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October 2007

October 31, 2007

Gossip Soup for the Soul

Guilty pleasures come in many forms. I would like to invite people to read The Soup and indulge in one of mine. Because if you read them more, they'll write more. So my motivations are largely selfish.

I've heard a plausible theory that The Soup is a dumping ground for talented press people who can not only write humorously, but are normally constrained by journalistic integrity (yeah, I know), and who want an outlet for the more tasteless, uncorroborated or otherwise not-so-printworthy material. (And it's pretty much equal opportunity gossip.)

Whoever they are, they serve a good purpose. And if you have gossip for them, make contact.
-Max Borders

Poverty and the Public Schools

Hood gives the N&O and Comrade Schofield a lesson in statistics and common sense on the issue of schoolchildren and poverty (after bad reporting by the N&O Schofield stumbles clumsily into this post).

-Max Borders

Misleading Us About School Choice

What’s the best way to dismantle public education and privatize schools? School choice. That’s what our friend Chris Fitzsimon says in a guest editorial in last week’s Public School Forum’s Friday Report.  Amusing, but certainly not true --- ask the Milwaukee Public Schools. If I really wanted to dismantle public education, let’s just say I could find more effective ways. Fitzsimon and anti-choice advocates like to demonize anyone who favors school choice and portray themselves as the guardians of the public schools. But are they?  The real goal of those who oppose school choice seems to be not providing students with quality educational opportunities, but the preservation of the public school “system.”  Yes, school choice may contribute to some schools losing revenue due to a loss of pupils. But curiously, liberals always only look at such a development as a “system” loss. No consideration is ever given to the benefits of less crowded classrooms, having children attend better schools or the potential benefits of market forces on institutional performance. A genuine interest in students generates an interest in why students choose to transfer to another school. I’m still looking for any examples by anti-choice advocates of the slightest expression of concern over any of the reasons WHY students and parents might want to flee a failing system.

 
At the heart of this issue is a simple question: Is government created to serve the individual, or merely to perpetuate the state? School choice empowers parents and families. And, it works. We trust students and families to make informed and wise decisions about which colleges their children attend.  Could we ever contemplate not having that choice?  Has doing so lead to the dismantling and ruination of public higher education? The silence is telling.

October 30, 2007

Transit Tax: Enter the Special Interests Parade

Here's a post on the special interest whores, which Fitzsimon clearly seems to be ok with -- if but by omission. The disdain for everything corporate dries up when corporations support their pet issues.
-Max Borders

(Update: Bank of America: $60,000 Wachovia: $60,000 Duke Energy: $50,000 Siemens: $50,000 (the maker of the trains!) EarthTech: $20,000 Goodrich: $12,000 US Airways: $12,000 Time Warner Cable: $12,000 AT&T: $9,000 Belk: $6,000 Charlotte Pipe & Foundry: $6,000 Carolina Panthers: $6,000 Coca Cola Bottling; $6,000 Carolinas Multiple Listing Service: $5,000 N.C. Association of Realtors: $5,000 Allen Tate Co.: $4,000 Charlotte Bobcats: $3,000 Pappas Properties: $3,000 (HT: Charlotte Observer & Chris Hayes).

Fitzsimon and the Folly Trolley

Never one to forego an opportunity to tap into the herd mentality of populist sentiment, Chris Fitzsimon sings glowingly of an apparent "majority" in Charlotte on light rail:

As Election Day gets closer, it is becoming more and more obvious that the anti-transit forces, led by Raleigh’s leading market fundamentalist think tank and its followers, are not only out of step with the majority of voters in Charlotte, but even with conservative politicians that normally agree with much of their anti-government rhetoric.

Funny. A man as educated as Mr. Fitzsimons hasn't yet grasped the concept of concentrated benefits and dispersed costs. (Read: Of course they want it Chris! It's a golden goodie gotten at the expense of other people.) That's ok. In Fitzsimon's universe, costs don't matter. Things fall like manna from heaven. Nevermind the rural folk who're having to bankroll the folly trolley. Nevermind that only Bill Gates to pay the full cost of a fare. Fitzsimon is happy with the following calculation, which pretty much sums up the "progressive" worldview:

A wants x.
B wants x.
C wants x, and so on...
---------------------------
A, B, and C get together to figure out how to make D pay for x.

This is the new age of bread and circuses folks, which actually started back in 1936. If we run out of bread, says the progressive, let them eat cake! When it comes to the costs light rail relative to benefits (better news which Fitzsimon cannot point to), even Marie Antoinette would blush.
-Max Borders

(UPDATE: Interesting article about light rail failures in Seattle. Particularly damning is this fact: “1996 promise: For $1.8 billion taxpayers would get 21.3 miles and 24 stations of light rail to be completed by 2006. 2006 results: For $4.45 billion (year of expenditure dollars) taxpayers will get 18.75 miles with 15 stations to be completed by 2016.” Sound familiar, Charlotte? HT: Brian Balfour.)

Smoking for Schip Part Deux

Another version of the smoking for the kids vid. Enjoy.
-Max Borders

Opportunity Cost and Incentives

Another day, another six-figure payment to a company in the name of "economic incentives."  This time it's to Ply Gem Industries in Cary, who plan to add 100 jobs over the next four years.

In exchange, Governor Easley has granted them $100,000 from the One North Carolina Fund.

Now here's the kicker... The One North Carolina Fund requires a local match. So Cary or Wake County or a combination of the two will also have to kick in an additional $100,000.  That's $100,000 less that those governments will have to build schools, hire police or pay for the additional growth that 100 new employees and their families will bring.

So not only do we pay to bring the jobs, the opportunity cost of that money being used somewhere else (perhaps somewhere more needed) is also lost.  Thus, the true cost to us taxpayers is actually much higher.

Wake County residents, remember this next year when the County Commissioners come begging for a transfer tax or another $1 billion school bond to "pay for growth."  They are using your tax dollars to buy more growth and not using your tax dollars to pay for the growth already here.

