obamacare

No More Elections or Campaigns: Liquid Democracy

Liquid Democracy - Pirate Party wiki

Liquid Democracy – Pirate Party wiki

I’m watching friends develop ulcers and crack under the strain of anxiety related to the election today. The huge amount of time and money spent to manipulate voters to cast their vote for candidates and ballot measures, with most of the propaganda oversimplifying or outright lying to gin up outrage or hatred of others, is one of the least productive activities in our lives. Two sides at war in a not-quite-literal sense, not devasting cities and killing people, but dividing and coarsening the people’s understanding of what it is realistically possible for a good government to do and denigrating the good faith of the opposition.

There are better ways, enabled by the new zero-cost, high-bandwidth communications of the Internet.

Athenian-style direct democracy lives on in the New England town meeting. Ideally, direct democracy means a community comes together in one hall and decides important issues by discussing and voting on them directly, as in ancient Athens. But even small communities had trouble handling all of the complex issues that might come up and eventually had to elect representatives, allowing citizens to delegate their votes to one person they trusted to act in their stead. Direct democracy was not scalable, and democracy itself could be dangerous since majority rule needed to be restrained by individual rights. A majority could otherwise vote itself benefits and loot the treasury or persecute individuals.

The last chapter of P. J. O’Rourke’s Parliament of Whores colorfully describes the problem of today’s New England town meeting form of government. A developer has proposed a golf course and condo complex, and town residents are voting on a sewer issue that can prevent it. The future residents, of course, have no say in the vote:

It was at this moment, in the middle of the Blatherboro sewer debate, that I achieved enlightenment about government, I had a dominion epiphany, I reached regime satori. The whole town meeting was suddenly illuminated by the pure, strong radiance of truth (a considerable improvement over the fluorescent tubes).

It wasn’t mere disillusionment that I experienced. Government isn’t a good way to solve problems; I already knew that. And I’d been to Washington and seen for myself that government is concerned mostly with self-perpetuation and is subject to fantastic ideas about its own capabilities, I understood that government is wasteful of the nation’s resources, immune to common sense and subject to pressure from every half-organized bouquet of assholes, I had observed, in person, government solemnity in debate of ridiculous issues and frivolity in execution of serious duties. I was fully aware that government is distrustful of and disrespectful toward average Americans while being easily gulled by Americans with money, influence or fame. What I hadn’t realized was government is morally wrong.

The whole idea of our government is this: If enough people get together and act in concert, they can take something and not pay for it. And here, in small-town New Hampshire, in this veritable world’s capital of probity, we were about to commit just such a theft. If we could collect sufficient votes in favor of special town meetings about sewers, we could make a golf course and condominium complex disappear for free. We were going to use our suffrage to steal a fellow citizen’s property rights. We weren’t even going to take the manly risk of holding him up at gunpoint.

Not that there’s anything wrong with our limiting growth. If we Blatherboro residents don’t want a golf course and condominium complex, we can go buy that land and not build them. Of course, to buy the land, we’d have to borrow money from the bank, and to pay the bank loan, we’d have to do something profitable with the land, something like — build a golf course and condominium complex. Well, at least that would be constructive.

We would be adding something — if only golf — to the sum of civilization’s accomplishments. Better to build a golf course right through the middle of Redwood National Park and condominiums on top of the Lincoln Memorial than to sit in council gorging on the liberties of others, gobbling their material substance, eating freedom.

What we were trying to do with our legislation in the Blatherboro Town Meeting was wanton, cheap and greedy — a sluttish thing. This should come as no surprise. Authority has always attracted the lowest elements in the human race. All through history mankind has been bullied by scum. Those who lord it over their fellows and toss commands in every direction and would boss the grass in the meadow about which way to bend in the wind are the most depraved kind of prostitutes. They will submit to any indignity, perform any vile act, do anything to achieve power. The worst offsloughings of the planet are the ingredients of sovereignty. Every government is a parliament of whores.

The trouble is, in a democracy the whores are us.

Now we have C-SPAN, and in theory we could all be watching the legislative debates and voting on the laws directly. We’re kidding ourselves if we think most of our legislators understand in detail the bills they vote on — see Nancy Pelosi’s “We have to pass the bill so that you can find out what’s in it….” comment about the ACA. But even if we had the time to make ourselves expert and the bills weren’t abominations of complexity and special-interest obfuscation, literally no citizen could follow all issues and vote on all bills in an informed way. This cannot work unless the law is shrunk to a reasonable size, and it would do little to rein in the Administrative State (the agencies that now legislate by issuing ever-increasing volumes of regulations and enforce them nearly free of Congressional and court oversight), which is now beyond the control even of well-meaning executive appointees.

One problem is our House Representatives and how we elect them. Their districts now have an average of over 700,000 residents, and no one can campaign personally enough to give each citizen a direct sense of them. So TV and advertising became critical, which required big money, which requires a coalition of party and big donors to have a chance of unseating an incumbent — which is why so few are unseated. The Senate is even worse, with a big state like California having 30 million people to sway. Since the 17th Amendment (which changed election to the Senate from a state legislative vote to a popular vote), senators have ceased to represent their state’s government and now have a nearly independent power base, which makes a sitting senator even harder to dislodge.

In parliamentary-style systems, the legislature selects the executive from among the members — so parties form to support a large enough majority to select the executive and pass the legislation the government desires. The government often chooses when an election will be held, and the timetable is usually short. Since it’s the members of parliament that choose the executive, the question of who that will be is not directly on the ballot, so the party takes responsibility for choosing the member that will lead them most effectively. Until recently this did not make a large difference, but it has become more noticeable lately that the US government, with its more complex structure and greater division of powers, is less able to actively do anything — including reforming the administrative state, which has taken on a life of its own that threatens to strangle freedom and economic growth. In the US, a party that controls the presidency, the House, and the Senate still finds senators and House committee leaders that have veto power over changes, and the senate filibuster makes a law written to resist change, like the ACA, almost impossible to roll back when it proves problematic — a minority of senators or the president can block repeal. If the election of 2010 had taken place in a parliamentary system, the Republicans would have taken control of the executive branch and been able to repeal the ACA before major damage had been done.

There have been proposals to return to a modified form of direct democracy which would have elements of representative government, notably “liquid democracy.” In my future-history Substrate Wars series, the student rebels who had invented quantum superweapons and forced the world’s governments to cede control of security to them discussed how they might implement liquid democracy:

“So to get back to the central discussion. Who makes the law for our judges and AIs? How do the people control their universal government, which might start with the people in this room, but grow to include ten billion people over a thousand planets?”

“What we have now seems to work well,” Prof. Wilson observed drily.

“Because,” Ben said, “we all agree on most things, and we want the same outcomes, and we’re too busy to worry about someone else’s job. But that won’t last, and we’ll have major disagreements, where one faction wants one thing while another thinks the opposite is better. And we need a way to efficiently decide such disputes. Back on Earth, democracies elected representatives who traveled to large halls to discuss and vote on laws. We will have the universal Net, which can guarantee who you are and what your authority is, and a way of including anyone interested in the debates on any law. You can participate and vote on the Net.”

“So we were talking about ‘liquid democracy’…” Justin said, raising his eyebrows.

“Liquid democracy, also called delegative democracy. This is the new type of democratic-republican system we are looking at. The basic idea is that every citizen has a vote on every law or issue, but for practical reasons they delegate their vote to a representative, who bundles together all the votes delegated to him or her and casts them as they think best. The key difference between this and republican systems we are used to is that there is no fixed term for a representative, and citizens can take their proxy back at any time to give to another representative, or to vote themselves directly. Thus ‘liquid’ — citizens can react to what their representative is doing, even down to revoking their proxy during a speech on the issue that sways them. Citizens who want to participate in every issue can; most people will give their proxy to a representative they trust and only occasionally consider switching. Participation in debate and the writing of legislation would have to be limited to a practical number of representatives who hold the most proxies, but a citizen would be free to watch the process and communicate ideas to their representative.

“Proxies can be limited or full. For example, I might delegate my vote on defense matters to Samantha, who is hard-headed enough to impress me as a wise choice for that, while giving my proxy for research funding to Steve, because he’ll always be better at that. There’s no pre-election period where a government can suck up to voters and spend money unwisely to get elected, then act as they wish for years after. The people can intervene quickly if they don’t like the way things are going.”

“Who chooses the executive, and what about those bureaucracies?” Prof. Wilson asked.

“The executive would be elected by the representatives, and have to work to keep their confidence, as in a Parliamentary system. We are intending the powers of the executive be limited this time — in the unlikely event of a war with an outside power, there would of course be emergency needs. But the huge bureaucracies for defense, agriculture, education, tax collection, and all that would all be unnecessary. A dispersed, connected, and footloose people with replicators won’t need assistance surviving, and no external enemies exist that we know of. The executive government may never need to be more than a few dozen people.”

No one has yet implemented a true liquid democracy for a real government. The Wikipedia entry on delegative democracy further describes the idea:

Crucial to the understanding of delegate democracy is the theory’s view of the meaning of “representative democracy.” Representative democracy is seen as a form of governance whereby a single winner is determined for a predefined jurisdiction, with a change of delegation only occurring after the preset term length (or in some instances by a forced recall election if popular support warrants it). The possibility usually exists within representation that the “recalled” candidate can win the subsequent electoral challenge.

