Category: Regulations

Cities Stop Recycling as Costs Exceed Benefits

(p. A1) Recycling, for decades an almost reflexive effort by American households and businesses to reduce waste and help the environment, is collapsing in many parts of the country.

Philadelphia is now burning about half of its 1.5 million residents’ recycling material in an incinerator that converts waste to energy. In Memphis, the international airport still has recycling bins around the terminals, but every collected can, bottle and newspaper is sent to a landfill. And last month, officials in the central Florida city of Deltona faced the reality that, despite their best efforts to recycle, their curbside program was not working and suspended it.

Those are just three of the hundreds of towns and cities across the country that have canceled recycling programs, limited the types of material they accepted or agreed to huge price increases.

“We are in a crisis moment in the recycling movement right now,” said Fiona Ma, the treasurer of California, where recycling costs have increased in some cities.

. . .

(p. A25)  With fewer buyers, recycling companies are recouping their lost profits by charging cities more, in some cases four times what they charged last year.

Amid the soaring costs, cities and towns are making hard choices about whether to raise taxes, cut other municipal services or abandon an effort that took hold during the environmental movement of the 1970s.

“Recycling has been dysfunctional for a long time,” said Mitch Hedlund, executive director of Recycle Across America, . . .

. . .

In Deltona, higher costs were not the only factor behind the decision last month to stop recycling. Even if the city agreed to pay the additional $25,000 a month that its recycling company was charging, there was no assurance that all the plastic containers and junk mail would be turned into something new, Mayor Heidi Herzberg said.

“We all did recycling because it was easy, but the reality is that not much was actually being recycled,” Ms. Herzberg said.

. . .

Some large waste producers are still going through the motions of recycling, no matter how futile.

Across Memphis, large commercial enterprises have had to stop recycling for now because of contamination problems. But the airport is keeping its recycling bins in place to preserve “the culture” of recycling among passengers and employees, a spokesman said.

For the full story, see:

Michael Corkery.  “More Cities Stop Recycling.  They Can’t Afford It.”  The New York Times, First Section  (Sunday, March 17, 2019):  A1 & A25.

(Note:  ellipses added.)

(Note:  the online version of the story has the date March 16, 2019, and has the title “As Costs Skyrocket, More U.S. Cities Stop Recycling.”  The online version says that the New York print version had the title “As Costs Surge, Cities’ Recycling Becomes Refuse.”  My National print edition had the title given in the citation above.)

“Clever” Developers Evade New York City’s “Labyrinthine Zoning Laws”

(p. A1)  Some of the tallest residential buildings in the world soar above Central Park, including 432 Park Avenue, which rises 1,400 feet and features an array of penthouses and apartments for the ultrarich.

But 432 Park also has an increasingly common feature in these new towers: swaths of unoccupied space. About a quarter of its 88 floors will have no homes because they are filled with structural and mechanical equipment.

The building and nearby towers are able to push high into the sky because of a loophole in the city’s labyrinthine zoning laws. Floors reserved for structural and mechanical equipment, no matter how much, do not count against a building’s maximum size under the laws, so developers explicitly use them to make buildings far higher than would otherwise be permitted.

. . .

(p. A20)  “It’s pretty outrageous, but it’s also pretty clever,” said George M. Janes, a planning consultant who has tracked and filed challenges against buildings in New York with vast unoccupied spaces. “What is the primary purpose of these spaces? The primary purpose is to build very tall buildings.”

. . .

New York City’s complicated building regulations are meant to produce predictable developments. Height requirements are imposed in most of the city, though parts of Manhattan are exempt. Every block is also effectively assigned a maximum square footage, which can be spread across smaller buildings on a block or condensed in larger developments.

Savvy, well-heeled and patient developers have worked that system to their benefit. A developer seeking to build a supertall tower might start with one lot on a block and then buy unused square footage from its neighbors.

With advancements in engineering and construction, that developer can take the accumulated square footage and concentrate it in a skinny mega-tower. Floors of mechanical space, exempt from the square footage calculations, make the tower even taller.

