American Elephants


Signs of Real Hope in Detroit.

Detroit emergency manager Kevyn Orr

We’ve all seen pictures of Detroit’s abandoned buildings, and read of the seemingly never-ending political disaster. Now there are growing signs of possibility.

Detroit boasted the nation’s highest homicide rate. Police response times were five times the national average. A heart attack was usually fatal because medical care barely existed. 78,000 blighted buildings were labeled “dangerous.” And about 40% of the city’s 88,000 street lights were broken. The city’s deficit was $700 million on $1.2 billion in revenue. Retirement liabilities came to $9.2 billion, and coincidentally several pension-fund trustees and money managers had been indicted for accepting kickbacks.

When Governor Rick Snyder appointed Kevyn Orr as emergency city manager, Detroit’s unions, politicians and black leaders warned that it would mean civil war. Jesse Jackson charged that Governor Snyder was creating a “plantocracy, a plantation-oracracy,” apparently failing to notice that Mr. Orr is black. Allowing the city to continue to crumble in its political failures would have been the real crime. But what courage to take on that job!

Mr. Orr filed for bankruptcy last July. He proposed slashing unfunded retirement liabilities and general-obligation bonds by up to 90%. Unions sued.
Federal bankruptcy judge Steven Rhodes set a precedent by affirming that federal bankruptcy law trumps state laws protecting pensions and contracts.

Mr. Orr has negotiated smaller haircuts which still demand tough discipline, but will put the city on a sustainable post-bankruptcy course. A new police chief has instituted new IT systems that have contributed to a 14% decline in homicides. 3,200 streetlights have been replaced, with 50,000 planned by the end of 2015. Mr. Orr’s plan will free up more than $100 million annually for revitalization. New mayor Mike Duggan and the city council have formed a land bank to clear blight and plan to cut property tax bills.

Real Bankruptcy is renewing public confidence and spurring business investment. Racial tensions are receding. The White House has offered $320 million in “repurposed federal funds,” and has offered an additional $100 million from the bank bailout. Treasury Secretary Lew is heading for Detroit to take credit for the federal contribution. Federal welfare of $700 million between 2010 and 2012 has been propping up the sick political culture.

But Mr. Orr and Governor Snyder deserve real credit for having the guts to put the city into bankruptcy. Real bankruptcy, not the auto-industry semi-demi version.



The Cover Oregon Debacle is Beyond Covering Up!

Cover Oregon finally gave up today, and pulled the plug. They still have not enrolled a single person in ObamaCare. Three hundred million down the drain. The state has spent another $7 million signing up 69,000 people manually, using paper applications.

Democrat Governor John Kitzhaber promised to lead the nation on ObamaCare. Didn’t work out that way. An internal audit ordered by the governor concluded that Cover Oregon’s architects were doomed by multi-agency bureaucratic confusion with no quality control or accountability for results. Investigators at the KATU news station found evidence suggesting that Cover Oregon officials created a fake website to create the illusion of progress for the feds who made grants to Oregon for ObamaCare that added up to $303 million.

An advisory panel voted for the state to revert to the federal exchange, but White House officials said they were already planning to annex the exchange. The goal now is rescuing the career of Senator Jeff Merkley. Oregon is very liberal, but the ObamaCare debacle is going to affect anyone in an official position. It’s just not something that enhances a resume. Likely Republican challenger Monica Wehby is a pediatric neurosurgeon, and an impressive candidate.



New Materials With Surprising Properties That Will Change Our World

We don’t hear much about materials science. I’m not sure that I was aware that there is such an occupation as a materials scientist. And in the history of materials something new and useful has been as likely to be the results of a botched experiment than created on purpose.

Scientists are now more apt to work out the properties of a possible material on a computer before they ever get near a laboratory or a workshop. We now have several materials that are so new that we don’t really know how they will be used. But here are five new materials that have the potential to be transformative.

Graphene

I have written about the chance invention of graphene by Andre Geim and Konstantin Novosetov at Manchester University when they were playing around with scotch tape and a lump of graphite in 2004. That resulted in a shared Nobel prize, knighthood, and a £61m National Graphene Institute.

Graphene is an extraordinary material, immensely strong, flexible, transparent and flexible. This makes it extremely interesting for a next generation of electronic devices —rolled up and stuck in our pockets, sewn into our clothing, or night-vision contact lenses as suggested by Zhaohui Zhong at the University of Michigan. It is a material that seems to have huge potential, with application in all sorts of different areas. The money has poured in. The problem is production.

With graphene, everything from your refrigerator to your toothbrush could be hooked up to the internet. How do you deal with an internet of things—cheap simple, flexible and eventually disposable devices? It’s hard to get your mind around that.

Spider silk

When researchers discovered the fantastic strength and flexibility of spider silk, they began taking about spider silk as the perfect material from which to manufacture bulletproof vests, when they teased out the silk’s molecular structure.

“You can’t sue spider silk to make a bulletproof vest. It’s too extensible. It would catch the bullet, but not before the bullet has passed through your body. Well bulletproof vests may be out, but the potential is amazing, when we can learn how to produce such a material as well as a spider.

