Category Archives: Business

The game is rigged and you can always win.

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A few months ago, I wrote a rather depressing essay based on Nobel Laureate, Kenneth Arrow’s work, and the paradox of de Condorcet. It is mathematically shown that you can not make a fair election, even if you wanted to, and no one in power wants to. The game is rigged.

To make up for that insight, I’d like to show from the work of John Forbes Nash (A Beautiful Mind) that you, personally, can win, basically all the time, if you can get someone, anyone to coöperate by trade. Let’s begin with an example in Nash’s first major paper, “The Bargaining Problem,” the one Nash is working on in the movie— read the whole paper here.  Consider two people, each with a few durable good items. Person A has a bat, a ball, a book, a whip, and a box. Person B has a pen, a toy, a knife, and a hat. Since each item is worth a different amount (has a different utility) to the owner and to the other person, there are almost always sets of trades that benefit both. In our world, where there are many people and everyone has many durable items, it is inconceivable that there are not many trades a person can make to benefit him/her while benefiting the trade partner.

Figure 3, from Nash’s, “The bargaining problem.” U1 and U2 are the utilities of the items to the two people, and O is the current state. You can improve by barter so long as your current state is not on the boundary. The parallel lines are places one could reach if money trades as well.

Good trades are even more likely when money is involved or non-durables. A person may trade his or her time for money, that is work, and any half-normal person will have enough skill to be of some value to someone. If one trades some money for durables, particularly tools, one can become rich (slowly). If one trades this work for items to make them happy (food, entertainment) they can become happier. There are just two key skills: knowing what something is worth to you, and being willing to trade. It’s not that easy for most folks to figure out what their old sofa means to them, but it’s gotten easier with garage sales and eBay.

Let us now move to the problem of elections, e.g. in this year 2016. There are few people who find the person of their dreams running for president this year. The system has fundamental flaws, and has delivered two thoroughly disliked individuals. But you can vote for a generally positive result by splitting your ticket. American society generally elects a mix of Democrats and Republicans. This mix either delivers the outcome we want, or we vote out some of the bums. Americans are generally happy with the result.

A Stamp act stamp. The British used these to tax every transaction, making it impossible for the ordinary person to benefit by small trade.

A Stamp act stamp,. Used to tax every transaction, the British made it impossible for ordinary people to benefit by small trades.

The mix does not have to involve different people, it can involve different periods of time. One can elect a Democrat president this year, and an Republican four years later. Or take the problem of time management for college students. If a student had to make a one time choice, they’d discover that you can’t have good grades, good friends, and sleep. Instead, most college students figure out you can have everything if you do one or two of these now, and switch when you get bored. And this may be the most important thing they learn.

This is my solution to Israel’s classic identity dilemma. David Ben-Gurion famously noted that Israel had the following three choices: they could be a nation of Jews living in the land of Israel, but not democratic. They could be a democratic nation in the land of Israel, but not Jewish; or they could be Jewish and democratic, but not (for the most part) in Israel. This sounds horrible until you realize that Israel can elect politicians to deliver different pairs of the options, and can have different cities that cater to thee options too. Because Jerusalem does not have to look like Tel Aviv, Israel can achieve a balance that’s better than any pure solution.

Robert E. Buxbaum, July 17-22, 2016. Balance is all, and pure solutions are a doom. I’m running for water commissioner.

A plague of combined sewers

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The major typhoid and cholera epidemics of the US, and the plague of the Al Qaeda camps, 2009 are understood to have been caused by bad sewage, in particular by the practice of combining sanitary + storm sewage. Medieval plagues too may have been caused by combined sewers.

Combined sewer system showing an rain-induced overflow, a CSO.

A combined sewer system showing an rain-induced overflow, a CSO.

A combined system is shows at right. Part of the problem is that the outfall is hard to contain, so they tend to spew sewage into the lakes and drinking water as shown. They are also more prone to back up during rain storms; separated systems can back up too, but far less often. When combined sewers back up, turds and other infected material flows into home basements. In a previous post, “follow the feces,” I showed the path that Oakland county’s combined sewers outfalls take when they drain (every other week) into Lake St. Clair just upstream of the water intake, and I detailed why, every few years we back up sewage into basements. I’d like to now talk a bit more about financial cost and what I’d like to do.

