Obamacare - was the final push an act of noble means or just hubris? (via Reason.com here)

…At a time when America’s economy is still in bad shape and when we face numerous problems abroad, Obama has put the country through a shattering political battle—and, with legal challenges and promises of repeal, the fight may be just beginning.

This seems, at the moment, less a monument to idealism than to hubris.

Rep. Mike Honda, D-CA seems to think Fannie Mae knows their stuff (via Politico here).  In asking for more money to prevent legal foreclosures, he gives us this:

…In addition, Fannie Mae estimates that as many as 50 percent of the minority homeowners who received a subprime loan should have qualified for a prime loan. This clearly indicates the need for housing counseling services….

With all due respect to Mr. Honda, I think all this clearly indicates is poor critical thinking skills.  When a GSE which apparently knew nothing about the impending crisis and was proactively laying down on the job when it came to auditing loan standards gives you estimates on who might or might not have qualified for what kind of loan – laughter is the appropriate response.  Not regurgitation.

Cato on telephony deregulation, cell phone innovation, & ingratitude (here).  Discussing his memories as a child where phone line were costly and long distance was only slightly less expensive than actual driving as compared to today’s age:

Then came the breakup of the AT&T monopoly in 1984. Phone technology and competitive service provision exploded. In 1982, Motorola produced the first portable mobile phone. It weighed about 2 pounds and cost $3995.

Within a very few years they were much smaller, much cheaper, and selling like hotcakes.  Today there are some 4.6 billion mobile phones in the world, and counting, or about 67 per every 100 people in the world.

Then he moves forward to the ingratitude:

And to celebrate this incredible achievement, Slate and the New America Foundation are holding a forum titled “Can You Hear Me Now? Why Your Cell Phone is So Terrible.”

From the CEI (Competitive Enterprise Institute), we learn the EPA is about to expand its powers (here):

Washington, D.C., March 30, 2010 – The Environmental Protection Agency and the National Highway Traffic Safety Administration (NHTSA) are expected this week to finalize their joint greenhouse gas (GHG)/fuel economy standards rule. This will make carbon dioxide an “air pollutant subject to regulation” under the Clean Air Act for the first time. The rulemaking, and the endangerment finding that is its prerequisite, will allow EPA to immediately exercise and continue to amass powers never delegated to the agency by Congress….

I suppose those supporting the decision know nothing about the EPA’s massive failure in just the Energy Star program.

Lastly, as a reminder, most places and people in the US did NOT buy homes they couldn’t afford (via WSJ here):

The U.S. still is feeling the effects of widespread housing bust, but a new report serves as a reminder that large swaths of the nation didn’t experience a boom in home prices and hasn’t suffered from the bust….

In fact, most of the insane double digit growth in real estate prices were in 5 main areas – NY corridor, Florida, Arizona, California, Nevada.  Make of it what you will that almost all flyover states never experienced the irrational boom, to be inevitably followed by the burst.

Over @ The Economist’s new-ish debate section, they are currently debating the proposition This house believes that China is showing more leadership than America in the fight against climate change and currently, 74% believe in this proposition.

I know I’m unlikely to change many minds, but it’s always seemed to me that when trying to evaluate one country’s international progress on any one specific ideal, we end up narrowing the debate to such an extent as to make the question irrelevant.

In what seems to be a strong desire to answer questions objectively without respect to questions of ethics or other governmental policies, the intelligent ones among us miss the forest for the trees.

Towards that end – my two cents:

Dear Sir,

It seems maybe we should define leadership to an extent that either includes ethical behavior or can exist without ethics. For as long as the term leadership includes some notion of ethics, “ability to move fast” or the ability to put up light rail for the Olympics, simply can not matter in light of governmental policies designed specifically to limit the freedom of the individual and make the peasant serf work for the state.

Even *if* one wants to make the argument that ethics aren’t integral to the question, it’s still useful in evaluating “leadership”. For instance, when China starts implementing new green policies and initiatives, what’s the likely source of technology they will use? American? German? British? Swedish?

& Why? Because when people are allowed opportunities to flourish through a system that protects them with basic contract rights, innovation will flow much more easily. This is why China might manufacture most of the toys and basic electronic gadgets in the world, but the design process certainly came from someplace else.

