Category Archives: Economics

The Two Californias

And one of them is making the other into part of the Third World:

Many of the rural trailer-house compounds I saw appear to the naked eye no different from what I have seen in the Third World. There is a Caribbean look to the junked cars, electric wires crisscrossing between various outbuildings, plastic tarps substituting for replacement shingles, lean-tos cobbled together as auxiliary housing, pit bulls unleashed, and geese, goats, and chickens roaming around the yards. The public hears about all sorts of tough California regulations that stymie business — rigid zoning laws, strict building codes, constant inspections — but apparently none of that applies out here.

It is almost as if the more California regulates, the more it does not regulate. Its public employees prefer to go after misdemeanors in the upscale areas to justify our expensive oversight industry, while ignoring the felonies in the downtrodden areas, which are becoming feral and beyond the ability of any inspector to do anything but feel irrelevant. But in the regulators’ defense, where would one get the money to redo an ad hoc trailer park with a spider web of illegal bare wires?

As far as I’m concerned, the people in Sacramento are criminals against humanity. But the Californians continue to reelect them, voting to hit the iceberg.

[Update a few minutes later]

Here’s some more:

I think it fair to say that the predominant theme of the Chicano and Latin American Studies program’s sizable curriculum was a fuzzy American culpability. By that I mean that students in those classes heard of the sins of America more often than its attractions. In my home town, Mexican flag decals on car windows are far more common than their American counterparts.

I note this because hundreds of students here illegally are now terrified of being deported to Mexico. I can understand that, given the chaos in Mexico and their own long residency in the United States. But here is what still confuses me: If one were to consider the classes that deal with Mexico at the university, or the visible displays of national chauvinism, then one might conclude that Mexico is a far more attractive and moral place than the United States.

So there is a surreal nature to these protests: something like, “Please do not send me back to the culture I nostalgically praise; please let me stay in the culture that I ignore or deprecate.” I think the DREAM Act protestors might have been far more successful in winning public opinion had they stopped blaming the U.S. for suggesting that they might have to leave at some point, and instead explained why, in fact, they want to stay. What it is about America that makes a youth of 21 go on a hunger strike or demonstrate to be allowed to remain in this country rather than return to the place of his birth?

I think I know the answer to this paradox. Missing entirely in the above description is the attitude of the host, which by any historical standard can only be termed “indifferent.” California does not care whether one broke the law to arrive here or continues to break it by staying. It asks nothing of the illegal immigrant — no proficiency in English, no acquaintance with American history and values, no proof of income, no record of education or skills. It does provide all the public assistance that it can afford (and more that it borrows for), and apparently waives enforcement of most of California’s burdensome regulations and civic statutes that increasingly have plagued productive citizens to the point of driving them out. How odd that we overregulate those who are citizens and have capital to the point of banishing them from the state, but do not regulate those who are aliens and without capital to the point of encouraging millions more to follow in their footsteps. How odd — to paraphrase what Critias once said of ancient Sparta — that California is at once both the nation’s most unfree and most free state, the most repressed and the wildest.

Insanity.

[Update a few minutes later]

Hasta la vista, Failure:

Schwarzenegger never grew beyond the role of a clueless political narcissist. As the state sunk into an ever deeper fiscal crisis, he continued to expend his energy on the grandiose and beyond the point: establishing a Californian policy for combating climate change, boosting an unaffordable High-Speed Rail system, and even eliminating plastic bags. These may be great issues of import, but they are far less pressing than a state’s descent into insolvency.

The Terminator came into office ostensibly to reform California politics, reduce taxation and “blow up the boxes” of the state’s bureaucracy. He failed on all three counts. The California political system–particularly after the GOP’s November Golden State wipeout–is, if anything, more dominated by public employee unions and special interests (including “green” venture capitalists) than when Gray Davis ruled. Taxes, despite efforts by members of Schwarzenegger’s own Republican Party, have steadily increased, mostly in the form of sales and other regressive taxes. The bureaucracy, with its huge pension costs, continued to swell until this year even as state unemployment climbed well over double digits.

Schwarzenegger’s fiscal street cred was undermined by his support for unessential new bond issues for such things as stem cell research and high-speed rail. He threw financial prudence out the window in order to appease his business cronies and faithful media claque, particularly those working for mainstream eastern media.

The idiotic climate bill, which the voters idiotically continue to support in November (mostly because of the deceptive add campaign) was the last straw for me. Girlie man. And I’ll bet that Maria was a big part of the reason.

