Someone Tell MPR

Non-profits shield scads of income from the IRS through “unrelated business activities”:

The Chronicle of Philanthropy reviewed the Form 990s for 91 nonprofit organizations — including Columbia, Emory, Harvard, Indiana, Johns Hopkins, MIT, Minnesota, Penn, Stanford, UC-Berkeley, USC, and Yale — and found that the organizations reported $412.9 million of income from unrelated business activities, but 46 (51%) reported zero tax liabilities:

The finding does not mean that the nonprofit organizations have run afoul of tax laws. In fact, legal experts say charities are merely following federal tax laws on the books for years that allow them to shield much of their income from tax through exemptions that Congress has built into the tax code and to take myriad expenses as deductions for operating expenses. …

This was (and, presumably, still is) Minnesota Public Radio’s big dodge for the past decade and a half; spin off companies like “Rivertown Trading” (a catalog knick-knack sales operation that moved everything from Lake Wobegone memorabilia to snarky sweatshirts) and others.  It made vats full of money, while MPR begged and pleaded both on the air and at the various capitols for more.

Where Have We Seen This Before?

The last time we saw Hillary! Clinton talking like this…:

Senator Hillary Rodham Clinton said that if she became president, the federal government would take a more active role in the economy to address what she called the excesses of the market and of the Bush administration.

… it led us directly to the Gingrich Revolt of ’94.

Mrs. Clinton laid out a view of economic policy that differed in some ways from that of her husband, Bill Clinton. Mr. Clinton campaigned on his centrist views, and as president, he championed deficit reduction and trade agreements.

Reflecting what her aides said were very different conditions today, Mrs. Clinton put her emphasis on issues like inequality and the role of institutions like government, rather than market forces, in addressing them.

File under “Silver Linings” should Hillary!’s pact with the Dark Lord pay off with a presidency.

All The Wrong…Solutions?

King Banaian may blanche, but I suggest that 99% of economics is political.

And it doesn’t take a rocket scientist to see that that’s what’s behind the administration’s “Fiscal Stimulus” package aimed at jump-starting growth:

Bush planned to lay out his position Friday, but he wasn’t expected to go into specifics. Press secretary Dana Perino said Bush would demand that any package be effective, simple and temporary _ mirroring calls by Democratic lawmakers for a “timely, targeted and temporary” stimulus measure.

Well, it’s not really an echo; when Tics say “targeted”, it means “targeted at their constituents”. And if I were a Tic, I’d be just a little insulted.

But more on that later.

Taxpayers could receive rebates of up to $800 for individuals and $1,600 for married couples under a White House plan. Although lawmakers were considering smaller rebate checks and more money for food stamp recipients and the unemployed, Bush told congressional leaders that he favors income tax rebates for people and tax breaks for business investment.

In other words; Republicans favor handing out sandbags to fight the flood; Tics want to give out Handi-wipes to people who are in water up to the waist.

Naturally, due to the politics we’re stuck with, the real solution – shutting off the water – seems to be off the table.

The president did not push for a permanent extension of his 2001 and 2003 tax cuts, many of which are due to expire in 2010, officials said.

To paraphrase Stone and Parker: “Dum dum dum dum dummmm”.

Like Paul Ehrlich, But For Money

Quando quotes Megan McArdle on yet another Paul Krugman recession prediction:

Megan McArdle:

Paul Krugman is voting for doom. It’s worth keeping in mind, however, that Paul Krugman has predicted eight of the last none recessions under the Bush administration.

Like Megan, I think “a recession seems likely-ish”, but “Krugman predicts” is generally a good sign to bet the other way.

Followed by a run-down of Paul Krugman’s last eight recession predictions.

December 27, 2007: McDonalds Marketing Strategy Meeting

The following minutes were taken at a secret meeting of McDonalds’ Corporation’s corporate Strategic Marketing department.

All names are redacted to protect the innocent.

ATTENDING: [MARKETEER 1], [MARKETEER 2], [VP STRATEGIC MARKETING], [ADVERTISING DEPT 1], [VP SPECIAL ADVERTISING], [AD AGENCY REP 1], [AD AGENCY REP 2], [THE ANIMATED HEAD OF RAY KROC]

[VP STRATEGIC MARKETING]: OK, come to order! Let’s get this meeting underway. [VP SPECIAL ADVERTISING], I’d like to to turn it over to you to talk about “Project Berfunkle”

[VP SPECIAL ADVERTISING]: Thanks, thank you. As you know, as part of McDonalds’ long-term plan to win even more market share, we’ve decided as part of our long-term strategic marketing initiative that, perhaps counterintuitively, “winning mindshare” isn’t as important as helping our competition lose mindshare. Our campaign has been proceeding anon. And so I’ve brought in my assistant, [ADVERTISING REP 1], who has brought in a couple of the agency vendors involved in what may be our most successful “anti-mindshare” campaign yet. [ADVERTISING REP 1]?

[ADVERTISING DEPT 1]: Thanks. As you know, conventional advertising – the whole “draw people to your brand” – peaked out as a “means of getting people to try your brand” nearly twenty years ago. After years of intense market research, we found that launching spoofs – what used to be called “black parodies” – of our competition’s advertising is actually much more effective.

[MARKETEER 2]: Is that actually ethical?

[ADVERTISING DEPT 1]: Was bombing Dresden ethical?

[MARKETEER 2]: Hm.  Good point.  Continue.

