Why I Do Not Like HOV Lanes!

A Waste Of Time, Money, And Resources

HOV (high occupancy vehicles) lanes are such a waste of resources and a source of revenues for local governments.

Which Lobby Promoted This Humbug?

HOV lanes are pet projects of paternalistic elected representatives who want adults to change their behavior. Given the fact that it is so unrealistic that commuters would find a fellow commuter who happens to be on a similar schedule as well as working and residing roughly in the proximity of yourself so that you can share a car one wonders which nut ever came up with the idea of HOV lanes. Or which lobby promoted this humbug?

Nothing But Worsening The Commute For Most

I would bet that HOV lanes in conjunction with unconstitutional speed limits (I wrote a separate blog on this subject) contribute in a major way to the daily grind/congestion on our highways during rush hour. Without HOV lanes there would likely be much fewer of those insane slowdowns and stop and go traffic.

Do Not Despair

Why do we not have more telecommuting in the Internet Age? When will finally computers drive us to work?

Economics – Que Vadis?

This a follow-up blog on the sorrow state of current economic research as reflected in journals of the esteemed American Economic Association.

In the American Economic Journal: Applied Economics Vol. 4, Issue 1 -- January 2012 we find more peculiar selection of articles:

·         “Partisan Grading” by Talia Bar and Asaf Zussman
“We study grading outcomes associated with professors in an elite university in the United States … Relative to their Democratic colleagues, Republican professors are associated with a less egalitarian distribution of grades and with lower grades awarded to black students relative to whites.” (Excerpt from abstract)
Comment: What is the relevance? Is there an racist undertone against Republican leaning professors who are in a minority? Is it not wonderful that the majority Democratic professors are more egalitarian in their grading?

·         “When the Saints Go Marching Out: Long-Term Outcomes for Student Evacuees from Hurricanes Katrina and Rita” by Bruce Sacerdote
“I examine long-term academic performance and college going for students affected by Hurricanes Katrina and Rita. Students who are forced to switch schools due to the hurricanes experience sharp declines in test scores in the first year following the hurricanes. …” (Excerpt from abstract)
Comment: Is there nothing safe under the sun to be examined by economists? What does he compare the outcomes of such fairly rare events to? Yes, the saints are marching out of economics.

·         “Do Expert Reviews Affect the Demand for Wine?” by Richard Friberg and Erik Grönqvist
“We examine the demand for wines in Sweden using five years of weekly data on sales, advertising, and expert reviews. The effect of a favorable review peaks in the week after publication with an increase in demand of 6 percent, and the effect remains significant for more than 20 weeks. … Restrictions on the state-owned monopoly retailer and the exogenous timing of a subset of the reviews support a causal interpretation of the effects of reviews on demand.” (Excerpt from abstract)
Comment: Is this a marketing study? Sweden is a country where alcohol consumption is almost prohibited and alcoholic beverages are expensive. Thus, it is curious to see such a study. Are not beer and vodka/akvavit the main beverages preferred in Sweden? Swedes buy their booze on ferries crossing the Baltic See or as tourists abroad. Moonshining is common. Whatever this study is worth!

·         “Are Female Leaders Good for Education? Evidence from India” by Irma Clots-Figueras
“This paper shows that the gender of politicians affects the educational levels of individuals who grow up in the districts where these politicians are elected. … to estimate the causal effect of the gender of politicians. Increasing female political representation increases the probability that an individual will attain primary education in urban areas, but not in rural areas, and not in the sample as a whole.” (Excerpt from abstract)
Comment: Obscure gender studies published by the AEA? Does gender really have causal effects on education? What does the author know about the role of women in a heterogeneous, ancient civilized society such as in India?

·         “Enhancing Cognitive Functioning: Medium-Term Effects of a Health and Family Planning Program in Matlab” by Tania Barham
“It is believed that early life circumstances are crucial to success later in life. Yet causal evidence that the impacts of early childhood health interventions continue into late childhood and adolescence is sparse. … in Bangladesh to determine whether children eligible for child health interventions in early childhood had better cognitive functioning at ages 8-14.” (Excerpt from abstract)
Comment: What is the relevance? Is this a specialized health care study in a developing country?

Once more a large portion (this time 50%) of all articles published by AEA as applied economics are obscure or quirky. May the next great global recession begin, while economists still have no clue.

The Agitprop Of “Millionaires And Billionaires”

Absurd Minimum Taxes

In his latest State of the Union address the President asked for new minimum taxes on the rich and businesses. Does he not know that this never worked. The current Alternative Minimum Tax is a disaster.