The Race Heats Up

…and Sir Richard moves on:

Dulles, Va.-based Orbital is teaming with Virgin Galactic of New Mexico on the Commercial Crew Development 2 (CCDev 2) project. Virgin Galactic will market commercial rides on the spacecraft, conduct drop tests of the orbital space vehicle using its WhiteKnightTwo aircraft and offer transport services for the space vehicle, industry sources said. Although Orbital expects to launch and land the spacecraft at Cape Canaveral Air Force Station, Fla., in the event of an abort, WhiteKnightTwo would be used to ferry the spaceship between its landing location and the Cape.

Virgin is also expected to announce this week a separate CCDev 2 bid led by Sierra Nevada Corp., the big winner in NASA’s first round of Commercial Crew Development awards earlier this year. The Sparks, Nev.-based firm garnered $20 million in CCDev 1 funds to mature its Dream Chaser orbital spacecraft, a six-passenger lifting-body vehicle based on NASA’s HL-20 concept from the early 1990s that the company has been working on for several years.

I can’t reveal the source, but I am reliably informed that at Burt Rutan’s retirement dinner last week, Sir Richard phoned it in from Necker Island, with a video lamenting Burt’s abandoning the field (though Burt had always been on record as not knowing how to do orbit — at heart he was always an airplane guy, and one of the best ever). With the hybrid engine problems, I take this as a sign that, while he still hopes to make his mark in the suborbital world, his focus has shifted to a higher velocity game. It can’t be a result of SpaceX’s success last week, because both deals have to have been in work for months, but I suspect that the week of the Dragon had some influence as to when to make announcements.

The Congress will do what it does when it reassembles in January, but with Bigelow’s habitats beckoning, I doubt that anything they do will have much influence over our future in space, at this point. At worst, they will only be able to continue to waste the taxpayers’ money.

Health Care And Overreach

Twice now, while there were other factors in both cases, the Democrats have been severely punished in elections over their attempt to socialize medicine.

First, in 1994, they lost both houses of Congress because of HillaryCare, which fortunately didn’t pass.

They learned the wrong lesson from 1994, deluding themselves that they lost not because they attempted to take over a sixth of the nation’s economy, and one on which people depend for their very health and lives, but because they had failed to do so. So in 2010, they applied this false lesson to double down, deluding themselves this time that if they passed the latest unconstitutional monstrosity, it would be the key to electoral victory. Even Bill Clinton fantasized (or at least pretended to, perhaps as a way of sabotaging the Obama administration?) that it would magically become more popular once it was passed, and Queen Nancy assured us, holding her giant gavel, that we would find out what was in it then, and like it.

This time, they lost the House even more dramatically, and kept the Senate only because of a combination of safe Dem seats up that year and some flawed Republican candidates. The fact that the law remains on the books, with a president in the White House prepared to veto any repeal of it, his signature “victory” (ignoring the fact that it was rammed through the Congress in a partisan manner via undemocratic procedural gimmicks with very little White House guidance or input), will just make things that much worse in two years in the Senate, with many more vulnerable Democrats up for election, perhaps even providing the Republicans with a filibuster-proof majority.

So what false lesson will they take from this latest setback on their “progressive” road to serfdom? My prediction: the polls are all wrong — the bill was unpopular not because it passed, but because it wasn’t socialistic enough, lacking a “public option” (read “government option” or inevitable slide down the steep greased slope to single-payer). Because in their ideology, the “reality-based community” ise impervious to empirical data, or reason, or reality. It’s the thing that saves us from them, ultimately, in a country where the voice of the people is ultimately heard.

[Update a while later]

And here is Chris Gerrib in comments, right on cue, to validate my prediction.

A Blow To Lawlessness And Socialism

…and a victory for the Constitution:

A federal judge declared the Obama administration’s health care law unconstitutional Monday, siding with Virginia’s attorney general in a dispute that both sides agree will ultimately be decided by the U.S. Supreme Court.

I would have been surprised (and dismayed) had it gone any other way. Let’s get it to appellate and the Supreme Court quickly, before Obama is able to stack it with more Elena Kagens who, as Jeff Sessions demonstrated, don’t seem to think that there are any limits whatsoever to the federal government’s reach into individuals’ personal decisions.

[Update a few minutes later]

Great minds…apparently Cuccinelli has requested a direct appeal to SCOTUS. This is unusual, but it may happen, given the magnitude of the decision and its impact.

