Category Archives: Economics

Economics, Political Commentary, Science And Society, Social Commentary, Space, Technology and Society

Green Fascism

13 Comments

There’s an interesting post over at New Scientist on the new eugenicists. What’s even more interesting, though, are the numerous comments, which repeat many of the myths about population growth and control, and feasibility of mitigating it through space technology, including space (to use the politically incorrect word) colonization.

I don’t really have time to critique in any detail, other than to note that anyone who makes feasibility arguments on the latter subject by referring to Shuttle costs is completely clueless. Sadly though, years ago, Carl Sagan did exactly that.

Business, Economics, Political Commentary, Science And Society, Technology and Society

Fascists Of The Corn

3 Comments

David Freddoso is still angry about our insane and, in my opinion, criminal ethanol and sugar policies:

The problem is that our sugar industry has even better lobbyists than big ethanol. They enjoy price supports, which we pay for both through the Treasury and in the supermarket. The price of our sugar is usually twice that of the world market. The sugar growers love it — even if they cannot sell all of their sugar, they have a guaranteed government buyer at an inflated price. The corn growers love it too, because high U.S. sugar prices push our food industries to use high-fructose corn syrup (ever seen that on a product label?) as an alternative sweetener — yet another artificial support for the world price of corn.

Not to mention wreaking havoc on the Everglades. Price-supported sugar cane is using up a lot of the water that both south Floridian humans and animals need, and they do this with the same political clout that they use to get the subsidies and tariffs, for an industry that is not all that big in terms of the economy.

Even if we want ethanol, we can’t solve the problem by importing sugar, because there are tariffs in place. We can’t import the ethanol itself because there’s a high tariff against that, too. Wherever you turn, there’s no way out — Americans don’t enjoy economic freedom, we live in a managed economy.

It makes me especially proud of my country when I see Sen. Chuck Grassley (R-Iowa) call foreign delegates’ concerns over a potential doubling of world hunger “a joke…”

Let’s call these people out for what they are–Republicans and Democrats alike–fascists. Not that there’s anything wrong with that.

[Update a few minutes later]

Biofool.

[Update early evening]

Oh, wonderful:

Key House and Senate farm bill negotiators reached agreement today on the main elements of the farm bill…[T]he five-year bill would raise the target prices and loan rates for northern crops beginning in 2010, raise the sugar loan rate three-quarters of a cent and include a sugar-to-ethanol program.

Oh, that’s just great. We have a program that makes us overpay for sugar, and now we’re going to start a new program to subsidize the ethanol we create from it — because without the subsidy, the inflated sugar price we’ve created will make the ethanol unprofitable.

Just when you think it can’t get any worse, they always find a way.

Economics, Political Commentary, Technology and Society

A Policy Disaster

5 Comments

Deroy Murdock writes on the ethanol scam, and its global effects on food and fuel prices.

[Update a few minutes later]

If this pans out, ethanol will make a lot more sense, won’t be competing with food, and won’t require any subsidies:

Along with cellulose, the cyanobacteria developed by Professor R. Malcolm Brown Jr. and Dr. David Nobles Jr. secrete glucose and sucrose. These simple sugars are the major sources used to produce ethanol.

“The cyanobacterium is potentially a very inexpensive source for sugars to use for ethanol and designer fuels,” says Nobles, a research associate in the Section of Microbiology and Molecular Genetics.

Brown and Nobles say their cyanobacteria can be grown in production facilities on non-agricultural lands using salty water unsuitable for human consumption or crops.

Bring it on.

[Evening update]

David Freddoso has an appropriately outraged follow-up to the Murdock piece:

Our government’s negligence and perhaps even malicious misdirection of societal resources toward a worthless, unwanted product — ethanol — will cause millions of people to go hungry tonight.

The way things are going, this could become the worst chapter yet in the sad, ruinous history of our bipartisan agricultural welfare programs. For those who write in and protest that free-market capitalism is an uncompassionate, un-Christian economic system, I submit that you are currently witnessing the alternative.

Indeed. End the tariffs, end the subsidies. Let the market work.

Economics, Political Commentary, Science And Society

Feel-Good Disaster

18 Comments

Virginia Postrel writes about the economic ignorance of the global warm-mongers, a group that unfortunately includes all three presidential candidates. I just hope that Phil Gramm or someone can get McCain to come to his senses on the issue once he’s actually in office.

The connection between higher prices for energy and reduced carbon dioxide emissions may not have hit the national consciousness yet, but the LAT’s Margo Roosevelt reports that California utilities–and eventually their customers–are beginning to realize this isn’t just a symbolic issue.

…The DWP, to whom I pay my electric bills, wants out of the carbon dioxide caps. It apparently thinks the law shouldn’t apply to socialist enterprises.