A President Of Demagoguery

President Obama is a cheap agitator and propagandist befitting a community organizer. In these hard times, he appeals to envy and to the age-old accusation that rich people acquired their wealth immorally or perhaps even illegally.

In this respect, President Obama is a demagogue.

He is merely trying to cover up his ineptitude to come up with a free market oriented economic policy that promotes broadly based economic growth and better living conditions for all.

A Squanderer Of A Lifetime Opportunity

It is amazing to witness that a smart and talented guy like Barack Obama so squanders such a lifetime opportunity to be the POTUS. His enormous ideological straightjacket prevents him from being or becoming a great President of the people of America and the world. History will only mention him as the first black president.

Judged By The Content Of His Character

Martin L. King said a man should be judged by the content of his character. He will be judged come November.

What a disappointment to MLK were he still alive.

The US Fed Continues To Be Reckless Promising Extremely Low Interest Rates Until 2014

Chairman Bernanke Please Resign

Bernanke should be impeached or resign. Bernanke is a poster child for what is wrong with economics today: Lack of understanding fundamentals of economics. The short-term interest rate is too important an economic price to be so brazenly manipulated by a central bank. It is high time for substantial reforms of central bank policies to prevent this in the future.

The Fed Caused The Great Depression With Super Low Interest Rates

Not only is the Fed one of the major culprits of the Great Recession because they did not stop the deteriorating lending standards and they kept the short-term interest rate too low for too long thereby fueling the speculation.

Money Should Never Be Cheap

And the Fed continues to fuel speculation with cheap money; to aid and abet politicians in their reckless accumulation of government debt; and to deprive investors of government bonds or savers or banks of reasonable returns.

As a minimum, any reform of interest rate policy should contain a formula such as that the short-term interest rate has to be above the inflation rate, always. Sounds too simple? Sure, you do not need a professor from Harvard to implement it. J

Speed Limits In The USA Are Unconstitutional

Founders In Their Own Words

James Madison in “Property” published in the National Gazette (3/29/1792):

“That is not a just government, nor is property secure under it, where arbitrary restrictions, exemptions, and monopolies deny to part of its citizens that free use of their faculties, and free choice of their occupations, …” (emphasis added)

What would James Madison say today about speed limits? He would probably agree it is an abomination!

Why Unconstitutional?

It is a prime example of how government constantly kills individual responsibility and imposes on its citizens a one size fits all solution.

Founders who gave us a 2nd Amendment and similar provisions in various state constitutions would be more than amused to see that 200 years later citizens and their elected representatives have chosen such limits on the freedom of movement.

Freedom is indeed never more than only one generation away from extinction to borrow these famous words by Ronald Reagan.

Speed Limits Are Highly Arbitrary

Speed limits in their current form are a manifestation of paternalism. We are all treated equal, right? Like any paternalistic/authoritarian measures it severely undermines individual responsibility and liberty.

There is no doubt in my mind that speed limits as defined on many US roadways are highly arbitrary and defy common sense. Given the advanced technological state of today’s motor vehicles a speed limit of 55 or 65 on many US highways is ludicrous.

Speed limits are a typical example of the pervasive government regulatory approach of one size fits all. It’s liberty killing presumed fairness by subjecting everyone to the same cruelty. It’s government meddling in our lives exploiting that law abiding citizens abide by these rules.

Justifications For Speed Limits Are Bogus

1) Justification: Safety

I do not believe that there is any convincing, critically reviewed evidence out there that higher speed causes more injuries and death than under those restrictive speed limits like in the US. statistics that purport to show a reduction in fatalities after introduction of speed limits are a fallacy. I might be wrong, but I think most of the statistics out there were produced by people interested in maintaining speed limits. Most likely these static statistics do not reflect humans enormous capability to adapt very well to different environments.

Really bogus are any arguments along the line that introducing higher speeds would have adverse effects on safety. Only during a transition period, I would tend to agree.

2) Justification: Energy Conservation

To counter fuel consumption or high prices of crude oil. I would argue that fuel consumption in idling traffic going stop and go etc. wastes a lot of fuel on major highways every rush hour. Speed limits impede the flow of traffic on highways and exacerbate the phenomenon of frequent, sudden, dramatic slowdowns for no good reason etc.

The National Maximum Speed Law (NMSL) Act of 1974 was a disgrace. That it took the US Congress until 1995 to repeal it and to return the authority to set or not to set speed limits to the states is a prime example of federal overreach.

3) Justification: Environmental

Vehicle noise is much less a concern today than it was perhaps in the past. If someone really cares of about vehicle noise emission why are loud motorcycles and cars not immediately impounded?

As mentioned before unreasonable speed limits cause all kinds of perverse traffic patterns that likely worsen the air quality.