[Update a couple minutes later]

More from Bryan Preston. I love this display of idiocy by Josh Marshall:

Josh Marshall, in a state of shock, says that “no one” took the constitutional argument against ObamaCare seriously. Obviously a majority of the voters did, a couple dozen state attorneys general did, and a federal judge has as well.

It’s one thing to argue that it’s constitutional. It’s another to be so willfully blind as to imagine that “no one” thought it wasn’t. This kind of delusion is one of the reasons they got “shellacked” last month.

[Update a few minutes later]

A link roundup at How Appealing.

[Update a while later]

It’s unconstitutional and unpopular. What’s not to like?

But of course, as Nancy said, we had to pass the bill to find out what’s in it. That’s the way it is with bills of thousands of pages that no one reads.

[Update a few minutes later]

Memo to Bob Gibbs, who has now gone all Orwellian on us, rebranding the “individual mandate” “individual responsibility.” Even granting for the sake of argument only that I have such a responsibility, the Constitution still doesn’t allow the federal government to compel me at gunpoint to be “responsible.” Sorry, no sale.

Time Warp

I just noticed that space historian Roger Launius has a blog, which I’ve added to the roll on the left. And last week, he had a very peculiar post.

It’s actually a generally not-bad history of NASA’s (and the nation’s) continued attempts to replace the Shuttle, but it contains these words:

Without a doubt, moving to a next generation human launcher will cost a significant amount of money. It always has.

…No doubt, building a new human-rated launcher will require a considerable investment. If the United States intends to fly humans into space as the twenty-first century proceeds it must be willing to foot the bill for doing so.

There are two striking omissions in the narrative. First is the complete lack of mention of commercial space or privately developed systems, even failed ones. They don’t exist at all. It might have made sense to write such a piece in the early eighties, maybe even the early nineties, when it was still unimaginable in the conventional wisdom that there would be multiple solutions to the Shuttle replacement problem, let alone private ones.

But this is 2010. And this blog post was written only two days after the successful flight of the Falcon 9 and Dragon. It’s as though it didn’t happen, and remains so unlikely to that it isn’t worthy of mention in the context of the discussion.

So what does he think is a “significant amount of money”? Or a “considerable investment”? Because any rational analysis, based on SpaceX’s costs to date, would indicate that they are less than a billion dollars away from having a “new human-rated launcher” (ignoring the archaic and useless notion of “human rating” a twenty-first-century launcher designed to the current state-of-the-art in reliability). But no, because “it always has,” it always will.

It’s amazing how myopic the conventionally wise can be.

[Update a while later]

Speaking of myopic space historians (or policy analysts or both, depending on what you think he is), I hadn’t previously seen this quote from John Logsdon cited by Jeff Foust at today’s issue of The Space Review:

Others question just how “commercial” such systems could really be. “I think one of the worst things that happened in managing this revolutionary proposal with respect to human spaceflight is to call the transportation service ‘commercial,’” John Logsdon, the former director of the Space Policy Institute at George Washington University, said in a space policy forum earlier this month hosted by the Marshall Institute. “There is no obvious market” right now for crewed flights beyond NASA’s needs, he claimed, and allowing that question to dominate the policy debate “is one of the policy failures of the last year.”

Well, let’s see. Space Adventures has had several customers for the Soyuz flights, and has more who would like to fly, but the supply seems to be the choke point. Bob Bigelow has MOUs with several nations who would like to lease his facilities who clearly can afford it, but in order to use them, their “astronauts” (or whatever they want to call them) will need rides to and from. In addition, Bob has offered hundreds of millions of dollars of his own (existing) money for the capability to offer such rides. Maybe John doesn’t want to call that a market, “obvious” or otherwise, “beyond NASA’s needs,” but it sure looks like one to me.

The Last Action Hero Governor

Thoughts on the rise, and disastrous fall, of the Governator:

One man has the right to toast to a case of schadenfreude. California Congressman Tom McClintock, running against Schwarzenegger in the 2003 recall, warned voters before the election that Arnold was a liberal wolf in conservative sheep’s clothing. McClintock predicted that a Governor Schwarzenegger would be far and away from the second coming of Governor Ronald Reagan.

McClintock’s prophecy proved to be more true than even he most likely thought possible. To the shock and dismay of sensible government advocates around the state, Arnold Schwarzenegger’s leftist metamorphosis paved the way for California’s incredible decline. Like a script from the several horrible Terminator sequels, Governor Schwarzenegger started strong only to end up on DVD shortly thereafter.

And we get stuck with the residuals.