Category: Government

Ethanol Adds Carbon Dioxide to Atmosphere

(p. A9) Before long, it may be politically safe to take a wise step and eliminate the Renewable Fuel Standard (RFS).
. . .
Today, ethanol’s downsides have become clear.
First, it increases the cost of driving. Current ethanol blends provide fewer miles per gallon, so drivers pay more to travel the same distance. According to the Institute for Energy Research, American drivers have paid an additional $83 billion since 2007 because of the RFS.
Second, ethanol adds more carbon dioxide to the atmosphere than it eliminates by replacing fossil fuels. The Environmental Working Group says that “corn ethanol is an environmental disaster.” The group explains: “The mandate to blend ethanol into gasoline has driven farmers to plow up land to plant corn–40 percent of the corn now grown in the U.S. is used to make ethanol. When farmers plow up grasslands and wetlands to grow corn, they release the carbon stored in the soil, contributing to climate-warming carbon emissions.” And then there is the carbon emitted in harvesting, transporting and processing the corn into ethanol.

For the full commentary, see:
MERRILL MATTHEWS. “The Corn-Fed Albatross Called Ethanol.” The Wall Street Journal (Weds., Jan. 6, 2016): A9.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date Jan. 5, 2016.)

Greek Corruption, Fraud, Evasion and Public Worker Job Security

(p. A11) Mr. Angelos, a former Journal correspondent, travels through Greece as a journalist first, and a native son second, to conduct a mostly unpleasant archaeology. By way of background, however, he first tackles the pervasive issues of disability and pension fraud, rampant tax evasion, and public worker job protections. These are the very problems that Greece’s European lenders sought to remedy through a series of supposedly helpful but also punitive and ineptly administered reforms. Mr. Angelos dismantles the facile narrative accepted by many in the eurozone, in which hardworking Germans must clean up a mess made by their lazy and “Oriental” southern neighbors. But he is equally tenacious when it comes to exposing the misconduct of Greek politicians, not to mention the country’s corrupt system of career tenure and its, well, truly Byzantine bureaucracy.
Mr. Angelos’s book allows us to see how these problems play out, sometimes farcically, in the lives of actual people. There’s a cranky grandmother on the island of Zakynthos who receives generous blindness benefits even though she can see perfectly well. There’s the arrogant former prime minister who accepted millions of euros in bribes to buy useless submarines on behalf of the Greek government.
. . .
. . . the book’s single most flattering portrait is of Yiannis Boutaris, the tattooed, wine-making, freethinking mayor of Thessaloniki, who courts Turkish tourism, refuses to kowtow to the church and publicly acknowledges the crucial role of Jews in the city’s history.

For the full review, see:

CHRISTOPHER BAKKEN. “BOOKSHELF; How Greece Got to ‘No’; On the island of Zakynthos, a grandmother receives generous blindness benefits–even though she can see perfectly well.”The Wall Street Journal (Tues., July 7, 2015): A11.
(Note: ellipses added.)
(Note: the online version of the review has the date July 6, 2015.)

The book under review, is:
Angelos, James. The Full Catastrophe: Travels among the New Greek Ruins. New York: Crown Publishers, 2015.

Ugly, Invasive, Depressing Federal LEDs Disrupt Sleep and Increase Risk of Breast Cancer