Isn’t that always the way? The laws are for “the little people.”

Economics, Political Commentary

The Missing Word

21 Comments

With a computer mouse, you can precisely position the cursor wherever you want. The motion of the cursor exactly mimics the motion of the mouse in your hand. It is a positional controller.

But in many computer games, you have no direct control over position. The joystick controller only controls the rate of motion. You have to provide a direction, and speed, and hope that it will get to the desired location at the desired time. As anyone who has played such games knows, position control using a rate controller is much less precise, and often not even accurate if you’re not a good judge of such things.

In last night’s political debate (as in almost all discussions of this topic), there was a lot of talk about “cutting taxes,” and “raising taxes.” Not to pick on him in particular, but as an example, here’s the reporting by Jim Geraghty:

Hillary laughs heartily at McCain’s comment about “they’re going to raise your taxes, and they have the aud-ic-i-ty, the audacity, to hope you don’t mind!”

With her laugh, she triggered a thousand primal screams on liberal blogs.

Steph asks if she’ll make a pledge to never raise taxes for those making under $200,000 per year. She says she’s “absolutely committed to not raising taxes on those making less than $200,000.”

Obama echoes the pledge, and says he’ll cut taxes for those folks.

I don’t trust either, but I’m rather surprised that they both were willing to be pinned down in the equivalent of “read my lips, no new taxes.”

Wow. Charlie Gibson notes that when the capital gains taxes were cut under both Clinton and Bush, revenues went up.

These are the GREATEST DEBATE QUESTIONS EVER.

Wow. Hillary: “I would not raise the capital gains tax above 20 percent, if I would raise it at all… I don’t want to raise taxes on everyone.” She rips Obama’s plan to raise payroll taxes.

Emphasis mine, in all cases. Every one of these statements is absurd. No one, not the mighty Hillary, not the saintly Obama, has the power to raise or cut taxes. They don’t have a tax revenue controller. All they can do is increase or decrease tax rates. And they can’t predict with certainty whether or not this will increase, or decrease “taxes” (that is, tax revenues). The absurdity of leaving out this key word is demonstrated starkly in Charlie Gibson’s statement: “when the capital gains taxes were cut, revenues went up.” How can that be? If taxes are cut, by definition, revenues have to go down. But if he had said that when capital gains tax rates are cut, revenues go up, this is perfectly sensible (though counterintuitive to people who don’t understand that tax rates modify behavior).

I expect Democrats (and journalists, who are generally Democrats) to play such word games, but I’m always disappointed when Republicans and so-called conservatives go along with it. People who want lower tax rates (and a more vibrant economy) have to demand them, and stop talking about lower taxes. Yes, it would be nice to cut off funding to the federal government (at least if we could get spending under control), but that’s a separate issue. By conflating tax revenues with tax rates, we grant far too much power to the big government types, when we should instead be pointing out their powerlessness. There are many unintended consequences of government action, and it is always useful to point out that this is just one more–that the federal government cannot directly control how much it taxes people (that is, how much money it actually confiscates)–it can only control the the rate at which it does so.

This is just one more example of how we small-government types have to start taking back the language.

Economics, Space

Long Term Space Budgeting

6 Comments

In Monday’s part 1 of “VSE and the Retirement of Baby Boomers,” Charles Miller and Jeff Foust port the conventional wisdom about budgeting to the space discussion. These are two of the most well-read, connected and smart people on space topics. I’d like to give folks addressing this issue some more texture to add some items that are not part of the conventional intergenerational budget debate which can be summarized perennially as “vote for me or things will all go to hell pretty soon if they aren’t already there”, but every year real personal income rises and real government spending minus interest payments rise; life expectancy goes up and almost all the Cassandras are proven wrong, but by then they’ve long since moved on to the next pending calamity. Here are the unconventional texture points:

