Category: Public Choice

Communist Dictators Tremble When Their Subjects Lose Their Fear

(p. 13) It all began with a beauty pageant. There were multiple outfit changes, from evening gowns to bathing suits to national costumes. There were behind-the-scenes looks at the contestants’ lives. There were question-and-answer periods. And by the end of the 2023 Miss Universe competition last month, Sheynnis Palacios of Nicaragua emerged victorious.

People celebrated in Nicaragua’s streets, singing the national anthem and waving the country’s blue and white flag. It was the first time a contestant from the Central American nation of nearly seven million people had claimed the Miss Universe crown.

“It was as if someone had won the World Cup,” said Gioconda Belli, a well-known Nicaraguan poet and novelist.

Then came the government crackdown.

In what has felt like a script from a television drama, the authoritarian government claimed that the director of the Miss Nicaragua contest, which had chosen Ms. Palacios to represent the country at the global competition, was part of an “anti-patriotic conspiracy” to overthrow President Daniel Ortega and his wife, Vice President Rosario Murillo.

. . .

“Ortega has a problem,” said Arturo McFields Yescas, a former Nicaraguan ambassador to the Organization of American States who resigned and denounced the Ortegas last year.

“What he can’t control, he robs or destroys,’’ he said. “The baseball or boxing champions, for example, have to pay tribute to the regime. If they don’t, they become targets. Sheynnis has something — she came from the bottom, she doesn’t owe anything to the dictatorship — and that makes her someone dangerous.”

Ms. Palacios, who grew up roughly an hour south of Managua, the capital, was raised by a single mother. While at college — which was closed by the Ortega government this year — she helped her mother make buñuelos, fried dough treats, to sell to help pay for school.

The day after Ms. Palacios won Miss Universe, the Nicaraguan government said the country was celebrating “its queen” with “legitimate pride and joy.”

But the authorities shifted their tone soon after large numbers of people took to the streets, waving the Nicaraguan flag. Public demonstrations are effectively prohibited and the government promotes the red and black Sandinista flag over the blue and white national one.

“People lost the fear,” Mr. McFields said, “and that’s the part that scared the dictatorship the most.”

For the full story, see:

James Wagner. “Once She Won Crown, Nicaragua Saw Her as a Threat.” The New York Times, First Section (Sunday, December 17, 2023): 13.

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

(Note: the online version of the story has the date Dec. 16, 2023, and has the title “She Was Crowned Miss Universe. Then Her Government Cracked Down.” The online version says that the title of the print version is “Nicaragua Sees a Threat Behind a Beauty Pageant” but my national edition of the print version had the title “Once She Won Crown, Nicaragua Saw Her as a Threat.”)

Hamas Murdered Israeli Peace Activist at Music Festival

(p. A8) Maya Mizrachi grimaced at the group of eight Israelis calling for peace with Palestinians in front of Israel’s military headquarters this month in Tel Aviv.

A year ago, Ms. Mizrachi, 25, had protested alongside them, carrying a sign that called for Israel to end its military occupation of the West Bank. Now, she had bumped into them by accident, on her way home from a nearby rally calling for the return of Israeli citizens held hostage in the Gaza Strip.

“I don’t think there are more than eight people in all of Israel who would protest against the army right now,” said Ms. Mizrachi, who is a student. “I can’t even bring myself to do it.”

. . .

According to polls conducted in the two months since Oct. 7 [2023], Israelis have moved decidedly to the right on a number of political issues, including support for settlers in the West Bank, endorsements for far-right politicians, and even the re-establishment of a military occupation of Gaza.

“The trauma of what happened on Oct. 7 shifted Israeli society. It made them question the most basic tenets of whether they were safe in their homes,” said Tal Schneider, a political columnist for The Times of Israel. “They are calling now for more — more military, more protection, more hard-line policies.”

. . .

The towns and agricultural communities that line Israel’s border with Gaza were once bastions of the left. Many villages there were founded as kibbutzim, socialist agricultural communities. Over the years, many residents used their proximity to the Palestinians in Gaza to help deliver aid and run solidarity campaigns.

