Category Archives: Economics

The Grubergate Insider Problem

A long but useful essay from Megan McArdle.

We have a similar issue in the space industry. I see all the hype about the upcoming Orion flight, and as an industry analyst (though not quite an insider) I know that it’s nonsense, but it’s hard to get people to realize that NASA officials are often forced to dish nonsense to placate rent-seeking congresspeople; as outsiders, they are still in awe of the government agency that put men on the moon four-and-a-half decades ago.

There is also this:

…when I see journalists saying that Gruber’s revelations don’t matter because he’s just kind of awkwardly saying something that everyone knew, I get a little jittery. I am not “everyone,” and neither are any of those journalists. We’re a tiny group of people with strange preoccupations who get paid to spend our time understanding and explaining this stuff. The fact that we may have mentioned it once to our readers, in the 18th paragraph, does not mean that readers read it and understood what it meant. (In fact, if you actually interact with your readers, you’ll be astonished at how little they remember of what you told them, especially if you didn’t go out of your way to headline it. Their minds are already crammed full of information that they need to, you know, live their lives. So they tend to take away a few big bullet points, not the piddling details.)

I see the same thing when I argue with people on Twitter, or in comments — we often go around in circles because they seem to have forgotten some previous point I’d already made, or read what they wanted to read instead of what I actually wrote. The dismaying thing is that these are often people who love space, but they end up being cheerleaders for things (like SLS/Orion) that are roadblocks rather than enablers.

NASA’s Mission To Nowhere

Francis seems to suffer from a lack of imagination:

Space analysts said planning and executing a manned mission to Mars would take years and cost hundreds of billions of dollars.

French wants NASA to head in that direction, and he sees next month’s Orion launch as the inaugural milestone in a long journey.

Still, he’s circumspect.

“Unless we build the rockets and test the spacecraft needed to get into deep space, sending humans to Mars will remain a dream for centuries to come,” French said. “Whether Orion will be the vehicle, and whether it will survive the brutal budgetary cycles of Washington politics for the many years ahead that it will need to be funded, is impossible to say. It’s hard to imagine any other method succeeding.

Space historians often suffer from this malady.

Gruber

Dear Democrats, don’t even think about trying to run away from him.

[Afternoon update]

The epic search of Diogenes for an honest man is over.

[Update a few minutes later]

It gets worse:

I think we’d probably like to get rid of the tax exempt status for health care benefits.

Note that McCain proposed doing just that in the 2008 election. His idea was that we would get rid of this exemption and instead give people an additional tax credit valued at the average cost of health insurance. Thus, people would be held harmless by the change, but we’d get rid of this government-made distortion in how employers pay their employees.

Barack Obama, get this, demagogued that plan and accused McCain of wanting to increase taxes on people.

And meanwhile, he schemed to achieve the same thing, except without that part about giving people an additional tax credit which would offset increased taxes, and, get this, without telling people he was getting rid of the tax exemption.

Once again — subverting democracy by completely destroying the concept of Consent of the Governed.

All in a day’s work.

[Update a while later]

Obama himself was leading the discussion of how to take away the tax benefits.

A Simpler Cheaper Health-Care Policy

It would be a huge improvement over the current mess:

I think that from the libertarian perspective, either of these proposals should be preferable to Obamacare. I’d even argue that they should both be more appealing to progressives. But the administration didn’t want simple, modest and stable; it wanted a massive, transformational legacy. Which is why, four years later, we’re still fighting about it.

Yup.

Changing Junkyards

It’s not the way it used to be.

Longer ago than I care to think about (OK, four decades or so), I regularly visited a place out in Holly, MI to scrounge parts for my British sports cars. Every other time or so, when I’d go out, and come back with the part I needed, the owner (or manager) would ask me if I wanted a job. The last time I did it was in the nineties, when I went to a place on Hawthorne Blvd in Hawthorne to get a distributor for my Honda Accord, whose shaft had sheared off on the 405 in Orange County.

Another Green “Stimulus” Fail

Google and others want a taxpayer bail out for their desert bird roaster.

That looks like a nice bill for the new Congress to make Obama have to sign.

More at (appropriately) Powerline:

The sheer temerity of the request is almost outweighed by the unintended humor of their explanation for the failure of their project: the Sun isn’t shining as much as they thought it would. But I think they’re barking up the wrong tree: rather than ask for your money so they don’t have to use their money, they should ask the guy who said he would make the oceans recede, to order the Sun to stop slacking — rudely continuing to shine as it has for five billion years — and brighten up for Google, NRG, and Obama’s legacy.

What fools these mortals who support this insanity be.