Archive for the ‘Corruption’ Category.

You Didn’t Build That

Detroit did not need a Thomas Jefferson or a Mohandas Gandhi or another great political philosopher with a world-changing idea — it needed someone to fix the potholes, balance the books, keep order on the streets, see to the schools, and keep the city agencies orderly and honest and effective. Without that, all of Detroit’s productive capital — physical, financial, and human — was devalued and ultimately dispersed.

A nation as rich as ours can afford a great deal of stupidity, but hubris is expensive.

Detroit’s success was a very complicated story. Its failure is a simpler one.

How did Detroit become the “Motor City” at the center of the U.S. automotive business? It wasn’t obvious that it would be: At the end of the 19th century, more than 100 automobile companies were organized in the United States, most of them in New England and Ohio. But Michigan won out because it had a hugely important advantage in one natural resource: smart people.

Ask a half-dozen car guys why Detroit beat out the rest, and you’ll get a half-dozen answers: Maybe because Henry Ford and Ransom Olds lived in Michigan, or maybe because Standard Oil helped to lift the gasoline-powered Michigan manufacturers over competitors in Cleveland and Boston, which leaned toward steam and electric power. (Electric cars — imagine that.) But one of the main reasons Detroit became the Motor City is that it already was a motor city: Before it was a powerhouse in the automobile business, it was an important center for manufacturing marine engines (as was Cleveland), and as such was home to a work force with skills relevant to building automobiles — metalworkers, mechanics, engineers, machinists, experienced laborers. The most useful kind of intelligence resides in particular people and in particular intellectual communities, whether those are theoretical physicists or construction workers. That kind of intelligence cannot be boxed up and redistributed like surplus cheese. It is where it is, and it is there because of organic developments that cannot be managed.

Henry Ford offered good wages and an intelligently organized production process, but he didn’t exnihilate those skilled workers into existence; he just hired them. The larger and more complex the intellectual ecosystem of Detroit became, the greater the advantage provided by its workforce was — and the more it became a magnet for the best workers.

And Henry Ford wouldn’t have got very far without them.

. . .

(I will here offer the obligatory periodic reminder that the story about Henry Ford’s bootstrapping the automobile market into existence by paying his workers enough to afford his products is a myth, pure folk economics.)

Henry Ford’s problems are our problems still. North Carolina is the Detroit of the American upholstered-furniture industry, and its biggest problem right now is finding skilled workers to man the industry’s factories. A program set up by furniture manufacturers and a local community college is training up new workers as fast as it can, but that is not fast enough: “The good news is we can graduate 150 people a year,” one furniture executive told the Wall Street Journal. “The bad news is that the industry needs 800 to 1,000 people.” Another recruiter described hiring an upholsterer through a temp agency as “winning the lottery.”

And yet millions of Americans somehow manage to languish in persistent joblessness.

The story is familiar, with businesses ranging from the literally old-timey (mechanical-watch manufacturers) to the high-tech (chemical companies) complaining loud and long that they cannot fill their openings, that highly skilled, reliable labor is impossible to find. Old-fashioned business strategies such as (radical idea!) substantially raising wages are not always effective. (Keep trying, guys; it worked for Henry Ford — eventually.) Industry groups have put together training and apprenticeship programs such as the one for furniture-makers in North Carolina, where a $600, eleven-month course prepares workers for jobs that can pay in excess of $75,000 a year. The Institute of Swiss Watchmaking operates training programs in Fort Worth, Texas, along with Hong Kong and Shanghai. For those on shorter timelines, there are still a bunch of oil-and-gas companies that will pay you to get a commercial driver’s license and then hire you when you do.

If the demand-side story is familiar, then so are the excuses from the potential supply side. If you’ve followed the intramural debate on the right between the classical free-market conservatives and the new right-wing anti-capitalists, then you’ve heard this before: “I want a good job, but I don’t want to move to one of those awful, expensive, godless coastal metros to get it.” “Okay, but there are lots of jobs to be had in lots of other places that aren’t Palo Alto.” “But I don’t want to invest four years in college and go into debt to do it.” “Okay, there are jobs to be had in West Texas gas fields and North Carolina furniture factories and all sorts of other places that don’t require a four-year degree.” “But. . . .”

There’s always another “but.”

Furniture-factory recruiters tell the Wall Street Journal that potential workers sometimes turn their noses up at their training programs because there is no guarantee that demand for workers will be as strong years in the future as it is today. Factories trying to recruit Millennials also have discovered that starting the workday at 6:30 a.m. is an obstacle. The usual thumbsuckers offer the usual thumbsucking excuses. A cynical man might wonder what exactly would get these folks to take the job — an iron rice bowl?

There’s a reason so many of the complaints we hear about China are characterized not by horror at the brutality of the Chinese regime but by frank envy of its command-and-control powers.

