Archive for the 'Economy' Category

Religiosity is Proportional to Economic Disparity

Tuesday, June 17th, 2008

Why, we all wonder, is America alone among the “First World Nations” to have such a high proportion of science-denying religionists, and even in high offices? According to Gregory Paul and Phil Zuckerman in Why the Gods Are Not Winning (that I found via this summary by Pharyngula) religiosity is higher as the more poor more envy the more rich. That is, the bigger the difference between the downtrodden and the ruling classes, the more people turn to religion to explain their lot. Our country may still be relatively rich, but as the government openly appears to ignore the needs of the sugffering (Katrina, Economic collapse, National Guard and “Stop Loss” in Iraq, etc) more people turn to religion for comfort.

These articles attempt to show that we are not actually being overrun by religious thinkers, that mega-churches are just a consolidation of the remnants of dying neighborhood churches, and that the best chance that churches have of taking over like they had in the dark ages is to increase the disparity between rich and poor. The current administration has been doing them a bonny service, but it is not enough to stem the tide of ever increasing rationalism. So they claim, and I hope.

This post was written by Dan Klarmann

Poor people will be best prepared to deal with a severe economic depression.

Saturday, June 14th, 2008

Who is best prepared to deal with a severe economic depression?

Based on the work of educator and author Ruby Payne, the best survivors in difficult economic times might be those who are in the lowest economic class, those in “generational poverty.” Payne has spent her career studying the mindsets of economic classes and studying the best methods for crossing socioeconomic lines in education, work, and for social change. Her best known work is A Framework for Understanding Poverty (1998).

To understand Payne, it is important to understand her distinction between generational poverty and situational poverty.

Generational poverty [as opposed to situational poverty] is defined as two or more generations living in poverty. People in generational poverty exhibit certain ingrained patterns of behavior. These patterns are the result of having experienced the effects of poverty over time. The behaviors are part of their culture. For this reason, even though these individuals tend to have a much lower level of educational attainment, they do tend to have better coping and life skills than those in situational poverty.

The above is from a college outline produced by Kerri McCormack.

According to Payne, there are, indeed, class distinctions here in America and there is much more to these class distinctions than the amount of money the people possessed. We are each driven by a set of “hidden rules” that drive us along like psychological tectonic plates.

Hidden rules are the unspoken cues that dictate behavior. But these hidden rules apply to much more than just behaviors and actions. They are part of the culture of each socioeconomic class. These hidden rules are the basis for how individuals make decisions. For example, in the middle class, the driving forces for decision-making are work and achievement. In the wealthy class, decisions are based upon social, financial, and political connections. In generational poverty, survival, relationships, and entertainment are the forces that determine decisions.

What are some specific “hidden rules”? Payne has identified many of them (and this list is, again, from the McCormack Outline). They sound stereotypical, but they also ring true to me.

Food – Quantity vs. quality
Wealthy – The presentation of the food, making it aesthetically appealing, is what is important
Middle Class – The quality of the food is what is important
Generational Poverty – It is about quantity; having enough is what matters

Fighting – How conflicts are resolved
Wealthy – Done through social exclusion and lawyers
Middle Class – Done verbally; issues are discussed
Generational Poverty – Done physically with fists and bodies

The World – How individuals see themselves in the world
Wealthy – Part of the international / global world
Middle Class – National; staying within the continent
Generational Poverty – Local; rarely leaving the state or even the county

Possessions – What is important to own
Wealthy – One-of-a-kind objects, legacies, and pedigrees
Middle Class – Material items (cars, electronic gadgets, clothes, etc.)
Generational Poverty – People and relationships

Love and Acceptance – What determines love and acceptance
Wealthy – Whether the individual is connected and has social standing
Middle Class –Achievements and success
Generational Poverty –Whether the individual is liked

The images this list triggers for me are startling (and humorous). Imagine, during a severe depression, the class of people who have previously coped by drawing on their social prestige and constantly relying on their cell phones and wealth to get others to work for them. Compare the people with such a “wealthy” mindset with those who have had to fend for themselves for their entire lifetimes. There will be a steep learning curve only for the former.

The question, again, is who is best prepared to survive a severe and extended economic hardship? I’m writing this post to point out the irony. When a depression hits hard, those of us who are middle or upper class might find it worth our while to study the coping skills of those who have already proved themselves by surviving generational poverty.

It’s not that the middle and upper classes have nothing to contribute during desperate times. According to Payne’s theory, people of moderate or extreme wealth would be best placed to make long range changes regarding extended economic depression because they aren’t fatalistic (those in generational poverty tend to be fatalistic) and they tend to see beyond the immediate present (those in generational poverty have difficulty doing this).

This post was written by Erich Vieth

How bad is the financial condition of the United States?

Sunday, June 1st, 2008

Ask David M. Walker, the Comptroller General of the United States and head of GAO. Here’s what he said in a Dec 17, 2007 speech at the National Press Club:

“If the federal government was a private corporation and the same report came out this morning, our stock would be dropping and there would be talk about whether the company’s management and directors needed a major shake-up.” Walker urged greater transparency and accountability over the federal government’s operations, financial condition, and fiscal outlook . . .