On Oct. 7, the closeness of those communities to the border made them vulnerable to the attack by Hamas terrorists. Well-known peace activists, including Vivian Silver, a founder of Women Wage Peace, were among those killed. The attack made the survivors rethink policies they had previously championed.

Before Oct. 7, Larry Butler, 73, a resident of Nir Oz, considered himself a leftist. As a member of Peace Now, he participated in rallies calling for the evacuation of Israeli settlements in Gaza, which were disassembled in 2005.

Now, displaced in a hotel in Eilat, a resort town on the Red Sea, Mr. Butler has questioned his beliefs. “I guess I’m somewhere in the middle,” he said, “but I’m definitely not left and I’m definitely not right.”

In Tel Aviv, Ms. Mizrachi’s turn against the left came soon after Oct. 7, when she discovered that a high school friend was among those killed at the Tribe of Nova music festival.

“The irony is that she was the biggest peace activist I knew,” Ms. Mizrachi said. “She was the one who got me involved in the movement to begin with,” she added. “I used to joke that she made me a leftie. Now I can’t say that I am.”

For the full story, see:

Sheera Frenkel. “After the Oct. 7 Attacks, Israelis Are Becoming More Politically Conservative.” The New York Times (Wednesday, December 20, 2023): A8.

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

(Note: the online version of the story has the date Dec. 19, 2023, and has the title “Israelis Abandon Political Left Over Security Concerns After Oct. 7.”)

Britain’s Socialized National Health Service (NHS) Stripped Parents of Control, Leaving Indi No Choice but to Die

(p. A13) Indi was born with mitochondrial disease, a degenerative condition that prevents cells from producing energy. When her parents and the Queen’s Medical Centre in Nottingham, England, disagreed over whether she should be kept on life support, the NHS turned to the courts to strip the parents of decision-making authority. The U.K. High Court agreed, overrode the parents’ wishes, and ordered life support removed.

. . .

While the NHS thought continued treatment would be futile, other experts disagreed, including at the Vatican’s Bambino Gesù pediatric hospital. As part of its religious mission, Bambino Gesù specializes in treating children with rare diseases. Doctors there offered a treatment plan they thought could help Indi, free of charge. The Italian government even made her a citizen so that she could be airlifted from England.

. . .

For the U.K., the offer of free treatment by willing doctors ought to have been the end of the story. The government didn’t have to pay another penny. The grateful parents simply wanted the freedom to take their daughter to the experts in Rome.

Instead, the NHS went back to the same court and judge to insist it remained in Indi’s best interests to die in the U.K. The court again agreed and overrode the parents’ desire to take Indi to see the experts in Rome. The judge ordered that they could take her only to one place: to the hospice to die.

The parents had no choice but to comply. Lest they try anything else to save their daughter, the parents were sent to hospice with a security escort and police presence.

Deprived of treatment and with her parents forbidden to help her, Indi died within two days, under the watchful eye of the government that said all along it was looking out for her best interests.

For the full commentary, see:

Mark Rienzi. “Britain’s NHS Left Indi Gregory to Die.” The Wall Street Journal (Tuesday, Nov. 21, 2023): A13.

(Note: ellipses added.)

(Note: the online version of the commentary has the date November 20, 2023, and has the same title as the print version.)

“Sí Se Puede”

(p. 21) A center-right candidate appeared headed to victory in Venezuela on Monday in a primary election to choose an opposition candidate to compete in presidential elections next year — a vote that could prove pivotal to the fate of a country that has endured a decade of economic crisis and authoritarian governance.

. . .

At a polling station in a parking lot in Catia, a poor neighborhood in Caracas, voters began lining up at 7 a.m. only to encounter a problem: a group of pro-government civilians was threatening to burn the cars in the parking lot if voting proceeded.

But a woman who lived nearby, Margarita Fuenmayor, offered a solution: She would lend her house as a makeshift voting station.

“My parents died without medical attention in this country,” said Ms. Fuenmayor, 52, as a crowd of voters pushed and shoved to try to enter her home. “I think we need a change.”

All the while the line of voters outside grew. As voters left, they shouted “Sí se puede” or “Yes we can.’’

In another Caracas neighborhood, tables ordered by election volunteers never arrived. Instead the workers set voting boxes on chairs that neighbors had brought out from their houses. Hundreds of people stood in line, holding umbrellas against the rain.