The combined sewer system shown above includes a small weir dam. During dry periods and small rain events, the dam keeps the sewage from the lake by redirecting it to the treatment plant. This protects the lakes so that sometimes the beaches are open, but there’s an operation cost: we end up treating a lot of rain water as if it were sewage. During larger rains, the dam overflows. This protects our basements (usually) but it does so at the expense of the drinking water, and of the water in Lake St. Clair and Lake Erie.

As a way to protect our lakes somewhat Oakland county has added a retention facility, the George W. Kuhn. This facility includes the weir shown above and a huge tank for sewage overflows. During dry periods, the weir holds back the flow of toilet and sink water so that it will flow down the pipe (collector) to the treatment plant in Detroit, and so it does not flow into the lake. Treatment in Detroit is expensive, but nonpolluting. During somewhat bigger rains the weir overflows to the holding tank. It is only during yet-bigger rains (currently every other week) that the mixture of rain and toilet sewage overwhelms the tank and is sent to the river and lake. The mess this makes of the lake is shown in the video following. During really big rains, like those of August 2014, the mixed sewage backs up in the pipes, and flows back into our basements. With either discharge, we run the risk of plague: Typhoid, Cholera, Legionnaires…

Some water-borne plagues are worse than others. With some plagues, you can have a carrier, a person who can infect many others without becoming deathly sick him or herself. Typhoid Mary was a famous carrier of the 1920s. She infected (and killed) hundreds in New York without herself becoming sick. A more recent drinking water plague, showed up in Milwaukee 25 years ago. Some 400,000 people were infected, and 70 or so died. Milwaukee disinfected its drinking water with chlorine and a bacteria that entered the system was chlorine tolerant. Milwaukee switched to ozone disinfection but Detroit still uses chlorine.

Combined sewers require much larger sewage treatment plants than you’d need for just sanitary sewage. Detroit’s plant is huge and its size will need to be doubled to meet new, stricter standards unless we bite the bullet and separate our sewage. Our current system doesn’t usually meet even the current, lower standards. The plant overflows and operation cost are high since you have to treat lots of rainwater. These operation costs will keep getter higher as pollution laws get tougher.

In Oakland county, MI we’ve started to build more and more big tanks to hold back and redirect the water so it doesn’t overwhelm the sewage plants. The GWK tank occupies 1 1/2 miles by about 100 feet beneath a golf course. It’s overwhelmed every other week. Just think of the tank you’d need to hold the water from 4″ of rain on 900 square mile area (Oakland county is 900 square miles). Oakland’s politicians seem happy to spend money on these tanks because it creates jobs and graft and because it suggests that something is being done. They blame politics when rain overwhelms the tank. I say it’s time to end the farce and separate our sewers. My preference is to separate the sewers through the use of French drains or bio-swales, and through the use of weir dams. I’m running for drain commissioner. Here’s something I’ve written on the chemistry of sewage, and on the joy of dams.

Dr. Robert E. Buxbaum, July 1-Sept 16, 2016.

Puerto Rico’s minimum wage and statehood

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Puerto Rico is in deep trouble and it’s getting worse. Unemployment is at 12%, double the next worst state or territory (Alaska). Tourism is down and poverty is at 41%. US tourists have begun going elsewhere where prices are lower: Bermuda, Haiti, Jamaica, and Cuba. The island is effectively bankrupt and would have filed for bankruptcy last year except that, as a US territory, they legally can’t. But neither can they pay their bills. The territory will go into default in 2 weeks, on July 1, 2016 unless congress creates a new funding mechanism for them. Statehood would allow Puerto Rico to go bankrupt, but there is no way for statehood to be achieved by July 1. Nor will bankruptcy help them, long term.

Puerto Rico's minimum wage is vastly too high; here it is compared with other US states.

Puerto Rico’s minimum wage is vastly too high for its median wage. From Preston Cooper, Economics21.

It is worthwhile to ask why Puerto Rico is in such bad shape. Why are they worse off than Guam, for example; Guam is far more isolated. Puerto Rico is run poorly, but it’s no worse than Guam or  Illinois. One problem particular to Puerto Rico is that their minimum wage is way too high relative to the median wage.

