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25 Jun 16:45

Great moments in government regulation: The DOL applies 1930s-era rules to a modern, collaborative business model

by Mark J. Perry

In 1997, Rhea Lana Riner, a Texas entrepreneur and mother of three, started a small business that has grown over the years to become the nation’s “premier children’s clothing consignment event venue” according to her website. In a recent USA Today op-ed (“Department of Labor vs. me“), Rhea explains her innovative business model:

We rent a large space for a few days, say an unused department store. Parents with clothes and children’s items to sell sign up online, enter their items into a computerized tracking system and choose their sale price. Then they bring the clothes and other items to the sale location, label them with preprinted price tags and display the clothes. Parents keep 70%; we keep 30%. It is easier than a garage sale, makes more money for parents, and shoppers efficiently find good deals.

A big part of our success are the hundreds of parents — both consignors and shoppers — who voluntarily work brief shifts to help set up before the sale starts. In exchange, these parents get to shop first with more choices and better merchandise.

But now government bureaucrats at the US (and Arkansas) Department of Labor consider the cooperative arrangement of Rhea’s business to be a public menace and have conducted an official government audit of her organization, which determined she is in possible violation of the 1938 Fair Labor Standard Acts by using “unpaid labor.”  She explains:

In January, though, the Department of Labor noticed all this cooperation going on. Months later, investigators concluded that volunteers are “employees” under the Fair Labor Standards Act. This means paying the minimum wage of $7.25 per hour, filling out IRS paperwork and complying with who-knows-what other rules. And all for a pop-up business that lasts days.

Rhea concludes:

Unfortunately, as my situation shows, too many new ideas are being held back by rules that are stuck in the past. When the Fair Labor Standards Act was written in 1938, nobody was imagining a collaborative, social business like mine. And I’m far from the only entrepreneur stifled by outmoded dictates from a world I never lived in.

What’s clear is that America’s entrepreneurs don’t need government as a partner. My business didn’t become successful because of government assistance; it became successful because my customers like the way I do business.

The economy thrives when entrepreneurs and consumers are allowed to cooperate with one another. If we want the real world economy to thrive as much as the innovative Internet world, entrepreneurs need the same freedom to innovate.

Fortunately, US Rep. Tim Griffin (R-Ark.) has come to the defense of “public enemy” Rhea Lana and wrote this letter to the Secretary of the Department of Labor asking for a review of the investigation.

24 Jun 16:14

Ed Snowden Leaves Hong Kong, Seeks Asylum In Ecuador, As US Officials Flip Out

by Tim Cushing
Snowden had a few options available to him in Hong Kong despite facing extradition for espionage and theft charges. Beyond the appeals process that would have held off the inevitable for several years, there were certain built-in safety nets (the "political offense exception" built into the US-Hong Kong extradition treaty and protections against "inhumane treatment" via the UN) ihat could have seen him avoid extradition altogether.

Those no longer matter as Eric Snowden is on his way to Ecuador, via Moscow and Cuba, accompanied by a member of Wikileaks' legal team. The US government was informed about Snowden's departure roughly five hours after he boarded an Aeroflot plane headed to Moscow. According to the statement released by Hong Kong officials, they had no choice but to let Snowden go.
Edward Snowden has left Hong Kong on his own accord for a third country through a lawful and normal channel, and Hong Kong has informed the US Government of his departure...

Since the documents provided by the US Government did not fully comply with legal requirements under Hong Kong law, the Hong Kong Government requested additional information so that the Department of Justice could consider whether the US Government's request met relevant legal conditions.

As the Hong Kong Government did not yet have sufficient information to process the request, there was no legal basis to restrict Mr Snowden from leaving Hong Kong.
It's a rarely seen event, but someone has just told the US government, "Your papers are not in order." That's a hell of a thing to wake up to, especially if you're one of the members of the "harmed" parties. (Supposedly Snowden's actions would harm all Americans from the way the anti-whistleblower contingent makes it sound, but really it's just the NSA and the FBI that have been caught with their particulars exposed.)

Hong Kong officials added one more paragraph to its statement, one which explains why Snowden was given a five-hour head start.
At the same time, it has formally written to the US Government requesting clarification on reports about the hacking of computer systems in Hong Kong by US government agencies. It will follow up on the matter, to protect the legal rights of people of Hong Kong.
In other words, Hong Kong finds the US government's actions more problematic than Snowden's actions, so have fun catching your boy!

Snowden's escape will be an embarrassment to those who publicly stated their confidence that Hong Kong would comply with the orders.
The White House appears to have been caught flat-footed by the latest manoeuvres. On Saturday, President Obama's national security adviser, Tom Donilon, told CBS news he expected Hong Kong to arrest Snowden because it "has been a historically good partner of the United States in law enforcement matters and we expect them to comply with the treaty in this case".
In fact, the US government is looking particularly hapless, what with its stern demands to Hong Kong before Snowden left, followed by similarly pathetic demands to Russia to not let Snowden hop a flight onto his next destination.

So, Snowden is on his way to Ecuador, seeking asylum in the same country that opened up its doors, heart and embassy Hide-a-bed to Julian Assange. His itinerary was hardly direct, but it made stops in nations unlikely to greet him at the airport with handcuffs and a seat on the next flight to the United States. Traveling to Russia and Cuba made it much less likely that someone would "officially" recognize the fact that the US government had revoked Snowden's passport prior to his boarding the flight to Russia. (Of all Snowden's worries, traveling with a revoked passport has to be so far down the list as to be imperceptible.)

He's left behind a wealth of information, all of which the US government would rather have kept secret. A trail of angry politicians and security officials also follow close behind, decrying his every move, including CISPA sponsor Mike Rogers.
"When you look at it, every one of these nations is hostile to the United States," Rogers said on NBC's "Meet the Press."

"If he could go to North Korea and Iran, he could round out his 'government oppression tour.' So when you think about what he says he wants and what his actions are, it defies logic."
I doubt Snowden sympathizes with oppressive governments, but he does know who's more likely to ignore US pleas, threats or attempted intervention. Considering what's happened to other whistleblowers, the US government looks a bit oppressive itself, at least from Snowden's viewpoint. Still, Rogers thinks Snowden should just come home and get what's coming to him.
"If he really believed he did something good, he should get on a plane, come back, and face the consequences of his actions," Rogers said.
His statement makes no sense. Rogers has already declared Snowden guilty as charged and seems to think Snowden should martyr himself for his cause via the No Good Deed Goes Unpunished Whistleblower Retribution Plan that George Bush and (especially) Barack Obama are so fond of. Whistleblowers like Snowden should "face the consequences" while the government's excesses and overreach should be allowed to continue on unpunished in perpetuity.

There is a potential downside to Snowden's actions. By seeking asylum in a country with a somewhat antagonistic relationship with the US, there's always the possibility that he'll be used as a pawn when politically convenient. Ecuador has already proven it has a rather flexible definition of "asylum," one which allows it to suddenly revoke "refugee" status if certain governments ask nicely. Given the right circumstances, his hosts could decide to offer his freedom in exchange for something it really wants, or to avoid something it doesn't.

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24 Jun 14:10

Anglo-Irish Picked Bailout Number "Out Of My Arse" To Force Shared Taxpayer Sacrifice

by Tyler Durden

The Irish people, who sacrificed their sovereignty and billions of Euros, are waking this morning to a stunning revelation that the bailout to save Anglo-Irish was engineered by the Bank's leadership to game as much money as possible from the central bank. The Irish Independent has secret recordings from the period in 2008 - below - that show senior management luring the State into giving it billions as they admit the EUR 7 billion number was "picked out of my arse."

The bottom-line is that the bank knew they were in trouble and so decided to game the Central Bank and their regulators knowing that once the State began the flow of money, it would be unable to stop: "If they (Central Bank) saw the enormity of it up front, they might decide they have a choice. You know what I mean? They might say the cost to the taxpayer is too high . . . if it doesn't look too big at the outset... if it looks big, big enough to be important, but not too big that it kind of spoils everything, then, then I think you have a chance. So I think it can creep up... [once] they have skin in the game." Will there be an Irish Spring as the conspiracy theory of the banking bailout now become conspiracy fact?

 

 

Via The Irish Independent,

Taped telephone recordings (from the bank's own systems) from inside doomed Anglo Irish Bank reveal for the first time how the bank's top executives lied to the Government about the true extent of losses at the institution.

 

...

 

Anglo itself was within days of complete meltdown – and in the years ahead would eat up €30bn of taxpayer money. Mr Bowe speaks about how the State had been asked for €7bn to bail out Anglo – but Anglo's negotiators knew all along this was not enough to save the bank.

 

...

 

The plan was that once the State began the flow of money, it would be unable to stop.

