Wednesday, January 9, 2013

An update on prohibition

A couple of days after Christmas, I published the one and only post that I intend to write about the tragedy in Newtown (and the surge in support for gun-control laws in its wake). You may have missed it if you were still out celebrating the holidays, so I'll summarize some of my points here.

In the post, I shared some of my skepticism with respect to the efficacy of bans on (or prohibition of) behaviors that many people find dangerous or distasteful. I wrote,
The last thing we need is to institute a counterproductive law that ironically makes our problem worse, not better. History has shown that when people have an intense desire to possess or to do something, they typically will find a way. People and corporations are incredibly resourceful when they need to be, which of course is why we now have corn in our Coca-Cola.
That's a viewpoint that I'd shared here on previous occasions, most notably in the wake of the tragedy at the Harvard-Yale game in New Haven in 2011. In that case, I wrote about the trend toward banning kegs at tailgates, and the at-best-uneven success that they'd had. As I wrote then,
Harvard first banned kegs at its tailgates in 2000, while I was a student there. The primary argument that I remember at the time—when keg bans were very much in vogue at Boston-area colleges—was that kegs were a "symbol of binge drinking", and that eliminating them would temper binge drinking. I called bullshit then, and I'm calling bullshit now. If you want a real "symbol of binge drinking", I'll show you a 9-dollar handle of bottom-shelf vodka. Popov was always a favorite; Aristocrat was a winner, too. 
The irony of kegs—an irony lost on most administrators—is that while they may indeed have looked like a symbol of binge drinking, they were in fact the administration's best friend. Beer, with its high water content and low alcohol content, is in fact the alcoholic beverage least likely to directly result in alcohol poisoning. The administration should have been doing all they could to encourage the drinking of beer, and to discourage the drinking of cheap wine and rot-gut liquor. 
Unsurprisingly to those who knew better, the keg ban was a disaster. In the first year of the keg ban (2002), alcohol poisoning cases skyrocketed, leading to calls from student newspapers to reverse the ban entirely for the next home Game. Some accommodations were indeed made, but not enough to turn back the clock entirely. From what I have learned and witnessed at recent Games in Cambridge, less drinking is happening on-site, and now much more drinking is happening off-site, away from the watchful eyes of Harvard and Boston Police.
I bring up the Harvard/Yale case because just this weekend, a similar mistake was made up in Green Bay during the Packers' Wild Card Playoff game against the Vikings. Concerned about the potential for binge drinking with an 8pm (7pm Central) kickoff time, the team decided to cut off all alcohol sales after halftime, hoping to control fan behavior.

Somewhat predictably, the plan backfired a bit, as resourceful Packer fans did what resourceful Packer fans do—they got loaded before they even entered the stadium, and many of them double-fisted drinks once they got there. A total of 21 fans ended up getting arrested on the premises, and I'd guess that a few more got arrested for drinking and driving on their way home.


While it's hard to know exactly how things would have gone without the attempted alcohol ban, the principle of the matter is still clear—if you ban something for which people have an intense desire, they will find a way to get around the ban, legally or not. In the case of gun control, gun sales have soared to record levels around the country in anticipation of new legislation. Even if the government does pass new laws, will it really be able to put that cat back in the bag and confiscate the weapons that were purchased ahead of time? Is there any reason to believe that a ban on any type of gun would be any more successful or productive than the long-standing ban on marijuana?

I continue to raise this issue because I refuse to believe that simply banning guns or certain types of guns will eradicate the mass murders that we've seen at schools and elsewhere in recent years. To actually tackle serious and complex issues, we need to attack the roots of the problem, not merely to take away the tools or "symbols" of those issues. We can get rid of all the guns we want, but there will still be people in this country (and the world) who are disillusioned, angry, or mentally unstable, and who want to do great harm to other people.