For the full story, see:

Matthew Haag.  “Builders Use Ploy to Create the Luxury of Height.”  The New York Times (Saturday, April 20, 2019):  A1 & A20.

(Note:  ellipses added.)

(Note:  the online version of the story also has the date April 20, 2019, but has the title “How Luxury Developers Use a Loophole to Build Soaring Towers for the Ultrarich in N.Y.”)

“Macron Is Concerned with the End of the World; We Are Concerned with the End of the Month”

(p. A6) “Bosses prefer taking on temporary workers,” says Virginie Bonnin, 40, who works in local auto parts plants. “We are disposable.”

A single mother of three girls, Ms. Bonnin earns €1,900 a month. She learns on Thursday nights what her hours will be for the coming week. When her jobs end, she is sustained by unemployment benefits of about €1,400 a month.

“I’m not the worst off,” she says. “But it’s tricky.  In those times, I will not eat meat so that the kids can eat meat.” Her last summer vacation, a sacred French institution, was two years ago.

Ms. Bonnin was provoked into joining the Yellow Vests by the same measure that mobilized much of the country, a tax on gasoline that was to take effect in January.

Mr. Macron promoted it as a means of adapting to climate change. Outside major cities, where people rely on cars to get nearly everywhere, it supplied proof that the president was indifferent to the working class.  “Macron is concerned with the end of the world,” one Yellow Vest slogan put it.  “We are concerned with the end of the month.”

That accusation endured even after Mr. Macron suspended the gas tax in the face of Yellow Vest furor.

For the full story, see:

Peter S. Goodman.  “Rage of ‘Yellow Vests’ in France Intensifies Over People Left Behind.”  The New York Times (Thursday, April 18, 2019):  A6.

(Note:  the online version of the story has the date April 15, 2019, and has the title “Inequality Fuels Rage of ‘Yellow Vests’ in Equality-Obsessed France.”)

Boeing Tech Kludge Designed to Avoid Cost of Re-Certification Regulations

(p. A18)  . . . , Boeing engineers created the automated anti-stall system, called MCAS, that pushed the jet’s nose down if it was lifting too high. The software was intended to operate in the background so that the Max flew just like its predecessor. Boeing didn’t mention the system in its training materials for the Max.

Boeing also designed the system to rely on a single sensor — a rarity in aviation, where redundancy is common. Several former Boeing engineers who were not directly involved in the system’s design said their colleagues most likely opted for such an approach since relying on two sensors could still create issues. If one of two sensors malfunctioned, the system could struggle to know which was right.

Airbus addressed this potential problem on some of its planes by installing three or more such sensors. Former Max engineers, including one who worked on the sensors, said adding a third sensor to the Max was a nonstarter. Previous 737s, they said, had used two and managers wanted to limit changes.

“They wanted to A, save money and B, to minimize the certification and flight-test costs,” said Mike Renzelmann, an engineer who worked on the Max’s flight controls. “Any changes are going to require recertification.” Mr. Renzelmann was not involved in discussions about the sensors.

For the full story, see:

Jack Nicas and Julie Creswell.  “Boeing’s 737 Max: ’60s Design Meets ’90s Computing Power.”  The New York Times (Tuesday,  2019):  A1 & A18.

(Note:  ellipsis added.)

(Note:  the online version of the story has the date , and has the title “Boeing’s 737 Max: 1960s Design, 1990s Computing Power and Paper Manuals.”)

Firms Moving from Silicon Valley to Texas

(p. A3) SAN FRANCISCO–California’s economy is adding jobs far faster than affordable places to live, forcing some employers to leave the state as they expand.
. . .
Karen Holian, 44 years old, joined the startup Lottery.com when it was founded here in 2015. Though a San Francisco native, Ms. Holian, a marketing manager, was excited when the company last year moved to Austin, Texas, because she could finally plan to buy a home.
“In San Francisco, that never seemed like a possibility,” she said. A mother of two, she is for now renting a four-bedroom house for $2,000 a month, a third of what a comparable place costs in her hometown.
Lottery.com CEO Tony DiMatteo said that as the company grew, he found it difficult to persuade current and prospective employees to move to the area. “We can give them a much better bang for their buck if we’re not in San Francisco,” he said.
. . .
Carl Guardino, chief executive of the Silicon Valley Leadership Group, said CEOs tell him “that any new job that doesn’t absolutely need to be in the Bay Area is located outside of the Bay Area.” The public-policy advisory group counts some 360 companies, including Silicon Valley’s largest, as members.
. . .
Texas has drawn more companies leaving California over the past decade than any other state, according to research by Joe Vranich, a relocation consultant who encourages businesses to leave California.
Housing costs are “a major selling point for us,” said Mike Rosa, senior vice president of economic development for the Dallas Regional Chamber. “It’s a factor in just about every [relocation] search we see.”

