Competitive Enterprise Institute Volume 23, Number 4 July/august 2010 Remembering Julian Simon
By Stephen McIntyre and Simon, with predictable results. Ross McKitrick After finishing university in 1973, The following is adapted from he started work with Noranda Messrs. McIntyre and McKitrick’s Mines, then an important Canadian Julian Simon Award acceptance multinational mining company and speeches at the 2010 CEI Annual copper producer. This was right at Gala. the top of the copper market. Bad timing. Noranda was then a very hen you are Canadian in the large company, but it no longer WUnited States, you get used exists. This fate was shared by many to certain expressions of sympathy. firms as Simon’s predictions became How can you live in a country that reality. Stephen spent 30 years in the has government-run health care? A mining business, during which time government that finances itself by the price of copper trended steadily borrowing so much money all of downward, as Simon predicted. the time? That talks about a value- Julian Simon made his arguments added tax? That seems to want to with simple intuition and real-world regulate every aspect of your life? data—unlike most economists, We feel your pain. The 2010 Julian Simon Award unfortunately. And that is why his It is very flattering to receive ideas have had so much reach and an award named after the late Bomb. The bet was about Simon and endurance than is usually the case economist Julian Simon. Stephen likes to say Ehrlich’s disagreement about resource for academics. What he taught us was that that he—someone who spent 30 years in the scarcity in the decade leading up to 1990. the abundance of resources in a nation is mining industry—essentially made a career They chose five metals—copper, chromium, not just an accident of geography or history. taking the wrong end of the Simon-Ehrlich nickel, tin, and tungsten. Simon bet the Resources are not simply found; they must wager. prices would fall, while Ehrlich bet they be developed and put to productive uses The wager, as you might recall, would rise. By 1990, the real prices of all through the application of human ingenuity was made in 1980 between Simon and five metals had dropped, and Ehrlich paid and creativity. biologist Paul Ehrlich, best known for his Simon to settle the wager. Nations that enjoy the benefits of eco-alarmist views and his thoroughly Ironically, as was said, Stephen plentiful resources are those that preserve discredited 1968 book, The Population spent much of his career betting against (continued on page 3) Featured Articles
Young: saving CEI Annual 2010 Bureaucrash also inside: economics from gala student conference Opera and Politics: Not So Different economists After All, by Fred L. Smith, Jr...... 2 U.S. Tech Firms’ China Presence Furthers Internet Freedom ...... 5 The Good, the Bad, and the Ugly. . . . 10 Media Mentions...... 11 >>page 4 >>page 6 >>page 8 End Notes...... 12
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>>FROM THE PRESIDENT
Opera and Politics: CEI Not So Different After All PLANET By Fred L. Smith, Jr.
hen I was younger, I “Mr. Caruso, what is the matter?” he asked. Publisher Wenjoyed the theme that “The matter? You simpleton, I’m frightened!” Fred L. Smith, Jr. introduced the Lone Ranger, replied Caruso. Editor a heroic individual who went “But how can you, the greatest tenor in generations, Marc Scribner after bad guys. Now that I’ve become interested in be frightened?” opera, I know that it was the overture to the opera “You,” he exclaimed, “You do not need to be Editorial Director William Tell by Giacchimo Rossini. frightened. But I—every night—I must sing like the Ivan G. Osorio And while both the Lone Ranger and William Tell Great Caruso!” Contributing Editor were heroic, their targets were a bit different. The And in policy battles, we too are only as good Richard Morrison Lone Ranger fought generic bad guys. William Tell? as our last fight. The defense of freedom is not for He worked to free his nation, summer soldiers and, unlike Switzerland, from the tyranny operas, we don’t have a fixed The CEI Planet of a foreign power (perhaps schedule or intermissions. At CEI, we work hard is produced by someone Switzerland needs Legitimizing liberty in this the Competitive once again given the ongoing and we take seriously the most illiberal world is not Enterprise Institute, battle between Swiss bankers a 9-to-5 job, but a lifelong a pro-market public and the U.S. government). challenge of preserving commitment. interest group There are many other economic liberty. If we At CEI, we work hard dedicated to free parallels between