Spider silk is made from a biopolymer called an aquamarine, which can be spun at room temperature 1,000 times more efficiently than plastics that need to be heated up and cooled down. By controlling the rate at which the silk is spun a spider can control the stiffness or flexibility of the fibers. The goal for researchers is to make other materials that mimic the spider silk’s amazing tricks.

Metamaterials

Remember Harry Potter’s invisibility cloak? Two research groups have published technical blueprints for making “metamaterials” which can change how light and other forms of radiation bend around an object, in a way similar to water flowing around a rock. An observer would see whatever was behind the object as if the object were not there, according to Professor Ulf Leonhardt of St Andrews University and published in the journal Science.

If you read a lot of science fiction or military thrillers, you can see the implications of such materials. And of course that leads to concerns about ethics, and in an era of privacy concerns, drones, and the NSA, such innovations might seem disruptive to society. You have to structure the material on a length scale that is short, so for visible light that means on a nano scale. Objects can be hidden on some wavelengths and not others, or only under specific conditions. Sounds like there’s a lot of work yet to be done here. But fascinating.

Shrilk

Well, what else would you call a material made from leftover shrimp shells and proteins derived from silk? Shrilk was inspired by research into the tough shells of insects. The coating is made from layers of a material called chitin and a protein called fibroin. In one arrangement the material is strong and rigid enough to form the insect’s protective exoskeleton. What intrigued the Harvard researchers  was that simple tweaks to the material—specifically the amount of water bound inside it —changed the behavior of the material dramatically. Without water the material is stiff, but with water the coating becomes very flexible.

Shrilk
(photo: Jon Chase/Harvard University)

Javier Fernandez and Don Ingber at the Wyss Institute used fibroin from silk worm and chitosan, a material similar to chitin, to make their first batch of shrilk. They played with the water bound inside the material to vary its properties. They can for strong, transparent sheets of shrilk that are biodegradable and enrich the soil like a fertilizer as it breaks down. You might not use the material to make a trash can that you will use for ten years, but a trash bag for yard waste would make sense.

The components are FDA approved for use in the body, where they could find a role as sutures, or as scaffolds for growing new tissues that dissolve when they are no longer needed. Strange new words makes it seem like science fiction. So you develop a material, and then invent the uses for it, and tweak the material for new uses. Complicated—if the trash bag seems too plebeian—I am using lots of little green bags made out of corn (too biodegradable) that allow me to throw kitchen scraps into the yard waste can for recycling, except anything wet makes the bag  create holes and all the kitchen scraps fall on the floor. We need some improvement here, but someone is currently making a fortune from the little green bags.

Stanene

Here’s a material that was designed on a computer, and its extraordinary behavior worked out from theory. Only now are researchers trying to make the stuff to see if it delivers on those promises in the real world.

Scientists at Stanford University call it a topological insulator. It is an insulator on the inside, and a conductor on the outside. Thin layers of stanene—or one-atom-thick sheets of tin—are essentially all surface and should conduct electricity with 100% efficiency.

Materials conduct electricity when electrons flow through them. However, in most materials, the electrons are held up by impurities and other features that give rise to resistance. This resistance generates heat, and so electronics must be cooled to stop them melting. Stanene promises to change all that. The structure of the material allows electrons to shoot along channels with no resistance whatsoever. Add a little fluorine and, according to Zhang, the material will have zero resistance at more than 100C (212F).

Shoucheng Zhang at Stanford created stanene virtually, and sees stanene as the natural successor to copper interconnects in computers. Atomically thin connections that don’t heat up would enable designers to miniaturize electronics even more. Ultimately stanene could replace silicon as a cheap and abundant material from which to make computer chips.

Our world is always changing around us. Sometimes we get real explanations of what is going on in the labs, sometimes we get threats of what will be—that turn out to be nothing much. These new materials seem truly promising.



Why is the Left So Suddenly Rapturous About Income Inequality?

Inequality is currently a big deal because 1). Barack Obama wants to use it in his campaign for keeping the Senate in the fall elections 2). the lapdog media is obediently cooperating in emphasizing Obama’s theme of the moment and 3). A new book by French economist Thomas Piketty which is focused on inequality, wealth redistribution, capitalist wealth, and the horrors of capitalism. Karl Marx is revisited for the 21st century.

From Cato’s Michael Tanner:

Capital in the Twenty-First Century provides a serious critique of inequality in modern capitalist economies and warns that market economies “are potentially threatening to democratic societies and to the values of social justice on which they are based.” To remedy this, he argues for a globally imposed wealth tax and a U.S. tax rate of 80 percent on incomes over $500,000 per year.

The Left has been rapturous. In the last two months, Piketty’s book has been cited more than a half-dozen times by the New York Times, something that has happened with no other book in recent memory. Paul Krugman hails it as “the most important economics book of the year.