An an example, they only recently successfully launched a satellite into orbit.  Prior to 1996, 2 out of 3 attempts ended in massive failures, meanwhile those freer countries had hundreds of them for various purposes including GPS, with even private companies using the technology successfully as well.

& lastly – it’s unlikely China would even admit a problem at all if they still retained the control that was possible just a few short decades ago. Today, they try to control press from earthquakes, the forceful removing of millions to make Olympic Village, their crime rate, and any number of other things they consider “bad” press.

Due to the explosion in the sharing of global information however, China finds it difficult to hide as much as they used to. Even the very closed off North Korea is finding this difficult as well.

So long as they continue to hide bad press, there’s no reason to think this “leadership” is anything other than a play at international recognition while hopefully strengthening their core domestic support.

In strategic thinking, this is known as a two-fer.

Either way – both goals have only one thing in common – staying in power and retaining as much control over the population as possible.

Removing ethics and the results of their standard operating procedure seems the only way to think of China as leading the world in anything.

What are the odds that a government agency tasked with identifying research priorities, research performance management, and reviewing the impact of completed research will come up with a solution that doesn’t involve the government?

Today & tomorrow the EPA are meeting for just this reason (@eScienceNews):

…The goal of the meeting is to develop a collaborative framework to ensure future research and development dollars are spent wisely and in a coordinated manner….

Of course it doesn’t really matter what the answer is, because “spent wisely in a coordinated manner” is almost mutually exclusive to good R&D.  As should be expected by now, the EPA is wasting money on answering a question for which recent literature already exists.

Back in 2001, a Jack Welch underling, W. James (Jim) McNerney, Jr was hired as 3M’s CEO.  In the fanfare associated with being a protege of Mr. Welch, when Mr. McNerney joined 3M, investors had high expectations of pushing some of the GE magic onto the 3M culture.

One of the first and most prominent of these culture changes Mr. Mcnerney instituted was a heavy does of SixSigma.  From the beginning, leading business thinkers were asking whether pushing a very creative culture into the narrow focus of SixSigma might not work.  Or at least, it should not include the whole company.  Sure, use SixSigma for accounting procedures, but leave out R&D.

Of course proponents of SixSigma disagreed.  If it can help manufacturing and then be translated to service related products, why not R&D?

Regardless of the writing public, 3M went forward with implementing a SixSigma policy that included training all workers to a Green-belt level and use SixSigma methodology for every department, including R&D.  How’d it fare?

As you’d expect, the results are mixed.  But asking former 3M scientists, engineers, and the like?  Overwhelmingly they tend to agree it wen too far (@DesignNews):

…While 3M emerged financially stronger from the McNerney era, many long-time 3M researchers, engineers and scientists chafed under the strictures of Six Sigma. Critics argue that excessive metrics, steps, measurements and Six Sigma’s intense focus on reducing variability water down the discovery process. Under Six Sigma, the free-wheeling nature of brainstorming and the serendipitous side of discovery is stifled. Proponents contend such methodologies’ rules keep researchers on track and accountable for producing. Striking the right balance between the application of Six Sigma and unencumbered research is often seen as key….

In fact, a then board member and the former 3M scientist who developed Post-It Notes stated that he believes that in the SixSigma environment, Post-It Notes would simply never have been developed.

History is also rife with examples.  In the book, Sex, Science and Profits: How People Evolved to Make Money,  written by Terence Kealey (review @ Reason.com):

…Kealey shows in nearly every case the crucial inventions of the past two and half centuries were called forth by markets, not invented by scientists working from ivory towers. These include the steam engine, cotton gin, textile mills, railroad engines, the revolver, the electric motor, telegraph, telephone, incandescent light bulb, radio, the airplane—the list is nearly endless…

In fact, a government-funded research paper showed public money can hurt innovation.  Mr Kealey writing about it(@AllBusiness.Com):

…n fact, the evidence shows otherwise. In 2003, the Organisation for Economic Co-operation and Development published The Sources of Economic Growth in OECD Countries, reporting on a comprehensive regression analysis of the factors that might explain the different growth rates of the world’s 21 leading economies between 1971 and 1998. This indicated that only privately funded R&D led to economic growth, and that publicly funded R&D did not. Worse, the public funding of R&D crowded out private funding, and thus slowed economic growth…

No worries though, I’m sure the government will tell you, that this time is different.   Just ask them.  They completely understand it’s failed many times before, but what you (read: citizens) are too ignorant to understand, is that those failures were under other people and not the worldly, brilliant, omniscient, and yes, even death-defying leaders of today.