the world and we take seriously the enterprise and of opera and that of politics. succeed, the peoples of challenge of preserving limited government. Opera is filled with drama, with the world will continue economic liberty. If we CEI is a non- intrigue, with betrayal. So is succeed, the peoples of the partisan, non- politics, except that politics has to enjoy all that life world will continue to enjoy profit organization far fewer heroes. Opera also all that life has to offer, and incorporated in has its comedy and tragedy, its has to offer, and that that includes opera. the District of divas and castrati, but then so includes opera. Recall the one operatic Columbia and is does politics—especially the phrase that almost everyone classified by the castrati! knows: “It’s not over until IRS as a 501 (c)(3) charity. CEI relies But just like in politics, wealth creation in opera the fat lady sings!” I don’t like that adjective, but it is upon contributions can lead to wealth redistribution. Rossini, a very worth noting that the phrase refers to Brunhilda’s final from foundations, successful opera composer, was awarded a pension aria at the ending of Wagner’s 20-hour mini-series The corporations and and retired at the early age of 38. Good for Rossini— Ring. Since Wagnerian sopranos are rarely Twiggies, individuals for its not so good for opera, as he never composed anything the phrase became shorthand for the ending of a support. Articles further—and a very bad precedent that may well struggle. may be reprinted trigger the bankruptcies of Europe, California, and To us at CEI, this phrase suggests that no policy provided they are perhaps America. battle is truly lost as long as we keep “singing.” So attributed to CEI. Opera, like policy work, can be a very demanding while economic liberty has recently experienced some activity. At an opening night at the New York Met, painful setbacks, CEI continues to sing louder than ever. a stagehand noticed the great tenor Enrico Caruso Phone: standing behind the curtains with shaking hands. (202) 331-1010 Fax: (202) 331-0640
E-mail: [email protected]
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Julian Simon, continued from page 1 My legacy?
I need to provide for my loved ones. But like my family, I want CEI to carry on for generations to come. What can I do?
It’s easy to do both. Talk to us about your options, like… Designating your retirement plan Stephen McIntyre (left) and Ross McKitrick received the Leaving a life insurance policy Julian Simon Award at the 2010 CEI Annual Gala. Making a bequest freedom, support entrepreneurship, professional statisticians convened by the through your will encourage risk taking, and allow citizens House Energy and Commerce Committee. Making a gift now, and to enjoy the fruits of their own work. In With respect to energy and global receiving income for life other words, the abundance of resources warming policy, we merely ask for is a consequence of the ideas a nation transparency, honesty, and common sense And much more holds dear. in the scientific and political processes. We are being recognized for this award Before laws regulating energy use are due to our involvement in the so-called enacted that could well cost the global Any of these Climategate scandal, in which thousands economy trillions of dollars, it is crucial to options could of emails and files were leaked from the understand the extent to which the alleged help you now and University of East Anglia’s Climatic scientific consensus supporting global provide for your Research Unit. Much of Climategate warming alarmism has been discredited by family in the future. involves research initially called into doubt Climategate and related scandals. That, we Some you can by our analysis of climate models. The feel, is not too much to ask. scientists involved in the scandal saw us as Being on the receiving end of this even put into place major threats to global warming orthodoxy award, it is an irony that the people who today without and to their own credibility. Consequently, probably deserve this award more than losing any income. we are mentioned more than 150 times in anyone are the ones that are giving it away. the Climategate emails. But we do wish to thank Fred Smith and Want to learn more? In particular, the scientists were Myron Ebell and everyone involved at CEI Contact Al Canata at upset with our criticisms of the infamous for all the work that they do. Thank you [email protected] “hockey stick”—the graph promoted very much. by the Intergovernmental Panel on or (202) 331-1010 Climate Change as proof that global Stephen McIntyre is editor