From Daniel Suchman in the Wall Street Journal:

Thomas Piketty likes capitalism because it efficiently allocates resources. But he does not like how it allocates income. There is, he thinks, a moral illegitimacy to virtually any accumulation of wealth, and it is a matter of justice that such inequality be eradicated in our economy. The way to do this is to eliminate high incomes and to reduce existing wealth through taxation. …

Soaring pay for corporate “supermanagers” has been the largest source of increased inequality, according to Mr. Piketty, and these executives can only have attained their rewards through luck or flaws in corporate governance. It requires only an occasional glance at this newspaper to confirm that this can be the case. But the author believes that no CEO could ever justify his or her pay based on performance. He doesn’t say whether any occupation—athletes? physicians? economics professors who sell zero-marginal-cost e-books for $21.99 a copy?—is entitled to higher earnings because he does not wish to “indulge in constructing a moral hierarchy of wealth.”…

He assumes that the economy is static and zero-sum; if the income of one population group increases, another one must necessarily have been impoverished. He views equality of outcome as the ultimate end and solely for its own sake. Alternative objectives—such as maximizing the overall wealth of society or increasing economic liberty or seeking the greatest possible equality of opportunity or even, as in the philosophy of John Rawls, ensuring that the welfare of the least well-off is maximized—are scarcely mentioned.

Michael Tanner had the most obvious answer to the problem of the inequality of the lower classes, or the less fortunate: “Instead of attacking capital and capitalism, why not expand the number of people who participate in the benefits of having capital? In other words, let’s make more capitalists.”

It should not be surprising then that “the Left is unremittingly hostile to exactly those policies that would give workers more access to capital.” They want to abolish 401(k) plans, replace them with social insurance, limit tax breaks for wealthier participants, and expand (the broke) Social Security instead.



It’s Earth Day. Yawn. Zzzzzz-zzz…

The Humor:

527x402xEarth-Day-Cartoon-1-copy.jpg.pagespeed.ic.VDWmekG6Vt

Fort Mason Park in San Francisco after last year’s Earth Day.

Earth-Day-Mess-copy1
I was visited late yesterday by an earnest young woman representing WASHPIRG, which is the Washington State version of the U.S. Public Interest Research Groups. Every college student is required to pay a fee to this group, which seems a little odd since this is just another of Ralph Nader founded private activist groups. They send college students out every year to shill for donations to their cause of the moment. Ralph Nader, “consumer advocate” has formed dozens of “nonprofits” but somehow managed to become a multimillionaire in the process.

The WASHPIRG group this time is the Environment Washington Research and Policy Center. My visitor left a handy leaflet which says:

In Washington, extreme weather in hitting closer to home.

If you think we’ve seen more than our usual share of extreme weather in and around Washington lately, you’re right. Last year’s wildfires, which devastated eastern and central Washington and cost $67.5 million to fight, were a tragic example. Unfortunately it’s not just wildfires, In fact 98% of Washingtonians live in counties hit by at least one weather-related disaster between 2007 and 2012.

And it could get worse. Climate scientists warn that if we keep polluting the way we are now, the next generation is likely to see even more floods, more intense hurricanes, more drought, more heat waves and more dangerous smog pollution as the planet warms and the climate changes.

Sigh. Weather is not climate. Climate is average temperature and has nothing to do with weather. Warmer or colder climate does not cause wildfires, floods, hurricanes, drought or smog pollution. We had some forest fires last year, as we do most years, but it was a fairly low year for forest fires, which are most often caused by lightning strikes or human carelessness. Floods are usually caused by either snowmelt or heavy rain, not climate. This has been one of the quietest years for hurricanes in recent years, and 2012 was a record year for lowest number of tornadoes, until beaten by 2013. So far 2014 is matching 2013. California had a mild winter with light snowpack, but the devastation of the Central Valley drought can be laid in the laps of the environmentalists who have forced the state to cut off water to the breadbasket of the country because of a tiny bait fish which they think may be “endangered.” The planet is not warming, and has not warmed for 17 years and 8 months. There has been no warming, none, since August 1996.

The main culprit: Carbon pollution from fossil fuels

Sigh. There is no such thing as “carbon pollution.” We are carbon-based life forms. We breathe in oxygen and exhale carbon dioxide which rises from the oceans and is a natural fertilizer for plants. Trees grow and die and decay and release carbon dioxide. We have posted a video from Matt Ridley explaining the “greening of the planet” and the blessings that brings, like feeding hungry people.

What’s driving these changes? We know that carbon pollution from cars and trucks that run on gas and coal-fired power plants owned by utilities like Puget Sound Energy, plays a major role. And the more pollution we allow, the more likely our children will face the consequences of more extreme weather, more smog, rising sea levels and the extinction of certain animals and plants.

I may be mistaken, but I think Washington state had only one coal-fired power plant and I thought they shut that down a year or two ago. I remember my legislator voting to close it because he saw pollution (steam, water vapor) rising from the smokestacks. There’s the litany: “extreme weather, more smog, rising sea levels, and extinction of certain animals and plants.” Greens managed to decimate the logging industry in the state because we had to save the spotted owl, which could only live and breed in old growth forest. Then after massive unemployment, ruined lives and devastated communities, they learned that the spotted owl was perfectly happy in young forests, that its numbers were declining because it was being attacked by its larger, stronger cousin the barred owl. They’re planning to shoot barred owls.

I will spare you the rest of this silly leaflet. At the end, they announce that :

Environment Washington Research and Policy Center has already made a difference for your environment:
Our public education campaigns played a key role in passing plastic bag bans in seven Washington cities. Thanks to our research, outreach and education, Puget Sound wildlife is now better protected from the growing threat of plastic pollution.

