Fed’s Make Bad Loans, Blame The Banks

Tags

, ,

Image

An unfortunate side effect of federal student loan programs has been to inflate tuition at institutions of higher learning. Subsidized lending creates demand; higher tuition is the next step as schools ration the limited number of admissions they can offer (or attempt to defray the added costs of a higher number of enrollees). The ease with which borrowers can default is likely to exacerbate this cycle, and the administration has made it easier to do so. The federal government issues well over 90% of student loans for higher education in the U.S., and default rates are very high relative to private student loans. But a representative of the Consumer Financial Protection Bureau testified before a congressional committee today to recommend that “Congress consider putting in place more consumer protections in the private student-loan market….” Uh-huh. See Let’s Blame The Market for some background, and this article for a brief review of the hearing.

Politics Over Science At The IPCC

Tags

, ,

Image

Daniel B. Botkin “dismantles” the IPCC 2014 report on climate change in testimony before the House Committee on Science, Space and Technology. Well worth reading. A point he makes up front: “I have … been dismayed and disappointed in recent years that this subject has been converted into a political and ideological debate.”  

A brief bio: “Daniel B. Botkin, a world-renowned ecologist, is Professor (Emeritus), Department of Ecology, Evolution and Marine Biology, UC Santa Barbara, and President of The Center for The Study of The Environment, which provides independent, science-based analyses of complex environmental issues. The New York Times said his book, ‘Discordant Harmonies: A New Ecology for the 21st Century* is considered by many ecologists to be the classic text of the [environmental] movement.'”

Smartest Guy Strikes Again

Tags

, , , ,

Image

I shouldn’t lead with a sarcastic headline like that, but the prisoner trade executed by the White House is almost beyond belief. Almost, but this is the Obama White House, after all. Here’s The Hill’s latest report: Prisoner Swap Blows Up On WH. Even if you want Guantanamo closed, the trade is grotesque: behind Congress’s back, in violation of recent legislation, we have the release of five high-level Taliban, who themselves are very likely to have played a role in killing Americans, in exchange for a deserter who’s disappearance is strongly alleged to have cost the lives of several American soldiers. So far, it seems that everyone except Harry Reid is upset. Mad Magazine’s take is shown in the pic above, but Bergdahl is a sergeant, not a private. 

Can The VA Bureaucracy Be Reformed?

Tags

, , , ,

Image

Yuval Levin assesses the VA in the aftermath of the waiting list scandal, damning the fraud but also giving credit for good performance where credit is due. He debunks some recent defensive claims and apologia, especially concerning comparisons of the VA to the private health care system. Levin concludes that powerful political interests are likely to prevent any big structural changes at the VA. Bad news!

Megan McArdle thinks that fixing the VA bureaucracy is impossible short of a major upheaval, citing the kinds of experiences that have led to successful and unsuccessful corporate restructurings. “Over time, institutions develop a strong culture, a set of institutional practices, customs and norms that control what the organization is capable of doing. To see what I mean, imagine the staff of the New York Times producing Gawker — or the staff of Gawker Media producing the New York Times.” Only sweeping changes, which are often cruel to the old guard, can lead to a successful transition. This is unlikely at the VA.

Ma Jones Writer Fair To Koch Bros.

Tags

, , ,

Image

A book on the the Koch brothers by a senior editor of Mother Jones is “mandatory reading,” according to libertarian Nick Gillespie, for those “who care about politics” and the country’s cultural direction. By Gillespie’s telling, the book by Daniel Schulman is a fair treatment of the brothers and their history within the libertarian movement, which has championed smaller, less intrusive government and civil liberties (which is really saying the same thing). 

Gillespie’s review of the Schulman book is structured around a three-part history of Libertarianism, with Part III yet to unfold. Will Libertarians continue to alter the direction of the Republican Party? Or, as Ralph Nader has suggested, will they engage to a greater extent in “issue politics” with others outside the orbit of the major parties, forming coalitions that span right and left to achieve success. 

Gillespie: “Imagine, if you will, a country in which government at every level spends less money and does fewer things (but does them more effectively), doles out fewer perks to special interests (from Wall Street banks to sports teams to homeowners), regulates fewer things across the board, engages in fewer wars and less domestic spying, and embraces things such as gay marriage, drug legalization, and immigration. …Schulman reminds readers that while the Koch brothers remain staunch opponents of Obamacare and government spending, ‘they are at odds with the conservative mainstream’ and ‘were no fans of the Iraq war.’ As a young man, Charles was booted from the John Birch Society (which his father had helped to found) after publishing an anti-Vietnam War newspaper ad, and David told Politico of his support for gay marriage from the floor of the 2012 Republican National Convention. In the past year, the Charles Koch Institute cosponsored events with Buzzfeed about immigration reform (which angered many on the right) and with Mediaite about criminal justice reform.”