[ADVERTISING DEPT 1]:  Thanks.  So, approximately three years ago, we started Project Berfunkle – an initiative to launch black parody advertising “on behalf of” our competition, Burger King and Wendy’s. We combined this with our innocuous, “message”-free “I’m Lovin’ It” campaign.

[MARKETEER 2]: I figured there had to be an ulterior motive for that campaign.

[VP SPECIAL ADVERTISING]: You’re right! At any rate, I’m happy to say that this strategy has come to fruition. I’ve brought in [AD AGENCY REP 1], from [COMPANY 1 REDACTED], and [AD AGENCY REP 2], from [COMPANY 2 REDACTED]. Go ahead.

[AD AGENCY REP 1]: About three years ago, our company launched a subproject of “Berfunkle”, called “Burger Knave”. We started running ads “for” Burger King, featuring “The King” as a grotesque, plastic-headed clown that appears as if from a nightmare in all sorts of surrealistic situations.

[MARKETEER 1]: We paid for those? Good G_d, those were awful!

[ADVERTISING DEPT 1]: That, of course, was the point. And it was hugely successful across nearly all demographics! Young children were frightened by the gargoyle-like, frozen-faced apparition. Middle-class adults were turned off by the forced, post-hip irony. Parents were repulsed by the implied obscenity of the “Big Huckin’ Chicken” spots…

[MARKETEER 2]: Oh, maaaaan. I had to listen to those spots like five times to make sure there wasn’t an “f”-bomb in there!

[AD AGENCY REP 1]: Precisely. In the end, every demographic except recent college liberal arts grads ended up less likely to go to Burger King – and even among that demographic, only the left-leaning ones who really, really love kitschy irony ended up actually eating there…

[MARKETEER 1]: Er, is that a good idea…?

[ADVERTISING DEPT 1]: Yes! They’re more likely to steal the food than pay for it!

[MARKETEER 2]: Ingenious!

[VP SPECIAL ADVERTISING]: Thanks, [AD AGENCY REP 1]. Now, I’d like to turn to [AD AGENCY REP 2].

[AD AGENCY REP 2]: Thank you. We covered the Wendy’s business. We got a later start, because we didn’t want to draw suspicions. Our ad campaign involves a series of incongruous archetypes, wearing the Wendy’s brand’s signature “Pippi Longstocking” wig. Market research since the campaign began running shows that over 60% of respondents thought “Wendy’s” was now a place to go to hear lesbian coffee-house poetry, or a French avant-garde art film outlet, rather than a burger joint.

[VP STRATEGIC MARKETING]: Wow.

[MARKETEER 2]: I call that “success”!

[AD AGENCY REP 2]: Thank you. Phase Two will involve images of cattle wearing the “Wendy” wig being pushed down the gates to the slaughterhouse as “Yakkity Sax” – the “Benny Hill” theme – plays on a bullhorn in the background, driven to their doom by a gaggle of “My Little Ponies”.

[VP STRATEGIC MARKETING]: Wow. Excellent!

[MARKETEER 1]: I’m speechless. Brilliant.
[VP STRATEGIC MARKETING]: So what is the next phase of Project Berfunkle?

[VP SPECIAL ADVERTISING]: In February ’08, we start the “Culvers’ Custard presents Linda Ellerbee speaking for 9/11 Truth” blitz. And in August, we roll out the White Castle “”Jughead” campaign, featuring a loveable, dope smoking NASCAR-watching androgynous 20-something high school dropout who rides a skateboard and leers at young girls as he wishes for a slider.

[ADVERTISING DEPT 1]: Excellent!

[VP SPECIAL ADVERTISING]: Well, Mr. Kroc, sir?

[THE ANIMATED HEAD OF RAY KROC]: I pronounce it good. Burgers on the house!

[ALL]: Yaaay!

And…scene.

Slavery

“Taxation is Slavery”.  It’s the old Big-L Libertarian saw. 

And, as Tracy at Anti-Strib notes, it’s also on the brink of being a literal thing:

Audrey Davison lives alone, gets a $620 Social Security check each month and worries about the sharply rising taxes on her four-bedroom house. Davison, 76, raised her family there and after 43 years, she really doesn’t want to leave Greenburgh.

Greenburgh doesn’t want her to leave, either.

The town is pushing a program that would let seniors work part-time, for $7 an hour, to help pay off some of their property taxes.

Davison, who suffers from arthritis and sciatica and needs a walker to get around on her bad days, said she pays about $12,000 a year in property taxes – perhaps $2,000 to the town – and has already taken out a reverse mortgage to pay her bills.

And if years of working at $7 an hour doesn’t work, the city can still auction off the property!  Everyone wins!

Except the taxpaying senior, but hey, why start caring about taxpayers now

Eberly:

This is liberal “thinking” at it’s finest. There is no mention anywhere of lowering taxes or even freezing them for retirees. No, liberals want to keep raising taxes and then expect you to work longer to pay for their government programs.

The modern day slave is subservient to the liberal welfare state run amok.

Freedom is “happiness to pay for a better Minnesota Greenburgh, Winston”.

Victory for Free Enterprise

Last May, I reported on an absurd lawsuit by Minneapolis taxi owners to cap the number of cab licenses in the city…on Fifth Amendment grounds:

owners of Minneapolis cab licenses, who’ve benefitted immensely from government regulations artificially driving down the supply of cabs in Minneapolis, are sueing on Fifth Amendment grounds to protect a “right” to income that exists only because of government intervention!