Oh, bwa-ha-ha-ha. “the growing threat of plastic pollution.” Cities love banning plastic bags because they charge 10¢ a bag for a plastic bag, which goes to the city. You’re supposed to buy and use cloth bags which are dangerous, often contaminated with e-coli or other bacteria,  and have actually killed people.



Dueling Climate Reports: Here’s the Important One.

There is a vigorous scientific debate over humanity’s influence on climate. The leftist media prefers to attempt to prevent that simple fact from being heard. This is a strange time in history when disagreement is not to be allowed. Those who disagree are to be prevented from speaking. Some want dissenters jailed. It’s getting really weird out there.

Here’s a little dissent from the scientists at the independent Nongovernmental International Panel on Climate Change (NIPCC).

Guest essay by Dr. Craig D. Idso

The release of a United Nations (UN) climate change report last week energized various politicians and environmental activists, who issued a new round of calls to reduce greenhouse gas emissions. Some of the most fiery language in this regard came from Sen. Barbara Boxer (D-CA), who called upon Congress to “wake up and do everything in its power to reduce dangerous carbon pollution,” while Secretary of State John Kerry expressed similar sentiments in a State Department release, claiming that “unless we act dramatically and quickly, science tells us our climate and our way of life are literally in jeopardy.” 

Really? Is Earth’s climate so fragile that both it and our way of life are in jeopardy because of rising carbon dioxide (CO2) emissions?

In a word, no! The human impact on global climate is small; and any warming that may occur as a result of anthropogenic CO2 and other greenhouse gas emissions is likely to have little effect on either Earth’s climate or biosphere, according to the recently-released contrasting report Climate Change Reconsidered II: Biological Impacts, which was produced by the independent Nongovernmental International Panel on Climate Change (NIPCC).

This alternative assessment reviews literally thousands of peer-reviewed scientific journal articles that do not support and often contradict the findings of the UN report. Whether the subject is the effects of warming and rising CO2 on plants, animals, or humans, the UN report invariably highlights the studies and models that paint global warming in the darkest possible hue, ignoring or downplaying those that don’t.

To borrow a telling phrase from their report, the UN sees nothing but “death, injury, and disrupted livelihoods” everywhere it looks—as do Senator Boxer, Secretary Kerry, and others. Climate Change Reconsidered II: Biological Impacts demonstrates that life on Earth is not suffering from rising temperatures and atmospheric CO2 levels. Citing reams of real-world data, it offers solid scientific evidence that most plants actually flourish when exposed to both higher temperatures and greater CO2 concentrations. In fact, it demonstrates that the planet’s terrestrial biosphere is undergoing a great greening, which is causing deserts to shrink and forests to expand, thereby enlarging and enhancing habitat for wildlife. And much the same story can be told of global warming and atmospheric CO2 enrichment’s impacts on terrestrial animals, aquatic life, and human health.

Why are these research findings and this positive perspective missing from the UN climate reports? Although the UN claims to be unbiased and to have based its assessments on the best available science, such is obviously not the case. And it is most fortunate, therefore, that the NIPCC report provides tangible evidence that the CO2-induced global warming and ocean acidification debate remains unsettled on multiple levels; for there are literally thousands of peer-reviewed scientific journal articles that do not support a catastrophic, or even problematic, view of atmospheric CO2 enrichment.

Unfortunately, climate alarmism has become the modus operandi of the UN assessment reports. This fact is sad, indeed, because in compiling these reports, the UN either was purposely blind to views that ran counter to the materials they utilized, or its authors did not invest the amount of time, energy, and resources needed to fully investigate an issue that has profound significance for all life on Earth. And as a result, the UN has seriously exaggerated many dire conclusions, distorted relevant facts, and omitted or ignored key scientific findings. Yet in spite of these failings, various politicians, governments, and institutions continue to rally around the UN climate reports and to utilize their contentions as justification to legislate reductions in CO2 emissions, such as epitomized by the remarks of Senator Boxer and Secretary Kerry.

Citing only studies that promote climate catastrophism as a basis for such regulation, while ignoring studies that suggest just the opposite, is simply wrong. Citizens of every nation deserve much better scientific scrutiny of this issue by their governments; and they should demand greater accountability from their elected officials as they attempt to provide it.

There it is, that’s my op-ed. It’s what some people apparently do not want you to read. While the over 3,000 peer-reviewed scientific references cited in Climate Change Reconsidered II: Biological Impacts are likely more than sufficient to establish scientific fact in a court of law, they are not sufficient to engage the real climate deniers in any debate. The rise in atmospheric CO2 is not having, nor will it have, a dangerous influence on the climate and biosphere. But don’t take my word for it, download and read the report for yourself (available at http://www.nipccreport.org). Compare it with the UN report. You be the judge!

Dr. Craig D. Idso is the lead editor and scientist for the Nongovernmental International Panel on Climate Change (NIPCC).



Another Stunning Example of Political Opportunism.