And another thing... I thought Cary was putting a stop to the growth, or at least that's why they elected Harold Weinbrecht as Mayor.  When you add 100 jobs, where exactly do they expect these people to live and their kids to go to school?

October 29, 2007

Tragedy of the Commons: Bruce Yandle

One of my heroes, Bruce Yandle, has a podcast on the tragedy of the commons. Every environmentalist and concerned citizen should understand this concept, as the phenomenon is responsible for 98 percent of all environmental issues -- from pollution to over-fishing. Bruce is a scholar and a gentleman. Enjoy.

(Update: pay close attention to his wisdom on incorporation and use of the Common Law versus top-down regulation.)
-Max Borders

More Horror Stories From "Single-Payer" Health Care

Check out more insight into what the so-called "progressives" want to do to America's health care system. Seems like our friends across the pond are getting desperate for alternatives from their "single-payer" system.

"Thousands of "health tourists" are going as far as India, Malaysia and South Africa for major operations – such is their despair over the quality of health services."

Remember this when a lefty tries to tell you that government run health care in other countries - such as England - results in better "health outcomes."  Seems that a state run health care system leads to poorer quality, long waiting lists and dangerous cost-cutting measures:

"The first survey of Britons opting for treatment overseas shows that fears of hospital infections and frustration with NHS waiting lists are fueling the increasing trend."

Hhmm...where have we heard that argument before? 

Read more about cases that may soon be coming to America if progressives get their way. If government-run health care is the panacea lefties continue to claim it is, why are so many Britons flying thousands of miles to seek care? This quote from a former hospital employee who flew to India to have heart surgery pretty much says it all:

'I'm sorry to say that Third World standards are what we now find in British hospitals'

Furthermore, a British doctor expresses her concerns over the NHS in this article.

"Faced with such a health service, it is easy to understand why those who can afford it choose to have private treatment or even to go abroad. So much money has gone into the NHS in recent years, yet it is hard to see where it has disappeared to. Is this really the value for money we keep hearing about?"

Combine this with a number of recent articles depicting the growing amount of people being forced to perform dentristy on themselves (ouch!) in England, and it becomes hard to take the progressive arguments seriously. Is this really the type of health care system we want to foist upon "the children?"

October 26, 2007

The Neal v. Hagan Quandary for Dems

If as widely speculated, Sen. Kay Hagan (D-Guilford) rethinks her decision and does run for the Democratic nomination for US Senate against Sen. Dole, it sets up an interesting quandary for NC Democrats and for Sen. Hagan herself.

Does Sen. Hagan run on her purported record as a pro-business Democrat and try and secure the middle?  Or does her party's left-wing pull her towards the fringes in appealing to the progressive base that would seemingly throw its support behind Jim Neal?  Does the Democratic base go towards the person that more aligns with their values or do they ride the horse they think can win.  (And in turn reaffirm the conventional wisdom stereotype that a homosexual man can't win statewide).

If Sen. Hagan runs left and cedes the middle to Dole, Hagan wins the nomination but will put herself in an even more uphill battle against Dole.  But if she runs to the middle first, does she alienate her base and make her primary fight that much harder?

It seems exactly like the primary fights Republicans have been having for years (and currently are in Giuliani v. the rest).   Run to the middle to win the state or run to the fringe to secure the nomination?

Should be interesting to watch.

Competition Works - Even in Healthcare

Concerned about the high prices of prescription drugs? Think big government solutions will help? Think again.

More evidence from this article that a competitive marketplace leads to lower prices, even in the health care field.

"The Labor Department recently reported that the inflation rate for prescription drugs dropped to 1 percent over the past year. That's a 30-year low, well below inflation, and a salve for consumers used to price increases."

The reason for this consumer-friendly news? Competition. Part of it coming from an infusion of generic drugs:

"In the past 18 months, for example, generic substitutes for the anti-cholesterol drug Zocor, the sleeping pill Ambien and the blood pressure drug Norvasc have arrived on the market."

Seems that once a patent expires, those evil pharmaceutical companies driven by their greedy profit motives compete to provide those in need with drugs at ever-decreasing prices.

Moreover, most of the restraint on prescription drug prices comes from good old healthy competition.

"Even as generic-drug competition has suppressed prices, the price war among drug retailers has compounded the savings for consumers. Last year, Wal-Mart began offering hundreds of commonly used generics for a flat $4 fee. Target followed, and then K-mart expanded its own offerings, featuring three-month supplies of several generics for $15. Publix, a Southeastern grocery chain, seemingly outdid everyone by announcing that seven antibiotics would be free."

Did that just say free antibiotics?

"Remember this, what real competition looks like, the next time you hear about "market failures" in health care."

And just imagine how much cheaper drugs would be for Americans if the government wasn't subsidizing the drug industry with billions of taxpayer dollars.  

Pro-lifers Getting Comfortable with Giuliani

This just in: Sam Brownback -- the former dark horse pro-life candidate -- has come very close to endorsing Rudy Giuliani for president. After meeting with Giuliani yesterday, Brownback stated that he is "much more comfortable" with Giuliani's pledge to nominate pro-life justices. I have three words: Planned Parenthood v. Casey (1992). In this -- the most pro-abortion decision ever handed down by the Court -- Reagan nominee Sandra Day O'Connor declared that abortion must be legal because "at the heart of liberty is the right to define one's own concept of existence, of meaning, of the universe, and of the mystery of human life."

My only point here is that Reagan -- as pro-life a president as we are likely to get with the Republican Party -- put O'Connor on the bench. Could Giuliani do much worse? In any case, if pro-lifers are to have a seat at the Giuliani table, they are going to have to act now.

All that being said, I sure hope the next president -- whoever he is -- moves to secure the border!

Gangs and Racism: Rising Tensions in LA and Durham

Newsweek is currently running an interesting article on how Hispanic gangs, such as the Mexican Mafia, have been targeting not only African-American gang members, but African-Americans simply. Here in North Carolina, we have seen a similar trend -- as the murder of Chanda Brown Mwicigi may suggest.

