major conflict, famine, drought, and economic depression"?

Under the new BLS definition, many coal miners, loggers, bus drivers, iron workers, bike-repair shop clerks, and used-record store employees have green jobs.

But back in the real world, there is a problem. Despite a few years of rapid growth in wind-and solar-generated electricity, there is no demand for green jobs. The ambitious, profligate schemes to create a green economy have gone awry. Sustainability is stagnation, even in the green world.

In his 2012 reelection bid, President Obama boasted about his record of creating 2.7 million green jobs, with many more on the way — ostensibly the result of his $90 billion clean-energy stimulus. In reality, it was the result of the Bureau of Labor Statistics (BLS) redefining a green job as any employment with an environmental benefit. Under the new BLS definition, many coal miners, loggers, bus drivers, iron workers, bike-repair shop clerks, and used-record store employees have green jobs.

Based on direct-employment data, however, only 140,000 actual green jobs existed when Mr. Obama was touting 2.7 million. This paltry number included the 910 direct jobs in the solar and wind energy industries that were created by the stimulus program (at a cost to taxpayers of $9.8 million per job). But it also included green jobs that existed before Obama took office. That is, even 140,000 was a gross overstatement. In examining the president's shamelessly deceptive claims, Reason magazine discovered both the paucity and the vapidity of green jobs, and provided a more accurate characterization of our emerging Green Economy:

Surprisingly, the top sector for clean jobs was not installing sleek new solar panels or manufacturing electric cars, but “waste management and treatment” (386,000 jobs). In other words, trash collectors. Rounding out the rest of the top four were “mass public transit” (350,000 jobs), conservation (315,000), and “regulation and compliance,” i.e., government employees (141,000). Should the 21st Century economy really depend on hiring more trash collectors, bus drivers, and bureaucrats?

The growth in legitimate green jobs was embarrassingly grim, even in industries such as solar and wind that had experienced significant growth in installation capacity. According to the Wall Street Journal, in 2012, after two years of a "ninefold increase in solar power . . . solar employment had increased just 28%." In 2008, the wind industry employed about 85,000; by 2012, it employed about 81,000 — a decline of almost 5%.

Today, millions of Americans would be thrilled to land a job producing planet-healers such as solar panels, windmills, or batteries. Unfortunately, most of those jobs have moved to places such as China, where the cost of labor for producing the products is $1.74 per hour — compared to $35.53 per hour for American manufacturers. Thanks to green economists, who didn't think that an enormous labor cost differential would matter, American taxpayers blew $90 billion to create a green manufacturing boom in China, and now pay subsidies to homeowners and businesses to buy China's green products — green sustainability to the geniuses in Washington DC.

True, the present glut of cheap foreign solar panels has benefited many American consumers, as have the generous tax-funded subsidies. And, in recent years, solar panel installation jobs have increased by 20% annually. These jobs, however, pay on average less than $38,000 a year — compared with $52,400 a year, the average pay for manufacturing jobs. On the bright side, installers can think of the $14,400 difference as psychic income, derived from their being socially and environmentally responsible.

Thanks to green economists, who didn't think that an enormous labor cost differential would matter, American taxpayers blew $90 billion to create a green manufacturing boom in China.

Central planners have pushed the green revolution to new heights of crony capitalism — and irony. America's subsidized solar-panel manufacturing industry is unhappy with China's subsidized solar-panel manufacturing industry. Consequently, the US division of solar-panel maker SolarWorld AG, a German-owned firm, is lobbying Congress for protection. But America's subsidized installation industry is happy with cheap Chinese solar panels. In this skirmish, notes a recent Slate article, “The World’s Dumbest Trade War: "one side is wearing an American flag over a German flag, and the other has an American flag draped over a Chinese flag."

Immense subsidies to bring us together in a cause greater than ourselves have, instead, brought the world’s top economic powers to "the brink of a trade war that could cripple a promising industry in both countries, kill jobs, and hurt the environment all at once. It’s a terrible trade-policy trifecta." So much for environmental harmony.

And where's the environmental harmony for our birds and tortoises? Birds crashing into solar panels (or plummeting to their deaths after having their wings "reduced to a web of charred spines" by solar mirrors) are not good for the green image. Nor are dead desert tortoises, whose habitat has been disrupted by tediously sprawling solar farms. And gangly wind farms are worse, swatting more than a half million birds to death annually, including the iconic bald eagle.

After almost six years of throwing billions of taxpayer money at anything green, the excitement is over. Large-scale renewable energy has slowed to a feeble crawl, if not a morbid decline. Of the 365 federal applications for solar facilities since 2009, only twenty are on track to be built; only three large-scale plants are operational. Solar companies are going broke, and projects are being cancelled. Solar energy remains uncompetitive and, for all of the hoopla, contributes less than one half of 1% to the nation's power supply. Declining subsidies (the current 30% investment tax credit, for example, will drop to 10% in 2016) and increasing environmental costs (consider, for instance, the BrightSource Energy solar farm in California's Ivanpah Valley, which has already spent over $56 million relocating tortoises) are driving investors away. The wholesale blade-kill slaughter of birds has jeopardized the wind energy industry's annual subsidy ($12 billion in 2013).

Some green job promoters may be thinking, "Well, at least things can't get any worse." If so, they are wrong. The lawsuits are starting. There's nothing like a lawsuit to increase project costs, scare off financial backers, and kill green jobs. Recently, the Justice Department (taking time from its hectic fossil fuel lawsuit schedule) brought charges against a Wyoming wind farm that had been killing golden eagles, and won. The victory was small (a puny $1 million fine) but ominous. On its heels, the American Bird Conservancy announced plans to sue the Interior Department over eagle-kill permits that authorize windmill companies to "kill and harm bald and golden eagles for up to 30 years without penalty." This is bad news for green job seekers, and for bird hunters, who could apparently get a 30-year permit instead of an annual license. Bird hunter to Fish and Wildlife clerk: "Yeah, I'll have one of those eagle-kill permits, you know, for my windmill."

Five years of "sustainability" have brought stagnation, even to the green economy.

The EPA has spent over $50 million on 237 green job training programs. Of the 12,800 people trained, 9,100 obtained green jobs — at a cost to taxpayers of $5,500 per job. The Department of Energy has spent $26 billion on green energy loan programs that created 2,308 permanent jobs — at a cost to taxpayers of $11.25 million per job. Evidently, none of the employees works on the 20 million acres of federal land that the Obama administration has made available to renewable developers. Last October, in the first auction of this land for solar development, not a single bid was made. However, some of them may work on the millions of acres that Obama has denied to fossil fuel developers, where they search for reasons to suppress fracking. Yet fracking (on private lands) has created 360,000 jobs, at a cost to taxpayers of $0 per job, while reducing America's energy costs by $100 billion and carbon emissions by 300 million tons.

By 2012, fewer than 140,000 (of the five million promised) green jobs had been created, and these at an enormous cost to taxpayers. The number of legitimate new green jobs available today is anyone's guess. But green job seekers might want to dust off their brown resumes. A search at Bright Green Talent returned 14 green jobs — in the entire country. Damn that “talent” requirement! A similar search at Great Green Careers was more promising, returning 196 openings. But only four of them were full-time positions — in the entire country. Perhaps the other 192 companies were using the 29.5 hour work week Obamacare work-around.

Today, five years after the Great Recession, the general economy continues to stagnate. Economic growth has been stifled by feckless healthcare, energy, and financial reform policies. Despite incessant claims of job growth, jobs have been lost. The labor participation rate (the percent of the working-age population that is working) — the most accurate, and the only unambiguous, measure of employment — has dropped from 66 to 63% during the so-called recovery. And, despite equally incessant claims that we need more of them, there is no demand for green jobs. Five years of "sustainability" have brought stagnation, even to the green economy: shrinking profits, decreasing subsidies, project delays and cancellations, lawsuits, an imminent trade war, and widespread tortoise and bird carnage.

Nevertheless, earlier this month, at a California Walmart, President Obama proclaimed, "We’re going to support training programs at community colleges across the country that will help 50,000 workers earn the skills that solar companies are looking for right now.” That would be bird carcass removers and tortoise herders.




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The Babies are Booming

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According to the Census Bureau, a government agency and therefore one of the sources from which all knowledge proceeds, the post-World War II baby boom lasted from 1946 to 1964. I squeaked in right at the tail end of it. This meant I missed the good stuff: the Summer of Love, Woodstock, all the best riots. Roseanne Conner well summarized what the era meant for those lucky enough to have been born earlier: “Well . . . there was a war going on! Everything was just a lot more fun!”

When I was little, there was a Saturday morning cartoon about the Beatles. I was very surprised when I found out they were real people. In 1968, when Bobby Kennedy was shot, I was genuinely confused. Having already heard quite a lot about the Kennedy assassination, I didn’t see how it could happen to the same man twice.

I like these kids. They don’t take anything at face value. When they spot an injustice, they capture it on their ever-present smartphones and send it into viral immortality.