 

384x270xKeystone-Politics-copy.jpg.pagespeed.ic.5NBCiue7G-

The U.S. State Department has cleared the Keystone XL Pipeline twice, so far, but now they are going to have to pass it again, after an extension of the public comment period which will, coincidentally, last until after the election. Part of the pipeline’s planned path has been changed to suit protesters. It is not a coincidence that the news of the ‘decision’ was released on the convergence of Good Friday and Passover. News that they’d rather cover up is always released late on a Friday. The cover story is that a further delay in the five-year saga of the Keystone couldn’t be avoided because of ‘unresolved legal issues’ over land seizures in Nebraska. Of course.

Let’s see what is involved:

TransCanada has provided a detailed job breakdown for the pipeline. They say it will create 13,000 union construction jobs, 7,000 jobs for Americans in manufacturing. It is estimated that there are up to 250,000 jobs over the life of the pipeline. That boom in employment would have spin-off jobs in the local economies that support each segment of the pipeline.

The Canadians are mightily annoyed. The United States imports eight to nine million barrels of oil every day. A stable, secure supply of oil from Canada makes better sense. Obama has orated about “our dependence on”foreign oil” often enough when it suits what he wants his audience to think.

Terry O’Sullivan, president of the Laborers’ International Union of North America said “Once again, the administration is making a political calculation instead of doing what is right for the country. It’s clear the administration needs to grow a set of antlers, or perhaps take a lesson from Popeye and eat some spinach.”

Pushing the Keystone XL through would send an important message to Vladimir Putin that America is willing to develop our energy. And allowing the export of liquified natural gas would put a thorn in the side of Putin’s ability to blackmail Europe because of their need for natural gas. But we don’t actually want to annoy Mr. Putin, do we?

On the other side you have:

Leftist billionaire Tom Steyer has promised to spend $50 million of his own money and raise another $50 million for the Democrats in this election if they support the cause of global warming. He really “hates” the Keystone XL pipeline. Steyer has made much of his money at Farallon Capital by investing in fossil fuel producers.

Steyer now claims that stopping Keystone will somehow prevent Canada’s oil sands from being developed. That’s hogwash. The oil is now being carried by rail. In 2008, there were less than 10,000 carloads of crude oil moved by rail. Last year it was more than 400,000 carloads. Rail transportation is far less safe than a pipeline, and the network of pipelines across the country is already extensive, and safe.

Steyer will profit from any delay of the Keystone because he is, or was until recently, a major investor in Kinder Morgan which is building a competitor to the Keystone pipeline. He is, today, a bitter opponent of fossil fuels, especially coal. Banning coal-fired power plants will boost the value of his solar projects. He owes his fortune in large part to the fact that he has been one of the world’s largest financiers of coal projects in Australia and Asia.  He has led recent campaigns with climate nut Bill McKibben to encourage university endowments to divest coal equities. John Hinderaker at Powerline has assembled a remarkable list of Steyer interests. The Hypocrisy is breathtaking.

The most notable takeaway is that, for Barack Obama political money for the upcoming election trumps jobs for unemployed American construction workers, unemployed American manufacturing workers, and for the taxpayer money going to import all that “foreign oil. Everything, for Barack Obama, is about politics. All that talk about jobs, jobs, jobs is just talk.



Growing Inequality Isn’t What Matters. What Matters is Good Jobs for the Jobless.

In an attempt to turn the American conversation away from the botched rollout of ObamaCare and the horror stories from new enrollees, President Obama has begun emphasizing income inequality. Envy is always a popular ploy among Democrats that plays well at the polls. Ron Bailey summed it up well at Reason:

Are the rich getting richer? Yes. Are the poor getting poorer? No. Over the past 35 years most Americans got richer. Has income inequality increased in the United States? Yes. Does it matter? President Barack Obama declared in a December speech at the Center for American Progress that “a dangerous and growing inequality and lack of upward mobility” is “the defining challenge of our time.” Is that true? No.

The financial arm of the federal government uses the census and statistics from the IRS to divide the American people into quintiles. In December 2013, the Congressional Budget Office (CBO) examined the after-tax income trends for each quintile of American households since 1979, including not just wages but also benefits and transfer payments. The bottom fifth’s after-tax income in constant dollars rose by 49 percent. The incomes of the middle three quintiles increased by 37 percent, 36 percent and 45 percent respectively.

Gary Burtless, an economist at the Brookings Institution examined CBO data from 1979 to 2010 (the last year for which data are available), and divided the top quintile into four groups: those in the 90th percentile and below, those in the 91st through 95th percentiles and the top 1 percent. During those years, incomes for those fortunate households increased by 54 percent, 67 percent, 79 percent and 202 percent. The rich got richer too, but they got richer faster. Is this when “the one percent” became an ‘important’  buzz word?

What is missing in these statistics is the fact that the people in these quintiles are not the same people over time. Forbes magazine’s annual listings of the richest Americans and world’s richest are manna for the Occupy crowd and the faculty lounge. University professors have always found it enraging that corporate CEOs make huge salaries with enormous benefit packages when they, with their PhDs, are clearly smarter. Envy. But where else do you find so many who disapprove of capitalism?

