Category: folly

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Accountability folly local leaders moral hazard porkbarrel politics responsibility term limits too much government

Most Messed Up

Illinois, budget crisis, garbage, term limits, spending, responsibility, Junk Bond, Moody's

“Politicians are notorious for making promises they can’t keep,” Matt Egan reports at CNN Money. “But they really outdid themselves in Illinois — and now the state is paying for it.”

Egan dubs the state “America’s most messed-up.”*

No wonder the state has the worst outbound migration in the nation — or, as Egan puts it: “people are leaving in droves.”

On June 1, Moody’s and S&P Global Ratings downgraded the state’s credit rating to one notch above so-called “junk bond” status. “Illinois has suffered 21 downgrades from the three major ratings agencies since 2009,” the Illinois Policy Institute informs, and now has the lowest credit rating of any state, making it more expensive to borrow. Even with passage of a budget — finally, after three years of the legislature failing to fulfill its constitutional duty — the threat of a further downgrade still looms.

“After decades of historic mismanagement, Illinois is now grappling with $15 billion of unpaid bills and an unthinkable quarter-trillion dollars owed to public employees when they retire,” the article explains.

Decades of mismanagement? Perhaps the problem was inexperienced legislators, lacking the necessary expertise to do their crucial jobs, because of term limits. Except that Illinois doesn’t have term limits.

In fact, Illinois sports the nation’s longest-serving Speaker of the House in modern times. Mike Madigan has been speaker for 32 of the last 34 years, since 1983. Call him “Mr. Experience.” Madigan is recognized as the most powerful man in state government.

All that leadership experience . . . leading citizens to experience much pain and suffering.

This is Common Sense. I’m Paul Jacob.

 

* That’s in the headline. In the article, Egan explains the mess as “the inevitable result of spending more on pensions and services than the state could afford — then covering it up with reckless budget tricks.”

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Accountability folly free trade & free markets ideological culture media and media people national politics & policies

Next Bubble to Pop?

bubble, Paul Krugman, recession, student loans, debt, folly, David Stockman

There was a great and wondrous moment, a decade and a half ago, when economist Paul Krugman, Nobel Laureate and New York Times’s unregistered shill for the Democratic Party, suggested that what the economy really needed was another housing bubble.

What he wrote, specifically, was this: “To fight this recession, the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”

Krugman later reinterpreted that statement in a clever (if not convincingly honest) way. After the subprime loan industry collapsed in 2008, he attributed that bust to financial market malfeasance, not the Fed-inflated bubble we got . . . and that he had previously called for.

Now we are looking at several ready-to-burst bubbles:

  • The student loan debt problem seems scary.
  • The sovereign debt problem is undoubtedly more dangerous and far larger, but is perhaps still able to take on more fake money — all the world’s 1s and 0s have to go somewhere!
  • So the current bets seem to be on a huge auto loan industry bubble, about to pop.

Loan terms have increased in duration, and the average amount new car buyers are financing has jumped over 17 percent in five years. The idea has been “to continually lower monthly payments,” says David Stockman, “so people can get behind the wheels of vehicles they can’t really afford.”*

Which bubble does Krugman favor? I don’t have the stomach to check.

But, be certain, as we play pop goes the bubble, he’ll play pop goes the weasel.

This is Common Sense. I’m Paul Jacob.

 

* Stockman seems to be echoing warnings made by Eric Peters, of Eric Peters Autos.

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folly ideological culture media and media people meme national politics & policies

CNN, You’ve Been Trolled

CNN, Trump, meme

The Cable News Network, known popularly and un- as CNN — and satirically as the “Clinton News Network” and “Fake News” — so hysterically hates the president that it has become completely unhinged.

Well, unhinged from decency and journalistic standards, anyway.

The latest slips downward?

First, some pseudonymous guy* on Reddit created a little gif** that placed a CNN-logo on the head of a wrestler whom Donald Trump “took down” in some weird bit of nonsense publicity the entertainer-entrepreneur was prone to, pre-presidency. Trump then retweeted a version of the gif, calling CNN (once again) “fake news.” This made CNN look silly,*** so CNN tracked the originator down and pressured him to make a humiliating apology — for it and other, more tasteless contributions. He deleted most of what he had done on Reddit.

CNN looks petty: a bully. And clueless about the free-for-all that is the Internet.

The Twitterverse erupted against the news outfit.

This went super-viral on July 4, the same day that CNN tried to humiliate Mr. Trump by tweeting a quote from Abraham Lincoln: “Let the people know the facts, and the country will be safe.”

How apt!

And yet . . . Lincoln did not say it. Not exactly. The “fake news” network faked a presidential quote.

CNN apparently doesn’t understand that responding to trolls feeds the trolls and makes you look bad, to boot.

I suppose you could blame Trump for all this. His ridiculous tweets and whoppers have so corrupted the culture that his enemies (CNN being the obvious media leader) have adopted his methods.

But I won’t. Not this time.

Just blame the people at CNN.

This is Common Sense. I’m Paul Jacob.