Tom Friedman calls it being “China for a day.” Marco Rubio calls it “industrial policy.”

. . .

If you are willing to consider the full, mind-bending complexity of the U.S. economy, then Elizabeth Warren’s “You Didn’t Build That!” argument becomes, in a sense, Leonard Read’s argument in “I, Pencil.” Everything touches everything else, and burdens are shared in complicated ways. Senator Warren’s story is an attempt to create a compelling moral narrative for managerial progressivism, the dusty intellectual antique installed firmly in the center of her brain. But while her political conclusions do not necessarily follow from the facts, she isn’t wrong about the facts themselves. Entrepreneurship does not happen in a vacuum, and nobody seriously thinks it does.

(Senator Warren leans heavily on an old politician’s trick: Arguing with positions that nobody really supports; in this, she is a lot like our friends on the new anti-capitalist right, who believe they have a patent on the idea that there is life beyond the market.)

Consider the early days of the automotive industry: When Alexander Winton drove from Cleveland to New York City to promote his new automobile, the trip took nine days and was thought to be such a feat that he was greeted by a million people upon arriving in Manhattan. The roads were, as Winton put it, “outrageous.” A few years later, an enthusiast in another Winton automobile made the first coast-to-coast automobile road trip in the United States, from San Francisco to New York.

. . .

The complexity of real-world economic relationships is the point of “I, Pencil,” Read’s famous essay, which illustrates that even something as straightforward, ubiquitous, and cheap as a No. 2 pencil relies on a vast network of industrial processes, specialized knowledge, trade, etc. so vast as to be well beyond the comprehension of any single organization, much less any individual. That’s the miracle: Nobody knows how to make a pencil, but we have plenty of them, anyway. Read took this as an argument against central planning, and he might be reasonably criticized for minimizing the role of the public sector; Senator Warren takes the same entangling relationships as an argument for more central planning, even though she occasionally remembers to make a rhetorical gesture in the direction of capitalism. Read was basically right and Warren is basically wrong, but Warren’s distortion of the underlying principle does not diminish the importance of public-sector and non-market institutions in the ecosystem of Readian economic complexity.

The complicated truth is that Henry Ford (and every other entrepreneur) drafted behind both public-sector and private-sector investments that preceded him and his own innovations. The marine-engine business helped lay the foundations for the subsequent success of Detroit’s automotive industry, but so did roads and schools and the like. There’s a word for that: civilization. Isaac Newton was not the only one who stood on the shoulders of giants. All of us do. (And not just giants: Nobody invented the automobile or the internal-combustion engine. There were thousands and thousands of contributors to that subtle and spectacular evolution.)

If it seems like we have drifted a long way from the original point about the role of the work force in the entrepreneurial process, we haven’t.

. . .

The current argument about the future of capitalism is about a lot of different things, some of which are only tangentially related to one another. Some of these considerations are matters of narrow political self-interest: Senator Rubio et al. have discovered that there is some juice in Trumpian neo-mercantilism and believe, with good reason, that there is even a little cross-partisan appeal to it. They have failed to articulate a set of policies or meaningful principles to go along with that hunch, but if President Trump has shown Republicans anything, it is that policies and principles are optional for a working majority of right-leaning voters, who can be had at the price of some vague grumbling about the national interest and intellectually dishonest claptrap about how “market fundamentalists on the right want more record-setting days in the stock market above all else,” as Senator Rubio put it.

I will reiterate here two things: The first is that Senator Rubio is engaged in a political fight to the death with a straw man, and that so far the fullest expression of his conception of the national interest in economic policy is subsidies for politically connected sugar producers in Florida. In politics, vague principles rarely stand up to specific demands from specific constituents.

On the wider cultural front, the fight about the future of capitalism is in no small part a matter of status competition, less a question of economic development than of how we talk about economic issues. Practitioners of resentment politics wish to reduce the prestige of cultural rivals, and so we have the strange spectacle of our so-called nationalists abominating the actual centers of American power, prestige, and influence: Silicon Valley, Wall Street, the Ivy League, Hollywood, etc.

Both Warren-style progressives and right-wing critics such as my friend Michael Brendan Dougherty seek to undermine the heroic account of entrepreneurship and corporate success traditionally put forward by apologists for capitalism. For these critics, the professional and financial elites represent a morally corrupt class that needs to be taken down a peg — those of you who have followed this conversation for a while will remember that Dougherty’s famous thought experiment about Garbutt, N.Y., had conservatives advancing the interests of “a typical coke-sniffer in Westport” and his in-laws down the road in Darien. Their argument is at heart about social status, holding that the finance workers in Fairfield County and the multinational firms that employ them deserve less admiration, as do the start-up founders and venture capitalists on the opposite coast, which is why it is important that they be cocaine enthusiasts or sexual deviants or whatever for purposes of political narrative if not in real life, where the coastal elites practice the bourgeois values (stable marriages and thrift and relative sobriety and all that) to a remarkable extent.