Because of the climate, living expense are low in Puerto Rico, but Puerto Rico’s economy is mostly tourism. It competes for tourist dollars with lower-wage Caribbean countries, Jamaica, Haiti, and Cuba. Neither Alaska nor Guam must compete this way, with a nearby, low cost alternative. Puerto Rico could compete better if they could lower their minimum wage. Tourism would be more attractive, and the government would not have to spend as much either for minimal-skill workers.

With a lower minimum wage, more Puerto Ricans would be able to find jobs, and the government would likely manage to balance its books. But Puerto Rico is part of the US, and we set the minimum wage. I think the federal government should grant them an exemption. Without one, there is no obvious way for Puerto Rico to pay its bills.

Four years ago, in my first blog post, I suggested that Detroit should lower its $15/hour ‘living wage‘, a wage rate that unduly burdened the city budget, and added to Detroit’s rampant unemployment and corruption. A year later, the city dropped it as part of bankruptcy, and saw significant improvements. I’m not alone in suggesting a lower minimum wage. It’s better than state-hood and immediate bankruptcy.

Robert Buxbaum, June 19, 2016.

Skilled labor isn’t cheap; cheap labor isn’t skilled

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Popular emblem for hard hats in the USA. The original quote is attributed to Sailor Jack, a famous tattoo artist.

Popular emblem for hard hats in the USA. The original quote is attributed to Sailor Jack, a famous tattoo artist.

The title for this post is a popular emblem on US hard-hats and was the motto of a famous, WWII era tattoo artist. It’s also at the heart of a divide between the skilled trade unions and the labor movement. Skilled laborers expect to be paid more than unskilled, while the labor movement tends to push for uniform pay, with distinctions based only on seniority or courses taken. Managers and customers prefer skilled work to not, and usually don’t mind paying the skilled worker more. It’s understand that, if the skilled workers are not rewarded, they’ll go elsewhere or quit. Management too tends to understand that the skilled laborer is effectively a manager, often more responsible for success than the manager himself/herself. In this environment, a skilled trade union is an advantage as they tend to keep out the incompetent, the addict, and the gold-brick, if only to raise the stature of the rest. They can also help by taking some burden of complaints. In the late 1800s, it was not uncommon for an owner to push for a trade union, like the Knights of Labor, or the AFL, but usually just for skilled trades for the reasons above.

An unskilled labor union, like the CIO is a different animal. The unskilled laborer would like the salary and respect of the skilled laborer without having to develop the hard-to-replace skills. Management objects to this, as do the skilled workers. A major problem with unions, as best I can tell, is a socialist bent that combines the skilled and unskilled worker to the disadvantage of the skilled trades.

Not all unionists harbor fondness for welfare or socialism.

Also popular. Few workers harbor a fondness for welfare or socialism. Mostly they want to keep their earnings.

Labor union management generally prefer a high minimum wage — and often favor high taxes too as a way of curing societal ills. This causes friction, both in wage-negotiation and in political party support. Skilled workers tend to want to be paid more than unskilled, and generally want to keep the majority of their earnings. As a result, skilled laborers tend to vote Republican. Unskilled workers tend to vote for Democrats. Generally, there are more unskilled workers than skilled, and the union management tends to favor Democrats. Many union leaders have gone further — to international socialism. They push for high welfare payments with no work requirement, and for aid the foreign socialist poor. The hard-hats themselves tend to be less than pleased with these socialist pushes.

During the hippie-60’s and 70’s the union split turned violent. It was not uncommon for unionized police and construction workers to hurl insults and bricks on the anti-war leftists and non-working students and welfare farmers. Teamster boss Jimmy Hoffa, supported Nixon, Vietnam, and the idea that his truckers should keep their high wages at the expense of unskilled. Rival teamster boss, Frank Fitzsimmons pushed for socialist unity with the non-working of the world, a split that broke the union and cost Hoffa his life in 1975. Eventually the split became moot. The war ended, US factories closed and jobs moved overseas, and even the unskilled labor and poor lost.

Skilled workers are, essentially managers, and like to be treated that way.

Skilled workers are, essentially managers, and like to be treated that way.