Those were chaotic, frightening, fascinating years to be a kid. Though I was only 7 when the decade ended, the spirit of freedom had gotten into my blood. I couldn’t wait to become a teenager and do all the great things that had made youth so exciting for my sister and the older siblings of my friends. But high school throbbed to the inane beat of disco, and in my college years, former flower children advised me that all the fun was over, so if I really wanted to have a meaningful life, I’d need to make piles of money. Our elders would yell at me and my friends about “you kids” and how horrible we were — not because of anything we’d ever done, but because of the antics of those who’d gotten there before us. They kept vigil over us like vultures, just to make sure we never got to do any of it.

Eversince the ’60s crashed into the ’70s and burned to cinders, the baby boomers have been pining for the era’s rebirth. When each new generation comes of age, they urge the youngsters to restart the revolution. The boomers are getting old, but their hope remains forever young.

They think they may be seeing the resurrection among the “millennials.” I agree, but I doubt the wilting flower children will recognize themselves in the current crop. The spirit animating today’s youth is one that the oldsters long ago disowned.

According to one of those ancient sayings the boomers love to quote, we can never step into the same river twice. As a fresh generation sets out to reform the world, it looks very different from what’s been expected by those who grew up in the shadow of the Second World War. These aren’t the children of the GIs who battled tyranny overseas; they’re the grandchildren of those children. The boomers pretty much depleted the store of goodies lavished upon them, and left little for those who come after. Today’s youngsters have to make their own breaks.

I see the Age of Aquarius as a time of promise yet to be fulfilled, though I disagree with the boomers about what that might mean. They evidently imagined it would signal the complete takeover of society by a big, benevolent government, run by Those Who Know Best. There’s always been a strain of that in their thinking. They seem to have forgotten that all through the ’60s, running parallel to that river was one of an altogether different color.

Whatever happened to the maxim that all authority should be questioned? What happened to a wide-eyed inquiry into the world, which accepted no truth secondhand? I haven’t seen very much of that until lately, but more and more I see it in today’s youth. I’m happy to say I probably won’t turn into one of the sour old people who grouse about “those kids.” When I spend time around teens and twenty-somethings, I come away feeling hopeful.

I like these kids. They don’t take anything at face value. They’ve been using computers since they were in diapers, and they connect to each other, via the Internet, with a facility that seems almost occult. Nobody’s going to put anything over on them. When they spot an injustice, they capture it on their ever-present smartphones and send it into viral immortality.

They’re not much impressed because some tired, graying frauds burned their draft cards 40 years ago. Haven’t these same onetime antiwar crusaders complacently permitted a war to drag on in the Middle East for over a decade? A war that has taken the lives and limbs of many in the millennial generation? That war was, evidently, only bad when a Republican was Commander-in-Chief. Since its headship switched parties, there’s been nary a grump from Gramps.

Today the Boomers as likely to reminisce about the cool concerts they attended as they are about the protests in which they marched. Many never showed up at the protests at all.

Kids have a built-in BS detector. They can see through a sham. I always wondered why the big kids had so many obviously great ideas, but squandered every chance to make themselves coherently heard. They never seemed to decide whether they wanted to drop out or fit in. Whether to change the world, get laid, or get stoned.

Today they’re as likely to reminisce about the cool concerts they attended as they are about the protests in which they marched. Many never showed up at the protests at all. Getting their heads busted would have been a bummer. Better to let government change the world. As they surrendered more and more of their self-confidence to Big Brother, they settled into a state of complacency they’ve never left.

This hardly seems the same bunch who gave us “Alice’s Restaurant.” Alice has closed her doors and boarded the windows. Perhaps her grandkids will reopen the place as an Internet café. If they do, I’ll be at the corner table.

Maybe it took a kid’s eyes to see the promise of the ’60s clearly. I was too young to get laid, or stoned, or to go to any of the really far-out concerts. I’m just old enough to remember.




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An Amish Funeral

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R.W. Bradford, founder of this journal, loved the unusual features of America and its people, and always sought articles about them. When he didn’t find good articles, he wrote them himself. Liberty has always been especially interested in the variety of communities Americans have created. As Isabel Paterson observed, even “closed communities” can succeed in America, because they are embedded in an open society. Paul Hochstetler is a descendant of an Amish community. He presents an inside-outside view of a place and a people in northern Indiana, observed when he took his 91-year-old father to the funeral of his father's sister-in-law.

— Stephen Cox

“Sis kalt du-miha,” said the man as he and his two small sons sat on the bench next to me. In my brain began the 1-2-3 count as I processed this statement. Then, recognizing the meaning ("It's cold this morning") and breaking the flow of Deitch, I agreed, and indicated that was why I was still wearing my hoodie. Though it was dark blue and I was wearing a white shirt (heavy, not dress) and black jeans, the clothing still looked a bit too flashy — too Anglish.

That wasn’t the first Deitch addressed to me that morning. One of Uncle Lonnie’s boys greeted me with “Hochstetla” as he shook my hand. I thought of Number Two at work who often barks out a last name as a greeting. Or was he playfully introducing himself? Perhaps he was identifying me as “one of them.” I thoughtfully raised my finger to my cheek as I replied in Deitch, “I believe I am.”

Roads that day were much clearer than I had anticipated. Still, getting there had adventure potential. Service begins at 9:00 a.m. on January 3, at Herman Miller’s, I was told. Yet, the location was a mystery even as my father and Iset out at 7:20 for the funeral of Aunt Katie.

Visions of crisscrossing LaGrange County roads appeared before me. We’d stop at every house that looked funereal, eventually staggering in ten or 20 minutes late. But Dad had his plan . . . revealed as we drove. Go to where Willis and Katie, my aunt and uncle,had lived (at a son’s home) and see if anything can be learned there.

The plan’s flaw was that he couldn’t remember exactly which road east of LaGrange led to this home. So we went several miles too far and zigzagged our way back in the bright morning sun. Soon we saw a buggy and assumed it was headed where we wanted to go. We passed it, and over a hill was another buggy. Dad suggested hailing them, but their side curtains were tightly drawn against the cold.

Then a van came down a crossroad — probably an Amish-transporter. We were not surprised because there are many who make money by taking groups of Amish to reunions and funerals. Many cross state lines with their cargo. He turned in our direction, so we stopped him. Yes, we were very close. In fact, the house was about one-quarter mile from the Hochstetler place we had originally sought.

When the last two rows behind me returned, one man began to sing a mournful phrase and “suddenly there was a multitude” — the choir.

The service began at 9:30 and this was not the Herman Miller place. The (apparently added-to) shed used for the funeral had three rooms and a cement floor. Scattered about were several radiant heater discs attached to propane tanks. A large tent had been erected next to the shed area (how did they get those stakes pounded into the frozen ground?), but the tent was not used for the funeral. Perhaps it was part of the viewing that had begun on New Year’s afternoon. Surely not overflow, because anyone in there would not have been able to watch and listen through closed-circuit TV. A port-a-potty was outside and I was reminded of an outhouse.

Dad was seated next to Aunt Ellen in the siblings’ area near a stove. People continued arriving and the rooms became warm enough. A group of teenaged Amish boys slid into the row behind me at about 9:25. I wondered if they had been outside being young or perhaps helping with the incoming horses and buggies. The last two rows in “our” room were filled with what was later revealed to be the male choir.

The first preacher stood, beginning tentatively but becoming stronger. His style made me think of a chant. Not a lulling chant, but more of a harangue. It clearly was not his conversational voice. Uncharitably, a passage from Elmer Gantry sprang to mind: “What a rotten pulpit voice the poor duck has.”

He spoke for 35 minutes, and the next man — much easier to listen to — went on for 50. Of course, only the occasional word or phrase was recognizable, along with several Bible stories.

Suddenly there was a swooshing of clothes and scraping of feet and benches as all rose, knelt, and flung themselves across the benches for a prayer. I reacted as quickly as I could. After that there must have been a scripture reading, because twice everyone genuflected (“at the name of Jesus every knee shall bow”). This too took me by surprise, because I didn’t properly hear the words. (I also remembered that at the funeral of Aunt Ellen’s husband, Dad was next to me and when the appropriate moment came, he placed his knee behind mine to make me “go down.”)

It was during this reading that all the women on our side turned around. I didn’t see it happen on the other side (and the third, smaller room was completely out of sight) but Ellen seems to think it did. Some inquiries did not yield a definite answer about this practice but two persons thought it dated back to early Anabaptist gatherings in Europe when it was important to watch for persecutors. The second preacher said that was probably why, but (and this seemed the compelling reason), “we’ve always done it this way.”

The minister continued with a reading of the obituary (“gross-kinna”), and the “undertaker” removed the top portion of the lid. That was the signal for all to file past. When the last two rows behind me returned, one man began to sing a mournful phrase and “suddenly there was a multitude” — the choir. It was a four-line song (I was later told the last two lines were the same on every verse). At the end of the verse, without a break, the next phrase was soloed, followed by the entry of the choir.

They sang while the rest of the gathered made their pilgrimage. Then the undertaker came to their row and gave a sign (though not the dramatic finger across the throat that I anticipated), and they stopped at the end of the verse. The family had their final viewing, the lid was replaced, wraps were brought to the family, the pallbearers picked up the casket, and the service was over.

