Posts tagged ‘boomtown’

Washington, DC, Boomtown!

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Beltway Shakedown

Welcome to the buckraking phase of the Obama era. If the campaign was about hope, and the early presidency was about change, increasingly the administration has settled into a kind of normalcy in which it accommodates itself to Washington far more than Washington accommodates itself to Obama. That’s not necessarily a bad thing when the result is a bipartisan schmooze-fest at the Jefferson Hotel. But when it comes to the D.C. custom of trading a White House security clearance for a private-sector sinecure, there’s a lot to be said for not going native so easily.

Within Obamaworld, there are a few unwritten rules about how to parlay one’s experience into a handsome payday. There is, for example, a loose taboo against joining a K Street lobbying shop and explicitly trading on administration connections. And while joining a consulting firm is acceptable, those who do are reluctant to work for clients reviled by liberals: gun makers, tobacco companies, Big Oil, union busters. Above all, there is a simple prohibition against excessive tackiness.

Get Rich or Deny Trying How to make millions off Obama

Avoiding tackiness is a big virtue. Hope and change! Forward!

Washington’s `revolving door’ – the movement from government service into the lobbying industry- is regarded as a major concern for policy-making. We study how ex-government staffers benefit from the personal connections acquired during their public service. Lobbyists with experience in the office of a US Senator suffer a 24% drop in generated revenue when that Senator leaves office. The effect is immediate, discontinuous around the exit period and long-lasting. Consistent with the notion that lobbyists sell access to powerful politicians, the drop in revenue is increasing in the seniority of and committee assignments power held by the exiting politician.

Revolving Door Lobbyists,” by Jordi Blanes i Vidal, Mirko Draca, and Christian Fons-Rosen, CEP Discussion Paper No 993, August 2010 (61-page PDFPDF)

An investigation by Sen. Carl Levin and a grilling of Apple CEO Tim Cook on Tuesday by the Senate’s Permanent Subcommittee on Investigations were ostensibly about Apple’s low tax bill. But nobody accused Apple of breaking the law. The company moved money around to minimize the tax it owed and then paid the amount the law required. Apple didn’t write the tax law or even lobby very hard to shape it.

And that’s just the problem. The grilling of Apple is best understood as a shakedown by politicians upset with Apple for not playing the Washington game that yields contributions, power, and personal wealth for congressmen and their aides.

Apple doesn’t have a political action committee to fund incumbents’ re-elections. Apple doesn’t hire many congressional staff or any former congressmen as lobbyists. Apple mostly minds its own business — and how does that help the political class?

The Beltway Shakedown is an old game. Microsoft may be its most famous victim. In the 1990s, while the Federal Trade Commission investigated the software giant for supposed antitrust violations, the Senate Judiciary Committee, run by Republican Orrin Hatch of Utah, held hearings to beat up CEO Bill Gate

Apple becomes latest target of the Beltway Shakedown

How does Apple respond?

Apple CEO Tim Cook announced at a tech conference yesterday [May 28, 2013] that it was hiring President Obama’s EPA director, Lisa Jackson, as a VP for environmental initiatives.

Obama Revolving Door: Former EPA head Lisa Jackson to Apple

The Beltway Shakedown is a bipartisan game. That’s one reason we need a Revolving Door Tax (RDT).

Ozymandias

Unfortunately, it seems that the future Aldous Huxley predicted in 1932, in Brave New World, is arriving early. Mockery, truculence, and minimalist living are best, then enjoy the decline. However, we do need a Revolving Door Tax (RDT), learn what Members of Congress pay in taxes, and prosecute politicians and staff and their “family and friends” who profit from insider trading.

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The DC Bubble (DC is Boomtown)

Eighteen Starbucks shops can be found in the three-mile walk from DuPont Circle to the U.S. Capitol. Not one of them had a line less than seven people deep on a recent Wednesday afternoon.

Twenty-one construction sites filled with workers on girders and cranes towering over whole city blocks can be found on the same walk.

Commerce bursts from every angle of this city: small businesses packed with shoppers, hair salons charging more than the monthly mortgage payment on my first house for a cut-and-blow-dry, and main as well as side streets clogged with traffic.

America’s capital seems bubble-wrapped in its own vibrant economic boom, while great chunks of the nation struggle with uncertainty about how to keep the engine going.
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The centralized power and wealth in our nation’s capital are becoming so disconnected from the rest of this country that it is palpable to everyone except those who live in Washington.

In most people’s lives, the driving issue is economic security. Washington’s obsession is with social and cultural issues that drive bigger wedges between Us and Them.

It’s only a matter of time before the rest of America’s complaints will burst Washington’s bubble.

When Will America Burst D.C.’s Bubble?

