Musk’s Private Starlink Infrastructure “Played a Crucial Role” in Saving Ukraine

(p. A6) KYIV, Ukraine—Elon Musk backtracked on his complaints over the cost of funding Starlink internet terminals in Ukraine and said his company would continue to pay for them, as explosions rocked the Russian-held city of Donetsk in eastern Ukraine on Sunday [Oct. 16, 2022].

Mr. Musk, the billionaire chief executive of SpaceX and Tesla, pledged to continue funding the Starlink service for Ukraine just a day after he said SpaceX couldn’t finance the service indefinitely on its own.

“The hell with it,” Mr. Musk tweeted on Saturday. “Even though Starlink is still losing money & other companies are getting billions of taxpayer $, we’ll just keep funding Ukraine govt for free.”

The 20,000 Starlink terminals estimated to be in operation across Ukraine have played a crucial role in maintaining the country’s communications during the war and are deployed at hundreds of Ukrainian military outposts where they allow commanders to call in artillery strikes or coordinate operations in areas where cell service is jammed by Russia.

For the full story, see:

Matthew Luxmoore. “Musk Says SpaceX to Cover Starlink Costs in Ukraine.” The Wall Street Journal (Monday, Oct. 17, 2022): A6.

(Note: ellipsis, and bracketed date, added.)

(Note: the online version of the story was updated Oct. 16, 2022, and has the title “Elon Musk Says SpaceX Will Continue to Cover Starlink Costs in Ukraine.”)

Environmentalists Ignore “The Unintended Impacts of Policies”

(p. A1) Nicole Kramaritsch of Roxbury, N.J., has 46 bags just sitting in her garage. Brian Otto has 101 of them, so many that he’s considering sewing them into blackout curtains for his baby’s bedroom. (So far, that idea has gone nowhere.) Lili Mannuzza in Whippany has 74.

“I don’t know what to do with all these bags,” she said.

The mountains of bags are an unintended consequence of New Jersey’s strict new bag ban in supermarkets. It went into effect in May and prohibits not only plastic bags but paper bags as well. The well-intentioned law seeks to cut down on waste and single-use plastics, but for many people who rely on grocery delivery and curbside pickup services their orders now come in heavy-duty reusable shopping bags — lots and lots of them, week after week.

While nearly a dozen states nationwide have implemented restrictions on single-use plastic bags, New Jersey is the only one to ban paper bags because of their environmental impact. The law also bans polystyrene foam food containers and cups, and restricts restaurants from handing out plastic straws unless they’re requested.

Emily Gonyou, 22, a gig worker in Roselle Park who provides shopping services for people (p. A11) through Instacart, said she was surprised when she learned the delivery company had no special plans for accommodating the ban. “They pretty much said, ‘OK, do exactly what you’re doing, but with reusable bags,’” she said.

Ms. Gonyou said she goes through up to 50 reusable bags a day, many of which, she suspects, could end up in the garbage.

Compared to single-use plastics, the more durable reusable bags are better for the environment only if they are actually reused. According to Shelie Miller, a professor at the University of Michigan School for Environment and Sustainability, a typical reusable bag, manufactured from polypropylene, must be used at least 10 times to account for the additional energy and material required to make it. For cotton totes, that number is much higher.

. . .

Dr. Miller said the bag situation in New Jersey was emblematic of a lot of environmental policies. “If we don’t pay attention to the unintended impacts of policies such as the plastic waste ban, we run into the potential of playing environmental Whac-a-Mole,” she said. “We solve one environmental problem only to create or exacerbate another problem.”

For the full story, see:

Clare Toeniskoetter. “New Jersey Bag Ban’s Unforeseen Consequence: Too Many Bags.” The New York Times (Friday, September 2, 2022): A1 & A11.

(Note: ellipsis added.)

(Note: the online version of the story has the date Sept. 1, 2022, and has the title “Why Do Some People in New Jersey Suddenly Have Bags and Bags of Bags?”)

California $113 Billion Bullet Train “Is a Case Study” in How Boondoggle Infrastructure Grows “Too Big to Fail”

(p. A1) LOS ANGELES — Building the nation’s first bullet train, which would connect Los Angeles and San Francisco, was always going to be a formidable technical challenge, pushing through the steep mountains and treacherous seismic faults of Southern California with a series of long tunnels and towering viaducts.

But the design for the nation’s most ambitious infrastructure project was never based on the easiest or most direct route. Instead, the train’s path out of Los Angeles was diverted across a second mountain range to the rapidly growing suburbs of the Mojave Desert — a route whose most salient advantage appeared to be that it ran through the district of a powerful Los Angeles county supervisor.

The dogleg through the desert was only one of several times over the years when the project fell victim to political forces that have added billions of dollars in costs and called into question whether the project can ever be finished.