The owners’ “logic”; government adding more licenses was a “taking”.  Never mind that they “took” something – a monopoly – that existed only due to government action.

King reports that the madness is over:

The case of Minneapolis taxi cab licenses (previously reported here) has now been dismissed by a judge, making it possible for free entry into the Minneapolis cab market. The Institute for Justice is doing a bang-up job for economic liberty and has brought the immigrant groups that sought entry into the cab market a nice Christmas gift.

Sometimes it feels like the good guys never win in court.  Nice to see it works, sometimes.

And There Was Rejoicing

Foot brings the word; CompUSA is circling the drain:

Consumer electronics retailer CompUSA said Friday it will close its store operations after the holidays following sale of the company to Gordon Brothers Group, a restructuring firm. Financial terms weren’t disclosed.

The reason?

Dallas-based CompUSA has struggled for nearly a decade with falling prices on personal computers, its most important product, and competition from big-box retailers such as Best Buy.

Also surly, hostile service, unimaginative and stodgy marketing, a terrible website, stores with downright off-putting phone autoattendants that rarely found a human destination, and being a rotten, cold, irritating place to shop.  Sort of like the K-Mart of electronics.

The silver lining – besides the chain’s forthcoming extinction itself?

CompUSA operates 103 stores, which plan to run store-closing sales during the holidays.

I think I could salvage just a tad of goodwill…

 It would be up to the buyers whether to continue the CompUSA name.

Note to buyers:  no. 

Who Are We?

Lori Sturdevant’s column this week is titled “If economy goes south, is Minnesota prepared?”

I thought on reading the headline “by Minnesota, surely she means the people of this state; the productive sector; the ones that actually pay the revenues in to the state to keep the government (aka the big parasitic appendage that drags the rest of the economy)“.  Right?

Oh, who was I trying to kid.  When she says “Minnesota”…

The state’s $739 million revenue downturn through June 2009, forecast Friday, came as no surprise to the budget reporters in the Capitol basement — schooled as we’ve been by the long, strong run of finance commissioners who have served Minnesota through the years. They’ve taught us well that this state’s revenue stream is wickedly variable. It floods in good times — or it used to, before the 1999-2000 income tax cuts — and it dries up quickly during

…she means government.

As to the media beating the “recession” drumbeat…Kiiiiiiing?

That Lagging Bush Economy

Oh, woe is we:

Well, well, well … 166,000 new jobs. Twice the consensus view. Did somebody say Goldilocks? Did somebody say the greatest story never told?

Silly Larry.  That’s what gatekeepers are for.  If this news actually got out, Democrats’d have to work to get elected.

Here’s the key point: Outside the struggling financial and consumer discretionary sectors, the economy is firing on all cylinders. Economy-wide profits are up a smoldering 15 percent in the third quarter when you remove these two laggards. And in addition to today’s robust, expansionary jobs number, GDP blew away forecasts earlier this week, coming in a hair shy of 4 percent. (For the record, this represents the biggest back-to-back quarterly gain in four years.) This means healthy American businesses are generating jobs. Meanwhile, hardworking American workers are out there spending money, with real, disposable, after-tax, after-inflation income running around 4 percent — a big number.

I’ll await the DFLer claims that raising taxes would make things ever better.

Tim Walz: “Give Companies Money, And They Will Be Happy”

You’ve heard the debate about SCHIP. The Dems want to take a program originally intended to subsidize health care for legitimately poor kids (originally passed by Republicans, if I recall correctly) and expand it to cover children whose families could not pass (or flunk) any legitimate means test for the subsidy under current law. In other words, they want to do what they always do with entitlements – expand them far beyond their original intent, to addict more of our society to government assistance of one kind or another. The Republicans, true to principle, have fought back against the creeping socialization of healthcare smarting after November and leery about their prospects next year, have been acquiescing in depressing numbers. The President, fortunately, has pushed back by vetoing the bill. Most Americans support the President on this veto.
Which is, I suspect, why Congressman Walz is standing to post in the spin machine:

SCHIP was created 10 years ago to help provide health care for children whose parents earn too much to qualify for Medicaid but not enough to afford private insurance. The program is economical — it needs less than $3.50 a day to cover a child — and cost-effective, because children who have access to routine preventive care from a family doctor don’t have to rely on emergency rooms for their medical care.

That is, of course, the boilerplate about the program – boilerplate that got it passed in a Republican Congress. I have nothing to add that better commentators haven’t already hammered on…

…except this next bit.

I believe these concerns, such as those expressed just a few days ago in these pages by my colleague Rep. Michele Bachmann are overblown.Some have expressed concerns that, under this program, wealthy parents will enroll their children in SCHIP instead of providing them with private health insurance. But if these concerns were well-founded, then private insurance companies would be leading the charge against an expansion of SCHIP. Instead, they are among its strongest supporters.

Walz either never passed Economics 101, or things none of the rest of you did.

Picture yourself as a healthcare company (and I’ve worked for them a couple of times – so while I claim no extra-special insight, I’m not the idiot Walz seems to need us all to be). Your choice:

  • Engage in the scrum of the market, advertising and selling and servicing insurance to people the old-fashioned way – by having to convince them to give you their money for your products and services, with all of the ups and downs that attend working in the free market
  • Letting government do your selling for you, and cashing their checks.