(p. B1) In my repellently contented middle age, I don’t seek blue light. Like most sane people, I spurn restaurants whose lighting glares. I recoil from mirrors under fluorescent tubes. I switch on an overhead only to track down a water bug while wielding a flip-flop. Yet each evening from March onward, in the Brooklyn neighborhood where I live part of the year, it seems as if the overhead is always on.
Along with other parts of South Brooklyn, Windsor Terrace is an early recipient of the Department of Transportation’s new light-emitting diode streetlights. New Yorkers who have not yet been introduced to these lights: We are living in your future.
Our new street “lamps” — too cozy a word for the icy arrays now screaming through our windows — are meant to be installed across all five boroughs by 2017. Indeed, any resident of an American municipality that has money problems (and what city doesn’t?) should take heed.
In interviews with the media, my fellow experimental subjects have compared the nighttime environment under the new streetlights to a film set, a prison yard, “a strip mall in outer space” and “the mother ship coming in for a landing” in “Close Encounters of the Third Kind.” Although going half-blind at 58, I can read by the beam that the new lamp blasts into our front room without tapping our own Con Ed service. Once the LEDs went in, our next-door neighbor began walking her dog at night in sunglasses.
Medical research has firmly established that blue-spectrum LED light can disrupt sleep patterns. This is the same illumination that radiates in far smaller doses from smartphone and computer screens, to which we’re advised to avoid exposure for at least an hour before bed, because it can suppress the production of melatonin. . . .
While the same light has also been associated with increased risk of breast cancer and mood disorders, in all honesty my biggest beef with LEDs has nothing to do with health issues. These lights are ugly. They’re invasive. They’re depressing. New York deserves better.
. . .
Even fiscally and environmentally conscientious California has compromised on this point. Berkeley, Oakland and San Francisco have all opted for yellow-rich LEDs. These cities have willingly made the modest 10-15 percent sacrifice in efficiency for an ambience that more closely embodies what Germans call Gemütlichkeit and Danes call hygge: an atmosphere of hospitality, homeyness, intimacy and well-being.
. . .
As currently conceived, the D.O.T.’s streetlight plan amounts to mass civic vandalism. If my focus on aesthetics makes this issue sound trivial, the sensory experience of daily life is not a frivolous matter. Even in junior high school, I understood that lighting isn’t only about what you see, but how you feel.

For the full commentary, see:
LIONEL SHRIVER. “Ruining That Moody Urban Glow.” The New York Times, SundayReview Section (Sun., OCT. 18, 2015): 5.
(Note: ellipses added.)
(Note: the online version of the commentary has the date OCT. 17, 2015.)

Regulatory Costs Slow Development of Lifesaving Antibiotics

(p. A13) In the 1980s, 29 new antibiotics were approved; another 23 were approved during the 1990s. But only nine new drugs made it to market from 2000-10, and a study by the Pew Charitable Trusts shows few drugs in development for the most serious microbial threats such as multidrug resistant Acinetobacter and Pseudomonas aeruginosa.
. . .
To revitalize the search for lifesaving antibiotics, the Food and Drug Administration needs a new way to approve them. Legislation proposed in both the House and the Senate would create a new regulatory pathway that would enable the FDA to approve drugs specifically for patients whose serious infections can’t be treated with existing drugs, and for whom there are few or no other treatment options.
For these patients, the FDA would be empowered to approve new drugs based on fewer or smaller clinical studies than for antibiotics intended for broader use. The goal is to reduce the cost of development and accelerate the availability of new drugs for a targeted public health need.

For the full commentary, see:
JONATHAN LEFF And ALLAN COUKELL. “How to End the Regulatory Slowdown for New Antibiotics; With the threat from lethal drug-resistant bacteria growing, the FDA needs to speed up its approval process.” The Wall Street Journal (Fri., July 3, 2015): A13.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date July 2, 2015.)

Americans Should Not Be Required to Join a Private Organization Against Their Will

(p. A15) I am one of 10 California teachers suing to end compulsory union dues in Friedrichs v. California Teachers Association, which will be heard by the Supreme Court Jan. 11. Our request is simple: Strike down laws in 23 states that require workers who decline to join a union to pay fees anyway. In our view, paying fees to a union should not be a prerequisite for teaching in a public school. No one in the U.S. should be forced to give money to a private organization he or she disagrees with fundamentally. Teachers deserve a choice.
. . .
I was a member of the union for years and even served as a union representative. But the union never played an important role in my school. When most teachers sought guidance, they wanted help in the classroom and on how to excel at teaching. The union never offered this pedagogic aid.
Instead, the union focused on politics. I remember a phone call I received before a major election from someone in the union. It was a “survey,” asking teachers whether they would vote for so-and-so if the election were held tomorrow. I disagreed with every issue and candidate the union was promoting. After that conversation, I thought about what the union represents. Eventually, I realized that my dues–about $1,000 a year–went toward ideas and issues that ran counter to my beliefs.
. . .
A Gallup poll last year found that 82% of the public agrees that “no American should be required to join any private organization, like a labor union, against his will.” That’s all we’re asking.