The Americans with Disability Act is another part of the union split. The act was designed to protect the sick, pregnant and older worker, but has come to protect the lazy, nasty, and slipshod, as well as the drug addict and thief. Any worker who’s censored for these unfortunate behaviors can claim a disability. If the claim is upheld the law requires that the company provide for them. The legal status of the union demands that the union support the worker in his or her claim of disability. In this, the union becomes obligated to the worker, and not to the employer, customer, or craft — something else that skilled workers tend to object to. Skilled workers do not like having their neighbors show them high-priced, badly made products from their assembly line. Citing the ADA doesn’t help, nor does it help to know that their union dues support Democrats, welfare, and legislation that takes money from the pocket of any one who takes pride in good work. We’ll have to hope this split in the union pans out better than in 1860.

Robert Buxbaum, June 5, 2016. I’m running for water commissioner. I’d like to see my skilled sewer workers rewarded for their work and skill. Currently experienced workers get only $18/hour and that’s too little for their expertise. If they took off, they’d be irreplaceable, and the city would likely fall to typhus or the plague.

Of horses, trucks, and horsepower

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Horsepower is a unit of work production rate, about 3/4 of a kW, for those who like standard international units. It is also the pulling force of a work horse of the 1700s times its speed when pulling, perhaps 5 mph. A standard truck will develop 200 hp but only while accelerating at about 60 mph; to develop those same 200 horsepower at 1 mph it would have to pull with 200 times more force. That is impossible for a truck, both because of traction limitations and because of the nature of a gasoline engine when attached to typical gearing. At low speed, 1 mph, a truck will barely develop as much force as 4-5 horses, suggesting a work output about 1 hp. This is especially true for a truck pulling in the snow, as shown in the video below.

Here, a semi-truck (of milk) is being pulled out of the snow by a team of horses going perhaps 1 mph. The majority of work is done by the horse on the left — the others seem to be slipping. Assuming that the four horses manage to develop 1 hp each (4 hp total), the pull force is four times a truck at 1 mph, or as great as a 200 hp truck accelerating at 50 mph. That’s why the horse succeed where the truck does not.

You will find other videos on the internet showing that horses produce more force or hp than trucks or tractors. They always do so at low speeds. A horse will also beat a truck or car in acceleration to about the 1/4 mile mark. That’s because acceleration =force /mass: a = F/m.

I should mention that DC electric motors also, like horses, produce their highest force at very low speeds, but unlike horses, their efficiency is very low there. Electric engine efficiency is high only at speeds quite near the maximum and their horse-power output (force times speed) is at a maximum at about 1/2 the maximum speed.

Steam engines (I like steam engines) produce about the same force at all speeds, and more-or-less the same efficiency at all speeds. That efficiency is typically only about 20%, about that of a horse, but the feed cost and maintenance cost is far lower. A steam engine will eat coal, while a horse must eat oats.

March 4, 2016. Robert Buxbaum, an engineer, runs REB Research, and is running for water commissioner.

The Parker house waitstaff hates you

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There are many offensive Americans, but perhaps the most offensive must be those who eat at the famous Parker House restaurant, Boston; see photo taken by a friend of mine, historian Jim Wald. Parker House is the home of Parker House rolls and Boston Cream Pie. It’s also famous for its customers: e.g. the Saturday club of Emerson, Longfellow, Holmes, Agassiz, Dana, and Charles Dickens (Dickens lived in the Parker Hotel for two years). But more remarkable still is that a good number of the staff have so hated their customers that they went off and became revolutionary enemies of all things capitalist and American. And it only took a few months working at the Parker House.

The Parker House restaurant, Dec. 2015, photo by jim Wald, perhaps showing the next world leader.

Among Parker House employees we find Malcolm X, he worked as a busboy under his original, given name: Malcolm Little. We also find Ho Chi Minh, a pseudonym taken — it means, the enlightened one or the one who will enlighten (strangely enough, Genghis Kahn also means the enlightened one — in Mongol) was a pastry chef. he arrived in Boston as a ships cook, and worked in the hotel as Nguyen Cung. After Boston, he moved to Paris where he again made cakes and pies but changed his name to Nguyen O Phap (Nguyen who hates the French). Eventually, he and Malcolm X revolted against America and managed to turn the tables, as it were, on their customers.