 

* He referred to himself as a “shitposter,” which is what satirists and trolls on the Web are called.

** A “gif” is an image file, and has been around since the beginning of the World Wide Web. Nowadays, when we talk about “gifs” we usually are referring to brief animated gifs.

*** Frankly, it made the president look silly, too.

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CNN, Trump, meme

 

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Accountability education and schooling folly local leaders moral hazard

Ugly Scrutiny

Prince George’s County Public Schools, grading, education, incentives,

Prince George’s County Public Schools have increased their graduation rates faster than all other schools in Maryland. Measuring from 2013 to 2016, the graduation rate jumped from 74.1 percent to 81.4 percent.

Great! 

Well . . . a fly has stuck itself into the soothing salve of their success — what county principals called an “unfair, ugly scrutiny.” Said scrutiny came from the Old Line State’s Board of Education, which voted to pursue an investigation* into what the Washington Post described as “grade tampering” to “drive up graduation rates.”

Keith Maxwell, the county schools’ CEO, says he welcomes the investigation. 

Dozens of whistleblowers have reportedly come forward. Several spoke with the Post, anonymously, for fear of retaliation: 

  • “We knew that it wasn’t real,” said a teacher at a high graduation rate school. “It’s just common knowledge that they push kids through who shouldn’t be pushed through.”
  • “I’m not averse to helping a student pass,” one educator explained. “But when people are pressuring you to do it, when it happens behind your back, that’s when it’s problematic.”
  • “For a child not to come to class — maybe been in class three days in a whole quarter — and you’re going to change their grade?” questioned another teacher. “It’s not right. If they don’t come to school, and they don’t do the work, they deserve to fail.”

She added, “It doesn’t help them.”

Which is the point: the students are being cheated. If graduation doesn’t mean anything, then . . . their diplomas don’t mean anything.

This is Common Sense. I’m Paul Jacob.

 

*The investigation had been requested by Governor Larry Hogan.

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Accountability folly general freedom ideological culture moral hazard nannyism national politics & policies privacy responsibility too much government

UK Death Panel

healthcare, socialism, rationing, government

Six days ago, the European Court of Human Rights sided against the parents of Charlie Gard, a severely ill boy, refusing to allow them to take their infant son to America where he could receive full (and privately funded) experimental treatment. The court ruled that removing the child from the hospital would cause him “significant harm” — and authorized the termination of life support.

Yesterday, this site quoted Ben Shapiro on the case. Shapiro sees this sad story as a grand demonstration of what is wrong with government-funded and -managed health care:

Bernie Sanders tweets about how nobody should be denied care because they can’t afford it? But that’s what happens all the time under socialized medicine — the difference being, it’s not about you not being able to afford it, it is about the government not being able to afford it.

Economists tell us that, in a world of scarcity, there will be rationing, willy nilly: either by price (according to consumer and producer choices) or else by government diktat.

Last week, the European Court of Human Rights did its due diligence to ration resources — serving as a Death Panel.

The scheduled to pull the plug on Charlie last Friday, but there’s been a last-minute reprieve — no doubt a result of pressure from America and the Vatican.

Though the doctor who testified before the court insisted that any American medical institution would have provided the treatment he offers, the best the Gards can apparently hope for, now, is to be allowed to take Charlie home to die.

Think of it as socialized medicine in action.

This is Common Sense. I’m Paul Jacob.

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Accountability folly free trade & free markets general freedom local leaders moral hazard nannyism national politics & policies property rights responsibility too much government

Against Flexibility?

Seattle, Oregon, unintended consequences, work hours, scheduling, Fair Work Week, labor

Do politicians have any idea what they are doing?

In Oregon, Senate Bill 828 just passed the Senate and is now being favorably reviewed in the House. The law would require “large employers in specified industries to provide new employee[s] with estimated work schedule and to provide current employee with seven days’ notice of employee[’s] work schedule.”

But will the measure help employees? Really?

The notion is called the “Fair Work Week.” Pushed by Democrats, it has gained bipartisan support. The basic idea: allow time (under full force of law) for workers to manage their own schedules and personal economies.

Trouble is, in the name of making work easier to manage, it attacks flexibility.

Which is something many workers want. More than notification.

Indeed, the study commissioned by the City of Seattle for their similar regulatory scheme acknowledged that reducing flexibility is not necessarily a godsend for workers.

“A more predictable schedule,” the report noted, “is not always one that an employee would prefer. A schedule known with certainty is a cold comfort if it yields too little income to survive.”

The report went on to explain that many of the labor market’s scheduling inconveniences are themselves the result of other government regulations, such as ObamaCare.

Christian Britschgi, writing at Reason, predicts that passing the Oregon law would mean “a fairer worker week” for some, but for others, “no work week at all.”*

Meanwhile, the Seattle study noted that it was workers in small businesses who are most likely to be discomfited by last-minute scheduling changes. The Oregon law applies only to big businesses.

This is Common Sense. I’m Paul Jacob.

 

* A standard, negative consequence of most “well-intended” legislation.

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