Voice For Liberty

Tag: Global warming alarmism

  • KDHE, Sunflower Electric, Earthjustice, Center for Climate Strategies: different peas in the same pod

    Evidence that a business seeking regulatory approval of its project enjoyed an apparently close relationship with the Kansas Department of Health and Environment should not be surprising.

    Reporting in the Kansas City Star leads with “Hundreds of emails document that officials of a Kansas power plant enjoyed a cozy relationship with the Kansas regulators who issued them a building permit in December.” (Kansas agency, utility worked closely on permit for plant)

    A press release from Earthjustice, the legal advocacy arm of the Sierra Club, proclaimed “A new report reveals Sunflower Electric (Sunflower) enjoyed a cozy relationship with Kansas regulators during the permitting process for the highly controversial coal-fired power plant Sunflower seeks to build in Holcomb.”

    This incident — the details are not important for understanding the broad lesson — may be looked on as an example of regulatory capture. As defined in Wikipedia, “regulatory capture occurs when a state regulatory agency created to act in the public interest instead advances the commercial or special interests that dominate the industry or sector it is charged with regulating.”

    In more detail, the Wikipedia article explains: “For public choice theorists, regulatory capture occurs because groups or individuals with a high-stakes interest in the outcome of policy or regulatory decisions can be expected to focus their resources and energies in attempting to gain the policy outcomes they prefer, while members of the public, each with only a tiny individual stake in the outcome, will ignore it altogether. Regulatory capture refers to when this imbalance of focused resources devoted to a particular policy outcome is successful at ‘capturing’ influence with the staff or commission members of the regulatory agency, so that the preferred policy outcomes of the special interest are implemented.”

    Regulatory capture — or at least the heavy-handed attempt by special interest groups to influence public policy to fit their interests — is a non-partisan sport. We shouldn’t be surprised to see this form of government failure taking place at all times, no matter which party or politicians are in power.

    As an example on point, the same type of activity happened during the administration of former Kansas Governor Kathleen Sebelius regarding the same electric plant that is the focus of controversy today. Her regulator, former KDHE Secretary Rod Bremby, denied the permit for the plant based on its carbon dioxide emissions, the first time that had been done in the United States.

    Radical environmentalists rejoiced. Sebelius was invited to speak at an Earthjustice conference held in Denver in June, 2008. Here are a portion of her written remarks, as supplied to me at that time by her press office, thanking Earthjustice for all it had done in Kansas to help Sebelius and mold her regulatory regime:

    When Big Coal pumped their money and politics into Kansas, EarthJustice was there to fight back:

    • Provided litigation and public support
    • Helped shape the media messaging and outreach
    • Rallied supporters and engaged the public to get involved

    It was a victory for all of us and I appreciate their help.

    About that time Sebelius established the Kansas Energy and Environmental Policy Advisory Group, or KEEP. The activities of this group were managed — at no cost to the state — by the Center for Climate Strategies, a group that expressly advocates for energy policies and regulations based on an extremist view of climate science.

    The invasion of Kansas — at least the Sebelius administration — by Earthjustice and Center for Climate Studies proves the point: Regulatory capture is a non-partisan opportunity.

  • Kansas and Wichita quick takes: Monday May 23, 2011

    Wichita City council. As it is the fourth Tuesday of the month, the Wichita City Council handles only consent agenda items. The council will also hold a workshop. Consent agendas are usually reserved for items thought to be of non-controversial nature. Today’s Wichita Eagle spotlights one item where the city is proposing to hire an outside firm to inspect the roof of the airport for damage from last September’s storm. Some, including Council Member Michael O’Donnell (district 4, south and southwest Wichita) wonder why the city can’t do the inspection with it’s own engineering staff and resources. … Of further note is that the city proposes to use general obligation bonds to borrow the funds to pay for this inspection. This is similar to last December, when the city decided to also use bonds to borrow money to pay for an analysis of nine aging fire stations and what repairs and upgrades they might require. While borrowing to pay for long-term capital projects is fine, this is borrowing for thinking about long-term projects. … The workshop will cover Century II parking meters, something involving the North Industrial Corridor, and a presentation on next year’s budget. The detailed agenda packet is at Wichita City Council May 24, 2011. No similar information is available for the workshop topics. … Next week is the fifth Tuesday of a month and the day after a holiday, so there’s two reasons to explain why there won’t be a city council meeting next week.