 

Mr Bowe is asked by Mr Fitzgerald how they had come up with the figure of €7bn. He laughs as he is taped saying: "Just, as Drummer (then-CEO David Drumm) would say, 'picked it out of my arse'."

 

...

 

Mr Bowe's comments in the audio recording reveal that Anglo's strategy was to lure the State in, leaving taxpayers with no choice but to continue to provide loans to "support their money".

 

...

 

"If they (Central Bank) saw the enormity of it up front, they might decide they have a choice. You know what I mean?

"They might say the cost to the taxpayer is too high . . . if it doesn't look too big at the outset . . . if it looks big, big enough to be important, but not too big that it kind of spoils everything, then, then I think you have a chance. So I think it can creep up."

Mr Fitzgerald, the Director of Retail Banking, is heard saying: "Yeah. They've got skin in the game and that is the key."

 

...

 

The recording also shows Mr Bowe and Mr Fitzgerald laughing as they say how there is no realistic chance of ever repaying the loans.

 

For the first time, taxpayers get an exclusive insight into the banking shenanigans that cost Ireland our sovereignty.

24 Jun 02:30

U.S. Government Fights Fat With Cash

by M.D. Kittle
Jts5665

Look out for new "fat" taxes. I predict any legislation the busybodies in DC come up with will make more people obese, not less.

Look out obese America!

You have assumed from smokers the mantle of Public Health Enemy No. 1, this time in the federal fight against fat and the bottom line.

Of course, federal lawmakers are coming after the nation’s overweight to save them — from themselves — and they apparently want to spend a lot of money on this rescue operation.

Just how much isn’t yet clear.

This week, a bipartisan group of U.S. representatives, including Wisconsin western district Congressman Ron Kind, introduced the Treat and Reduce Obesity Act,which would give Medicare beneficiaries and their health-care providers “additional tools” to treat and reduce obesity.

“We know how severe the health risks of obesity are, and the actual costs of care for obesity-related illnesses are just as alarming,” Kind said in a statement. “This bipartisan legislation will help bring health care costs under control, by providing more tools for those trying to overcome obesity and lead longer, healthier lives.”

Among its provisions, the bill would “allow” Medicare to cover additional obesity treatments such as prescription drugs for chronic weight management, which Medicaid already covers in more than 20 states. Weight-loss surgery is the only obesity treatment tool currently covered by Medicare.

The legislation also would require the Centers for Medicare and Medicaid Services to highlight Medicare coverage of intensive behavioral counseling for obesity for seniors and their doctors, and give CMS authority to “enhance Medicare beneficiary access to benefits for intensive behavioral counseling by allowing additional types of providers to offer this service.”

THE BOTTOM LINE: A bipartisan bill making its way through the House would pump more money into America’s growing obesity problem.

There’s no doubt about it: Obesity is a huge health issue in America, with related health-care costs pegged at nearly $200 million.

A 2009 report titled, “The Future Cost of Obesity: National and State Estimates of the Impact of Obesity on Direct Health Care Expenses,” estimates that “if current trends continue, 43 percent of U.S. adults will be obese and obesity spending would quadruple to $344 billion by 2018. The report was based on research by Emory University health-care economist Ken Thorpe, Ph.D., executive director of the Partnership to Fight Chronic Disease.

Thorpe this week teamed up with former Wisconsin Gov. Tommy Thompson, who served as Health and Human Services secretary under President George W. Bush, to urge policymakers to act expeditiously in fighting what they and many others define as an obesity epidemic.

Thompson, in the op-ed piece headlined, “Targeting Obesity with Health Care Reform,”warned, “We cannot afford to wait until patients are on Medicare to fight obesity. Rather, we need to encourage weight control over the course of patients’ lives.”

In other words, the government needs to save the increasingly average American from himself.

Thompson had some kind things to say about Obamacare and the potential for its applications, some things he may not have gone on the record to say when he stood by repeal of the contentious health-care act during his unsuccessful bid for U.S. Senate in 2012.

“Fortunately, we now have an ideal opportunity to implement reforms. The new health insurance exchanges created under the Affordable Care Act  can establish effective care coordination strategies to identify and treat chronic conditions earlier, addressing not just the immediate conditions but the underlying ones as well,” the op-ed piece asserts.

Thompson and Thorpe argue Medicare can adopt the strategies, and the “benefits for both patients and taxpayers will be substantial.”

Proponents of government intervention into a chronic condition now classified as a disease by the American Medical Association, say federal investments – whatever they may be – will pay off multi-fold over time.

Perhaps these prevention crusaders would be well served to dust off a 2009Congressional Budget Office report which shows preventative medicine – at least the kind the federal government likes to doctor – is rarely cost-effective.

Pound of prevention

How much would the Treat and Reduce Obesity Act, or TROA, cost taxpayers? Nobody seems to know. Kind’s office did not have cost projections. An official from the Congressional Budget Office on Thursday told Wisconsin Reporter there won’t be a fiscal estimate until the bill is reported out of committee.

In an August 2009 letter to the House’s Subcommittee on Health, the Congressional Budget Office broke down its analysis titled, “The Budgetary Effects of Expanding Governmental Support for Preventive Care and Wellness Services.”

In short, “expanded governmental support for preventive medical care would probably improve people’s health but would not generally reduce total spending on health care.”

The problem, according to the CBO report, is that even when the unit cost of a particular preventative service is low, costs can accumulate quickly when a large number of patients are treated preventively. Such is the case in Wisconsin, where 28 percent of the population is obese, in a nation with a 26.2 percent obesity rate.

Thorpe argues institutional changes could save the United States $200 billion in obesity-related health-care costs.

The CBO report, however, notes that researchers who have examined the effects of preventive care “generally find that the added costs of widespread use of preventive services tend to exceed the savings from averted illnesses.”

A research paper in the New England Journal of Medicine, after reviewing hundreds of previous studies on how preventive care affects costs, concludes that less than 20 percent of the services that were examined save money, while the rest add to costs.

A study by researchers from the American Diabetes Association, the American Heart Association and the American Cancer Society found use of highly recommended preventive measures aimed at cardiovascular disease would substantially reduce the projected number of heart attacks and strokes that occurred but would also increase total spending on medical care because the “ultimate savings would offset only about 10 percent of the costs of the preventive services on average.”

Of course, as the CBO analysis points out, just because a preventive service adds to total spending doesn’t mean it is a bad investment. Saving a life, improving someone’s quality of life, most would agree, are inherently good things. But those who argue they do not come with a cost, or that the cost benefits eventually outweigh the initial taxpayer outlays, are ignoring critical research over time.

The CBO also notes the overlap often associated in services under federally mandated preventive programs.

“Consequently, a new government policy to encourage prevention could end up paying for preventive services that many individuals are already receiving – which would add to federal costs but not reduce total future spending on healthcare,” the report states.

Ted Kyle, a pharmacist and chairman of the Obesity Society’s Advocacy Committee, has a family history of obesity and has struggled with the disease.

He said the current health care system as it relates to overweight Americans is “insane.”

“My health plan would not pay for obesity treatment. I paid for it out-of-pocket, and in doing so I forestalled the need for lipid-lowering medicines,” he said. “When my condition (worsened), they happily would pay for those kinds of medicines but they were not happy to pay for the costs that would keep me healthier across the board.”

Kyle said he understands the criticism of those who see the ineffective results of spending on wellness, preventive and treatment programs not grounded in evidence-based research. But Kyle believes the Treat and Reduce Obesity Act would be well worth the investment.

Freedom to be obese

Curbing obesity, as laid out in the bill, is about encouraging lifestyle changes. The CBO report underscores the challenge in government-funded programs to induce people to live healthier lives.

“Even successful efforts might take many years to bear fruit and could involve significant costs,” the report states.

And, at some level, it does come down to fruit –that is, choosing fruit over fast food, say those in the individual rights camp. It’s a question of choice, they say: The individual’s or the collective’s. Who makes those kinds of health care decisions is a growing matter of debate.

This article originally appeared on Watchdog.org.

22 Jun 22:08

Tax Administration IG: IRS sent over $46 million in refunds to thousands of ‘unauthorized’ aliens at the same address in Atlanta

by Doug Powers

**Written by Doug Powers

null

Understatement of the decade: The 2012 Treasury Inspector General for Tax Administration report that the maddening information below comes from is entitled “Substantial Changes Are Needed to the Individual Taxpayer Identification Number Program to Detect Fraudulent Applications.” Gee, ya don’t say:

(CNSNews.com) – The Internal Revenue Service sent 23,994 tax refunds worth a combined $46,378,040 to “unauthorized” alien workers who all used the same address in Atlanta, Ga., in 2011, according to the Treasury Inspector General for Tax Administration (TIGTA).