Dad went to the cemetery in a van — red with a front license plate proclaiming “Mama’s Fire Truck.” This was another van which had been used to carry Amish to the funeral.He told me later that a tent had been erected that reduced the wind, but there was a bit of a battle to loosen the frozen top of the dirt when they were refilling the grave.

In gazing over the group I was reminded of penguins: all the dark dresses and white coverings and the white shirts with dark suits.

Immediately after the departure of the Amish hearse (a two-seat buggy with an extension on back for carrying the casket), tables replaced the benches in the smaller room and the food was arranged on both sides of the tables. This setup became the dual assembly line as each woman filled a compartment of a Styrofoam tray and passed it forward for the eventual recipient.

I’d like to say, quoting Dickens’ Christmas Carol, “O the pudding,” but there was none. It was the standard Amish funeral starch festival: white bread bologna sandwich (lightly coated with mayo or, more likely, sandwich spread), a slice of cheese on the side, a cup of chicken and noodles, potato salad, a hunk of jello with fruit cocktail, and a cupcake. Still, very good on a cold day.

I told Dad not to be rushed and stay as long as he liked. Meanwhile, I wandered around and talked to a few people — most of whom began with the question, “Are you Paul”? I also re-met Paul Hochstetler — one of Uncle Omer’s sons and was reminded of how Uncle Omer copycatted Mom and Dad with the names Lamar and Paul for his kids.

In gazing over the group I was reminded of penguins: all the dark dresses and white coverings and the white shirts with dark suits. Two other impressions: too many women looked stoop-shouldered at an early age and too many men had bad teeth. But whatever else one thinks, they do have a strong community.




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Inequality: The Democrats’ Defining Issue

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Those of us who have been troubled by issues such as economic decline, unemployment, public debt, healthcare, foreign policy, and federal power should know that our worries have been misplaced. President Obama now tells us that income inequality is the principal concern — the "defining issue of our time," he says. It's a timely discovery, what with America's victims of inequality looking ahead to the November congressional elections.

The Democrat Party (protector and savior of all such victims) had to choose between inequality and the unfolding Obamacare debacle. That was a no-brainer. Naturally, Joe Biden made the call, counseling that "income inequality is our issue this year." After six years of rewarding the rich and punishing the poor and middle class, newly impassioned Democrats declared inequality as their battle cry for 2014. Why not? Six months of melodramatic hypocrisy spent on attacking plutocrats is wildly preferable to six months of cognitive dissonance spent on defending Obamacare.

In a speech last December, Mr. Obama launched his new crusade against patrimonial wealth, promising to devote the remainder of his presidency to this "dangerous and growing inequality." It is a phenomenon he has observed for many years — perhaps as early as his first reading of Das Kapital. His monologues on the subject (e.g., his notorious December 2011 Osawatomie, Kansas speech) voicethe deeply felt, though tacit, theme that capitalism is to blame for the widening income gap between the rich (the bourgeoisie) and the rest of us (the proletariat). He presents his observations as evidence both of capitalism's failure and of his fervid concern for correcting its excesses. And there is what he doesn't say, what he would like to exclaim with glee: that Karl Marx was right.

It is difficult to imagine any set of policies that could punish our economy and darken our future as much as the Democrat policies have.

Because of capitalism, the president tells us, "the basic bargain at the heart of our economy has frayed." To Obama, free market capitalism is a mysterious, chaotic game in which the winners prosper through deceit and theft, allowing but a meager share of their vast wealth to trickle down to the poor and middle class. It's a "theory," he says, that "fits well on a bumper sticker," but "it doesn’t work. It has never worked." Who — apart from Vladimir Lenin, Joseph Stalin, Mao Tse-Tung, Fidel Castro, and Paul Krugman — could have put it better?

In his economic homilies, Obama excoriates capitalists who tell us that "the market will take care of everything" and that "if we just cut more regulations and cut more taxes — especially for the wealthy — our economy will grow stronger." He laments that "a family in the top 1% has a net worth 288 times higher than the typical family," while"a child born into the bottom 20% has a less than 1-in-20 shot at making it to the top." He reminds average Americans of deep frustrations "rooted in the nagging sense that no matter how hard they work, the deck is stacked against them." Marx could not have taken a more sinister view.

But the capitalism Obama decries is not free market capitalism. The latter predated his selective observations, performing marvelously well for America's first two centuries. The capitalism that Obama rails against is the patriarchal, democratic crony capitalism that politicians of his ilk (including every president from Lyndon B. Johnson to George W. Bush) created. That system — which is precariously held together by the political influence of the rich and the "fatal conceit" of central planners — has failed, and failed chronically since the advent of the "Great Society." Today, after five years of eco-socialism, Obama outshines all his predecessors. The inequality gap has become so intolerably large under his stewardship that he himself declared it as a national issue. Well, somebody had to do it.

During his 2012 reelection campaign, Obama told audiences what the weak regulation of the Bush administration had accomplished: "Insurance companies that jacked up people's premiums with impunity and denied care to patients who were sick, mortgage lenders that tricked families into buying homes they couldn't afford, a financial sector where irresponsibility and lack of basic oversight nearly destroyed our entire economy." As 2014 election campaigns begin, voters who were among Obama's cheering crowds in 2012 may ask what the strong regulation of the Obama administration has accomplished. They, and Democrat candidates, won't like the answer.

In 2007, the share of the nation’s income earned by the richest 1% was 18%. Today, that elite group's share has increased to 22%. Ninety-five percent of the income gains since Obama took office have gone to the top 1%. Yet, during that period (aka, the "recovery"), median annual household income dropped by 4.4%, the number of people in poverty increased by 6,667,000, and Democrats, with a new battle cry but still blaming George Bush, gained 100% of the nation's inequality bullshit.

The tax and regulate policies of Democrats (Obamacare, Dodd-Frank, EPA and DOE regulations, to name a few) are wreaking havoc on the very groups they are supposed to help. A March 2014 report ('The Irony of ObamaCare: Making Inequality Worse”) declared that Obamacare "threatens the middle class with higher premiums, loss of hours, and a shift to part-time work and less comprehensive coverage." It was published by a labor union — one of many angered by Obamacare. With the Dodd-Frank reforms, minorities, low-income people, and the young are being shut out of mainstream banking. The economic impact and regulatory compliance cost, estimated to be $1.9 trillion annually, will be passed on to people in the middle class, who haven't been shut out — yet.

For black Americans, the poverty rate has increased from 12% in 2008 to 16.1% today; their unemployment remains twice the rate for white Americans. According to radio talk-show host Tavis Smiley, "the data is going to indicate sadly that when the Obama administration is over, black people will have lost ground in every single leading economic indicator category."

Meanwhile, the stock market is doing well, for the rich; the S&P 500 is up 52.8% since the passage of Obamacare in March 2010. How have health insurance companies fared — companies that were allegedly jacking up people's premiums with impunity and denying care to the sick? The top five are up 100.7%. And what about banks, which were allegedly tricking families into buying homes they couldn't afford? According to a February 2014 FDIC report, their profits are at an all-time high.

Democrats argue that the inequality gap would grow wider under Republican leadership. Not to defend Republicans, but it is difficult to imagine any set of policies that could punish our economy and darken our future as much as the Democrat policies have. When it comes to the advancement of inequality, Democrats are unrivalled. Clowns could do no worse.

For black Americans, the poverty rate has increased from 12% in 2008 to 16.1% today.

Clowns would come up with better ideas than Obama's latest offerings: inequality busters such as “equal pay for equal work,” universal preschool, and raising the minimum wage. They would know that impoverished burger flippers making $7.25 an hour would remain in poverty at Obama's recommended pay of $10.10 an hour, as would the half million people who, according to the CBO, would lose their jobs as a result. Clowns would reject the assertion that women earn only 77% of what men earn for the same work. Male clowns would worry about the wholesale job losses and wage cuts that would ensue if employers acted on the idea that they are overpaying men by 23%.

Then there are Democrat anti-inequality panderisms such as the "Stop Subsidizing Multi-Million Dollar Corporate Bonuses Act," sponsored by Senators Blumenthal (CT) and Reed (RI). Can an Occupy Wall Street pleaser such as the "Use Congressional Authority and Oversight to Ensure that Appropriate Federal Agencies Fully Investigate and Prosecute the Wall Street Criminals Act" be far behind?

The policies of Democrats, however well-intentioned, have backfired. They have exacerbated inequality, a result that, after almost six years of economic stagnation, high unemployment, staggering debt, grinding income decline, etc., clowns would notice. If for no other reason than comic relief, they would reject Democrat ideas — all two of them: redistribution of wealth and regulation of everything.