    Sedgwick County Commission. In its Wednesday meeting, the Sedgwick County Commission will consider approval of the county’s portion of the Hawker Beechcraft deal. In order to persuade Hawker to stay in Kansas rather than move to Louisiana, the State of Kansas offered $40 million in various form of incentive and subsidy, and it was proposed at the time that the City of Wichita and Sedgwick County each add $2.5 million. Last week the Wichita City Council approved its share, which can only be described as corporate welfare. It was widely reported that Hawker had received an offer, said by some to be worth as much as $400 million, to move to Louisiana. But that offer was not a valid threat of Hawker leaving Kansas, as in a December 2010 television news report, Louisiana’s governor said “they couldn’t guarantee the number of jobs that would have been required for them to come here.” … The meeting agenda is at Sedgwick County Commission, May 25, 2011.

    Kobach on voter reform in Wall Street Journal. Today’s Wall Street Journal opinion section carries a piece by Kris W. Kobach, who is Kansas Secretary of State. The title is The Case for Voter ID: You can’t cash a check, board a plane, or even buy full-strength Sudafed over the counter without ID. Why should voting be different? In it, Kobach writes Kansas is the only state with all of these elements of voter ID reform: “(1) a requirement that voters present photo IDs when they vote in person; (2) a requirement that absentee voters present a full driver’s license number and have their signatures verified; and (3) a proof of citizenship requirement for all newly registered voters.” In support of the need for these reforms, Kobach provides evidence of the prevalence of election fraud. He also cites evidence that there is already widespread possession of the documents necessary to vote: “According to the 2010 census, there are 2,126,179 Kansans of voting age. According to the Kansas Department of Motor Vehicles, 2,156,446 Kansans already have a driver’s license or a non-driver ID. In other words, there are more photo IDs in circulation than there are eligible voters. The notion that there are hundreds of thousands of voters in Kansas (or any other state) without photo IDs is a myth.” … Some critics of these reforms fear that they will suppress voter turnout, and primarily that of Democratic Party voters. Kobach counters: “If election security laws really were part of a Republican scheme to suppress Democratic votes, one would expect Democrats to fight such laws, tooth and nail. That didn’t happen in Kansas, where two-thirds of the Democrats in the House and three-fourths of the Democrats in the Senate voted in favor of the Secure and Fair Elections Act. They did so because they realize that fair elections protect every voter and every party equally. No candidate, Republican or Democrat, wants to emerge from an election with voters suspecting that he didn’t really win. Election security measures like the one in my state give confidence to voters and candidates alike that the system is fair.” … The bill is HB 2067, and is the easiest way to understand it is by reading the supplemental note.

    Tiahrt, former Congressman, to address Pachyderms. This week the Wichita Pachyderm Club features Todd Tiahrt, Former Congressman for the fourth district of Kansas, speaking on the topic “Outsourcing Our National Security — How the Pentagon is Working Against Us.” I suspect the prolonged decision process of selecting where the build the Air Force refueling tanker will be a topic. After the Pentagon awarded to contract to AirBus in 2008, which Boeing protested, the Wall Street Journal wrote: “The Pentagon’s job is to defend the country, which means letting contracts that best serve American soldiers and taxpayers, not certain companies. Defense Department rules explicitly state that jobs cannot be a factor in procurement and that companies from certain countries, including France, must be treated as if they are U.S. firms in contract bids. Such competition ensures that taxpayers get the best value for their money and soldiers get the best technology.” More on this decision is here. The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club.

    Wichita speaker lineup set. The schedule of speakers for the Wichita Pachyderm Club for the next several weeks is set, and as usual, it looks to be an interesting set of programs. The public is welcome and encouraged to attend Wichita Pachyderm meetings. For more information click on Wichita Pachyderm Club. Upcoming speakers are: On June 3, Nola Tedesco Foulston, District Attorney, Eighteenth Judicial District of Kansas, speaking on “An office overview and current events at the Eighteenth Judicial District of Kansas District Attorney’s office.” On June 10, John Allison, Superintendent of USD 259, the Wichita public school district, on “An update from USD 259.” On June 17, The Honorable Lawton R. Nuss, Kansas Supreme Court Chief Justice on “The State of the Kansas Courts.” On June 24, Jim Mason, Naturalist at the Great Plains Nature Center will have a presentation and book signing. Mason is author of Wichita’s Riverside Parks, published in April 2011. On July 1, Jay M. Price, Director of the Public History Program at Wichita State University, speaking on “Classes of Values in Kansas History.” On July 8, Dave Trabert, President, Kansas Policy Institute, on “Stabilizing the Kansas Budget.”