and founder of temperatures had been stable for 900 Climate Audit. Ross McKitrick is a professor th years until increasing rapidly in the 20 of economics at the University of Guelph This publication is intended to provide general century. Our debunking of the hockey in Ontario, Canada. They were jointly gift planning information. Our organization is stick was confirmed in 2006 by a panel of awarded the 2010 Julian Simon Award. not qualified to provide specific legal, tax or investment advice, and this publication should not be looked to or relied upon as a source for such advice. Consult with your own legal and financial advisors before making any gift. WWW.CEI.ORG 3 CEI THECOMPETITIVEENTERPRISEINSTITUTE
ing Economics from sav the Economists
By Ryan Young stop listening. People are right to ignore is way beyond the capacities of any such snake-oil salesmen, but they should individual. It takes thousands of specialists as the financial crisis ruined still listen to economics. coming together from all around the world Heconomics? Not only did economists Consider the value of the basic insights just to make a small, inexpensive everyday fail to predict it, nobody seems to have a of supply and demand. Prices are a item you can buy at any convenience store clue how to right the ship. Unemployment fundamental driver of human behavior. for less than a dollar. Insights like that are went up despite hundreds of billions of Economics teaches us that prices aren’t why I became an economist. dollars of stimulus spending. Tinkering random numbers. They convey information Now apply the pencil lesson to the with interest rates and the money supply about the time, effort, and difficulty in economy at large—computers, tires, books, hasn’t worked, either. The dismal producing a given good or service and clothing, banking, insurance. No wonder science now has a dismal reputation. providing it to consumers. From rush-hour nobody can get a handle on the ebbs But economics itself isn’t to blame. commuting to Black Friday to the theory and flows of the global economy—it is Economists are. of natural selection, the economic way of literally impossible! That is the source of Everyone knows that economists are thinking helps us understand our world as economics’ diminished prestige. Anybody terrible at predicting the future. If the price no other discipline can. with any sense knows how complicated the of pencils goes up, people buy fewer of Let us go back to the humble pencil. world economy is, but the human mind has them. If the price goes down, they buy Pencils are cheap and abundant—but limits. So does economics. more. Economists can predict that much— nobody knows how to make one. It is Too many economists have pretended but they cannot say by how much, which mentally and physically impossible. You away those limits. To go on television and would require a depth of knowledge known would have to chop and cut the wood say “I know how to fix the financial crisis” only to the divine. yourself. If you use an axe, you’d have to is pure hubris. It is also a way to look They would have to know the shape mine, smelt, and process the iron ore in good and feel good in the short run; that is and the slope of hundreds of millions of the blade—and make the tools to do so. precisely why people do it. But events will ever-changing individual demand curves You’d have to find rubber trees to make prove such charlatans wrong soon enough. for pencils at any given moment and the the eraser (hopefully you happen to live It is folly for any economist to say that elasticity of demand for the same. They in a tropical climate), extract and process he understands global business cycles when would need the same information for the rubber yourself, and make all the tools. he can’t even understand the origins of the competing products, like pens. Nobody can Then you would need to mine and mold the pencil poking out of his breast pocket. But predict the future because nobody has that aluminum for the bit that holds the eraser. the insights of the discipline he dishonors kind of information. You would need to make yellow paint and can be as sublime as poetry. Yet many economists pretend the paintbrush you need to apply it. And otherwise. One reason for their doing so you would need to have access to all the Ryan Young ([email protected]) is the is that they revel in seeing themselves on ingredients at every step of the process. Warren Brookes Journalism Fellow at television and in print. They preach to all, Then there is the matter of finding graphite CEI. A version of this article originally “I have the answer!” They are liars. As for the pencil lead... appeared in The American Spectator. with most liars, they get caught, and people You get the point—even the everyday
