The not so Golden State

Schumpeter's, of the Economist, comment that "It seems unlikely that California will ever challenge the likes of Texas or North Dakota at the top of business-friendliness tables" makes an assumption that such friendliness automatically creates a good economy.  California's capital gains gusher is the reflection of an economy far superior to that which just digs a hole the ground.  Besides, North Dakota's current oil and gas extraction success would have happened even if with regulations as onerous as Norway's.

Red States are the Economic Laggards

Larry Summers while speaking at Charlie Rose's round table last night after the President's State of Union Address mentioned that the Red States are the current economic laggards. It appears that where the Stupid Old Party is strongest is where the economy is weakest and ironically most dependent on Government spending.  On the other hand, California, the bluest of blue states  is booming with a projected surplus for this year.  I believe the GOP's economic message of lower taxes and government spending will be dangerously out of touch for them by 2016.

The Next Accident Awaits

Rafael Moure Eraso's editorial is heavy on Federal Regulation and Supervision for Chemical sites where the public is in great danger by either by explosion or contamination.  The problem comes from bureaucrats not having skin in the game and then easily swayed by local business interests pushing back. Unfortunately the pushback allows sloppy operators who put the public at risk and who then disappear when it is time to compensate victims.
The best case local solution is for municipalities to determine the public risk and require these operations to obtain a bond covering the full possible liability.  This would give an outside interest, the insurance company, the incentive to carefully audit the company they are bonding.  With capital reserves at risk these companies will eliminate the sloppy operators without the need for arcane expertise by government officials, something that the private sector can always outflank government with, and keep a pot of gold to compensate the public in case something does go wrong.

It's the economy stupid

In a previous blog I expressed the hope that the Egyptian General's ouster of President Morsi would be a similar event to that which happened in Chile forty years ago.  Hope in the sense that a military coup would hold the population in abeyance while a clean free market capitalist system similar to the what the "Chicago Boys" promoted in Chile would take root in Egypt.  Apparently this hope came from ignorance.  After reviewing a PBS Frontline hour on the recent turnover in Egypt it is apparent that the Army is the crony capitalist in charge and that there is no possibility of a change over to a subsidy free economy.
Abdul-Fattah el-Sisi, the future Egyptian President for life represents a stays quo that will devolve into a civil war.  The pox on both the house of the generals and the Islamist is that they are not answering the economic issue bedeviling Egypt.

Texas Woman is Taken off Life Support after Order

The Tea Party has no ideology rather it was a self generated protest against disparate powers. Today's headline clearly shows the incompatible ideological divide within when it tries to mix a Libertarian prescription against government regulators with an Evangelical Authoritarian one prescribing government "Life and Death" panels.

An Upbeat Brown Urges California to Save Surplus

This has got to kill Republicans who think of themselves as part of the managerial class.  Jerry Brown has a projected $4.2 billion surplus for the State of California and is even suggesting holding it in reserve for possible lean years ahead.  Once again Democrats are in charge of a booming economy that is providing a surplus to the Treasury.  It's going to get ugly for the G.O.P. when toward the end of Obama's term there will be a national surplus position similar to Clinton's last years.

Minimum wage - Keep it local not Federal

The current debate on the minimum wage is pointless on both sides.  This is a case where local completely dominates federal.  In New York City a minimum wage of $15 should be declared where in upstate NY a $12.50 could be declared.  Alabama could probably take a $3 decrease in the minimum wage to equalize it with the higher cost areas in the Northeast. Barack Obama can have all the press conferences he wants about the inequality of income, but a national one wage fits all solution is not.

Cut out the department of Education

I know, I know that I sound like a broken record about this issue, but the killer point of this Cato Presentation against the Department of Education is that Canada, the most bureaucratic of national governments that I know of, from commercial experience, does not have a department of education and their students do much better than those in the U. S. !!!!! It is quite simple.  Money spent for a federal bureaucrat to make rules so that state bureaucrats have to fund compliance workers to get the funds just creates a cluster fuck of bureaucrats diddling each other while teachers and students are left begging.

Not Just About Us

Thomas Friedman's editorial firmly fixes the struggle of Libertarians versus Authoritarians in the Middle East, but the battle is universal.

Ted Cruz's debate Style is Guilt by Association

Ted Cruz, the Tea Party darling and Senator from Texas, is foreign born! His father is part of Fidel Castro's subterranean Cuban Communist spy network grown up treacherously wrong for our country's well being. This sly fast talking Princeton elite can not become President because his allegiance is to the communist devil and he will lie, cheat and do anything to destroy the United States of America.

Weed - Been There Done That

David Brook's Editorial got the following comment from me.

Brook's experience with marijuana is very much like mine but as a libertarian I believe the individual has the inclination to act conservatively because it promotes a successful life. I don't have David's faith in the power of law to mold culture rather it is family, church, and community that instruct in this way. Law only only reflects values and does not instruct.