    Blue Ribbon Commission coming to Wichita. “Local residents will have an opportunity to voice concerns and offer suggestions on how to improve the state’s court systems during two public meetings next week in Wichita. A panel from the Blue Ribbon Commission (BRC), which was appointed by the Kansas Supreme Court to review the state’s court systems, will listen to public comments during the meetings at 3:00 pm and 7:00 pm, Thursday, May 26, 2011 at Century II, in Room 101, in Wichita. The BRC will examine ways to assure proper access to justice, the number of court locations, services provided in each location, hours of operation, the use of technology, possible cost reductions, and flexibility in the use of court personnel and other resources, and any other topic that may lead to the more efficient operation of our courts.” For more information, see the Blue Ribbon Commission Website.

    School choice cast as civil rights issue. Star Parker, after citing the case of a homeless mother who falsified an address so her child could get into a good school: “Public school reality today for black kids is one that overwhelmingly keeps them incarcerated in failing, dangerous schools. It’s evidence of the indomitable human spirit that, despite horrible circumstances, many poor unmarried black mothers understand the importance of getting their child educated and will do whatever it takes to get their kid into a decent school. … But let’s not forget the bigger picture that the NAACP has consistently opposed school choice and voucher initiatives and has been a stalwart defender of the public school system that traps these kids and prohibits the freedom and flexibility that these mothers seek. … Generally, black establishment politicians and organizations such as the NAACP have defended government public schools and education status quo and sadly have hurt their own communities. Nothing contributes more to the growing income gaps in the country than disparities in education, and the impact continues to grow.” … A common choice of allowing widespread school choice is that poor and uneducated parents aren’t capable of making wise selections of schools for their children.

    Medicare reform necessary. Wall Street Journal in Republicans and Mediscare: Paul Ryan’s GOP critics are ObamaCare’s best friends: “With ObamaCare, Democrats offered their vision for Medicare cost control: A 15-member unelected board with vast powers to set prices for doctors, hospitals and other providers, and to regulate how they should be organized and what government will pay for. The liberal conceit is that their technocratic wizardry will make health care more rational, but this is faith-based government. The liberal fallback is political rationing of care, which is why Mr. Obama made it so difficult for Congress to change that 15-member board’s decisions. Republicans have staunchly opposed this agenda, but until Mr. Ryan’s budget they hadn’t answered the White House with a competing idea. Mr. Ryan’s proposal is the most important free-market reform in years because it expands the policy options for rethinking the entitlement state.” The unelected board referred to is the Independent Payment Advisory Board. With its mission to reduce spending, some have aid this board is the feared “death panel.”

    Science, public agencies, and politics. Cato Institute Senior Fellow Patrick J. Michaels explains the reality of cap-and-trade proposals in this ten minute video. If the Waxman-Markey bill was implemented, world temperature would be reduced by 0.04 degrees. That compares to a forecast increase of 1.584 degrees. If implemented worldwide by the Kyoto nations, the reduction would be 0.08 degrees worldwide. … Michaels says the growth in emissions by China eclipses anything we in America can do. … Michaels echos Dwight Esienhower’s warning that “we must also be alert to the equal and opposite danger that public policy could itself become the captive of a scientific-technological elite. The prospect of domination of the nation’s scholars by Federal employment, project allocations and the power of money is ever present — and is gravely to be regarded.” He goes on to explain some of the dangers of “public choice science.”

  • Kansas and Wichita quick takes: Tuesday May 3, 2011

    Why not school choice in Kansas? WhyNotKansas.com is a website that holds information about the benefits of giving families the freedom of school choice. The site is new this week, and is a project of Kansas Policy Institute and Foundation for Educational Choice. Innovation in school choice programs is common in many states. Kansas, however, still grants the education bureaucracy a monopoly on the use of public dollars in education.

    Economics in one lesson this Monday. On Monday (May 9), four videos based on Henry Hazlitt’s classic work Economics in One Lesson will be shown in Wichita. The four topics included in Monday’s presentation will be The Curse of Machinery, Disbanding Troops & Bureaucrats, Who’s “Protected” by Tariffs?, and “Parity” Prices. The event is Monday (May 9) at 7:00 pm to 8:30 pm at the Lionel D. Alford Library located at 3447 S. Meridian in Wichita. The library is just north of the I-235 exit on Meridian. The event’s sponsor is Americans for Prosperity, Kansas. For more information on this event contact John Todd at john@johntodd.net or 316-312-7335, or Susan Estes, AFP Field Director at sestes@afphq.org or 316-681-4415.