That was not the only Atlanta address theoretically occupied by thousands of “unauthorized” alien workers receiving millions in federal tax refunds in 2011. In fact, according to a TIGTA audit report published last year, four of the top ten addresses to which the IRS sent thousands of tax refunds to “unauthorized” aliens were in Atlanta.

The IRS sent 11,284 refunds worth a combined $2,164,976 to unauthorized alien workers at a second Atlanta address; 3,608 worth $2,691,448 to a third; and 2,386 worth $1,232,943 to a fourth.

There’s a lot more to the story here if your stomach can take it. Taxpayers are being fleeced. Or maybe those were addresses where IRS workers went to pick up their annual bonus checks.

Atlanta must have some of the most exhausted and uninquisitive postal delivery people in the country, unless these were direct deposits.

More:

Perhaps the most remarkable act of the IRS was this: It assigned 6,411 ITINs (Individual Taxpayer Identification Numbers) to unauthorized aliens presumably using a single address in Morganton, North Carolina. According to the 2010 Census, there were only 16,681 people in Morganton. So, for the IRS to have been correct in issuing 6,411 ITINS to unauthorized aliens at a single address Morganton it would have meant that 38 percent of the town’s total population were unauthorized alien workers using a single address.

Also, the IRS sent 8,393 checks to a single bank account (via GWP from Treasury.gov):

null

Meanwhile, if you made a single deposit of over $10,000 in cash into your bank account, you would most likely have some Feds knocking on your door (if they were in a polite mood).

This IG report was published almost a year ago. Why isn’t this big news? Why aren’t we seeing any perp walks? Why are we surprised there aren’t mass firings over excessive Tea Party scrutiny when there is apparently fraud by the tens of millions going on with no consequence whatsoever?

**Written by Doug Powers

Twitter @ThePowersThatBe


22 Jun 04:49

Sheriff's Deputies Beat and Jail Attorney For Comforting His Client

by J.D. Tuccille

Reason 24/7When it comes to Third World-style thuggishness, there's nary a gold-bedecked generalissimo or a brigade of sociopathic enforcers haunting any of the jungles of the world who can hold a candle to Sheriff Joe Arpaio of Maricopa County, Arizona, and his merry gang of loyal psychopaths. Their misdeeds range from jailing journalists who have rubbed him the wrong way to torturing a paraplegic, with numerous others worthy of mention, and litigation (prosecution is too much to hope for). You can add another one to the tally if yet another lawsuit pans out. This time, sheriff's deputies apparently beat an attorney half-to-death for daring to go a-lawyering in proximity to officers of the law.

From Courthouse News Service:

Sheriff Joe Arpaio's lawyer-hating deputies beat an attorney so badly his brain bled and his shoulder was dislocated as he tried to calm down a client at the scene of an accident, the attorney and client say in separate lawsuits.

Daniel Kloberdanz and his employee and client, Valarie Lingenfelder, sued Arpaio, Maricopa County, its Sheriff's Office and other county employees, in Maricopa County Court. ...

Kloberdanz says he "asked [Officer Joseph] Pellino, very politely, words to the effect, 'Can I please go over and try to calm her down, I'm the only person she knows here.'"

Pellino then asked Lingenfelder "words to the effect, 'Do you know this man?' Lingenfelder then said, 'Yes, he's my friend, [then a slight pause] and he's my attorney.'

Pellino then walked back towards Kloberdanz, and before Kloberdanz could finish a sentence again requesting to approach Lingenfelder, much to Kloberdanz's surprise, Pellino shoved Kloberdanz in his chest so hard it knocked him over," the complaint states. (Brackets in complaint.)

The complaint continues: "Pellino shoved Kloberdanz so hard it left bruises on Kloberdanz's upper chest below his collar bone. From the shove, Kloberdanz slipped on the gravel and rolled on the ground, avoiding hitting his head on the gravel. Once Kloberdanz got his footing back, he stood up.

"Kloberdanz did not do or say anything that might intimidate or aggravate Pellino, knowing he had a gun and short temper.

"Again, Pellino immediately approached Kloberdanz aggressively and began yelling words to the effect that 'I don't need you guys telling me how to do my job,' as he tackled Kloberdanz to the ground.

The injuries inflicted on Kloerdanz were ... mind-boggling. In addition to the brain injuries and dislocated shoulder described above, the deputies so brutally ground his face into the gravel that stones were forced under the skin. He ended up in jail too, of course, and without medical treatment, though charges were later dropped.

That's unbelievable, you say. But as Ray Stern writes at the Phoenix New Times:

One point that runs in Kloberdanz's favor, as far as we're concerned, is that Kloberdanz claims Deputy Steven Carpenter helped hold him down as Pellino beat him. As we've previously reported, Carpenter, in September 2012 -- about three months after the Kloberdanz incident -- went on a road trip to North Dakota to help another deputy ambush and attack a man.

This can't happen in America? Yeah. And the government can't listen to your phone calls, either.

You can read the full text of Daniel Kloberdanz's lawsuit here.

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21 Jun 17:55

Federal Regulations Have Made You 75 Percent Poorer

by Ronald Bailey

The growth of federal regulations over the past six decades has cut U.S. economic growth by an average of 2 percentage points per year, according to a new study in the Journal of Economic Growth. As a result, the average American household receives about $277,000 less annually than it would have gotten in the absence of six decades of accumulated regulations—a median household income of $330,000 instead of the $53,000 we get now.

The researchers, economists John Dawson of Appalachian State University and John Seater of North Carolina State, constructed an index of federal regulations by tracking the growth in the number of pages in the Code of Federal Regulations since 1949. The number of pages, they note, has increased six-fold from 19,335 in 1949 to 134,261 in 2005. (As of 2011, the number of pages had risen to 169,301.) They devise a pretty standard endogenous growth theory model and then insert their regulatory burden index to calculate how federal regulations have affected economic growth. (Sometimes deregulation extends rather than shortens the number of pages in the register; they adjust their figures to take this into account.)

Annual output in 2005, they conclude, "is 28 percent of what it would have been had regulation remained at its 1949 level." The proliferation of federal regulations especially affects the rate of improvement in total factor productivity, a measure of technological dynamism and increasing efficiency. Regulations also affect the allocation of labor and capital—by, say, raising the costs of new hires or encouraging investment in favored technologies. Overall, they calculate, if regulation had remained at the same level as in 1949, current GDP would have been $53.9 trillion instead of $15.1 in 2011. In other words, current U.S. GDP in 2011 was $38.8 trillion less than it might have been.

Let's use those results as the starting point for some rough calculations. The Bureau of Economic Affairs estimates that real GDP in 1947 was $1.8 trillion in 2005 dollars. The real GDP growth rate between 1949 and 2011 averaged 3.2 percent per year. Compounded over the period, that would yield a total real GDP of about $13.3 trillion in 2011; that's the same figure the bureau gives for that year. If regulation had remained fixed at 1949 levels, GDP growth would have averaged 2 percent higher annually, yielding a rate of about 5.2 percent over the period between 1949 and 2011. Compounded, that yields a total GDP in 2005 dollars of approximately $43 trillion, or $49 trillion in 2011 dollars, which is in the same ballpark as the $53.9 trillion figure calculated by Dawson and Seater.

But let’s say that the two economists have grossly overestimated how fast the economy could have grown in the absence of proliferating regulations. So instead let’s take the real average GDP growth rate between 1870 and 1900, before the Progressives jumpstarted the regulatory state. Economic growth in the last decades of the 19th century averaged 4.5 percent per year. Compounding that growth rate from the real 1949 GDP of $1.8 trillion to now would have yielded a total GDP in 2013 of around $31 trillion. Considerably lower than the $54 trillion estimated by Dawson and Seater, but nevertheless about double the size of our current GDP.

All this means that the opportunity costs of regulation—that is, the benefits that could have been gained if an alternative course of action had been pursued—are much higher than the costs of compliance. For example, the Competitive Enterprise Institute's report Ten Thousand Commandments 2013 estimates that it costs consumers and businesses approximately $1.8 trillion—about 11 percent of current GDP—to comply with current federal regulations. That's bad enough, but it pales in comparison to the loss of tens of trillions in overall wealth calculated by Dawson and Seater.

Defenders of regulation will argue that regulations also provide benefits to Americans: lower levels of air pollution, higher minimum wages, and so forth. But the measure devised by Dawson and Seater accounts for both the aggregate benefits and the costs of the regulations. The two researchers note their results "indicate that whatever positive effects regulation may have on measured output are outweighed by negative effects." There may be some unmeasured positive outputs that result from regulation. But the benefits would have to be hugely substantial to offset the loss of $39 trillion in output in 2011 alone. Is that plausible?