Economist Alan Reynolds points out that “those who obsess over income shares should welcome stock market crashes and deep recessions because  such calamities invariably reduce ‘inequality.’ Of course, the same recessions also increase poverty  and unemployment.” If you follow Forbes listings, you will notice that some drop off the list and new names appear. But these are not normal times we are living through, as we have an administration determined to fix inequality, but consistently doing the wrong thing about it.

In his December speech, the president suggested that rising inequality is limiting income mobility, leaving poor Americans increasingly stuck and struggling on the lower rungs. The data do not support this claim.

We have had an astounding period of growth that has produced enormous wealth because of internet technology. I don’t know that we have ever before had a technological innovation that meant that every household and every office had to have at least one computer and probably one for each and every  person. Not only that, but the industry is so busy creating and updating and innovating that everyone has to replace everything constantly, and they do so without much complaint, and there are no signs that it ever diminish.

The great defining economic challenge of our time is not putting an end to inequality. The challenge is the persistent joblessness and sluggish economic growth perpetuated by Obama administration policies. A growing economy  will produce more economic mobility. Trying to make the poor stop being poor by redistributing the wealth of the rich has never worked, though often tried.

Intellectuals fretting about income disparity are far too focused on the wealthy, while ignoring the elephant in the room. The strongest statistical correlate of inequality in the United States is the rise of single-parent families during the past 5o years. In 1960, more than 76% of African-Americans and nearly 97% of white were born to married couples. Today the percentage is 30% for blacks and 70% for whites.

This trend, accompanied by high divorce rates means that roughly 25% of all American children now live in single-parent homes, twice the percentage in Europe. Roughly a third of American children live apart from their fathers. It matters. Two parents work better than one.  Even rich kids don’t do as well in single parent families.



ObamaCare Has Barely Begun, And The Horror Stories Start!

President Obama is crowing about enrolling 8 million Americans in ObamaCare. The number seems to have no relation to reality. Nobody is enrolled until they have paid.

In Georgia, insurers received more than 220,000 applications for health coverage in the Affordable Care Act’s exchange as of the official deadline of March 31, according to state officials. The Insurance Commissioner, Ralph Hudgens says that premiums have been received for only 107,581 of those policies which cover 149,465 people. Half.

In California open enrollment is closed, many of the newly insured are finding they cannot find doctors, landing them in a state described as “medical homelessness.” One of the major claims was that ObamaCare would reduce the use of emergency rooms by the uninsured. Uh huh.

Kaiser says it will only get worse. Aging baby boomers increasingly need more care. The  growing medical needs of that group are creating a huge burden for the existing health care workforce. The retirement of many doctors in the boomer cohort is compounding the problem. The federal government estimates the physician supply will increase by 7 percent in the next 10 years. The number of Americans over 65 will grow by about 36 percent. Medical students are avoiding primary care and are choosing specialties instead. 20 percent of Americans live in areas with an insufficient number of primary care physicians, 16 percent in areas with too few dentists and 30 percent in areas with a lack of mental health providers.

Well why can’t we have single-payer health care like, say, Sweden? Sweden is always raised as a rare example of a socialist country that works. But a closer look at its health care system tells a different story. Universal public health care means the average Swede with ‘high risk’ prostate cancer has to wait 220 days for treatment. The overall quality of their universal public health consistently ranks among the very best. That quality can be achieved by regulating treatments to follow specific diagnoses as well as standardizing procedures.

But Sweden’s problem is access to care. According to the Euro Health Consumer Index 2013, the average wait time from referral to start of treatment for ‘intermediary and high risk ‘ prostate cancer is 220 days. For lung cancer the wait between an appointment with a specialist and a decision about treatment is 37 days.

The waiting is what economists call “rationing,”— the delay or even failure to provide care due to government budgeting decisions. The number of people seeking care far outweighs the capabilities of providers— insurance in name but not in practice. This is the inevitable result of ObamaCare as well. That’s why there is the Independent Payment Advisory Board (IPAB) who will decide what the federal government will pay for.

Stories of people in Sweden suffering stroke, heart failure and other serious medical conditions who were denied or unable to receive urgent care are frequently reported in the Swedish media. Recent examples include a one-month-old infant with cerebral hemorrhage for whom no ambulance was available, and an 80-year-old woman with suspected stroke who had to wait four hours for an ambulance. It’s the same deal in Britain’s NHS, which is so admired by the ObamaCare designers.

Here at home, a New York woman suffering from a neurological disease that has required four brain surgeries has been dropped by all of her doctors and denied medications because of her ObamaCare plan. Margaret Figueroa, 49, suffers from a disease that has her vomiting, she has lost 22 pounds and the pain is unbearable. The ObamaCare plan she purchased assured her that she was covered, but when she went to fill her prescriptions, her insurance card was denied. She cannot find a doctor who will see her. Her congressman,Rep Michael Grimm (R-NY) has intervened to help her obtain vital prescriptions. Grimm says he’s already received calls from at least a dozen Staten Island residents facing the same problem with ObamaCare’s “narrow networks”— extreme restrictions on doctor and hospital access imposed by ObamaCare.

The top cancer centers across the country are not available to those on ObamaCare.  38 percent of all ObamaCare plans only allow patients to pick from just 30% of the largest 20 hospitals in their area. The narrow network horror stories will only continue to grow, and the effects will be disastrous. But Obama is crowing about enrolling 8 million people.