What’s not to like?

As, indeed, Walz notes:

Under SCHIP’s public-private partnership, private health-care plans work with individual states to cover uninsured children. That is why this legislation has been endorsed by America’s Health Insurance Plans, the American Medical Association and the American Hospital Association. In other words, SCHIP is as good for America’s health-care industry as it is for keeping America’s kids healthy.

Where “good” equals “conveniently remunerative”.

The Landlord Subsidy Act

Minneapolis lefties (ACORN, in this case) want to freeze foreclosures in the city:

An advocacy group has started a campaign calling on the Minneapolis City Council to support a three-month voluntary freeze on foreclosures in the city to give some borrowers more breathing room.

The proposal by the local chapter of Minnesota ACORN, a community advocacy group, would target loans made by the 25 largest subprime lenders to owner-occupants. Subprime lenders typically offer less favorable terms to borrowers whose credit record disqualifies them for conventional loans.

ACORN turned to the City Council after getting turned down by the Hennepin County Board. ACORN also will talk to St. Paul officials.

Will they ever learn – “buyer protection” legislation makes it impossible to be a buyer?  I’m no economist (paging King Banaian!), but if you gut the lenders’ recourses for dealing with bad loans, all you do is prevent all lending?

Remember five years ago, when the last of the Ventura-era legislatures (controlled by the DFL) passed “buyer protection”  legislation against insurance companies, and made it nearly impossible to buy homeowners’ insurance?

There seems to be just a whiff of sanity in Minneapolis, at least:

Just three of the 13 council members — Gary Schiff, Don Samuels and Cam Gordon –have spoken in support of the proposal. Council President Barb Johnson said she isn’t sure how the proposal will fare in the full council.

It’s Minneapolis.  I call it a tossup.

When Back-Bacon Flies

This looks more like an ad than a news story…:

BankIntroductions.com, a Canadian company that specializes in global banking strategies and currency consulting, is advising clients that the amero may be the currency of North America within the next 10 years.

“The amero would compete against other regional currency blocks,” BankIntroductions.com says. “At present, with the Canadian dollar approaching par, more talk for an amero currency unit will become popular in Canada.”

File that under “jumping while the jumping is good?”

The company says that with the successful implementation of NAFTA, “the one dragging component for the amero will be Mexico, but in time this will change.”

Since there’s a case in current events for a strong Canadian dollar (it’s strong, duh), the “Amero” is plausible, if not believable.

But Mexico not dragging the rest of the continent? Without massive immigration reform forcing Mexico to reform itself from top to bottom?

When unicorns prance along the top of the fence.

Unintended Consequences Predicted While You Wait

Roosh body-slams A-Klo’s latest misguided attempt at populism – a bill that would regulate cell contract termination fees and otherwise punish cell carriers for providing an inexpensive solution:

Why are there termination fees? Because if you haven’t noticed, Amy, a cellular phone, even a very basic one, has an acquisition cost of a couple hundred dollars to the carrier. There is no free lunch and there is no “free” phone.

The carriers subsidize the handset in exchange for a one or two-year contract. Correct me if I am wrong, but I am pretty sure everybody knows this.

That is how carriers have made it possible for virtually everyone that wants one to have one nowadays. 
On the one hand, it’s hard to blame Klobuchar; growing up in a media family, spending virtually her entire adult life in government or pseudo-governmental employ, she probably has not the faintest clue how private-sector companies work. 
Which isn’t much of an excuse:
So, Amy, what will be the result of your ill-advised and asinine proposal (assuming it has a chance)?

Termination fees will be traded for higher activation fees and monthly access fees and equipment costs. Much higher equipment costs.

The Cell Phone Consumer Empowerment Act? Even the title sounds asinine.

Being a DFLer means never having to pass a cringe-check.

Direct Waste Of 90 Minutes Showroom

One of the things I love about 21st century capitalism is that I can shop when, where, how, and if I want to.  I can go to the Midway Cub at 11 on Saturday if I want to see plenty of my fellow human beings, or to Byerly’s at 4AM if I want fewer of them, or to Aldi if I want to feel a lot better about my life’s course, or to SimonDelivers if I don’t want to see anyone at all.  I can buy hard drives or tabasco sauce or a boat online, or go to the Farmer’s Market and buy vegetables and put ’em in the burlap bag I brought to save the hassle. 

I love it because it’s the opposite of the whole Eastern-Bloc socialist system where one shopped when the powers that be sent the merchandise – or one missed the merchandise!

So as a rule, when merchants call and say “if you’d like such-and-such a deal, be here on Saturday Morning at 9AM”, I tell them to relieve themselves up a rope. 

But I also have a very old house that needs some remodeling over the next couple of years.  And a former girlfriend’s parents were members of one of those wholesale warehouse places, and told me about the amazing deals they got on pretty much everything.  Of course, these were the kind of people who built new houses because they were bored with their old houses, but…whatever.  Simple fact:  I need stuff, and since I’m half Norwegian and probably a quarter Scottish, I want it cheap.

So I got a call from “Direct Buy Showroom” last week.  The young lady on the phone ran down a long list of the deals that one could get if one were a member.  Decent deals, as far as it went…but more later.