& if that doesn’t work for you, remember that it’s “Green”, which we all know are now established unqualified goods.  As such, regardless of how much money taxpayers have to spend to subsidize “green” stuff, the end results are worth it.

Last, but certainly not least, if both of these arguments don’t work to mitigate your concerns, welcome to the club: Disgruntled Americans Against Government Stupidity (DAAG)

In an effort to increase sales of large sized Saudi Prince dolls to burn in effigy, the Saudis are seeking (again) world welfare in case of a decline in oil revenues due to global warming policies (here):

Saudi Arabia is trying to enlist other oil-producing countries to support a provocative idea: if wealthy countries reduce their oil consumption to combat global warming, they should pay compensation to oil producers….

This would ordinarily send me into a rant with lots of words ending with something like, “Why do they think we owe them?”  It would likely also include a discussion on OPEC and their unnatural control  of the market which allows them to set the price much higher than it would be otherwise.

However… considering the kingdom’s hatred of women, children, and consistent human rights abuses through Sharia law and the Wahhabi religion, using this to call out Saudi Arabia would be like getting angry at Jeffery Dahmer for having a bad sense of fashion.

President Obama, among other distinguished guests, got together at the UN for a conference on Climate change.

This pressing issue, that Mr. Obama cares so much about – that issue which his party fights for daily was so important, that his words must have been strong and firm on our commitment to the environment, right? (here):

…”I have been in office for just nine months, though some days it seems a lot longer. I am well aware of the expectations that accompany my presidency around the world. These expectations are not about me. Rather, they are rooted I believe in a discontent with a status quo that has allowed us to be increasingly defined by our differences, and outpaced by our problems. But they are also rooted in the hope that real change is possible, and the hope that America will be a leader in bringing about such change.

“I took office at a time when many around the world had come to view America with skepticism and distrust. Part of this was due to misperceptions and misinformation about my country. Part of this was due to opposition to specific policies, and a belief that on certain critical issues, America has acted unilaterally, without regard for the interests of others. This has fed an almost reflexive anti-Americanism, which too often has served as an excuse for our collective inaction.”…

Ok – so unilateral action in our interests are different from other unilateral actions other countries make how?  And should we care why?

I know, this again will make me be seen as heartless and I do understand that we have to act in a way that is semi-consistent with international laws, but it’s not our job nor is it our responsibility.  I would like to think that when despots are killing their own citizens, we can act unilaterally if we wish.

Please understand; I’m not for an expansion of foreign entanglements mind you, I’m only saying that when something is a just cause and others are unwilling to do anything, then unilateral action is the moral response.

But, he did go on to say that he wouldn’t apologize for defending the nation’s interests.  So there’s that… but this as well:

…”We know the future will be forged by deeds and not simply words. Speeches alone will not solve our problems. It will take persistent action. So for those who question the character and cause of my nation, I ask you to look at the concrete actions that we have taken in just nine months.

“On my first day in office, I prohibited — without exception or equivocation — the use of torture by the United States of America. I ordered the prison at Guantanamo Bay closed, and we are doing the hard work of forging a framework to combat extremism within the rule of law. Every nation must know: America will live its values, and we will lead by example.  “…

Maybe the President is out the loop or something, but GITMO remains open, and without knowing the specific interrogation techniques which are now being allowed, “not allowing torture” is a joke.  I think it’s obvious that both President Bush and Vice President Cheney didn’t believe they were “allowing torture”, but maybe he meant something else – like;

“I started a committee to look into closing GITMO, but I still support the Patriot Act, sending prisoners to other nations who torture, and really, most of my predecessors policies, with the exception of the committee and DOJ investigation.”