Why do Parker House workers go off this way. Perhaps it’s because the hotel tries to hire hard-working, intelligent workers. You’ll notice, in the photo above that the waiters look at least as sharp as the customers and more physically fit. Beyond this, I suspect that the waitstaff are constantly exposed to socialist discussions from the customers. They are then sent off for coffee, or ignored, or perhaps insulted or groped, or not tipped. The Hotel seems to attract liberal libertarians — it was a favorite spot for John F. Kennedy.

My guess is that Malcolm X and Ho Chi Minh became socialist revolutionaries because of what they experienced from the customers at Parker House. So what can you do if you eat at Parker House, or any fancy restaurant? I think it pays to tip. Don’t do it in a way that makes your server feel like a beggar. It would help to chat too, I think. It’s important if your waiter is homicidal — or if your waiter becomes famous some day, or writes a book, or becomes a world dictator. You’d like to get a positive mention in that book, or have a positive story to tell — “I gave Genghis his first $10 bill…” And tipping is important so he/she doesn’t hate you. I’m given to understand that one main reasons people hate Satan so much is you can serve him, but he never tips.

Robert Buxbaum, February 29, 2016, updated August 24, 2017. I run REB Research, and I’m running for drain commissioner. Vote for me.

Michigan, an emerging economy

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Between 2009 and 2014, Michigan’s per-capita GDP grew at 14% per year, an amazing growth rate similar to that of an emerging, tiger economies. According tot the Bureau of Economic analysis, the only US states that grew faster were Texas and North Dakota, and these oil states were hit badly in the current year 2015-16.
GDPGROWTH

 

Unfortunately, Michigan remains relatively poor despite it’s growth. Its per-capita GDP, $20,263 (2016), lags behind even perennial backwaters like Vermont, Oklahoma, and Missouri. The wealth gap in Michigan is growing, as in an emerging economy, and the cities, e.g. Detroit and Flint, are known for high murder rates, and a large-scale bankruptcy.

Michigan population change, Detroit Free Press

Michigan population change, Detroit Free Press

Then there’s pollution and flooding. Our beaches close for e-coli after every major rain, and we recently found that the drinking water in Flint was contaminated with lead; it seems other MI cities have lead problems too. Add to this, that we’ve  had major floods, a result of mismanagement, cronyism, and rampant growth, and Michigan keeps looking more and more like Vietnam, China, and India.

Everything here isn’t third world, though. We replaced our hapless, ex-governor Granholm with a relatively competent (in my opinion) nerd, Rick Snyder. We’ve jailed the of worst crooks, e.g. Detroit’s walking-crime-wave mayor, Kwame Kilpatrick, and his father, “Pay-for-play”, and the corrupt city manager, Bobby Ferguson. Under the previous administration, the state population shrank. It is now growing slowly.

Flood of 2014; the view at 696 and Mound rd. It's just incompetence.

Flood of 2014; the view at 696 and Mound rd. It’s part incompetence and part growth.

 

We passed a needed roads bill. Taxes are high, but not as bad as Illinois, and even Detroit is beginning to look good, at least in the center city. Industry is coming back, and so is Michigan real-estate. Here are some of my ideas going forward: pay our teachers well, and don’t imprison for so long. Some ideas to keep us on the upswing.

Robert Buxbaum, February 23, 2016. I’m running to be the Oakland county water commissioner, by the way.

Advanced windmills + 20 years = field of junk

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Everything wears out. This can be a comforting or a depressing thought, but it’s a truth. No old mistake, however egregious, lasts forever, and no bold advance avoids decay. At best, last year’s advance will pay for itself with interest, will wear out gracefully, and will be recalled fondly by aficionados after it’s replaced by something better. Water wheels, and early steamships are examples of this type of bold advance. Unfortunately, it is often the case that last years innovation turns out to be no advance at all: a technological dead end that never pays for itself, and becomes a dangerous, rotting eyesore or worse, a laughing-stock blot or a blot on the ecology. Our first two generations of advanced windmill farms seem to match this description; perhaps the next generation will be better, but here are some thoughts on lessons learned from the existing fields of rotting windmills.