Now, as the nation embarks on a historic, $1 trillion infrastructure building spree, the tortured effort to build the country’s first high-speed rail system is a case study in how ambitious public works projects can become perilously encumbered by political compromise, unrealistic cost estimates, flawed engineering and a determination to persist on projects that have become, like the crippled financial institutions of 2008, too big to fail.

. . .

Political compromises, the records show, produced difficult and costly routes through the state’s farm belt. They routed the train across a geologically complex mountain pass in the Bay Area. And they dictated that construction would begin in the center of the state, in the agricultural heartland, not at either of the urban ends where tens of millions of potential riders live.

The pros and cons of these routing choices have been debated for years. Only now, though, is it be-(p. A15)coming apparent how costly the political choices have been. Collectively, they turned a project that might have been built more quickly and cheaply into a behemoth so expensive that, without a major new source of funding, there is little chance it can ever reach its original goal of connecting California’s two biggest metropolitan areas in two hours and 40 minutes.

When California voters first approved a bond issue for the project in 2008, the rail line was to be completed by 2020, and its cost seemed astronomical at the time — $33 billion — but it was still considered worthwhile as an alternative to the state’s endless web of freeways and the carbon emissions generated in one of the nation’s busiest air corridors.

Fourteen years later, construction is now underway on part of a 171-mile “starter” line connecting a few cities in the middle of California, which has been promised for 2030. But few expect it to make that goal.

Meanwhile, costs have continued to escalate. When the California High-Speed Rail Authority issued its new 2022 draft business plan in February, it estimated an ultimate cost as high as $105 billion. Less than three months later, the “final plan” raised the estimate to $113 billion.

The rail authority said it has accelerated the pace of construction on the starter system, but at the current spending rate of $1.8 million a day, according to projections widely used by engineers and project managers, the train could not be completed in this century.

For the full story, see:

Ralph Vartabedian. “Costs Soaring As Bullet Train Goes Nowhere.” The New York Times (Monday, October 10, 2022): A1 & A15.

(Note: ellipsis added.)

(Note: the online version of the story has the date Oct. 9, 2022, and has the title “How California’s Bullet Train Went Off the Rails.”)

Non-Partisan Congressional Budget Office Estimates Cost of Biden Student Loan Forgiveness at $400 Billion

(p. A1) WASHINGTON — President Biden’s plan to erase significant amounts of student loan debt for tens of millions of Americans could cost about $400 billion, the nonpartisan Congressional Budget Office said in a report Monday [Sept. 26, 2022], making it one of the costliest programs in the president’s agenda.

The C.B.O. said the price tag might rise even higher because of Mr. Biden’s decision to extend a pause on federal student loan repayments through the end of the year, which could end up costing some $20 billion. The report gauged the cost over a period of 30 years, though the bulk of the effects to the economy would be felt over the next decade.

. . .

. . . , critics have accused the Biden administration of hiding the plan’s true cost.

Marc Goldwein, the senior vice president for the Committee for a Responsible Federal Budget, said that the C.B.O. score did not take into account a significant part of (p. A13) the administration’s loan relief program: a plan to reduce payments for future borrowers who go on to earn low incomes after college, which outside analysts say could host hundreds of billions of dollars more.

“You’re basically buying a very expensive lottery ticket,” Mr. Goldwein said. “When you’re taking out the loan, you’re going to have no idea of how much you’re going to be paying back.”
Monday’s report, issued by a nonpolitical budget scorekeeper, is one of several attempts to estimate the total cost of the program, which Mr. Biden enacted using executive action rather than legislation.

For the full story, see:

Katie Rogers and Jim Tankersley. “Cost of Erasing Students’ Debt Will Be Steep.” The New York Times (Tuesday, September 27, 2022): A1 & A13.

(Note: ellipses, and bracketed date, added.)

(Note: the online version of the story has the date Sept. 26, 2022, and has the title ‘White House Student Loan Forgiveness Could Cost About $400 Billion.”)

Higher Minimum Wages Can Result in “Reduced Hours Worked”

(p. A17) Researchers who support raising the minimum wage often advocate a “close comparison”—using an area geographically nearby. The classic in this genre is the 1994 study of the fast-food industry by David Card and Alan Krueger. The minimum wage had been raised in New Jersey from $4.25 to $5.05, but had stayed flat in Pennsylvania. The two economists surveyed fast-food restaurants on either side of the state border and actually found sharp job gains in New Jersey.

I’m on record, in a 2000 paper, as arguing that the Card-Krueger study was based on flawed data. But other researchers using the “close comparison” method, such as Michael Reich at Berkeley, also have generally found that a higher minimum wage does not cause job losses. Those studies have fed into rosy policy reports saying that a $15 minimum wage would help workers with little downside.