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24976.1_CEI_Newsltr.indd 4 8/27/10 6:57 PM CEI THECOMPETITIVEENTERPRISEINSTITUTE U.S. Tech Firms’ China Presence Economics from the Economists Furthers Internet Freedom By Ryan Radia and Gregory Conko Such criticism, however principled, n July 9, China renewed Google’s misses the forest for the Olicense to operate in that country, trees. If Google leading critics to condemn the firm for were to exit China, acceding to China’s oppressive policies. that would mean it But the presence of Google and other would essentially American tech firms actually benefits the cede the online people of China and helps advance global search market to Internet freedom. the Chinese company Baidu, The Google-China saga has repeatedly which has a long history of doing the made headlines since January 2010, when Chinese government’s bidding. Google announced that hackers in China Google has publicly criticized the had breached the Gmail accounts of regime’s oppressive practices. Prior Chinese human rights activists. In March, to disabling its Chinese search engine, after much internal debate, Google shut Google warned users when search results down its China-based site, Google.cn, and were being censored. Baidu’s site makes no censorship and are much began redirecting visitors to its site in Hong mention of that fact. harder for the Chinese government to Kong. Last month, the company reactivated Many American businesses operating demonize than the U.S. government. some of its China-based services, though in China do so with trepidation. Google, Yes, China has a horrendous human- it continues to redirect search traffic to for example, hesitated to enter China rights record. But demanding that businesses Google.com.hk. until 2005, partially due to human-rights operate only in nations that respect human Doing business in China has long concerns. But American and other foreign rights is no recipe for spreading freedom. posed a dilemma for Google due to the firms often repudiate Chinese human rights Relegating Chinese citizens to the likes of Chinese government’s notorious disregard violations and sometimes push back when Baidu will only perpetuate human-rights for human rights. Chinese law requires the government has gone too far. violations in China. websites operating within the country Still, U.S. tech firms operating in Disengaging China will not foster to censor a broad range of information, China are often attacked by politicians political freedom, but commerce between such as photos of the 1989 Tiananmen in Congress. Rep. Chris Smith (R-N.J.) the U.S. and China creates wealth and Square massacre. And the infamous “Great recently accused Microsoft of “enabling opportunities in both nations. These Firewall of China” enables the government tyranny” in China, while Sen. Dick opportunities help grow China’s middle to surveil Internet traffic and censor Durbin (D-Ill.) is pushing for federal class, bringing rural subsistence farmers information the government considers regulation of U.S. companies operating in into cities and, thus, closer to the global unfavorable. oppressive nations. economy. A sizable middle class is crucial While Google does not censor its Hong But saber-rattling by U.S. politicians for China to become economically and Kong site, search results are still censored actually emboldens the Chinese politically freer. While U.S. tech firms may by China’s firewall, and Google recently Communist regime, which plays upon not seem to be improving China’s human- stated that its China-based services comply nationalist sentiments to garner popular rights situation today, their presence will with Chinese laws. support and strengthen its hold on undoubtedly help in the long run. Human rights advocates have derided power. It also undermines the autonomy Google and other U.S. tech companies, of private businesses and discourages Ryan Radia ([email protected]) is Associate including Microsoft and Yahoo!, for constructive economic engagement with Director for Technology Studies and doing business in China. These critics, the Chinese people. Gregory Conko ([email protected]) is a such as Amnesty International, argue that In China, American firms like Google Senior Fellow at CEI. A version of this facilitating censorship by complying with are household names. These companies are article originally appeared in The Seattle China’s oppressive laws is immoral and in a far better position to criticize Chinese Times. unethical.