Until we try to figure out why these people exist—and what we can do as a society to temper their anger or mental illness—our gun control laws will be a sideshow at best, just like the alcohol bans at Harvard, Yale, and Lambeau Field. If you want to get rid of a behavior, you don't do it by getting rid of the tools. You do it by getting rid of the underlying mentality, and that's a much harder (and much more essential) task. And in the greatest country in the world, I'm sure we won't shy away from those difficult tasks, right?

Quote of the Week

We had two very serious contenders for Quote of the Week this week, and both of them are going to get a little bit of love here. The first one comes from Brazil, where a cat was caught trying to wriggle through prison gates while carrying a cell phone, drills, an earphone, batteries, and a phone charger. When discussing the case, prison guards shared that it was tough to get the cat to sell out his accomplices, because he wasn't talking. Shocking. Note to self: teach cat how to commit petty crimes.

But this week's winner comes from the great state of California, where a man is seemingly determined to prove that corporations are not, in fact, people (contrary to the beliefs of a certain electoral runner-up). From NBC News, it's your Quote of the Week.

This week's QUOTE OF THE WEEK

"When Jonathan Frieman of San Rafael, Calif., was pulled over for driving alone in the carpool lane, he argued to the officer that, actually, he did have a passenger. He waved his corporation papers at the officer, saying that corporations are people under California law... Frieman doesn't actually support this notion. For more than 10 years, Frieman says he had been trying to get pulled over to get ticketed and to take his argument to court—to challenge a judge to determine that corporations and people are not the same." 
                                                    - NBC News

At the heart of the issue is the Supreme Court's controversial 2010 decision in the "Citizens United" case, which essentially brought the issue of corporate personhood into the public eye and made it a hot-button political issue. It's still unclear exactly where the concept of corporation-as-person begins and ends, and this latest incident is clearly part of the process of drawing out those lines in the sand.


Unfortunately (and somewhat unsurprisingly), it doesn't look like Mr. Frieman's case is going anywhere. A judge has already ruled against him, and although an appeal is planned, it's unlikely to gain any traction. Nevertheless, kudos to the man for coming up with a creative way to draw attention to an issue that likely won't be going away any time soon. As far as Quotes of the Week go, this one is among my favorites.

[NBC News]

Friday, January 4, 2013

On government policies gone bad

In a post earlier today, I talked about unintended consequences and provided a link to this post from last year, in which I discussed the ramifications of "when regulatory bodies go wild". Unfortunately, John Cochrane (the self-dubbed "Grumpy Economist") shared a few similar examples from his own backyard of Chicago, showing that this regulatory madness is spreading, not abating. He writes,
If you travel from California or New York to Chicago, especially the beautiful but food-deserted campus of the University of Chicago, you will notice a striking absence: food trucks, which serve a bewlidering variety of tasty treats in other cities. 
Finally, last summer, our City council passed an ordinance allowing food trucks to cook food, along with a bewildering variety of restaurant-protecting restrictions, such as that they may not operate within 200 feet of a restaurant, they can't park for more than two hours, they must carry an on board GPS to verify position, and so on.   
Today, the Chicago Tribune reports on the success of this program:   
Of the 109 entrepreneurs who have applied for the Mobile Food Preparer licenses that allow onboard cooking, none has met the city's requirements... 
The process of getting a license is just too daunting, according to Rodriguez and Fuentes, who cite bad experiences with city bureaucracy, steep additional costs and the need to retrofit equipment among the reasons. 
"I think many food truck owners are hesitant to even pursue cooking onboard because of their haunting experience with working with the city," Rodriguez wrote in an email.  
(Kudos to Rodriguez for having the courage to write on the record, and good luck with her next application.)
....Chicago's code includes rules on ventilation and gas line equipment that "are meetable but extremely cumbersome and can raise the price of outfitting a truck by $10,000 to $20,000."...
...the additional ventilation equipment (with intake and exhaust fans similar to those in brick-and-mortar kitchens) also raises the height of trucks to 13 feet, making certain Chicago underpasses impassable. 
Aaron Crumbaugh, who operates the Wagyu Wagon ... said he is outfitting several trucks for franchisees in other cities whose processes for licensing are clear-cut.  "But here they don't know exactly what they want," he said. "Every time a truck comes in (health officials) say 'You need this' but then when you come back they say 'No you need that' and then the next time they find something else."
The Tribune did a much more balanced job of including quotes from city employees defending themselves. I'm a blog so I don't have to be balanced. The numbers speak for themselves. Zero. 
Yeah. Cochrane also shares a story from the Hyde Park Herald that discusses the ridiculous red tape that is currently preventing a South Side movie theater from opening on time. As Cochrane concludes, "Chicago, like the US, is broke. It says it wants more businesses. Until actual businesses try to open. Really, if we can't get food trucks and movie theater regulations to work, how do Dodd Frank and the EPA have a hope?"