“The federal government’s fiscal exposures totaled approximately $53 trillion as of September 30, 2007, up more than $2 trillion from September 30, 2006, and an increase of more than $32 trillion from about $20 trillion as of September 30, 2000,” Walker said. “This translates into a current burden of about $175,000 per American or approximately $455,000 per American household.”

[Emphasis Added].

This post was written by Erich Vieth

How Americans waste food: they burn more because they’re obese and they throw it away.

Sunday, May 18th, 2008

Americans are increasingly complaining that the cost of food is going up. Two recent articles demonstrate that Americans are profligate wasters of food in at least two major ways:

1) Obese people consume 18% more food energy than lean people and more than sixty million Americans are obese. Simply put, it takes more calories to maintain an obese body than a slimmer body, assuming both of them engage in similar amounts of activity.

2) Americans throw away an incredible 27% of their food. According to this article in the NYT:

Americans waste an astounding amount of food — an estimated 27 percent of the food available for consumption, according to a government study — and it happens at the supermarket, in restaurants and cafeterias and in your very own kitchen. It works out to about a pound of food every day for every American.

These two problems suggest two solutions. To save money on one’s food bill: A) Bring your body down to its appropriate and healthy size and B) Stop wasting good food by throwing it away.

This post was written by Erich Vieth

To deal with “arrogant” scientists we need to move beyond reductionism and break the “Galilean Spell.”

Wednesday, May 7th, 2008

I don’t want no god on my lawn
Just a flower I can help along
‘Cause the soul of no body knows
how a flower grows… Oh how a flower grows . . .

“Longer Boats,” by Cat Stevens (now known as Yusuf Islam).

Why are so many religious people uncomfortable with so many scientists? I can think of several reasons.

According to many Believers, scientists are arrogant know-it-alls. Believers see scientists as emotionally sterile lab-dwellers who flaunt their white coats and their fancy lab equipment.

Scientists exacerbate the situation by speaking and writing using esoteric language that makes science-phobes feel ignorant. By using such difficult concepts and language, scientists have raised the bar, which excludes many folks from joining scientific discussions.

It’s not like the “good old days,” where people were generally informed enough to join many conversations regarding science (or social science). Things are different now. Those who want to join a discussion regarding evolution, stem cells, or cosmology (to take a few examples) would be well-advised to first spend at least a week in the library reading several reputable books on these topics. This is a far greater time commitment than it takes to go to church. It’s a lot easier to accuse scientists of being “elitist” or to hurl Bible quotes than it is to take the time to responsibly prepare so that one can meaningfully participate in scientific discussions. Those who put their trust in their church leaders on matters of science are often not willing to make such an investment, however. They prefer the opinions of non-scientist preachers over those of real-life scientists. In doing this, they engage in religionism (see definition #3 here).

Making matters worse for Believers, scientists and other intellectuals have had the audacity to disprove a steady stream of religious claims. The Earth is obviously older than 6,000 years. The Shroud of Turin is a fake. The clumps of 60 cells we call blastocysts are biologically incapable of thinking or feeling (despite claims of “souls”), and not all of the words of the Bible are authentic. The list goes on and on. Almost every time scientists focus their methods on religious claims (the ones that are amenable to testing, anyway), those religious claims tend to crumble. Methodical and rigorous evidence-based analyses keep making fools of religious folks, especially literalist Believers.

It makes it even more painful for Believers that most world-class scientists have no patience with religion and they are getting more vocal about it every day. A new wave of books, including Daniel Dennett’s 2007 effort, “Breaking the Spell” rallies the troops of scientists to put religion itself under the microscope.

In the minds of Believers, the scientists have no plans to stop until they have completely destroyed everything that is sacred or moral. Look at all of the damage that they’ve already done by promoting the works of Darwin, who has A) “demoted” humans to the level of animals; B) promoted the idea that nature’s great function and beauty randomly happened; and C) made a formidable argument that nothing is truly immoral anymore because there is no longer any need for God.

Worse yet, Believers can plainly see that the scientific establishment has gained command of magic that really works (as opposed to religious magic). Those damned scientists have figured out how to build airplanes that really fly and they’ve designed diagnostic tests that really show why a person is sick. Contrast these undeniable accomplishments to the track record of Believers: prayers that don’t really heal, predictions of the end of the world that fail and promises of heaven that have absolutely no basis in fact.

That’s how many (though certainly not all) Believers see the situation. Many religious faithful are thus become motivated by what Nietzsche termed ressentiment: the transfer of the pain that accompanies feelings of inferiority onto an external scapegoat, coupled with an urge for vengeance against those who are noble.

But it gets even worse for Believers. What gripes them more than anything else is that so many scientists act like they know it ALL when they don’t really know it all. They don’t really know that there is no heaven! They can’t disprove that I talk with God in my prayers! They weren’t there when the universe was created. So why are they so certain that they are right where scientific facts collide with religious factual claims?

To many religious folks, scientists constantly threaten social traditions in an arrogant and ignorant way. Therefore, many members of conservative religions don’t merely disagree with scientists on particular issues. No, they disparage all of science (except the science that helps them disparage science, such as the science that allows them to possess those marvelous computers on which they rant about “arrogant” scientists). When this level of frustration festers, it can even culminate in the election of a President who gains immense support when he, himself, disparages science.