The ancient design windmills of Don Quixote’s Spain (1300?) were boons. Farmers used them to grind grain or cut wood, and to to pump drinking water. Holland used similar early windmills to drain their land. So several American presidents came to believe advanced design windmills would be similar boons if used for continuous electric power generation. It didn’t work, and many of the problems could have been seen at the start. While the farmer didn’t care when his water was pumped, or when his wood is cut. When you’re generating electricity, there is a need to match the power demand exactly. Whenever the customer turns on the switch, electricity is expected to flow at the appropriate amount of Wattage; at other times any power generated is a waste or a nuisance. But electric generator-windmills do not produce power on demand, they produce power when the wind blows. The mismatch of wind and electric demand has bedeviled windmill reliability and economic return. It will likely continue to do so until we find a good way to store electric power cheaply. Until then windmills will not be able to produce electricity at competitive prices to compete with cheap coal and nuclear power.

There is also the problem of repair. The old windmills of Holland still turn a century later because they were relatively robust, and relatively easy to maintain. The modern windmills of the US stand much taller and move much faster. They are often hit, and damaged by lightning strikes, and their fast-turning gears tend to wear out fast, Once damaged, modern windmills are not readily fix, They are made of advanced fiberglass materials spun on special molds. Worse yet, they are constructed in mountainous, remote locations. Such blades can not be replaces by amateurs, and even the gears are not readily accessed to repair. More than half of the great power-windmills built in the last 35 years have worn out and are unlikely to ever get repair. Driving past, you see fields of them sitting idle; the ones still turning look like they will wear out soon. The companies that made and installed these behemoth are mostly out of the business, so there is no-one there to take them down even if there were an economic incentive to do so. Even where a company is found to fix the old windmills, no one would as there is not sufficient economic return — the electricity is worth less than the repair.

Komoa Wind Farm in Kona, Hawaii June 2010; Friends of Grand Ronde Valley.

Komoa Wind Farm in Kona, Hawaii, June 2010; A field of modern design wind-turbines already ruined by wear, wind, and lightning. — Friends of Grand Ronde Valley.

A single rusting windmill would be bad enough, but modern wind turbines were put up as wind farms with nominal power production targeted to match the output of small coal-fired generators. These wind farms require a lot of area,  covering many square miles along some of the most beautiful mountain ranges and ridges — places chosen because the wind was strong

Putting up these massive farms of windmills lead to a situation where the government had pay for construction of the project, and often where the government provided the land. This, generous spending gives the taxpayer the risk, and often a political gain — generally to a contributor. But there is very little political gain in paying for the repair or removal of the windmills. And since the electricity value is less than the repair cost, the owners (friends of the politician) generally leave the broken hulks to sit and rot. Politicians don’t like to pay to fix their past mistakes as it undermines their next boondoggle, suggesting it will someday rust apart without ever paying for itself.

So what can be done. I wish I could suggest less arrogance and political corruption, but I see no way to achieve that, as the poet wrote about Ozymandias (Ramses II) and his disastrous building projects, the leader inevitably believes: “I am Ozymandias, king of kings; look on my works ye mighty and despair.” So I’ll propose some other, less ambitious ideas. For one, smaller demonstration projects closer to the customer. First see if a single windmill pays for itself, and only then build a second. Also, electricity storage is absolutely key. I think it is worthwhile to store excess wind power as hydrogen (hydrogen storage is far cheaper than batteries), and the thermodynamics are not bad

Robert E. Buxbaum, January 3, 2016. These comments are not entirely altruistic. I own a company that makes hydrogen generators and hydrogen purifiers. If the government were to take my suggestions I would benefit.

Cross of gold democrats

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While it is dangerous to paint a large organization like the Democratic party with a single, broad brush, there are always patterns that appear, in this case in every presidential platform for a century. Beginning in the late 1800s when the Democratic party gave up on slavery, a stated goal of every Democratic platform has been to help the poor and downtrodden. Republicans claim to help too, but claim to target the worthy. For Democrats, by contrast, the common aim is to provide help without reference to individual worth or work — to help just because the individual needs it. All versions of this classic Democratic goal are achieved through forms of wealth redistribution: taking from the rich to give to the poor, Robin Hood style, at least temporarily. There is some inherent tension here: if the recipient can get free money without working, why would he work — a tension that some find insulting, but others accept as part of the comic nature of society. Many Americans accept that helping poor people is such a worthy goal that they knowingly accept the tension and cheating.