A Little Advice for New Graduates, Old Graduates, the Unemployed and the Rest of Us.

From Mike Rowe, the Dirty Jobs guy, a little advice about work:

Stop looking for the “right career,” and start looking for a job. Forget about what you like. Focus on what’s available. Get yourself hired. Show up early. Stay late. Volunteer for the scut work. Become indispensable. You can always quit later, and be no worse off than you are today. But don’t waste another year looking for a career that doesn’t exist. And most of all, stop worrying about your happiness. Happiness does not come from a job. It comes from knowing what you truly value, and behaving in a way that’s consistent with those beliefs.



Why is Business Not Hiring? The Gibson Guitar Raid Revisited.

Les Paul Is Remembered In New York City
It was August of 2011, when armed federal agents raided Gibson Guitar’s Nashville headquarters, seizing wood, instruments and creating a national outcry over the high-profile  persecution. Agents were supposedly working from a tip that Gibson had broken laws in India and Madagascar, two countries that supply Gibson with ebony and other scarce woods for its guitar frets.

Both India and Madagascar say that Gibson has done nothing wrong, and has complied with all their laws. Federal agents seized more then $1 million of Gibson’s property. The Department of Justice alleged that Gibson imported wood for its guitar frets in violation of the Lacey Act — a federal law that makes it a crime to import flora or fauna in violation of a foreign nation’s laws.

August 7, 2012: the Department of Justice announced yesterday that the Gibson Guitar Corporation had accepted a deferred prosecution agreement regarding the Department of Justice’s allegation that Gibson violated the Lacey Act.  As a result, the Department of Justice will not charge Gibson with a crime (except for maybe a tax offense, left open) for “illegally importing ebony from Madagascar and ebony and rosewood from India” through a German intermediary from June 2008 through September 2009.”  Gibson, in return, must pay a $300,000 fine, make a community service payment of $50,000 to the National Fish and Wildlife Foundation” bulk up its internal procedures, and generally grovel whenever the government asks it to do anything related to this matter.

Heritage points out several features of the agreement worth mentioning:

First: The government acknowledges in the agreement that “certain questions and inconsistencies now exist regarding the tariff classification of ebony and rosewood fingerboard blanks pursuant to the Indian government’s Foreign Trade Policy.” In other words, the government acknowledges that the relevant law—not just our law, but a foreign nation’s law—is unclear. Ordinarily, that conclusion should lead the government to drop any charge that Gibson violated the law, especially the law of a foreign nation.

Second: The government’s case is no better regarding Madagascar. The agreement cites (1) “Madagascar Interministerial Order 16.030/2006,” and (2) some other equally well-known “laws”—all of which may have been written in a foreign language. The agreement alleges that Gibson received a translation (from whom is not stated) of the first whatever-it-is saying that “‘fingerboards’ are considered ‘finished’ under Madagascar law” and therefore may be exported. But, according to the government, “trip organizers”—who, for all we know, could have been Gibson’s trip companions “Greenpeace and other non-profit environmental groups”; the agreement does not say—informed Gibson that “under the organizers’ interpretation of [Madagascar’s] 2006 Interministerial Order, the harvest of ebony was illegal and that instrument part ‘blanks’ would be considered ‘unfinished’ and, therefore, considered illegal to export.” Put aside the obvious problems with government’s reliance on the opinion by the trip’s “organizers” of a foreign order written in a foreign tongue—Gibson was given conflicting views of the law. That should have ended the matter entirely. Remember: Gibson imported wood, not heroin.

Third: The press release is full of all of the chest-puffing that we are accustomed to see the federal government display: The government has enforced the law, prosecuted the wicked, protected the environment, cured the common cold, etc. But the government has made a federal case out of “fretboards” or “fingerboards.” …

Fourth: Gibson must pay the National Fish and Wildlife Foundation $50,000 for its (or its designee’s) use for the environment. Really? Fines paid to the government go into the U.S. Treasury and belong to the public; the NFWF is a private organization. In essence, the taxpayers are subsidizing the NFWF.

Why does it matter that Congress is out of town?  Why, because there are currently two bills before Congress that would have the result of repealing criminal provisions of the Lacey Act.

On the part of Gibson, they made a dollars-and-cents decision. An imperial administration can pretty much beat any poor sucker who gets in their crosshairs into submission.

Reading further on the case it suggests that the “tip” came from the Environmental Investigation Agency, a private group of activists who have appointed themselves to investigate and report “environmental crimes.”

Corporate CEOs pay attention to events like the Gibson Guitar Corporation raids. (There were actually two). This showed the Justice Department of the federal government going after a private corporation with a SWAT team, armed agents, who seized property and shut the Gibson factories down. Although Gibson was able to show that it was in full compliance with the law, they were nevertheless put out of business for a period of time, forced to pay a fine of $300,000, forfeit claims to about $262,000 worth of wood seized by federal agents and contribute $50,000 to a private foundation to promote conservation of “protected tree species.” Improper, illegal, federal government arrogant overreach because they could.