Clowns would tease us with a little free-market capitalism and tickle us with our own newly discovered energy bonanza, especially the vast taboo region lying fallow beneath federal land. After all, there is no clown ideology against fossil fuels. Besides, clowns would be awestruck by the giant nodding donkeys erected on private land, producing enormous wealth and prosperity in places like Texas and North Dakota. Think of the chuckle that clowns would get from telling a burger flipper that, while he waits for Obama's $10.10 an hour to kick in, he could work at a MacDonald's for $18 an hour . . . in North Dakota. Then there's the sidesplitter involving a blue-collar guy who makes $80,000 a year driving a tanker truck full of Bakken shale oil from the Williston Basin to refineries in the South . . . because Obama won't use his pen and cellphone to approve the Keystone XL pipeline.

The rich do very well under Republican or Democrat administrations. Has it ever been otherwise? But under the Obama administration, the rich have grown extraordinarily wealthier, and the inequality gap has grown extraordinarily wider, than under the Bush administration. The stimulus, Obamacare, Dodd-Frank, EPA and DOE regulations, and other Democrat policies — all big (federal) government efforts, promising to humble the rich, uplift the poor, and strengthen the middle class — have nefariously combined to produce the opposite effect. As the mid-term elections near, "Redistribute and Regulate" bumper stickers won't make many voters think that Democrats will do any better than clowns to shrink the inequality gap. The real challenge for Democrats is not to stamp out inequality, but to escape from the dark shadow of Obama's anti-capitalism, anti-fossil fuel, eco-socialist ideology, where most candidates are discovering a "nagging sense" that "the deck is stacked against them."

/em




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Catastrophe, Doom, and Oblivion

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Lately, the climate change movement has been celebrating. A recent International Panel on Climate Change (IPCC) report expressed 95% confidence that half of the warming during the previous 60 years was manmade. In January, the EPA ruled that new coal plants must install carbon capture and storage (CCS) technology — technology that is not yet commercially viable (take that, climate deniers). Then there is the accumulation of almost 500 climate-related laws passed in 66 countries. According to Sen. Ed Markey (D-MA), "This surprising legislative momentum is happening across all continents. Encouragingly, this progress is being led by the big emerging and developing countries, such as China and Mexico, that together will represent 8 billion of the projected 9 billion people on Earth in 2050."

Riding the new-found momentum, climate change elites have sprung into action, reinvigorating the war on carbon and climate deniers. President Obama is conducting a regulatory version of Cap and Trade (legislation that failed to pass during his first term). He even has his own "Climate Change Action Plan." Senate Democrats are holding climate talkathons. John Kerry plans to broker a deal "committing the world’s economies to significant cuts in carbon emissions and sweeping changes in the global energy economy." Climate luminary Joe Biden theorizes, "It would be nice not to have any carbon fuels." To Al Gore, taxing carbon is not enough. "Tax denial," he chortles.

The policies of the past 25 years have failed miserably in reducing global greenhouse gas emissions.

But, the bravado and self-congratulatory rhetoric is a veneer, hiding an astounding lack of planet-saving progress. So too are the pompous slogans and the grandiose policies, built on a delicate foundation of "settled science," "social justice," and wishful thinking. They mask an astounding ignorance of global energy consumption and production trends, not to mention economic realities. God forbid they are celebrating the progress they expect from Obama's action plan and Kerry's climate deal. Their schemes offer nothing new, unless climate scientists discover a way for pompous slogans to reduce GHG emissions.

A litany of ambitious carbon reduction promises and sophomoric flat-earther insults is not a measure of actual planet-saving progress. Nor is a litany of vain and, at best, nebulous "accomplishments" such as laws passed, treaties discussed, money spent, solar panels and windmills produced, and green jobs created. What is the actual effectiveness of the policies? Are we on track to keep GHG emissions below 450 ppm by 2050 (to avert the "carbon tsunami" and our fall from the "climate cliff")? How much do we have to pay developing countries as climate change compensation? How much will it cost to prevent the catastrophic 7.2-degree Fahrenheit global temperature increase that some authorities predicted to occur by 2100? Will these amounts be sufficient to finally save the planet?

One hopes that what is past is not prologue. The policies of the past 25 years have failed miserably in reducing global GHG emissions. They include 20 years of generous subsidies for renewable energy and the splurge of $150 billion in loans to green energy companies such as Solyndra, Abound Solar, Evergreen Solar, and A123 Systems. The current European Union plan (EU 20/20), said to be the world's most significant climate policy, will cost $20 trillion through the end of the century and would reduce the global temperature by 0.1°F. $20 trillion for a 0.1°F decrease? What about the other 7.1 Armageddon-like degrees?

Perhaps Obama's Climate Action Plan — constructed with similar haste, method, and disdain for economic and scientific realities – will be more effective than the EU 20/20 plan. Whatever he has in mind, it had better work fast. At the 2007 Climate Change Conference, U.N. Secretary-General Ban Ki Moon proclaimed that the world is at a crossroads, where "one path leads to a comprehensive climate change agreement, the other to oblivion. The choice is clear." We must choose soon: "The situation is so desperately serious that any delay could push us past the tipping point." What has been accomplished since? No new treaties (toothless or otherwise). The Kyoto Protocol, still the world's only climate change treaty, has actually weakened. Russia, Japan, and Canada have recently dropped out — despite Obama's 2008 heal-the-planet speech. The officially designated rescue fuels (solar, wind, and biofuel) account for less than 2% of the world's energy supply; oil, gas, and coal account for 87%. GHG emissions are increasing, faster than ever. Evidently, we opted for oblivion.

By replacing coal with natural gas, the shale-energy revolution has reduced US emissions by 300 million tons — an amount that exceeds the world's total reduction from solar and wind power combined.

According to a recent UN study, thanks to the abysmal failure of world governments to reduce greenhouse gas emissions, we are probably doomed. English climate change scientist James Lovelock more than agrees; he believes we're only 40 years from global catastrophe. Unlike American climate gurus, Lovelock may have noticed the ongoing global energy shift in which developing countries are expected to consume 65% of the world's energy by 2040. Of all experts, Mr. Obama should have noticed that the developing world is hurtling into the future, furiously burning every calorie it can find of what he calls "yesterday's energy."

As this trend — said to "foreshadow a climate change catastrophe" — intensifies with the population growth of developing countries, other climate change experts warn that the end could come even sooner. Tokyo governor Shintaro Ishihara speculated, "It could be that the 2016 Games are the last Olympics in the history of mankind." Holy shit! No wonder Obama doesn't have time for meetings with the "Flat Earth Society."

This is a glimpse, from the world of climate change believers, of the effectiveness of the policies of their revered political leaders: catastrophe, doom, and oblivion, arriving ahead of schedule. Damn those flat-earthers.

In the real world, however, most people don't see the coming climate havoc with such clarity, or any clarity. Among the reasons for this hazy, infidel view: the temperature trend that produced the Kyoto Protocol of 1997 began to fade in, well, 1998; global temperatures have not increased in the 16 years since 1999. But climate change believers see it; they predicted it — all the horror that, for decades, they have been attributing to climate change. And they see the failure. Yet they refuse to see the vivid connection between paltry emissions reduction and futile policy.

The failure to save the planet is not the result of insufficiently apocalyptic warnings or public ridicule directed at uncooperative climate change deniers. Those who are unaware of the earth's curvature and temperature are irrelevant — all ten of them. Rather, it is the 6.9 billion people (of the 7 billion inhabiting the planet), who pay little, if any, attention to the incessant, shrill, vile, delusional hyperbole of the clueless climate-change elite. They are too busy dealing with bigger problems. The vast majority of people in the industrialized world are much more troubled by economic stagnation, unemployment, and debt. People in the developing world are consumed by the problems of poverty, famine, oppression, ignorance, despair, and natural disasters, to name a few — all the while struggling to be like their industrialized brethren. And when they become industrialized, they will switch to worrying about economic stagnation, unemployment, and debt. Only after that will they worry about climate change. Possibly.

Then there is the irrational insistence that renewable energy, alone, must save the planet. It is clear to anyone, except the political ideologues who long ago hijacked the global warming movement, that solar panels and windmills are not up to the task. At present, only subsidy and delusion sustain them. And who else but boneheads with a pie-in-the-sky political agenda would blithely dismiss more intelligent, proven technologies (natural gas and nuclear power) that could drastically reduce GHG emissions. For example, by replacing coal with natural gas, the shale-energy revolution (not the Obama green revolution) has reduced US emissions by 300 million tons — an amount that exceeds the world's total reduction from solar and wind combined — while reducing American energy costs by $100 billion.

Last September, in Why Climate Activists Need to Dial Back on the Panic, environmentalist Bjorn Lomborg lamented, "Our climate conversation has been dominated by fear and end-of-the-world thinking." He recommended that "instead of being scared silly, we need to realize that global warming is one of many challenges to tackle during the 21st century and start fixing it now with low-cost, realistic innovation." Maybe there is hope for the global warming movement.

There stood the imperious and clueless Kerry, trying to scare people who live in a "ring of fire" into worrying about a little carbon-induced warming.

Maybe not. Only a few months later, John Kerry descended upon Indonesia, brandishing global warming as a weapon of mass destruction (WMD), and promptly accused climate deniers of "burying their heads in the sand." Kerry, no doubt, thought that punching up his vapid climate change rhetoric with an edgy WMD metaphor would persuade Indonesians to turn down their thermostats and pump up their tires. Except that in Indonesia, where the average annual income is barely $3,000, most people don't have thermostats and tires.