At the same time, the same critics argue that we should have more sympathy for those who are stuck in economically stagnant and socially backward communities and who do not wish to leave them. Dougherty presents this explicitly as a sympathy deficit on the part of the capitalism camp: “Any investments he made in himself previously are for naught. People rooted in their home towns? That sentimentalism is for effete readers of Edmund Burke. Join the hyper-mobile world.”

Though the protectionism put forward by the likes of Trump and Rubio is couched in the language of national interest, it is the opposite of that: Americans as a whole would be better off with lower food prices, but a small handful of Americans is much better off with higher prices secured by the policies supported by Rubio and other like-minded politicians. Americans as a whole are much better off when markets are allowed to allocate resources efficiently, but there is a vast and politically significant archipelago of communities that would prefer that certain inefficiencies be preserved, because their livings are tied to those inefficiencies and their communities have been built atop them. Detroit in 1960 was on top of the world — it was the highest-income city in the United States. Detroit would have been very comfortable if it could have been frozen in time, economically, in that moment. And a very wide array of politicians and activists, from local union leaders to President Ronald Reagan, took extraordinary steps to try to preserve the position of the U.S. automotive industry, with the disastrous consequences that you can see in front of you in Detroit today.

The things that gave Detroit its critical advantages in the early 20th century were not things that could be planned out in advance by super-intelligent philosopher-kings in the bureaucracies. Creating a marine-engine industry that would help to prepare the workforce for an automotive industry that would not exist until decades in the future is not the kind of plan that mere mortals can conceptualize or execute. If you had tried to explain to the best and most forward-looking thinkers of Detroit’s golden years that China and India would soon enough be significant high-tech competitors, they would have laughed at you. Also, if you’d told them that one of the biggest and most valuable U.S. companies in 2019 would be an electronic bulletin board where you can go to denounce your aunt as a hate-monger, they would have been perplexed, as, indeed, some of us are. Remember that many of the best minds of the time believed that the automobile would be a passing fad.

Conservatives like to laugh at Paul Krugman, revisiting his long-ago prediction that the Internet would prove no more economically significant than the fax machine, but nobody is really very good at predicting the future of economic developments at any meaningful level of detail. Go spend some time around private-equity investors and see how they come by their billions: They are smart, but they are not superhuman, and they do not have any special insight into long-term economic trends — they do a tremendous amount of grunt-work discovering and creating value in ordinary companies and complex deals, inch-worming their way through. That’s how a lot of wealth gets built. That’s the real world. And Senator Rubio scoffs at it as fiddling with “financial flows detached from real production,” as though factories just built themselves.

. . .

You couldn’t have planned Detroit’s success. But you could have avoided its catastrophic failure. Detroit was not done in by lack of clever industrial policy or by shortage of some other species of cleverness. It was done in by corrupt and ineffective government and a local political culture that went from bad to worse to much worse to Coleman Young. They tried to save Detroit with tariffs and failed. They could have saved it with safe streets and functional schools and the hundred thousand other tiny needful things that good governments do well.

Good government — including a steady, stable, predictable policy environment — multiplies the value of labor, just as training and capital do. That is why investment capital around the world for years has flowed largely to well-governed countries, most of them liberal democracies, with the largest recipients of foreign direct investment being the United States and the European Union. (China, the important exception to that rule, is not well-governed; it is governed brutally but predictably, an ugly but useful reminder that stability has economic value, too.) There are many places that businesses could go in search of low wages and a loose regulatory environment, but you aren’t driving a car made in Haiti or using a computer built in Burundi. Investors aren’t putting a lot of money into factories in Yemen or Afghanistan.

. . .

The U.S. government is in many cases a force for instability and non-confidence in our national economic life. Peter Navarro’s position as Trump’s China hand is as ridiculously implausible as Hunter Biden’s role on the board of Burisma, but there he is, whispering into the president’s ear. Senator Rubio is no less implausible in his belief that he has eagle eyes to detect subtle national interests in complex economic affairs of which he has no substantial first-hand knowledge. His problem isn’t stupidity — it’s hubris.

A nation as rich as ours can afford a great deal of stupidity, but hubris is expensive.

Senator Rubio represents a government that has shown little competence in the small and ordinary things. It cannot even manage to follow its own ordinary processes for creating budgets or appropriating funds, instead lurching from season to season with a series of “emergency” measures in a state of never-ending crisis. You might think that that would be the cause of some modesty and circumspection in Washington. You would be wrong.