Everybody wonders why so many corporations are sitting on big chunks of cash and not hiring and expanding. They are streamlining, divesting whole departments, to run more efficiently with fewer people. I would submit that the Obama administration’s treatment of Gibson Guitar Corporation is a prime example of why companies large and small are not taking on more risk; why there are more lobbyists than ever.

Hiring a new worker is a risk. It takes months before they are fully pulling their weight. Expanding is a risk, the economy is not healthy. Introducing a new product is a risk. The Obama administration has made it clear that they don’t particularly like the private sector, they don’t appreciate capitalism, they feel free to sic federal agencies (IRS) (EPA)(BLM) on those who disagree, or give them trouble, or stand in their way. The Obama administration had no compunction about taking over the auto industry— and made a mess of it — which they still celebrate as a great accomplishment. You don’t take big risks when the climate is so uncertain, and that uncertainty can be laid directly in the lap of the Obama administration.



President Obama’s “Pivot” to The Minimum Wage

The United States is sending ground troops to Poland, the Polish defense minister says after meeting with Secretary of Defense Chuck Hagel. But not to worry, this is not a major escalation. Supposedly they are sending a company, about 150 soldiers, for exercises with the Polish military for a short stay, or something like that.

The Ukrainians asked for military aid, we denied them weapons, but sent MREs and military style socks, and reportedly helmets as well. They were trucked into Ukraine as it was thought a military cargo plane might be too provocative.

President Putin, on the other hand has something like 40,000 troops massed on the Ukrainian border, but says they are just there as a precaution since there is so much unrest in the Ukraine. The officers above the rank of Major in the Ukrainian military all came up through the Russian military, and they aren’t going to fight Russians.

The Russian President denies that the militants in the Ukraine have anything to do with Russia, and he is quite helpless to stop them. Although the pro-Russian activists seem to have had military training, their weapons and equipment are all Russian, and their use of tear gas and stun grenades is inconsistent with a spontaneous local militia. Last Thursday Mr. Putin referred to Ukraine as part of “New Russia.” Even when Mr. Putin openly declares his goal, Mr. Obama prefers to ignore it. The Wall Street Journal said:

The larger problem is that Mr. Obama can’t seem to admit that his assumptions about the world are being repudiated by the week. He came to office believing his own campaign rhetoric that the U.S. was unpopular mainly because of President George W. Bush. He would end these misunderstandings through diplomatic engagement, especially with our adversaries, who would respond in kind to our good will and moral example. Nowhere in the world has that happened.

Diplomacy in Geneva has come up with about what one would expect. After seven hours of negotiations they agreed that “all parties including separatists and their Russian backer, would stop violent and provocative acts, and all illegal groups would be disarmed. A joint statement made no presence of what the U.S. has said are 40,000 Russian troops massed on Ukraine’s eastern and southern borders. Kerry said that Russia is “absolutely prepared to begin to respond with respect to troops,” provided the agreement is observed.

The U.S. has sent 12 F-16 fighters and 200 support personnel to Poland. NATO’s secretary-general Anders Fogh Rasmussen said that the alliance would fly more air patrols over the Baltic region and allied ships would deploy to the Baltic.

Polish Defense Minister Tomasz Siemoniak said the United States, having announced a “pivot” to Asia, needs to “re–pivot” to Europe, and European countries that have cut back on defense spending need to reverse the trend.

The idea until recently was that there were no more threats in Europe and no need for a U.S. presence in Europe any more. Events show that what is needed is a re-pivot, and that Europe was safe and secure because America was in Europe.

According to the New York TimesMr. Obama has concluded that he will never have a constructive relationship with Mr. Putin. As a result he will spend his final two and a half years in office trying to minimize the disruption Mr. Putin can cause, and otherwise turn to other foreign policy area where progress remains possible.

The White House is preparing to nominate John Fl Tefft, a career diplomat who previously served as ambassador to Ukraine , Georgia and Lithuania.  Administration officials were leery of sending Mr. Tefft because of concern that his experience in former Soviet republics that have flouted Moscow’s influence would irritate Russia.

Obama is less concerned with irritating Russia now, and is reportedly pivoting to the George F. Kennan strategy of containment.

The more hawkish faction in the State and Defense Departments has grown increasingly frustrated, privately worrying that Mr. Obama has come across as weak and unintentionally sent the message that he has written off Crimea after Russia’s annexation. They have pressed for faster and more expansive sanctions, only to wait while memos sit in the White House without action. Mr. Obama has not even imposed sanctions on a list of Russian human rights violators waiting for approval since last winter.

Mr. Obama says that Ukraine is not a major concern for Americans. He has concentrated his public schedule around “important” issues like job training and the minimum wage. Since Mr. Putin is not interested in a partnership, Mr. Obama is not interested in the Ukraine or Russia. But then, he’s not much interested in foreign policy at all—though it’s the major part of his job description.

David P. Goldman, writing as “Spengler” says Americans are playing Monopoly, Russians are playing chess. Ukraine is a basket case with a per capita income a tenth of that of the European Community. They are deeply in debt to the Russians and dependent on Russian energy. Putin will let the West take charge of the Ukrainian disaster until it festers, and then pick and choose what he wants. And what he wants is a “new Russia.”




Follow

Get every new post delivered to your Inbox.

Join 6,431 other followers

%d bloggers like this: