Archive for February, 2010

Public Transit, Public Money and Incentives

February 9, 2010

 

     The Toronto Transit Commission employee’s union, in response to several embarrassing situations recorded by the public and mentioned earlier in this blog, are striking back in classical fashion. They believe that the miscreants, caught by camera sleeping during duty, or neglecting their jobs, are the victims, not the perpetrators, in the story of wasting public money. They will wax indignant and pretend injury when they are the injurers. One wonders what the real price of a subway fare is, once all the costs are added in. We’ll never know, but the spin machine will keep insisting it’s a bargain. Once again, say “public good”, but mean, “Keep the subsidies coming.”

    Here are some facts

     “The Heritage Foundation says, "There isn’t a single light rail transit system in America in which fares paid by the passengers cover the cost of their own rides." Heritage cites the Minneapolis "Hiawatha" light rail line, soon to be completed with $107 million from the transportation bill. Heritage estimates that the total expense for each ride on the Hiawatha will be $19. Commuting to work will cost $8,550 a year. If the commuter is earning minimum wage, this leaves about $1,000 a year for food, shelter and clothing. Or, if the city picks up the tab, it could have leased a BMW X-5 SUV for the commuter at about the same price.”

    Only a third of the operating budget is covered by fares. The supposed benefits are conferred by paying for the construction costs and continuing subsidies. Imagine a business which got its infrastructure and equipment free and still lost money.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Socialism Continued

February 8, 2010

from the book: Shadow Dancing on the Grave of Hope:       

    A socialist believes in complete personal freedom and doesn’t care what you do as long as what is not forbidden  is compulsory, you don’t make a profit, hire a diverse workforce independent of ability, pay your employees much more than they’re worth and provide employee benefits that are the same as those of government workers. In other words, the only enterprise that can possibly support these notions is government where cost and efficiency matter not.

    Although socialism starts with noble goals, it always ends with government apparatchiks scrambling to better their position on the playing field bought with other people’s money. Socialism, and government in general, is the largest, sustained, INTEND, pretend to IS, producing a DOES, farce in human activity.

    The INTEND-IS-DOES distinction and the love affair many have with the INTEND-IS side explains why socialism is as noble in intent as it is brutal and terrifying in application. If socialism did work, all cows would give chocolate milk and no one would ever want for anything non-frivolous, because socialism is very Puritanical. Since socialism does not work, it must ignore at least one fundamental law. If the effects of incentives are ignored, one ignores the effect of Human Nature. Theories of Society are presumably directed towards humans, making the lack of understanding incentives all the more remarkable, but understanding is unneeded when one can command.   

    “I am not privy to these academicians’ inner thoughts, motives, or feelings but I have spent more than 40 years teaching in higher education and, before that, studying there, and I can say without any hesitation that the bulk of those working in the groves love to rook the taxpayer for their pay. They do not want to enter the market place where their income would have to be obtained solely from willing customers. That kind of dealing — such commercialization — offends them, makes them think they are no better sorts than, say, people who sell shoes, cars, life insurance, mutual funds, or kitchen utensils. No. Let these other blokes cope with the burden of having to convince customers of the value of what they have to offer them. Higher education merchants and professionals must be protected from such burdens. They must have their income expropriated from many unwilling taxpayers; their scholarship and research, unlike that of many in the private sector, must be funded with the loot the government gets to extort from us with complete impunity. They need not sweat the possibility of their customers’ choosing to go elsewhere for their higher educational services.” Tibor R. Machan.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Socialism Lives On—Neither Discredited nor Discouraged

February 6, 2010

from the book: Shadow Dancing on the Grave of Hope:

Academics and School Teachers Love Marx      

    “Years ago, I used the one textbook that consisted of primarily Great Books authors for my research paper course and saw that in the edition I started using contained selections from Adam Smith and Karl Marx but when the next edition came out Adam Smith had been removed and Karl Marx retained. I wrote the textbook author and asked him why he removed the author who has proven historically true and retained the one that has been historically discredited. He wrote back that he had to consider sales and that meant considering what his market wanted and since his market was academics and school teachers he had to omit Adam Smith and keep Karl Marx.” Bruce Gans.

     Central Planning is like the bumblebee: Theoretically it can’t work, but, unlike the bumblebee, it never does.

     “…that which is common to the greatest number has the least care bestowed upon it.", Aristotle.

