Category: Economics

Reason Article Barrage!

July 11, 2018 / / 0 Comments

Cleaning up some open tabs. As my readers should know, Reason magazine is where I get a lot of my news and analysis.

California Supreme Court Rules Impossible Laws Are Constitutional Basically, the court says impossibility can be a defense, but does not invalidate the law. Okay, I can understand that concept in theory, but it has real world costs for people forced to defend themselves from overzealous prosecutors enforcing this bullshit law. This is the kind of legal wonky ruling that reduces confidence in legal thinkers.

Illinois Court Rules That Police Can’t Arrest A Person For Carrying a Gun Without Checking For Valid Permit. This kind of balances out the previous article. I’d say I was surprised it came out of Illinois, but their courts have been much better on RKBA than the legislature.

A federal judge has blocked Tennessee’s practice of suspending driver’s licenses for unpaid court fees without first determining if the debtors are too poor to pay. This is a good step to remedying the vicious cycle of fines, suspension, jail that plagued the lower income communities.

Reason Is Concerned That the Recent Loss by the Southern Poverty Law Center Could be a Threat to Free Speech. I understand the concern that defamation suits can have a chilling effect on speech, which is why I support strong Anti-SLAPP laws. I will also admit to my own schadenfreude against the SPLC.

DC Taxes the Hell Out of Ride Sharing to Prop Up Broken Metro System. In my trips to DC, I’ve never had to deal with the numerous issues plaguing the Metro. That being said, with the coming changes in vehicles (automation and electric), I can’t support additional taxes to rail that is on its way out, much less an agency as troubled as the Metro.

Union Dues

July 5, 2018 / / 0 Comments

So, we now have the US Supreme Court telling public sector unions that they can’t force employees to pay dues because those dues are used for speech that the employee has no say in or actively opposes. Some are calling this the death of unions, which I don’t think is necessarily a good thing. I’m hoping it will force a change in how unions operate.

I think public sector unions need to be abolished or substantially overhauled. There’s a governor on private sector unions in as much that if they have to balance the firm’s survival with their demands. Management has to balance the unions’ demands with the survival of the firm. Neither can force a third party with violence to support both the survival of the firm and the unions’ demands.

However, I can also understand wanting to band together to prevent management from forcing bad pay and working conditions. I also understand how the government, in its role as an employer, may want to have one negotiation covering as many employees as possible instead of hundreds or thousands of individual employment contracts. So, how to address all of these competing concerns?

My solution would be forcing a wall between the union’s bargaining activities and its political activities. I’m thinking how the NRA must separate out its political activities (by way of the NRA-ILA) and its educational activities. The bargaining fund could only be used for bargaining activities with management, and not be used for political donations or speech. A fee per employee could be assessed because each employee is using the union services for that bargaining. Any other service that the union would provide (health care, pension, grievances) should be through non-compelled membership. If union leadership wants to ask for political donations to support candidates, then those donations should be in a specific political fund for those activities.

There is a union at the day job. I don’t want to join it both because I dislike how they handle employee-management relations as well as just disliking public sector unions in concept. I’d be more willing to pay a fee for bargaining if I knew that it wasn’t going to be used to pay for speech that I strongly oppose or advocate for employees that really need to leave government service.

Maybe this ruling will force the changes I want to see.

I Thought Gentrification Was Bad

July 2, 2018 / / 0 Comments

The “common wisdom” is that gentrification is bad because it pushes out the poor original residents by raising prices and taxes beyond what they can afford. That may be less common wisdom and more urban myth according to this article from the Economist.

Gentrification is actually a boon to original residents as it brings in better stores with more goods, and increases the quality of local services.

Well, That Was A Hell of Week

June 25, 2018 / / 0 Comments

A flurry of important Supreme Court decisions that will probably take a few years for the full import to become clear.

The big one was the ruling that states could force companies who have no physical presence to collect sales tax for the states. This will definitely have a chilling effect on internet sales, which has thrived on relying on the customer to pay the appropriate sales tax to the state instead of being the revenue agent. One thing that was brought up but not adequately discussed is that the law the Supreme Court upheld had an exemption for businesses under a specified threshold ($100,000 in sales or 200 separate deliveries). Would a law without that threshold still be valid under this ruling?

The next big one was the ruling that cops need a warrant before obtaining cell phone records. According to this analysis, Gorusch’s dissent is more of a concurrence with the result but dissent on the logic made to reach the decision.

Another important decision that will probably fly under the radar, the court decided that Administrative Law Judges needed to be appointed by the president or delegate and not simply by the bureaucracy. Considering the width and breadth of department regulations taking the place of actual laws, this at least makes those who decide in adversarial proceedings more accountable to the political will instead of the bureaucracy.

This has been a most interesting session.

Social Security Going Broke Faster

June 7, 2018 / / 0 Comments

People, particularly Boomers, hate when I inform them that Social Security is not a pension – it’s welfare that’s paid with its own special tax. I get all sorts of vitriol like “we paid into the system” or “Congress stole our money” or that it’s somehow solvent because all of the IOUs in the Social Security fund are backed by the US government. Yeah, no. A government program that takes money from taxpayers and gives it to other taxpayers is welfare. The moment it leaves your paycheck it’s no longer your money. There is no lock box. It’s just a government slush fund.