Rather than monkeying around with things that are beyond his ken and outside of the credible operating capacity of the U.S. government, Senator Rubio should be seeing to some of the things that might actually make a difference. The U.S. government is on a catastrophic fiscal course that will, without reform, eventually result in a ruinous debt crisis the likes of which the world has never seen. (We’ve seen fiscal crises in Canada and Argentina, but the U.S. economy represents nearly a quarter of the world’s economic output.) We have entitlement programs that are in need of reform, decaying and archaic infrastructure under federal purview, serious K–12 educational problems entangled with federal policy, a tax code in great need of simplification, a series of worldwide military engagements that have failed or are on the verge of failing, enormous deficits, an out-of-control presidency and administrative state, etc., all of it under the responsibility of a federal apparatus that cannot even produce an accurate count of how many programs it administers. Senator Rubio and his colleagues are like fast-food workers who haven’t yet mastered the drive-thru but demand a seat on the board of the company: They are not doing a very good job with the responsibilities they already have.

And many of those are responsibilities that cannot be taken on by anybody else: If the United States is to have an immigration system characterized by intelligence and decency, or a federal criminal-justice system characterized by justice, then the federal government is the instrument that is going to bring that about. These tasks cannot be delegated to the Chamber of Commerce or the Rotary Club. But rather than see to these, and other authentic federal responsibilities, Senator Rubio would spend his days micromanaging the world’s mining markets lest the sneaky Chi-Comms hoard all the ytterbium.

(Seriously.)

What was true for Detroit is true for the United States as a whole. The first step toward success in government is avoiding failure, and what emerges from the complicated story of Detroit’s success and the relatively simple story of its failure is not that government must master economic complexity and put it in harness but rather that government must do a lot of relatively simple things well. Detroit did not need a Thomas Jefferson or a Mohandas Gandhi or another great political philosopher with a world-changing idea — it needed someone to fix the potholes, balance the books, keep order on the streets, see to the schools, and keep the city agencies orderly and honest and effective. Without that, all of Detroit’s productive capital — physical, financial, and human — was devalued and ultimately dispersed.

Detroit’s fall happened hard and fast. As the poet said, Goin’ down slow ain’t the only way to go. Deride “financial flows detached from real production” all you like, but if you want workers to have jobs, then you need enterprises to employ them. If you want enterprises to employ them, then you need investment. And if you want investment, then you need good government and a stable, predictable policy environment, not Senator Rubio freelancing around the economy like a kid trying to play chess without even knowing how the horsey-thingies move.
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The U.S. economy is a vastly complex system with countless variables. Here’s a puzzle with only three variables: 1. There are about 5.7 million unemployed people in the United States right now. 2. We have thousands and thousands of jobs going unfilled because employers cannot find workers to fill them. 3. We spend about $10 billion a week on unemployment benefits.

Sort that out and the ytterbium will take care of itself.

You Didn’t Build That, by Kevin Williamson

Statolatry, Ozymandias

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AMAZON, den of thieves

AMAZON, den of thieves

Many alternatives to Amazon, including BandH Photo, WalMart, Sam’s Club, Costco, Home Depot, Lowes, HayNeedle, WayFair, Etsy, Your local hardware store, etc., etc. Use product name, SKU, ISBN, model number to search for alternatives.

amazon scammers – Google search

Amazon hit by extensive fraud with hackers siphoning merchant funds,” by Bloomberg, The Mercury News, May 8, 2019

When Your Amazon Purchase Explodes,” by Alana Semuels, The Atlantic, April 30, 2019

5-star phonies: Inside the fake Amazon review complex,” by Zachary Crockett, The Hustle, April 13, 2019

Don’t Just ‘Buy Now’! When Shopping on Amazon, You Need to Pay Attention,” by Katherine Bindley, The Wall Street Journal, March 26, 2019

What is Amazon?,” by Zack Kanter, March 13, 2019

Amazon Lobbied More Government Entities Than Any Other Public U.S. Company Last Year,” by Renae Reints, Fortune, March 13, 2019

Where does a tip to an Amazon driver go? In some cases, toward the driver’s base pay,” by Johana Bhuiyan, LA Times, Feb. 7, 2019

Amazon has finally admitted to investors that it has a counterfeit problem,” by Marc Bain, Quartz, February 5, 2019

How to Lose Tens of Thousands of Dollars on Amazon,” by Alana Semuels, The Atlantic, Jan. 2, 2019

Is It Really Five Stars? How to Spot Fake Amazon Reviews,” by Joanna Stern, WSJ, Dec. 20, 2018

Amazon Prime is getting worse, and it’s making me question the nature of reality,” by Mark Wilson, FastCompany, Dec. 19, 2018

Prime and Punishment: Dirty Dealing in the $175 Billion Amazon Marketplace,” by Josh Dzieza, The Verge, Dec. 19, 2018

Amazon Announces 2019 Fee Changes for Sellers,” by Ina Steiner, eCommerce Bytes, December 19, 2018