This is contrasted with most forms of governance referred to as “delegative.” Delegates may not, but usually do, have specific limits on their ‘term’ as delegates, nor do they represent specific jurisdictions. Some key differences include:

• Optionality of term lengths.
• Possibility for direct participation.
• The delegate’s power is decided in some measure by the voluntary association of members rather than an electoral victory in a predefined jurisdiction. (See also: Single Transferable Vote.)
• Delegates remain re-callable at any time and in any proportion.
• Often, the voters have the authority to refuse observance of a policy by way of popular referendum overriding delegate decisions or through nonobservance from the concerned members. This is not usually the case in representative democracy.
• Possibility exists for differentiation between delegates in terms of what form of voting the member has delegated to them. For example: “you are my delegate on matters of national security and farm subsidies.”

Google has ongoing research into the topic, since their Hangouts have much of the technology needed to make this work — secure identity with encrypted communication and group meeting capabilities. Google did an experiment using as an example the critically important decision of what should be on the lunch menu. They have also issued a good video lecture on the concepts:



More interesting discussion of liquid democracy can be found in this Marginal Revolution post.

Here’s an open-source software project for implenting similar systems: LiquidFeedback. The German Pirate Party has been experimenting with the system to bring together its large membership to discuss and decide its policies, a form of direct feedback that has helped ithe party to grow rapidly to become an electoral force.

Here’s another discussion of the technologies needed to make this work safely in an environment of state-supported hackers: Liquid Democracy and Emerging Governance Models. At the very least, the identity and secure communications issues have to be solved, and a citizen’s view of their proxy status always available, yet secure from others. These are soluble problems, but not by the government programming mentality that brought us current voting machines.

One day we may be able to both vote on and help write legislation in areas we are expert in, while ceding most decisions to trusted representatives whose proxy to vote on our behalf is revocable at any time. No more gigantic omnibus spending bills that ensure spending never gets cut. No more election campaigns, lowest-common-denominator party hacks, or trickery designed to sway your vote past that one golden moment when you could have said no….

And that still does not solve the issue of who selects the judges who might determine when a new law infringes basic constitutional rights. The Supreme Courts which have deferred to Congress and agency regulation, rarely turning back the overreaches that have become increasingly common (see again the ACA!) are a big part of today’s problem with expanding government.


Death by HR: How Affirmative Action Cripples Organizations

[Death by HR: How Affirmative Action Cripples Organizations,  available now in Kindle and trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. 

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat… It is time to turn the tide against this madness, and Death by HR is an important research tool… All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.

 


For more reading goodness:

Death by HR: Biased HR Degree Programs Create Biased HR Bureaucracies
Death by HR: Pink Collar Ghettos, Publishing and HR
Death by HR: Who Staffs HR Departments? Mostly Women…
Death by HR: The Great Enrichment to the Great Slackening
Death by HR: Good-Enough Cogs vs Best Employees
Death by HR: EEOC Incompetence and the Coming Idiocracy
The Justice is Too Damn High! – Gawker, the High Cost of Litigation, and the Weapon Shops of Isher
Regulation Strangling Innovation: Planes, Trains, and Hyperloop
Captain America and Progressive Infantilization
The Great Progressive Stagnation vs. Dynamism
FDA Wants More Lung Cancer
Corrupt Feedback Loops: Public Employee Unions
Unrealistic Expectations: Liberal Arts Woman and Amazon Men
Stable is Boring? “Psychology Today” Article on Bad Boyfriends
Gaming and Science Fiction: Social Justice Warriors Strike Again

Election 2016: Clinton vs Trump vs ?

I discussed the corrupt and incestuous media-government revolving door problem in Journalism or Government Propaganda? The Revolving Door.

With less than a week to go before the election, I’m watching lots of thoughtful friends struggling with the choices, and they are unhappy about having these candidates to choose from. It helps to remember that one person’s vote makes almost no difference, especially if you live in one of the populous states that is likely to vote overwhelmingly for one major party candidate. So do your best and don’t feel responsible if your chosen candidate wins and turns out to be a disaster — you’re not at fault.

I will make this meta-point: we’re heading for financial meltdown no matter who wins, since the demographic bomb of pensions and Medicare is about to go off and the central bankers are unable to safely end their ZIRP policies which must eventually end. It’s going to get ugly.

Similarly, the administrative state has become a parasite which can increase its share of national wealth indefinitely only when a robust economy supports it. Stagnation from ever-increasing regulation means that tax rates or deficits must rise to continue the bureaucracy’s expansion, further impairing growth and leading to a death spiral. Hard work and deferred consumption to invest in the future are already punished, and that negative feedback will only increase.

Clinton would be a continuation of the special-interest looting of the middle class, with cable TV and media combines supporting her through propaganda-news. Trump disrupts that cozy machinery, and while he has no policy solutions for the collapse to come when ZIRP finally ends catastrophically, a President Trump won’t be defending the administrative state when the freed-up Congress and states rise up to reform and shrink it. Clinton would continue the flogging until morale improves…

Smashing the Democratic Party’s corrupt feedback loop supported by public employee unions and government-funded academics will give other interests a chance to be heard. That is one of the better arguments for what would otherwise be an irresponsible decision to vote for Trump.

Peter Thiel had this to say:

THANK YOU VERY MUCH FOR HAVING ME HERE.

EVERYONE KNOWS WE HAVE BEEN LIVING THROUGH A CRAZY ELECTION YEAR. REAL EVENTS SEEM LIKE THE REHEARSALS FOR SATURDAY NIGHT LIVE.

ONLY AN OUTBREAK OF INSANITY WOULD SEEM TO ACCOUNT FOR THE UNPRECEDENTED FACT THAT THIS YEAR, A POLITICAL OUTSIDER MANAGED TO WIN A MAJOR PARTY NOMINATION.

TO THE PEOPLE WHO ARE USED TO INFLUENCING OUR CHOICES, THE WEALTHY PEOPLE WHO GIVE MONEY AND THE COMMENTATORS WHO GIVE REASONS WHY, IT ALL SEEMS LIKE A BAD DREAM.

DONORS DON’T WANT TO FIND OUT WHY WE GOT HERE, THEY JUST WANT TO MOVE ON. COME NOVEMBER 9, THEY HOPE EVERYONE ELSE WILL GO BACK TO BUSINESS AS USUAL. BUT IT IS THIS HEEDLESSNESS: THE TEMPTATION TO IGNORE DIFFICULT REALITIES INDULGED IN BY OUR CITIZENS THAT GOT US WHERE WE ARE TODAY.

A LOT OF SUCCESSFUL PEOPLE ARE TOO PROUD TO ADMIT IT SINCE IT SEEMS TO PUT THEIR SUCCESS IN QUESTION. BUT THE TRUTH IS, NO MATTER HOW CRAZY THIS ELECTION SEEMS, IT IS LESS CRAZY THAN THE CONDITION OF OUR COUNTRY. JUST LOOK AT THE GENERATION THAT SUPPLIES MOST OF OUR LEADERS. THE BABY BOOMERS. THEY ARE ENTERING RETIREMENT IN A STATE OF ACTUARIAL BANKRUPTCY. 54% OF THOSE OVER THE AGE OF 55 HAVE LESS THAN ONE YEARS WORTH OF SAVINGS TO THEIR NAME.

THAT IS A PROBLEM, ESPECIALLY WHEN THIS IS THE ONLY COUNTRY WHERE YOU HAVE TO PAY UP TO 10 TIMES AS MUCH FOR SIMPLE MEDICINES AS YOU WOULD PAY ANYWHERE ELSE. AMERICA’S OVERPRICED HEALTH CARE SYSTEM MIGHT HELP SUBSIDIZE THE REST OF THE WORLD, BUT THAT DOES NOT HELP AMERICANS WHO CANNOT AFFORD IT AND THEY HAVE STARTED TO NOTICE.

OUR YOUNGEST CITIZENS MAY NOT HAVE MEDICAL BILLS, BUT THEIR COLLEGE TUITION KEEPS ON INCREASING FASTER THAN THE RATE OF INFLATION, ADDING MORE EVERY YEAR TO OUR $1.3 TRILLION MOUNTAIN OF STUDENT DEBT. AMERICA HAS BECOME THE ONLY COUNTRY WHERE STUDENTS TAKE ON LOANS THEY CAN NEVER ESCAPE, NOT EVEN BY DECLARING BANKRUPTCY.

STUCK IN THIS BROKEN SYSTEM, MILLENNIALS ARE THE FIRST GENERATION THAT EXPECT THEIR OWN LIVES TO BE WORSE THAN THE LIVES OF THEIR PARENTS. WHILE AMERICAN FAMILY EXPENSES HAVE BEEN INCREASING RELENTLESSLY, THEIR INCOMES HAVE BEEN STAGNANT. IN REAL DOLLARS, IMMEDIATE HOUSEHOLD MAKES LESS MONEY TODAY THAT MADE 17 YEARS AGO. NEARLY HALF OF AMERICANS WOULD NOT BE ABLE TO COME UP WITH $400 IF THEY NEEDED IT FOR AN EMERGENCY.