    Sowell on government intervention. Must government intervene to fix the economy? Politicians face tremendous pressure to be seen as active, writes Thomas Sowell: “It is not politically possible for either the Federal Reserve or the Obama administration to leave the economy alone and let it recover on its own. Both are under pressure to ‘do something.’ If one thing doesn’t work, then they have to try something else. And if that doesn’t work, they have to come up with yet another gimmick. … The idea that the federal government has to step in whenever there is a downturn in the economy is an economic dogma that ignores much of the history of the United States. During the first hundred years of the United States, there was no Federal Reserve. During the first one hundred and fifty years, the federal government did not engage in massive intervention when the economy turned down. No economic downturn in all those years ever lasted as long as the Great Depression of the 1930s, when both the Federal Reserve and the administrations of Hoover and of FDR intervened. The myth that has come down to us says that the government had to intervene when there was mass unemployment in the 1930s. But the hard data show that there was no mass unemployment until after the federal government intervened. Yet, once having intervened, it was politically impossible to stop and let the economy recover on its own. That was the fundamental problem then — and now.”

    Salina’s first TIF district. The Salina Journal looks at issues surrounding that city’s first TIF district. Of note: “TIF districts are prevalent in other cities and states. For instance, Manhattan uses TIF districts so much that it no longer considers it an incentive, [Dennis Lauver, president and CEO of the Salina Area Chamber of Commerce] said.”

    Charles on energy and stuff. “We are making it cool to use less stuff,” says Charles, Prince of Wales, KG KT GCB OM AK QSO CD SOM PC AdC(P) FRS. Irish documentary film makers Ann McElhinney and Phelim McAleer have a new short film that looks at the activities of England’s Prince Charles as compared to what he wants the rest of us to do. Write the documentariasts: “Prince Charles is the latest to be exposed as an eco-Hypocrite in our short film series. The Prince is coming to the US this week to speak at Georgetown University about ‘sustainability’ so we decided to see just how he lives up to his own standards. We’ve made a short film that exposes just how hypocritical the Prince is as he lives a fabulous, luxury life whilst lecturing the rest of us that we have to live with less. Prince Charles — Hypocrite exposes the double standard that is at the center of so much environmentalism. … He is coming to the US to lecture on sustainability and tells people they must live with less in order to save the planet but tells us we must end our ‘age of convenience.’ He wants to make our lives more inconvenient to save the planet from alleged climate change but the Prince refuses to make any changes in his own life.”

    Government and entrepreneurship. From an essay by Dane Stangler titled Entrepreneurship and Government, contained in Back on the Road to Serfdom: The Resurgence of Statism, edited by Thomas E. Woods, Jr.: “The third way in which the state can intrude on entrepreneurship is through distorted incentives: either with misguided regulations or unintended consequences, the government could end up creating the wrong incentives for entrepreneurs. Will Baumol discussed such institutional incentives in a famous article in which he argued. ‘How the entrepreneur acts at a given time and place depends heavily on the rules of the game — the reward structure in the economy — that happen to prevail.’ Problems arise when these rules of the game encourage ‘unproductive’ entrepreneurial behavior. The principal example of such unproductive behavior is rent seeking, which occurs when companies pursue a bigger slick of economic activity by means other than market competition — that is, when they graduate to seeking favors from Washington rather than seeking a competitive edge by means of innovation. A company’s entreaties to government for protective action often indicate a returns curve that has already turned negative.” … While the article mentions “favors from Washington,” we can easily substitute state capitols, city halls, or county courthouses. For example, Wichita’s economic development policy is firmly rooted in the belief that the city can direct entrepreneurial activity with no wrong incentives or ill consequences. Listening to the recent summit of aviation industry leaders with Kansas Governor Sam Brownback, it is apparent that this industry thrives on, and will continue to expect, large doses of incentives and special treatment and favor from government. But is the aviation industry best for the future of Wichita? While government leaders across Kansas pledge not to lose most important industry, we know it can happen (see Detroit). We have to be careful to make sure that our government policies don’t hasten this loss.

  • Study looks at spending, strategy in cap and trade debate

    While those who advocate cap and trade legislation charge that conservatives, particularly Charles and David Koch, have outspent them, a study finds the opposite.

    According to American University Professor Matthew Nisbet, in 2009 environmental groups spent $394 million on climate change and energy policy efforts such as promoting cap and trade. Opposition groups spent $259 million. Information like this helps place the reports of conservative spending, including that of Charles and David Koch, in perspective. Without this, we’re left with the one-sided reports from Greenpeace and the New Yorker magazine, in which numbers are mentioned without — or with little — context.

    Nesbit’s report is Climate Shift: Clear Vision for the Next Decade of Public Debate.

    The report also looks at expenditures on lobbying. In this area, it’s less clear how much was spent lobbying for or against cap and trade legislation, as companies and organizations report their total spending on all lobbying activity, not the amount spent on specific bills. In this light, Nisbet reports that “environmental groups were able to forge a network of organizations that spent a combined $229 million on lobbying across all issues. In comparison, the network of prominent opponents of cap and trade legislation spent $272 million lobbying across all issues.”