VIDEO: “How Scammers in China Manipulate Amazon,” by Jon Emont, WSJ, December 17, 2018

Amazon Targets Unprofitable Items, With a Sharper Focus on the Bottom Line,” by By Laura Stevens, Sharon Terlep and Annie Gasparro, WSJ, December 16, 2018

Amazon ran a sting to root out counterfeit textbooks, but some small sellers say they were unfairly targeted,” by Ari Levy, CNBC, December 13, 2018

An Amazon revolt could be brewing as the tech giant exerts more control over brands,” by Jason Del Rey, ReCode, November 29, 2018

New Parents Complain Amazon Baby-Registry Ads Are Deceptive,” by By Rolfe Winkler and Laura Stevens, WSJ, Nov. 28, 2018

The Caesar Of The Amazon Jungle,” by Rod Dreher, TAC, November 15, 2018

Amazon’s Golden Fleecing,” by The WSJ Editorial Board, Nov. 14, 2018

Amazon’s Great HQ2 Swindle,” by Daniel Kishi, TAC, November 13, 2018

Amazon’s HQ2 was a con, not a contest,” by Eric Johnson, ReCode, November 9, 2018

Amazon’s own published books are quietly taking over the site,” by Thu-Huong Ha, Quartz, October 26, 2018

Amazon Investigates Employees Leaking Data for Bribes – Employees, through intermediaries, are offering internal data to help merchants increase their sales on the website, WSJ, September 16, 2018

Amazon is investigating claims that employees deleted reviews and sold sales data to sellers, by Andrew Liptak, The Verge, September 16, 2018

Markets in everything, Marginal Revolution, September 17, 2018

Amazon’s Antitrust Antagonist Has a Breakthrough Idea,” by David Streitfeld, NYT, September 7, 2018

Amazon wants a key to your house. I did it. I regretted it. – Duluth News, Dec. 17, 2017

Amazon demonetizes conservative website (us), Legal Insurrection, May 23, 2018

IBPA’s Fall 2017 Update on the Amazon Buy Button Policy ChangeIBPA, Oct. 5, 2017

How Sellers Trick Amazon to Boost Sales, WSJ July 28, 2018 (On MorningStar)

On Amazon, Fake Products Plague Smaller Brands, WSJ, July 19, 2018

To cash in on Kindle Unlimited, a cabal of authors gamed Amazon’s algorithm, July 16, 2018, The Verge

Just How Bad Is the Fake Reviews Issue on Amazon? Here’s an In Depth Example, reddit, June 2018

FakeSpot – Tired of fake reviews?

Amazon Says More Than a Million U.S. Small Businesses Sell on Its Site, WSJ, May 3, 2018

Update On My Stolen Book (and Job) on Amazon, ExtremeTech, April 25, 2018

Why All My Books Are Now Free (aka A Lesson in Amazon Scams and Money Laundering), Meb Faber Research, April 18, 2018

Someone Stole My Entire Book (and My Job) and Is Selling It On Amazon, ExtremeTech, April 13, 2018

The Book Thief, Amazon Edition, WSJ, Feb 26, 2018

How an Amazon Self-Published Book May Be the Latest Money Laundering Scam, Fortune, Feb 23, 2018

Amazon warning: Beware of deliveries you didn’t order, Clark Howard, Feb 23, 2018

Going Off-Topic – Amazon made me a victim of tax fraud & potential money laundering and I want answers!, CTRMCenter, Feb. 23, 2018

Money Laundering Via Author Impersonation on Amazon? Brian Krebs, Feb. 20, 2018

Why Amazon Is Raising Third Party Seller Fees for Apparel & Select Categories,” by Tara Johnson, CPCStrategy, January 23, 2018

Amazon tries to snuff out a bunch of Kindle publishing scams, CNet, Sept. 7, 2017

Amazon Scams On The Rise As Fraudulent Sellers Run Amok And Profit Big, Forbes, Jan. 2, 2017

Amazon – Amazon report listing abuse or violation

Amazon- Claim Copyright Infringement

email: copyright@amazon.com

Amazon den of thieves

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Venezuela IS Socialism

 



Stossel: Venezuela IS Socialism

 

As Venezuela collapses, many people say, “don’t blame socialism.”

“Blaming socialism for Venezuela’s riches to rags story is grossly misleading,” an Al Jazeera reporter claims.

John Oliver claims: “If you follow conservative media at all you might have seen it frequently painted as the inevitable dire consequences of a socialist government.” Oliver blames it instead on “epic mismanagement.”

But John Stossel says: “Mismanagement is what happens under socialist governments. It always happens, because no group of central planners is wise enough to manage an entire economy. Even if they have good intentions, the socialists eventually run out of other people’s money.”

In Venezuela, when their socialist government ran out of money, they just printed more. When business owners raised prices to keep up with inflation, the government often took away their businesses.