Kerry also seemed unaware of the volcano that killed several people just two days before his arrival, and that Indonesia is located in the "Pacific Ring of Fire," so named for its deadly and frequent earthquakes and volcanic eruptions. But there stood the imperious and clueless Kerry, trying to scare people who live in a "ring of fire" into worrying about a little carbon-induced warming. Perhaps his "most fearsome weapon of mass destruction" embellishment will have more success in China, which accounts for almost 60% of the recent increase in global coal consumption, or in India, where the average annual income is $984.

For anyone who is serious about reducing manmade GHG emissions, there is nothing to celebrate. John Kerry (and his ilk) can offer nothing but catastrophe, doom, and oblivion to the global warming crusade.

#39;s energy.




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The Mystics of Magic and the Mystics of Science

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In John Galt’s climactic speech in Atlas Shrugged, Ayn Rand describes two foes of capitalism, the “mystics of the spirit” (or, as Rand also put it, “witch doctors”), who promote religion, and the “mystics of muscle” or “Attilas,” that is, especially, the communists, who are atheists and promote Marxist materialism as the antidote for religion. What gets lost in a lot of libertarian theory is the fact that, to take Rand’s idea and expand on it, people who believe in rationality, science, and technology are not necessarily friends of liberty. Indeed, precisely the opposite is often true. Some of capitalism’s most vicious enemies have come from the ranks of scientists and technologists.

Two types of mystics do exist — whom I prefer to call the mystics of magic and the mystics of science. The latter are my main subjects here.

I am an atheist. Not only do I not believe in God, but I am also of the rather abnormal (but increasingly popular) sentiment that the proposition “I know that God does not exist” can be rationally justified, i.e., atheism is knowledge and not mere belief. However, many of the people who share my view go in the opposite direction and elevate science into a new religion. Here I refer not to the cult of Scientology but to the scientific atheism of, for example, famous philosophy professor Daniel Dennett.

Let me offer two examples.

First, in a Facebook group that discusses philosophy I recently saw someone say something like this: “bitterness and sweetness do not exist, what exists is atoms and void, and sweetness is an illusion.” This assertion was provided as a scientific approach to philosophy, but it manifests a desire to transform science into a new religion, a mysticism of science. Such a religion would depict the world you and I perceive as an illusion. Instead of saying that access to the hidden truth of reality is revealed by God and the Bible, the mystics of science say that revelation comes from reading science textbooks and scientific journals and knowing the results of experiments and research studies.

Some of capitalism’s most vicious enemies have come from the ranks of scientists and technologists.

Mystics of science love to talk about how neurobiology has figured out all the ways that the human brain is flawed and perceives illusions. Yet, as I explain in my book The Apple of Knowledge, the truly scientific attitude is that the sweetness of an apple does exist objectively in reality, in that the apple’s sweetness, and the apple itself, which physically exists in objective reality, are one and the same thing. The apple’s sweetness is what that collection of atoms tastes like when it acts as a whole upon the tongue’s taste buds. In other words, qualia exist, but they are not subjective; instead the experience of something that physically exists is identical with that thing in itself, because the brain’s means of perception do not alter or create the objects that are perceived. (This is the tip of iceberg, and I needed 400 pages in my book to explain what I mean; the theory is fully developed there.)

The mystics of science would reply that I am ignorant of the fact that taste comes from smell and not from taste buds, so the taste in the mouth must be an illusion. To this I reply that these hate the idea that human beings have direct access to knowledge of objective reality. I say that we can know what an apple tastes like by eating it; the idea that we cannot know, that sweetness is an illusion — this is sheer mysticism. In my opinion, these mystics of science are far worse than the mystics of magic, because at least the religious mystics are open and honest in their commitments.

Second, Daniel Dennett, a popular advocate of the movement called “New Atheism,” has expressed a position that I call “biological relativism.” This, basically, is the idea that reality looks the way it does because the human body and human sensory organs evolved in such a way that we humans experience this world of our experience. He has actually said that apples look red because the human brain evolved to sort edible objects by color, so that redness comes not from the apple but from the evolution of the human digestive system as expressed in the human brain’s hunger regions. This means, ultimately, that the sky is blue because blueberries are blue. (See Dennett, Consciousness Explained [1992].) If that is true, then the world we experience is entirely relative to perception, is completely subjective, and is a creation of the human brain. This, to me, means that access to objective existence is impossible, since we could never get outside our brains to see reality as it exists objectively.

The only thing about Dennett’s idea that is scientific is the allusion to evolution and the brain. In every other respect it is mysticism, because it denies the possibility that human beings have direct access to objective reality by means of perceiving the external world. Taking my cue from Rand, I dispute any position which defends that idea, considering it not only false but unscientific. The experience of an apple’s redness and the physical reality of the apple are identical, not such that the apple itself is subjective, but such that the experienced apple is objective. Redness exists in physical objects and is not a subjective creation of the eyes, despite all objections from the mystics of science, who would lecture me about the workings of the retina, the optic nerve, and the occipital lobe. Mystics of science might say that the depth and length we perceive are illusions because our brains and eyes process the data subjectively — despite the fact that measurements of space and time recorded by scientific instruments are accurate and objective, e.g. a building could be 100 feet long but our eyes cannot see this clearly.

The mystics of science hate the idea that human beings have direct access to knowledge of objective reality.

Kant once helped to save religion from science by persuading people that the experience of reality is subjective and knowledge comes from intuition. Dennett, in the name of science, simply buys into this Kantian error. To me, if reality is subjective, then wishes and thoughts can control it, which is a religious worldview that tells people to seek to change their lives through the power of prayer. In contrast, if reality is objective, then it exists outside the mind, in which case science and technology are the correct approach to improving human existence, and Francis Bacon’s maxim “nature, to be commanded, must be obeyed” is justified because the mind must obey reality in order to succeed. A true philosophical science says that we must learn about reality by observing the external world, instead of trying to use our minds to impose subjective phenomena onto reality. (Again, these are complicated ideas that cannot be presented in one short essay, but I try to explain it fully in The Apple of Knowledge.)

Now let me explain why atheism has very little to do with libertarianism and, contrary to Rand’s assertions, why there is no direct correlation between rationality and freedom. This is obviously true because, historically, the Marxists were (mostly) atheists, and the conservatives who have fought against socialism in America are (mostly) Christians. For one poignant case study, note that the famous science fiction author H.G. Wells was a notorious socialist, as were many men of science of his era. The trend continues to this day, as antisocialists tend to be religious, and socialists and modern liberals tend to be secular.

In The Road to Serfdom, F.A. Hayek tried to explain why men of science tend to be socialists. He argued that scientists seek order and patterns in reality, and this leads them to try using government to impose their ordered plans and schemes onto society; this is a recipe for socialism, especially in the context of the Hayekian belief that freedom is consistent with an order spontaneously emerging from chaos. Just as a scientist might want to design a new plan for a car engine to improve fuel efficiency, a scientist might also want to design a new plan for an economy to improve allocations of wealth. The problem is that a car engine is a mindless tool, whereas an economy is a collection of thinking human beings, each with his or her own plans, standards of “improvement,” and rights to life, liberty, and property. Many of the bosses at the American government’s regulatory agencies are scientists or technologists with advanced degrees, and many of the nonscientists have degrees in economics and mathematics. The EPA’s regulators are often experts in the science of the environment and pollution, and therefore knowledgeable in chemistry, metallurgy, engineering, physics, etc. But their science does not dispose them to become libertarians.

Being a scientist, or being rational, or being an atheist, has very little to do with political support for freedom. If any group has been more responsible than others for saving America from a descent into total communism, it is the conservative movement, which is fueled by a belief, one which I think on its face is irrational and crazy, that God supports capitalism and the Bible demands that the American patriotic tradition of free market economics be defended. As Hayek has noted in his essay “Why I am Not a Conservative,” the conservatives love capitalism not chiefly because of any of its virtues but only because it is the old, established, traditional system in America. This attitude is not particularly intelligent or rational, but it achieves a practical result — the defense of liberty by a vast portion of the American voters. To cite only one example, the Tea Party in the House of Representatives, backed by the Tea Party conservatives, has done much to stop Obama’s socialist agenda, although there was little it could do to repeal laws that were already passed, such as Obamacare.

Without much exaggeration it can be said that, absent the conservatives, you would not be able just to go to a coffee shop and buy a cup of coffee. Instead, the atheist Marxist central planners, chosen by Obama and his cronies, would assign your beverages to you, just as they want to assign your healthcare to you, and you would drink carrot juice instead of coffee whether you wanted to or not, and see the end of a soldier’s gun if you tried to escape from the socialist plan drinking. You owe your freedom to the Bible, at least to some extent, whether you like it or not.

Being a scientist, or being rational, or being an atheist, has very little to do with political support for freedom.