If the above descriptions are even half-true, no wonder scientists are the targets of so much animosity these days!

Is there anything we can do about this sad state of affairs? Perhaps there is. It would involve a reframing of what it means to be a scientist. It has to do with publicly recognizing serious limitations of science. It involves a recognition that science is a “sacred” endeavor.

I have just finished reading a provocative new article by Stuart Kauffman: “Breaking the Galilean Spell.” Kauffman is a professor of biological sciences, physics and astronomy. He is actively involved at the Santa Fe Institute and he is the author of a book on complexity that inspired me: At Home in the Universe: the Search for the Laws of Self Organization (1995). Kauffman’s writings are both rigorous and poetic.

I sense that Kauffman feels the rampant distrust that many people have regarding scientists. Although Kauffman doesn’t mention the fever-pitched ressentiment felt by many Believers, I suspect that this ressentiment motivated Kauffman to write “Breaking the Galilean Spell.” (more…)

This post was written by Erich Vieth

Earth Day is (mostly) a salve.

Tuesday, April 22nd, 2008

The best way to get people to neglect a cause is to dedicate a Special Day to that cause each year. On that one special Day, we will hold thousands festivals where we treat the cause in a trite way and we will ignore that cause the other 364 days. We’re just too busy with our amusements and distractions to give a damn about important things here in America. Earth Day fits the mold perfectly. You would think that at Earth Day festivals, people would take the purpose of Earth Day seriously. You’d think that people would feel the need to make substantial immediate changes in their lives in order to live and procreate in healthy and sustainable ways, leaving the planet in good shape for the following generations of humans and the other animals. What could be done on Earth Day? We could talk big. We could make real plans to take the actions suggested by visionaries like Lester Brown, who proposes that we cut carbon emissions by 80% by 2020. It could really be done. Here’s how Brown describes his plan in his book, Plan B 3.0:

First, dramatically and systematically raise the efficiency of the world energy economy; second, massive investment in renewable sources of energy; and third, increase the earth’s tree cover by planting billions of trees.

Really doing something on a big scale could “inspire awareness of and appreciation for the Earth’s environment.” But most people aren’t doing anything at all. They are content to live the same wasteful lives people lived 20 years ago.

I discussed Earth Day with several people recently (in stores, not at the Earth Day festival). They rolled their eyes when I suggested the need to actually change the way we live our lives. They think that Earth Day is run by a bunch of hippies and they don’t trust hippies.

Even those who don’t scoff at the idea of Earth Day mostly believe in belief in Earth Day (just like most religious believers, who often believe in belief). Many Earth Day’ers believe it’s sufficient to merely say and think responsible things, even if the way they live their lives are indistinguishable from those who don’t believe in Earth Day. Many of these people celebrating Earth Day drive to Earth Day festivities in SUV’s from their homes way out in the Suburbs. When they’re done shopping at Earth Day (and there are lots of non-essential things to buy at Earth Day), they drive back out to the suburbs. This inaction reminds me of a neighbor who mentioned a topic to which I responded “That really concerns me.” He immediately chastised me: “No it doesn’t. If you were actually concerned, you’d be doing something about it.” (more…)

This post was written by Erich Vieth

The U.S. government is consciously misrepresenting our sick economy

Wednesday, April 16th, 2008

How bad is the economy?  In the May issue of Harpers Magazine, Kevin Phillips cuts through the numbers in an article entitled “Numbers Racket:  Why the economy is worse than we know.” The revelations Phillips makes are shocking.  The U.S. government has been consciously cooking the books for decades.

How do you make inflation look lower than it is?  Just remove some items from consideration and create value out of thin air (e.g., “product substitution,” “geometric weighting” and “hedonic adjustments”).   Truly, you’ve GOT to read the details to believe what has been going on.  If you think that inflation is running between 2% - 4%, think again.  Using honest accounting methods, it’s more like 12%.  If CPI had been honestly reported for the past couple of decades, Social Security checks would be 70% greater than they currently are.

We have an official unemployment rate of 5%.  The government arrives at that nice low number by simply not counting all of the people who want jobs.  If you really counted those people, the U.S. has an employment rate of about 9%.

Who profits from these fake number of low inflation and low unemployment?

Might it be Washington politicos and affluent elites, anxious to mislead voters, coddle the financial markets, and tamp down expensive cost-of-living increases for wages and pensions?

Don’t forget the utterly ridiculous concept of “imputed income,” one of several forms of phantom income, which constitutes 15% of GDP.

Phillips see nothing but trouble resulting from the use of these methods of cooking the national books. An honest accounting “would reveal a nation in deep difficulty not just domestically but globally.”

The undermeasuring of inflation is especially insidious:

[I]t hangs over out heads like a guillotine.  To acknowledge it would send interest rates climbing, and thereby would endanger the viability of the massive buildup of public and private debt(from less than $11 trillion in 1987 to $49 trillion last year) that props up the American economy . . . The U.S. dollar, off more than 40 percent against the euro since 2002, could slip down an even rockier slope.

This post was written by Erich Vieth

Can you spend three trillion dollars better than George W. Bush?

Tuesday, April 15th, 2008

This site thinks so. 