    Spending on elections is mixed. Considering contributions to members of Congress, proponents of cap and trade legislation outspent opponents. But in independent expenditures, the situation is reversed. But on Proposition 23 in California, environmental groups spent the most.

    In conclusion to its chapter on spending, the report states: “… propelled by a wealthy donor base and key alliances with corporations and other organizations, the environmental movement appears to have closed the financial gap with its opponents among conservative groups and industry associations. Indeed, the effort to pass cap and trade legislation may have been the best-financed political cause in American history. The effort also demonstrates not only the vast revenue base and organizational capacity of the environmental movement, but also the movement’s enhanced ability to coordinate activities among its constituent members and to build partnerships.”

    Climate Change Advocacy: Revenues, Spending, and Activities

    By Matthew Nisbit

    After the failure of the Senate cap and trade bill in August 2010, many commentators blamed the bill’s demise on the massive spending by fossil fuel companies, industry associations and their conservative allies. Others, however, noted that environmental groups—joined by dozens of leading companies and organizations—had devoted record amounts of financial resources in an effort to pass the bill. As an unnamed Obama administration official said about environmental groups, “They spent like $100 million and they weren’t able to get a single Republican convert on the bill.”

    To better understand the influence of spending in the cap and trade debate, in this chapter I review the nature, composition and funding sources of the U.S. environmental movement and compare these factors to the opposing coalition of conservative think tanks and industry associations. Then, analyzing data compiled from tax returns, annual reports, and other sources, I systematically compare the revenue and forms of spending by both sides in the debate.

    Though most environmental groups are limited in how much money they can devote to direct lobbying, in the debate over cap and trade, they were able to spend heavily on efforts to educate the public and policymakers on the need for a mandatory emissions cap, hiring the country’s top political consultants. They also invested in partnerships with corporations and other organizations in a strategy aimed at counter-balancing the amount spent on lobbying by opposing industry associations and companies.

    As the analysis indicates, the environmental movement has made sizable gains in closing the spending gap with their conservative and industry opponents. Indeed, the effort to pass cap and trade legislation may have been the best-financed political cause in American history. The effort also demonstrates not only the vast revenue base and organizational capacity of the environmental movement, but also the movement’s enhanced ability to coordinate activities among its constituent members and to build alliances.

    Continue reading from Chapter 1 of Climate Shift: Clear Vision for the Next Decade of Public Debate

  • Kansas and Wichita quick takes: Thursday March 23, 2011

    Owens still blocks judicial selection reform. Kansas Reporter writes that one man, Senator Tim Owens, an attorney and Republican from Overland Park, is still blocking judicial selection reform. But a move by the House gives Senate President Stephen Morris a chance to let Senators vote to concur with the reform measure passed by the House. Or, Morris could refer the measure to Owens’ Judiciary committee, where it will die. See New way of picking appeals judges gets second shot.

    Greed is killing Detroit. Greed is often portrayed as a negative quality of the rich. But Investor’s Business Daily tells what happens when union greed — yes, everyone can be greedy — runs wild in a city: “Census data released Tuesday show Detroit’s population has plunged 25% since 2000 to just 713,777 souls — the same as 100 years ago, before the auto industry’s heyday. As recently as the 1970s, Detroit had 1.8 million people. What’s happening is no secret: Detroiters are fleeing an economic disaster, the irreversible decline of the Big Three automakers. … Sure, a lot of the blame goes to a generation of bad management. But the main reason for Detroit’s decline is the greed of the industry’s main union, the UAW, which priced the Big Three out of the market.” … Having killed the goose with the golden egg once, union leadership seeks seek to do it again: “Even as Detroit collapses, new UAW chief Bob King promises to ‘pound’ the transplants into submission and force them to drink his union’s poison, too. Given what we know, every town that is now home to a foreign automaker should be very afraid. If King has his way, they’ll soon suffer Detroit’s fate.”

    Liberal Bias at NPR? Stephen Inskeep, co-host of the National Public Radio program Morning Edition, defends his network against charges of liberal bias. In The Wall Street Journal Inskeep writes that NPR draws an audience with diverse political views, including conservatives: “Millions of conservatives choose NPR, even with powerful conservative alternatives on the radio.” Which, I would say, is all the more reason why the network should stand on its own without government funding. … Inskeep also writes about the recent undercover video by James O’Keefe, who NPR claims, through a spokesperson, to have “inappropriately edited the videos with an intent to discredit” NPR. If true, shame on O’Keefe. The NPR spokesperson concedes that then-NPR chief fundraiser Ron Schiller made some “egregious statements.”