YET, WHILE HOUSEHOLDS STRUGGLED TO KEEP UP WITH THE CHALLENGES OF EVERYDAY LIFE, THE GOVERNMENT IS WASTING TRILLIONS OF DOLLARS ON TAXPAYER MONEY ON FARAWAY WARS. RIGHT NOW, WE’RE FIGHTING FIVE OF THEM. IN IRAQ, SYRIA, LIBYA, AND SOMALIA.

IN THE WEALTHY SUBURBS OF WASHINGTON DC, PEOPLE ARE DOING JUST FINE. WHERE I WORK IN SILICON VALLEY, PEOPLE ARE DOING JUST GREAT. BUT MOST AMERICANS DON’T LIVE BY THE BELTWAY OR THE SAN FRANCISCO BAY. MOST AMERICANS HAVE NOT BEEN PART OF THAT PERSPECTIVE. IT SHOULDN’T BE SURPRISING TO SEE PEOPLE VOTING FOR BERNIE SANDERS OR DONALD TRUMP, WHO IS THE ONLY OUTSIDER (VERY FEW PEOPLE WHO VOTE FOR PRESIDENT HAVE EVER THOUGHT OF DOING SOMETHING SO EXTREME AS RUNNING FOR PRESIDENT. THE PEOPLE WHO RUN ARE OFTEN POLARIZING).

THIS ELECTION YEAR, BOTH MAJOR CANDIDATES ARE IMPERFECT PEOPLE TO SAY THE LEAST. I DON’T AGREE WITH EVERYTHING DONALD TRUMP HAS SAID AND DONE, AND I DON’T THINK THE MILLIONS OF OTHER PEOPLE VOTING FOR HIM DO EITHER. NOBODY THINKS HIS COMMENTS ABOUT WOMEN WERE ACCEPTABLE. I AGREE, THEY WERE CLEARLY OFFENSIVE AND INAPPROPRIATE. BUT I DON’T THINK THE VOTERS PULL THE LEVER TO ENDORSE A CANDIDATE’S FLAWS.

IT IS NOT A LACK OF JUDGMENT THAT LEADS AMERICANS TO VOTE FOR TRUMP, WE ARE VOTING FOR TRUMP BECAUSE WE JUDGE THE LEADERSHIP OF OUR COUNTRY TO HAVE FAILED.

THIS JUDGMENT HAS BEEN HARD TO ACCEPT FOR SOME OF THE COUNTRIES MOST FORTUNATE, SOCIALLY PROMINENT PEOPLE. IT CERTAINLY HAS BEEN HARD TO ACCEPT FOR SILICON VALLEY, WHERE MANY PEOPLE HAVE LEARNED TO KEEP QUIET IF THEY DISSENT FROM THE COASTAL BUBBLE. LOUDER VOICES HAVE SENT A MESSAGE THAT THEY DO NOT INTEND TO TOLERATE THE VIEWS OF ONE HALF OF THE COUNTRY.

THIS INTOLERANCE HAS TAKEN ON SOME BIZARRE FORMS. THE ADVOCATE, A MAGAZINE WHICH ONCE PRAISED ME AS A GAY INNOVATOR, EVEN PUBLISHED AN ARTICLE SAYING THAT AS OF NOW I AM, AND I QUOTE “NOT A GAY MAN” BECAUSE I DON’T AGREE WITH THEIR POLITICS. THE LIE IN THE BUZZWORD OF DIVERSITY COULD NOT BE MADE MORE CLEAR. IF YOU DON’T CONFORM, THEN YOU DON’T COUNT AS DIVERSE, NO MATTER WHAT YOUR PERSONAL BACKGROUND.

FACED WITH SUCH CONTEMPT, WHY DO VOTERS STILL SUPPORT DONALD TRUMP? EVEN IF THEY THINK THE AMERICAN SITUATION IS SERIOUS, WHY DO THEY THINK TRUMP OF ALL PEOPLE CAN MAKE IT BETTER?

I THINK IT IS BECAUSE OF THE BIG THINGS THAT TRUMP GETS RIGHT. FOR EXAMPLE, FREE TRADE HAS NOT WORKED OUT WELL FOR ALL OF AMERICA. IT HELPS TRUMP THAT THE OTHER SIDE JUST DOES NOT GET IT. ALL OF OUR ELITES TREAT FREE TRADE AND EXPLAIN THAT CHEAP IMPORTS MAKE EVERYONE A WINNER ACCORDING TO ECONOMIC THEORY. BUT IN ACTUAL PRACTICE, WE’VE LOST TENS OF THOUSANDS OF FACTORIES AND MILLIONS OF DOLLARS TO FOREIGN TRADE. HEARTLAND HAS BEEN DEVASTATED. MAYBE ELITES REALLY BELIEVE NO ONE LOSES OR MAYBE THEY DON’T WORRY ABOUT IT TOO MUCH BECAUSE THEY THINK THEY ARE AMONG THE WINNERS….

TRUMP VOTERS ARE ALSO TIRED OF WAR. WE HAVE BEEN AT WAR FOR 15 YEARS AND WE HAVE SPENT MORE THAN $4.6 TRILLION. MORE THAN 2 MILLION PEOPLE HAVE LOST THEIR LIVES AND MORE THAN 5000 AMERICAN SOLDIERS HAVE BEEN KILLED. BUT WE HAVE NOT ONE. THE BUSH ADMINISTRATION PROMISED $50 BILLION COULD BRING DEMOCRACY TO IRAQ. INSTEAD, WE SQUANDERED 40 TIMES AS MUCH TO BRING ABOUT CHAOS. EVEN AFTER THESE BIPARTISAN FAILURES, THE DEMOCRATIC PARTY IS MORE HAWKISH TODAY THAN AT ANY TIME SINCE IT BEGAN THE WAR IN VIETNAM. HARKING BACK TO THE NO-FLY ZONE BILL CLINTON ENFORCED OVER IRAQ BEFORE BUSH COSTS FAILED WAR, NOW HILLARY CLINTON HAS CALLED FOR A NO-FLY ZONE OVER SYRIA. INCREDIBLY, THAT WOULD BE A MISTAKE EVEN MORE RECKLESS THAN INVADING IRAQ. SINCE MOST OF THE PLANES FLYING OVER SYRIA ARE RUSSIAN PLANES, CLINTON’S PROPOSED COURSE OF ACTION WOULD INVOLVE US IN A MESSY CIVIL WAR — IT WOULD RISK A DIRECT NUCLEAR CONFLICT.

WHAT EXPLAINS THIS EAGERNESS TO ESCALATE A DANGEROUS SITUATION? HOW COULD HILLARY CLINTON BE SO WILDLY OVEROPTIMISTIC ABOUT THE OUTCOME OF WAR?

I WOULD SUGGEST IT COMES FROM A LOT OF PRACTICE. FOR A LONG TIME, OUR ELITES HAVE BEEN IN THE POWER A LONG TIME, OUR ELITES HAVE BEEN IN THE HABIT OF DENYING DIFFICULT REALITIES. THAT IS HOW BUBBLES FORM. WHEREVER THERE’S A HARD PROBLEM BUT PEOPLE WANT TO BELIEVE IN AN EASY SOLUTION, THEY WILL BE TEMPTED TO DENY REALITY AND INFLATE A BUBBLE. SOMETHING ABOUT THE EXPERIENCE OF THE BABY BOOMERS, WHOSE LIVES HAVE BEEN SO MUCH EASIER THAN THEIR PARENTS OR THEIR CHILDREN HAS LED THEM TO BUY INTO BUBBLES AGAIN AND AGAIN. THE TRADE BUBBLE SAYS EVERYONE IS A WINNER. THE WAR BUBBLE SAYS VICTORY IS JUST AROUND THE CORNER, BUT THESE OVEROPTIMISTIC STORIES SIMPLY HAVE NOT BEEN TRUE AND VOTERS ARE TIRED OF BEING LIED TO.

IT WAS BOTH INSANE AND SOMEHOW INEVITABLE THAT D.C. INSIDERS EXPECTED THIS ELECTION TO BE A RERUN BETWEEN THE TWO POLITICAL DYNASTIES WHO LET US THROUGH THE TWO MOST GIGANTIC FINANCIAL BUBBLES OF OUR TIME. PRESIDENT GEORGE W. BUSH PRESIDED OVER THE INFLATION OF THE HOUSING BUBBLE SO BIG THAT IT’S COLLAPSE IS STILL CAUSING ECONOMIC STAGNATION TODAY. BUT WHAT IS STRANGELY FORGOTTEN IS THAT THE LAST DECADE HOUSING BUBBLE WAS JUST AN ATTEMPT TO MAKE UP FOR THE GAINS THAT HAVE BEEN LOST THE DECADE BEFORE THAT. IN THE 1990’S, PRESIDENT BILL CLINTON PRESIDED OVER AN ENORMOUS STOCK MARKET BUBBLE AND DEVASTATING CRASH IN 2000 JUST AS HIS SECOND TERM WAS COMING TO AN END. THAT IS HOW LONG THE SAME PEOPLE HAVE BEEN PURSUING THE SAME DISASTROUS POLICIES.