Jesús Abreu, 68, voted and then stayed on as a volunteer. He said he lived on a pension of about $3.70 a month.

“I am here today because we are agonizing in life,’’ he said. “The government is slowly killing us.”

Ms. Machado is a veteran politician nicknamed “the iron lady” because of her adversarial relationship with the governments of Mr. Maduro and Mr. Chávez. She is viewed by some supporters as courageous for staying in Venezuela when many other politicians have fled political persecution.

. . .

“I ask you to remember how many people believed that this was impossible and we have overcome all the obstacles, overcome the hurdles and here we are,” Ms. Machado said as she voted Sunday morning in a middle-class Caracas neighborhood.”

For the full story, see:

Isayen Herrera and Genevieve Glatsky. “Venezuelans Bet on a Challenger to Maduro.” The New York Times (Tuesday, October 24, 2023): A11.

(Note: ellipses added.)

(Note: the online version of the story was updated Oct. 23, 2023, and has the title “Maduro Antagonist on Track to Win Venezuela Primary.”)

“If Something Similar Happens Here, I Want to Know That I Have a Firearm”

(p. A1) Two weeks ago, Zvika Arran reluctantly drew a gun at an Israeli state-run shooting class for those seeking firearms licenses, part of a massive spike in applications since the Hamas-led attacks on Oct. 7 [2023].

Mr. Arran said he was repelled by the idea of owning the pistol that now sits in a safe in his house. But his sense of security, like that of so many Israelis, was shattered when Hamas fighters overran communities near the Gaza Strip, killing an estimated 1,200 people and abducting more than 240 hostages, according to Israeli officials.

“God forbid, if something similar happens here, I want to know that I have a firearm,” said Mr. Arran, 48, who lives in Eliav, a small town that borders the Israeli-occupied West Bank.

. . .

(p. A6) Another resident of Eliav, Maayan Rosenberg-Schatz, said that like so many other Israelis, she no longer believed the Israeli military — which took hours to arrive at some embattled communities on Oct. 7 — would reach them in time in a crisis.

Two days after the attacks, she sat down with two of her young children to plan how to escape should Palestinian attackers invade their home.

“We talked about trying to flee to the roof, maybe escaping from there,” said Ms. Rosenberg-Schatz, 42, who applied for a gun license along with her husband. “But in the end, there’s no replacement for having a weapon.”

Ms. Rosenberg-Schatz, who described herself as politically center-left, said she was concerned that proliferating guns might fall into the wrong hands.

“Everyone tells you they’re worried about that — but they still feel unsafe” without a gun, she added. “Suddenly, we feel this fear deep down in our guts, and it’s really difficult to argue with that.”

For the full story, see:

Aaron Boxerman and Talya Minsberg. “Galvanized by Fear, Israelis Arm Themselves.” The New York Times (Saturday, December 16, 2023): A1 & A6.

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

(Note: the online version of the story has the date Dec. 15, 2023, and has the title “Private Gun Ownership in Israel Spikes After Hamas Attacks.”)

Rich Chinese “Moved Hundreds of Billions of Dollars Out of” China in 2023

(p. B1) Affluent Chinese have moved hundreds of billions of dollars out of the country this year [2023], seizing on the end of Covid precautions that had almost completely sealed China’s borders for nearly three years.

They are using their savings to buy overseas apartments, stocks and insurance policies. Able to fly again to Tokyo, London and New York, Chinese travelers have bought apartments in Japan and poured money into accounts in the United States or Europe that pay higher interest than in China, where rates are low and falling.

The outbound shift of money in part indicates unease inside China about the sputtering recovery after the pandemic as well as deeper problems, like an alarming slowdown in real estate, the main storehouse of wealth for families. For some people, it is also a reaction to fears about the direction of the economy under China’s leader, Xi Jinping, who has cracked down on business and strengthened the government’s hand in many aspects of society.

In some cases, Chinese are improvising to get around China’s strict government controls on transferring money overseas. They have bought gold bars small enough to be scattered unobtrusively through carry-on luggage, as well as large stacks of foreign currency.