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CEI’s
he Competitive Enterprise Institute held its Annual Gala on TCapitol Hill in Washington D.C. celebrating free markets and Annuallimited government, which face the greatest Galaassault upon them in at least a generation. This year’s keynote speaker exemplified CEI’s commitment to the principles of liberty, as well as its playful approach to public policy advocacy—Chief Judge of the U.S. Court of Appeals for the Ninth Circuit Alex Kozinski. Judge Kozinski is widely respected for his legal analysis— A and is very well known for his wit and sense of humor. In a case involving motion pictures, U.S. v. Syufy Enterprises (1990), Judge Kozinski managed to weave over 200 film titles into the text of his opinion, setting movie buffs around the world into a mad scramble to find the most titles. His speech on antitrust policy at the CEI Gala was very well received. There is something to be said for a jurist who can give an entertaining speech on antitrust policy, which is not normally considered a humorous topic. Judge Kozinski closed performing a song about price fixing to the tune of Frank Sinatra’s “Strangers in the Night.” Stephen McIntyre and Ross McKitrick were jointly awarded the Julian Simon Award (see cover) for their debunking of the infamous “hockey stick” graph and for their ongoing battle against global warming alarmists.
Thomas Donlan, editorial page editor of Barron’s, served as B the master of ceremonies.
PHOTOS A. Judge Alex Kozinski delivers the keynote address at CEI’s 2010 Annual Gala. B. Barron’s Editorial Page Editor Thomas Donlan, Master of Ceremonies at CEI’s 2010 Annual Gala. C. Left to right: CEI Board Member Thomas Gale Moore, American Conservative Union Vice Chairman Donald Devine, and Atlas Economic Research Foundation Vice President of Academics and CEI Board Member Leonard Liggio. C
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G
D. Brian Mannix (left) and Alan Carlin. D E. Left to right: Emmanuelle Richard, American Spectator Washington Correspondent Philip Klein, and Washington Examiner senior political columnist and former CEI Warren Brookes Fellow Timothy Carney. F. Ecos Energy President Edward McCammon and Lisa Markham of Markham Antique Services. H G. CEI President Fred Smith delivers the opening remarks at CEI’s E 2010 Annual Gala. H. C-SPAN Host and Assignment Editor Robb Harleston and CEI Director of Development Julie Taylor. I. Left to right: CEI Adjunct Scholar Robert J. Smith, syndicated talk show host G. Gordon Liddy, and Karen Moreau of the Land Rights Foundation of New York. F I
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2010 Bureaucrash Student Activism Competition and Conference A few months ago, CEI and Bureaucrash created a contest for students, asking them to answer the question, “How can students best spread the message of liberty to the next generation?” The top 10 video or written responders from around the world were subsequently invited to CEI for an all- day conference on July 24. During that conference, the students listened to lectures from CEI policy experts and other activists from around Washington, D.C. The winners were instructed to use the tools they learned to spread the message of liberty back at their schools. After the conference, the students were invited to dinner with Fred Smith, for an opportunity to socialize. Overall, the conference was a tremendous success and the responses from students exceeded our expectations. Photos by Nicole Ciandella.
Captions, from top to bottom:
Bureaucrash Crasher-in-Chief Lee Doren leads a seminar on YouTube activism.
CEI Journalism Fellow Ryan Young discusses the dos and don’ts of communicating the message of liberty.
Students for Liberty Executive Director Alexander McCobin presents his student organizing strategy.
CEI President Fred Smith addresses the conference.
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My name is Patrick McGorrey, and My name is Leland Moss, and I I come from Philadelphia. I study live in Tolland, Connecticut. I go to English/professional writing with school at Roger Williams University Cultural and Media Studies program in Bristol, Rhode Island. I am a at Kutztown University. I hope double major in marine biology and to continue my education in the economics. I hope to go to graduate humanities in graduate school and school in a concurrent masters teach writing at a university while degree program and get a job in publishing. the environmental economics field, specifically coastal, if possible.