Well said, John. The fact of the matter is that most politicians don't have a clue about what it actually takes to promote economic growth, even while they recognize that it's the absolute only way out of our current budgetary morass, given those same politicians' utter unwillingness to do anything meaningful to address it.

As I've written here before, if we really want sustainable economic growth, then we need to be incentivizing innovation and entrepreneurship, not stifling it with overly onerous regulations that turn a simple task like starting a food truck business into a Sisyphean struggle. But, of course, we seem to be consistently doing the opposite, just about everywhere we look.


We pass regulations on top of regulations from coast to coast, and we issue overly broad patents that protect the large companies at the expense of the small and innovative start-ups. We pass bizarre "taxpayer relief" bills without reading them, rubber-stamping a plethora of corporate kickbacks and subsidies in the process when nobody's looking. And we require that ever more trivial jobs require credentials and continuing education, increasing the cost of pursuing just about any career path we may choose (I'll have more on that topic next week).

Absolutely none of these government policies does anything but slow economic growth and the pace of innovation, and they must all therefore be considered counter-productive with respect to American prosperity. As Mr. Cochrane so eloquently wrote, if we can't get a food truck to start up in Chicago without violating some arcane city code, how can anybody ever do anything of any value in this country without breaking the law? I wonder.

[Grumpy Economist]

Clip of the Week (Gil Santos edition)

I'm going to go in a totally different direction with this week's Clip of the Week, using it as an opportunity to honor one of my favorite Boston sports figures of the past 20 years (no, not Tim Wakefield, we already took care of that one).

For those of you who don't share my Boston roots (or rooting interests), you'll probably move right along and ignore this post, and that's fine. I don't blame you. But for anyone who grew up watching the Patriots transform themselves from a laughing stock into a model franchise—something I still can't believe happened, but for which I give Drew Bledsoe and Bill Parcells a ton of credit, not to mention Bob Kraft—the unavoidable soundtrack of a million Sundays was the tandem of Gil Santos and Gino Cappelletti, one of the greatest radio play-by-play pairings I've ever heard. Those two made growing up as the son of a Boston sportswriter (and thereby inheriting my Patriots fandom) significantly more enjoyable, and I can't overstate the joy I received from listening to them.

Gino retired at the beginning of this season, and Gil will retire at the conclusion of this year's playoffs. This past Sunday, during the Patriots' last regular season game, the two were re-united for one final quarter together, and the CBS national broadcast even joined the pair for a live cut-in. It was a fitting send-off for a duo that teamed up to call more than 500 games over 28 seasons, and I wanted to take a minute to pay tribute to the men who I so often listened to while watching the game on TV with the audio on mute (something I know was commonplace among Patriots fans in the good old days).

Gil was always a fair and balanced announcer, something that I think is in short supply these days. When the Patriots deserved his scorn, he was quick to deliver it—of course, those instances became increasingly less frequent as the years wore on. But at the end of the day, Gil was a Patriots fan like the rest of us in the Boston area, and he let it show for one day at least, at Super Bowl XXXVI in New Orleans.