Dawson and Seater explicitly do not attempt to separately measure the benefits of regulation in their study, only its overall effects on output. But the Office of Management and Budget does claim to measure the costs and benefits of federal regulation. In the most recent Office of Information and Regulatory Affairs (OIRA) report, the highest estimates for costs and benefits for regulations adopted from 2002 to 2012 are $84 billion and $800 billion respectively. Let's be extremely generous in calculating regulation's benefits and assume that they provide not just $800 billion in total benefits over 10 years, but that much in just one year. Then, just to be sure that we haven't overlooked any non-monetized benefits unaccounted for the OIRA, and to take into account of the fact that number of pages in the CFR have risen six-fold, let's multiply that by 6, yielding an estimated annual regulatory benefit of $4.8 trillion.

That's just a bit more than a quarter of the current GDP. Recall that Dawson and Seater have calculated that if the regulatory burden had remained the same as it was in 1949, the U.S. economy would be about $38 trillion bigger than it currently is. So the upshot of this wildly optimistic set of assumptions regarding the benefits of regulation is that Americans have foregone $33 trillion in income that we otherwise would have had. Or in the alternative case, where a lower rate of growth results in a GDP of only $31 trillion, that would mean that Americans have foregone about $10 trillion in income due to overregulation.

Whatever the benefits of regulation, an average household income of $330,000 per year would buy a lot in the way of health care, schooling, art, housing, environmental protection, and other amenities.

Since GDP growth rates in other industrialized countries more or less track U.S. growth rates over the period, I asked both Dawson and Seater via email if it would be fair to conclude that those countries had also adopted a similar suite of regulations that also slowed their potential GDP gains. Being careful not to go beyond the data in the study, Dawson replied, "Similarity of growth rates really doesn't tell us anything about the growth effects of regulations in the different countries. However, it would be fair to say that many studies (cited in our paper) examine the effects of regulation in many European countries and find large negative effects on employment, investment, rates of new business start-up, and so on."

For example, a 2004 World Bank study of the effects of regulation in a large sample of industrial and developing countries constructed an index of severity of regulation. It revealed that increasing a country's index of regulation by one standard deviation (34 percent) reduces its per capita GDP growth by 0.4 percent. Dawson and Seater's article, in comparison, finds that "an increase in total regulation of 600 percent reduces growth by just 2 percentage points. Relatively speaking, our effect is smaller." With appropriate caveats about differences in various studies, Seater told me via email, "The uniform message that comes through from all the studies I have seen is that regulation has strong negative effects on economic growth."

So if the effects of regulation are so deleterious to economic growth and the prosperity of citizens, why do countries enact so much of it? Dawson and Seater's paper mentions three theories: Arthur Pigou's notion that governments enact regulations to improve social welfare by correcting market failures, George Stigler's more cynical view that industries capture regulatory agencies in order exclude competitors and increase their profits, and Fred McChesney's argument that regulations are chiefly aimed at benefiting politicians and regulators. I asked if their results fit most closely with McChesney's. Dawson replied: "This could be the conclusion that one reaches based on our empirical results (since they show a net cost of regulation over time), but again we did not set out to prove or disprove any particular theory." Seater added that their research does not address the question of "why society allows excessive regulation....It's an important [issue], but it is one for the public choice people to study, not for macroeconomists like me and my coauthor."

One such public choice theorist, Mancur Olson, argued in The Rise and Decline of Nations (1982) that economic stagnation and even decline set in when powerful special-interest lobbies—crony capitalists if you will—capture a country's regulatory system and use it to block competitors, making the economy ever less efficient. The growing burden of regulation could some day turn economic growth negative, but in a note Dawson and Seater suggest that in the long run that will "not be tolerated by society." Let's hope that they are right.

21 Jun 13:23

Hubble picks up giant space penguin...


Hubble picks up giant space penguin...


(First column, 15th story, link)

13 Jun 00:04

UPDATE: No. 2 at CIA to retire, will be replaced by White House lawyer...


UPDATE: No. 2 at CIA to retire, will be replaced by White House lawyer...


(Third column, 9th story, link)

12 Jun 18:11

Guns Are Self-Defense Tools; 72-Year-Old Grandmother Fends Off Intruder

by Ed Krayewski

granny's got a gunA gun is a tool of personal self-defense without equal (and a great equalizer). Earlier this week, a 62-year-old California man was reported to have died after being attacked with his own baseball bat while trying to defend his wife. From CBS San Francisco:

Sandy Harlow, 61, was housesitting for a friend in Orangevale. When she came to feed the dogs, she says a former resident of the home was in the garage and wouldn’t leave.

She dialed 911, but the cops didn’t show up right away.

“I called my husband and I said, ‘James, please come. Please come I’m so frightened,’” Sandy said.

James Harlow, 62, did come, with a baseball bat. That’s when Sacramento Sheriff’s Deputies say Brandon Biagioni attacked the husband who was twice his age with his own bat.

Meanwhile, in Southern California a 72-year-old woman was able to defend herself and her wheelchair-bound husband from an intruder, who even apologized after she shot at him. From the AP:

Jan Cooper, of Anaheim, fired one shot from her .357-magnum Smith & Wesson revolver around 12:30 a.m. Sunday as a man attempted to break into her home. During a 911 call of the incident, Cooper can be heard begging with the dispatcher to send deputies and warns that she has a gun at the ready as her Rottweiler barks furiously in the background.

Minutes later, a breathless Cooper says the man has come to the back porch and is trying to get in the house through a sliding door. Through the vertical blinds, Cooper saw his silhouette just inches away through the glass as he began to slide open the door.

"I'm firing!" Cooper shouts to the dispatcher as a loud band goes off…

The stunned intruder apologized to Cooper after she fired, she recalled, telling her, "I'm sorry, ma'am. I'm leaving. Please don't shoot."

The Supreme Court ruled in 2005 that police don’t have a constitutional duty to defend anyone in particular. Americans do, though, theoretically have a constitutional right to self-defense via the Second Amendment, making attempts to curtail it in the wake of sensational violence particularly disturbing.

12 Jun 17:49

The Next Step in Regulation Madness

by admin

So, what is the next danger to the Republic that requires coercive government control to protect us all from disaster?  Pedicabs:

Operating a pedicab used to be cheap and easy. A person could make a buck with little or no overhead and without restrictive, burdensome regulations.

That’s no longer true in some Valley cities that have approved ordinances limiting who can operate pedicabs on their streets. Scottsdale is the latest to tighten its rules, joining Phoenix and Glendale. No other Valley municipality regulates pedicabs.

To continue doing business in Scottsdale, pedicab operators must have a valid Arizona driver’s license, maintain insurance and adhere to regulations pertaining to the safety and visibility of the pedicab. The ordinance, which became law on May 9, includes penalties for non-compliance but does not specify any inspections.

Phoenix’s ordinance, which went into effect in August 2008, was in response to concerns and complaints from downtown stakeholders and patrons regarding pedicab activity, city spokeswoman Sina Matthes said. The ordinance is stricter than Scottsdale’s, requiring Police Department inspections and inspection tags.

Glendale’s ordinance, which became law in late 2007, requires a city-issued license and limits the hours of operation and what roads can be used by operators, said Sgt. Jay O’Neill of the Glendale Police Department.

Why the regulation.  What safety disaster led to this?  Well, apparently some poor pedicab operator allowed himself to be hit by a drunk driver.

Scottsdale’s ordinance was prompted by a Jan. 4 crash involving a suspected drunken driver and a pedicab trailer on Scottsdale Road near Rose Lane. The two pedicab passengers suffered serious head and spine injuries.

Scottsdale police determined that there were no mechanical or safety violations.

Here is some government cluelessness:  it is OK if we rape you as long as we ask for your feedback first

In Scottsdale, operators must maintain at all times a commercial general-liability insurance policy of at least $1 million per occurrence and $2 million annual aggregate.

Jay Ewing Jr., owner and operator of Big Papa Human Powered Transportation, said four people have asked him if he wanted to purchase their equipment because they are going out of business in connection with the Scottsdale regulations. He says a pedicab operator can expect to pay at least $250 a month for insurance....

Scottsdale police Cmdr. Jeff Walther said the transition has gone smoothly because all operators were made aware of the proposed changes and were given the opportunity to provide input before the regulations were approved by the council.

“I was surprised, my folks were surprised, that almost immediately there seemed to be a pretty dramatic decline in operators,” Walther said.