My name is Daniel Margolis, and My name is Philip Nelson, and I was born and raised in Houston, I study Psychology at Bangor Texas. I am majoring in math and University in Wales. My hope economics at Tulane University. is to study for a Ph.D. in social/ At 16, I entered Tulane. At 17, I personality psychology in the United attempted to get a Bureaucrash States, and work on psychological campus organization off the ground. issues surrounding freedom and I hope to be a neurosurgeon with a individuality. I am also an Objectivist hobby as an economist. and hope to integrate my academic work with the philosophy of Ayn Rand and subsequent activism.
My name is Martin Huber, and My name is Manas Gautam, and I live near Lake Constance in I’m a junior concentrating in applied Austria. I am studying management mathematics and economics at and economics—mainly Brown University. I am a private management—at Innsbruck equity, value investor, write for the University in Austria. While I’m not Brown Daily Herald, and am the planning on professionally engaging Deputy Editor for The Spectator. I in the promotion of liberty, it also do research for Bretton Woods remains a personal objective. Research (which is a macroeconomic group). I am a fervent supply-side economist.
My name is Rick Thom, and I live My name is Lauren Walker, and I in Mesa, Arizona. I am studying am currently studying the Korean management and economics at the language at Geumgang University W.P. Carey School of Business at in Nonsan, South Korea, in order to Arizona State University. I hope to more effectively continue working one day open a brewery and also with North Korean defectors and maybe open a BBQ restaurant in South Korean activists. Please visit Germany. However, I keep getting my website at www.seouldreamers. involved in politics because I get com for more information and to upset at the loss of my freedoms. take action to help the people of North Korea.
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THE GOOD THE BAD THE UGLY CEI Scores Supreme Court House “Privacy” Bill “Climategate” Victory in PCAOB Ruling Would Undermine Privacy Investigation Yields and Commerce Whitewash Report Nearly five years ago, CEI and accountant Brad In mid-July, Rep. Bobby Rush After emails from the University Beckstead discussed mounting (D-Ill.) introduced the BEST of East Anglia’s Climatic a constitutional challenge to PRACTICES Act, a bill ostensibly Research Unit (CRU) were the Sarbanes-Oxley Act’s aimed at enhancing online leaked last November—in Public Company Accounting privacy by imposing stringent which top climate scientists Oversight Board (PCAOB). The new rules on companies that were shown illegally conspiring PCAOB’s rules were strangling collect and store individual against politically disfavored Beckstead’s two-person firm data. Yet such a command-and- scientists and discussing the in Henderson, Nevada, and control approach is misguided. manipulation of data—the the small public companies he “Natural competitive outcomes resulting firestorm led to the served, with miles of red tape, in the online privacy arena creation of an investigatory the bulk of which provided cannot properly emerge in a commission. Predictably, little value to shareholders. On world in which government the commission was largely June 28, the Supreme Court policies discourage responsible comprised of climate alarmists struck down key provisions of data collection altogether,” and friends of the accused, the PCAOB as unconstitutional. argued CEI Vice President for so the ultimate exoneration of A majority of justices agreed Policy Wayne Crews. “Today, those concerned should not be that the current structure of businesses increasingly compete surprising. On the release of the the PCAOB fails to adhere to deliver technologies that Muir Russell report, CEI Director to constitutional provisions enhance our privacy and of Energy and Global Warming governing the removal of major security. At the same time, Policy Myron Ebell said, “The officers. CEI General Counsel information sharing also enables committee relied almost entirely Sam Kazman said that the ruling firms to sell us the things we on the testimony of those “reestablishes the fact that want. This seeming tension is implicated in the scandal or Congress cannot simply create perfectly natural—privacy is those who have a vested interest agencies wrapped up inside a complex relationship that in defending the establishment other agencies unable to be varies from person to person, view of global warming. The disciplined whatsoever. Instead, not a ‘thing’ for governments to critics of the CRU with the most we now have a new possibility specify for anyone beforehand.” expertise were not interviewed.” of seeing the incredibly Ebell also noted that the expensive and oppressive whitewash is unlikely to succeed accounting requirements in sweeping some of the more imposed by this agency now damning evidence under the rug being subject to challenge in because it “is simply too obvious court by those who’ve been and too strong to cover up.” laboring to comply with them.”