The best defense of liberty, which most libertarians ignore or are ignorant of, is a Biblical idea, the Golden Rule. This principle of ethics asserts that you should do unto others as you would have others do unto you. In Golden Rule Libertarianism (Hasan [2014]), I argue that the Golden Rule’s implementation in politics is, and can only be, libertarianism: if you desire the freedom to do what you want, you must let me have the freedom to do what I want; but if you force me to obey you, I will be justified in forcing you to obey me, which you cannot possibly want.

In short, the hatred of religion that is felt by some libertarians, especially those who entered the movement through Ayn Rand (but also, to some degree, through Murray Rothbard) is misplaced. If Rand’s “mystics of muscle” idea is taken seriously, then there is a basis in her texts for opposing the mystics of science as fiercely and ardently as we oppose the mystics of magic.

Works Cited

Hasan, Russell. The Apple of Knowledge. Norwalk, Connecticut, Russell Hasan Books, 2014.
Hasan, Russell. Golden Rule Libertarianism. Norwalk, Connecticut. Russell Hasan Books, 2014.
Hayek, F.A. The Road to Serfdom. Routledge, London. The University of Chicago Press, 1944
Rand, Ayn. Atlas Shrugged. New York, New York. Random House, 1957.




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Election in India, World’s Biggest Democracy

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Mahatma Gandhi, when asked what he thought of Western civilization:
“I think it would be a good idea.”

The biggest democracy in the world has started an electioneering process for the next federal government. This massive exercise runs from April 7 to May 12. Euphoria has swept the nation. Foreign Institutional Investors (FILs) are extremely optimistic about India’s future. The Indian stock market has reached its highest ever level.

Comparing India's low growth rate with China's high one, many experts believe that in democracies, growth must be slow — but steady — and eventually very strong. Is India’s moment of very strong growth arriving?

Narendra Modi of the seemingly right-leaning Hindu nationalistic party, BJP, is widely expected to be the next Prime Minister. Before dissecting Modi — to understand the current nature of Indian sociopolitical thought — let’s have a look at a recently emerged party that came out of nowhere aspiring to rule India, won a major election, but then slipped and broke its back, and ended up playing a major role in crystallizing Modi’s prospects.

That new party is the Aam Aadmi Party(AAP). Its key proclaimed interest has been reducing corruption in India. They would like to install a massive new government department with tens of thousands of new bureaucrats with “impeccable” integrity to oversee the conduct of the (rest of the) government.

The more complex a society becomes, the more it needs decentralization of power and the free market.

Those with any experience of India know that it is virtually impossible to find a single honest bureaucrat; moreover, you must constantly deal with extremely dishonest people in the society, which seriously lacks work ethic and integrity. One must struggle with dust and dirt everywhere, for cleaners don’t clean and sweepers don’t sweep. Nothing is done properly, but with expediency and a patch-up mentality. The environment is a disaster. Any concept of quality is conspicuous by its absence. Offering extra money to workers does not help; it merely results in more skipped days. Animals rot and people wallow in filth and disease. Only someone utterly lacking in empathy would not weep at the lack of dignity that even animals must suffer. I wept today, for I failed to get even my servants to treat our dying dog with some basic decency. The vet does not see any value in protecting his eye before spaying antiseptic on a wound right next to the eye.

Can Indians conceptualize what corruption really means?

AAP made a lot of noise and demonstrations against corruption and came to power in the state of Delhi in November 2013. A lot of young and middle-aged educated acquaintances of mine support AAP. They shout against corruption. But then a moment later they have no problems giving a bribe, not only to get a passport or a driving license, for which bribes are necessary, but also to gain an unfair advantage over others. They will worship a cow, garland it, and offer it freshly made food, prostrate themselves before it, sing religious hymns, and lovingly caress its neck. Then soon thereafter, once the ritual is over, pick up a thick, heavy stick and slam it hard on the back of the cow, to make it leave.

The biggest voting block of AAP was the “educated class,” taxi drivers, and housewives. You must constantly haggle with taxi drivers in Delhi. “Anti-corruption” was the taxi drivers’ way to get AAP to stop the police from interfering and extracting bribes for overcharging. Middle-class women voted for AAP because it promised cheap or free water and electricity. These two segments had at least a partly rational, albeit dishonest, financial interest in mind. But the “educated class” failed to connect some very simple dots.

The anti-corruption movement (witness what “holy cow” means in practice, as shown above), was steeped in hypocrisy and irrationality. Deep thinkers might find this unbelievable, for to them it should create such massive cognitive dissonance that the protagonists would be forced to stop at least one pattern of action: either hit the cow or worship it. In reality, there is no dissonance, for such people process the world through pre-rationality. Even a very high-level education can survive on the foundations of irrationality, if what is learned is accepted as a belief, on faith, through rote learning.

AAP soon found that it could not meet the heightened expectations of the masses. People believed that anti-corruption was a magic wand to get free stuff. Moreover, they wanted others to stop being corrupt, but still wanted a free license to be corrupt themselves. The AAP government fell a mere 49 days after coming to power.

Indians now want a strong leader, the latest fashion among voters lacking in rational moorings and a symptom of their keenness to deify someone, hoping to generate top- down growth without effort, on this occasion through leadership rather than any reduction of corruption.

The history of post-English India has shown that the country has done best when its government was weak. Two Indian prime ministers, Indira Gandhi and her son Rajiv, were assassinated in the ’80s. That left the federal government very weak. This weakness, along with a few other circumstances, helped entrepreneurs unleash business activity in the early ’90s. But that lasted just a decade. Socialism reared its ugly face again, for India had never addressed its fundamental problems. It liberalized for a decade, not so much because it saw value in doing so, but because it was cornered into a place where it had no other choice.

The rudderless system that was by default moving in the right direction has now been adrift again for a decade.

Today, the work ethic is weaker and corruption is worse. A decade of distribution of free TVs, bicycles (which can be sold off for alcohol), free grains, and guaranteed government work at higher-than-market wages means that it has become difficult to find workers. With a very high level of uneducated, untrained, mostly rural people, the last thing India needed was people who did not want to work. A heavy sense of entitlement has set in, worse than what was there before.

India’s failure to comprehend causality results in its doing more of exactly what made it a wretched place.

Even in respect to very basic goods, the Indian market is flooded with products from China. While economists might claim it makes no difference whether the economy is oriented toward service or manufacturing, the reality is that factories help society become more rational, for the workers can visually and mentally experience what causes what effects. It teaches them rationality and a sense of causality.

Now to dissect Modi . . . Narendra Modi, chief minister of the state of Gujarat, is a product of identity-lacking, rich, nationalistic, Indian lobbyists in the US. They prefer a romantic relationship with India — from a distance. Gujarat has done relatively well. But that is not because of Modi, but because of the fact that Gujaratis are all over the world. They have brought capital and competencies into Gujarat over the past two decades, in the way that Chinese in Taiwan and Hong Kong brought them into China. Gujarat is a relatively entrepreneurial place anyway, and a reasonably safe place too.

Gujarat would have done relatively well even without Modi, and perhaps much better without him. Alas, Modi has been able to claim credit for growth in Gujarat. He has found a sympathetic place in the hearts of those — particularly in the West — who are worried about Islamic fanaticism.

Under Modi’s government there was a massacre of 2,000 Muslims in 2002, while those in his party roamed around the street unhindered, with impunity. Men were killed, pregnant women’s abdomens were slit open to remove their fetuses, and children were burned alive. Girls were raped and then mutilated. Houses were burned. The US still blacklists Modi for a visa, for his “alleged” offenses. Europe has only recently allowed him in.

Modi will prove a very divisive figure in a nation where 13.5% of the population is Muslim. People will soon realize that he has no magic wand to set India on a path to progress. A strong leader cannot create wealth, even if he were a good guy. Wealth must be created through hard work and systematic thinking.

Technology is advancing very rapidly around the world. Society, as a result, is becoming extremely complex. Any complex system needs distributed intelligence. The more complex a society becomes, the more it needs decentralization of power and the free market. Otherwise, stresses will keep building up in unknown corners of society, to blow up the brittle, totalitarian political structure. India certainly does not need a strong leader.

Indians have very superstitious and irrational ways of processing the world. For now, India’s social problems are increasing. India’s failure to comprehend causality results in its doing more of exactly what made it a wretched place. Perhaps the slow buildup of stresses in the system will make the political system implode one day, starting the process of letting people see causality.

But I hope that Indians — in whatever shape the country’s political geography takes — will one day realize that growth, peace, humanity, spirituality, and prosperity cannot be founded on a strong leader, but on a society of rational, free-thinking individuals with character.




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Universities Are Not Walmart

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Just recently, the e-zine Salon.com ran a piece bearing the provocative title, “The Walmart-ization of higher education: How young professors are getting screwed.” It wins my prize for the most bizarre think-piece of the year.

The author, Keith Hoeller, considers the move in higher education to replace tenure-track professors with lowly adjuncts. To him, this is apparently as shocking as it is surprising.

He begins by noting that various surveys of workers show that tenured professors are a pretty happy bunch. They average over $90,000 a year in total compensation, for only nine months work, and they report low levels of job stress, high levels of job satisfaction, and so on. This is hardly a surprise. Getting tenure means never having to hear “you’re fired.” Tenured professors are virtually immune from termination, no matter how poor their job performance.