      Socialism uses coercion to make only one thing possible and then justifies the outcome as necessary. For example, Ontario, Canada was once served by private suppliers of electricity until Adam Beck, a socialist with government backing, used every coercive trick to put them out of business. While this was being accomplished, he proceeded to create a “public utility” which did what all public utilities do. It hid costs, incurred huge debt and become a model of inefficiency. This public utility had many consultant engineers in spite of having hundreds of engineers on payroll. One engineer of my acquaintance got many consulting contracts which gave him several chances to visit “The Sea of Elbows”.  He would go to a large room with dozens of cubicles separated by partitions which were three feet high, each cubicle with an engineer. There he would observe the “Sea of Elbows” as the high priced help leaned back in their comfortable office chairs and contemplated their situation with their hands clasped behind their heads. Apparently the creation of this ridiculous and expensive enterprise met with royal approval because the ruthless pursuer of public good became Sir Adam Beck.

    The bill from this utility is more than passing strange. It has charges as “debt retirement”, “regulation charges”, and “delivery charges”, all of which are much more than “electricity charges”. With any government utility, the amusement is unintended, but it ain’t free.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

If you’re not a socialist….

February 6, 2010

 

     Huge snowstorm hits Washington, D.C.–government workers sent home early. Those working on carbon trading and cap and trade legislation had to stay (I made up the last part).  Those working on the effects of global warming get to go home early because of a winter storm. They must be proud. On a related note, electric cars don’t work as well in colder temperatures. They don’t work very well anywhere.

    Without a hint of irony, the New York Times reports on the demolition of dozens of high-rise public housing towers around the U.S., some of them fairly new. Once again, public officials spending OPM (other people’s money) spent billions on something which didn’t work, destroyed it and then spent more OPM on an attempt to “Get it right for sure this time based on our new understanding.”

    This is too easy, but here goes. Toronto has a public organization called the Toronto Transit Commission (TTC) which runs public transit in Toronto. This organization runs on billions of dollars of government money and has a union which does what all public employee unions do. Recently, pictures of employees sleeping on the job and taking  breaks with waiting passengers have surfaced. According to a TTC official, “Publishing photos of select TTC employees in compromising situations is becoming a never-ending game of ‘gotcha’ that only serves to embarrass the TTC and erode public confidence.” Well I never. Lack of efficiency is a systemic condition of all public organizations and is caused, you’ll never guess, by lack of incentives for efficiency. While the organization are “working to turn this around”, ain’t gonna happen until Human Nature gets turned around. To wit, never.

from the book: Shadow Dancing on the Grave of Hope:

Socialism–The Academic Context of the Social Sciences–OR–Socialism–The Dead Paradigm That Refuses to Lie Down–OR–When you can’t do it yourself, and you’re a good rhetorician, you have all the credentials necessary to tell others how to do it.

    Politics and psychotropic drugs are similar in that the marketing is more important than the product and endless messages about the undeniable necessity of the product are part of the marketing.

The following explains how socialism would work in class.

     * Written By: Jimmy Kilpatrick Editor and Chief EducationNews.org
    * 27-9-09
    * Categorized in: Education

Professor is a Genius (This is so true)

If somebody is unable to understand THIS explanation, I have serious doubts about their ability to even function in society, much less run our country!

As the late Adrian Rogers said, "you cannot multiply wealth by dividing it."

I wonder if he’d consider running for president next time.

An economics professor at a local college made a statement that he had never failed a single student before, but had once failed an entire class.

That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, "OK, we will have an experiment in this class on Obama’s plan".

All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.

After the first test, the grades were averaged and everyone got a B.

The students who studied hard were upset and the students who studied little were happy.

As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D!

No one was happy.

When the 3rd test rolled around, the average was an F.

The scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed.

Could not be any simpler than that.

Jimmy Kilpatrick
retrieved on October 2, 2009.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

If you’re not a socialist….

February 6, 2010

 

     Huge snowstorm hits Washington, D.C.–government workers sent home early. Those working on carbon trading and cap and trade legislation had to stay (I made up the last part).  Those working on the effects of global warming get to go home early because of a winter storm. They must be proud. On a related note, electric cars don’t work as well in colder temperatures. They don’t work very well anywhere.

    Without a hint of irony, the New York Times reports on the demolition of dozens of high-rise public housing towers around the U.S., some of them fairly new. Once again, public officials spending OPM (other people’s money) spent billions on something which didn’t work, destroyed it and then spent more OPM on an attempt to “Get it right for sure this time based on our new understanding.”