NOW THAT SOMEONE DIFFERENT IS IN THE RUNNING, SOMEONE WHO REJECTS THE STORIES THAT TELL US EVERYTHING IS FINE, HIS LARGER-THAN-LIFE PERSONA ATTRACTS A LOT OF ATTENTION. NOBODY WOULD SUGGEST DONALD TRUMP IS A HUMBLE MAN. BUT THE BIG THINGS HE IS RIGHT ABOUT AMOUNT TO A MUCH-NEEDED DOSE OF HUMILITY. HE HAS QUESTIONED THE CORE CONCEPT OF AMERICAN EXCEPTIONALISM.

HE DOESN’T THINK THE FORCE OF OPTIMISM ALONE CAN CHANGE REALITY WITHOUT HARD WORK. JUST AS MUCH AS IS IS ABOUT MAKING AMERICA GREAT, TRUMP’S AGENDA IS ABOUT MAKING AMERICA A NORMAL COUNTRY, A NORMAL COUNTRY DOES NOT HAVE A HALF TRILLION DOLLAR TRADE DEFICIT. A NORMAL COUNTRY DOES NOT FIGHT FIVE SIMULTANEOUS UNDECLARED WARS.

IN A NORMAL COUNTRY, THE GOVERNMENT ACTUALLY DOES ITS JOB. TODAY, IT IS IMPORTANT TO RECOGNIZE THE GOVERNMENT HAS A JOB TO DO. VOTERS ARE TIRED OF HEARING CONSERVATIVE POLITICIANS SAYING GOVERNMENT NEVER WORKS. THEY KNOW GOVERNMENT WAS NOT ALWAYS THIS BROKEN. THE MANHATTAN PROJECT, THE INTERSTATE HIGHWAY SYSTEM, THE APOLLO PROGRAM, WHATEVER YOU THINK OF THESE VENTURES, YOU CANNOT DOUBT THE COMPETENCE OF THE GOVERNMENT THAT GOT THEM DONE, BUT WE HAVE FALLEN VERY FAR FROM THAT STANDARD. WE CANNOT LET FREE-MARKET IDEOLOGY SERVE AS AN EXCUSE FOR DECLINE.

NO MATTER WHAT HAPPENS IN THIS ELECTION, WHAT TRUMP REPRESENTS IS NOT CRAZY AND IT’S NOT GOING AWAY. HE POINTS TOWARD A NEW REPUBLICAN PARTY BEYOND THE DOGMAS OF REAGANISM. HE POINTS BEYOND THE REMAKING OF ONE PARTY TO A NEW AMERICAN POLITICS THAT OVERCOMES DENIAL, REJECTS BUBBLE THINKING AND RECKONS WITH REALITY. WHEN THE DISTRACTING SPECTACLES OF THIS ELECTION SEASON ARE OVER AND THE HISTORY OF OUR TIME IS WRITTEN, THE ONLY IMPORTANT QUESTION WILL BE WHETHER OR NOT THAT NEW POLITICS CAME TOO LATE. THANK YOU.

(Transcript courtesy Zerohedge.) As one commenter said, it’s a shame it’s not Peter Thiel running for the office.

So there are reasonable people supporting Trump, not because of his repellent behaviors and supporters, but in spite of them — because it may be the only chance to limit the power of the Democratic-bureaucratic alliance for another long four years.

Good luck, everyone!

 


Death by HR: How Affirmative Action Cripples OrganizationsDeath by HR: How Affirmative Action Cripples Organizations

[From Death by HR: How Affirmative Action Cripples Organizations,  available now in Kindle and trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. 

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat… It is time to turn the tide against this madness, and Death by HR is an important research tool… All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.

 


For more reading goodness:

Death by HR: Biased HR Degree Programs Create Biased HR Bureaucracies
Death by HR: Pink Collar Ghettos, Publishing and HR
Death by HR: Who Staffs HR Departments? Mostly Women…
Death by HR: The Great Enrichment to the Great Slackening
Death by HR: Good-Enough Cogs vs Best Employees
Death by HR: EEOC Incompetence and the Coming Idiocracy
The Justice is Too Damn High! – Gawker, the High Cost of Litigation, and the Weapon Shops of Isher
Regulation Strangling Innovation: Planes, Trains, and Hyperloop
Captain America and Progressive Infantilization
The Great Progressive Stagnation vs. Dynamism
FDA Wants More Lung Cancer
Corrupt Feedback Loops: Public Employee Unions
Unrealistic Expectations: Liberal Arts Woman and Amazon Men
Stable is Boring? “Psychology Today” Article on Bad Boyfriends
Gaming and Science Fiction: Social Justice Warriors Strike Again

Journalism or Government Propaganda? The Revolving Door

Fourth Estate? Or wholly-owned subsidiary of the Entertainment-Government Complex?

Remember the public image of crusading journalists uncovering malfeasance and bringing down the mighty? Our narratives about reporters include Woodward and Bernstein uncovering the Watergate scandal and helping to bring down Nixon. Why do today’s journalists shy away from investigating anything that might reflect badly on the Party of Government?

Journalism is a declining occupational category, with newspapers and magazines gutted by loss of advertising revenue and low-paid or unpaid scribblers on the Internet undercutting the market for news and opinion writing. Here’s the BLS statistics on job prospects for the profession:

Quick Facts: Reporters, Correspondents, and Broadcast News Analysts
2015 Median Pay $37,720 per year
$18.13 per hour
Typical Entry-Level Education Bachelor’s degree
Work Experience in a Related Occupation None
On-the-job Training None
Number of Jobs, 2014 54,400
Job Outlook, 2014-24 -9% (Decline)
Employment Change, 2014-24 -4,800

$37K is a poverty-level salary in Manhattan or DC. With employment shrinking, many new graduates in media and journalism programs are forced to work at Starbucks or take those low-paid Internet clickbait writing jobs.

As a result, journalism can become just a springboard to work in government PR, which in turn gives entry to high-paying lobbying or TV personality positions. Occupations that become very low-paying tend to be of interest only to those who already have wealthy family backing and can afford to give up current pay for future status and influence — as seen in publishing. And the revolving door allows a few lucky partisan journalists to move into government PR, then cash in afterwards. The recent trend to marriage links and occupational crossover between Silicon Valley, East Coast media, and the White House staff is a warning sign of the merging of executive branch, administrative state, and media interests, weakening media’s ability to report truthfully on issues.

One recent example:

The Obamaworld-social media industry mind meld continues: White House strategic communications adviser Rachel Racusen is leaving to join Snapchat as director of communications, based in New York City.

Racusen, who has done two separate stints in the White House communications office (working at MSNBC in between), finished up work at 1600 Pennsylvania Ave. on Tuesday and will start her new job Sept. 19. Over the past year, Racusen has focused on projects aimed at capturing the president’s legacy, from the economy to the environment. Before first joining the White House staff in May 2013, Racusen served as director of public affairs for the Federal Emergency Management Agency for two years and as deputy national communications director for Obama’s reelection campaign….

Racusen joins a long line of Obama veterans who have found jobs in the tech sector after serving in the government, from former press secretary Jay Carney (Amazon) to former senior adviser Dan Pfeiffer (GoFundMe). And Snapchat is a popular White House presence already: Michelle Obama joined the platform in June, about a month after she and the president welcomed Snapchat chief executive Evan Spiegal and with his now-fiancee, Miranda Kerr, to the Nordic state dinner.

The relationships and mixing between government and media are getting too tangled to follow:

  • ABC News President Ben Sherwood, who is the brother of Elizabeth Sherwood-Randall, a top national-security adviser to President Obama.
  • His counterpart at CBS, news division president David Rhodes, is the brother of Benjamin Rhodes, a key foreign-policy specialist.
  • CNN’s deputy Washington bureau chief, Virginia Moseley, is married to Tom Nides, who until earlier this year was deputy secretary of state under Hillary Rodham Clinton.
  • White House press secretary Jay Carney’s wife is Claire Shipman, a veteran reporter for ABC.
  • NPR’s White House correspondent, Ari Shapiro, is married to a lawyer, Michael Gottlieb, who joined the White House counsel’s office in April.
  • The Post‘s Justice Department reporter, Sari Horwitz, is married to William B. Schultz, the general counsel of the Department of Human Services.
  • [VP] [The President’s current Senior Advisor for Strategic Communications and] Biden’s [former] communications director, Shailagh Murray (a former Post congressional reporter), is married to Neil King, one of the Wall Street Journal‘s top political reporters.

George Stephanopoulos blazed the trail from campaign staffer for Mike Dukakis to White House press secretary to high-paid anchor on ABC. Lesser staffers have to settle for high-paid positions at Google and Facebook and the like, where their connections help bond the Party of Government and Silicon Valley social media closer — the big Internet powers know they could be hurt by regulation, and promoting progressive ideas and repressing contrary points of view can keep their businesses safe from the scrutiny of antitrust and regulatory agencies.

Sylvia Burwell is another Dukakis staffer who cashed in:

While still in college, she served as an intern for West Virginia Congressman Nick Rahall, as governor’s aide to Massachusetts Governor Michael Dukakis, and worked on the Dukakis/Bentsen campaign… She later worked on the Clinton/Gore campaign.