If you hunt through the categories, you’ll see many ideas better than occupying Iraq while incurring tens of thousands of U.S. troop casualties.

This post was written by Erich Vieth

What you can do with a philosophy degree.

Monday, April 14th, 2008

Philosophy majors are not getting rich, but they’re able to buy enough food to allow them to sit around and ponder things.   Truth be told, philosophy majors are at the bottom of the list in starting salaries.  As someone who majored in philosophy, I found these statistics to be of interest.   In my junior year of undergrad, majoring in philosphy, I panicked. What was I going to do next?  My brother-in-law (a lawyer) suggested I go to law school.  This didn’t sound like a good idea at the time, because my self-image didn’t involve wearing a suit or carrying a briefcase. 

Nonetheless, I ended up going to law school, which is not uncommon for philosophy majors, according to this article. [I don't actually wear a suit or carry a briefcase as much as I worried I'd be doing.  Most work days, even for trial lawyers like me, occur back at the office, not in court.]  If you don’t want to go to law school, here are some other things you can do with a philosophy degree.

Despite the potential financial drawbacks, I’m glad I majored in philosophy.  To the extent that I’m able to think clearly, I attribute some of that ability to my training in philosophy.  There are many sites that describe the various benefits to studying the allegedly “worthless” subject of philosophy, including this page from the website of the University of South Dakota:

Philosophy is in a sense inescapable: life confronts every thoughtful person with some philosophical questions, and nearly everyone is guided by philosophical assumptions, even if unconsciously. One need not be unprepared. To a large extent one can choose how reflective one will be in clarifying and developing one’s philosophical assumptions, and how well prepared one is for the philosophical questions life presents. Philosophical training enhances our problem-solving capacities, our abilities to understand and express ideas, and our persuasive powers. It also develops understanding and enjoyment of things whose absence impoverishes many lives: such things as aesthetic experience, communication with many different kinds of people, lively discussion of current issues, the discerning observation of human behavior, and intellectual zest. In these and other ways the study of philosophy contributes immeasurably in both academic and other pursuits.

The long-range value of philosophical study goes far beyond its contribution to one’s livelihood. Philosophy broadens the range of things one can understand and enjoy. It can give one self-knowledge, foresight, and a sense of direction in life. It can provide, to one’s reading and conversation, special pleasures of insight. It can lead to self-discovery, expansion of consciousness, and self-renewal. Through all of this, and through its contribution to one’s expressive powers, it nurtures individuality and self-esteem. Its value for one’s private life can be incalculable; its benefits for one’s public life as a citizen can be immeasurable.

In spite of the above benefits, I must admit that articles in modern philosophy journals tend to drive me batty.  These authors too often publish for the sake of publishing rather than writing because he or she is passionate about the topic.  A clue that I am correct about this is to notice the incredible amount of esoteric hair-splitting characteristic of such articles.  And do we really need the 180,000th article about Immanuel Kant’s categorical imperative?  This is especially frustrating in that several professional philosophers have confessed to me that they don’t ever refer to the teachings of moral philosophers when deciding personal moral challenges.

For me, the challenge has been to learn to apply the critical thinking skills in practical ways to real world problems.  In short, I refuse to think that the study of philosophy itself is the end game.  My faith is that there are real-world applications and consequences for those classroom lessons.  Even if trying to apply one’s philosophy readings and writings to the real world is like emerging from the academic Cave and being blinded by the bright light of the real world. 

This post was written by Erich Vieth

Dan Smolin asks whether you are a victim of investment pornography.

Tuesday, April 1st, 2008

Dan Smolin writes some persuasive posts on the topic of investing.   I’m categorizing this post under “snake oil” because of a point that Smolin repeatedly makes:  that virtually every investment professional’s claim that he/she can help you beat the market is false.  Dan often does a Q&A.  Here’s a recent example:

Question: Can I beat the markets by buying low and selling high?

Answer: It would be great if you could. One study showed that someone with the ability to be in Treasury Bills during bad times in the market and in stocks during good times over a 52-year period would have seen her $1000 investment increase to a whopping $5.36 billion!  Do you know anyone who achieved these returns? Have you even read about any one who did?

Here is the bottom line: There is no evidence that anyone has the ability to predict highs and lows in the market. If they did, there would be a lot of billionaires out there who made their money market timing. They don’t exist.

Smolin doesn’t just look at the results.  He gives good analyses of why no one can consistently beat the market.  Yet there are huge numbers of intellectually sophisticated investors who want to believe, beyond all evidence, that there are special gurus out there who can work magic on their investments.  Smolin’s advice suggests that people avoid “stock-picking” (even by “professionals”) and that they buy broadbased index funds that have low maintanence fees. Don’t let any investment “expert” tell you otherwise.

One study looked at the performance of 71 mutual funds whose investment styles roughly paralleled the S & P 500 over a 10 year period. Only two of these funds beat the index.

In another study, Vanguard founder John Bogle found that only nine out of 355 equity funds beat their benchmark over a period of 30 years.

There are many similar studies.

Stock picking is a loser’s game for most investors.

This post was written by Erich Vieth

There might not be a “plausible” way out of this country’s financial mess.

Tuesday, April 1st, 2008

There might not be a plausible way out of our country’s financial mess.  That’s the opinion of Kevin Phillips, a former republican strategist who works as an economics commentator.  What are the main problems? 