That slush fund is projected to be insolvent in 2034, or just sixteen years from now. Which considering Social Security is one of the four biggest expenditures of the fed, is kind of scary. Worse, Medicare, another of the big four, will go broke in 2026, just eight years from now. What this means is that instead of money coming out of those funds to supplement the federal budget, the programs will need additional money to maintain services. Since Congress is loathe to either cut spending or significantly raise taxes, they will go to the tried and true method of borrowing more money.

That will work – for a while. Maybe even a long while. At some point, the federal government will be forced to make some very unpalatable choices. Because there will come a point when tax revenues and the credit of the American government will be outstripped by entitlements, interest, and the defense budget.

Personally, I’d like to see a phase out of Social Security and Medicare to private accounts. While I’m not a fan of government welfare, I could at least semi-support targeted welfare for those in need instead of the blanket welfare approach of the current programs.

For my Gen X and Millennial readers, the big takeaway is do not include Social Security in your retirement planning. Of you’re like me and don’t pay into Social Security because you pay into a pension plan, don’t count on that for retirement. Only count on what you can expect to receive from investments. There’s a damn good chance that there won’t be anything for us.

Tab Clearing

May 17, 2018 / / 0 Comments

I’m borrowing Tam’s title and clearing out articles that I meant to do full posts on.

Teaching Situational Awareness to Kids – Because I have two in my life, and I’d kinda like to keep them out of danger.

The Economist saying how wonderful universal health care is for all nations. This was one I wanted to fisk, but I’d recommend reading it to understand how the proponents think.

Syrian Metal Is War – Yeah, like I could scroll past that article.

[Finland ends its universal basic income experiment.](https://fee.org/articles/finland-ends-its-experiment-with-universal-basic-income/?utm_source=zapier&utm) I like the concept of a basic income that replaces all other welfare programs. It just doesn’t seem viable in the real world.

Start-ups make an alternative for braces, and the dental groups rent seek. – I hate when businesses use the violence of government to keep others out of the market.

The Volokh Conspiracy has an excellent column on not supporting laws you wouldn’t kill someone to enforce. Honestly, that would be an interesting bit of mandatory language in any law that assesses a criminal or civil penalty. Make the legislators affirm that this is important enough to possibly kill someone over.

A surprising column from The Atlantic on cultural appropriation. I swear to FSM that I would laugh in the face of any person foolish enough to accuse me of that. Or denigrate.

That’s all for now. I’ll probably need to do this again.

Income Inequality- Bogus Statistic, Real Issue

May 14, 2018 / / 0 Comments

I was listening to the Reason podcast with Jonathan Rauch was being interviewed about his new book. Of course, I’m going to recommend that you listen to the whole thing. I found it very enlightening about the nature of happiness, particularly for those hitting middle age.

One item that came up during the interview dealt with how most people view income inequality. In my opinion, I’ve always considered income inequality a bullshit metric. Something used to gin up the masses and sell papers and clicks. IMHO, the far more important metric is how are the people doing year over year or over time. It’s not like the economy is a closed system. As long as people’s lives are consistently getting better, then why should it matter if some segments are increasing more than others?

This is not normal human psychology. People tend to base their happiness on how they are doing compared to others. It really is important to keep up with the Jonses. When people don’t think they are improving as fast as the rest of the world, unhappiness abounds. This becomes intensified with all the media streams blaring out conspicuous consumption of the various media whores – I mean, celebrities.

This unhappiness is what unrest is made of. Or at least, one thing that can contribute to a restless population. It also appears to contribute to the rise of populists – on both sides of the traditional political spectrum. Note the rise of Trump and Sanders. Both of them tapped into the unhappiness of the population by promising the people to make their lives better. To either bring the people’s livelihoods up – or bring down those the people think are doing too much better.

I’m not going to pretend that there’s an easy solution. It’s a psychological issue, and nothing about psychology is easy. People are just too fucked up. IMHO, there are some things that should be done. We need to look at economic policies that help increase people’s standards of living. My personal hobby horses are free trade, low taxes, and limited regulations. I don’t see how trying to redistribute wealth by taxing the top earners would help grow the economy and increase standards of living.

Although I still think it’s a bullshit metric, I’m going to take a more careful look into income inequality – but more as a gauge of the populace. This may be one of the leading indicators of a real civil problem. One that might require me to make sure I’ve got enough ammo and storm shutters on my windows.

Ride Sharing Scams

May 11, 2018 / / 0 Comments

I found this Reader’s Digest article via Active Response Training. I’ve only recently started using ride sharing services, so I took a look.

Most of the scams are drivers asking for cash to double dip the fare. The biggest takeaway from this was if you’re paying through the app, and the driver demands cash, report him/her to the company. I would also recommend that you listen to your intuition. If something seems off, end the ride or don’t get into the car.

Florida Baseball Sucks, So Let’s Keep Propping It Up

April 26, 2018 / / 0 Comments

The local fish wrapper decided it needed to reply to a recent WSJ article on how professional baseball sucks in Florida. Full disclosure: I’ve been to exactly one Rays game, and I’m not a huge fan of baseball to begin with. So, why am I writing about this?

Because the same Tampa Bay Rays that is being sued by the players union for not spending enough on the team is busily trying to get the local governments to pony up for a new stadium down in Ybor.(That’s pronounced EE-Bore for those of you not familiar with Tampa.)

That’s my tax dollars going to prop up a team that has trouble selling seats already. That’s my tax dollars going to yet another public stadium with false promises of it being a boon to the area economy.

Bread and circuses.