    Electric cars questioned. Margo Thorning writing in The Wall Street Journal, explains that the new crop of all-electric or near-all-electric cars not worthy of government support. She notes the Consumer Report opinion of the Chevrolet Volt: “isn’t particularly efficient as an electric vehicle and it’s not particularly good as a gas vehicle either in terms of fuel economy.” … Batteries remain a problem: “A battery for a small vehicle like the Nissan Leaf can cost about $20,000 and still only put out a range of 80 miles on a good day (range is affected by hot and cold weather) before requiring a recharge that takes eight to 10 hours. Even then, those batteries may only last six to eight years, leaving consumers with a vehicle that has little resale value. Home installation of a recharging unit costs between $900 and $2,100.” … Thorning notes that half of the electricity that powers America is generated by coal, so all-electric cars are still not free of greenhouse gas emissions. Also, “a substantial increase in the numbers of them on the road will require upgrading the nation’s electricity infrastructure.” … While electric cars are not ready to save the earth, the U.S. government insists on intervention: “Despite these significant flaws, the government is determined to jump-start sales for plug-ins by putting taxpayers on the hook. The $7,500 federal tax credit per PEV is nothing more than a federal subsidy that will add to the deficit. There are also federal tax credits for installing charging stations in homes and businesses and for building battery factories and upgrading the electric grid. The administration’s goal — one million PEVs on the road by 2015 — could cost taxpayers $7.5 billion.” And saddle Americans with expensive automobiles that do little to address the problem they’re designed to solve. Reading the Journal article requires a subscription, but it is also available at The American Council for Capital Formation, where Thorning is Senior Vice President and Chief Economist.

    Government as business. Yesterday’s reading from Robert P. Murphy’s book Lessons for the Young Economist explained the value of the profit-and-loss system in guiding resources to where they are most valued. For those who wan to “run government like a business” I offer today’s excerpt from the same book, which explains how lack of the ability to calculate profit means this can’t happen: [Regarding a capital investment made by Disney as compared to government:] The crucial difference is that the owners of Disneyland are operating in the voluntary market economy and so are subject to the profit and loss test. If they spend $100 million not on personal consumption (such as fancy houses and fast cars) but in an effort to make Disneyland more enjoyable to their customers, they get objective feedback. Their accountants can tell them soon enough whether they are getting more visitors (and hence more revenue) after the installation of a new ride or other investment projects. Remember it is the profit and loss test, relying on market prices, that guides entrepreneurs into careful stewardship of society’s scarce resources. In contrast, the government cannot rely on objective feedback from market prices, because the government operates (at least partially) outside of the market. Interventionism is admittedly a mixture of capitalism and socialism, and it therefore (partially) suffers from the defects of socialism. To the extent that the government buys its resources from private owner — rather than simply passing mandates requiring workers to spend time building bridges for no pay, or confiscating concrete and steel for the government’s purposes — the government’s budget provides a limit to how many resources it siphons out of the private sector. (Under pure socialism, all resources in the entire economy are subject to the political rulers’ directions.) However, because the government is not a business, it doesn’t raise its funds voluntarily from the “consumers” of its services. Therefore, even though the political authorities in an interventionist economy understand the relative importance of the resources they are using up in their program — because of the market prices attached to each unit they must purchase — they still don’t have any objective measure of how much their citizens benefit from these expenditures. Without such feedback, even if the authorities only want to help their people as much as possible, they are “flying blind” or at best, flying with only one eye.

  • Kansas and Wichita quick takes: Monday March 21, 2011

    Wichita City Council this week. As it is the fourth Tuesday of the month, the Wichita City Council handles consent agenda items only and often has a workshop. Consent agenda items are thought by the agenda-builder to be non-controversial, and are voted on by the council as a group, unless a council member requests to pull an item for individual discussion and voting. … This week’s meeting will also feature the awarding of a key to the city to Kansas Governor Sam Brownback. Perhaps the governor will take a moment to comment on his economic development plan, which discourages the type of targeted incentives that Wichita relies on. … The agenda packet is at 03-22-2011 Council Agenda Packet.

    Government the problem. Rasmussen: “Ronald Reagan famously declared in his first inaugural address in January 1981 that ‘government is not the solution to our problem; government is the problem.’ Forty-six percent (46%) of Likely U.S. Voters tell us in a new national telephone survey that that policy position is held mostly by conservatives and 40% say Reagan’s view is shared by most Americans.” The poll finds “Just 19% of the Political Class believe Reagan’s view is shared by most Americans.” The political class is the minority of voters who believe in big government. Rasmussen says they “tend to trust political leaders more than the public at large and are far less skeptical about government.” The Wall Street Journal has more on this at Populism and the Political Class.