Indeed, over the past several years North Carolina has experienced a disturbing surge in gang activity. Between 1999 and 2004, Wake County saw a 5,743.3 percent increase in gang membership. During the same period, the city of Durham saw a 333.3 percent increase. A 2005 report by the Governor’s Crime Commission estimated that 22.2 percent of all gang members in North Carolina are Hispanic (with ethnicity unknown for another 19.4 percent). By contrast, Hispanics accounted for only 7 percent of total state population in 2004. Nationally, Hispanics are thought to comprise 49 percent of total gang membership. Many of these gang members -- in some cases, as much as 90 percent -- are illegal aliens.

The simple fact is that far too many illegal aliens are not here to "get a good job and raise a family." Illegal immigrants are no more virtuous than any other people. And given the fact that they have to: 1) break the law in order to enter the United States; and 2) break the law again (often through stealing someone's identity) in order to be employed in the United States, it is reasonable to suppose that illegal immigration fosters a culture of lawlessness, not to mention disdain for American culture.

In any case, we'll never solve the problem of criminal illegal aliens until we secure the border.

Climate Change Poppycock: N.C. Neck Deep in It

So stunning in its stupidity, so ridiculously far-fetched in its claims, it's verging on one of those big lies a la Josef Goebbels we've been talking about:

North Carolina could net more than 300,000 new jobs by 2020 by implementing energy efficiency programs and using more renewable energy, according to a report presented Tuesday to the Legislative Commission on Global Climate Change. The preliminary report is an attempt to quantify the economic result of more than 30 policy options suggested by an advisory committee established to help lawmakers develop a global warming response plan. All the recommendations of the Climate Action Plan Advisory Group, if approved, are expected to return the state to 1990 levels of greenhouse gas emissions within 13 years. (10/23 Associated Press)

The reporter reports as if there were no smile to be cracked, no snort to be swallowed, nor guffaw to be stifled. 300,000 new jobs? Surely they don't mean net jobs (well they can't mean that).

How many times do we have to remind people that we can "create" thousands of jobs in the glassmaking industry by breaking windows around the state. The costs will be displaced, and thus jobs lost (or never even created) somewhere else in the economy.

Then, with these prosperity-destroying policies, we'll achieve "1990 levels of greenhouse gas emissions within 13 years"? I don't know whether to laugh or cry. And I'm not the only one giggling through my tears, read this from a "green" economist -- one who is normally way too charitable to carbon-neutrality enterprise to begin with.

I just wish any economist - much less these rent-seeking enablement committee - would or could explain to me with a shred of earnestness how they expect this clusterf*%#$ of Pigovian taxes, subsidies, fees, and other assorted technocratic measures are going to save the planet when we don't even know whether the warming of 1 or 2 degrees will harm the planet to start with (nevermind the issue of whether humans are causing the warming).
-Max Borders

(Update: Roy Cordato not only slams the N&O for its irresponsible coverage but the team of "experts" that released the report and their dubious funding sources.)

October 25, 2007

Help Middle Class Children... Light up a Smoke

Humor distills absurdity.
-Max Borders

Big Tent Dems?

Why is it that only after finding out that Jim Neal is gay are Democrats and DSCC chairman Chuck Schumer now out re-recruiting Kay Hagan to run against Elizabeth Dole?

I thought the Dems were the open and inclusive party as compared to those bigoted (and in many cases it seems, closeted) Republicans?  Is this leading Democrats admitting that they don't think a homosexual man can get elected statewide in North Carolina?
If they truly believed sexual orientation doesn't matter, then why not jump in and throw full support behind Jim Neal?

It seems just a wee bit convenient that Schumer who originally wanted Grier Martin over Hagan now finds Hagan to be an acceptable candidate when his only other option is a gay man.

Uh Oh: Beauchamp Writing about the Jena 6 too?

A reporter from Jena attempts to set the record straight on what appears to have been a little bit of Chinese Whispers, a little bit of selection bias, and a little bit of that media narrative-crafting to which we've become accustomed. A sliver:

The reason the Jena cases have been propelled into the world spotlight is two-fold: First, because local officials did not speak publicly early on about the true events of the past year, the media simply formed their stories based on one-side's statements – the Jena 6. Second, the media were downright lazy in their efforts to find the truth. Often, they simply reported what they'd read on blogs, which expressed only one side of the issue.

The real story of Jena and the Jena 6 is quite different from what the national media presented. It's time to set the record straight. (Read on.)

It's ok Al and Jesse, the damage is done. You've already made enough bank for your new cars.
-Max Borders

Amnesty Bill Fails by Eight Votes

As we warned a few weeks ago, the Dream Act came perilously close to passing in the Senate. It failed by 8 votes.

When are we going to secure the border?

Education and Economics 101

If you subsidize the price of a good, you’ll increase demand for it –and ultimately, increase the price of the good.  That’s one of the basic laws of economics we all should have learned in school. If you don’t believe me, look at the ever escalating cost of attending public and private colleges and universities in this country.  Earlier this week, the College Board announced that tuition and fees at public and private institutions of higher education rose at more than double the rate of inflation.  Tuition and fees are up 6.6 percent from last year, and 5.7 percent from the year before, outpacing both the consumer price index and prices in the economy.

One of the biggest culprits in ever rising college costs is student aid. Has student aid really helped to make college more affordable? I’d say the opposite is true. Over the last thirty years, it has helped to increase demand and has contributed to ever rising tuition costs (See Trends in College Pricing 2007 and Trends in Student Aid 2007. Want to reduce tuition costs?  Get rid of some of the frivolous student aid programs, limit student enrollment and provide alternative career tracks for the many students who would be better off elsewhere. There would be no choice but for colleges to reduce tuition. If we would only try it.