Yet celebrities praised Hugo Chavez, who started Venezuela’s socialism. Model Naomi Campbell visited Chavez, calling him “a rebel angel.”

Venezuela Is Socialism: New at Reason

Statolatry and thugocracy

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The Clerisy and the Kakistocracy and the Administrative State

If anything, both Left and Right have developed a newly intense resentment of the way in which purely private actors can exercise tremendous influence over their lives: corporate mergers and restructurings take away jobs and upend the economic situation of communities dependent on them; Facebook and Twitter endeavor to silence unpopular political views, or else are used as vehicles for ochlocratic attacks on hapless Starbucks staffers and Chipotle managers; in 2008–09, the world economy was convulsed by the fact that a great many Wall Street firms made bad investments that they did not quite even understand, necessitating trillions of dollars in bailouts and “quantitative easing” to stave off economic disaster. It is easier for a man to walk away from his wife and children than from his credit-card debt or student loans. Nobody seems to really know what his health insurance will cover — or what it will cover the day after tomorrow. A third of the teachers participating in a grant program found themselves saddled with loans — loans they had never signed up for, sometimes amounting to tens of thousands of dollars —because of paperwork issues. Innocent men and women are wrongly prosecuted and end up financially ruined even when they escape jail, and even as prosecutors boldly boast about abusing their powers.

The burden of these developments always seems to fall on those who do not have much money or power. You miss filing a 1040EZ one year and you’ll get your bank account hijacked by the IRS; Lois Lerner hijacks the entire IRS for a political project and she ends up with pension that’s twice what most American households earn in a year. Corporate executives flit from one gilt perch to the next, politicians flout both law and morality without real consequence, and their cronies and minions rarely miss a paycheck. Meanwhile, the New York Times is full of advertisements for Rolex and Cartier, Tiffany and Zegna — and stories about how nobody can really be expected to get by on $200,000 a year.

In Francis Fukuyama’s magisterial Origins of Political Order, he specifies three things that undergird the development of political development: the state, the rule of law, and accountability. The first we have plenty of — more of than we need, really. The other two . . . less so. Irrespective of how you feel about the current legal efforts being made against President Trump, it is impossible for any intelligent person to look at the situation and conclude that anybody — anybody — involved in this mess is simply working to apply the law rather than conducting a political jihad or counter-jihad through legal means — lawfare, as they call it. The rule of law took a beating during the Obama administration, and the chaos of the Trump administration does not seem likely to contribute much to its recuperation.

Who’s in Charge Here?

Crony capitalism and statolatry all the way down.

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AMAZON, den of thieves

amazon scammers – Google search

Amazon’s Antitrust Antagonist Has a Breakthrough Idea,” by David Streitfeld, NYT, September 7, 2018

Amazon wants a key to your house. I did it. I regretted it. – Duluth News, Dec. 17, 2017

Amazon demonetizes conservative website (us), Legal Insurrection, May 23, 2018

IBPA’s Fall 2017 Update on the Amazon Buy Button Policy ChangeIBPA, Oct. 5, 2017

How One Pillow Manufacturer Is Putting Amazon Fraudsters to Bed, One Scammer at a Time

Just How Bad Is the Fake Reviews Issue on Amazon? Here’s an In Depth Example, reddit, June 2018

FakeSpot – Tired of fake reviews?

How Sellers Trick Amazon to Boost Sales, WSJ July 28, 2018 (On MorningStar)

Money Laundering Via Author Impersonation on Amazon? Brian Krebs, Feb. 20, 2018

The Book Thief, Amazon Edition, WSJ, Feb 26, 2018

On Amazon, Fake Products Plague Smaller Brands, WSJ, July 19, 2018

Amazon Says More Than a Million U.S. Small Businesses Sell on Its Site, WSJ, May 3, 2018

Couple at Center of $1.2 Million Amazon Scam Gets Nearly 6 Years in Prison, June 5, 2018

How an Amazon Self-Published Book May Be the Latest Money Laundering Scam, Fortune, Feb 23, 2018

Amazon Scams On The Rise As Fraudulent Sellers Run Amok And Profit Big, Forbes, Jan. 2, 2017

Amazon tries to snuff out a bunch of Kindle publishing scams, CNet, Sept. 7, 2017

Going Off-Topic – Amazon made me a victim of tax fraud & potential money laundering and I want answers!, CTRMCenter, Feb. 23, 2018

Why All My Books Are Now Free (aka A Lesson in Amazon Scams and Money Laundering), Meb Faber Research, April 18, 2018

Someone Stole My Entire Book (and My Job) and Is Selling It On Amazon, ExtremeTech, April 13, 2018

Update On My Stolen Book (and Job) on Amazon, ExtremeTech, April 25, 2018

Amazon warning: Beware of deliveries you didn’t order, Clark Howard, Feb 23, 2018

To cash in on Kindle Unlimited, a cabal of authors gamed Amazon’s algorithm, July 16, 2018,

Amazon – Amazon report listing abuse or violation

Amazon- Claim Copyright Infringement

email: copyright@amazon.com

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Enforcing the Law Is Inherently Violent

Yep.