For those who don't remember, the Patriots pulled off a resounding upset that day, taking down the heavily-favored St. Louis Rams (led by Marshall Faulk and Kurt Warner) on a last-second field goal by Adam Vinatieri. It was the first title in franchise history, and Gil's call of the final kick can still be heard today on various highlight packages and retrospectives.

To the greatest play-by-play announcer I'd ever hope to hear, this is my official "thank you" for decades of listening pleasure. Things won't be the same without you, and I'll honor you with this week's Clip of the Week—a compilation of clips from the radio call of that famous day in the Superdome eleven years ago. Here's hoping we can send you off in proper fashion a few weeks from now in the very same venue. Thanks for everything, Gil.

The NCAA and unintended consequences

Earlier today, my attention was drawn to a tweet from John Infante, a former NCAA compliance officer who writes the Bylaw Blog for Athnet. I've written a fair amount about the NCAA and its relationship with "student-athletes" before, so I thought this latest tidbit was worth sharing. In an article teased in his own tweet, Infante writes:
In the wake of last summer’s highly publicized transfer battles (Ed. Note: like these), the news that the NCAA was looking at changing the transfer rules was refreshing. What appeared to be an inconsistent standard for waivers along with student-athletes needed permission to contact other schools lead to a popular backlash against the NCAA’s transfer regulations, a sentiment that was echoed by NCAA President Mark Emmert... 
There is no formal proposal yet, but the Leadership Council published a set of principles for updated transfer rules that make it easy to see what those specific rules might be.
One of those principles is the topic of this post (and of Infante's tweet), the principle regarding a GPA contingency:


In general, I think this principle is a clear step in the right direction, as it restores some rights to student-athletes who, through no fault of their own, are left in a situation that is dramatically different from the one they entered (like a coach leaving for the NFL, or dying, or a program being put on probation for violations that occurred before the player arrived, etc.). It also hypothetically provides these student-athletes with an incentive to actually go to class, which is definitely a positive for everyone involved.

However, as usual, it wouldn't be a policy if there weren't some unintended consequences to consider. In this case, I see a great problem with setting a GPA threshold that doesn't (and can't) vary based on the quality of the institution. Are we to pretend that a 2.6 GPA is as easily attainable at Stanford or Notre Dame as it is at San Jose State or Arizona? Since we know that it isn't, doesn't this proposal effectively penalize those students who choose to go to schools with rigorous academics? And by extension, isn't it also penalizing those schools for not watering down their academic programs to benefit the student-athletes? If so, is that really what we want our NCAA policies to be doing?


As I wrote in a Twitter response to this news, encouraging schools to downgrade the rigor of their academic programs is a poor long-term strategy. Unfortunately, that's arguably what this policy would do, simply because of the incentives that it creates for student-athletes when they are considering schools. If an athlete with a 2.6 GPA has more rights than an athlete without one, then every kid should do everything in his power to make sure that he can attain a 2.6 GPA.

In an ideal world, that would mean that the athletes in question would all buckle down and work harder in school, and we'd end up with a world full of student-athletes with sparkling collegiate transcripts. But over here in the real world, all it does is encourage the kids to go to schools where they can get a 2.6 just by showing up, thereby immediately receiving more rights as an athlete.

Is that really what we want? Do we actually want to steer athletes away from the top academic schools, simply because they're likely to have more rights at the lower-tier ones? I don't think so, and I hardly think that's the idea at the core of this proposal. But unintended consequences are consequences nonetheless, and they require careful consideration by policy-makers at all levels of governance.

This winter, we have seen several top-rated schools play in meaningful football games—from Northwestern gaining its first bowl win since 1949 to Stanford winning the Rose Bowl for the first time in 40 years to Notre Dame playing for the national title for the first time in what seems like forever. Hell, even Vanderbilt won itself a bowl game, in a bowl season where most SEC teams can't seem to get out of their own way.

Against all odds, teams are finding a way to excel both in athletics and in academics, and yet the NCAA wants to pass a rule that would take us in the opposite direction, even if unintentionally. That would be a terrible shame, and I encourage the NCAA to reconsider this proposal, which has good intentions but potentially dire consequences.

