Category Archives: Business

An Open Letter To Certain Senators

…who are writing open letters to the NASA administrator.

Dear Senators Shelby, Boxer, Feinstein, Warner, Chambliss, and Murray:

Why are you only calling for competition on one particular component of the SenateSpace Launch System? It is a huge project, estimated to cost many billions of dollars. If the taxpayer would be best served by competing the side boosters, why not increase the joy by competing the entire system, including main engines, tanks, upper-stage engines, and design? Why is that only the boosters would benefit from this novel procurement approach? For that matter, why not simply have a competition for the most cost-effective proposal to get humans beyond low earth orbit, or to resupply space station, since these are the reasons that we have been given when asked about the requirements for the SLS. Of course, such a competition might result in no SLS at all, if someone can come up with a cost-effective way of meeting those goals without it, but this is about the taxpayers, right?

Most sincerely and cordially,

Rand Simberg

[Cross posted at Competitive Space]

Uh, Guys?

The supply chain is gone:

To avoid any gap in providing independent repair spacewalks as a safety contingency for the space station, Congress, NASA and the ISS partners should evaluate the option of postponing the launch of STS – 135 until more external fuel tanks and other parts can be built to support additional shuttle flights in 2012.

2012? What are they smoking?

It would be at least two years, probably three, before they could resurrect the tooling and manufacturing needed to do this, and it would cost billions of dollars that NASA does not have, and isn’t going to get. Meanwhile, we’d have thousands of workers sitting around, forgetting how to launch safely. This is just crazy, and disappointing, considering the sources. Do they really so completely lack imagination that they can’t conceive of ways to do EVA and ISS repair and maintenance with what is currently coming on line, and not relying on an unsafe hyperexpensive vehicle? This is the product of emotion, not thought.

[Update early afternoon]

I have a sort-of-related bleg. I’m working on an article about the false lessons learned from the Shuttle, and how they’re continuing to screw up space policy. Suggestions in comments are appreciated. The first and most obvious one is that it proved reusables don’t reduce cost.

Public Support For Space

With the approach of the final Shuttle launch next week, Pew has done a survey of public opinion, that shows continuing support for maintaining our “leadership” in space, whatever that means.

As is often the case with such polls, put together by people who don’t understand space policy themselves, those questioned are presented with a false choice:

Q.17 Thinking about the space program more generally, how much does the U.S. space program contribute to:

a. Scientific advances that all Americans can use

b. This country’s national pride and patriotism

c. Encouraging people’s interest in science and technology

You’d think that if they lacked imagination to come up with anything else on their own, they’d at least provide a d) Other, so they would know to think harder next time. I can think of at least two:

d. Increasing the nation’s wealth and standard of living

e. Increasing the potential for human freedom and opportunity.

I’d like to raise the money to do my own poll, that would actually be useful in guiding policy.

It All Makes Sense Now

Larry J. has figured out what happened to the country:

I think I’ve finally figured out what happened in 2008. We’re all living the ultimate reality TV show. Obama is the hapless boob – think The Truman Show or An Idiot Abroad – with no job experience and nothing to show for his life except for two autobiographies written by age 45 (and it isn’t even certain he wrote them). The pitch for the show must’ve gone something like this:

Pitchman: Hey, I’ve got a great idea! Let’s push to elect someone totally unqualified to be the next president of the United States! We’ll be guaranteed at least a four-year run as we watch him blunder from one stupid thing to another.

Media Exec: Won’t that be hard?

Pitchman: No, I’ve got it figured out. First, we’ll push a black guy as our dupe and call anyone who doesn’t support him a racist. Second, we’ll get the news department to push every negative story we can find or invent to get the country in a bad mood like we did in 1992. Third, we’ll tell everyone how brilliant the guy is and expect everyone to believe it without a shred of evidence. Finally, we’ll point out how “cool” he is to get the young and stupid vote.

Media Exec: Sounds like a plan. What’s in it for us?

Pitchman: We’ll be more influential than ever before!

Media Exec: Who will be the boob?

Pitchman: We’ve found the idea candidate. His name is Obama and he’s the junior senator from Illinois. He reads well from a teleprompter and has a nice looking family but the guy is a total idiot when it comes to economics, history, or actually accomplishing anything. He spent years hanging around radicals and Marxists. He’ll run the country into the ground in no time.

Media Exec: Go for it!

I wish the show would end sooner.

The Wisconsin Disaster

…is only disastrous for unions:

…for one beleaguered Wisconsin school district, it’s a godsend, not a disaster.

The Kaukauna School District, in the Fox River Valley of Wisconsin near Appleton, has about 4,200 students and about 400 employees. It has struggled in recent times and this year faced a deficit of $400,000. But after the law went into effect, at 12:01 a.m. Wednesday, school officials put in place new policies they estimate will turn that $400,000 deficit into a $1.5 million surplus. And it’s all because of the very provisions that union leaders predicted would be disastrous.