Yale law professor Stephen L. Carter believes that the United States would benefit if the debate about what laws ought to be passed acknowledged the violence inherent in enforcing them.

Enforcing the Law Is Inherently Violent

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Crooked Timber


The Death of Stalin

If you believe that H. sap. is only time’s favorite monkey — that man is meat — then there’s a perfectly reasonable explanation for the kind of behavior we’re talking about, and no need to justify it, since there is nobody to justify it to. If you believe that man ought to be better, it implies that he can be better, and that “better” means something. And here materialism fails us, which is why Marxism became an ersatz religion. Christianity is a fortunate religion in the sense that the endless moral failings of its leaders (and followers) keeps illustrating, generation after generation, the fundamental facts of the creed. The creeds based on human perfectibility, which is the romantic notion at the heart of all utopian thinking, have as their main problem the countervailing example of everybody you’ve ever met and ever will.

It is tempting to make like the Pharisee rather than the publican and say: “God, I thank you that I am not like the rest of men, extortioners, unrighteous, adulterers, or even like this tax collector.” It is unpleasant to meditate on the truth at the center of Christianity, and perhaps at the center of all wisdom: I am like the rest of men, extortioners, unrighteous. (I have never been guilty of collecting taxes.) We must sympathize with the victims and care for them, but we must also identify with the malefactors, who are made of the same stuff as we are, cut from the same crooked timber.

Stalin at the Movies

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Politicians love spending other people’s money and seeing themselves as heroes


P.J. O’Rourke: The Funniest Man in America

Friends, our governments are broke. We’ve made more promises than we can keep. Neighborhoods are falling apart, even in cities experiencing robust growth, and that’s only going to get worse. It’s the epitome of reckless arrogance for any planner (note: I’m a planner) to project increases in future demand as a way to justify large, public transportation investments when our existing systems are starved for funds, even for their own basic maintenance.

Fix what you have. Make it work incrementally better each day. Squeeze more and more productivity out of your ridiculously unproductive city. That needs to be our obsession, and transit can be part of that, but not the tip of the spear. And certainly not the tip of a ballistic missile.

TRANSIT’S CHICKEN & EGG FALLACY

Also seeBribing People to Move to Your City

“It is terrible to contemplate how few politicians are hanged.” G.K. Chesterton

“Politics is unalloyed idiocy” Don Boudreaux

“The urge to save humanity is almost always a false front for the urge to rule.” H. L. Mencken

“The whole point of a free society is to reduce the number of things that are political, particularly at the national level. When everything is considered political, the totality of life is politicized. And that’s just a clunky way of describing totalitarianism.” Jonah Goldberg

“I respect ordinary thieves much more than I respect politicians.” Walter Williams

“The worst evils which mankind has ever had to endure were inflicted by bad governments.” Ludwig von Mises

Statolatry and Ozymandias

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High School and College Admissions and DECA

One thing that jumps out of the IHE article is that this proposal is a creature of elite prep schools. Most American high schools have, at most, a handful of students who are realistically competitive at elite universities, but elite prep schools aspire to place a substantial fraction of their students there. Alas, that college admissions offices expect to see grades puts elite high schools in the embarrassing situation of implicitly comparing their students to one another.

. . .

From 1898 to 1919, Harvard, Yale, and Princeton opened up their admissions requirements by adopting the College Entrance Exam Board and abandoning a Greek-language requirement. These reforms made admission more open to non-elite boys, who as a rule were unable to take the schools’ proprietary entrance exams and attended high schools that did not offer Greek. As a result, the Ivies saw a sizable increase in Jewish students, and Columbia even experienced WASP flight, which its peers dreaded. Although Harvard discussed an explicit Jewish quota in 1922, this proved unpalatable, and so between 1922 and 1926 the big three Ivies adopted admissions boards that gave a heavy emphasis to qualitative evidence of “character” (read: WASP culture emphasizing muscular Christianity, club membership, and athletics over book learning) as a pretext to limit Jews.

Decades later, the University of California system, within which both Karabel and I are sociologists, adopted a similar policy to ensure racial balance. Traditionally, about half of the UC class was admitted by a GPA and SAT formula. The beginning of the end of this policy came in 1995 and 1996, when a Board of Regents vote and ballot initiative barred the use of affirmative action at the University of California, without which the flagship campuses of the university admitted notably fewer blacks and Latinos and notably more Asians and “decline to state” as freshmen. (White students were stable.) In response, between 1998 and 2001, the university switched to a system of comprehensive review greatly emphasizing qualitative evidence of character, and this had the desired effect of bringing the undergraduate body a bit closer to the state’s overall ethnic composition.