She also said that the “showings” were by invitation only, and asked if I were available Saturday morning for about 90 minutes.  As it happened, I was – I needed to go to White Bear to do the Saturday broadcast at the Superstore.  So it wasn’t out of my way, per se.  I’m always a little loathe to devote 90 minutes to anything that doesn’t involve work, kids, earning money or having fun, but I ignored that little voice in the back of my head, and accepted.

I drove up to the McOfficePlex in White Bear precisely on time – 8:45 AM – and went inside. 

A brief aside, here; I can’t stand most salesmen.  I mean, I’ve worked with a lot of them, and they can be really great people as people – but when they switch into “sales” mode on me, and try to “sell” me something, I shut down.  And I don’t care how slick they are, how polished their approach – I can always tell when someone is trying to convince me to pay more than I would on my own, for something I don’t need all that bad.  Always

But no worries – the guy they sicced on me was neither slick nor polished.  His suit pants bagged out in back; I tried to think charitably; maybe he’d lost 50 pounds entirely on his butt.  He also had that air of “I’m doing sales on Saturday mornings because my real job isn’t panning out for me.”  Whatever – he sat me down, got some coffee, and started chatting me up.  Of course, when sales guys start chatting you up, you know you’re being chatted up to try to set you up for a sale.  And since I knew I was in the room for the long haul, I figured I’d have some fun; so I started chatting him up in return.  I was right; he was a Lutheran minister…er, wait.  He was a “consultant” to Lutheran churches.  And things were a little slow.  And…

…well, I started to tune out, when the sales manager came around and told us it was time for the big presentation. 

Minister guy and two other salespeople brought four of us – a woman whose attitude screamed “accounting execuchick”, and a couple that looked prosperously blue-collar – into a room with a big-screen TV in the front.  A guy that looked for all the world like Dr. Craig from Saint Elsewhere walked to the front of a room, and spent the next hour alternating his pitch with a video about the store.  And the deals – an average of 43% off of retail – did sound good (assuming one ever pays retail for anything, or even tends to buy things brand-new, which I should add at this point I rarely if ever do).   His pet example: a “high quality” dining room table that ran $3,000 at the retail store would cost a member…$1,800. 

$1,800 for a table?  Isn’t that what estate sales are for?  I have only spent over $1,800 for a handful of cars in my life; I’ve never spent more than a sixth of that on a given piece of furniture!

Key to the whole thing, I knew, was that they only sold to “members”.  And as the elapsed time crept up toward an hour, I thought – “the longer they delay telling you how much the “membership” costs, the worse it’s gonna be”.  I started tallying up the things I need to do – build a patio, new cabinets and floors in the bathroom and kitchen, lots of paint, refinishing a bunch of hardwood floors – and tried to figure out the break-even point.  I figured a couple of hundred bucks for a “membership” could be pretty well worth it. 

Finally – at about the hour mark – the guy cut to the chase.  The initial membership term was 10.5 years.  “Think about how much retail markup you pay in ten years!”, he exhorted us, splattering numbers on a whiteboard like a Pollock painting, somehow arriving at a figure in the mid five-digit range.

“Now, before I go on”, he continued, “due to our agreement with the manufacturers, our deal is this; if  you walk out of here today without becoming a member, we can never offer you the membership again.  That’s to safeguard our relationship with the manufacturers…”

He then wrote the price for the initial term on the whiteboard. 

$5,900. 

I raised my hand.  “So, we gotta come up with six thousand dollars today to join your little club?”

“Yes”.

Execuchick spoke up; “And that’s it?  If we don’t do it now, that’s it?”

“Yes”.

Both of us got up and walked out.  I was tempted to leave with a hearty “the only reason I have  any money is that I never spend $1,800 for a dining room table, much less $3,000“, but I stuck with a simple “I just don’t spend $6,000 without budgeting it way in advance”.

The guy didn’t seem to bat an eye.  I got the feeling they expect to have half of their prospects walk out in a huff.

Which made me wonder, as I drove to a coffee shop to get ready for the NARN broadcast – after all that, they find enough people who can impulse-spend $6,000 to keep their little showroom open?

Two Americas, indeed.  I’m trying to figure out if those Two Americas are rich/poor, or thrifty/spendthrift, or smart/gullible, or pennywise-poundfoolish/smart, or what.

Unintended Consequences

A Canadian government scheme to promote hybrid cars is…

…accelerating sales of pickup trucks:

Stephen Harper’s Conservative government exempted pickup trucks when it unveiled its so-called eco-AUTO program in March because it said many people use them for work. It argued that makes them more of a need than a transportation choice. The government’s program promises rebates of up to $2,000 to buyers of certain fuel-efficient vehicles and slaps an excise tax of up to $4,000 on the biggest gas guzzlers – typically SUVs or sports cars.

The exemption has pushed consumers thinking of buying an SUV to pick a pickup instead, said Dennis DesRosiers, president of the consultancy and a harsh critic of Ottawa’s green-car program.

“Leave a loophole and consumers and dealers will exploit it,” Mr. DesRosiers said. “Why doesn’t the federal government just admit that this whole thing has been a fiasco from day one and is not working?”

Er…because they’d have to re-evaluate the notion of trying to enact social change via tinkering with the economy, and that’d drive them screaming from the room in terror?

(Via Blair)

Logic, Predictions

Over the weekend, the Strib seemed to all but declare “low taxes” the culprit behind the bridge collapse.

Mitch “The Other Mitch” Pearlstein writes for the Center of the American Experiment:

But for any connection to hold, at least one of the following conditions would have to be true, when not a single one is.