One reservation: Gillespie (and quite probably the book) exaggerates the Koch’s political contributions by linking them directly to the total contributions of organizations they back. In reality, the Koch’s direct contributions would rank them as no more than “mid-major players” in the world of campaign finance.

Government Failure: Quicksand For the Quixotic Left

Tags

, ,

Image

Progressives have always placed great faith in the ability of government technocrats to correct perceived social ills and do economic planning. This attitude inevitably leads them to drift into elitism. The naive Left, on the other hand, really don’t think much about how the government will do it, but both groups dream the impossible. That’s the general theme of the essay at the link, with more specific application to Obamacare. The opening paragraph is fun:

“They had a dream. For almost a hundred years now, the famed academic-artistic-and-punditry industrial complex has dreamed of a government run by their kind of people (i.e., nature’s noblemen), whose intelligence, wit, and refined sensibilities would bring us a heaven on earth. Their keen intellects would cut through the clutter as mere mortals’ couldn’t. They would lift up the wretched, oppressed by cruel forces. Above all, they would counter the greed of the merchants, the limited views of the business community, and the ignorance of the conformist and dim middle class.”

To quote Tyler Cowan, “The technocratic utopia is not on the menu.” Worse yet, by tilting ever-more government (and taxpayer) resources at windmills, leftist initiatives displace and discourage private activity, the real engine of economic growth. Prosperity tends to solve social ills quite effectively.

I confess that I’ve ceded too much La Mancha to the Left in this post. Perhaps the Libertarian Capitalist is better cast in the role of Don Quixote, and many of us are severe critics of subsidized wind power!

The VA and Government-Run Health Care

Tags

, , , , ,

Image

With Obamacare already on thin ice with the public, the problems at the VA are reinforcing the disadvantages of government-run health care. And if ACA proponents consoled themselves that the law was merely a step toward the “inevitable” single-payer system, the VA monopoly should not inspire hope. As noted elsewhere, one of the biggest costs of socialized medicine is always in the wait, a cost which is absent from official accounting reports.

The VA debacle is very bad news for the Obama Administration, not because it is their fault, though they have known about the fraudulent waiting lists for at least a year. Instead, for Obamacare, it is a public relations nightmare, as noted in this article: “Most Important Casualty of Veterans Affairs Scandal Could Be Obamacare.”

In another disturbing development, fit for an honored place in the pantheon of dumb government incentives, a new IRS ruling holds that employers who “dump” employees onto the federal exchanges will be fined up to $36,500 per year per employee! Granting the employee a raise to pay the premium will not gain the employer a dispensation. Only by firing the worker can they avoid the penalty. This is discussed here.

Here’s some commentary from the Onion that gets right to the heart of the VA problem: VA To Improve Veterans’ Health Care With New $500 Million Waiting Room. See the photo above for The Onion artist’s rendering of the new VA waiting room.

Keeping Politics Off The Proxy

Tags

, , ,

Image

Bravo to Groupon (or its voting shareholders) for approving a “content neutral” policy with respect to the customers it will serve, provided a customer is offering a legal product or service. The proposal came from an activist organization which purchased enough Groupon shares to qualify, under an SEC rule, to have the content policy placed on the company’s shareholder proxy statement. In so doing, they outmaneuvered PETA, which had hoped to propose a ban on circuses on a future proxy.

Stephen Bainbridge thinks the idea should be extended to prevent the kinds of political witch hunts we’ve witnessed lately: Let’s use Rule 14a-8 to fight the Purge of Conservatives

Big Brother Is Choking You!

Tags

, , ,

Image

The Obama/Holder DOJ is targeting legal businesses it regards as undesirable by pressuring banks to cut off their accounts under “Operation Choke Point,” as described by Glenn Reynolds at the link. Denying these businesses their sources of funds is of questionable legality to say the least. “It seems almost like some sort of conspiracy to deprive people of their civil rights.” Um, yes!

The DOJ’s criteria for targeting appear to be rather arbitrary. Reynolds quotes from the WaPo law blog: “The ability to destroy legal industries through secret actions to deprive them of banking services has obvious political consequences. . . . In principle, of course, the logic of Operation Choke Point could be extended to groups not currently targeted.” If you’re okay with seeing this sort of abuse targeted at porn performers, ammo dealers and payday loans, just wait until another party takes office. See how you like their list.

Luddites Demand Control Over Agricultural Technology

Tags

, , , ,

Image

It’s great to see a few anti-GMO writers and activists come to grips with the anti-science nonsense festering within their community. This article in Reason mentions a few of those positive developments. Almost every day I see an article posted on Facebook or elsewhere filled with scare tactics, fabrication, and poor scientific reasoning about the impact of GMOs. This is not necessarily or always malicious, though it often violates the norms of civilized debate, to say nothing of it’s potential human impact. I believe that opposition is a product of superstition, a misplaced faith in what GMO opponents falsely construe as “natural” or “sustainable.” 

Here is an example of reasonably balanced reportage, in this case, on the debate over the benefits of golden rice