But this is politics, so he continues:

…”We have set a clear and focused goal: to work with all members of this body to disrupt, dismantle, and defeat al Qaeda and its extremist allies — a network that has killed thousands of people of many faiths and nations, and that plotted to blow up this very building. In Afghanistan and Pakistan, we — and many nations here — are helping those governments develop the capacity to take the lead in this effort, while working to advance opportunity and security for their people.”…

Where’s Iraq?  Oh, here:

…”In Iraq, we are responsibly ending a war. We have removed American combat brigades from Iraqi cities, and set a deadline of next August to remove all of our combat brigades from Iraqi territory. And I have made clear that we will help Iraqis transition to full responsibility for their future, and keep our commitment to remove all American troops by the end of 2011.:…

Well, that’s not really true.  We’re pulling back troops and have a date to leave, but the Iraqi government can ask us to stay and we would likely oblige… but even without that, does this match the campaign promise?

Hmmm….:

…On Tuesday, Obama introduced the “Iraq War De-escalation Act of 2007,” which calls for a goal of all U.S. troops to leave Iraq by March 31, 2008, in a phased redeployment worked out with military commanders….

It’s almost becoming too easy to poke holes in damn near anything he says, but remember first and foremost that this was a UN Conference on Climate Change.

To be fair, he did get there.  Out of roughly 1000 words spoke, he spent 46 words on climate change.  For an administration that recently published a report described as this:

…The report describes in vivid detail how our urban infrastructure will be placed in peril from intense hurricanes and storm surges, how heat waves, poor air quality, and insects will increase, and how a rapidly intensifying climate change will make it difficult for both society and the natural resources we possess to adapt….

His discussion on the world stage leaves a lot to be desired.

For real climate change discussions and solutions: I highly recommend the Copenhagen Consensus.

Unless you were lucky enough to be traveling or otherwise unavailable on Sunday, you were likely deluged with Mr. Obama’s media storm to sell not only health care, but apparently many other items as well.

First, it should be noted that this WH is above all, extremely insecure.  The President could be seen on 5 Sunday news shows: NBC, ABC, CBS, CNN and Univision.   But he didn’t have time for Fox, the number one rated Sunday news show…

Regardless of the WH being extremely petty and worrying more about perceived injustices than an honest discussion with those who might disagree, what he actually said is far more serious.

When asked if a health care mandate was a tax increase on ABC’s this week, the President responded:

…”I absolutely reject that notion,” the president said….

“What it’s saying is, is that we’re not going to have other people carrying your burdens for you anymore,” said Obama. “Right now everybody in America, just about, has to get auto insurance . Nobody considers that a tax increase.”…

Using flawed logic is nothing new for Presidents, but this one isn’t even close.  Hhe’s analogizing the privilege of driving with the “privilege” of being a citizen.

The difference of course as that by my very birth, I have a “right” to be a citizen, whereas driving has always remained a privilege with constraints.  You see, I can forgo auto insurance, so long as I don’t drive.  There are many ways around without a car in this day and age, but if I “choose” to drive, then constraints can be placed on me.

Health care on the other hand would be required simply because I existed and no other reason.  & If the government says, “You have to buy this” – it is a tax increase as not paying it can land you in very serious legal troubles.

On CBS’s Face the Nation, with an omnipotent sense of when health care, our fearless leader goes further:

…Obama put his support behind the idea of taxing employers that offer high-cost insurance plans.

“I do think that giving a disincentive to insurance companies to offer Cadillac plans that don’t make people healthier is part of the way that we’re going to bring down health care costs for everybody over the long term,” Obama said on NBC’s “Meet the Press.”…

Even ignoring the fact that this goes against his basic premise that more people need more health care, one wonders if there is anything our President doesn’t know.  So far, he’s taken over banks, car companies, told car companies with whom to merge, who to hire, who to fire, what to build… and now we find out he knows how much health care is too much.