It would have to be demonstrated, for instance, that decisions by the Minnesota Department of Transportation about what to do about the bridge — whether to repair it, how to repair it, when to repair it — were made on the basis of what such steps might cost. But I know of no evidence that money played any role in determining what state officials or anyone else did or didn’t do in maintaining the bridge.

Likewise, to draw any suspect connection between the collapse and the consistent preference of large numbers of Minnesotans to hold the line on taxes, one would have to assume that inspectors and other officials charged with protecting and serving allowed anything other than their professionalism to determine how they gauged the sturdiness and fragility of the state’s infrastructure. Without a morsel of evidence that any of them compromised their integrity, it’s slanderous to imply that any of them did.

And then, of course, even if Pawlenty broke his no-tax pledge 20 minutes after taking office in 2003, and even if MnDOT’s budget doubled in a single bound, does anyone really believe that federal, state and local bureaucracies would have moved fast enough so that anything other than maybe talking about a new 35W bridge would have happened by now?

Oh, and I have a fearless prediction; last week’s City Pages did a long, meandering, utterly speculative assignment of blame to everyone from the Governor to David Strom.  Absent from Anderson and Demko’s list:  “The design of the bridge itself”. 

That’s where my money is…

He Wants To Ride His Bicycle – For A Good Cause

My friend Beeeej is going to be doing a mega bike-a-thon.  It’s for a very good cause:

Six years ago, less than a year after I moved to New York City to be closer to my parents, my mother was diagnosed with Chronic Lymphocytic Leukemia. None of us really knew at the time what that meant; we knew that leukemia was a form of blood cancer, but we didn’t know her prognosis, or even really that there were different kinds of the disease. I’ll write more about CLL in later entries, but for now suffice to say we knew her life would change.

We have been very fortunate, far more fortunate than many families of leukemia patients, in that my mother’s life hasn’t changed all that much; she has remained relatively healthy. CLL can remain relatively inactive – or at least advance very, very slowly – for several years, and with Mom it has done just that. As I said, it’s been six years – and she’s not only still with us, she’s still in pretty good health, and hasn’t had to undergo any kind of medical treatment. Not everybody is so lucky, and so we count every day with her as a blessing.

What does that have to do with Tucson?

Tonight I spent a couple of hours at the registration and kick-off for the New York City chapter of Team in Training. “TNT” is an arm of the Leukemia & Lymphoma Society, through which ordinary people sign up to do extraordinary things to raise money for the Society’s programs – medical research, government lobbying, patient services, and all the other things that are desperately needed in the fight against blood cancers. TNT members spend months training to run a marathon, bike/swim/run a triathlon, or bike a “century,” and they use the event as a catalyst to raise money from their friends and family.

And tonight I committed myself to spend the next six months training, so that I can ride my bike in “El Tour de Tucson” – one hundred and nine miles in and around the city of Tucson, Arizona in one day, November 17, 2007.

I hope you’ll check in with me often over the next six [now more like three!] months. It should be an interesting ride.

I know Beeeej would appreciate any help people can spare toward his goal of raising almost $11K to help combat Chronic Lymphocytic Leukemia, I imagine he’d appreciate it.

As would, y’know, all the rest of the CLL patients.

I’m going to try to chip loose a few bucks, and I hope you can too.

The Case For Rabies

King smacks a bad puppy:

My contention thus far is that dogs use explanations to give their readers the impression that they know that which they cannot yet really know. Attempting to connect dots of a rare event at this stage is highly premature.

The puppy – the not-exceptionally-astute author of the City Pages’ “Best Leftyblog of 2006” (see: “Damnation by Faint Praise”) “Cucking Stool” – took a thwack at King’s economic analysis of the Bridge collapse. 

Read the whole thing.  Ask yourself “have I checked my tire pressure since I got to work?”  Then send the whole thing to Nick Coleman.

Stuart Smalley, Carpetbagger

Brodkorb on the story that should be leading the news every friggin’ evening; four out of every five of Al Franken’s contribs are from out of state!

Would you expect anything less from a man who said his “life” was in New York and who responded to the question “[i]f Paul Wellstone had not died would you have moved back to Minnesota?” with the answer “I am not sure”.

It reminds me of the statistic from the ’02 Senate race, when records showed that the average donation to the Wellstone! campaign was in the very patrician three digits, while Coleman’s campaign’s average contribution was somewhere under $50 – and yet Coleman’s fundraising kept pace with Wellstone.

Poverty

In 1991, my then-wife and I made $18,000.  Together.  This, with one kid the whole year, and another born in August. 

We lived in a rat-trap of a house in the Midway: three drafty bedrooms, and a foundation that let mice in in droves; the rodents gamboled about inside the walls like Britney and Lindsay on the dance floor; they’d sweep across the floors like the herds of buffalo from Dances with Wolves.  It was cheap, and it was awful.  And it was all we could afford.

From mid-1991 into mid-1993, I (and, most of the time, my wife) went to Plasma Alliance twice a week – the maximum allowed – to get money for formula and diapers.  I still have a divot at the crook of my left elbow, the “sweet spot” where they’d do the draws.  I still know the language – waiting for the Fleeb to do the stick, hoping for a fast draw so I wouldn’t get partialled, because I needed a full check – and the drill (drink LOTS of water, eat NO fat for the 12 hours before the donation, so the lipids in the plasma didn’t slow down the plasmapheresis process); with enough care, you could donate a liter of plama in less than an hour.  It was worth $45 a week, if you did everything right.