Healthcare: Good (Quiet) News

While you're likely to hear a lot about escalating rates for HMOs and PPOs (standard issue health insurance), it appears consumer driven plans are not only growing, but are getting cheaper and encouraging preventive care. Consider this from the grande dame of health policy reform:

As presidential candidates unveil their health reform proposals and as Congress debates expansion of government programs, companies around the country are quietly finding their own ways to manage health costs... The latest evidence comes from a new study by CIGNA [pdf] which shows that first year medical costs trended 12% lower for its consumer-directed health plans (CDHPs such as HSAs and HRAs) compared to its HMOs and PPOs.

In addition, the expenses paid directly by members in Cigna’s CDHPs were similar to traditional plans in the first year and 4% lower in the second year, refuting criticisms that consumer-directed plans shift costs to consumers. In addition, the two-year survey found that use of preventive care increased, CDHP members continued to receive recommended care at rates similar to traditional plan members, and medication compliance, especially for those with chronic conditions, improved.


This is great news. In my family, we love our HSA. Looks like I'm going to have to fight the government to keep it. (More good news here.)
-Max Borders

October 24, 2007

Lies and the Left: Hand in Glove

First it was Stephen Glass of TNR. Now Pvt. Scott Thomas Beauchamp is making up stuff.

This is really disappointing. As a former enthusiastic New Republic subscriber (yes, I know where they stand), I had hoped they had put this behind them. They once had more than an ounce of credibility. Now, it's almost like they're the same people who call middle class families "the working poor." Oh wait, that's the Democrat Party. Or maybe Al Gore, who cites fictional scientists who claim 20 ft. sealevel rises before the 21st Century is out.

But seriously, this is bad. These mendacious writers are willing to distort reality for the sake of both personal gain and an ideological win-at-all costs mentality that has become so pervasive it now plagues both the leftist blogsphere and the mainstream media. It's sick. But the big lie is the one that will be believed, right? Just wait till the Schip issue revs up again, you'll be knee-deep in lies from the left.
-Max Borders

The Real Economics of Smoking Bans

David Henderson absolutely dismantles this false economic argument in favor of smoking bans. There are great (subtle) ethical parallels in this piece, too, which make it a must-read.
-Max Borders

Where right, left and center agree?

Daniel B. Klein argues that there is a consensus about global free trade despite the nativist, protectionist, xenophobic and otherwise confused rhetoric of anti free-traders everywhere.
-Max Borders

The Rise of Bobby Jindal

Interesting piece on the new Governor of Louisiana.

October 23, 2007

Healthcare Compromises: Look East?

Singapore has an interesting model, part of which is laid out in this article. They have been able to achieve very good results, such as better health at lower cost (measured as percentage of GDP). What's the key to their success?

The key to Singapore’s efficient health care system is in its emphasis on the individual to make a significant contribution towards their own healthcare costs. With this focus, the Government has been able to maintain a relatively low level of public expenditure on health for many years with the major burden put on individuals and/or their employers.

This is largely because they have kept competition and markets intact by voucherizing healthcare instead of nationalizing it, which we could do here in the US with tax credits.

The left won't even begin to look at their model, however, because they're obsessed with government control. But as we enter this ideological war over healthcare, compromise may be found on a little island in Asia.
-Max Borders

Healthcare: No Choice? No Savings (or Quality or Access)

A doozy from John Goodman:

- Does the plan force anyone to choose between health care and other uses of money?
- Does the plan force any provider of care to compete for patients based on price and/or quality of care?
- Does the plan allow patients now trapped in schemes that ration care by waiting -- Medicaid, SCHIP and emergency room free care -- to have the same access to doctors, hospitals, clinics, etc., that privately insured patients have?

If the answer to the first question is "no," the plan will not control costs. If the answer to the second question is "no," the plan will not improve quality. If the answer to the third question is "no," the plan will not increase access to care. And if the answer to all three is "no" -- which I believe it is -- the plan is hardly worth talking about.

Read the whole thing.
-Max Borders

The Teacher Shortage: What We seem to be forgetting..

Earlier this month, I attended the UNC Tomorrow Commission's final listening session at North Carolina State University in Raleigh.  For the past six months, the commission has been touring and soliciting suggestions from citizens on how UNC might work with businesses and communities to help redress the many challenges currently facing the state. One of these challenges, referred to in a ten minute opening video, is North Carolina's need for 34,000 new public school teachers by 2014. That’s a significant shortfall and a serious problem. However, as I sat and listened, it was hard not to think that much of the current “crisis” was self inflicted.

Low teacher-student ratios (one of Governor Easley’s favorite initiatives and largely based on the results of inconclusive research) have artificially inflated the need for more classrooms and teachers. Student class size regulations have placed a heavy burden on growing school districts. Granting temporary waivers to school districts or increasing class size regulations by merely one student can provide immediate relief and more reasonably spread out the costs of growth. In addition to class size regulations, cumbersome teacher certification requirements have made it nearly impossible for qualified individuals to use their skills and experiences in the classroom. A number of states like New Hampshire and California have shown the way by developing new alternative teacher certification programs that speed the process of getting trained teachers in the classroom. The teacher shortage is a serious issue. We’d be wise to remember the policies that helped get us here, but also not ignore those that do much to help us move on.

Zany Lil Idea to Improve Public Education

Short of full privatization subsidized with vouchers for the poor, we have to think of ways to improve public education -- which pretty much stinks.

So here's a thought: Why not introduce an element of competition? No, I'm not talking about free-market fundamentalism for schools, I'm talking about competition among schools. Why not pit schools against one another for academics just as we do athletics? Why don't we add some incentives in there?

For example: the XYZ Elementary School Bears goes up against the ABS Elementary School Eagles. Whoever has the best aggregate improvement in test scores/writing scores or whatever gets to go to the waterpark! Kids love friendly competition. It takes not only our inherently competitive and groupish drives to win, but adds in some fun.  I bet you'd get positive secondary effects like smarter kids being more likely to help struggling kids ("We want to win, so I'll help!").