She was an Associate at McKinsey & Company from 1990 through 1992. On the night in July of 1993 when Deputy White House counsel Vince Foster committed suicide in a Virginia park, Burwell searched Foster’s office garbage for documents wanted by the Clintons before the police investigation commenced. Burwell was questioned during the Whitewater investigations regarding the purpose of her search of Foster’s garbage and the fate of the documents she discovered. She served as Staff Director for the National Economic Council from 1993 to 1995. She was Chief of Staff to Treasury Secretary Robert Rubin from 1995 to 1997. Mathews served as Deputy Chief of Staff to President Bill Clinton from 1997 to 1998, along with future Center for American Progress founder John Podesta. In 1998, Bowles left and Podesta was elevated to chief of staff, and Burwell moved to the OMB to serve as Jack Lew’s deputy director from 1998 to 2001…

On March 3, 2013, President Obama nominated Burwell to head the White House Office of Management and Budget…. In October 2013, during the United States federal government shutdown of 2013, Burwell sent the email initiating the process that closed national parks, visitors’ centers and even the “panda-cam” at the National Zoo. “Agencies should now execute plans for an orderly shutdown due to the absence of appropriations,” Burwell wrote in a memo to heads of executive departments and agencies. She ordered the action because there was no “clear indication” that Congress would strike an agreement on a continuing resolution before the end of the day Tuesday. “We urge Congress to act quickly to pass a Continuing Resolution to provide a short-term bridge that ensures sufficient time to pass a budget for the remainder of the fiscal year, and to restore the operation of critical public services and programs that will be impacted by a lapse in appropriations,” Burwell said in a statement.

Burwell was confirmed as Department of HHS secretary on June 5, 2014.

And today CNN is running her opinion piece on Obamacare’s success and bright future without explicitly noting she’s in charge of the agency running Obamacare.

CNN is owned by Time-Warner, a communications company extensively regulated by the FCC, an obsolete but still powerful agency whose commissioners are appointed by the President and control broadcast and cable TV. ABC is owned by Disney, which also owns ESPN and also depends on cable monopolies for its outsized profits. MSNBC and NBC are notoriously close to the current administration, and they are owned by Comcast, who… are you seeing the pattern?

Marilyn Tavenner started a nurse, then rose to chief executive of a hospital owned by HCA (Hospital Corporation of America, profit-making megachain), rising in the corporation before resigning to serve as Secretary of Health and Human Resources in the Cabinet of Virginia Governor Tim Kaine [now Hillary Clinton’s VP candidate.] She was in charge of the Centers for Medicare and Medicaid Services, an agency of the Department of Health and Human Services which was responsible for the horrendously botched rollout of Obamacare and its Healthcare.Gov website.

She resigned January of 2015, and by July had been appointed President and CEO of AHIP, the health insurance industry organization and lobbying group.

These incestuous and corrupt linkages mean government regulatory authority is gradually undermining journalist’s independence, nurturing a shared worldview — a hothouse bubble — making nonpartisan reporting difficult. Most journalists are progressive-leaning Democrats, though some are still trying hard to be evenhanded. But the bubble in which they live and hobnob socially with White House staffers and other apparatchiks and lobbyists in DC and NYC makes it very hard for them to see their own biases and report fairly, when they know breaking news “difficult” for the socially-approved candidate will hurt them socially or result in a decline in their access to government sources. It’s easy to make it as a reporter or opinion writer by rewriting press releases and forwarding talking points given to you by friendly insiders — and time-consuming and often fruitless to follow independent leads to do investigative reporting revealing government malfeasance. It makes people you know and like look bad. It might help a candidate you can’t stand! …

The uniquely awful choice between Clinton and Trump is driving journalists to new lows in partisan reporting. The New York Times discussed the problem:

If you’re a working journalist and you believe that Donald J. Trump is a demagogue playing to the nation’s worst racist and nationalistic tendencies, that he cozies up to anti-American dictators and that he would be dangerous with control of the United States nuclear codes, how the heck are you supposed to cover him?

Because if you believe all of those things, you have to throw out the textbook American journalism has been using for the better part of the past half-century, if not longer, and approach it in a way you’ve never approached anything in your career. If you view a Trump presidency as something that’s potentially dangerous, then your reporting is going to reflect that. You would move closer than you’ve ever been to being oppositional. That’s uncomfortable and uncharted territory for every mainstream, nonopinion journalist I’ve ever known, and by normal standards, untenable.

But the question that everyone is grappling with is: Do normal standards apply? And if they don’t, what should take their place?

Covering Mr. Trump as an abnormal and potentially dangerous candidate is more than just a shock to the journalistic system. It threatens to throw the advantage to his news conference-averse opponent, Hillary Clinton, who should draw plenty more tough-minded coverage herself. She proved that again last week with her assertion on “Fox News Sunday” that James Comey, director of the Federal Bureau of Investigation, had declared her to be truthful in her answers about her decision to use a private email server for official State Department business — a grossly misleading interpretation of an F.B.I. report that pointed up various falsehoods in her public explanations.

And, most broadly, it upsets balance, that idealistic form of journalism with a capital “J” we’ve been trained to always strive for.

This week’s episode of Hillary’s ongoing medical issues had her exiting the 9-11 memorial ceremony early. Captured only by amateur video because the press corps was prevented from following her, the talking points issued by her people went from allergies, to fainting in the (80-degree) heat, then finally (after the video became public) to the claim that she had been diagnosed days earlier with pneumonia, but kept on with her relentless schedule against doctor’s orders until she was overcome.

Partisan apologists immediately sent up flak memes to cover up the revelation that all previous talking points had been lies:

A 68-year-old woman, with pneumonia, still kept a schedule that most of us wouldn’t make it through, flying here and there, holding multiple events and briefings a day.

That’s not weak. That’s actually strong and tough as hell.

One wag responded:

If you spin a story faster than lightspeed, does it go back in time and rescue the candidate from that deep trench she fell into?

The New Yorker rushed out a cartoon lampooning the coverup:

Hillary Clinton's coverup -- Schwartz, The New Yorker

Hillary Clinton’s coverup — Schwartz, The New Yorker

Others pointed out how much US journalism is starting to look like banana republic propaganda:

Our Leader is Strong Like Ox! -- Anarchyball

Our Leader is Strong Like Ox! — Anarchyball

Ooh, harsh. But fair. We look at people like the Kirchners in Argentina and wonder how they can get voted in despite their obvious corruption. Today many stories in US politics are broken by the British press, who aren’t as constrained by the access favor-trading that has “respectable” news organizations self-censoring and identifying with the power structure they are supposedly a check on.

What’s next? If Trump wins, will Milo Yiannopoulos be appointed White House press secretary? I have to admit he’d be highly entertaining. Would he then go on to anchor the new Trump News Network’s Sunday politics show?

 

If Trump wins, would it be wrong for him to work to dismantle the protected oligopoly cable networks now have, lowering prices for content and getting his own network the advantages Time-Warner, Disney, and Comcast now enjoy? What will all the partisan journalists do when their platforms begin to shrink?

The risks of a Trump presidency are enormous, but Hillary Clinton’s claim that half of his supporters are “deplorables,” meaning people who are “racist, sexist, homophobic, xenophobic, Islamaphobic, you name it,” sounds very much like the character assassination progressives apply to anyone who disagrees with them about — anything. Internet memes immediately began to appear mocking her comment:

Les Deplorables -- via Christopher Buckley, source unknown

Les Deplorables — via Christopher Buckley, source unknown

What is the solution to the revolving door of influence and media corruption? One proposal is Glenn Reynolds’ “Revolving Door Tax.” It would also be a good idea for Congress to explicitly prohibit use of tax dollars to do executive branch PR — vast sums are spent to generate pro-government propaganda, contributing to spread of biased information. Progressive claims that such expenditures are necessary to prepare the population to accept programs like the ACA show exactly why they shouldn’t be allowed. The corrupt feedback loop allowing voters to be brainwashed to accept political-class programming needs to be stopped. The regulation of cable TV and high-speed Internet that prevents competition for their local monopolies also needs to end; the extra $50-100 per month paid by hundreds of millions of households is being plowed into acquisition of content providers, and the tiny fraction of their monopoly profits these companies plow back into supporting politicians and PR people is damaging our politics. The similar corrupt feedback loops in banking and finance, healthcare and insurance, energy policy, education — really everywhere government controls a major economic sector — are subjects of other posts.

 


Death by HR: How Affirmative Action Cripples OrganizationsDeath by HR: How Affirmative Action Cripples Organizations

[From Death by HR: How Affirmative Action Cripples Organizations,  available now in Kindle and trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. Here’s the condensed version; view the entire review here.

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat… It is time to turn the tide against this madness, and Death by HR is an important research tool… All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.