I worked, of course; I was a nightclub DJ, making maybe $50 a night for 3-5 nights a week (figure a weekly take-home around $200-250), through the beginning of 1992, working nights and (when my daughter was born) minding the baby during the day.  I also worked at a couple of radio stations for 15 hours a week – KDWB AM and FM and WDGY – for about $6 an hour; $6.50 when I got a raise.  I was choosing, at the time (and it turned out to be a bad choice) to sacrifice a lot, one might say even obsessively, to try to re-jumpstart my radio “career” (and in my own defense, I did come close; I came in second place for the Program Director job at KSTP-AM in 1991, a week before Bun was born).  When that tanked, I worked at some other awful jobs; I was an essay reader for $7 an hour (a “sweatshop for people with degrees”, one of my co-workers called it), then worked for a legal document coding company for $6 an hour.  My wife was a waitress, and then did data entry work, when the pregnancy allowed it.

In November of 1992, with my son on the way, I found a company that wanted to pay me a couple thousand dollars to write an installation manual for a database configuration system.  I quit the coding job to put all my effort into it; on Christmas Eve, they called to tell me they were stiffing me for the money that’d been earmarked for two months of rent and NSP bills. 

The day my son was born, I got eviction and power shutoff notices (and word that the company that had stiffed me had gone out of business). 

Once, money was so tight – half a week away from payday, a day away from another Plasma Hut donation – that I fixed my at-the-time wife and I a dinner of rice with sauteed onions.  It wasn’t bad.  Other staples:  fried potatoes and baloney; cube steak burgers; grilled cheese sandwiches; a zillion variations on spaghetti.  Y’know – poor people food, the kind of starchy, fatty crap that is, at least, dirt-cheap. 

But according to Mark Gisleson at Norwegianity, I know nothing about poverty, at least compared to upper-middle-class, Volvo-driving alpaca-wearing dilletante Barbara Ehrenreich:

Mitch, who I linked to earlier, ripped on Ehrenreich recently, but his criticism says more about Mitch’s failure to “grok” poverty than it does his understanding of Ehrenreich’s writings. Poverty is about having nothing. If you have an apartment or house to live in, you’re not poor by real world standards. Impoverished maybe, but not truly poor.

Yes, Mark, and gosh, we were in a discussion about the American minimum wage, a context which I didn’t figure was an entree to comparing “poverty” in America – where the “poor” overwhelmingly have roofs over their heads, TVs, refrigerators and cars – with poverty in, say, Sudan or Indonesia or Bolivia. 

I didn’t figure it needed much explanation.  On the other hand, we’re talking with someone who can say this…:

 Let’s not even get into Ehrenreich’s new topic: slavery in the United States. But, like a radically anorexic minimum wage, I guess that’s OK with Mitch too, so long as it only affects a few people, and not Mitch.

…something too stupid and casually defamatory for even Kevin McKay or Jeff Fecke to write with a straight face.  My point about she who must not be criticized Ehrenreich was in Nickled and Dimed, she approached poverty wearing the equivalent of blackface; if she approaches slavery with the same upper-middle-class preconceptions as she approached minimum-wage life, she should (but likely won’t) get laughed off the public stage.

I don’t think Mitch is malicious in this regard, just unwilling to take a hard look at what Reaganism hath wrought. “Only a tiny, shrinking minority actually works for the minimum wage”? Mitch, if only one person was getting paid minimum wage, and if that wage didn’t allow them to eat and have a roof over their heads, why would that be OK?

Gisleson mixes his questions.

The vast majority of those getting minimum wage aren’t responsible for feeding or sheltering themselves, much less anyone else; they’re teenagers working at their first jobs.  Would that be “OK?”  Absolutely. 

For the remainder – those adults who are responsible for feeding, sheltering and clothing themselves?  Well, my religion bids me to take care of the most unfortunate among us, an injunction that I take as seriously as the aggressively atheist Gisleson ridicules it.  But that’s a personal thing.

Speaking for society, I have to ask; why does an adult earn minimum wage?   

Because no employer is willing or able to pay more for the skills they bring to the market, either because the skill is of little value to employers (flipping burgers) or the market is glutted with people able to do the job (non-profit work).

So why do these adults – responsible as they are for feeding and sheltering themselves and, sometimes, others – go onto the job market with skills that are only worth the minimum wage to employers (or even less; as the minimum wage rises, Macdonalds and Burger King are moving to minimize the number of burger flippers in their restaurants; they’re switching to pre-cooked patties heated en masse in microwaves, to eliminate the need even for most of the minimum wage employees at the grill)?   

In many cases, it’s because of a physical or psychological problem; they’re not able to learn a skill that’s worth more than the minimum wage. 

In many other cases – including my own, way back when – it’s because of that hoary old conservative cliche, “bad choices” which, like so many conservative cliches, is true more often than not.  Criminal records, drug or alcohol problems, getting pregnant as a teenager, dropping out of school, or just plain dissipation – all of them get in the way of learning a skill, or even just-plain good work habits that can take a person out of the minimum wage world.   And, unfortunately, it’s not just ones’ own bad choices that’ll get you; when criminals, addicts and slackers go on to have kids, and raise them in poverty (yeah, the American version of it, bla bla bla), and pass the culture of poverty down to their families, the kids are indeed victims of those bad choices.  And yes, before the inevitable self-righteous leftyblogger points it out, society has made some bad choices as well – African-American and Indian societies are chronically dysfunctional a century and change after slavery and the extinction of native culture, respectively. 