Just a thought.
-Max Borders

Skybus... The Details Emerge

Oh wow, this gets much worse than the original $3.9 million that the state of NC is chipping into the operation. Check out this article in today's N&O and this one from the Greensboro News & Record.

I'll break out some of the lowlights:
In addition to the $3.9 million from the state, Forsyth and Guilford counties along with a few other groups will contribute an additional $1.5 million in marketing;
The PTI Airport Authority is subsidizing each passenger on Skybus by $2.15, or $1.3 million per year if every flight is full;
And the destinations of the flights from Greensboro?  Well, it's a list of thriving metropoli such as:
- Punta Gorda, Fl.
- Chicopee, Mass.
- Portsmouth, NH (probably a little too late for the Edwards staff to take advantage of though)
- St. Augustine, Fl
- Ft. Lauderdale, Fl
- Gulfport, Miss. and
- Burbank, CA
Just check out this wonderful quote from Skybus' CEO regarding incentives:
"Without the total package," Diffenderffer said, "much as I love you guys, I can be bought."

To top it off, a spokesman for the Department of Commerce said that this deal contains "no risk" since incentives are offered only after milestones are met. No risk?  In the airline industry? Surely you must be kidding.  There is significant and real risk.  The failure rate of low-fare airlines is enormously high as I posted yesterday. Some people just don't get it.

October 22, 2007

HRC

I know we don't usually talk much about Presidential politics here on RCC, but I just read one little thing I wanted to share.

Senator Clinton was in Fresno, California today giving a campaign speech and during her talk on alternative energy "Clinton asked how America let Brazil get ahead in terms of fuel production from sugar cane."

Well, Senator, if Florida or Louisiana had first in the nation caucuses we may be well ahead of Brazil in fuel production from sugar cane.  But since all you Presidential candidates go to Iowa pandering for votes and make promises for support for ethanol production from corn, we have the system that we have.  Where politics determines our alternative energy policy rather than practicality.

Just a case where the sound bite she tries to make a point with has about 100x more to the story than the 3 seconds you'll get to see on the nightly news at 6:30.

Oh, and I have to point out the humor in her line about "the era of cowboy diplomacy" being over the same day that Chuck Norris endorses Mike Huckabee for President.

Who Wants to Go to Cleveland? Er... Columbus

***Update, I read the original article wrong to say that the airline flies to Cleveland, as a commenter pointed out it is actually Columbus, which outside of Ohio State University and MLS' Columbus Crew, has less reason to travel there than Cleveland.  The destination may change, the points about investing in low-fair airlines and using corporate incentives remain.

I know the Rock & Roll Hall of Fame is probably pretty neat and the Indians just made a good run into the baseball playoffs, and that LeBron James guy is pretty good, but it's still Cleveland.

That's not stopping Gov. Easley from giving $3.9 million of your tax dollars to a low-cost airline to operate out of Greensboro's PTI airport and fly only to its hub in Cleveland, OH.  (Go to its web site and click your starting city as Greensboro, your only destination choice is Cleveland.)

Now, I dabble a little in stocks and investments and somebody once told me, "Never own an airline stock for any reason."   Good advice considering four of the major US carriers have all declared Chapter 11 bankruptcy in the last five years.

And do any of these companies sound familiar?
Song
Hooters Air
Independence Air
Midway Airlines
Air South
America West
ValuJet
Tower Air

These are a few of the 19 "low-cost" airlines that are now defunct.  And that doesn't include the other 17 "low-cost" airlines already in service.

If the state is going to give away my tax dollars to private companies, at least invest in companies that have some sort of track record of success.  The airline industry is not exactly a model of profits and stability.

A Moral Case Against SCHIP Expansion

Mens Rea is the term folks in the criminal law use when talking about the intention behind a criminal act. In other words, the act alone does not make a person guilty; he must also have a “guilty mind.” So, for example, if Vice President Cheney had accidentally killed his friend in a hunting accident (rather than merely wounding him), we certainly wouldn’t say he is a murderer. We would have to show that Cheney had some motive, or possess some evidence that he was acting with malice.

Can something similar be said about a good act? That is, an act of kindness, benevolence, or charity?  Is someone doing a moral good if there is no intent to do good behind the act—a “good mind”? Most reasonable people would say no. If a five-dollar bill falls out of my pocket into the hands of a beggar as I dig for my transit card, I haven’t done anything good. If someone points a gun at me, takes the five, and gives it to the beggar, I still haven’t satisfied any moral obligation I may have to the poor (much less the middle class). And that’s precisely why we should be suspicious of any claim that “we” or “society” has a moral obligation to provide healthcare for the middle class.

Not only is the government not society, but society is merely an agglomeration of individuals. Societies cannot have moral obligations any more than they can tell the truth. Only individuals can. Indeed, if a majority in Congress were to have expanded SCHIP (Children’s Medicaid) to families making from $60,000 to $80,000 per year, the state would simply be stripping certain people in society of resources and redistributing said resources to others—most of whom don’t need them by definition (read: they aren’t poor).

It’s not merely that the government would be stripping people of resources, but of the very moral impetus from which ‘being good’ arises. By expanding any entitlement, the government is not somehow helping people carry out their moral duties. One’s internal sense of goodness is the sense upon which the very notion of moral responsibility to others rests. By expanding Medicaid, the government would be removing part of that moral sense. Perhaps worse, the government would be absolving people who have means of their responsibility to provide for their own children, while foisting that duty upon those who never asked for it. And there is nothing moral whatsoever in that. In fact, sprinkling the words ‘children’ and ‘poor’ liberally in one’s arguments will not change the fundamental backwardness and immorality of what amounts to a naked attempt to socialized medicine piecemeal through the plodding machinery of Congressional legislation.