[P]hony Washington statistics and warped market measurements make it doubly hard to tell. The federal Consumer Price Index is already regarded by many Americans as a con job, and the press periodically quotes investors who state their belief that current U.S. inflation is really 6 to 9 percent a year, not the 2-4 percent the government alleges. I agree. On top of which, because the value of the dollar has dropped so far, the Dow Jones Industrial Average at the end of March was not really 12,200, a number barely up from its 11,700 peak in 2000. If you measure the Dow in Swiss francs or euros, two strong currencies, it has already lost some forty percent of its 2000 value. Too many Americans live in a dream-world of economic misinformation. . . . Today, the economic negligence of Washington and Wall Street, more than two decades in the making, has led to a multi-dimensional crisis in which this country faces an unprecedented convergence of problems: unprecedented debt, tumbling home prices, reckless money supply expansion, growing inflation, insufficient and expensive oil, and an eroding dollar. Sadly, there may no longer be a plausible way out.

This post was written by Erich Vieth

Gasoline and Iraq

Tuesday, April 1st, 2008

life-as-we-know-it.jpg

Price Of Oil
Bob Englehart, The Hartford Courant

 

our-saudi-friends.jpg

Our Saudi Friends
Keefe, The Denver Post

 

tanking-economy.jpg

Tanking Economy
Nate Beeler, The Washington Examiner

 

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Iraq Milestone 4000
Brian Fairrington, Cagle Cartoons

 

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McCain and the Iraq War
Bob Englehart, The Hartford Courant

This post was written by Erich Vieth

The daily cost of the Iraq occupation: $720 million

Thursday, March 27th, 2008

What is a meaningful way of understanding the immense amount of money the United States spends in Iraq each day? This simple video by American Friends Service Committee compellingly gets this point across.

How does one most fairly frame this issue of what the United States is spending in Iraq? It’s not only a matter of whether we should be in Iraq for strategic reasons (every reason presented by the Bush Administration has proven to be untrue). It’s also a matter of whether there are vastly superior ways of spending that immense amount of money (there are, as illustrated by the video below).

I’ve previously tried to illustrate the immense expense we are incurring in Iraq here , here , here and here.

This post was written by Erich Vieth

The other kind of prostitute: sex for a sandwich.

Friday, March 14th, 2008

Not all hookers are like “Kristen,” the gorgeous, high-living prostitute allegedly employed by Eliot Spitzer.  Not all prostitutes work for wealthy and powerful executives or politicians.   Not all prostitution is provided under the supervision of a sophisticated club like the Emperor VIP club.  

A friend of mine, Geri Dreiling, wrote a detailed article about the other kind of prostitute, the kind that will trade sex for “a sandwich from a nearby convenience store, even a bucket of chicken from KFC.”  Geri’s award-winning article was published by a St. Louis alternative newspaper, The Riverfront Times, in 2002.

Here are a few excerpts:

Like most prostitutes working the streets of St. Louis, Tammy Sue Curtner is a drug addict.

A 33-year-old mother with wavy brown hair and pale skin, Tammy traded her body for drugs, a blowjob for twenty bucks. She’d turn tricks in an alley, in a stranger’s car, on a dirty communal mattress in a vacant building littered with broken bottles and used needles.

Her johns were downtown businessmen on the way to work in the morning, construction workers on lunch breaks, married men bored with their subdivision lives.

“I’ve met all types of guys, straight down to the weirdest and the nastiest,” she says. “Lawyers, doctors, straight down to bums.”

. . . The four-hundred-plus women [Judge Jim Sullivan] sees are, on average, over the age of 31 and sexually abused drug addicts; some are mentally ill, dropouts with an eleventh-grade education and the mothers of two children. Some have HIV, and at least one study suggests that close to 30 percent of the women have hepatitis C, another deadly disease.

And no one resembles Julia Roberts.

Many are overweight, filthy from living on the streets, sick and desperate. They don’t wear seductive garb; instead, these women sport dirty T-shirts and shorts or discarded clothing thrown away in alley Dumpsters.

This post was written by Erich Vieth

Representative Earl Blumenauer (Oregon) recognizes the value of bicycles as a mode of transportation

Thursday, March 13th, 2008

On Feb. 28, Rep. Earl Blumenauer, D-Ore. submitted House Congressional Resolution 305 for consideration to the House of Representatives: “Recognizing the importance of bicycling in transportation and recreation.” I assume that this resolution is a perfectly valid reaction to this boneheaded statement by one of Bush’s appointees.

I don’t think Blumenauer’s resolution has any chance of passing, because it suggests that some money now going for highways should actually be used to encourage people to use bicycles for their transportation needs.   God forbid that we actually encourage such a perfectly sensible mode of transportation.  You know the arguments, prevents obesity, uses no fossil fuel, cheap, is perfect for urban commutes.  I’ve previously posted on some of the many reasons to use a bicycle for commuting.  There are, indeed, many reasons for doing so, especially in an urban area where many commutes are fewer than five miles.  BTW, what would a bicycle-friendly city look like?  Here’s one version.