For the full commentary, see:
HARLAN ELRICH. “Why I’m Fighting My Teachers Union; I don’t want to be forced to pay for a political agenda I don’t support. Now the Supreme Court will rule.” The Wall Street Journal (Mon., Jan. 4, 2016): A15.
(Note: ellipses added, italics in original.)
(Note: the online version of the commentary has the date Jan. 3, 2016.)

More Evidence for Stigler’s Capture Theory

(p. A15) WASHINGTON — Marilyn B. Tavenner, the former Obama administration official in charge of the rollout of HealthCare.gov, was chosen on Wednesday to be the top lobbyist for the nation’s health insurance industry.
Ms. Tavenner, who stepped down from her federal job in February, will become president and chief executive of America’s Health Insurance Plans, the trade group whose members include Aetna, Anthem, Humana, Kaiser Permanente and many Blue Cross and Blue Shield companies.
As the new voice for insurers, Ms. Tavenner will lead the industry in a time of tumultuous changes and challenges, including delicate negotiations with Congress over the future of the Affordable Care Act.
. . .
The board of America’s Health Insurance Plans unanimously elected Ms. Tavenner at a meeting here on Wednesday, according to Mark B. Ganz, the board chairman, who is also the chief executive of Cambia Health Solutions, based in Portland, Ore.
. . .
Mr. Ganz said that Ms. Tavenner had “the trust and respect of members of Congress from both sides of the aisle.”
Senator John Barrasso, Republican of Wyoming, described the selection in more negative terms. “While millions of Americans are still being hurt by Obamacare’s soaring costs and fewer choices,” he said, “Ms. Tavenner’s appointment shows how the law has created a cozy and profitable relationship for some.”

For the full story, see:
ROBERT PEAR. “Head of Obama’s Health Care Rollout to Lobby for Insurers.” The New York Times (Thurs., JULY 16, 2015): A15.
(Note: ellipses added.)
(Note: the online version of the story has the date JULY 15, 2015.)

Feds’ Dietary Policy Is “an Obstacle to Sensible Change”

(p. A25) BOSTON — SINCE the publication of the federal government’s 1980 Dietary Guidelines, dietary policy has focused on reducing total fat in the American diet — specifically, to no more than 30 percent of a person’s daily calories. This fear of fat has had far-reaching impacts, from consumer preferences to the billions of dollars spent by the military, government-run hospitals and school districts on food. As we argue in a recently published article in The Journal of the American Medical Association, 35 years after that policy shift, it’s long past time for us to exonerate dietary fat.
. . .
Recent research has established the futility of focusing on low-fat foods. Confirming many other observations, large randomized trials in 2006 and 2013 showed that a low-fat diet had no significant benefits for heart disease, stroke, diabetes or cancer risks, while a high-fat, Mediterranean-style diet rich in nuts or extra-virgin olive oil — exceeding 40 percent of calories in total fat — significantly reduced cardiovascular disease, diabetes and long-term weight gain. Other studies have shown that high-fat diets are similar to, or better than, low-fat diets for short-term weight loss, and that types of foods, rather than fat content, relate to long-term weight gain.
. . .
The limit on total fat is an outdated concept, an obstacle to sensible change that promotes harmful low-fat foods, undermines efforts to limit refined grains and added sugars, and discourages the food industry from developing products higher in healthy fats.

For the full commentary, see:
DARIUSH MOZAFFARIAN and DAVID S. LUDWIG. “Stop Fearing Fat.” The New York Times (Thurs., JULY 9, 2015): A25.
(Note: ellipses added.)
(Note: the online version of the commentary has the title “Why Is the Federal Government Afraid of Fat?”)