  • Personal income is continuing to rise ahead of inflation such that every generation earns about twice as much per capita as the one before
  • That is, a falling percent of the federal budget should still buy more robotics, rockets, science, human spaceflight, exploration (and settlement?!) even as it buys fewer staffers and is a lower share of GDP
  • Bracket creep, estate tax and alternative minimum tax are going to increase receipts above historical revenues and changes that fix these are likely to fix macro spending issues at the same time
  • The boomers are likely to work part time or full time during retirement years
  • The boomers are more comfortable with the stock market and are likely to earn higher returns there than previous generations of pensioners
  • The boomer echo will put more workers in the worker to retiree ratio again as the boomers die off before the boomer echo generation retires
  • Between Federal, State, County and Local taxes, we are taxed together at above the monopoly rate; if there were a coordinated decrease, revenues would increase for each
  • Private spending on human spaceflight will rise and is already about 0.3% of NASA spending; depending on how you count capital spending by people like Bigelow, it’s in the single digit percent
  • First-party State, County and Local spending and incentives for space flight will increase as more states cross the income threshold of the US and USSR economies in the late 1950s which was about 1/8 what it is now for the US. California has already crossed this. Texas and New York will in the next 20 years. If space gets cheaper, Florida may enter the ranks of states that could have their own space programs. Initiative by a vocal minority may rocket this issue into the fore. Oklahoma and New Mexico are more like the USSR in the space race looking at space as a way to look far bigger than their economies suggest and to leap frog other states in an emerging industry. The Soyuz is still flying and is now profitable even as Russia has an economy 1/6 the size of the US (USSR had 1/2 the US economy in 1960) so the space portion of their strategy is validated. And may even work for New Mexico which has about 1/12 the size of the 1960 USSR economy now
  • Boomers dying will likely dry up support for a cargo-cult do-nothing NASA as memories of Apollo die with them; Obama can be seen as a coming attraction of how the next generation will treat NASA
  • Support for ITAR and missile counter proliferation will wane, but existing techniques will ossify as civilian launches start to dwarf military ones as long as there is no space 9/11 which has a mixed effect on cost of flight
  • Competition and achievement from the private sector will put pressure on budgets to achieve more value for the dollar, but at the same time make obtaining that value easier
Economics, Political Commentary, Space

What Fresh Hell Is This?

35 Comments

ATK is making noises about commercializing Ares 1. Unsurprisingly, it’s full of bovine excrement right off the bat:

Ron Dittemore, president of ATK Launch Systems, said the human-rating that led NASA to build the Ares I first stage around the shuttle booster should also be attractive to other customers with “high-value” payloads, including the Defense Dept. and the National Reconnaissance Office (NRO).

“Ares I can deliver humans, can deliver payload to low Earth orbit; it can deliver payload to geosynchronous Earth orbit and beyond – planetary missions – it’s got that much capability,” Dittemore said at the 24th National Space Symposium here. “And what’s unique is that since we’re designing this vehicle with human reliability, proven demonstrated systems, high-value payload customers may see a real attractiveness to putting either DOD or NRO payloads on this launch system.”

First of all, the Shuttle booster is not “human rated.” The Shuttle itself is not, and never has been, human-rated (I’ve said it before, and I’ll say it again: I wish that we could expunge the phrase “human rating” from our vocabulary–very few phrases in the space business are as misunderstood and misused by so many as this one). What he means is that the fact that they have been willing to use the SRB for the Shuttle (despite the fact that in the case of Challenger, it destroyed the vehicle and killed the crew) led them to decide that it was reliable enough to use for Ares.

One of the things that people don’t understand about “human rating” is that it is not (just) about reliability, which is the probability of mission success. Human rating is about safety, which is a different thing. It is about the ability to know when the mission is about to go sour, and the ability to safely get away from the vehicle before it does. So while reliability is nice, what’s much more important is warning time and escapability, from the launch pad all the way to orbit (something that the Shuttle has never had, which is why it’s not human rated).

But satellites aren’t going to have a launch escape system, so they don’t care about human rating. What they care about is reliability, and I have seen zero evidence that Ares is going to be more reliable than either Delta IV or Atlas V. Human rating the latter two vehicles will not involve making them more reliable–it will involve putting in the systems needed for adequate failure onset detection (FOSD) and ensuring that they have adequate performance to eliminate abort blackout zones throughout their trajectory (something much more difficult for the Delta than the Atlas, due to to its underpowered second stage). So from a mission assurance standpoint, Ares has nothing to offer to a satellite owner over the current commercial vehicles.

Moreover, there is no discussion of cost. Even if they can get away with not having to amortize development, because the government paid for it and it’s sunk, how much of an army will a NASA-developed/operated vehicle require? History would indicate a pretty large one, particularly given the politics of the situation. So will a commercial launch have to pay its share of the annual fixed operating costs, or will ATK (unfairly) be able to subsidize and undercut the ULA by only paying marginal costs for the launch, and having NASA pay the freight for the rest? And it will have to use the VAB for processing, and the NASA pad for launch. Will NASA be reimbursed for the use of its facilities? How much?

This seems like a huge potential bucket of worms, and all because NASA decided that it had to develop its own launch vehicle.

Is ATK serious? I doubt it. I suspect that this is just a PR move to maintain political support for it among the rubes inside the Beltway who don’t understand these issues, to show that it has applications beyond the NASA lunar (and ISS) missions. Unfortunately, it may work.

[Update a couple minutes later]

Oh, and how could I forget this? How thrilled will the satellite owners be to put their bird on the paint mixer that is the Ares 1, on top of that five-segment solid, when they can get a smooth ride on a Delta or Atlas?