For the full story, see:
Nour Malas. “Firms Quit California Over Costs.” The Wall Street Journal (Tuesday, March 20, 2019): A3.
(Note: ellipses, and bracketed year, added; bracketed word, in original.)
(Note: the online version of the story has the date March 19, 2019, and has the title “California Has the Jobs but Not Enough Homes.” The sentence quoting Karen Holian appeared in the online, but not the print, version.)

Boghossian May Be Punished for Exposing the “Faulty Epistemology” of Grievance Studies

(p. A15) A massive academic hoax has taken a surprising twist. Peter Boghossian, an assistant professor of philosophy, faces disciplinary action at Oregon’s Portland State University. The accusations against him raise constitutional questions about federal regulation of academic research. They also implicitly acknowledge that the prank had a serious point.
Mr. Boghossian–along with two confederates, neither of whom has an academic affiliation–set out to expose shoddy scholarship in what they call “grievance studies.” They concocted 20 pseudonymous “academic papers,” complete with fake data, and submitted them to leading peer-reviewed scholarly journals in fields like “queer studies” and “fat studies.” The Journal’s Jillian Melchior discovered the deception last summer and broke the story in October, by which time seven of the phony papers had been accepted for publication and four published.
“It had to be done,” Mr. Boghossian tells me. “We saw what was happening in these fields, and we were horrified at the faulty epistemology that these people were using to credential themselves and teach others.” The effort drew praise from some well-known public intellectuals, including Richard Dawkins, Jordan Peterson and Steven Pinker.
. . .
A hastily formed university committee recommended that Mr. Boghossian be investigated for “research misconduct”–that is, purposely fabricating data. That case would seem to be open and shut, but the investigation has stalled.
More serious are the sanctions against Mr. Boghossian announced Dec. 21 on behalf of Portland State’s Institutional Review Board for conducting research on “human subjects” without submitting his research protocol to the IRB for review as required by the federal National Research Act of 1974. The “human subjects” in question were the editors and peer-reviewers of the duped journals. Portland State ordered Mr. Boghossian to undergo “human subjects research training,” and its letter warns that “further actions may be required,” with no elaboration.
. . .
Philip Hamburger, a law professor at Columbia, argues that the National Research Act and the HHS’s regulations violate the First Amendment, infringing on scholars’ freedom of expression. Mr. Hamburger has likened IRB vetting procedures to the Star Chamber’s licensing of publications that prevailed in 17th-century England–which the Constitution’s drafters were eager not to replicate. “Licensing . . . prohibits generally, and then selectively permits what otherwise is forbidden,” Mr. Hamburger wrote in 2007.

For the full commentary, see:
Charlotte Allen. “A Hoax and Its ‘Human Subjects’; An Institutional Review Board disciplines an academic prankster. But is it constitutional?” The Wall Street Journal (Tuesday, Jan. 29, 2019): A15.
(Note: ellipses between paragraphs, added; ellipsis internal to last paragraph, in original.)
(Note: the online version of the commentary has the date Jan. 28, 2019.)