The first strange thing about Hoeller’s article is that it isn’t reporting anything new. The shift from highly-paid tenured professors to lowly-paid adjuncts has been going on for decades. The article’s deeper flaw its author’s use of Walmart as a slur.

Yes, Walmart uses a lot of part-time labor, as do most other retail and service industries. (The frequency of part-time work is increasing rapidly as the full implementation of that crazy-quilt law called ObamaCare grows nigh). But the resemblance ends there. Walmart, so despised by bien pensant literati, has succeeded in lowering its prices dramatically, on a vast array of consumer goods, and has done so since its inception. Walmart saves the average American family — all American families, including those of elitists who refuse to shop there — something like $2,300 per year. Its costcutting measures, including of course labor-saving measures — which go way beyond using part-time labor — have benefitted all consumers with lower prices and better goods, and Walmart investors with a good return on their money.

Walmart, Target, Costco and so on continue to deliver more for less, while the higher education system business only continues to deliver less for more.

In stark contrast, colleges have systematically screwed their consumers and investors. Consider first the consumers, i.e. students. During the past few decades, they have seen their tuition rise much faster than inflation — while the service rendered has steadily deteriorated. The deterioration takes the form of watered-down courses, degrees in vacuous subjects, and rampant grade inflation. Over the past decade in particular, students have had to run up huge amounts of loan debt getting degrees that have proven worthless in terms of career placement.

The investors in these colleges, the taxpayers (for public schools) and the donors (for private ones), who have seen graduation rates dwindle and the employability of recent college grads — only 56% of whom are in jobs appropriate to their training — plummet, are also being swindled.

The Hoeller piece doesn’t address the damning context of the increased use of academic part-timers: the fact that such savings in labor costs have not even slowed the explosion of costs to the students, and the fact that the services rendered have dropped in quality. The proximate cause is, of course, administrative bloat.

Bloat is the focus of a recent article by Jon Marcus of the New England Center for Investigative Reporting. Marcus reviews a report from the Delta Cost Project (also reviewed by the Chronicle of Higher Education) on the rapid growth in college administrative staff. Marcus reports that the growth in the number of college administrators has greatly exceeded the growth in both the number of students and the number of faculty. Over the past 25 years, colleges and universities have increased the number of their administrative staff by 517,636. During that time, the ratio of nonacademic employees to faculty has doubled. We now see two non-academics for every tenure-track or tenured professor at public universities, and a ratio of two and a half to one at private colleges.

Growth in this area is especially strong at the central offices of public college and university systems. For example, the headquarters of the California State University system has a separate budget that exceeds the budget of three of its campuses!

Marcus cites economist Robert Martin making the point that so eluded Hoeller: “While the rest of the economy was shrinking overhead, higher education was investing heavily in more overhead.” Walmart, Target, Costco and so on continue to deliver more for less, while the higher education system business only continues to deliver less for more.

Marcus notes that in constant dollars, tuition and fees have nearly doubled at private four-colleges, and nearly tripled at public four-year colleges, over the last quarter-century. And during this period, the ratio of part-time to full-time faculty has gone from about one-third to about one-half.

Naturally, administrators have a reply: they claim they are delivering more value to the consumers (students) and principals (taxpayers and donors) by creating and expanding offices for security, counseling, technology services, “sustainability,” disabled student services, and especially “diversity.” But skeptics rightly reply that these services don’t seem to have resulted in objectively measurable favorable outcomes. For example, over the past decade, Marcus notes, the percentage of students pursuing bachelor’s degrees — which can be completed in four years — and actually getting their degrees within six years has risen only slightly (from 55% in 2002 to 58% in 2012).

In constant dollars, tuition and fees have nearly doubled at private four-colleges, and nearly tripled at public four-year colleges, over the last quarter-century.

And several economists cited in Marcus’ piece made the obvious point that universities, to the extent they even need many of these services, could easily outsource them. As Robert Martin put it, “You can hire outside firms, on a contract basis, with competitive bidding. All these activities are a distraction from what the institution is supposed to be doing.”

What is causing the exploitation of adjuncts and the explosion in student fees is at base the same thing: a severe case of the principal-agent problem.

The managerial agents at American universities — the administrators — have achieved virtually total power over the institutions they manage, so much so that they view themselves as the true principals (owners). Of course, they’re not — the principals are the taxpayers, the donors, and the tuition-payers. But the administrators seldom see it that way.

Until this problem is solved, you can expect to see administrative bloat continue apace, enabled by the burgeoning ranks of the adjuncts — and by higher tuition, which is in turn fueled by the federal student loan program, a government program run amuck.

In fine, the American university system is as dissimilar to Walmart as you can get. Walmart has not been shafting its customers through management bloat, higher prices, poorer service, and lousier products, all fueled by massive federal subsidies. The American university system has.

Growth in this area is especially strong at the central offices of public college and university systems. For example, the headquarters of the California State University system has a separate budget that exceeds the budget of three of its campuses!




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What Did Obama Motors Know?

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GM — known derisively as “Obama Motors” because of the crony deal it got from the Obama administration — is once again in the news . . . for a massive corporate screwup.

GM is about to be investigated by Congress in the matter of the company’s recall of 1.6 million vehicles. These vehicles had faulty ignition switches. Their malfunctions apparently led to 13 deaths. GM has lawyered up, for it will surely face many tort lawsuits, as it surely should.  Recalls are not unknown in the auto industry, but what is causing Congress to investigate is that it took GM about ten years to get around to the recall. So GM has hired the big-name lawyer who headed the investigation into the 2008 Lehman Brothers failure to be the conspicuous head of its own internal investigation.

This is called: damage control.

When GM switches fail, drivers report that their vehicles become very hard to steer, and the air bags become disabled. So not only is the likelihood of accidents increased, but the likelihood of extreme injury and death also increases dramatically.

GM employees knew about this problem as early as 2004, when reports about it were discussed in the company’s engineering division. This is according to the timeline that GM itself has released. The company is not saying whether or not its engineers asked for a recall, or when the idea of a recall was first suggested.

In a risible act of hypocrisy, the National Highway Traffic Safety Administration (NHTSA) has presented the company with a list of over 100 questions it wants answered. It now appears that the NHTSA knew of the problem as early as 2007. Its people raised the issue in a meeting. But the NHTSA is refusing to answer any questions about it.

The affair has obviously brought back to the minds of investors the old GM — the one that had to be rescued at the cost of billions of taxpayer dollars.

In a lawsuit, settled last year, brought by the family of a nurse killed in a crash involving one of these faulty switches, the plaintiff’s attorney discovered that GM had an engineering team investigating the problem (found to be prevalent in small GM cars). But this was never publicized, so owners of those cars were never warned that they were at risk.

When it was announced that the US Attorney for the Southern District of New York had begun an investigation, GM shares dropped 5%, because the facts seemed to indicate not just negligence, but outright criminality.

This is just the most publicized of GM’s recent recalls. Current GM CEO Mary Barra has launched several other recalls, including one of 1.7 million higher-end vehicles (SUVs and Cadillacs) troubled by an airbag deployment wiring defect. The total number of GM vehicles recalled has now hit 4.8 million for the first quarter of 2014 — a sixfold increase from the number for all of last year. The company has issued seven major recalls in just the first three months of this year.

GM has put aside $300 million to cover immediate costs, but this is obviously not going to cover all the eventual costs. One critic has called for a fund of $1 billion. Some dealers are already reporting slower traffic in their showrooms. Meanwhile, some experts, such as corporate crisis consultant Larry Kamer, are suggesting that this crisis is a good opportunity for Ms. Barra and the “new” GM to show how much they care for customers. Kamer was a consultant for Toyota during its 2010 recall. Toyota recently settled with the U.S. Justice Department on that recall.

Barra has stepped forward to admit that the recall took too long, to offer her condolences to the families of those killed, and to announce that she has assembled a team to help the company handle and “learn from” the incident. Given that Barra was executive director of GM’s manufacturing engineering division while the deaths occurred, one is entitled to be a little skeptical of her new-found burning desire to enshrine the company as the Quality Queen of automotive technology.

As one report notes, Barra has reason to worry. The affair has obviously brought back to the minds of investors the old GM — the one that had to be rescued at the cost of billions of taxpayer dollars. The article notes that Toyota took a major hit to its image from its recall two years ago. Toyota had to pay the Justice Department $1.2 billion for misleading customers. Attorney General Holder boldly declared that the Toyota deal will “serve as a model for how we treat cases with similarly situated companies,” though he didn’t address how that relates to GM.

Here is where one gets suspicious. The feds went after Toyota with a furry when it had its recalls, although the main accusation against it — that some models had “sticky accelerators” — was never proven. When it was charged that floor mats improperly installed by one Lexus dealer in San Diego led to the death of a family, Holder turned his department loose on Toyota, and Secretary of Transportation Ray LaHood loudly proclaimed that Toyota owners should be afraid for their lives.