Factor out that last bit there (I personally favor extending tribal gambling as “reparations” – perhaps we should legalize marijuana, licensing the sales to proven descendants of slaves, to continue the pattern); what is society’s obligation to insulate people from their own bad choices?  Their parents’ bad choices?

Why should anyone who works be unable to feed, shelter and clothe themselves, and I’m not even mentioning healthcare.

Because tacking a few extra dimes per hour onto a miserable paycheck isn’t going to change anything!

And more importantly, because merely “working” isn’t the point; if society subsidizes the mere act of showing up and “working” with food, shelter, clothing and healthcare, then eventually 90% of our society will be leaning against shovels (figuratively and literally) while the other 10% slaves away to pay the bills.

If society is going to subsidize anything, it should be good behavior  – staying in school, learning a skill that can eventually help someone support themselves and those for whom they’re responsible, putting down the damn bong and keeping your johnson in your pants and learning how to support oneself and, eventually, raise families that value the same thing.

Blogging is about advocacy, but I don’t understand advocacy that seeks to take from those who have the least to give. Does it bother Mitch that minimum wage workers in Hennepin county will individually pay more for the new baseball stadium than all the millionaires in Duluth put together?

Mark:  Show me where I’ve ever stumped for subidies of baseball parks.

You’ll be looking a long time.  I’ve always opposed it.

As well as, for that matter, government subsidies of all businesses; corporate welfare is just as debilitating as subsidizing poverty.

I continue to have problems with capitalists who think they sprang fully formed from Adam Smith’s forehead, and that they owe nothing to society or other workers. Right now the underpaid restaurant workers are supporting the overtime that drives our economy, feeding people who don’t have time to cook, but can’t afford to pay real prices.

This isn’t as stupid as the “slavery” crack above, but it does show exactly how “reality-based” Gisleson and his ilk are not, when he notes that… 

…to the [“]reality-based[“]: eating out shouldn’t be inexpensive, or competitive with cooking for yourself. Or do you hate all those restaurant workers that much?

Maybe Gisleson has never fed a family (I’m willing to bet on it); cooking at home is pretty much always cheaper, and can certainly be faster.

Of course, not being “reality-based”, and a mere bread-winner who’s been raising kids through thick and (at times, very) thin for the past 17 years, what would I know about “reality”, as people like Gisleson see it?

Addicted To Favor

George F Will on the other Minneapolis taxi controversy – the one that doesn’t involve Somali Moslems and alcohol:

The campaign to deny Luis Paucar his right to economic liberty illustrates the ingenuity people will invest in concocting perverse arguments for novel entitlements. This city’s taxi cartel is offering an audacious new rationalization for corporate welfare, asserting a right — a constitutional right — to revenues it would have received if the City Council had not ended the cartel that never should have existed.

That’s right – owners of Minneapolis cab licenses, who’ve benefitted immensely from government regulations artificially driving down the supply of cabs in Minneapolis, are sueing on Fifth Amendment grounds to protect a “right” to income that exists only because of government intervention!

Will tells the story of Mr. Paucar…: 

Paucar, 37, embodies the best qualities of American immigrants. He is a self-sufficient entrepreneur. And he is wielding American principles against some Americans who, in their decadent addiction to government assistance, are trying to litigate themselves to prosperity at the expense of Paucar and the public.

…who came to the Twin Cities from NYC to try to make his fortune as a cab entrepreneur.

Where he ran into “Minnesota Nice”, in the form of a government-induced scarcity; Minnesotans are apparently happy to pay extra for an artificial scarcity of taxis. 

By the time Paucar got here in 1999, 343 taxis were permitted. He wanted to launch a fleet of 15. That would have required him to find 15 license-holders willing to sell for up to $25,000 apiece…[the scarcity of taxis in Minneapolis]– and Paucar’s determination and, eventually, litigiousness; he is a real American — helped persuade the City Council members, liberals all (12 members of the Democratic Farmer-Labor Party, one member of the Green Party), to vote to allow 45 new cabs per year until 2010, at which point the cap will disappear.

Minneapolis’ licensees are addicted to the easy life of the regulatory beneficiary: 

In response, the cartel is asking a federal court to say the cartel’s constitutional rights have been violated. It says the cap constituted an entitlement to profits that now are being “taken” by government action.

The danger?  Beyond the stupidity of regulating something like the maximum number of cabs in the first place, I mean? 

If the licensees win, the precedent will be set; no government regulation that confers a financial benefit can ever be undone, because it’ll be a “taking”.

Will gives well-placed kudos to Mr. Paucar…

By challenging his adopted country to honor its principles of economic liberty and limited government, Paucar, assisted by the local chapter of the libertarian Institute for Justice, is giving a timely demonstration of this fact: Some immigrants, with their acute understanding of why America beckons, refresh our national vigor.

…but betrays provincial ignorance of Minneapolis: 

It would be wonderful if every time someone like Paucar came to America, a native-born rent-seeker who has been corrupted by the entitlement mentality would leave.

A good part of Minneapolis would be depopulated.

Hmmm.