It is time opponents of collectivism started talking in such stark terms again. The left is attempting not only to co-opt the language of morality, but to do so with the up-is-down postmodern rhetoric that would make middle class people the “working poor” and call coercive redistribution through taxation a ‘moral duty’. Enough is enough. It is time someone stood up and pointed at the left’s mens rea in using children to highjack Medicaid for the purposes of incremental socialism, and using lies to win power at all costs. They are treating us like that frog in the water who won’t jump if the heat goes up but a degree at a time.  Never before has there been a party in America for whom the ends so easily justify the means.  Never before has there been a party so devoid of principle. Never before has Congress been so patient in their efforts to see over longer time horizons in order to dupe the American people by making them feel the pain of expensive health insurance to the point that they cry uncle and beg Congress to create the single payer system.

But what should stick most in our craw is the elitism behind the notion that a powerful few wish not only speak for you in what counts as moral responsibility towards others, but that they're willing to continue using state coercion to get us there (compulsory compassion).The righteous indignation of these elites gets shrill, despite the fundamental weakness of their arguments and the moral vacuity of their positions. It's time, folks. Call them out. Call them on their b.s. This crusade to extend healthcare benefits to the middle class is a cover for socialism. And it's evil. Let's call it that.
-Max Borders

October 19, 2007

Middle Class, Moving Targets

One from Boudreaux:

1. Judith Warner writes that "More and more people are being priced out of a middle class existence" ("The Clinton Surprise," October 19).  This statement is true, but only because more and more Americans are getting richer.  Consider the percentage of American households in each of these different annual-income categories in 1967 and in 2003 (all reckoned in 2003 dollars):

                       1967    2003
$75K and up     8.2       26.1
$50K - $75K    16.7     18.0
$35K - $50K    22.3     15.0
$15K - $35K    31.1     25.0
under $15K      21.7     15.9

If the middle class is disappearing, it's doing so by swelling the ranks of the upper classes.


2. And Russ Roberts on Will on middle class mendacity/confusion about SCHIP expansion, which many people clearly don't understand...

-Max Borders

The Environmental Movement in a Nutshell

In this interview, Steve Hayward of AEI puts Gore's Nobel prize in perspective with this classic summation:

"Gore's prize is another phase of the climate silly season that we've been in for several years now."

Hayward proceeds to dissect the motives of the left-wing enviro-Nazis with one telling paragraph:

"Gore exemplifies the urge most environmentalists have to exert ever greater political control over resources. Some environmentalists want to do this because they believe we use "too many" natural resources and want to be in charge of rationing them; others believe the rationalist fallacy that government can direct better use of resources than private individuals and the marketplace. To be sure, resource scarcity can be a source of conflict and war, but democracies and nations with market economies seldom have to go to war to resolve such conflicts."

SCHIP: Despite Failed Override, Debate Ain't Over

Here are some facts on SCHIP, particularly unilateral expansion of children's Medicaid that would cover children in NC up to 300 percent of poverty.

Some direction for people on the right side of the issue:

- Let's look to expand access through tax credits (not SCHIP expansion), not gov't run healthcare and private crowdout.
- Let's reduce the cost of healthcare, which is the number one concern of North Carolinians, according to our DecisionMaker poll.
- Let's get the message out that it's the government that is increasing the cost of healthcare, more than any other single factor.
- Let's ask why we can't buy health insurance in other states, to get lower rates and increased competition.
- Let's ask why we can't change the taxcode so as to make insurance portable and not tied to employment.
-Max Borders

Mecklenburg Polling

This month we did a special edition of our DecisionMaker poll focusing on Mecklenburg County.  With a repeal of the half-cent transit tax, a $516 million school construction bond and a high-profile mayor's race all on the ballot, we though it would provide some interesting results.

Without further ado, the highlights:

1. Which of the following issues needs the most attention from Charlotte and Mecklenburg County:
            Construction of new schools - 27%
            New and improved highways - 22%
            Light rail system - 12%
            Crime and public safety - 36%

2. Do you think taxes in Mecklenburg County are:
            Much too high - 39%
            Somewhat too high - 31%
            Just about right - 25%
            Somewhat too low - 2%
            Much too low - 1%

3. If the $516 million bond referendum for building new public school facilities were held today, would you be voting for or against this referendum?
            For - 58%
            Against - 29%
            Not Sure - 13%

4. When you think about the new light rail system, how often will you use it:
            More than once a week - 5%
            Weekly - 3%
            Couple of times a month - 6%
            Monthly - 3%
            Occasionally - 22%
            Not at all - 59%

5. In 1999, voters in Mecklenburg County approved a 1/2 cent sales tax increase to support a light rail system and mass transit.  Will you vote to repeal the 1/2 cent mass transit tax?
           Yes - 39%
           No - 54%
           Not Sure - 7%

6. Would you support a real estate transfer tax in Mecklenburg County?
            Yes - 16%
            No - 66%
            Not sure - 18%

7.  Would you be more or less like to vote for a county commissioner who voted to put new taxes on the ballot?
            More - 9%
            Less - 70%
            No difference - 8%
            Not Sure - 13%

Interesting results.  The anti-tax sentiment in Mecklenburg County is fairly high, with a combined 70% of voters thinking that taxes are already somewhat or much too high.  Yet, a majority say they will vote against repealing the transit tax.  It would seem that the message saying that if the transit tax is repealed that property taxes will go up is working and resonating with voters.

As for the Mayor's race, one statistic should tell you everything you need to know to see how it is going to turn out:
Opinion of Beverly Earle:
            Favorable - 17%
            Unfavorable - 13%
            No opinion - 38%
            Not aware - 32%

Yikes.

Again, these are just the highlights, full results should be on the web on Monday.

October 18, 2007

A Skirmish Won

While it's gratifying that the U.S. House sustained President Bush's veto of Congress' SCHIP expansion to middle class families, this is no time to become complacent. This vote is just a prelude to the war for America's heart and soul that will occur in 2008. If anything, conservatives' fall from grace in 2006 has enabled the battle lines to become clearer: democracy, personal responsibility and limited government on the one hand; socialism on the other. For both sides, the battle over SCHIP thus represented a milestone (but expect more to come) -- with some, including Civitas, warning that SCHIP could destroy healthcare; and others, such as Representative Harry Reid (D-Nev.), calling the defeat "one of the worst things to happen to this country besides the war."