    Budget worse than thought. “The Congressional Budget Office on Friday released its analysis of President Obama’s 2012 budget proposal and found it does less to rein in deficits and the debt than the administration had estimated.” A large share of the blame is placed on the extension of the Bush-era tax cuts. See CBO: Obama budget worse than projected on 10-year deficit.

    Detroit turns schools over to charters. From Education Week: “The financially embattled Detroit school system has announced a controversial plan to turn nearly a third of the district’s 141 schools over to charter operators or education-management organizations by next school year. Officials say their only other option is to close dozens of low-performing schools. If the plan to hand 41 schools over to outside managers is approved by the school board, the 73,000-student Detroit district will be borrowing a page from the same playbook that a growing number of large urban districts seem to be using.” … The article notes that Philadelphia turned over seven schools to charter operators, and Los Angeles will turn over seven next year. Charter schools are funded by public money but operate largely outside the existing public school system. They usually have wide latitude in setting policies, and generally the teachers union is not involved. Not everyone thinks the plan will work, with one critic writing “Chartering schools is not a silver bullet that can solve the long-standing governance, financial, and academic issues that districts like Detroit face.” … Kansas has few charter schools as Kansas law is designed to ensure that few charters will be granted.

    The State and the Intellectuals. Murray N. Rothbard asks the question “Why do people obey the edicts and depredations of the ruling elite?” and provides the answer. From For a New Liberty: The Libertarian Manifesto: The answer is that, since the early origins of the State, its rulers have always turned, as a necessary bolster to their rule, to an alliance with society’s class of intellectuals. The masses do not create their own abstract ideas, or indeed think through these ideas independently; they follow passively the ideas adopted and promulgated by the body of intellectuals, who become the effective “opinion moulders” in society. And since it is precisely a moulding of opinion on behalf of the rulers that the State almost desperately needs, this forms a firm basis for the age-old alliance of the intellectuals and the ruling classes of the State. The alliance is based on a quid pro quo: on the one hand, the intellectuals spread among the masses the idea that the State and its rulers are wise, good, sometimes divine, and at the very least inevitable and better than any conceivable alternatives. In return for this panoply of ideology, the State incorporates the intellectuals as part of the ruling elite, granting them power, status, prestige, and material security. Furthermore, intellectuals are needed to staff the bureaucracy and to “plan” the economy and society. … In the modern era, when theocratic arguments have lost much of their lustre among the public, the intellectuals have posed as the scientific cadre of “experts” and have been busy informing the hapless public that political affairs, foreign and domestic, are much too complex for the average person to bother his head about. Only the State and its corps of intellectual experts, planners, scientists, economists, and “national security managers” can possibly hope to deal with these problems. The role of the masses, even in “democracies,” is to ratify and assent to the decisions of their knowledgeable rulers.

    Global warming panic explained. A liberal tries to explain why she thinks the world will end, and what should be done about it. From Battlefield315.

  • More left-liberal environmental hypocrisy

    This time it’s Robert Redford caught in a few “do as I say, not as I do” moments. He opposes environmentally-friendly development near a vineyard he owns, as reported in the New York Times: “Robert Redford, the actor and environmental superhero, is a vocal supporter of renewable power and sustainable growth — but it seems that doesn’t include a proposal for an ecofriendly housing development in his corner of the Napa Valley.”

    But if you have $1,975,000 he’ll sell you a lot for a luxury vacation home.

    He campaigns against the use of oil — while at the same time being paid by United Airlines to create advertisements encouraging flying.

    Filmmakers Ann McElhinney and Phelim McAleer have put together a short film that illustrates. View it below or in glorious high-definition at Robert Redford Hypocrite.

  • Kansas and Wichita quick takes: Friday December 31, 2010

    This Week in Kansas. On This Week in Kansas guests Rebecca Zepick of State of the State KS, Kansas Public Radio Statehouse Bureau Chief Stephen Koranda, and myself discuss the upcoming session of the Kansas Legislature. Tim Brown is the host. This Week in Kansas airs on KAKE TV channel 10, Sunday morning at 9:00 am.