I learned of Bluemenauer’s resolution by reading Andrew Leonard’s article in Salon.com, “Life and death and bicycling.”  Just because you use a bicycle doesn’t mean you are “green.”  Leonard includes a Sierra Club test to see how “green” you are.  I am a rather cool 92 out of 100, a very green cyclist! 

I do want to publicly thank Representative Blumenauer for bringing some much-needed attention to bicycles as a serious mode of transportation.   His resolution is chock full of statistics that should (but likely won’t) wake up those who don’t yet take bicycling seriously.   I’m pasting in, below, the full text of Bluemauer’s resolution on the importance of bicycling (here’s another place to read the full resolution):

110th CONGRESS
2d Session
H. CON. RES. 305
Recognizing the importance of bicycling in transportation and recreation.

IN THE HOUSE OF REPRESENTATIVES
February 28, 2008

Mr. BLUMENAUER (for himself and Mr. OBERSTAR) submitted the following concurrent resolution; which was referred to the Committee on Transportation and Infrastructure


CONCURRENT RESOLUTION
Recognizing the importance of bicycling in transportation and recreation.

Whereas a national transportation system conducive to bicycling produces enriched health, reduced traffic congestion and air pollution, economic vitality, and an overall improved quality of living is valuable for the Nation;

Whereas by dramatically increasing levels of bicycling in United States cities tangible and intangible benefits to the quality of life for cities and towns across the country will be realized;

Whereas we now live in a Nation with 300 million people, and that number is expected to grow to 365 million by 2030 and to 420 million by 2050 with the vast majority of that growth occurring in urban areas with limited ability to accommodate increased motor vehicle travel;

Whereas since 1980, the number of miles Americans drive has grown 3 times faster than the United States population, and almost twice as fast as vehicle registrations;

Whereas one-third of the current population does not drive due to age, disability, ineligibility, economic circumstances, or personal choice;

Whereas the United States is challenged by an obesity epidemic, 65 percent of United States adults are either overweight or obese, and 13 percent of children and adolescents are overweight, due in large part to a lack of regular activity;

Whereas the Center for Disease Control estimates that if all physically inactive Americans became active, we would save $77 billion in annual medical costs;

Whereas over 753 of our Nation’s Mayors have signed onto the climate protection agreement of the United States Conference of Mayors urging the Federal Government to enact policies and programs to meet or exceed a greenhouse gas emission reduction target of a 7 percent reduction from 1990 levels by 2012;

Whereas the transportation sector contributes one-third of the greenhouse gas emissions in the United States and passenger automobiles and light trucks alone contribute 21 percent;

Whereas bicycle commuters annually save on average $1,825 in auto-related costs, reduce their carbon emissions by 128 pounds, conserve 145 gallons of gasoline, and avoid 50 hours of gridlock traffic; (more…)

This post was written by Erich Vieth

How (corn) ethanol kills: a lesson in basic economics pertaining to fuel supply, fuel demand and price.

Wednesday, March 12th, 2008

In an earlier post, I argued that people need to better appreciate that dollars are fungible (see here  and here).  Why is it important to understand that dollars are fungible?  A case in point is the new American enthusiasm for turning food into fuel. Consider this report from Fortune Magazine:

The growing myth that corn is a cure-all for our energy woes is leading us toward a potentially dangerous global fight for food. While crop-based ethanol -the latest craze in alternative energy - promises a guilt-free way to keep our gas tanks full, the reality is that overuse of our agricultural resources could have consequences even more drastic than, say, being deprived of our SUVs. It could leave much of the world hungry.

We are facing an epic competition between the 800 million motorists who want to protect their mobility and the two billion poorest people in the world who simply want to survive. In effect, supermarkets and service stations are now competing for the same resources.
 
This year cars, not people, will claim most of the increase in world grain consumption. The problem is simple: It takes a whole lot of agricultural produce to create a modest amount of automotive fuel.

The grain required to fill a 25-gallon SUV gas tank with ethanol, for instance, could feed one person for a year.

And consider this additional bad news from Earth Policy Institute: 

We are witnessing the beginning of one of the great tragedies of history. The United States, in a misguided effort to reduce its oil insecurity by converting grain into fuel for cars, is generating global food insecurity on a scale never seen before.

The world is facing the most severe food price inflation in history as grain and soybean prices climb to all-time highs. Wheat trading on the Chicago Board of Trade on December 17th breached the $10 per bushel level for the first time ever. In mid-January, corn was trading over $5 per bushel, close to its historic high. And on January 11th, soybeans traded at $13.42 per bushel, the highest price ever recorded. All these prices are double those of a year or two ago.

As a result, prices of food products made directly from these commodities such as bread, pasta, and tortillas, and those made indirectly, such as pork, poultry, beef, milk, and eggs, are everywhere on the rise. In Mexico, corn meal prices are up 60 percent. In Pakistan, flour prices have doubled. China is facing rampant food price inflation, some of the worst in decades.

Here’s are a few rhetorical questions to consider:  Can Americans justify filling up any more of those big SUV fuel tanks now that there is solid evidence that doing so will cause families on the other side of the world to suffer and die?  Can we justify cranking up the heat in the winter to stay toasty warm?  Should we merrily take long trips without considering the effects of burning this extra fuel on food prices (and thus food availability) to those people who are living on the margin?  Can we justify building more houses in the exburbs? 