Small Spanish Firms Less Likely to Hire with Higher Minimum Wage

(p. B1) MADRID — As Spain grapples with a turbulent political crisis, one of Europe’s last Socialist governments may soon fall amid the rise of a new nationalism in the country. But whatever the outcome, Prime Minister Pedro Sánchez is leaving behind a signature legacy: a record increase in the minimum wage.
The 22 percent rise that took effect in January, to 1,050 euros (about $1,200) a month, is the largest in Spain in 40 years. Yet the move has ignited a debate over whether requiring employers to pay more of a living wage is a social watershed, or a risky attempt at economic engineering.
. . .
(p. B4) Over 95 percent of businesses in Spain are small and medium-size firms, many of which operate with thin margins, according to Celia Ferrero, the vice president of the National Federation of Self-Employed Workers.
“You won’t find people disputing that higher wages are needed,” said Ms. Ferrero, whose organization represents many smaller businesses. “The question is whether firms can afford it. Higher wages and social security taxes simply make it more expensive for employers to hire or maintain staffers.”
“It’s not that they don’t want to pay; they literally can’t,” she added.
Lucio Montero, the owner of General Events, which makes booths and backdrops for firms displaying wares at big conventions, employs eight workers on the outskirts of Madrid. He pays each €1,400 a month.
The higher minimum wage and increased social security charges will put upward pressure on his labor bill and already thin margins, he said. It is a cost that he can ill afford.
“I would need to think twice about hiring more people,” said Mr. Montero, walking around his tiny, sawdust-covered factory floor.

For the full story, see:
Liz Alderman. “Spain’s Minimum Wage Has Surged. So Has Debate.” The New York Times (Friday, March 8, 2019): B1 & B4.
(Note: ellipsis added.)
(Note: the online version of the story has the date March 7, 2019, and has the title “Spain’s Minimum Wage Just Jumped. The Debate Is Continuing.”)

Central Planning Elitism Leads to Rule by the Corrupt or the Incompetent

(p. A23) . . . the underlying faith of the Green New Deal is a faith in the guiding wisdom of the political elite. The authors of the Green New Deal assume that technocratic planners can master the movements of 328 million Americans and design a transportation system so that “air travel stops becoming necessary.” (This is from people who couldn’t even organize the successful release of their own background document.)
They assume that congressional leaders have the ability to direct what in effect would be gigantic energy firms and gigantic investment houses without giving sweetheart deals to vested interests, without getting corrupted by this newfound power, without letting the whole thing get swallowed up by incompetence. (This is a Congress that can’t pass a budget.)
. . .
The impulse to create a highly centralized superstate recurs throughout American history. There were people writing such grand master plans in the 1880s, the 1910s, the 1930s. They never work out. As Richard Weaver once put it, the problem with the next generation is that it hasn’t read the minutes of the last meeting.

For the full commentary, see:
Brooks, David. “How the Left Embraced Elitism; The progressives’ Green New Deal centralizes power.” The New York Times (Tuesday, Feb. 12, 2019): A23.
(Note: ellipses added.)
(Note: the online version of the commentary has the date Feb. 11, 2019.)

In a “Terribly Regulated” Germany “People Look for Their Little Spaces of Freedom”

(p. A1) BERLIN — It seemed like a no-brainer: Lower Germany’s embarrassingly high carbon emissions at no cost, and save some lives in the process.
But when a government-appointed commission in January [2019] dared to float the idea of a speed limit on the autobahn, the country’s storied highway network, it almost caused rioting.
. . .
(p. A10) Call it Germany’s Wild West: The autobahn is the one place in a highly regulated society where no rule is the rule — and that place is sacred.
. . .
Germany is woefully behind on meeting its 2020 climate goals, so the government appointed a group of experts to find ways to lower emissions in the transport sector. Cars account for 11 percent of total emissions, and their share is rising.
A highway speed limit of 120 kilometers an hour, or 75 miles per hour, could cover a fifth of the gap to reach the 2020 goals for the transport sector, environmental experts say.
“Of all the individual measures, it is the one that would be the most impactful — and it costs nothing,” said Dorothee Saar, of Deutsche Umwelthilfe, a nonprofit environmental organization that has lobbied for a speed limit.
. . .
Once, during the oil crisis in 1973, a German transport minister took his chances and imposed a speed limit. Road deaths stood at over 20,000 a year at the time (six times today’s level) and with oil prices skyrocketing, Lauritz Lauritzen thought Germans might reasonably see the benefits of saving some lives and some money on gas, too.
The speed limit lasted four months, and Mr. Lauritzen not much longer.
The experiment gave birth to the “Freie Fahrt für freie Bürger!” campaign — or “Freedom to drive for free citizens!” — the car lobby’s most powerful slogan to this day, and one used by political parties and car companies alike, a sort of unwritten second amendment.
“It’s all about freedom,” said John C. Kornblum, a former United States ambassador to Germany, who first arrived here in the 1960s, and has been living (and driving) here on and off ever since.
. . .
“Germany is terribly regulated, for reasons which have to do with the past, with a fear of uncertainty, a fear of being overwhelmed,” Mr. Kornblum said. “But then people look for their little spaces of freedom and the autobahn is one of them.”
And speeding isn’t the only freedom the autobahn offers.
Driving naked in Germany is legal, too. But if you get out of the car nude, you face a $45 fine.