Basing college admission on well-roundedness and character is both noisy and cumbersome. Anyone who regularly writes letters of recommendation knows that they consume an enormous amount of time to write, and anyone who regularly reads them knows that they typically convey minimal actual information, largely because by convention they are almost never negative. Admissions essays at the undergraduate level are even worse, serving primarily to demonstrate the insatiability of credulous admissions officers for bromides.

However, the time consumed by writing and reading the materials in the admissions packet is dwarfed by the effort that goes into shaping lives to fit them. One of the biggest impacts of the demand for well-roundedness is that making a well-rounded child is an enormous drain of time for families. Garey and Valerie Ramey’s NBER/Brookings paper “The Rug Rat Race” (72-page PDF) suggests that our culture of intensive parenting is driven by competition for college admissions. They find a pronounced rise in time spent on child rearing since the mid 1990s concentrated among college-educated parents. Tellingly, the pattern does not hold in Canada, which has a less hierarchical college system. Nor does the pattern apply to underrepresented minorities, whom colleges already seek and who experience diminishing marginal returns to résumé-polishing. To treat time spent raising kids as a problem sounds heartless, but when the increased time consists of chauffeuring kids from activity to activity or “helping” them with projects, this is a brutal war of attrition against rivals to the meritocratic elite, not quality family time. In the long run, this may lead not only to endless stress for parents and kids alike, but also to lower fertility, since if you make something more costly, you get less of it.

The sick irony is that giving great weight to well-roundedness and character is seen as egalitarian. Test prep serves the role of Satan in the theodicy of meritocracy, a ready explanation for the association between test scores and social class of origin. What this myth overlooks is that most scholarly studies of test prep estimate that it raises SAT scores by a piddling couple dozen points out of 1600. Nonetheless, our suspicion of the SAT’s well-known association with household income provides an egalitarian rationale for the regressive turn to all variety of precocious “achievement” as the basis of college admissions, as if test scores could be bought but résumé-padding could not.

. . .

If you want a vision of the future, imagine a plutocratic elite preening to college admissions officers about how sophisticated and nuanced it is, forever.

Elite High Schools Plot to Undermine College Admissions

For an alternative, see DECA:

– “Owning Their Future: The Joy of DECA, Part I

– “Inspiration in a Blue Blazer: The Joy of DECA, Part II

It is interesting to observe the moral preening among parents as they attempt to get their children into the “best” schools.

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A NY Example of DC Corruption and Cronyism

You sometimes hear of a Congressman who raises more money from New York state, or from the D.C. region than he raises from his home state, reflecting perhaps that he’s out of touch with the place he’s supposed to represent.

Congressman Chris Collins (R-NY), though, represents a district in the Empire State, which makes it more amazing that he’s raised more money so far this cycle from D.C., Maryland, and Virginia than he has raised from New York.

. . .

Collins’ ties to the drug industry are a lot more intimate than that, though. He is a very wealthy businessman (subsidies from the Export-Import Bank have helped), and recently his net worth got a boost thanks to a pharmaceutical stock in his portfolio, in an episode that highlights Collins’ tendency to blend policymaking, fundraising, and investing.

Collins is the No. 1 shareholder in Innate Immunotherapeutics, an Australian drugmaker. The Daily Beast reported that Collins has been close to the company since 2005 and joined the board in 2006.

Collins also played a major role in shaping the 21st Century Cures Act. According to various news reports, Collins inserted a provision into the late-2016 legislation that allowed a fast-track approval process for investigational drugs. This provision boosted Innate’s stock by helping bring Innate’s sole product, a Multiple Sclerosis drug called MIS416, to market more quickly.

Collins just happened to have bought up about a million dollars in Innate stock in August 2016, as the 21st Century Cures Act wended its way through Congress. This purchase was part of a special stock offering — a VIP opportunity into which Collins brought some friends. “Sixteen people with close ties to Collins bought Innate shares at discounted prices of $0.18 or $0.26 cents per share,” the Daily Beast reported in April. “Those investors have given nearly $42,000 to Collins’s political campaigns over the years, a review of campaign finance records found.”

This brings us back to his donor list.

. . .

Collins’ friends who bought discounted stock in 2016 would have paid around 25 or 34 cents per share, according to the New York Times. Shortly after the bill became law, the price skyrocketed, eventually to $1.77 per share in January. Shortly before that peak is when reporters overheard Collins talking on the phone saying, “Do you know how many millionaires I’ve made in Buffalo the past few months?”

Being a donor or friend of Chris Collins pays off.

Chris Collins, self-proclaimed millionaire-maker, wades into another drug lobby fight

Revolving Door Tax, Crony Capitalism, Ozymandias

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