12 Jun 02:13

DOJ Argues Secret Ruling Over Secret Unconstitutional Surveillance Must Remain Secret Because It's Secret

by Mike Masnick
About a year ago, after a lot of pressure from Senator Ron Wyden, the government finally admitted (late on a Friday) that, yes, indeed some of its surveillance efforts had been found unconstitutional for violating the 4th Amendment. But they didn't explain what, nor did they reveal the FISA court ruling which made that assessment. Since that time, the EFF has been fighting the government to get it to reveal the ruling. The DOJ refused to release it following a Freedom of Information Act (FOIA) request, and later said that even if it wanted to, it can't release the document, because only the FISA Court (FISC) could release it. But, in an earlier ruling in a different case filed by the ACLU seeking to reveal a FISC ruling, FISC had said that FISC couldn't reveal it, and the ACLU needed to seek the document from the DOJ. In other words, both the DOJ and FISC are pointing fingers at each other, saying that only the other one can reveal the document. In response, the EFF has asked for confirmation from FISC that if a district court rules against the DOJ and tells it to release the document, that FISC will actually do so.

Now, the DOJ is fighting back with the most circular and ridiculous logic imaginable:
In its response filed with the FISC today, the government offers a circular argument, asserting that only the Executive Branch can de-classify the opinion, but that it is somehow prohibited by the FISC rules from doing so.

The government’s argument is guaranteed to make heads spin. DOJ earlier argued that it lacks discretion to release the FISC opinion without the FISC's consent, but DOJ now argues that if the FISC were to agree with EFF, “the consequence would be that the Government could release the opinion or any portion of it in its discretion.” But FISC material is classified solely because the Executive Branch demands that it be, so release of the opinion has always been a matter of Executive discretion.

Frankly, it’s difficult to understand what DOJ is saying. The Government seems to have a knee-jerk inclination towards secrecy, one that often – as in this case – simply defies logic. The government's bottom line is this: their rules trump the public's statutory rights. But it's not the province of the Executive branch to determine which rights citizens get to assert.
Basically, the finger pointing continues. However, considering the increasing concern about vast government surveillance, it certainly seems like the government should start looking into being a hell of a lot more transparent, and it could start by giving up this game and releasing that FISC ruling.

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11 Jun 23:26

Obama, 9 PRISM Partners Targeted by Class-Action Lawsuit... Developing...


Obama, 9 PRISM Partners Targeted by Class-Action Lawsuit... Developing...


(Third column, 4th story, link)
Related stories:
11 Jun 21:33

Common Core Deceive-and-Denigrate Campaign Continues

by Neal McCluskey

Neal McCluskey

I’ve written a lot recently about the untoward tactics being employed by supporters of the Common Core national curriculum standards. I’m afraid little seems to be changing, as illustrated by two new bits of evidence.

The first is a survey in Tennessee by the Core-supporting State Collaborative on Reforming Education. The survey – which has gotten significant coverage across the Volunteer State – supposedly shows that Tennesseans just love the Common Core. As the Knoxville News succinctly put it in its headline, “3 in 4 Tennesseans Favor Common Core Standards.” The article goes on to report that “after hearing a brief description about the standards, about 76 percent of voters support their implementation, with 44 percent ‘strongly’ favoring them.”

Well, that seems like an open-and-shut case for the Common…wait a minute. What was that “description” respondents heard?

Checking out the brief summary SCORE put out about its survey, it appears to be the following (see note 1):

Now, just so everyone taking this survey has the same information, let me tell you some more about these Common Core State Standards. These new standards were developed by states and have been set to internationally competitive levels in English and math. This means that students may be more challenged by the material they study, and the tests they take will measure more advanced concepts and require students to show their work. Knowing this, do you favor or oppose implementing these new Common Core State Standards?

Really? “Just so everyone…has the same information”? Gimme a break.

This is, of course, a classic loaded question designed to get a positive response. How many people are going to oppose “internationally competitive” standards by which children will be “challenged”? Forget that curriculum experts hardly all agree with this assertion. Then, it says that the standards were “developed by states” when, in fact, they were not: the National Governors Association and Council of Chief State School Officers are not states. Finally, it completely ignores that the federal government coerced state adoption of the Core – the main concern of the Core’s most vocal opponents – and did so before the final standards had even been published. If you’re going to include highly dubious assertions, and exclude crucial concerns, you might as well just say “the Common Core is terrific, has no down sides, and will be great for your kids. Now, do you favor or oppose terrific standards that will surely help your children?”

Alas, this is not new. It’s a standard, pro-Core question.

In other news, Delaware Governor Jack Markell (D) took to the pages of the Washington Post today to defend the Common Core against a Post report on Tea Party opposition to the Core. Alas, it was a typical defense, based as much on smearing Core opponents, and ignoring crucial federal involvement, as discussing the Core’s merits.

Markell starts with a straw man, citing the Post article as saying that Tea Party people argue that the Common Core was developed by the Feds. No such assertion appears in the article. Markell then suggests that Common Core was controlled by “state leaders” without saying who they were, perhaps because the NGA and CCSSO employees in charge of the effort were not “state leaders.” Moreover, he implies that somehow for standards to be high, and our nation internationally competitive, standards must be national. He offers no meaningful arguments for these things, and ignores the significant empirical evidence against such superficial assumptions.

Perhaps the most egregious – but typical – of his piece’s failings are two. The first is the absence of any mention of Race to the Top or NCLB waivers (not to mention federal funding and selection of national tests) that are the concrete federal actions that utterly justify anyone’s worries about federal control. They are also just the kinds of actions supporters asked for. And the second? Smearing the Tea Party as “fringe” kooks who, it is implied, only peddle myths.

Given what we’re seeing from many Core supporters, that last bit is ironic, isn’t it?

10 Jun 18:55

Does the NSA Have Cellphone Data Tracking Your Movements?

by Jacob Sullum
Jts5665

One also wonders if the NSA has requested phone companies to randomly ping phones for location data while individuals are not on the phone.

For years Sens. Ron Wyden (D-Ore.) and Mark Udall (D-Colo.), both members of the Senate Intelligence Committee, have been warning us about secret legal interpretations underlying surveillance activities of a sort that would shock most Americans. Prior to last week, because Wyden and Udall felt constrained not to reveal classified information, all we knew for sure was that the interpretations involved Section 215 of the PATRIOT Act, which authorizes the government to demand "any tangible things" it deems relevant to "an investigation to protect against international terrorism." Reason Contributing Editor Julian Sanchez, a privacy specialist at the Cato Institute, argued back in May 2011 that the "secret law" troubling Wyden and Udall "is probably about location tracking." After The Guardian broke the story of the Section 215 order that the National Security Agency (NSA) used to obtain telephone records from Verizon, Wyden and Udall said this was the sort of thing they had in mind. But that does not mean the information gathered by the NSA under Section 215 is limited to numbers dialed, date and time of calls, and length of conversations—the details usually mentioned in reports on the program. As Washington Post blogger Timothy B. Lee notes, it looks like the NSA is gathering location data as well:

The order may only pertain to Verizon’s wired telephony business, as Verizon Wireless is technically a separate subsidiary. But the order includes hints that the NSA is also collecting information from cellular customers. In addition to phone numbers and call times, the order seeks information about the specific cell phone tower the customer used to connect to the network during each call.

It wouldn’t make much sense to request that information from a traditional wired telephone company. So its inclusion suggests either that the order includes Verizon Wireless, or that it's boilerplate that is also being sent to wireless companies....

Cellphones make calls using the closest tower. So if the NSA knows you made a call using a specific tower, they can safely assume you were near that tower at the time of the call. The accuracy of this information varies. In urban areas, tower information can pin down your location to a specific city block or even a specific building. In rural areas, it might only identify your location within a mile or two.

The Verizon order covered all calls, domestic and international, since 2006. If wireless carriers have received similar orders that include demands for cellphone tower information, the NSA could have a database tracking the movements of every American with a mobile phone. But remember: The NSA does not "collect any type of data at all on millions or hundreds of millions of Americans."

For more on cellphone tracking, see my 2012 column "Is That a Spy in Your Pocket?" and Ron Bailey's 2013 feature story "Your Cellphone Is Spying on You."

10 Jun 18:26

How Regulators Enticed Verizon to Sell Out Customers to the NSA

by Ira Stoll

Verizon, the phone company whose disclosure of customer data to the federal government is at the center of the furor over cooperation by technology companies with top-secret national security programs, has offered a precise, clear, but little-noticed public explanation of why it did what it did.

The Verizon explanation is not in the vague and cryptic memo the company issued last week after the Guardian exposed its program. It came, instead, in the company’s annual filing with the Securities and Exchange Commission, included in Verizon’s annual report to shareholders. It said, “As part of the FCC’s approval of Vodaphone’s ownership interest, Verizon Wireless, Verizon, and Vodaphone entered into an agreement with the U.S. Department of Defense, Department of Justice and Federal Bureau of Investigation which imposes national security and law enforcement-related obligations on the ways in which Verizon Wireless stores information and otherwise conducts its business.”