 


For more reading goodness:

Death by HR: Biased HR Degree Programs Create Biased HR Bureaucracies
Death by HR: Pink Collar Ghettos, Publishing and HR
Death by HR: Who Staffs HR Departments? Mostly Women…
Death by HR: The Great Enrichment to the Great Slackening
Death by HR: Good-Enough Cogs vs Best Employees
Death by HR: EEOC Incompetence and the Coming Idiocracy
The Justice is Too Damn High! – Gawker, the High Cost of Litigation, and the Weapon Shops of Isher
Regulation Strangling Innovation: Planes, Trains, and Hyperloop
Captain America and Progressive Infantilization
The Great Progressive Stagnation vs. Dynamism
FDA Wants More Lung Cancer
Corrupt Feedback Loops: Public Employee Unions
Unrealistic Expectations: Liberal Arts Woman and Amazon Men
Stable is Boring? “Psychology Today” Article on Bad Boyfriends
Gaming and Science Fiction: Social Justice Warriors Strike Again

Bootleggers and Baptists

Prohibition: Sheriff Dumps Bootleg Booze

Prohibition: Sheriff Dumps Bootleg Booze

When a campaign is underway to regulate a business or a product, it’s usually easy to identify two groups promoting increased regulation: “Bootleggers” (people who will benefit because the regulation hobbles a competitor) and “Baptists” (people who sincerely believe the new regulation will help others.) The Baptists naively think goodness will come from outlawing bad things, while the bootleggers are aware of unintended consequences and second- and third-order effects of the proposed regulation that will benefit them personally, but pretend to join the Baptists on a moral crusade. Marching together, they agitate for more laws and less freedom of choice.

“Bootleggers and Baptists” is a catch-phrase invented by regulatory economist Bruce Yandle for the observation that regulations are supported both by groups that want the ostensible purpose of the regulation, and by groups that profit from undermining that purpose.

For much of the 20th century, Baptists and other evangelical Christians have been prominent in political activism for Prohibition and Sunday closing laws restricting the sale of alcohol. Bootleggers sold alcohol illegally, and got more business if legal sales were restricted. “Such a coalition makes it easier for politicians to favor both groups. … [T]he Baptists lower the costs of favor-seeking for the bootleggers, because politicians can pose as being motivated purely by the public interest even while they promote the interests of well-funded businesses. … [Baptists] take the moral high ground, while the bootleggers persuade the politicians quietly, behind closed doors.

Strongly-motivated minority interest groups can move the political process toward satisfying their demands, as Prohibitionists did when they succeeded in getting the Eighteenth Amendment passed outlawing alcoholic beverages in the US, a ban which lasted from 1920 to 1933 before it was repealed by the Twenty-First Amendment. It took a decade of rising organized crime and disrespect for the law to finally rouse the great middle of the electorate to demand repeal.

Similar battles still take place on smaller scales. In a recent example,

Arkansas liquor stores have allied with religious leaders to fight statewide legalization of alcohol sales. The stores in wet counties don’t want to lose customers. The churches don’t want to lose souls. Larry Page, a Southern Baptist pastor and director of the Arkansas Faith and Ethics Council, which traces its roots to the Anti-Saloon League of Arkansas in 1899, [also recalled]. . .when his group joined with feminists to oppose pornography and cooperated with Mississippi casinos to fight gambling in Arkansas.

The selfish motivations of the bootleggers hide behind the naive but high-minded feelings of the Baptists. How can a politician oppose Goodness in the form of legislated morality?

Here are some other examples of the phenomenon:

Universal pre-K: Who can be against the education of young children, especially those growing up in poor environments for early learning? Surely extending public school to even earlier years will help underprivileged children catch up! And parents can use even more public-funded daycare to ease their burden, right?

While it’s common to see articles and editorials accepting the positive benefits of pre-K programs without question, the evidence is thin and suggests that some children can benefit from very high-quality programs, but that such benefits disappear after a few years. The Head Start federal program targeting poor children has been expensive and disappointing, with recent studies demonstrating little permanent improvement in outcomes in the long term.

As often happens, proponents start a few pilot programs, recruit highly-motivated staff and parents, and find significant positive benefits. When expanded and managed via the standard education bureaucracy and with less-motivated, unionized staff, benefits to the children shrink or disappear completely, with some programs actually worse for children than being left in a standard private preschool or home setting.

A well-regarded and funded program in Tennessee was studied by a grant-funded group of social scientists and educators at Vanderbilt who had every reason to bias the study to favor the state’s pre-K program. The result? (Emphasis added):

By the end of kindergarten, the control children had caught up to the TN‐VPK children and there were no longer significant differences between them on any achievement measures. The same result was obtained at the end of first grade using both composite achievement measures. In second grade, however, the groups began to diverge, with the TN‐VPK children scoring lower than the control children on most of the measures. The differences were significant on both achievement composite measures and on the math subtests. … In terms of behavioral effects, in the spring the first grade teachers reversed the fall kindergarten teacher ratings. First grade teachers rated the TN‐VPK children as less well prepared for school, having poorer work skills in the classrooms, and feeling more negative about school. It is notable that these ratings preceded the downward achievement trend we found for VPK children in second and third grades. The second and third grade teachers rated the behaviors and feelings of children in the two groups as the same; there was a marginally significant effect for positive peer relations favoring the TN‐VPK children by third grade teachers.

The constant drumbeat of publicity promoting Universal pre-K is motivated by the desire of teacher and public employee unions to employ more staff who will provide more revenue and political power for them. They are the bootleggers in the coalition pushing for Universal pre-K at local and federal levels, and the disorganized voices of those who would be hurt by such programs — operators of private preschools, parents of children who want to choose which daycare they pay for or handle pre-K nurturing themselves — are rarely heard, while the propaganda from the government PR offices and unions is well-funded by tax dollars and compulsory union dues.

Free College For All: Bernie Sanders is currently promoting a plan for free tuition at public colleges and universities for everyone. “Education” (in the form of conventional regimented schooling) is a sacred cow, and the belief that everyone is better off being sent to college after high school has been promoted by politicians for years. We’ll cover the pernicious results of policies based on that belief later in the chapter on Higher Education, but we’ve already seen what happens when you make subsidized student loans available to everyone: you get millions of deeply-indebted former students, both those who failed out because they should never have been admitted in the first place and those who learned little of value to the job market. You also get a high rate of inflation in college costs, as these loans allowed colleges to expand and compete for students with less concern for costs or outcomes.

The Baptists in this case are all those well-meaning people who believe everyone should go to college and get a professional white-collar job. The bootleggers are all of those college administrators and employees who benefit from increased funding and enrollment, the prospective students who want to have a free ride, and the politicians who rely on the support of academics. The scribes and government workers who are products of academia themselves write all the narratives in our society, and blue-collar workers and nonacademics who would be taxed to pay for this freebie get no taxpayer funding to tell their own stories.

Let well-known philosopher of labor Mike Rowe explain this:

Consider the number of college graduates today, who can’t find work in their chosen field. Hundreds of thousands of highly educated twenty-somethings are either unemployed or getting paid a pittance to do something totally unrelated to the education they borrowed a fortune to acquire. Collectively, they hold 1.3 trillion dollars of debt, and no real training for the jobs that actually exist. Now, consider the country’s widening skills gap – hundreds of thousands of good jobs gone begging because no one wants to learn a useful trade. It’s madness. “College For All” might sound good on the campaign trail, but in real life, it’s a dangerous platitude that reinforces the ridiculous notion that college is for people who use their brains, and trade schools are for people who use their hands. As if the two cannot be combined.

Universal Healthcare: The Baptists here are well-meaning people who think everyone should get good healthcare, and because they have been told by propagandists that everyone in Europe and Canada has free, quality healthcare that costs their government far less, they can’t imagine why the US shouldn’t have it, too. Which ignores the major differences between such programs — only Canada has single-payer without a parallel private-pay healthcare system, and even that is changing, while the Canadian provinces vary in costs and coverages, as well as waiting periods for nonemergency care. Meanwhile, European countries have systems that vary from Britain’s NHS, a completely government-owned and run healthcare system with enough problems that its breakdowns are daily news fodder, to Swiss and French programs that are really public-private insurance plans with cheaper basic options. “Medicare-for-All” as proposed by US universal healthcare proponents would expand the Medicare system, which is already headed for financial disaster as the population ages, to cover everyone. It’s never acknowledged that rising costs will then require rationing and onerous cost controls that would make the US system start to resemble Britain’s NHS — cheaper but lower quality, with worse outcomes for cancer treatments and limited access to more advanced care.

Who are the bootleggers? The ACA co-opted the big health insurance and drug companies to guarantee them a captive market with higher revenues in return for turning the private insurance market into a kind of regulated utility that everyone would be forced to join, which allows regulations to essentially tax younger and healthier people to subsidize the costs of the older and sicker without regard to ability to pay. We now have lower-middle-class working families paying much more than they would in a free market so that wealthy people with pre-existing conditions can get insurance at subsidized rates. While many pre-existing conditions were unfortunate accidents, some were acquired because of poor life choices and self-indulgent health and dietary habits — so now the rich couch potato who drank and ate himself to diabetes and heart problems suffers no penalty, at least financially, since some group of healthy families is paying extra to subsidize his care.

Single-payer, Medicare-for-All is another step toward micromanagement of both citizen lifestyles and medical procedures. The politicians are dreaming of more dependent voters who will always support them, as in Britain, where voters are continually told they can have a “better” NHS by voting in the right people. The problems of the British NHS cannot be solved by a change in administrations because they are due to its structure as a socialized service, with unionized civil service-style employee protections and the accompanying limited accountability for poor service and failure. Once in place, such systems are very difficult to repeal, and their bureaucracies, like today’s federal HHS and Medicare bureaucracies, provide a good place for political supporters to collect a paycheck while serving as the party of government’s permanent supporting class.