With the stakes so high, it's a shame that there is so much confusion over what Americans want out of their healthcare system. As Civitas' October poll indicates, far more people (43 percent) are concerned about the cost of healthcare than they are about the number of "poor" who lack insurance. Yet, one of the primary reasons healthcare is so expensive is because the government has made it so -- through coverage mandates, for instance, and prohibiting the interstate sale of policies.

Civitas' polling also indicates that most people (77 percent) are happy with the quality of healthcare they are receiving. Yet as we have seen in every country in which socialized medicine has been tried, quality declines when the government takes over.

More government = increased costs and lower quality. Yes, things are becoming clearer. ... but expect more confusion ahead as the debate continues into 2008.

October 17, 2007

Stem Cell Research: More Trouble from the Liberals in Congress

The Senate will soon begin debate on a mammoth government spending bill: the Labor, Health and Human Services, and Education Appropriations Act, 2008 (S.1710). The bill contains mixed news for  pro-lifers and those committed to protecting the dignity of human life. The good news: the bill continues Hyde Amendment provisions which prohibit the federal government from funding abortions as a health care services option under Medicaid. The bad news: the bill also calls for a complete reversal of current federal policy regarding embryonic stem cell research (ESCR). Senator Tom Harkin (D-Iowa) inserted a provision into the bill that would allow the National Institutes of Health to fund research on embryonic stem cell lines created prior to June 15, 2007. Current policy, enacted by the Bush Administration in August 2001, allows NIH to only fund research on stem cell lines created prior to August 9th 2001. At the heart of this policy was the belief that financial incentives should not be an influence on decisions to create or destroy human embryos. Harkin’s provision would not only overturn the current stem cell policy, but would go further by providing financial incentives to conduct human embryo research -- and require taxpayers to fund it. The President should veto this legislation not because the bill comes in almost $10 billion over his spending request – but most important, because the bill places the federal government in the position of sanctioning and encouraging the destruction of human life.

The Democrats continued obsession with embryonic stem cell research remains a curiosity.  Doubtless, links to the abortion movement shed some light. Still, from a scientific perspective, the Democrats preoccupation with ESCR lacks a compelling logic. In addition to the obvious ethical considerations, ESCR is plagued by many problems not the least of which are genetic incompatibility (often resulting in the body rejecting the stem cells and the creation of tumors) and research results that have been less than promising. Fortunately, research in other such areas as adult stem cells and amniotic fluid-derived stem  (AFP) cells bypass the ethical concerns and offer more promising research results than ESCR (For more information see: Stem Cell Research in North Carolina...What's Really Going On?). Among many in the scientific community, it’s no secret whose research agenda is driven by politics.

Lose the "We"

Collectivism moralisms have no place in an agglomeration of individuals. So thinks Arnold Kling:

When people use we in today's politics , they are doing two things.

1. Appealing to a moral entity that stands apart from and above John, Mary, or any other individual
2. Treating government as the embodiment of that higher moral entity

You can be a Masonomist and believe (1). It is a good thing to have a conscience and moral standards. It is a good thing to engage in volunteer work, to form organizations that address the needs of others, and to act unselfishly toward family and others in your community.

But government does not have to be, nor is it, the embodiment of any higher moral authority.
-Max Borders

Universal Health Coverage: Just a Mirage

Yesterday's Investor's Business Daily featured an article by Benjamin Zycher - senior fellow at the Manhattan Institute for Policy Research - challenging the mantra repeated by socialized medicine cheerleaders that a "single-payer system" (i.e. the gov't) will reduce those pesky administrative costs currently being paid by private insurance companies.The argument is based on these findings (not surprisingly from a government report): "the net (administrative) cost of private health insurance plans is about 11% to 14% of total premiums paid, while direct administrative costs reported in the Medicare budget are about 3% of Medicare outlays."

Closer scrutiny, as one might suspect, contrasts these figures:

"Medicare receives (administrative) services not shown in its budget from other parts of the federal government."

Hmmm, interesting. So the government report distorts the administrative costs of a government program. Then there's this finding:

"Based upon the academic literature, a barely plausible lowest estimate ... raises the true (administrative) cost of delivering Medicare benefits to about 24% to 25% of (tax-financed) Medicare outlays, about double the net cost of private health insurance."

Nevermind the fact that private insurance company administrative costs are inflated in no small part due to heavy government regulation. Zycher continues:

"The purported single-payer "savings" in administrative costs are illusory, and cannot be separated from the larger adverse effects inevitable in a system in which government policy is driven by interest groups rather than patients."

Zycher delivers this much-needed dose of reality to those clinging to an idealogical faith based on unlimited resources:

"In a world in which resources are limited always and everywhere, single-payer "coverage" cannot guarantee health care, and "universal coverage" is a mirage."

Blogging Will Be Light Due to Poll Luncheon

Did you forget to reserve your spot at the Poll Luncheon today? Or if you're in Charlotte, we're having our special edition Poll Luncheon tomorrow, too. Come see us!

October 16, 2007

The Slippery Slope

Well, hate to say we saw this coming, but here is the first fallout from the Goodyear bill.

After some disagreement with the Concord Town Council regarding his proposal to build a drag strip, Bruton Smith, owner of Lowe's Motor Speedway in Concord, is now threatening to move the track somewhere else (like Rock Hill, SC).

Hmm... large economic engine in the county threatening to move if they don't get their way.  I wonder where he learned that trick?

Concord has already stated they will step forward with an "incentive" package to convince him to stay.
How long until Gov. Mike "Crash" Easley pokes his head out of his woodworking shop to offer state assistance?

Would Bruton Smith really move Lowe's Motor Speedway somewhere else, or is he just blackmailing the town, county and state into giving him cash?