Proletariat Loses Money Investing in Ponzi Scheme Supported by Chinese Communists

(p. B1) HONG KONG — At every turn in his improbably rapid rise, Ding Ning, 34, went to great efforts to convey the image of strong government backing for his Internet financing business.
There was his company’s lavish annual meeting and banquet last year in Beijing’s Great Hall of the People, where China’s legislature meets and where top government leaders host official functions. Adding a splash of celebrity to the event were Zhou Tao, a nationally famous actress and host on the government’s main television broadcaster, and several mid-ranking officials, bureaucrats and lawmakers.
There were the positive profiles in state-controlled media, as well as the company’s advertising on official TV. There was the section of his company’s website devoted to building Communist Party spirit.
But it all came crashing down in dramatic fashion for Mr. Ding this week, when the police alleged that his financing business, Ezubao, was a $7.6 billion Ponzi scheme and announced 21 arrests, including of Mr. Ding. The company was shut down.
, , ,
(p. B7) In interviews, former staff and investors described the signals of strong state support as one of the keys to Ezubao’s rapid rise.
“Many people joined Ezubao because they saw the support from the government and from some government officials,” said Feng Zhe, 36, a Beijing resident who worked as a salesman at the company from June of last year until December.
Mr. Feng said a number of his friends and family members invested in Ezubao’s products and suffered losses. “Many people bought their products because the government has lent the company credibility,” he added.

For the full story, see:
NEIL GOUGH. “Feeling Twice Victimized.” The New York Times (Sat., Feb. 6, 2016): B1 & B7.
(Note: ellipsis added.)
(Note: the online version of the article has the date Feb. 5, 2016, and has the title “Ponzi Scheme in China Gained Credibility From State Media.”)

“Recyclers Around the Country Face Losses”

(p. B1) . . . recycling is a commodities business. The paper, metal, plastic and glass that recyclers collect, sort and sell competes against so-called virgin materials. And right now, many commodities are cheap.
Abundant oil is the latest headache for recyclers. New plastics are made from the byproducts of oil and gas production. So as plentiful fossil fuels saturate global markets, it has become cheaper for the makers of water bottles, yogurt containers and takeout boxes to simply buy new plastics. This, in turn, is dragging down the price of recycled materials, straining every part of the recycling industry.
In Montgomery, Ala., Infinitus Energy opened a $35 million recycling center in 2014. By last October, it was hemorrhaging (p. B5) money and shut down. Montgomery’s recyclables are now going to a landfill, and a once booming local business, United Plastic Recycling, filed for bankruptcy last year.
. . .
. . . as recyclers around the country face losses, they are passing their costs along to cities and counties. Increasingly, local governments are receiving nothing at all for their recyclables, or even having to pay companies to accept them.
Last year, the city government in Washington, D.C., paid Waste Management $1.37 million to accept the recyclables it collected from residents.

For the full story, see:
DAVID GELLES. “Losing a Profit Motive: A Skid in Oil Prices Pulls the Recycling Industry Down With It.” The New York Times (Sat., FEB. 13, 2016): B1 & B5.
(Note: ellipses added.)
(Note: the online version of the story has the date FEB. 12, 2016, and has the title “Skid in Oil Prices Pulls the Recycling Industry Down With It.”)

In India’s Public Education System, Teachers Are Often Truant

Matt Ridley has a chapter in his recent The Evolution of Everything, where he cites evidence the low quality of public education in much of the less-developed world. The quality is so low that many poor parents scrimp to pull together modest funds to send their children to modest private schools where the teachers actually show up.

(p. A1) DEORIA, India — The young man, having skipped school, was there to plead his case, but Manoj Mishra was having none of it. When the truant offered a letter from a relative of a government minister pleading for leniency, Mr. Mishra grabbed it and, with a frown, tore it in half and dropped it to the floor.