Climate Change: The Baptists here are citizens who believe that not only is global warming a man-made phenomenon resulting from increases in greenhouse gases in the atmosphere (that much is probably true), but that its onset will be rapid and severe enough to justify virtually any costly program proposed to limit the threat (which appears untrue, or at least unproven, as the simplistic early climate models have failed to correctly predict the amount of actual warming.) What price would you pay to save the planet? Even questioning the cost of proposed programs is viewed as heresy by true believers.

The bootleggers are the rent-seeking part of the coalition to “do something,” which began when the danger was first popularized and resulted in large increases in research funding for the small number of climate scientists who specialized in climate change research. As momentum built and more governments funded research and activism in the field, whole labs and careers depended on finding the danger to be as large as possible, to justify ever more research funding. Stoking popular fear, politicians could appear to be protecting citizens by promising more and more measures to slow greenhouse gas emissions. It became clear, though, that vested interests would not allow the least-cost, most economically-sound means of reducing emissions: research on solar and nuclear power generation and low, rebated carbon taxes which would allow businesses and citizens to gradually reduce emissions over time without sacrificing current plants and arrangements.

What happened instead: complex emissions credit schemes which allowed politicians to favor some interest groups over others while raking in hidden taxes from consumers; mandates requiring utilities to pay much more to purchase ever-increasing percentages of “green” power, generated at high cost from subsidized windmills and solar power plants which proved to work poorly or have limited service lives; and command-and-control regulations that shut down existing plants and closed down coal mines.

Each of these schemes had bootleggers waiting to profit: politically-connected investors in solar power schemes like Solyndra (bankrupt in 2011, with $535 million in federally-guaranteed loans and $25 million in California tax credits lost) and the Ivanpah steam-solar project ($2.2 billion, obsolete and unable to generate its designed power since the day it opened.) Both Ivanpah and Solyndra were huge bets on the wrong technologies, with standard photovoltaic panels falling in price so much that these huge investments were rendered uncompetitive shortly after they were funded. Ivanpah received $1.6 billion in loan guarantees from federal taxpayer funds, covering investments by its owners, BrightSource Energy, NRG Energy, and Google. The company has delayed payment on its loans and in late 2014 requested an additional $539 million in funding via a federal tax credit program.

Spain’s Abengoa, a multinational alternative energy company, has filed for Chapter 11 protection in the US, and in March of 2016 filed for bankruptcy. The federal loan guarantees for $1.45 billion for the Solano solar plant in Arizona and the $1.2 billion for the Mojave solar project in California now appear to be US taxpayer losses. Again, enormous sums of taxpayer money built scaled-up projects with obsolete technology which could only produce power at many times the cost of natural gas plants.

In parts of Europe and the US, poor and middle-class ratepayers pay much more for electricity because of these state-required green energy programs, while many wealthy consumers avoid paying the inflated rates by installing subsidized solar panels.

Other bootleggers include the large number of government staff now employed to work on climate change issues and propaganda in governments around the world, with the many UN climate meetings in cities like Paris and Copenhagen serving as luxurious junkets for tens of thousands of functionaries.

Even businessmen in the petroleum industry will surreptitiously support green activist organizations they believe will harm competitive fuels more than theirs. Aubrey McClendon, who made and then lost a huge fortune pioneering the fracking production of natural gas in the US, “secretly gave $25 million to the Sierra Club for the Sierra Club’s ‘Beyond Coal’ campaign, for the obvious reason that it would benefit his natural gas company if coal were squeezed by new regulation.”:

But as the Sierra Club and other environmental groups have made clear, once they’re done killing coal they’re going after natural gas next. Did McClendon think they’d spare him? He was a perfect example of Churchill’s description of an appeaser as someone who feeds the crocodile hoping he’ll be eaten last. I lost all respect for McClendon when this news leaked out, and it was a great embarrassment to the Sierra Club as well. He was rent-seeking bootlegger. A lot of them died in high-speed crashes back during Prohibition, usually being chased by the law.

Internet Gambling Prohibitions: This is closer to the coalitions against alcohol, with many religious and social organizations concerned about gambling addiction (the Baptists) joining with casino magnates, Indian tribes, and state lotteries (the bootleggers) to try to outlaw a competitor — easy gambling on the Internet. In 2015, Sheldon Adelson, billionaire head of the Las Vegas Sands and numerous hi-revenue casinos worldwide, promoted a bill in Congress (The Restoration of America’s Wire Act, or RAWA) intended to prohibit Internet gambling at the federal level, superseding state authorizing laws. He hired a lobbying firm, Steptoe and Johnson, which was then also hired by fantasy sports companies — which would be exempt under the proposed Act. By outlawing some forms of online gambling but exempting others, the proposed law would preserve casino monopolies and take control away from states.

Tobacco: Vaping equipment, or e-cigs, provide the appearance of cigarettes and a dose of the nicotine smokers crave in a delivery format (evaporated carrier with nicotine and flavoring) that is much less harmful to smoker’s lungs. Many experts recommended smokers switch to e-cigs immediately, since harm to their health would be much reduced. But e-cigs threaten both the makers of the highly-regulated and taxed legacy cigarettes and the makers of smoking cessation products like nicotine gum and patches — often the same companies! So paid “medical authorities” and lobbyists began to work hard to promote the view that the new and untested e-cigs were just as hazardous — if not more hazardous, since their long-term effects were unknown! — than traditional cigarettes. Cato’s Regulation put out a good paper on the bootleggers-and-Baptists pattern in this new propaganda war:

Now consider the situation with electronic cigarettes (e-cigs) and their incumbent competitors: tobacco companies that produce and sell traditional cigarettes and drug companies that produce nicotine replacement therapies (NRTs). The U.S. cigarette market has been regulated, one way or another, since colonial times. Along the way, federal regulation—coupled most recently with the state attorneys general Master Settlement Agreement (MSA, about which we say more later)—effectively cartelized the industry, bringing increased profits to the industry and higher cigarette prices and reduced cigarette consumption throughout the nation. Falling cigarette consumption gladdened the hearts of health advocates, who fought for the elimination of tobacco products, while higher industry profits brought joy to tobacco company owners.

This happy Bootlegger/Baptist equilibrium is now threatened by the exploding sales of e-cigs, a new technology for delivering nicotine to all who want it without simultaneously bringing the harmful combustion-induced chemicals associated with burned tobacco. Today, there are many e-cig producers and numerous small shops selling e-cigs and customized nicotine-dispensing products. It is a rapidly evolving market that has been relatively open to new entrants and innovation in product design. Given the quick growth in e-cig use (much of which comes at the expense of cigarette sales), previous political deals that stabilized tobacco industry profits are at risk. The major tobacco companies are understandably not sitting idle. They, too, have entered the e-cig marketplace and are responding in other ways to the new competition.

The major pharmaceutical companies have not been idle either. The makers of smoking cessation products, including NRTs such as the nicotine patch and nicotine gum, are major players in the politics of tobacco and nicotine. The producers of traditional nicotine delivery devices and NRTs are at work trying to stop the disruptive e-cig producers. These Bootleggers are joined by health advocates (Baptists) who raise questions about unknown potentially harmful effects that may be associated with e-cig use. Both groups—cigarette and NRT producers on the one hand, and health advocates on the other—would like to stop new e-cig producers or severely crimp their ability to compete.

Lawfare between the tobacco industry and state attorneys general was settled in 1998 with the MSA (Master Settlement Agreement), which set the payments due to the states to compensate them for the additional Medicare and Medicaid costs states would bear because of tobacco products. The agreement was carefully designed to send money to the states while protecting the incumbent manufacturers from competition, allowing them to raise prices more than required to pay the fines.

Again from Cato’s paper:

The heart of the MSA was the promised payment of $206 billion by the four participating cigarette companies to the participating states. Those payments would be tax deductible and the costs would be paid by consumers in the form of higher cigarette prices. (Because cigarette consumption is highly price inelastic, the cost of the price increase was largely borne by consumers rather than producers.) The MSA presented state legislatures with a simple choice: either accept the MSA, in which case they would be able to spend their state’s share of the billions of dollars raised from smokers, or reject the proposed statute and their states’ smokers would still pay the higher prices necessary to fund the deal but they would lose their claim on the money. Not surprisingly, every state legislature took the money.

Responsibility for the payments was allocated among the cigarette companies in proportion to their current market share, thereby reducing the incentive for the participating cigarette companies to engage in price competition to increase their respective market shares. The structure of the MSA thus provided a powerful incentive for each company to be satisfied with the status quo.

The MSA also attempted to protect the major cigarette companies from new competition. At the time of the agreement, the four participating cigarette companies accounted for about 99 percent of domestic cigarette sales. Increasing cigarette prices to pay for the settlement risked a loss of market share to marginal competitors or new entrants. Therefore the MSA provided that for every percent of market share over 2 percent lost by a participating cigarette manufacturer, the manufacturer would be allowed to reduce its payments to the states by 3 percent, unless each participating state enacted a statute to prevent price competition from non-participating manufacturers (which each state did). The statutes require nonparticipating cigarette producers to make payments equal to or greater than what they would owe had they been participants in the agreement, to eliminate any cost advantage.