    This is too easy, but here goes. Toronto has a public organization called the Toronto Transit Commission (TTC) which runs public transit in Toronto. This organization runs on billions of dollars of government money and has a union which does what all public employee unions do. Recently, pictures of employees sleeping on the job and taking  breaks with waiting passengers have recently surfaced. According to a TTC official, “Publishing photos of select TTC employees in compromising situations is becoming a never-ending game of ‘gotcha’ that only serves to embarrass the TTC and erode public confidence.” Well I never. Lack of efficiency is a systemic condition of all public organizations and is caused, you’ll never guess, by lack of incentives for efficiency. While the organization are “working to turn this around”, ain’t gonna happen until Human Nature gets turned around. To wit, never.

from the book: Shadow Dancing on the Grave of Hope:

Socialism–The Academic Context of the Social Sciences–OR–Socialism–The Dead Paradigm That Refuses to Lie Down–OR–When you can’t do it yourself, and you’re a good rhetorician, you have all the credentials necessary to tell others how to do it.

    Politics and psychotropic drugs are similar in that the marketing is more important than the product and endless messages about the undeniable necessity of the product are part of the marketing.

The following explains how socialism would work in class.

     * Written By: Jimmy Kilpatrick Editor and Chief EducationNews.org
    * 27-9-09
    * Categorized in: Education

Professor is a Genius (This is so true)

If somebody is unable to understand THIS explanation, I have serious doubts about their ability to even function in society, much less run our country!

As the late Adrian Rogers said, "you cannot multiply wealth by dividing it."

I wonder if he’d consider running for president next time.

An economics professor at a local college made a statement that he had never failed a single student before, but had once failed an entire class.

That class had insisted that Obama’s socialism worked and that no one would be poor and no one would be rich, a great equalizer.

The professor then said, "OK, we will have an experiment in this class on Obama’s plan".

All grades would be averaged and everyone would receive the same grade so no one would fail and no one would receive an A.

After the first test, the grades were averaged and everyone got a B.

The students who studied hard were upset and the students who studied little were happy.

As the second test rolled around, the students who studied little had studied even less and the ones who studied hard decided they wanted a free ride too so they studied little.

The second test average was a D!

No one was happy.

When the 3rd test rolled around, the average was an F.

The scores never increased as bickering, blame and name-calling all resulted in hard feelings and no one would study for the benefit of anyone else.

All failed, to their great surprise, and the professor told them that socialism would also ultimately fail because when the reward is great, the effort to succeed is great but when government takes all the reward away, no one will try or want to succeed.

Could not be any simpler than that.

Jimmy Kilpatrick
retrieved on October 2, 2009.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Incentives Really Are Everywhere

February 5, 2010

 

 

image

   This link is to an article about incentives in education in the Harvard Educational Review of 1996. At first I thought it was relevant, but it’s not. The one important point that does hold up is that there are good programs but no demand for them. The author’s definition of “good programs” is suspect because the good programs are merely different, not better, but his point about lack of demand is, wait for it, linked to no incentives for effectiveness.

    To politicians everywhere, “Thanks for helping us. Now, please stop.” For confirmation, see yesterday’s post.

    The priorities of the Obama-socialist government remain health care, education and energy, none of which the government should touch. Health care will become more of a government bureaucracy with much of the costs going to administration, regulation and keeping favored groups in a favorable position. Education hasn’t worked yet, but making it more centralized will fix that. Energy will be based on the mercantilist notion of “energy independence”. A notion which is silly and will never be achieved, in spite of the rhetoric which really doesn’t add anything to energy or trade. In addition, the “green” energy foolishness about Global Warming will need massive subsidies going to favoured groups. Cap-and-trade is so useless only those benefitting from vapourware can possibly support it. Socialism always works until it’s tried.

    In Canada, the prime minister kept Parliament out longer than he “should have”. There are those of us who believe with Will Rogers that, “Having congress in session is like watching a baby play with a hammer. You only hope you can get it away from him before he does too much damage.” (Not an exact quote).

Cheerio and ttfn,

Grant Coulson
Cui Bono–Cherchez les Contingencies

 

The Real Dow Jones

February 4, 2010

image

    This is a graph showing the money value (in inflated currency) of the Dow Jones as opposed to the “real value” corrected for inflation.  The first thing of note is my favorite depression, the one in 1921, the last in which the government was smart enough to do nothing—a sharp dip followed by improvement until 1929. Then government policies made the Great Depression great and kept real value from increasing until 1950 when it rose again. Then came Kennedy, Johnson, Nixon and Carter and the dismals until Reagan’s policies.This upturn lasted until almost 2000 and may be heading down but certainly has not been up since then. This is not a Democrat-Republican divide, but a policy divide.