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spending by 2.2 percent (8.6 percent if federal spending is included) from former MediaMENTIONS Governor Jon Corzine’s final budget. The Compiled by Richard Morrison budget is the smallest in New Jersey in five years. Senior Fellow Gregory Conko and infamous BP –July 7, The Daily Caller Adjunct Fellow Dr. Henry I. Miller (a retailer warn us that by falling for exaggerated through its Policy Analyst Alex Nowrasteh debunks safety risks we may be ignoring more ownership of the myth of welfare-seeking immigrants: important concerns, ultimately making gas stations) Rules in place now could be slightly us less safe overall: jumped into the fray using anti-Wall Street modified so Americans reap the benefits For more than 50 years, bisphenol-A rhetoric and were able to lure lawmakers— of expanded immigration without paying (BPA) has been an important additive knowingly or unknowingly—into inserting the costs of increased social services. that helps make the plastics used in a provision that would give them a Immigrants, both legal and illegal, actually everything from soda bottles and plastic windfall at the expense of consumers. underconsume health care and other public storage containers to medical devices An amendment introduced in May benefits relative to native-born Americans and children’s toys tough yet flexible. It by Senator Richard Durbin, a Democrat of similar incomes and skills. is also used in the lining of food cans to from Illinois, requires the Federal Immigrants are generally energetic, prevent spoilage that can lead to bacterial Reserve Board to set “reasonable and entrepreneurial, young and healthy, and contamination and the risk of botulism. proportional” interchange fees for debit not candidates for government support. BPA is one of the most thoroughly cards. Interchange fees are what merchants They come to America to work, not to tested chemicals of all time. And pay to process these cards. The senator collect public benefits. The 1996 welfare regulatory authorities from around the actually invoked the costs to the Deerfield, reform barred legal immigrants from world, including the FDA, have judged Ill.-based Walgreens, one of the biggest receiving most public benefits for their BPA to be safe at the very low levels at drugstore chains in the country, in arguing first five years of residency and denied the which it is used, and to which consumers for his measure. undocumented altogether—yet the inflow are exposed. –July 15, The New York Times “Room of immigrants didn’t stop. Nevertheless, some environmental for Debate” blog –July 7, AOL News activists have long sought a ban on the substance because at very high doses, Labor Policy Counsel F. Vincent Energy Policy Analyst William Yeatman BPA acts like the hormone estrogen and Vernuccio discovers some cause for describes Maryland’s smart grid fiasco: might theoretically lead to brain, breast hope in the debate over bloated public Last month, the Public Service or prostate abnormalities. However, a employee union benefits: Commission rejected Baltimore Gas & basic tenet of toxicology is that the dose According to a report by the Pew Electric Co.’s “smart grid” proposal. makes the poison. This means that mere Research Center, state and local From start to finish, the whole affair exposure to a chemical like BPA does not governments only have on hand $2.35 demonstrated everything that is wrong with imply harm; one needs to know the dose trillion to pay for $3.25 trillion in health Maryland’s socialized electricity industry. and length of exposure, what the substance and retirement benefits promised to current To begin with, BGE’s plan was a dud. does (if anything) in the body, how it is and retired workers. Pew used the latest The whole idea of “smart grid” is to inform disposed of and so forth. Virtually any numbers available, from fiscal year 2008. customers how much electricity costs in substance can be toxic at high enough With the current economic crisis, the gap is real time so that they have an incentive to levels. probably even worse today. use less electricity during times of peak –July 21, The Washington Times Today’s taxpayers could be on the demand (usually hot summer afternoons), hook for the actions of politicians in past when electricity is expensive to generate Center for Investors and Entrepreneurs generations, who, when confronted with and transmit. There are a number of ways Director John Berlau explains how big ever increasing