That explanation was offered on February 26, months before the Guardian article. But it gets right to the heart of the matter, which is that there is a connection between Verizon’s status as a highly regulated company and its agreement to cooperate extensively with the government. The New York Times reported Sunday that such cooperation advanced to the point that “Verizon had set up a dedicated fiber-optic line running from New Jersey to Quantico, Va., home to a large military base, allowing government officials to gain access to all communications flowing through the carrier’s operations center.”

Verizon needed FCC approval to sell part of its wireless business to a British company, Vodaphone. It needs FCC approval to do lots of other things, too, ranging from acquisitions to building wireless networks on new parts of the spectrum. In addition, the federal government is a big Verizon customer. The company’s Web site says, “We understand the public sector. We've worked with governmental organizations for decades. In fact, we are the leading provider of communications services to the U.S. federal government.”

These federal contracts are worth tens of billions of dollars to Verizon. A single 2009 contract from the Defense Information Systems Agency to Verizon Business Network Services Inc. was worth as much as $2.5 billion over ten years. A Verizon press release in 2008 touted another pair of defense contracts worth as much as $1.12 billion. The online biographies of executives at Verizon Enterprise Solutions include some individual Verizon executives who boast that their efforts have resulted in more than $10 billion in federal sector business for Verizon. A Verizon Web site focused on the “National Intelligence Sector” promises, “we understand technology and have the experts in place to help intelligence missions succeed.”

Verizon was created by the federal government to begin with, first through the government-imposed breakup of Bell system (the 1984 result of a 1974 antitrust lawsuit filed by the Department of Justice), then government approval of the mergers of Bell Atlantic, GTE, and Nynex.

And though details are still emerging, some of the other companies that apparently chose to cooperate with the government data collection programs rather than challenge them also are either highly regulated or do a lot of business with the government. Google, for example, is providing the email for the 7,200 faculty, staff and midshipmen at the U.S. Naval Academy, for the 5,000 staff at the Department of Energy’s Idaho National Laboratory, and for the 17,000 employees at the General Services Administration. Microsoft had its own antitrust battle with the Department of Justice, from which it emerged more whole than the Bell phone system did but nevertheless somewhat chastened.

Reasonable people may reach differing conclusions over whether these data collection activities are justified by the Islamist terrorist threat. Senators such as Ron Wyden and Rand Paul have raised concerns about the issue. The most durable policy solution may be a market-based one that would easily allow new entrants to arise and raise capital in the telecommunications business without their having to get a lot of permission from the government. If some new phone company or email service provider began with a promise that they’d obey lawful court orders, but that they’d also fight really hard as a rule not to give customer information to the government, the customers would line up — if the government would let them.

08 Jun 02:13

Cops Can Bust You for Even Minor Offenses in Texas (and Elsewhere)

by J.D. Tuccille

Reason 24/7In the midst of much extremely justified fuss about the abuse of official power at the federal level, don't forget that state and local officials are at least as likely to wipe certain parts of their anatomy with your civil liberties as are their counterparts in D.C. Today's example comes from Texas, where police are empowered to arrest people and haul them in, even for minor violations that aren't penalized by time behind bars.

From Watchdog.org:

In Texas, people can be arrested for just about anything. In fact, speeding is one of just two crimes that can’t get you arrested; the other is having an open container.

[Don] Elmer was arrested, not for speeding but for failing to wear his seat belt.

When the judge called his case, “he just bust out laughing,” Elmer said. “He was like, ‘He must have really not liked you.’”

Elmer lost his job, and he had to pay to get his car out of the tow yard.

He can thank Gov. Rick Perry and the U.S. Supreme Court for the nearly unlimited power that Texas law enforcement officers have to arrest anyone, even for crimes such as busted tail lights and unsafe lane changes not punishable by jail time.

The expansive arrest powers come, in part, from a 2001 U.S. Supreme Court case, Atwater v. Lago Vista, in which America's solons of all things constitutional said it was A-OK to cuff people for such penny-ante offenses as ... well ... not wearing a seatbelt. Texas cops, and police elsewhere, took the decision to heart. As you might expect, such wide-ranging powers are wielded with a great deal of personal discretion. Pissing off a cop during a routine traffic stop — or any other time — can be taken as an invitation to put on the handcuffs, for instance. The threat of arrest can also be used to extract compliance.

Of course, most cops are uninterested in jailing seat-belt violators – they’d be the laughingstock of their departments if they did it often. But Texas police routinely use that arrest authority to coerce people into surrendering their Fourth Amendment protections against unreasonable searches.

Since the 2001 ruling, Texas lawmakers have attempted, three times, to rein-in police powers even a little. Governor Rick Perry vetoed the legislation each time. 

Follow this story and more at Reason 24/7.

Spice up your blog or Website with Reason 24/7 news and Reason articles. You can get the widgets here. If you have a story that would be of interest to Reason's readers please let us know by emailing the 24/7 crew at 24_7@reason.com, or tweet us stories at @reason247.

07 Jun 12:10

The NSA's Favorite Weasel Word To Pretend It's Claiming It Doesn't Spy On Americans

by Mike Masnick
Well, well. In the aftermath of the revelations that the NSA is getting records of every phone call from Verizon, followed up by the news that most of the biggest tech companies are supposedly giving direct access to the NSA, the intelligence community is responding the same way it always does: with weasel words. First up, you can see Director of National Intelligence James Clapper's statement about the spying, which we'll be discussing again in a bit.

But, a bunch of folks have been reasonably pointing out that Clapper appears to have lied to Congress. Of course, it's not like this wasn't easily called. Two years ago, we wrote about Clapper's answers to Senators Wyden and Udall, which we pointed out was a ridiculous answer that was clearly sidestepping the real questions. However, looking over that letter again now, and having become a bit more familiar with the weasel words the NSA likes to use, it's easy to look at Clapper's statement and explain why he can "stand by it" while the clear implication of it was the opposite of what he meant.
You asked whether communications of Americans have been collected… Section 702 of the FAA [FISA Amendments Act] explicitly prohibits the intentional targeting of persons reasonably believed to be located in the United States or United States persons located abroad. The Intelligence Community has put in place a variety of procedures, which have been approved by the FISA Court as required by law, to ensure that only persons reasonably believed to be located outside the United States are targeted and to prevent the intentional acquisition of any communications as to which the sender and all intended recipients are known to be located in the United States. Guidelines are also required by law to ensure compliance with other limitations on FAA collection, including the requirement that a U.S. person may not be intentionally targeted under section 702. If it is discovered that a target has entered the U.S. or is a U.S. person, he or she is promptly detargeted and reports are made as appropriate to the Department of Justice (DOJ), the Office of the Director of National Intelligence (ODNI) and the FISA Court. Moreover, when communications from persons located in the United States are collected because they are communicating with a lawful target, the privacy and civil liberty rights of U.S. persons are protected through the careful implementation of the procedures required under the FAA to ’minimize the acquisition and retention, and prohibit the dissemination“ of information about U.S. persons.’”
Most people would read this to be him saying that they do not spy on Americans. And that's obviously what he's trying to imply. But that's not what he's actually saying. He's using the NSA's favorite weasel word: "target." Now, most people assume that means one of the people on the call must be outside the US. But, you could -- if you were devious intelligence official trying to mislead Congress and the American public (hypothetically) -- interpret the word "target" to mean "if we, in general are 'targeting' foreign threats, no matter what they might be like, and this information we're collecting might help in that process, then we can snarf up this data."

In other words, most people think that "target" would mean one of the people on the phone. But, the NSA means "this overall investigation is about targeting foreign threats, so we can take whatever data we want because the goal is to stop foreign threats with it -- and therefore our mandate not to spy on Americans doesn't apply."

So, it shouldn't be particularly surprising to see that the administration's "response" to this is to highlight, yet again, that this only "targets" non-US persons:
Information collected through a U.S. government surveillance program that taps into the servers of internet companies targets only non-U.S. persons living outside the United States, a senior administration official said on Thursday.

The U.S. law that allows the collection of data under this program does not allow the targeting of any U.S. citizen or of any person located in the United States, the official said, speaking on condition of anonymity.
Right, but whether or not they're "targeting" a person, is separate from whether or not they're spying on the data of Americans. As long as it's all part of a process that "targets" non-US persons, they can claim that they're playing by the rules.

Given that, however, I don't see how Clapper can reasonably standby the following statements:
Wyden: Does the NSA collect any type of data at all on millions or hundreds of millions of Americans?

Clapper: No sir.

Wyden: It does not?

Clapper: Not wittingly. There are cases where they could, inadvertently perhaps, collect—but not wittingly.
Clapper is insisting that he didn't lie in his comments, but he then pretends that he was only talking about email:
What I said was, the NSA does not voyeuristically pore through U.S. citizens' e-mails. I stand by that.
Except, that's not what he was asked, nor was it what he said. He was specifically asked if the NSA collects any type of data at all, and he said no. Up above, he was using weasel words, but here it looks like he was flat out lying directly to Congress. Usually, Congress doesn't like that.