Real estate is an option, too. Chinese have emerged as the main buyers of Tokyo apartments costing $3 million or more, and they often pay with suitcases of cash, said Zhao Jie, the chief executive of Shenjumiaosuan, an online real estate listing service in Tokyo. “It’s really hard work to count this kind of cash.”

Before the pandemic, he said, (p. B5) Chinese buyers typically bought Tokyo studio apartments for $330,000 or less to rent out. Now they are buying much larger units and obtaining investment visas to relocate their families.

All told, an estimated $50 billion a month has been taken out of China this year, mainly by Chinese households and private-sector companies.

For the full story, see:

Keith Bradsher and Joy Dong. “Suitcases of Cash: How China’s Money Flows Out.” The New York Times (Tuesday, Nov. 28, 2023): B1 & B5.

(Note: bracketed year added.)

(Note: the online version of the story has the same date as the print version, and has the title “Gold Bars and Tokyo Apartments: How Money Is Flowing Out of China.”)

Slow Regulatory Approval Is “A Pretty Big Barrier to Entry” for Smaller and Safer Innovative Nuclear Reactors

(p. B1) . . ., the great hope for the future of nuclear power is to go small.

Nearly a dozen companies are developing reactors that are a fraction of the size of those at Vogtle, betting that they will be quicker and cheaper to build. As the United States looks to transition away from fossil fuels that have underpinned its economy for 150 years, nuclear power is getting renewed interest, billions of dollars from the Biden administration and support from Republicans.

One reason is that nuclear plants can run at all hours, in any season. To those looking to replace coal and gas with wind and solar energy, nuclear power can provide a vital backstop when the air is calm or the sky is cloudy.

“The United States is now committed to trying to accelerate the deployment of nuclear energy,” John Kerry, President Biden’s climate envoy, said in September. “It’s what we believe we absolutely need in order to win this battle.”

. . .

(p. B4) One recent Pew survey found that 57 percent of Americans favor more nuclear plants, up from 43 percent in 2016. Republicans have traditionally backed atomic energy, but the survey found rising support among Democrats.

While many environmental groups still oppose nuclear power, some skeptics are softening.

. . .

For nearly five decades, the Nuclear Regulatory Commission has regulated large light-water reactors. Now it has to consider a dizzying array of new technologies and their safety characteristics.

The approval process can be slow. To date, the N.R.C. has certified only one small reactor design, developed by NuScale Power. NuScale’s light-water technology is similar to existing plants, but the company argued that smaller reactors required different safety rules, such as smaller evacuation zones in case of accidents. Securing approval took a decade and cost $500 million.

“It’s a pretty big barrier to entry,” said Jose Reyes, NuScale’s chief executive. “And this was for a technology that regulators are already familiar with.”

At a recent House hearing, Republicans and Democrats alike complained that a draft rule meant to help license advanced reactors was 1,173 pages long and largely unworkable.

“Everyone agrees that reactors need to be safe,” said Adam Stein, director of nuclear innovation at the Breakthrough Institute, a pronuclear research organization. “But it’s also possible for a regulator to be too conservative and too risk-averse.”

For the full story, see:

Brad Plumer and Ivan Penn. “Going Small to Confront a Big Problem.” The New York Times (Tuesday, Nov. 28, 2023): B1 & B4.

(Note: ellipses added.)

(Note: the online version of the story has the date Nov. 12 [sic], 2023, and has the title “U.S. Bets on Small Nuclear Reactors to Help Fix a Huge Climate Problem.”)

Refusenik Sharansky Argues That Palestinians Have Human Rights but Not the Right to Murder Jews

(p. A15) An Israeli politician and human-rights advocate, Mr. Sharansky was once the best-known refusenik—a name for Soviet Jews who were denied permission to emigrate to Israel. In February 1986, he became “the first political prisoner released by Mikhail Gorbachev.” He served as a cabinet minister in every Israeli government from 1996 to 2005, including a stint as Ariel Sharon’s deputy prime minister from 2001 to 2003.

Before emigrating to Israel, he spent nine years in Soviet prisons accused of treason. He’s 75 but jokes that he’s 66: “My nine years in prison don’t count.”

. . .