    Tax increment financing. “Largely because it promises something for nothing — an economic stimulus in exchange for tax revenue that otherwise would not materialize — this tool [tax increment financing] is becoming increasingly popular across the country. … ‘TIFs are being pushed out there right now based upon the but for test,’ says Greg LeRoy. ‘What cities are saying is that no development would take place but for the TIF. … The average public official says this is free money, because it wouldn’t happen otherwise. But when you see how it plays out, the whole premise of TIFs begins to crumble.’ Rather than spurring development, LeRoy argues, TIFs ‘move some economic development from one part of a city to another.’ … In Wichita, those who invest in TIF districts and receive other forms of subsidy through relief from taxes are praised as courageous investors who are taking a huge risk by believing in the future of Wichita. Instead, we should be asking why we have to bribe people to invest in Wichita. Much more on tax increment financing at Giving Away the Store to Get a Store: Tax increment financing is no bargain for taxpayers from Reason Magazine.

    Lessons for the Young Economist. The Ludwig von Mises Institute has published a book by Robert_P._Murphy titled Lessons for the Young Economist. Of the book, the Mises Institute says “It is easily the best introduction to economics for the young reader — because it covers both pure economic theory and also how markets work (the domain of most introductory books).” From my reading of samples of the book, I would agree, and also add that readers of all ages can enjoy and learn from this book. The book is available for purchase, or as is the case with many of the works the Institute publishes, it is also available to download in pdf form at no charge. Click on Lessons for the Young Economist.

    The worst Congress. While liberals praise the 111th Congress as one of the most productive ever, not all agree. The Washington Examiner reprises some of the worst moments of this Congress, and concludes: “Our Founding Fathers were always wary of those who wanted government to do lots of big things. That’s why they created a system that separated powers among three more or less equal branches and provided each of them with powerful checks and balances. When professional politicians become frustrated with Congress, it is a sign that our system is working as intended. Columbia University historian Alan Brinkley told Bloomberg News recently that ‘this is probably the most productive session of Congress since at least the ’60s.’ When Congress votes on bills that no one reads or understands, it can be quite ‘productive.’ Americans have already rendered a verdict on such productivity and elected a new Congress with orders to clean up the mess in Washington.”

    China has seen the future, and it is coal. George Will in The Washington Post: “Cowlitz County in Washington state is across the Columbia River from Portland, Ore., which promotes mass transit and urban density and is a green reproach to the rest of us. Recently, Cowlitz did something that might make Portland wonder whether shrinking its carbon footprint matters. Cowlitz approved construction of a coal export terminal from which millions of tons of U.S. coal could be shipped to Asia annually. Both Oregon and Washington are curtailing the coal-fired generation of electricity, but the future looks to greens as black as coal. The future looks a lot like the past.” Will goes on to explain how it is less expensive for coastal Chinese cities to import American and Australian coal rather than to transport it from its inland region. China uses a lot of coal, and that is expected to increase rapidly. The growth of greenhouse gas emissions in China trumps — by far — anything we can do in American do reduce them, even if we were to destroy our economy in doing so.

  • Wind power again reaps subsidy

    The editorial page of the Wall Street Journal is at the forefront of letting Americans know just how bad an investment our country is making in wind power, as well as other forms of renewable energy. A recent Review and Outlook piece titled The Wind Subsidy Bubble: Green pork should be a GOP budget target holds these facts:

    • The recent tax bill has a $3 billion grant for wind projects.
    • The 2009 stimulus bill had $30 billion for wind.
    • Wind power installations are way down from recent years.
    • The 2008 stimulus bill forces taxpayers to pay 30% of a renewable energy project’s costs. Wind energy also get a tax credit for each unit of power produced.
    • “Subsidies for renewable energy cost taxpayers about $475,000 for every job generated.”
    • “The wind industry claims to employ 85,000 Americans. That’s almost certainly an exaggeration, but if it is true it compares with roughly 140,000 miners and others directly employed by the coal industry. Wind accounts for a little more than 1% of electricity generation and coal almost 50%. So it takes at least 25 times more workers to produce a kilowatt of electricity from wind as from coal.”

    This information is timely as Kansas Governor Mark Parkinson recently released a list of his “achievements,” three of which involve increasing wind power in Kansas.

    Incoming Kansas governor Sam Brownback is in favor of wind energy too, and he also supports federal subsidies and mandates for ethanol production and use. In endorsing Brownback the Kansas Association of Ethanol Producers said “… no other public official has done more to promote the merits of ethanol than Sam Brownback. Whereas ethanol is the future of America’s fuel supply, Sam Brownback is the future of Kansas.”

    The Wall Street Journal has also long been opposed to this intervention in the market for ethanol, recently quoting a report by a group of U.S. Senators: “Historically our government has helped a product compete in one of three ways: subsidize it, protect it from competition, or require its use. We understand that ethanol may be the only product receiving all three forms of support from the U.S. government at this time.”