Critics say these studies do not convincingly control for shocks to the low-skill labor market. Moreover, comparing across state borders is inherently difficult. Perhaps politicians in one state felt comfortable raising the minimum wage because the labor market there was already strong, while the other state was struggling. In that case, job losses from the higher minimum wage could be masked by the broader trend.

. . .

The dispute over methodology explains the importance of this summer’s research on Seattle’s minimum-wage experiment. The city’s wage floor, previously about $9.50 an hour, has been raised to $13 and is on its way to $15. A comprehensive study by academics at the University of Washington estimated that the higher minimum “reduced hours worked in low-wage jobs by around 9 percent.” Consequently, earnings for these employees actually dropped “by an average of $125 per month.”

What’s especially inconvenient for minimum-wage proponents is that the Seattle study used a “close comparison” method similar to the one they have favored for years. The authors of the study compared workers in Seattle with those in other metropolitan areas in Washington, like Olympia, Tacoma and Spokane.

For the full commentary, see:

David Neumark. “The $15 Minimum Wage Crowd Tries a Bait and Switch.” The Wall Street Journal (Thursday, Sept. 26, 2017): A17.

(Note: ellipsis added.)

(Note: the online version of the commentary has the date Sept. 25, 2017, and has the same title as the print version.)

Newmark’s comment on the Card and Krueger paper, mentioned above, is:

Neumark, David, and William L. Wascher. “Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Comment.” American Economic Review 90, no. 5 (Dec. 2000): 1362-96.

American Economic Association Mandating KN-95 Mask-Wearing at January 2023 Conference

(p. A15) I was looking forward to the American Economic Association’s January [2023] conference in New Orleans after two years of virtual meetings. Then I got this notice from the AEA: “All registrants will be required to be vaccinated against COVID-19 and to have received at least one booster. High-quality masks (i.e., KN-95 or better) will be required in all indoor conference spaces. These requirements are planned for the well-being of all participants.”

Seriously? This isn’t 2020—it’s 2023. Everyone else has been getting back to normal, and being exposed to viruses is part of life.

. . .

China still has mandates in place. Maybe the AEA should hold its annual meeting in Beijing. Perhaps organizers will feel more comfortable among central planners.

. . .

I share the sentiments of George Mason University’s Tyler Cowen who said on his blog: “How about allowing a members’ vote on this? Or should I just be happy that the AEA is making itself irrelevant at such a rapid pace? It is remarkable the speed at which the economics profession isn’t really about economics anymore.”

For the full commentary, see:

Mark Skousen. “Who Was That Masked Economist?” The Wall Street Journal (Thursday, Sept. 8, 2022): A15.

(Note: ellipses added.)

(Note: the online version of the commentary has the date September 7, 2022, and has the same title as the print version.)

Steve Case Sees “Local Knowledge” as a Plus for Entrepreneurs Outside of Silicon Valley

(p. A15) Steve Case, a co-founder of AOL, was one of the early internet pioneers. But he is not a creature of Silicon Valley. AOL, he points out in “The Rise of the Rest: How Entrepreneurs in Surprising Places Are Building the New American Dream,” was based in the Washington, D.C., area, and many of the early tech firms, like Dell, were not started in Silicon Valley. Hence his conviction that successful entrepreneurship can happen anywhere.

. . .

Mr. Case reckons that we are entering a new phase of tech innovation. Success now requires not only software ingenuity but also industry expertise. If true, we could be due for a wave of local entrepreneurs because these are the people who are aware of the problems their communities face. Now that tech workers can work anywhere, local knowledge and expertise will be at a premium.

. . .

. . . [A] firm that Mr. Case discusses is Catalyte, a software company based in Baltimore. Founder Michael Rosenbaum was convinced that “potential talent was being overlooked by a system that valued pedigree over innate ability” and devised a hiring approach that would ignore traditional résumé points and instead match employees “according to their abilities and potential, which would be determined through carefully calibrated metrics and AI design.” To that end, Mr. Rosenbaum decided to launch his startup in Baltimore, “a postindustrial city . . . with a large, dislocated population of workers who were not connected to the future job opportunities.” His methods paid off, resulting in a diverse workforce and one that produced “off the charts” performance results.

According to Mr. Case, spurring regional entrepreneurship requires leaning on universities and building more “innovation districts.” But these zones, which contain startups, business incubators and investment funds that support one another, have a mixed record. He sees government involvement as crucial but doesn’t contend with its past failures . . .

For the full review, see:

Allison Schrager. “BOOKSHELF; Startups Across America.” The Wall Street Journal (Monday, Sept. 12, 2022): A15.

(Note: ellipses between paragraphs, and at the start or end of a paragraph, added; ellipsis within paragraph, in original. Bracketed word also added.)