We are now witnessing a collision between A) our desire to have fun and feel prestige through the discretionary buring of fuel, versus B) our ability to honestly look in the mirror to see ourselves as kind, decent and caring people.

This post was written by Erich Vieth

We are naive fools to wait for the free market to save us from impending shortages of critical natural resources

Tuesday, March 11th, 2008

“The free market–the invisible hand–will take care of everything.”

I’ve addressed this topic of the free market as alleged panacea several times before.  I’ve referred to this blind faith in the market as unsubstantiated.  I’ve mockingly referred to the common belief in the wisdom of the invisible hand as a belief in the Fouth Person in the Holy Quartet.  Why mock?  Because stark shortages of critically important natural resources loom in every direction.   And yet we’re in denial. You deny the denial?  Then how is it that we tolerate, this year, big U.S. metropolitan areas like Raleigh-Durham and Atlanta had only a few weeks left of their municipal water supplies?  We tolerate that we are drawing down unreplenishable water sources throughout the desert southwest.  Intelligent civilizations don’t deny such dangers.  They consciously deal with their problems.

I’ve just read a well-phrased description of why the modern version of the free market can’t save us from our problems regarding impending shortages of essential natural resources.  The following quote is from a new book available free on-line from Population Connection: PLAN B 3.0: Mobilizing to Save Civilization, by environmental analyist, Lester R. Brown (2008).

Now with the economy as large as it is, the indirect costs of burning coal—the costs of air pollution, acid rain, devastated ecosystems, and climate change—can exceed the direct costs, those of mining the coal and transporting it to the power plant. As a result of neglecting to account for these indirect costs, the market is undervaluing many goods and services, creating economic distortions.

As economic decision-makers—whether consumers, corporate planners, government policymakers, or investment bankers—we all depend on the market for information to guide us. In order for markets to work and economic actors to make sound decisions, the markets must give us good information, including the full cost of the products we buy. But the market is giving us bad information, and as a result we are making bad decisions—so bad that they are threatening civilization.

The market is in many ways an incredible institution. It allocates resources with an efficiency that no central planning body can match and it easily balances supply and demand. The market has some fundamental weaknesses, however. It does not incorporate into prices the indirect costs of producing goods. It does not value nature’s services properly. And it does not respect the sustainable yield thresholds of natural systems. It also favors the near term over the long term, showing little concern for future generations.

Dick Cavett once said: “It’s a rare person who wants to hear what he doesn’t want to hear.”  Plan B 3.0 is the kind of information that those rare people ambivalently clamor to hear.    It’s clearly written and well documented.  There’s nothing shrill in Lester Brown’s book; just the facts—lots of facts that paint a dire picture.  Over and over, humans are overexploiting precious resources, and the situation is getting dangerous in many ways.  What’s at stake?  You name it.  Oil, food, water, forests, health, fisheries.   On the topic of fisheries, did you know that there are essentially no cod to be caught in the North Atlantic Ocean any more?   Gee, how did that happen?  Why didn’t the “free market” protect the North Atlantic Ocean?

Brown argues that we need to dramatically change the way we live and consume.   He argues that the “free market” is not a cure, unless we first make the true costs of over-exploitation visible and force purchasers to pay the full price.   We need to “Get the market to tell the ecological truth.” For example, the true cost of a gallon of gas is not $3/gallon, but more like $12/gallon. (more…)

This post was written by Erich Vieth

How much money have we spent to fight the so-called “war” in Iraq?

Tuesday, March 4th, 2008

A new Salon.com book review gives us the depressing and infuriating answers to how much the Iraq adventure is costing the citizens of the United States.   The book, written by Joseph Stiglitz and Linda J. Bilmes, is titled “The Three Trillion Dollar War:  The True Cost of the Iraq Conflict.”   In typical dyfunctional White House style, White House spokesman Tony Fratto has argued that the book is misguided because “One can’t even begin to put a price tag on the cost to this nation of the attacks of 9/11.”  As though the occupation of Iraq has anything to do with 9/11 . . .

The numbers presented by Stiglitz and Bilmes are truly staggering:

“The Three Trillion Dollar War” talks about two types of war-related expenses: budgetary and social. Budgetary costs include operational spending on Iraq and Afghanistan, which they estimate will total from $1.7 trillion to $2.7 trillion. (Throughout the book, the authors put forward two sets of figures: one based on a “best-case scenario” and one on a far more likely “realistic-moderate” scenario.) This figure includes the expense of keeping armies in the field, paying veteran-related costs, replacing equipment ($400 billion for this alone), and paying interest on the vast debt we have incurred to fight the war. So far, Congress has actually appropriated $645 billion for Iraq and Afghanistan since 2001, plus the $200 billion Bush asked for in 2008. As the authors point out, this is more than the U.S. spends annually on Medicare and Medicaid combined. And the monthly “burn rate” to pay for the wars has gone steadily up, from $4.4 billion in 2003 to $16 billion today. This means that every American household is spending $138 a month on the current operating expenses of the wars.

The additional “social” costs that are not borne by the government are harder to calculate — and more controversial.