For the full story, see:
Katrin Bennhold. “Autobahn Speed Limits? Voting With Lead Feet.” The New York Times (Monday, Feb. 4, 2019): A1 & A10.
(Note: ellipses, and bracketed year, added.)
(Note: the online version of the story has the date Feb. 3, 2019, and has the title “‘GERMANY DISPATCH; Impose a Speed Limit on the Autobahn? Not So Fast, Many Germans Say.”)

Tariffs Evaded by Misclassification and Transshipment

(p. A1) One day in June [2018] , seven months after the U.S. imposed stiff tariffs on plywood from China, a wood importer in Oregon got a call from a supplier asking if he would like to get some Chinese plywood tariff-free.
How would that work, asked importer David Visse. The products carry an identification code that is checked by U.S. Customs agents.
“Don’t worry about it,” Mr. Visse says the supplier told him. The plywood would be stripped of its Chinese markings, and “we’ll ship it under some other code.”
Every product imported into the U.S. carries a 10-digit designation called an HTS code, of which there are 18,927 in all. Like a taxonomic version of Noah’s Ark, the code provides a common language to bridge disparate markets and identify products in all their variety.
In a world of increasing tariffs, the code has another function: evading those levies. The business of code-fudging is expanding in step with tariff increases, undermining U.S. efforts to shield American business from foreign competition, according to importers, customs officials, trade attorneys and shipping brokers.
As trade conflict grows between the two largest economies, these professionals say, code misclassification is starting to compete (p. A10) with transshipment–the rerouting of goods through third countries–as a way to duck tariffs.

For the full story, see:
Chuin-Wei Yap. “Trade Fight Spurs Tariff Dodges, With 18,927 Options.” The Wall Street Journal (Tuesday, Oct. 9, 2018): A1 & A10.
(Note: bracketed year added.)
(Note: the online version of the story has the date Oct. 8, 2018, and has the title “The U.S.-China Trade Battle Spawns a New Era of Tariff Dodges.”)

Bureaucratic FDA Delays Approvals for Fear “We’ll Be Toast”

(p. A21) Oct. 30 [2018] marks the 36th anniversary of the FDA’s approval of human insulin synthesized in genetically engineered bacteria, the first product made with “gene splicing” techniques. As the head of the FDA’s evaluation team, I had a front-row seat.
. . .
My team and I were ready to recommend approval after four months’ review. But when I took the packet to my supervisor, he said, “Four months? No way! If anything goes wrong with this product down the road, people will say we rushed it, and we’ll be toast.” That’s the bureaucratic mind-set. I don’t know how long he would have delayed it, but when he went on vacation a month later, I took the packet to his boss, the division director, who signed off.
That anecdote is an example of Milton Friedman’s observation that to understand the motivation of an individual or organization, you need to “follow the self-interest.” A large part of regulators’ self-interest lies in staying out of trouble. One way to do that, my supervisor understood, is not to approve in record time products that might experience unanticipated problems.

For the full commentary, see:
Miller, Henry I. “Follow the FDA’s Self-Interest; While approving a new form of insulin, I saw how regulators protect themselves.” The Wall Street Journal (Monday, Oct. 29, 2018: A21.
(Note: ellipsis, and bracketed year, added.)
(Note: the online version of the commentary has the date Oct. 28, 2018.)