Mr. Sharansky abhors Oslo. Still regarded in some circles as the touchstone of Israeli-Palestinian compromise, the agreement handed control of Palestinian land to Yasser Arafat’s Palestinian Authority in the belief that he would be able to subdue Hamas. “I’m not against compromises with the Palestinians,” Mr. Sharansky says. “I’ve said I’m for a two-state solution from the moment I came to Israel. I want Palestinians to have the same rights as I, but they should never have an opportunity to destroy me.”

At Oslo, he says, Israel foisted “a ruthless dictator on the Palestinians. We told them, “Like it or not, he will be your leader.’ With [Bill] Clinton and all the free world, we gave Arafat the power to destroy all the beginnings of freedom of the Palestinian people and helped build a generation of haters.” Mr. Sharansky says it’s “absolutely ridiculous” that a “fifth generation” of Palestinians lives in refugee camps, but he says “their leaders are to blame. And the free world, that gives money to these leaders—a lot of money.”

Mr. Sharansky is certain that Israel’s security can be assured only by a free Palestinian society, in which people “enjoy a normal life, normal freedom, the opportunity to vote and have their own human rights.” In “The Case for Democracy” (2004), he wrote: “I remain convinced that a neighbor who tramples on the rights of its own people will eventually threaten the security of my people.” The book was published a year before Israel “disengaged” from the Gaza Strip, withdrawing the army and forcibly uprooting Jews who had settled there.

That decision led Mr. Sharansky to resign from Sharon’s cabinet. Arafat had failed to tame Hamas, and Mr. Sharansky believed Gaza would be taken over by the terrorist group, whose ideology is “suicide for the sake of destroying the state of Israel.” He resigned before disengagement took effect, because he didn’t want to “take responsibility for the fact that we, by our own hands, were creating the biggest terrorist base in the Middle East, and that missiles will come one day to Ashkelon,” a coastal city less than 10 miles from the Gaza border.

For the full interview, see:

Tunku Varadarajan, interviewer. “THE WEEKEND INTERVIEW; A Refusenik in a Country at War.” The Wall Street Journal (Saturday, Oct. 28, 2023): A15.

(Note: ellipsis added.)

(Note: the online version of the interview has the date October 27, 2023, and has the title “THE WEEKEND INTERVIEW; Opinion: A Refusenik in a Country at War.” In the original the word “refusenik” was italicized in the body of the interview.)

Natan Sharansky’s book mentioned above is:

Sharansky, Natan. The Case for Democracy: The Power of Freedom to Overcome Tyranny and Terror. New York: PublicAffairs, 2004.

Americans Buy SUVs, Rejecting Limited Space in Their Vehicles

(p. A6) Not all consumers think of the energy consumption and environmental benefits the same way, especially in the U.S. While EV sales accounted for 15% of the global car market last year, that was only 7.3% in the U.S.

Meanwhile, smaller vehicles, or sedans, lost a lot of ground in the U.S. market over the past decade. In 2012, sedans accounted for 50% of the U.S. auto retail space, with SUVs at just over 30%, and trucks at 13.5%, according to car-buying resource Edmunds. By 2022, U.S. sedan share dropped to 21%, while SUVs hit 54.5% and trucks grew to 20%.

“People don’t want to be limited by their space in their car,” said Eric Frehsée, president of the Tamaroff Group of dealerships in southeast Michigan. “Everyone wants a 7-passenger.”

For the full story, see:

ALEXA ST. JOHN, Associated Press. “Big Cars Erase Gains from Cleaner Tech.” Omaha World-Herald (Wednesday, Nov. 29, 2023): A6.

(Note: the online version of the story has the date Nov. 28, 2023, and has the title “Buyers go for bigger cars, erasing gains from cleaner tech. EVs would help.”)

Planners of Megaprojects Almost Always Over-Promise and Under-Deliver

(p. B5) Bent Flyvbjerg is an expert in the planning and management of “megaprojects,” his name for huge efforts that require at least $1 billion of investment: bridges, tunnels, office towers, airports, telescopes and even the Olympics. He’s spent decades wrapping his mind around the many ways megaprojects go wrong and the few ways to get them right, and he summarizes what he’s learned from his research and real-world experience in a new book called “How Big Things Get Done.”