(Note: the online version of the review has the date September 11, 2022, and has the title “BOOKSHELF; ‘The Rise of the Rest’ Review: Startups Across America.”)

The book under review is:

Case, Steve. The Rise of the Rest: How Entrepreneurs in Surprising Places Are Building the New American Dream. New York: Avid Reader Press, 2022.

To Avoid “Misconduct” Starbucks Asks “That All Future Elections Be Conducted Fully in Person”

(p. B5) As the union drive at Starbucks stores accelerates, Starbucks has ratcheted up its efforts to push back on the campaign, asking on Monday [Sept. 15, 2022] that the National Labor Relations Board investigate allegations of misconduct during a union vote in the Kansas City area.

Starbucks, in a letter to the labor board, asked that the agency investigate reports by an N.L.R.B. employee that there was unfair coordination between the agency and the union, specifically that several employees were given special voting arrangements and that the N.L.R.B. provided confidential real-time election results to the union. The company asked that the agency suspend all elections until the allegations could be investigated. In addition, Starbucks asked that all future elections be conducted fully in person.

For the full story, see:

Emma Goldberg. “Citing Misconduct Claims, Starbucks Asks to Halt Union Elections.” The New York Times (Tuesday, August 16, 2022): B5.

(Note: bracketed date added.)

(Note: the online version has the date Aug. 15, 2022, and has the title “Starbucks Asks for a Suspension of Union Elections.”)

After Defending Nuclear Power, Green German Energy Minister Is Popular in Polls

(p. A8) BERLIN — Germany will keep two of its three remaining nuclear power plants operational as an emergency reserve for its electricity supply, its energy minister announced on Monday [Sept. 5, 2022], delaying the country’s plans to become the first industrial power to go nuclear-free for its energy.

. . .

. . . the decision to extend the life of it nuclear reactors is one of the most symbolic, if not consequential, the government has taken, breaking a political taboo as it tries to show that it is doing all it can to alleviate the crisis. The government said it made the decision based on a series of stress tests playing out worst-case energy scenarios.

. . .

. . . even as he has led his party into sacrificing nearly all of its sacred cows, Mr. Habeck has become one of the most popular politicians in Germany. In polls, he now regularly receives higher ratings than the chancellor.

“We are doing everything that is necessary,” said Mr. Habeck said.

For the full story, see:

Erika Solomon and Melissa Eddy. “As Energy Crisis Worsens, Germany Extends Life of Two Nuclear Reactors.” The New York Times (Tuesday, September 6, 2022): A8.

(Note: ellipses, and bracketed date, added.)

(Note: the online version has the date Sept. 5, 2022, and has the title “Breaking Taboo, Germany Extends Life of 2 Nuclear Reactors.” The online version of the article says that the print version of the article had the title “Germany Extends Life of Two Reactors” but my national print edition of the NYT had the longer title “As Energy Crisis Worsens, Germany Extends Life of Two Nuclear Reactors.”)

“The Car Emancipated the Masses”

(p. 11) Ear-shredding noise, toxic air, interminable traffic jams, chaos and death — all the result of untrammeled population expansion. Is this a description of a contemporary urban nightmare? Not quite: We’re talking about 19th-century London, although the situation in Paris and other major cities wasn’t much better. And the cause of all this misery was … the horse.

As recounted by Bryan Appleyard in his compelling new book, “The Car,” by 1900 the 50,000 horses required to meet London’s transportation needs deposited 500 tons of excrement daily. Hooves and carriage wheels threw up curtains of fetid muck. Accidents caused by mechanical failures and spooked animals were often fatal to passengers, drivers and the horses themselves. New York City employed 130,000 horses and predictions were made that by 1930 that city’s streets would be piled three stories high with dung. Yet another dire prophecy fallen victim to the continuity fallacy — the belief that a current trend will endure forever.

Things change because when problems arise, people work at solving them, and sometimes they arrive at solutions. The answer to the psychosocial and physical degradation brought on by too many people employing too many horses in the burgeoning Industrial Age was, of course, the development of the motor vehicle. Specifically, one powered by the internal combustion engine.

. . .

For all the carping and finger-pointing leveled at traditional automobiles — much of which Appleyard acknowledges as valid — he is unabashed about his appreciation for the most important machine in human history. As he points out, “The car emancipated the masses far more effectively than any political ideology; that it did so at a cost should not obliterate the importance of that freedom.”

Well said. Vroom.

For the full review, see:

Jonathan Kellerman. “Auto Erotica.” The New York Times Book Review (Sunday, September 25, 2022): 11.

(Note: ellipsis added.)

(Note: the online version of the review was updated Sept. 23, 2022, and has the title “How the Car Created the Modern World.”)

The book under review is:

Appleyard, Bryan. The Car: The Rise and Fall of the Machine That Made the Modern World. New York: Pegasus Books, 2022.