But let’s not stop there.  Not only is our community organizer one of the smartest men in America when it comes to economics and health care, he’s also a brilliant strategist with respects to Afghanistan:

…”What I’m not also gonna do, though, is put the resource question before the strategy question,” Obama told NBC’s David Gregory on “Meet the Press.” “Until I’m satisfied that we’ve got the right strategy I’m not gonna be sending some young man or woman over there- beyond what we already have.”…

I’m not sure exactly what happens to man to think he has the answers to every single last question. Maybe it’s just arrogance and ignorance, as Hayek stated:

If most people are not willing to see the difficulty, this is mainly because, consciously or unconsciously, they assume that it will be they who will settle these questions for the others, and because they are convinced of their own capacity to do this.

Whatever the reason he believes so strongly in his ability to decide what’s best for our own good, history shows us without question where this inevitably leads.  Hayek again:

To act on the belief that we possess the knowledge and the power which enable us to shape the processes of society entirely to our liking, knowledge which in fact we do not possess, is likely to make us do much harm.

Let’s hope we begin to understand the value of humility before we do too much damage.

In an effort to make sure Paul Krugman isn’t the most incoherent economics writer working for the New York Times, Thomas Friedman comes out with an oped yesterday titled Our One-Party Democracy.

You see, in Mr. Friedman’s world, the only party working towards effective reform is the Democrats, therefore democracy has failed:

Watching both the health care and climate/energy debates in Congress, it is hard not to draw the following conclusion: There is only one thing worse than one-party autocracy, and that is one-party democracy, which is what we have in America today.

Not hard for him maybe, but for those who like freedom, we only see the worst example of governance ever conceived… except for all the others.

Why stop there?  According to Mr. Friedman, the real problem here is that the US isn’t more like China:

One-party autocracy certainly has its drawbacks. But when it is led by a reasonably enlightened group of people, as China is today, it can also have great advantages…

I’m pretty sure even the leadership in China just laughed out loud at being called  enlightened – they are probably laughing just as hard as I am confused in trying to figure out how Mr. Friedman could come to such a conclusion.

After all, China is a country that continues to jail dissidents, persecute the religious, deny access to a free press, ignore basic contracts rights, and many, many other anti-freedom atrocities, all of which are well documented and easy to find.

Just a couple years ago, in 2007, multiple reports held that Chinese officials had displaced (read: kicked out without recourse or compensation) 1.5 million Chinese nationals to make room for the Olympic Village.

Surely Mr. Friedman understands this, so why go to such lengths as to spot light China for being enlightened?  Well, to Mr. Friedman, it seems obvious that with all of China’s current evils, they don’t rank with the evils being perpetrated on US society  right now by Republicans.  Thanks to Mr. Friedman, the Republican’s evil nature has been identified and it is startling.  Yes, the Republicans have dared to oppose Mr. Friedman’s Mr. Obama’s legislation:

…The fact is, on both the energy/climate legislation and health care legislation, only the Democrats are really playing. With a few notable exceptions, the Republican Party is standing, arms folded and saying “no.” Many of them just want President Obama to fail. Such a waste….

What should we do when people dare to demonstrate such blatant use of their individual rights by going against the One True Way?  Well go to one-party autocracy:

…The only way for us to match them [China] is by legislating a rising carbon price along with efficiency and renewable standards that will stimulate massive private investment in clean-tech. Hard to do with a one-party democracy….

…Well, to compete and win in a globalized world, no one needs the burden of health insurance shifted from business to government more than American business….

I know when trying to follow such flawless logic, sometimes we lose the forest for the trees, so for those playing the Analogy home game:

In the past 200 years, the United States, with a fairly free economy, slowly became and then maintained economic dominance in almost all areas, while China, Russia, and other controlled economies have done much worse.  Recent history is different with China, India, Russia, and others becoming emerging economies, but only as they progressed towards market reforms and away from command economies.

To Mr. Friedman however, little things like historical evidence and current human rights’ abuses aren’t part of the equation.  The only part of the equation seems to be “China is doing things I like, the US isn’t, therefore the US is bad and China is good.”

The most amazing thing is how he isn’t even trying to hide his desire to control your lives.  Without a hint of irony, he is telling you directly he’d prefer that those who disagree not be given rights to control the government,  while those who agree with him should be shown the keys to the kingdom.

Yes, like all worthless dictators before him and all totalitarian idiots who will come after him, Mr. Friedman is more than willing to give up your rights in search of his goals.