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07 Jun 12:06

Friday Funnies: Police State

by Chip Bok

06 Jun 18:29

Climate Model Fail

by admin

Dr. Roy Spencer has compared the output of 73 climate models to actual recent temperature measurements.  He has focused on temperatures in the mid-troposphere in the tropics -- this is not the same as global surface temperatures but is of course related.  The reason for this focus is 1) we have some good space-based data sources for temperatures in this region that don't suffer the same biases and limitations as surface thermometers and 2) This is the zone that catastrophic anthropogenic global warming theory says should be seeing the most warming, due to positive feedback effects of water vapor.  The lines are the model results for temperatures, the dots are the actuals.

click to enlarge

As Spencer writes in an earlier post:

I continue to suspect that the main source of disagreement is that the models’ positive feedbacks are too strong…and possibly of even the wrong sign.

The lack of a tropical upper tropospheric hotspot in the observations is the main reason for the disconnect in the above plots, and as I have been pointing out this is probably rooted in differences in water vapor feedback. The models exhibit strongly positive water vapor feedback, which ends up causing a strong upper tropospheric warming response (the “hot spot”), while the observation’s lack of a hot spot would be consistent with little water vapor feedback.

The warming from manmade CO2 without positive feedbacks would be about 1.3C per doubling of CO2 concentrations, a fraction of the 3-10C predicted by these climate models.  If the climate, like most other long-term stable natural systems, is dominated by negative feedbacks, the sensitivity would be likely less than 1C.  Either way, the resulting predicted warming from manmade CO2 over the rest of this century would likely be less than 1 degree C.

More on declining estimates of climate sensitivity based on actual temperature observations rather than computer models here.

06 Jun 15:35

New York Attempting to Make Contempt of Cop a Felony

by admin

One of the great revolutions in civil liberties has been the handheld video camera.  Time and again police that have taken individuals to jail and charged them with things like resisting arrest have been shown, through video evidence, to be lying their asses off.  It is depressing to see how many cases exist where video evidence directly contradicts the police story, and to think how many people have ended up in jail before such video evidence simply because the cops wanted them there and manufactured an incident.

One thing that accumulated video evidence shows is that many police officers seem to think the law makes them the dictator of the everything in a hundred yard radius around them, and they tend to get incensed when any citizen does not immediately respect this made-up authority and follow their every order, legal or not.  Further, it is clear that there are many officers who have absolutely no qualm about beating the crap out of someone with no immediate justification and then blaming the victim, knowing that their fellow officers will back them no matter what outrageous facts they make up.  Only video evidence is slowly breaking through this practice, which is why the police tend to fight back so hard against photography of their public actions, and why in-dash cameras so often happen to be turned off just when they are needed.

Having watched numerous videos of police encounters at sites like PINAC, I have no doubt that this proposed New York law making it a felony to annoy police officers will be shamelessly abused by police (the law requires some sort of body contact but that is extraordinarily easy for the police to manufacture, and the text of the law does not even require the contact to be initiated by the citizen so accused).

06 Jun 15:29

Dialect Survey

by admin

These have been kicking around the Internet for a while but this is the most extensive set (over a hundred) that I have seen  (You can get an accurate guess as to where I grew up by the name I gave the image below)

coke

06 Jun 13:42

Farm Bill Would Increase Spending 47%

by Chris Edwards

Chris Edwards

House and Senate farm subsidy supporters are pushing to enact the first big farm bill since 2008. Democratic and Republican supporters say that this year’s legislation will be a reform bill that cuts spending. Hogwash.

Last year, House farm subsidy supporters proposed a bill that would spend $950 billion over the next 10 years, while the Senate proposed a bill that would spend $963 billion. By contrast, when the 2008 farm bill passed, it was projected to spend $640 billion over 10 years. Thus, the proposed House bill would represent a 48 percent spending increase over the last farm bill, while the Senate bill would represent a 50 percent increase.

A new estimate of the House bill finds that it would spend $940 billion over 10 years, which would be a 47 percent increase over the 2008 farm bill. This new estimate is shown in the chart alongside the estimate of the 2008 farm bill.

The CBO score of the 2008 farm bill is here. Scores for the 2012 farm bill proposals are reported in this CRS report. And the new score of the House bill is here.

Since the 2008 farm bill, we’ve had five years of moderate inflation, which has eroded the value of dollars by about 8 percent. Thus, the 2013 House farm bill would increase real spending by 39 percent compared to the 2008 farm bill.

The Republican-controlled House Agriculture Committee says that its bill “saves taxpayer’s money,” “reduces deficit spending,” and “repeals outdated government programs.” That sounds good, and the GOP bill is officially scored to “save” $33 billion over 10 years. But that savings is against the CBO baseline of $973 billion in farm bill spending over 10 years, so the House bill can be said to “cut” spending by 3 percent.

Given today’s huge federal deficits, a 3 percent “cut” by Republicans is a joke in itself. But that’s only a cut against baseline, and since baseline spending has soared in recent years it’s no cut at all.

Consider, for example, that in 2008 CBO estimated that farm bill spending in 2014 would be $67 billion. But CBO is now estimating that farm bill spending in 2014 will be $99 billion. Thus, spending in this single year is $32 billion or 48 percent higher than the politicians promised it would be back in 2008. So you can see that the proposed GOP “cut” of $33 billion over 10 years is incredibly lame.

Despite the fact that politicians are claiming that the proposed new farm bill cuts spending, it’s just a mirage created by rising baselines. The truth is that the House farm bill would spend 47 percent more over 10 years than the last farm bill, or 39 percent more in inflation-adjusted dollars. 

For background, see this new study by Sallie James and this essay on the history and failures of farm subsidies. Also note that three-quarters of “farm bill” spending is for food subsidies, which you can read about here. And if you’re in D.C., come and hear about the farm bill at our Capitol Hill event at noon Thursday.

06 Jun 13:18

NR: States Should Join Oklahoma, Challenge IRS's $800b Power Grab

by Michael F. Cannon

Michael F. Cannon

The IRS is attempting to tax, borrow, and spend more than $800 billion over the next 10 years without congressional authorization, and indeed in violation of an express statutory prohibition enacted by both chambers of Congress and signed into law by President Obama. 

In a new editorial, National Review calls on officials in 33 states to join Oklahoma attorney general Scott Pruitt in filing court challenges to this illegal and partisan power grab:

By offering the [Patient Protection and Affordable Care Act’s] subsidies in states that have not set up [health insurance] exchanges, the federal government is inflicting tax penalties on individuals and employers that go beyond even what Obamacare allows…

Pruitt v. Sebelius has been supplemented by a lawsuit filed last month by a group of small businesses and individual taxpayers also challenging the IRS’s authority to impose penalties outside of state-created exchanges…

Stopping the IRS from imposing punitive taxes where it has no legal power to do so should in fact be a popular and bipartisan issue, regardless of one’s opinions about the ACA itself…

Republican governors, attorneys general, and state legislators looking to use their offices to the significant benefit of the nation as a whole should be lining up to create a 30-state united front with Oklahoma. Scott Pruitt is fighting for the rule of law, and Republican governors might trouble themselves to give him a hand. 

Click here for information on an upcoming Cato policy forum on Halbig v. Sebelius, the legal challenge filed by several small businesses and taxpayers.

05 Jun 20:53

In 2011, some US chemical companies supported market forces for natural gas, but now they want government intervention

by Mark J. Perry

In 2011, Congress was considering legislation that would encourage more natural gas-powered vehicles on American roads by providing various subsidies for the production and use of natural gas-powered vehicles. In response, a group of American manufacturers, chemical companies and agricultural organizations sent this letter to the House leadership expressing their strong opposition to bipartisan legislation that was being considered then - the “Natural Gas Act” (H.R. 1380) – which would have provided subsidies for natural gas vehicles.

In the first paragraph of the letter, the signers “urged Congress to allow the market to set supply and demand for natural gas instead of picking ‘winners’ and ‘losers’ through legislation.”

Some of the companies that signed that letter in 2011 are now members of America’s Energy Advantage, which is asking for exactly the opposite treatment from Congress when it comes to natural gas exports.

According to its website, America’s Energy Advantage believes in:

1. Carefully considering the economic consequences before allowing unfettered natural gas exports.

2. Encouraging the federal government to move cautiously on permitting natural gas exports in order to measure impact on price, security and jobs.