union demands, kicked to achieve this price signal, but BGE chose retails chains made out like bandits the can down the road rather than make an ill-defined, incomplete technology that with the passage of the recent financial hard choices. Choices are simple but would not have allowed consumers to see regulation bill: unpalatable: cut generous benefits to a their energy costs in real time and adjust It’s usually not that easy for big retail key voting block or impose a greater tax their usage accordingly. chains to win battles on Capitol Hill— burden on citizens. Finally, citizens may –July 5, The Baltimore Sun particularly if they are trying to secure get the upper hand. a benefit rather than fending off a tax or Last week, New Jersey took a major regulation. But with “financial reform,” step when Governor Chris Christie Walgreens, Home Depot and even the signed a $29.4 billion budget that slashes
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Senate Candidate Proposes Congress Aids Administration’s G.I. Joe Jobs Plan Spill Shroud of Secrecy Alvin Greene, the Democratic After numerous reports of officials candidate for the United States ...END from the federal government and BP Senate from South Carolina, is an blocking reporters from covering the interesting politician. Unemployed NOTES Gulf oil spill, House Democrats blocked since being discharged by the an amendment to the Carbon Limits and Army in 2009, Greene defeated Energy for America’s Renewal (CLEAR) his primary opponent despite next Act that would specifically permit press to zero campaigning, very little access. The text was as follows: “Except money, no website, and no yard in cases of imminent harm to human life, signs. He has made a name for federal officials shall allow free and open himself thanks to media coverage of access to the media of oil spill cleanup some of his stranger proposals. One activity occurring on public lands or such proposal is to create jobs by public shorelines, including the BP manufacturing Alvin Greene action Deepwater Horizon oil spill.” This seems figures. “So you see I think out of the box like that,” Greene reasonable enough, considering that the government “officially” told the U.K.’s Guardian paper. “It’s not something a typical lifted the 65-foot media ban for “credentialed journalists.” person would bring up. That’s something that could happen, that However, many in the press remain skeptical, particularly after a makes sense. It’s not a joke.” Were Greene to pull an upset in CBS camera crew was threatened with arrest while trying to film November, these may just be out in time for Christmas. on a public beach, and the Department of Homeland Security refused to allow a New Orleans Times-Picayune photographer to Caught Red-Light Handed fly over the slick in a plane. After 83 percent of the Texas House of Representatives voted to ban photo enforcement of traffic laws, many were puzzled “Shared Sacrifice?” Not if You Work for the Governor by the body’s apparent endorsement of red-light cameras. In Illinois is currently facing a $13-billion budget shortfall. early July, it was discovered that state Rep. Linda Harper-Brown Governor Pat Quinn (D) has been touting his planned $1.3 billion (R-Irving) had quietly inserted a single-sentence provision budget cuts as an example of “shared sacrifice.” However, while authorizing the use of the cameras, one that her fellow legislators many are certainly tightening their belts, Quinn has given 35 of his failed to notice before it was too late. It was also revealed that staffers pay raises in the last 15 months. Several of these did not Harper-Brown had accepted significant gratuities from two Texas involve title changes, promotions, or added workloads, but were Department of Transportation contractors, including the use of a coded as “salary adjustments.” Members of Quinn’s own party $55,000 luxury sedan. Harper-Brown’s defense? The automobiles are incensed his hypocrisy. “It’s insulting,” said State Rep. Jack were provided for use by her husband, who has been employed by Franks (D). “It shows how out of touch he is with the real world, one of the leading traffic camera companies in Texas. Lawmakers where businesses are freezing salaries and in some cases laying and watchdog groups, apparently unsatisfied with Harper-Brown’s people off.” Governor Quinn, under bipartisan pressure, has since excuse, filed several ethics complaints against her. promised to revisit the issue.
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