Mayor Quimba of Springfield (from the Simpsons). A classical Democrat, his motto: Corrupts in Extremus

Mayor Quimby of Springfield (from the Simpsons) is a classical Democrat, he has no morals beyond, ‘whatever the public wants’. Quimby is corrupt and an awful manager, but quite likable.

Extracting money from the rich always proves difficult: the rich generally object. The most direct way to extract money is taxation, but Democratic politicians, like Mayor Quimby, right try to shy from this to avoid being branded “tax and spend Democrats.” This year, Bernie Sanders has taken this line, proposing to raise the tax rate on the wealthy to 90% of income so he can do good for the poor and curb the power of rich Republicans. He has no problem with rich Democrats like Ms. Clinton, or perhaps he does, but doesn’t say so. In Britain, under Attlee, the tax rate was raised to 95%, a rate memorialized in The Beatles song “Taxman” (there one for you nineteen for me; 19/20 = 95%). Americans oscillate between accepting high tax rates and acknowledging that the worker and creative must be able to keep most of his/her earnings or he/she will stop working.

Every few years recipient Americans revolt against the way redistribution makes rich Democrats richer, and how high taxes seem to go with crony corruption. The motto of The Simpson’s Mayor Quimby is “corruptus in extremus”, a nod to the observation of how corruption in redistribution favors friends and family of those redistributing the wealth. Redistribution also tends to create poverty. This happened in England, for example. As Quimby says: “I propose that I use what’s left of the town treasury to move to a more prosperous town and run for mayor. And, er, once elected I’ll send for you.”

An alternative many Democrats favor is to print money or borrow it. This appears to be Ms Clinton’s approach, and was proposed famously in the “cross of gold” speech of William Jennings Brian in 1896.  In this speech, one of the finest in American history, Bryan (an unknown until then) proposed to monetize silver and other assets, allowing him to print money. He would spend the money on the poor by debasing the currency, that is by inflation. Bryan claimed that the rich were anyway sitting on unused money: a useless, dangerous pile that he’d inflate away. He also claimed that the poor are the ones who owe money, a burden that he would wipe out with inflation. Bryan’s final line is immortal: “you shall not press down on the people this crown of thorns, you shall not crucify the nation on a cross of gold.” The speech managed to combine God and greed and was an enormous success. Following the speech there was stunned silence, and then whoops and hollers. Bryan was carried around the convention for an hour before being chosen the Democratic candidate for president in 1896, 1900, and 1908. His speech has appeared, to a greater or lesser extent, in the platform of every Democratic candidate since with a greater or lesser reference to God depending on the conservatism of the speaker.

Donald Trump currently the front runner for GOP president reads to his grand-daughter Chloe from that Christmas classic, 'winners aren't lots.' photo by Donald Trump, jr (Chloe's Dad) aboard their car (?) plane (?).

Donald Trump currently the front-runner for GOP president reads to his grand-daughter, Chloe from ‘winners aren’t losers.’ photo by Donald Trump, jr., Chloe’s Dad. Trump seems to revel in the lovable, rich jerk persona as no Liberal or Democrat could.

Republicans have traditionally supported property rights and harder money: gold in the old days, a balanced budget today. They claim that low inflation is good for the rich and poor alike, and especially for the small businessman. Entrepreneurs are pictured as more virtuous than the idle, wastrel Democrats. Free money, the Republicans note, discourages work. Of course, distinguishing worthy from wastrel is easier said than done. Republicans are accused of being uncharitable, and of helping the idle rich once they get into office. Presidential candidate, Donald Trump claimed that until now he’d give big donations to candidates of the left and right so they would repay the favor with interest at a later date. No one knows if it will change when he gets in office, but so far he’s avoided the major rich donors. He’s doing well running as a lovable, rich, jerk who’d do things different.