I suspect the latter, and I say call his bluff.  Let's stop being held hostage by businessmen looking to fatten their wallets off our tax dollars before this snowballs any more.

Our worst fears from the Goodyear precedent are coming true.

Smithfield vs. UFCW

I don't know how many of you have been following the unionization effort at the Smithfield Foods hog processing plant down in Tar Heel, NC, but it's providing a great example of how unreasonable the United Food and Commercial Workers (UFCW) are being in their demands and the lengths they will go to deny the workers the right to vote.

Yes, the union is denying the workers the right to vote.

Take a look at the offer made by Smithfield that was rejected by the union:

  • All employees would be informed of the election process at a joint meeting held by Smithfield and the UFCW. Smithfield would tell employees they were free to meet with union representatives, and would agree to bargain in good faith with the UFCW if the employees voted for union representation.
  • Smithfield would limit its campaign activities to a series of plant meetings with employees. The UFCW would be allowed to monitor those meetings and would be given equal time to address employees.
  • All campaign messages would be approved for truthfulness by a third party. Both sides would agree to avoid personal attacks.
  • Smithfield would provide the UFCW with an accurate list of current employees, including addresses and phone numbers.
  • Campaign votes would be counted by a third party. Smithfield and union representatives would monitor the counting process.
  • Both sides would agree to cease negative media campaigns.

Seems pretty fair.  But the union only wants a check-card process where a majority of workers would state their preference for a union but not actually cast a secret ballot saying they wanted to unionize.

Why is the union so afraid of a secret ballot vote?  It's the same process it uses itself to elect its leaders, but it's not good enough for the workers?

(HT: Labor Pains)

Rethinking Light Rail

Linear thinking. It’s a euphemism used to describe an inability to grasp either the wider implications of a policy, or the complexity of a situation. I also happen to think it points to how a 19th-century mode of travel came to the Queen City in A.D. 2007. I’m talking about Charlotte’s fixation with light rail. It’s supposed to take cars off of congested streets, be greener, and turn a town into a “world class city.” These seem like good things on the face. But at what cost?

First, virtually nobody who’ll ride light rail could afford it if they had to pay the full cost. That’s right: people in rural Tennessee are paying for Charlotte to have a gilded trolley. Not only did the federal government have to kick in hundreds-of-millions for the project to have a chance of getting built, but everyone in town had to pay more for many of the things they bought. Even the state chipped in.

This is a phenomenon known as “concentrated benefits and dispersed costs” in which politicians and special interests collude to bring expensive goodies to an area in exchange for a their votes, and then stick everyone else with the bill. (Thank you, Mr. Mayor.) We’ll pass over the basic unfairness of such a system. After all, light rail conserves energy and reduces CO2 emissions, right?

Not exactly. According to urban planning expert Randall O’Toole, the “majority of light-rail systems consume more energy per passenger mile than the average passenger car.” And things get worse when one factors buses out of the system, worse still when one factors in the energy used to construct a line. (There’s a parallel story about comparative CO2 emissions.)

Speaking of buses, did you know that (according to a 2004 study by the Reason Foundation), the next least expensive alternative to light rail in Charlotte, bus rapid transit (BRT) would be nine times cheaper than light rail? Nine times. And that’s from a 2004 estimate. We’ve seen how the cost projections have ballooned with each passing year. But if we consider the costs by per-unit-of-congestion-relief, that’s when the picture becomes stark: Cost per vehicle trip reduced? $43,725. Cost per vehicle mile reduced? $9578. Cost per vehicle hour reduced? $384,537. Staggering. That’s money we’ll never get back.

To achieve the same effect as light rail, you could offer BRT (but then you could use the rest to retire carbon credits, plant trees, or – gasp – fund anti-congestion measures like the conversion of HOV lanes to HOT lanes). Yes buses. But therein lies the rub.

Many people simply fancy themselves as too good to ride a bus. While BRT is better for the environment, far less expensive, more flexible, and arguably just as comfortable, a pervasive mentality one might describe as elitist makes people abandon their ‘smart growth’ sensibilities rather quickly. This mentality was captured well in this quote taken from a transplant to Charlotte by the Observer:

"‘I am never going to get on a bus in my entire life, but I used trains every day when I lived in Baltimore and Washington,’ said [Ruth] Henry, who works at an investment firm in University City. ‘I am totally on board for using tax dollars to build trains.’”

Most of us are not so bourgeois as to require non-cost-effective commuter lines to get to work. We drive our cars. And cars are supposed to be adding to the problem. If we have light rail, we’ll decrease congestion and pollution won’t we? Transportation expert David Hartgen estimates Charlotte will reduce traffic congestion by three percent at most – but only for about a year or so. Is that worth a half-billion (with-a-B) and rising?

And while we’re treated to horror stories about air pollution almost daily during the summer months, air pollution due to cars has gone down on nearly every single metric since the 1960s – and it keeps going down – even with three times the number of cars on the road. Violations of EPA ozone standards still occur, but then again, EPA lowers the standards perennially so they can keep their jobs. And what would be the effect on pollution of a three percent decrease in auto use (a charitable estimate)? Doesn’t light rail give off pollution?

Politicians don’t really want or have to answer tough questions about costs and benefits, because they use a different currency than the rest of us. And that’s why it’s up to us to rein them in and not let them hide behind environmental moralisms. But first we have to gain some of our own perspective about how we’re affecting other people when we allow ourselves to be seduced by sustainability fetishes. A couple of rules of thumb might be: if it’s too expensive to exist without subsidy, it’s probably not sustainable. And if it sounds too good to be true, it probably is.
-Max Borders

October 15, 2007

Incentive Trap: A Way Out?

The N&O has an editorial about Bob Orr's incentive plan in which they basically conclude his heart is in the right place, but that the game may be too vicious not to play:

So some state aid would continue to flow. Would it be enough to entice a Dell Computer to pick North Carolina over Virginia? (Or Toyota to choose us over Mississippi?)

There's the rub. The much-criticized incentives aren't offered in a vacuum