Of course, while the feds were going after Toyota so furiously, they owned GM. This stank to heaven. However, it is now clear that even as Holder and LaHood were conducting their Obama-jihad against Toyota, their own Obama Motors was known by their own NHTSA to be killing people. Cover-ups are common in government, I suppose, but a cover-up of this magnitude, of a company that had been socialized by the self-same government, is something rare.

Given Eric Holder’s record as an ideological hack, we can laugh at the idea that his Justice Department will honesty investigate GM.

Add to this the fact that at the time a little-noticed provision of GM’s bankruptcy deal was that the “new” (i.e., socialized) GM would not be liable for the tort claims of the “old” (i.e., pre-bailout) GM. This doesn’t just hint of corruption — it reeks. It isn’t clear to what degree GM will use that shield. Law professor David Skeel thinks that while GM is legally safe in using the bankruptcy shield, it would look bad to do so — hardball to the max. And lawyers are already sidestepping the issue by filing suits alleging that the value of some GM models have been hurt, rather than going directly for personal injury tort.

So not only did the Obama administration orchestrate a crony bankruptcy that handed over assets primarily to the administration’s own financial backers, but it apparently stood by and let innocent people die without ordering appropriate recalls. This, so it could run on the election mantra, “Bin Laden is dead, and GM is alive!” Yes, GM was alive, but a number of its customers were dead.

Given Eric Holder’s record as an ideological hack, we can laugh at the idea that his Justice Department will honesty investigate GM. Perhaps what we need is a special prosecutor — somebody outside the control of Holder’s Justice — backed with enough assets to cleanse the stables of Obama Motors.




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Mr. Yee’s Profession

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The day after Leland Yee was arrested, I was listening to a fill-in anchor on my favorite Southern California talk show. She started discussing the arrest, and I was shocked to hear her say that she had, until that moment, never known of Leland Yee. How, I wondered, could anyone not know this man, and despise him?

California State Senator Leland Yee is a man who crusaded against the Second Amendment with a host of bills designed to make owning a gun as pleasant for a law-abiding citizen as falling into the hands of the Spanish Inquisition. Leland Yee is a man who tried to ban “violent” video games, and who, in response to objections, said, “Gamers have got to just quiet down. Gamers have no credibility in this argument. This is all about their lust for violence and the industry’s lust for money. This is a billion-dollar industry. This is about their self-interest.”

Occasionally someone wonders whether politicians mean what they say. This time it was the FBI.

Leland Yee is the sole Democratic senator who voted against the very, very liberal, Democrat-written state budget, because it didn’t spend enough. Leland Yee is the man who for many years persecuted the University of California, a constitutionally independent entity, attempting to subject it to governance by the legislature. (I freely concede that on this issue I may be biased; I am employed by the University of California. I seek to lessen my appearance of guilt by observing that the state’s contribution to the University’s income is less than 10%, and falling; as the percentage falls, politicians like Yee try even harder to subject the institution to themselves.) As reliably reported, seven of the top eight contributors to Yee are labor unions.

Yee got awards from journalists’ associations for his crusade on behalf of government “transparency” and “open records.” What interested these journalists was the fact that Yee got upset when one of the state colleges paid $75,000 to a certain politician to come and deliver a speech, and the college gave him a hard time when he wanted to find out about it. I don’t think any politician should be paid anything to give a speech to anyone, much less to the hapless denizens of a college, but Yee didn’t object to that sort of thing when members of his own party received honoraria. He got upset when it was Sarah Palin. So he demanded documents and documents and documents from the college, which successfully resisted. It’s at that point that he became an addict of transparency.

The episode that really tickles me, however, was, or started out to be, purely horticultural. Environmental fanatics attempted to remove “exotic” and “intrusive” plants from Golden Gate Park, demanding that the area be restored to its original condition (which was, by the way, mainly a bunch of sand dunes). Yee objected — but you probably won’t guess what his objection was. He didn’t say that cypress trees are pretty, and the climate is exactly right for them, and people like to see them, so why take them out? Oh no. He took the whole thing as an attack on Chinese Americans, who, he said, are regarded by some people as “exotic” and “intrusive.”

If somebody wanted to erect a monument to intrusive self-righteousness, Leland Yee could pose for the statue.

Given this history, I was not unhappy when, on March 26, Leland Yee was arrested — for, among other things, conspiring to traffic firearms illegally.

Take a moment to savor that. Yee was one of the nation’s leading opponents of people’s right to keep and bear arms. He claimed that guns made him want to cry, thinking of his children and other children, and how children are so often victims of gun violence.

But there’s this about transparency: occasionally someone takes it seriously. Occasionally someone wonders whether politicians mean what they say. This time it was the FBI, which infiltrated the social circle of a leading San Francisco gangster, looking for dirt on him, and also on Yee. The investigation may have started because, some years before, Yee had spontaneously decided to visit John Law to dish the dirt on one of his former political disciples, a San Francisco supervisor named Ed Jew . People think that was because Yee didn’t want any political competition. Anyway, Jew got sent to federal prison, and Yee ended up looking funkier than he had ever looked before. He’d had a few scrapes with the law, but nothing had happened to him, what with his being the last advocate of morality and transparency and diversity and the Children and all of that.

Nobody seemed to wonder how Yee could have so many possessions, despite having done nothing but hold “public service” jobs the past 26 years.

Now, however, Yee was being seriously investigated. According to the US Attorney’s affidavit, he and his friends liked to talk with gangsters, and they sounded a lot like gangsters themselves. One of the friends was Keith Jackson, who has now been charged with participating in a murder for hire plot. Jackson is a former president of the San Francisco Board of Education. His story is amusing. Then there was Marlon Sullivan, a sports agent and “consultant” who has advised big-time basketball players. Sullivan said he didn’t need to commit crimes; he just enjoyed doing it. He called it a “power and challenge thing” and said “it was fun” (affidavit, p. 88).About murder for hire, he said, “It’s easy work. . . . I will put eyes on the guy and have my boy knock him down” (88).

As for Yee, he is alleged to have said a lot of fun things. From the affidavit:

  • Yee on his role in supplying illegal arms: "People want to get whatever they want to get. Do I care? No, I don't care. People need certain things” (94).
  • Yee on opportunities to practice crime: "There's tremendous opportunity in local levels . . . because whoever's gonna be the mayor controls everything.” Yee was running for mayor of San Francisco. Should he become mayor, he said, “We control 6.8 billion man, shit" (106, 107).
  • Yee on evading political contributions laws: "As long as you cover your tracks . . . you're fine." Asked how someone could make large donations to him without getting caught, Yee suggested giving to the campaign, supported by (guess who?) Leland Yee, on behalf of a ballot measure to raise money for schools (106, 107).
  • Yee on contributions from gangsters: "By helping me get elected means, I'm gonna take actions on your behalf." "Just give me the goddamned money man, shit. . . You should just tell them, write some fucking checks, man" (127).
  • Yee on political virtue: "Senator Yee attributed his long career in public office to being careful and cautious" (95).
  • Yee on his beloved children: “Yee told [a secret agent] he would take the cash [for illegal activities] and have one of his children write out a check” (102).

It never ends. For starters, see some othertip-of-the-iceberg reports on Yee.

Well, Yee was hauled into court in shackles. Along with 20-plus other defendants, he pleaded not guilty. Unlike the rest of them, however, he was released on a $500,000 unsecured bond. Didn’t have to pay a dime. I guess that’s because he’s such a distinguished citizen.

That very afternoon, the Democratic leaders of the state Senate, suddenly sensitized to public opinion by the fact that during the past couple of months two other Democratic members of the Senate had been hit with criminal charges (and had been allowed to take “leaves of absence”), held a press conference in which they demanded that Yee leave the Senate, now. Never mind about that “innocent until proven guilty” stuff; they needed to protect “the institution.” When, oddly, he didn’t leave, they “suspended” him (and finally, the other two also). The Democratic mayor of San Francisco lamented the damage done to Yee’s many years of “public service.”

Yee on his role in supplying illegal arms: "People want to get whatever they want to get. Do I care? No, I don't care. People need certain things.”

To me, the most interesting remark was made by one Jackie Speier, a Democratic state representative from a wealthy Northern California district. (Did I mention that wealth is liberal? Did I mention that Yee represented western San Francisco and an even wealthier part of San Mateo County? Did I mention that nobody seemed to wonder how he could have so many possessions, despite having done nothing but hold “public service” jobs the past 26 years?) Ms. Speier, who like a lot of people claims never really to have known Mr. Yee — "I don't think anyone knew him," she said — was full of sympathy for politicians in general: "It's always sad for all of us in the profession, to see individuals who lose sight of what the public trust is all about."

The profession. For these people, their life (not that of the guy who fixes roofs or the gal who runs a restaurant) is a public service; their jobs are institutions, like the art museum, the church, and the medical school; and their cheap, stupid, boring existence — cadging money, sitting on committees, giving awards to one another, spreading “outrage” in exchange for votes — is a profession.

As my grandmother used to say, that takes the cake. But what I’d still like to know is this: How could Leland Yee have disgraced thatprofession?




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