Inflation is a dangerous mistress, the middle class generally doesn’t like the way it wipes out debts and savings, while supporting a class of rich wastrels, drunks and the chronically unemployed. Many of the poor and middle class save, while the rich tend to build up debts. The rich have better credit ratings than the poor, and thus borrow more. They are also better positioned to increase their borrowing if they think inflation is coming. The money they borrow is invested in hard assets: land, homes, and businesses. When inflation slows, they can sell these assets. And if they pick wrong, the government bails them out!. William Jennings Bryan lost all three of his runs at the presidency, twice to McKinley and once to William H. Taft, who stood for doing nothing.

William Jennings Bryan: for inflation and silver; against alcohol. Lost twice to McKinley and gold.

William Jennings Bryan: for inflation and silver; against alcohol. Lost twice to McKinley and gold.

I think the American people want a balance in all things. They want a balance between helping everyone, and helping only the deserving; between high taxes to help folks, and allowing folks to keep their wealth. They don’t quite know where to draw the line, and will even help the wastrels, even those who refuse to work, because they don’t want them starving in the street. They also seem to accept rich folks getting richer, especially when a big project is needed — a ship or a bridge, for example. We elect an alternating mix of Democrats and Republicans; conservatives, and liberals to avoid false paradoxes, achieve some liberty, and establish one of the richest states known.

As for me, you might as well know, I’m a liberal Republican. I favor low income taxes, but some welfare; taxing imports (tariffs), and low inflation –“bread currency,” I like Peter Cooper, and the Greenback Party, 1876. Cooper claimed that the dollar should always have the same value “for the same reason that the foot should always have 12 inches and the pound 16 ounces.” I also think enforcing morality is a job for preachers, not politicians. For 160 years students of Peter Cooper’s union were getting a free college education and I’m one of those engineering students, see my biography of Peter Cooper.

Robert E. Buxbaum, December 30, 2015. See my view of Scrooge’s economic education in the Christmas Carol.

State bird suggestion: the turkey

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state bird stamps; robin cardinal

three US states use the (american) robin as their state bird, and 7 more use the (northern) cardinal. None use the turkey

As things now stand, three states of the union, including Michigan have the robin as their state bird. Another seven have the cardinal. Not that they have different species of robin or cardinal, they use the same species: the American robin, and the Northern cardinal respectively.

A thought I’ve had is that Michigan should change to have a unique bird symbol, and I propose the turkey, in particular the eastern wild turkey shown below. The robin is found in every state of the union except for Hawaii, and is found in several countries, it’s associated with Robin Hood, and with Batman’s side-kick. By contrast, the eastern wild turkey could be a unique state symbol. It’s basically found in no other country besides the US, and found in only a few US states including Michigan.

Eastern Wild Turkey. A majestic bird, and brave Maximum height: 4 foot.

Eastern Wild Turkey. A majestic bird, and brave. Maximum height: 4 foot.

The eastern wild turkey is a far more impressive bird than the cardinal or robin. Full grown, it stands 4 foot tall. Benjamin Franklin claimed to have preferred the turkey (likely the eastern wild turkey) to the eagle as the national bird of the US. In this wonderful letter to his daughter, Sarah, he says that it is a noble bird, useful and the source of sustenance. He also claims it is unafraid to attack a British regimen, claims that also appears in this song, “the egg” in the play/movie 1776. The turkey most definitely provided food for the Indians, for the early European settlers, and still provides for Michigan hunters to this day. Further, turkey feathers are the preferred choice for quill pens. They are used for scribes writing holy works, like copies of the Torah, and it is likely they were used for the declaration of Independence. The same history and associations can not be claimed for the robins or the cardinal. Those birds are basically attractive, and nothing else.

Not that attractive is bad, nor is it bd to have a state bird associated with Batman’s side-kick, or with a Saint Louis baseball team, but I don’t think either is particularly appropriate for Michigan. Not that there are no disadvantages to the name turkey: (1) it might suggest a slow individual or project, and (2) Wild Turkey is the name of a Tennessee bourbon whiskey. Neither of these are quite a bad as being a sidekick to the bat, or to the batman, and I think both are addressed by specifying that the state bird is the eastern wild turkey, and not just some random variety. What say ye, citizens of Michigan? Let’s do it before someone else takes the turkey.

Robert Buxbaum, December 16, 2015.