[Athnet]

Thursday, January 3, 2013

Quote of the Week (Fiscal Cliff edition)

I don't have a lot to say about the recent "resolution" to the fiscal cliff, largely because it resolved nothing and is, once again, merely a prelude to the next "fiscal crisis" that is mere weeks away. However, I thought that Tyler Cowen of the Marginal Revolution blog shared the most succinct (and sobering) summary of the entire fiscal cliff experience. From New York Times columnist Ross Douthat, it's your Quote of the Week.

This week's QUOTE OF THE WEEK

"If a newly re-elected Democratic president can’t muster the political will and capital required to do something as straightforward and relatively popular as raising taxes on the tiny fraction Americans making over $250,000 when those same taxes are scheduled to go up already, then how can Democrats ever expect to push taxes upward to levels that would make our existing public progams sustainable for the long run?"
                                                     - Ross Douthat, New York Times

Indeed. Which of course just shows us that there is, ultimately, zero political will to address the problems about which I've spilled so much ink (okay, pixels) on this blog. If we can't raise revenue, then we can't fund programs, period, end of story. It's just a matter of when we choose to recognize this fact (or when the markets decide to recognize it for us, as is usually the reality when it happens elsewhere, and is almost assured given that politicians are already setting up to capitulate on the next crisis).

All of this means that charts like this one aren't likely to change any time soon, regardless of what some people might want to tell you:

Source: Bianco Research via Barry Ritholtz
But hey, at least the markets liked the deal, that must be good news, right? Uh, maybe. Or maybe this thing was just like every other piece of legislation out of Washington lately—hastily thrown together, not well-understood even by those who voted on it because they didn't bother to read it, and loaded up with all sorts of kickbacks and favors to the corporate elite that don't belong in there to begin with.

Business as usual in Washington, right? Good grief.

[New York Times]
(h/t Marginal Revolution)

Wednesday, January 2, 2013

The oldest man in history

In case you missed it last week (as I did), the world now has a new oldest man in recorded history. The record for oldest person, however, is still a long ways off.
Jiroemon Kimura, a 115-year-old Japanese man born when Queen Victoria still reigned over the British Empire, became the oldest man in recorded history today, Guinness World Records said. 
Kimura, of Kyotango, western Japan, was born April 19, 1897, in the 30th year of the Meiji era, according to London-based Guinness. That makes him 115 years and 253 days as of today, breaking the longevity record for men held by Christian Mortensen of California, who died in 1998 at the age of 115 years and 252 days. The oldest woman in recorded history, Frenchwoman Jeanne Calment, died in 1997 at the age of 122.
Of course, it wouldn't be my blog if I didn't also try to throw some sort of a lesson into this post, so here it is, from the same article:
Kimura is among 22 Japanese people on a list of the world’s 64 oldest people compiled by the Los Angeles-based Gerontology Research Group, highlighting the challenges facing Japan as its population ages. A combination of the world’s highest life expectancy, the world’s second-largest public debt and a below- replacement birthrate is straining the nation’s pension system, prompting the government to curb payouts, raise contributions and delay the age of eligibility.
And yes, in case you were wondering, we in the United States should be paying attention to Japan's lessons, as I've enumerated here before.

But for today, I'll mostly leave those lessons alone, just to marvel at what it means to be 115 years old. This guy was born in 1897 (the same year as Amelia Earhart, William Faulkner, Elijah Muhammad, and Joseph Goebbels), two weeks after William McKinley was inaugurated as President of the United States. He's six months older than the oldest underground subway in North America (Boston), and ten years older than Katharine Hepburn and Orville Redenbacher.

He was 21 when World War I ended, 44 when the Japanese bombed Pearl Harbor, and a spry 94 when Al Gore invented the internet. If you think things are different now than when you were growing up, try being Jiroemon for a couple of days—he remembers when the airplane was invented. I only remember when it was actually enjoyable to fly in one.

[Bloomberg]