It used to seem shocking that five of the ten richest counties in the United States were part of the DC Metropolitan Statistical Area, but the 2011 American Community Survey numbers released yesterday show that the DC suburbs now account for seven of the ten richest counties in America.

Loudon, Fairfax, and Arlington in Virginia lead the way followed by Hunterdon County, NJ then Howard County in Maryland; Somerset, NJ; Prince William and Fauquier in Virginia; Douglas, CO; and Montgomery County, MD.

DC Suburbs Now Contain 7 Of America’s 10 Richest Counties

Ozymandias

Unfortunately, it seems that the future Aldous Huxley predicted in 1932, in Brave New World, is arriving early. Mockery, truculence, and minimalist living are best, then enjoy the decline. However, we do need a Revolving Door Tax (RDT), learn what Members of Congress pay in taxes, and prosecute politicians and staff and their “family and friends” who profit from insider trading.

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Washington, DC = Boomtown

Fireworks by PES

Now on to the place where tribute is brought!

Why Laughter Is the Best Medicine for Politics:

When the Obama administration launched the We the People petition initiative—which lets anyone start a petition on the White House website—it set the response threshold at 5,000 signatures. In the digital era you can collect that many signatures for a petition to make navel lint the official textile fiber of the United States. So the White House bumped up the threshold to 25,000. Turns out that’s a pretty easy bar to clear, too. Just look at the Death Star petition.
Continue reading ‘Washington, DC = Boomtown’ »

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New York City’s Future?

It is the new aristocracy; landing a job with the state is like hitting the lottery. Californians have discovered that, in today’s low/non-interest economy, a $70,000 salary with defined benefit public pension for life is far better than having the income from a lifetime savings of $3 million.

Or, look at it another way: with passbooks paying 0.5-1%, the successful private accountant or lawyer could put away $10,000 a month for thirty years of his productive career and still not match the monthly retirement income of the Caltrans worker who quit at 60 with modest contributions to PERS.
. . .
There are thousands of drivers without licenses, insurance, registration, and elementary knowledge of road courtesy. Half of all accidents in Los Angeles are hit-and-runs.


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Coastal folk seem to view high taxes like Mafia protection money, but in the sense of psychological satisfaction and freedom from guilt. For now, sales, gas, and income taxes are not so high as to matter to those who voted for them, at least in view of the social and political advantages of coastal living: the beautiful weather, the Pacific panorama, the hip culture of recreational light drug use, neat restaurants, sports, fine wines, solar and wind romance, foreign cars, and general repugnance at religion, guns, conservatives, and traditional anything.


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One of the questions I always hear from strangers: “Why doesn’t everyone leave?” The answer is simple: for the coastal overdogs there is nowhere else where the money is as good and the weather and scenery are as enjoyable. How much would you pay to walk in cut-offs in February and not in three jackets in Montana? And for the interior underclass, California’s entitlements and poor-paying service jobs are paradise compared to Honduras, Jalisco, or Southeast Asia. And, yes, the middle-class small farmers, hardware-store owners, company retirees, and electricians are leaving in droves.


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How then does the California coalition work, and in some sense work so well?

The coastal elite offers an agenda for more welfare funding, scholarships, class warfare, public unions, diversity, affirmative action, open borders, and amnesty, and in response the interior voter signs off on everything from gay marriage, solar and wind subsidies, gun restrictions, mass transit schemes, and the entire progressive tax-and-spend agenda. Most of this coalition never much sees one another.

The young Mountain View programmer keeps clear of Woodlake. He even has only a vague idea of what life is like for those who live in nearby Redwood City and make his arugula salad at the hip pasta bar in Palo Alto. In turn, the Redwood City dishwasher has an equally murky sense that the wealthy kid who works at Google does not wish to deport his uncle — and so the two become unspoken political partners of sorts. One of the state’s wealthiest cities, a gated Atherton, is juxtaposed to one of its most Latinate communities, Redwood City. But they might as well be Mercury and Pluto. Or should we applaud that the owner of the manor and his grass cutter vote identically — and against the interests of the guy who sold and serviced the Honda lawn mower?

In the flesh, the energetic people I associate with during the week in Silicon Valley and see on the Stanford campus and on University Avenue are, it must be said, innovative folk, but soft apartheidists: where they live, where their kids go to schools, where they eat, and whom they associate with are governed by a class, and de facto racial, sensibility that would make Afrikaners of old proud.

The liberal aristocracy is as class-bound as the old Republican blue-stockings, but saved from populist ostracism by what I have called the “hip” exemption — liberalism’s new veneer that allows one to be both consumer and critic of the Westernized good life, to praise the people and to stay as far away from them as possible. Mitt Romney is an outsourcer; Google’s offshore holdings are cool.

California at Twilight, Victor Davis Hanson


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Ozymandias

Mockery and minimalist living are best, then enjoy the decline.

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