The MSA also included restrictions on cigarette marketing practices agreed to by the participating producers. The advertising limits were portrayed as a public health measure because they reduced advertising that could influence young adults and teens. The limits also reinforced the anticompetitive nature of the MSA by making it more costly for new brands or entrants to secure market share through promotional efforts.

The MSA’s cartel-reinforcing provisions sufficiently suppressed competition to enable cigarette companies to take advantage of the price inelasticity of cigarette demand and obtain record profits. This made it possible for the major cigarette manufacturers to increase prices by more than was necessary to make the mandated MSA payments.

Having made a deal to get big money for states and attorneys while protecting the companies from competition and raising prices more than enough to make the addicted smokers themselves pay the full cost of the settlement, many of the states decided to grab their money immediately by selling municipal (federal tax-free) bonds backed by the MSA payments expected. California alone issued at least $16.8 billion in such bonds, proceeds being used for both immediate expenses and long-term capital improvements. Legislators appear to have forgotten that the supposed purpose of the payments was to cover smoking-related expenses of future medical care for the state’s population, and instead chose to spend the money immediately on unrelated matters while leaving the burden of those health expenses with future taxpayers.

In some cases, however, the bonds are backed by secondary pledges of state or local revenues, which creates what some see as a perverse incentive to support the tobacco industry, on whom they are now dependent for future payments against this debt.

Tobacco revenue has fallen more quickly than projected when the securities were created, leading to technical defaults in some states. Some analysts predict that many of the bonds will default entirely. Many of the longer-term bonds have been downgraded to junk ratings. More recently, financial analysts began raising concerns that the rapid growth of the electronic cigarette market is accelerating the decline of $97 billion outstanding in tobacco bonds…. Lawmakers in several states proposed measures to tax e-cigarettes like traditional tobacco products to offset the decline in TMSA revenue. They anticipate that taxing or banning e-cigarettes would be beneficial to the sale of combustible cigarettes. — Wikipedia on “Tobacco Master Settlement Agreement”

Vested interests, including tobacco companies and the states, now actively seek to suppress e-cigs or at least tax them enough to make up for any lost revenue as they are adopted. This means they are actively working to keep smokers addicted to the most hazardous form of nicotine consumption, with its resultant cancers and other diseases. The original Baptist goal of helping smokers quit the habit to avoid cancer and early death has long since been forgotten.

Minimum Wage: Baptists: voters who want low-paid workers to have better lives and higher incomes, imagining poor families will benefit while businesses will pay the costs. Bootleggers: Politicians needing an issue to show they want to help “working families” and unions who represent some minimum-wage workers, but more importantly represent many more workers who make more than that, who will get even higher wages as a result of existing contracts and the outlawing of lower-paid laborers who might compete with them.

Economically, it’s very clear: minimum wage laws harm inexperienced and unskilled workers by making it illegal for them to be employed at wage rates that reflect the value they can add with their labor. Those workers won’t be hired, and many will be replaced by automation as they are priced out of the labor market. Politicians and union bosses won’t lose their jobs, even as unemployment among the unskilled increases as a result of the new minimum wage law. Most unionized workers make much more than minimum wage now, so they will keep their jobs while outlawing lower-priced nonunion competition. Economists who study the issue tend to agree there is a small negative effect on employment when minimum wages are increased slightly, but the large increases now proposed may do much greater harm by reducing hours and eliminating jobs for unskilled workers. The economists who find no negative effects tend to be labor economists, who tend to be supported by government and labor union funding and so have some conflict of interest in their researches.

Meanwhile, small business owners are ignored when they explain their response to much higher minimum wages has to be reduced hours, higher prices, and possibly going out of business since many have committed to expensive leases and can’t withstand a huge increase in costs:

[Seattle restaurant owner Grant Chen wrote of] his struggles to stay in business as he faces a 61% increase in his labor costs from Seattle’s $15 minimum wage initiative. As I’ve mentioned before on CD, the $15 an hour minimum wage law isn’t really ultimately “a political problem as much as it’s a simple math problem,” as Anthony Anton of the Washington Restaurant Association explained the situation. And Grant Chen and other Seattle restauranteurs like Brendan McGill (owner of Hitchcock Restaurant and Hitchcock Deli) are finding out that the new restaurant math of Seattle’s $15 minimum wage is breaking the system…. a 61% increase in wages from $9.32 to $15 an hour is like imposing an annual tax on restaurants of $11,360 per full-time employee. If you understand that a $11,360 tax per employee (and $113,600 in higher labor costs for every 10 employees) would drive many restaurants out of business, you’ll understand why the “new restaurant math of a $15 minimum wage” is making Grant Chen’s restaurant unprofitable, and why it is driving him out of business.

The Baptists are told hard-working poor families will enjoy richer lives, but it’s rarely mentioned that young people looking for summer work or just starting out will find it much harder to reach that first rung on the career ladder.

As Glenn Reynolds of Instapundit says:

The Los Angeles Times report somehow fails to list union workers among the winners. They earn quite a bit more than the minimum, but many of them have their pay scales indexed to the minimum wage. Unions also give heavily to Democratic politicians who support union-friendly issues like hiking the minimum wage.

And the losers? Anyone whose labor is worth less than $15 an hour, and who is about to learn the hard way that the real minimum wage is always zero.

They Wrote a Book On It: Economist Bruce Yandle (who coined the term “bootleggers and Baptists” in 1983) has a book out with co-author Adam Smith, Bootleggers and Baptists: How Economic Forces and Moral Persuasion Interact to Shape Regulatory Politics. Recommended for further study and examples, notably TARP, a $700 billion emergency response to the economic crisis of 2008 which ended up as a field day for bootleggers and rent-seekers.


Death by HR: How Affirmative Action Cripples OrganizationsDeath by HR: How Affirmative Action Cripples Organizations

[From Death by HR: How Affirmative Action Cripples Organizations,  available now in Kindle and trade paperback.]

The first review is in: by Elmer T. Jones, author of The Employment Game. Here’s the condensed version; view the entire review here.

Corporate HR Scrambles to Halt Publication of “Death by HR”

Nobody gets a job through HR. The purpose of HR is to protect their parent organization against lawsuits for running afoul of the government’s diversity extortion bureaus. HR kills companies by blanketing industry with onerous gender and race labor compliance rules and forcing companies to hire useless HR staff to process the associated paperwork… a tour de force… carefully explains to CEOs how HR poisons their companies and what steps they may take to marginalize this threat… It is time to turn the tide against this madness, and Death by HR is an important research tool… All CEOs should read this book. If you are a mere worker drone but care about your company, you should forward an anonymous copy to him.

 


More reading on other topics:

Jane Jacobs’ Monstrous Hybrids: Guardians vs Commerce
The Great Progressive Stagnation vs. Dynamism
Death by HR: How Affirmative Action is Crippling America
Death by HR: The End of Merit in Civil Service
Corrupt Feedback Loops: Public Employee Unions
Death by HR: History and Practice of Affirmative Action and the EEOC
Civil Service: Woodrow Wilson’s Progressive Dream
Bootleggers and Baptists
Corrupt Feedback Loops: Justice Dept. Extortion
Corrupt Feedback Loops, Goldman Sachs: More Justice Dept. Extortion
Death by HR: The Birth and Evolution of the HR Department
Death by HR: The Simple Model of Project Labor
Levellers and Redistributionists: The Feudal Underpinnings of Socialism
Sons of Liberty vs. National Front
Trump World: Looking Backward
Minimum Wage: The Parable of the Ladder
Selective Outrage
Culture Wars: Co-Existence Through Limited Government
Social Justice Warriors, Jihadists, and Neo-Nazis: Constructed Identities
Tuitions Inflated, Product Degraded, Student Debts Unsustainable
The Morality of Glamour

On Affirmative Action and Social Policy:

Affirmative Action: Chinese, Indian-Origin Citizens in Malaysia Oppressed
Affirmative Action: Caste Reservation in India
Diversity Hires: Pressure on High Tech<a
Title IX Totalitarianism is Gender-Neutral
Public Schools in Poor Districts: For Control Not Education
Real-Life “Hunger Games”: Soft Oppression Destroys the Poor
The Social Decay of Black Neighborhoods (And Yours!)
Child Welfare Ideas: Every Child Gets a Government Guardian!
“Income Inequality” Propaganda is Just Disguised Materialism

The greatest hits from SubstrateWars.com (Science Fiction topics):

Fear is the Mindkiller
Mirror Neurons and Irene Gallo
YA Dystopias vs Heinlein et al: Social Justice Warriors Strike Again
Selective Outrage
Sons of Liberty vs. National Front
“Tomorrowland”: Tragic Misfire
The Death of “Wired”: Hugo Awards Edition
Hugos, Sad Puppies 3, and Direct Knowledge
Selective Outrage and Angry Tribes
Men of Honor vs Victim Culture
SFF, Hugos, Curating the Best
“Why Aren’t There More Women Futurists?”
Science Fiction Fandom and SJW warfare

More reading on the military:

US Military: From No Standing Armies to Permanent Global Power
US Military: The Desegration Experience
The VA Scandals: Death by Bureaucracy