Similar scenes played out repeatedly in Mr. Mishra’s fluorescent-lit office recently, as one truant after another appeared before him, trying to explain an absence from school.
But these were not students who had been pulled in for truancy. They were teachers.
Mr. Mishra, a district education officer in India’s most populous state, Uttar Pradesh, is fighting one of the biggest obstacles to improving the largest primary school system in the world: absent teachers. His tough punishments and refusal to back down, chronicled in the local newspapers, have turned him into a folk hero. As he walks along the dusty streets of the wheat-farming villages a couple of hours’ drive from Nepal, older people touch his feet in a sign of respect. Young women pull out their phones and take selfies by his side.
When Mr. Mishra arrived in Deoria in 2014, 40 percent of the district’s teachers were absent on any given day from its 2,700 schools, he said in a recent interview. Nationwide, nearly 24 percent of rural Indian teachers were absent during random visits for a recent study led by Kar-(p. A6)thik Muralidharan at the University of California, San Diego. Teacher absences run as high as 46 percent in some states.
. . .
With the largest population in the world under the age of 35, India is trying to grow by leveraging what is often called the “demographic dividend.” To prepare more than 200 million primary school children for jobs in a modern work force, India passed legislation a decade ago that more than doubled education spending, increased teacher salaries and reduced class sizes.
But children’s already low performance has fallen. Pratham Education Foundation, a nonprofit that conducts an annual household survey, reported that in 2005 about 60 percent of fifth graders in rural India — where most people live — could read at a minimum second-grade level, but that in 2014 less than 50 percent could.
Teacher truancy is among the more prominent causes of that failure, experts say. Teaching jobs pay well and are sometimes obtained through political connections. But those who get them often do not want to travel to the remote areas where many schools are. In areas with weak local governance, not showing up has become the norm, and people feel powerless to complain.

For the full story, see:
GEETA ANAND. “Saturday Profile; Truant India Teachers, Meet Your Nightmare.” The New York Times (Sat., FEB. 20, 2016): A1 & A6.
(Note: ellipsis added.)
(Note: the online version of the story has the date FEB. 19, 2016, and has the title “The Saturday Profile; Fighting Truancy Among India’s Teachers, With a Pistol and a Stick.”)

The Ridley book mentioned above, is:
Ridley, Matt. The Evolution of Everything: How New Ideas Emerge. New York: Harper, 2015.

Bernanke’s “Astonishing” Admission that He Tried, and Failed, to Save Lehman

(p. B1) It is astonishing to hear a former Federal Reserve chairman acknowledge that he may have misled the public as part of an agreement with another senior government official about one of the most crucial moments in recent financial history — and that he now questions whether he should have “been more forthcoming.” But that is what Ben S. Bernanke says in his new memoir, “The Courage to Act: A Memoir of a Crisis and Its Aftermath.”
That crucial moment? The bankruptcy of Lehman Brothers. Mr. Bernanke, in perhaps the most candid explanation of Lehman’s 2008 collapse, writes that he and Henry M. Paulson, then the treasury secretary, purposely obfuscated when asked about Lehman’s demise early on, allowing a narrative to develop that the government had purposely let the firm fail.
“In congressional testimony immediately after Lehman’s collapse, Paulson and I were deliberately quite vague when discussing whether we could have saved Lehman,” Mr. Bernanke writes. “But we had agreed in advance to be vague because we were intensely concerned that acknowledging our inability to save Lehman would hurt market confidence and increase pressure on other vulnerable firms.”
. . .
(p. B4) He writes that it was simply impossible to save Lehman, pointing to the nearly $200 billion of losses that Lehman’s creditors have since suffered. No one has come forward on the record, nor has any contemporaneous document been produced in the past seven years that said the government had found a way to save the company and specifically chose not to do so for political reasons, a point Mr. Bernanke alludes to in his book. “I do not want the notion that Lehman’s failure could have been avoided, and that its failure was consequently a policy choice, to become the received wisdom, for the simple reason that it is not true,” he writes. “We did everything we could think of to avoid it.”

For the full commentary, see:
Sorkin, Andrew Ross. “In Bernanke’s Memoir, a Candid Look at Lehman.” The New York Times (Tues., OCT. 6, 2015): B1 & B4.
(Note: ellipsis added.)
(Note: the online version of the commentary has the date OCT. 5, 2015, and has the title “In Ben Bernanke’s Memoir, a Candid Look at Lehman Brothers’ Collapse.”)

The Bernanke memoir is:
Bernanke, Ben S. The Courage to Act: A Memoir of a Crisis and Its Aftermath. New York: W. W. Norton & Co., 2015.