Spoiler alert! Big things get done very badly.

They cost too much. They take too long. They fall too short of expectations too often. This is what Dr. Flyvbjerg calls the Iron Law of Megaprojects: “over budget, over time, under benefits, over and over again.”

The Iron Law of Megaprojects might sound familiar to anyone who has survived a home renovation. But when Dr. Flyvbjerg dug into the numbers, the financial overruns and time delays were more common than he expected. And worse. Much worse.

His seminal work on big projects can be distilled into three pitiful numbers:

• 47.9% are delivered on budget.

• 8.5% are delivered on budget and on time.

• 0.5% are delivered on budget, on time and with the projected benefits.

. . .

Humans are optimistic by nature and underestimate how long it takes to complete future tasks. It doesn’t seem to matter how many times we fall prey to this cognitive bias known as the planning fallacy. We can always ignore our previous mishaps and delude ourselves into believing this time will be different. We’re also subject to the power dynamics and competitive forces that complicate reality, since megaprojects don’t take place in controlled environments, and they are plagued by politics as much as psychology. Take funding, for example. “How do you get funding?” he said. “By making it look good on paper. You underestimate the cost so it looks cheaper, and you underestimate the schedule so it looks like you can do it faster.”

For the full review, see:

Ben Cohen. “SCIENCE OF SUCCESS; 99% of Big Projects Fail. Lego Is the Fix.” The Wall Street Journal (Saturday, February 4, 2023): B5.

(Note: ellipsis added.)

(Note: the online version of the review has the date February 2, 2023, and has the title “SCIENCE OF SUCCESS; 99% of Big Projects Fail. His Fix Starts With Legos.”)

The book under review is:

Flyvbjerg, Bent, and Dan Gardner. How Big Things Get Done: The Surprising Factors That Determine the Fate of Every Project, from Home Renovations to Space Exploration and Everything in Between. New York: Currency, 2023.

As Freedom Left Hong Kong, So Did Hundreds of Billions of Dollars and 100,000 Citizens

(p. B1) This summer, when Hong Kong’s stock market rout seemed to have no end in sight, the city’s financial chief, Paul Chan, jumped into action, creating a task force to inject confidence into a market that was being pummeled by global investors wary of China.

Hong Kong cut taxes on trading, and Mr. Chan went on a roadshow to Europe and the United States, promising measures to “let investors feel optimistic about the outlook.” Investors were anything but sanguine, however, and the city’s stock exchange is among the world’s worst-performing stock markets this year.

. . .

Hundreds of billions of dollars flowed out this year as money managers and pension funds reduced their holdings in Hong Kong, which has long been a gateway for foreign investors wanting to put money into mainland China. The outflows were largely driven by an economic downturn in China and mounting pressure on American investors to sell their (p. B3) exposure to Chinese companies.

. . .

A former British colony, Hong Kong was handed back to China in 1997 with a pledge that it would maintain a high degree of self-governance under a policy called “one country, two systems.” For two decades, this allowed Hong Kong to define itself as unique and distinct from the rest of China, while offering financial access to the world’s second largest economy.

But after citywide protests in 2019, Beijing imposed the national security law, which has silenced political debate and stifled civic activity.

More than 100,000 residents have left Hong Kong over the last few years, in part because of the security law and tough pandemic restrictions. Many young Hong Kong professionals who are still there have expressed a desire to leave, making it a challenge to recruit the talent that has helped the city function as a financial center.

Once a major hub for Wall Street banks, Hong Kong had a drought of initial public offerings this year. Companies raised the lowest amount of money since 2001, resulting in layoffs at financial institutions citywide.

Many international companies have stopped hiring for new positions in Hong Kong. With less money coming into the exchange and fewer transactions, dozens of brokerages have also closed.

For the full story, see:

Alexandra Stevenson. “Hong Kong Stock Market Ends in Loss For 4th Year.” The New York Times (Saturday, December 30, 2023): B1 & B3.

(Note: ellipses added.)

(Note: the online version of the story has the date Dec. 29, 2023, and has the title “Hong Kong Stocks Plunge to Losses for 4th Straight Year.”)