In the past, teachers and other staff at Kaukauna were required to pay 10 percent of the cost of their health insurance coverage and none of their pension costs. Now, they’ll pay 12.6 percent of the cost of their coverage (still well below rates in much of the private sector) and also contribute 5.8 percent of salary to their pensions. The changes will save the school board an estimated $1.2 million this year, according to board President Todd Arnoldussen.

Of course, Wisconsin unions had offered to make benefit concessions during the budget fight. Wouldn’t Kaukauna’s money problems have been solved if Walker had just accepted those concessions and not demanded cutbacks in collective bargaining powers?

“The monetary part of it is not the entire issue,” says Arnoldussen, a political independent who won a spot on the board in a nonpartisan election. Indeed, some of the most important improvements in Kaukauna’s outlook are because of the new limits on collective bargaining.

It will be interesting to see if stories like this appear in Wisconsin media, particularly in Madison.

History Making

When it comes to racking up debt, no one can top Tim Geithner:

When Geithner took office the total national debt stood at $10.6 trillion. As of June 30, 2011, it had risen to $14.3 trillion.

In fact, the debt accrued under Geithner is greater than all federal debt accrued in the first 204 years of the nation’s history. The national debt did not reach $3.7 trillion until October 1991, according to historical Treasury data that reaches back to 1791.

Geithner, who reportedly may step down from his position soon, has overseen the accrual of more federal debt (in only 2.5 years) than every Treasury secretary combined from Alexander Hamilton to Nicholas Brady, who was Treasury secretary in October 1991 when the national debt reached $3.7 trillion.

That’s quite a legacy.

Well, at least he thinks that tax rates should go up on small businesses so that we don’t have to reduce the size of the federal government.

He will be missed. But I’m not sure by whom.

Obamanomics

leavin’ on a jet plane:

…the clumsy attempt at class warfare probably wasn’t even Obama’s most disheartening moment during the presser. Several others were at least equally as bad…

But about what one would expect from someone so completely lacking experience or competence for the job: our Class Warrior in Chief.

[Update a few minutes later]

The president’s peculiar press conference:

It all had the feel of a childish tantrum by a person who desperately wishes he were living in a different reality—one in which he is the heroic man of action and his opponents are irresponsible and weak. But the fact is, the president and congressional Democrats have so far utterly failed to offer any path out of our fiscal problems—problems that they have greatly exacerbated. The president proposed a budget in February that would have increased the deficit, and then he retracted it in April and proposed nothing in particular in its place. Senate Democrats have not proposed a budget in two years; they now suggest they finally have one, though apparently it won’t really be brought to a vote. Republicans, meanwhile, have proposed a specific path out of our fiscal mess—averting a debt crisis and setting the budget on a course toward balance through discretionary cuts, budget-process reforms, and gradual but significant entitlement reforms. Rather than negotiate over that budget, the president has chosen to play the demagogue, simultaneously insisting that the budget offers nothing and that it goes too far in cutting government services (medical research, food inspectors, and the weather service are apparently in particular danger, he said yesterday, providing a kind of Salvador Dali map of post-modern lifestyle liberalism).

Now, having added about $5 trillion to the national debt since taking office (nearly doubling the debt), the president wants permission to add another $2 trillion, and he’s upset that rather than being given that permission together with a set of class-warfare tax hikes he is being asked to agree to some spending, budget, and entitlement reforms in return for that permission. Entitlements—the chief drivers of the even greater explosion of debt now coming at us—appear to be off the table altogether as far as he’s concerned. And while the president insists that failing to meet the August 2 debt-limit deadline would unleash a train of calamities not seen since the book of Job, he seems to be willing to risk them all in order to enact a set of tax increases that would yield largely trivial sums of revenue and whose only plausible justification could be the political appeal of envy.

It’s what class warriors do.

The Higher-Education Bubble

More thoughts on the overvaluation of a college degree:

Wolf’s position is firm. An increase in the quantity of graduates will neither create a dynamic, wealth-producing economy nor will it create the conditions for the emergence of lots of dynamic, wealth-producing individuals. Universities are not what they are currently being cracked up to be. But that leads to another problem. So deeply entrenched is the belief that, to use the words of the 1998 Dearing report, ‘Higher education has become central to the economic wellbeing of nations and individuals’, that it is becoming increasingly difficult to recall what the purpose of institutions of higher education might be. Their autonomy as academic bodies, in which one ought to be free to pursue an interest in a subject area to a higher level, has been effaced by their thoroughgoing instrumentalisation as drivers of economic growth and social mobility.

One of the biggest myths is that the subject matter doesn’t matter — that a degree in medieval French literature is just as good, and worth just as much money as one in chemical engineering. It’s not.