People are divided into tax consumers and tax producers. All government agencies are devoted to demonstrating to us that we’re all tax consumers. Any money that goes somewhere must come from somewhere.

Cheerio and ttfn,

Grant Coulson

Cui Bono-Cherchez les Contingencies

Government Services are OK until I’m at risk

February 2, 2010

 

     This is a comment about David Miller, the current left-leaning Toronto mayor. Mr. Miller, who gives in to every union demand and never met a “spend more money to fix the world” proposal he didn’t like, presided over a strike by garbage workers where he misstated a city liability of several hundred million dollars. His excuse, “Close enough for government work.” didn’t obfuscate the issue enough so he decided not to run again. His legacy is a city losing businesses because of high taxes and excess regulation following the noble example of New York City.

       The comment is from a columnist about Miller, but could apply to any politician. The politician has never worked for us, we have always worked for him. Know your place and your spirit will be satisfied. 

    “The mantras of Mr. Miller’s government go roughly like this: Let us fix what is not broken and ruin what is working well; let us contrive to create a crisis where none exists; let us engage in a bogus "consultation" process when the fix is in; let us decry a lack of transparency in the enemy while working behind the scenes ourselves and, above all, let us give nary a thought to the poor, beleaguered taxpayer.” Christie Blatchford–Globe and Mail.

    These are, of course, the mantras of every government.

    Every Canadian politician, except the smart one, who lives under an assumed name (I may be unfair and perhaps there is more than one), holds up several cardboard cutouts of reality to ward off evil spirits. One of the foremost is the “world class” nature of our national health plan. The current Premier of Newfoundland and Labrador is heading south–to the U.S.–for heart surgery. He’s probably taking the Canadian surgical team with him so all can vacation and operate at the same time.

    Many of the people who can’t be bothered about data such as Michael Moore and David Suzuki, hold up Cuba as the epitome of socialist heaven. Except for the repressive regime, low standard of living and sense of hopelessness, it is.

    Humberto Fontova outlines 38 things you can’t do under this fine regime including economic and ideological activity of every kind. Che Guevera for everyone.

    What does this have to do with psychology? When a profession operates largely under government control and sponsorship it catches the government disease–inability, a plummy sense of righteousness and a hushed sense of moral superiority.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

Flaws

February 2, 2010

 

   There is a deluge of things to report on today, but I’ll confine myself to this one with the others to follow.

    The link is here and titled “Seven Huge Flaws in the Way Liberals Think”. I would substitute socialists for liberals and believe for think and hundreds of for seven.

     1) Liberals believe they can change human nature.

    Utopia will occur with the correct amount of political correctness pounded into the souls of the sinners.

     2) Liberals believe we can talk everything out with our enemies.

    That’s always worked.

      3) Liberals don’t have enough respect for our culture and traditions

    If you don’t hate everything about the proles who support you, you don’t get to join the club. On the other hand, they want to control you. In the movie Counterattack, Paul Muni’s character is chatting with a Nazi who refers to him as a goat. Muni–”You call me a goat, yet you want the goat to call you “sir”.“ ( not an exact quote)

      4) Liberalism is a fundamentally immoral political philosophy.

    If your whole philosophy centers on coercive control, it probably is.

      5) Liberals believe merely being liberal makes them good people.

    When you’re perfect, intention is everything.

      6) Liberals have too much faith in government.

    In spite of all the disappointments, but at least the failures cost lots of money which doesn’t really count, because it’s borrowed.

      7) Liberals have minimal interest in whether the programs they support  work or not.

    Few true believers ever look at data and, if they do, become frightened if the data look back. INTENTION is all that ever matters.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies

More Money and Education Results

February 1, 2010

 

     Further to the blog of yesterday about planners. They irk me because, a) I pay their salary, b) They do things which cost me large amounts of money, and c) They lecture us about their necessity and moral-intellectual superiority. Doesn’t “smart” planning imply that we who are opposed are “stupid”?  If I were smart, I could figure that out.

    A study in New York city indicates that giving extra money to schools has no effect on achievement. Giving money to a cultish bureaucracy without performance requirements doesn’t produce results. Who could have guessed?  Naturally, the U.S. “stimulus package” included even more money with a promise of more to come.

Cheerio and ttfn,
Grant Coulson
Cui Bono–Cherchez les Contingencies


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