As an aside, I find the neocon sleight of hand interesting.  The usual neocon line when it comes to taxes is that money paid as taxes really belongs to the people.   Fair enough.   Why then, don’t neocons emphasize that these wild, irresponsible, inefficient and often corrupt expenditures on the Iraq occupation (I don’t call it a “war”) are being paid with my money and your money, not “government” money?  If any of you American families out there have a better use for $138 each month than blowing up buildings and people in Iraq, raise your hand!

In an interview published by McClatchy Newspapers Feb 27, 2008, Stiglitz warns that the worst is yet to come regarding our military expenses in Iraq and Afghanistan:

In an interview, Stiglitz said that too much of the public debate had been over the wars’ operational costs while the real budget strains would show up only years from now.

“The peak expenditures are way out,” he said, noting that the peak expenditures for World War II vets came in 1993.

The McClatchy article reminds us of the rosy 2003 predictions of the Bush Administration:

When U.S. troops invaded Iraq in March 2003, the Bush administration predicted that the war would be self-financing and that rebuilding the nation would cost less than $2 billion.

Being off by a few decimal points in grade school gets a student a well-deserved “F.”  

This post was written by Erich Vieth

What are taxes good for?

Tuesday, February 19th, 2008

I received this email from a regular reader in response to one of my responses to my Creationism in Florida Schools post:

“The real question that comes to my mind after reading this St. Petersburg Times poll is, should we allow popular demand to decide what is taught in science classes?”

How about for deciding what is taught in science, deciding tax policy, setting social programs, setting foreign policy, etc., etc., etc.? Should we allow popular demand to decide for these as well? I think we currently do, and I think it is with the same disastrous results. The next logical question is how should we pick the deciders? The problem is, we will never move to the next logical question.

What was considered ancient political wisdom at the time of the Caesars was: If the people can vote themselves bread and circuses, they will. Concentration of capital is the primary benefit of a taxation system. It allows big things to be done by a people of whom no individual member can afford. Government social programs (a form of insurance that used to be the province of churches, thus the tradition of tithing) are an example of dilution of capital. As is the Economic Stimulus Package that raced through our government checks and balances without much of either.

The examples of Ancient Greece, the Medici families (practically an empire unto themselves), the California legislature, and the Summerhill project (as described in the book by A.S. Neill) show that, once people get used to controlling their own disbursments as a group, they eventually regularly (but not always) behave in a responsible manner toward the group, and therefore unselfishly benefit themselves. Good things can, and usually do, come of it.

But a key word is “eventually”. They must vote themselves “pork” for long enough to see the damage done by not providing for the greater good. Our system would prevent sufficient damage to let people see how bad these decisions can be. So we are perpetually in the broad borderlands between doing something good, and fiscal collapse.

The Federal Government was set up as a coordinator between the States of the union, and to limit the power of States where it may interfere with rights of the people. Phrases like “Provide for the Common Defense” and “Insure domestic tranquility” come to mind. Early in the 20th century, legislators went hog wild amending the constitution.

Then we had a rash of arguably unconstitutional federal programs established, such as Income Tax and Social Security (technically, these are voluntary). But the federal income tax was set up to pay for the common defense (war debts). And with over 20 workers per retiree, who would mind 5% for retirement insurance, half paid by the employer? Rather than deal with charging the states that then pass the charges on to the residents as state taxes, it was more expedient to charge people directly, originally based on the ability to pay. The personal deduction was originally above the median family income. Now the deductible is well below the poverty level. Also there are now only 7 workers per retiree, and falling (14% to FICA).

(more…)

This post was written by Dan Klarmann

“Push capitalism” turns us into full-time consumers and non-citizens

Friday, December 21st, 2007

Bill Moyers recently interviewed Benjamin Barber, a renowned political theorist and a distinguished senior fellow at Demos — a public policy think tank here in New York City. Barber’s most recent book is Consumed: How Markets Corrupt Children, Infantilize Adults, and Swallow Citizens Whole (2007). What’s the focus of this book?

[T]he global economy produces too many goods we don’t need, too few of those we do need, and, to keep the racket going, targets children as consumers in a market where shopping is a twenty-four hour business. Capitalism, he says, “seems quite literally to be consuming itself, leaving democracy in peril and the fate of citizens uncertain.”

Barber argues that we now have “push capitalism”:

They’ve got to sell all this stuff, and they have to figure out how to get us to want it. So they take adults and they infantilize them. They dumb them down. They get us to want things. And then they start targeting children. Because it’s not enough just to sell to the adults.

One prominent example is bottled water, which is often actually bottled tap water. Was there ever really a demand for expensive bottled tap water?  Yet so many of us demand it and claim to need it. Barber argues that American adults are, indeed, infantilized.

What I mean is that grownups, part of being grown up is getting a hold of yourself and saying, “I don’t need this. I’ve got to be a gatekeeper for my kid. I want to live in a pluralistic world where, yes, I shop, but I also pray and play and do art and make love and make artwork and do lots of different things. And shopping’s one part of that.” As an adult, we know that. But if you live in a capitalist– society that needs to sell us all the time, they’ve got to turn that prudent, thoughtful adult back into a child who says, “Gimme, gimme, gimme. I want, I want, I want.” Just like the kid in the candy store. And is grasping and reaching.

Barber argues that push capital