3. Educate policymakers on the potential risks to the U.S. economy of unfettered natural gas exports.

Bottom Line: It now appears that some of the companies that signed the letter in 2011 supporting market forces and opposing government intervention in the natural gas market are now asking for Congress to circumvent the market for natural gas and pick winners and losers through government policy by restricting or limiting natural gas exports.

Flip-flop?

05 Jun 20:51

'Homeland Security': Laptops, phones can be searched based on hunches...

05 Jun 15:32

The Fukushima Nuclear Disaster's Toll: How About Zero?

by Ronald Bailey

FukushimaThe Australian newspaper The Age, senior writer John Watson reports in an op-ed the results of a couple of analyses that look at the follow on health effects of the triple meltdown of the reactors at the Fukushima nuclear power plant in the wake of the March 2011 monster tsunami. Very good news - despite the scale of the disaster and the amount of radiation that leaked into the environment, the health effects will likely be negligible to undetectable. From the op-ed:

In February, the World Health Organisation reported there would be no noticeable increases in cancer rates for the overall population. A third of emergency workers were at some increased risk.

While infants in two localised hot spots were likely to have a 6 per cent relative increase in female breast cancer and 7 per cent relative increase in male leukaemia, WHO cautioned this was a small change. The lifetime risk of thyroid cancer, which is treatable, is only 0.75 per cent, so even in the worst-affected location it rose to only 1.25 per cent.

Now the United Nations Scientific Committee on the Effects of Atomic Radiation has drawn on 80 scientists from 18 countries to produce a draft report that concludes: "Radiation exposure following the nuclear accident at Fukushima-Daiichi did not cause any immediate health effects. It is unlikely to be able to attribute any health effects in the future among the general public and the vast majority of workers." ...

Nor has the environment been devastated. The report says: "The exposures on both marine and terrestrial non-human biota were too low for observable acute effects."

As The Age further notes:

Let's be clear, Fukushima was hit by a worst-case scenario: the world's fifth-most-powerful earthquake since 1900, a tsunami twice as high as the plant was built to withstand, and follow-up quakes of magnitudes 7.1 and 6.3. A Japanese commission of inquiry described it as a "man-made disaster" because of regulatory failure and lack of a safety culture.

This "perfect storm" hit a nuclear plant built to a 50-year-old design and no one died. Japan moved a few metres east during a three-minute quake and the local coastline subsided half a metre, but the 11 reactors operating in four nuclear power plants in the region all shut down automatically. None suffered significant damage. (The tsunami disabled Fukushima's cooling system.)

Yet such is the imbalance of dread to risk on matters nuclear that this accident was enough to turn public opinion and governments against nuclear power. Never mind that coal mining kills almost 6000 people a year, or that populations of coal-mining areas have death rates about 10 per cent higher than non-mining areas, or that coal emissions drive global warming.

A 2010 National Academy of Sciences study, The Hidden Costs of Energy, calculated that coal fired electricity generation produced $62 billion in non-climate damages annually in the U.S., of which 90 percent were associated with premature mortality. At the standard rate of $6 million per life, that implies about 10,000 excess deaths per year.

There may be a good economic case against pursuing nuclear power, but worries about the industry's health effects (even in a very near worst case scenario) do not provide good reasons to oppose nuclear power generation.

For more background see my column, "The Cultural Contradictions of Anti-Nuke Environmentalists," and my post-Fukushima column, "Radiation Non-Alert."

05 Jun 15:28

Take a bow, capitalism – nearly 1 billion people have been taken out of extreme poverty in 20 years, thanks to markets

by Mark J. Perry

From an editorial in the current edition of The Economist, “Towards the End of Poverty“:

The world’s achievement in the field of poverty reduction is, by almost any measure, impressive. Although many of the original Millennium Development Goals (MDGs) —such as cutting maternal mortality by three-quarters and child mortality by two-thirds—will not be met, the aim of halving global poverty between 1990 and 2015 was achieved five years early.

The MDGs may have helped marginally, by creating a yardstick for measuring progress, and by focusing minds on the evil of poverty. Most of the credit, however, must go to capitalism and free trade, for they enable economies to grow—and it was growth, principally, that has eased destitution.

The world now knows how to reduce poverty. A lot of targeted policies—basic social safety nets and cash-transfer schemes help. So does binning policies like fuel subsidies to Indonesia’s middle class and China’s hukou household-registration system that boost inequality. But the biggest poverty-reduction measure of all is liberalizing markets to let poor people get richer. That means freeing trade between countries (Africa is still cruelly punished by tariffs) and within them (China’s real great leap forward occurred because it allowed private business to grow). Both India and Africa are crowded with monopolies and restrictive practices.

Many Westerners have reacted to recession by seeking to constrain markets and roll globalization back in their own countries, and they want to export these ideas to the developing world, too. It does not need such advice. It is doing quite nicely, largely thanks to the same economic principles that helped the developed world grow rich and could pull the poorest of the poor out of destitution.

05 Jun 15:27

It’s been more than 3 years, and Eric Holder has failed to correct his misinformation on the DOJ website

by Mark J. Perry
Jts5665

Something else Holder is lying about.

deathsAccording to data available from the Centers for Disease Control and Prevention for 2008, the top five leading causes of death for black females ages 15-45 are listed in the table above. Note that the 806 homicides in 2010 include the total combined number of murders by: a) family members, b) intimate partners, c) acquaintances, and d) strangers. Also, data for 2009 and 2010 are now available and reveal almost identical rankings for leading causes of death as in 2008; data from 2008 are presented here because those would have been the most recent statistics available in 2009 when Eric Holder prepared his remarks that included misinformation about the leading causes of death for black females — see below.

Despite the fact that homicides were the fifth leading cause of death for African-American women ages 15-45 in 2008, and despite the fact that homicides include three other categories besides intimate partners, the Attorney General of the United States Eric Holder makes this false claim on the Department of Justice website: “Disturbingly, intimate partner homicide is the leading cause of death for African-American women ages 15 to 45.” He actually first made that false claim in a speech on August 3, 2009, when he said “Intimate partner homicide is the leading cause of death for African-American women ages 15 to 45. These statistics are shocking and completely unacceptable.”

In a USA Today op-ed back on February 4, 2011, my AEI colleague Christina Sommers pointed out that it would be shocking and completely unacceptable if it were true, but in fact, it absolutely is not true (see table above). Instead, it’s shocking and completely unacceptable for the attorney general of the United States to spread false statistics that aren’t even remotely close to being true or accurate. Shocking, indeed. Especially when you see how that misinformation has spread so widely over the last three years and been quoted as fact by an institute on domestic violence at the University of Minnesota, on YouTube, in books like this one, on the American Bar Association website, and by a writer on the Huffington Post website, among many, many other websites, articles, and blog posts. Disturbingly, a Google search of Holder’s quote “Intimate partner homicide is the leading cause of death for African-American women ages 15 to 45″ reveals that the false claim now appears on more than 9,000 websites.

Thanks to Christina Sommers for exposing this false claim that has now remained on the Department of Justice (DOJ) website for more than three and-a-half years without correction, and her challenge to Eric Holder:

Victims of intimate violence are best served by the truth. Eric Holder should correct his department’s website immediately.

After more than three years, it doesn’t look like the false information on the DOJ website will be corrected. Maybe Rep. Darrell Issa can add the spreading of misinformation by Eric Holder and the Department of Justice to the list of reasons to investigate the Attorney General?

05 Jun 15:19

Big Sugar costs US consumers $3.7 billion every year in higher prices and has killed 127,000 jobs since 1997

by Mark J. Perry

From a study released today by Agralytica titled “Economic Effects of the Sugar Program Since the 2008 Farm Bill & Policy Implications for the 2013 Farm Bill“:

Changes to the sugar program in the 2008 farm bill made a bad program even worse and have destabilized the US sugar market. The bill increased price supports, restricted USDA’s ability to adjust import quotas, and guaranteed that taxpayers would subsidize the disposal of any surpluses that arose by converting them to fuel ethanol.

US sugar prices rose to record levels during the first four years of the 2008 bill. The extra cost to consumers averaged $3.7 billion per year. To date, prices have averaged 46 cents per pound compared to 28 cents under the 2002 farm bill. Consequently, employment in sugar-using food and beverage industries (which compete against imported products made with cheaper world- market sugar) has continued to decline, with nearly 127,000 jobs lost since 1997.

US and Mexican sugar producers have responded to the record high prices in the US market by expanding production about 20-25 percent, and now we have a surplus that is putting downward pressure on prices and may force the USDA to spend up to $250 million to deal with it.

While the new farm bill will cut support programs for most crops, the sugar industry seeks to be the lone exception and keep its sweet deal. If we are to get off this sugar price roller coaster, reform of the sugar program is required. We need a sugar policy that rolls back the changes made in the 2008 bill and strikes a fair balance between the interests of consumers and the interests of producers.