A False Sense Of Safety

How many drivers on US highways do not properly look in their rear mirrors before they make a lane change? Too many.

Why were US soldiers warned every day on American armed services radio to be aware of defensive driving on German highways? You could be road kill if you forgot to look in the rear mirror.

Thus, I would argue unreasonable speed limits have a deleterious effect on individual responsibility.

Speed Limits As A Source Of Government Revenues

Speed limits are often just that a fairly predictable source of significant government revenue. Thus, there is obviously a conflict of interest in setting speed limits on our roadways.

Congestions Caused By Highway Patrol Officers

Highway patrol police cars standing visibly on the side of the highway during rush hour are causing unnecessary congestions. Instead of chasing criminals or reckless car drivers these police officers earn money sitting in their cars doing what? Watching out for citizens so they obey speed limits?

Highly Demeaning To Responsible Drivers

I strongly believe that most individuals are most of the time acting responsible especially if basic rules are clearly defined and punishment for irresponsible, harmful actions is swift and commensurate.

I personally find it aggravating that I have to constantly watch my back and every entrance ramp, HOV lane or other potential hiding areas along the roads where these dumb and highly overpaid highway patrol police officers might be preying by car or motorcycle on you. What a waste of taxpayers money for no good reason! Cops ought to catch criminals not law abiding citizens (a speed limit is not a law)!

Thus, I have to divert my precious attention from watching the traffic and surroundings to avoid accidents to spotting police officers.

Alternatives

Why is telecommuting/teleworking still so rare?

Severe sentencing of irresponsible drivers who caused traffic accidents. In case of personal injury, stiff jail time should be mandatory. No excuses. Irresponsible is, e.g., someone who drives an old, worn out car too fast. Driving and drinking will get you in jail, if an accident occurs.

Speed limit signs should be replaced with realistic recommended speed plus higher save speed postings.

Difficult roadways need more warnings.

Today’s technology would also allow to install drive recorders (like black box flight recorders) or to have more traffic surveillance cameras. Thus, when an accident occurs, there will be more evidence.

Other, Related Blog Posts

Here, here, and here.

Take From The Government The Power Of Borrowing

Thomas Jefferson’s Wisdom

“I wish it were possible to obtain a single amendment to our constitution. I would be willing to depend on that alone for the reduction of the administration of our government to the genuine principles of its constitution; I mean an additional article, taking from the federal government the power of borrowing.”

Thomas Jefferson (1743–1826) in a letter to John Taylor dated November 26, 1798

History Is A Guide

Adam Smith wrote in his chapter “On Public Debt” that “The practice of funding [by government debt] has gradually enfeebled every state which has adopted it.”.

Few people can resist taking and spending other people’s money, if they have the power or opportunity to do so. Democratically elected representatives are no different or even worse.

There is a long history of government debt of most countries predominantly ratcheting up over time, seldom being paid down in any significant way only to rise again. During the last two hundred years alone there were more than two hundred defaults on government debt according to Carmen Reinhart and Kenneth Rogoff.

A Balanced Budget Amendment Will Not Suffice And Will Not Work

Balanced budget amendments seem to be very popular. However, elected representatives have proven to be clever enough to circumvent such measures by accounting tricks or taking spending items off budget etc.

Further, even under a periodic balanced budget requirement nothing would stop lawmakers from raising taxes to meet their profligate spending habits accordingly.

To cite the famous quote of Jean Baptiste Colbert (1619-1683):

“The art of taxation consists in so plucking the goose as to obtain the largest possible amount of feathers with the smallest possible amount of hissing”

Our elected representatives are experts in plucking our money.

Solution

We have now enough experience to tell whether the federal debt ceiling approach in the US did not work and is insufficient.

Grant Thomas Jefferson’s wish: Add a new amendment to the US constitution requiring a supermajority (e.g. 75%) every time Congress wants to borrow money to spend, in particular, if it increases government debt.

National catastrophe or national security is no excuse not to have such an amendment. It is hardly conceivable that responsible elected representatives would not expediently vote for borrowing if absolutely necessary.

Anyway, who needs Congress in an emergency situation when private citizens are willing to borrow money to government in times of war or a major catastrophe as happened before, e.g., in the early days of the USA.

What Else?

Term limits for members of Congress are overdue. How can it be that only the President of the USA (POTUS) is term limited for a reason.

Ceterum censeo Carthaginem esse delendam: Strictly voluntary taxation is the way to go! Nobody should be compelled to pay taxes.

What If Iran Detonated An Atomic Bomb In The Strait Of Hormuz?

Only A Scenario?

Or will more than one nuclear bomb go off?

A Mushroom Cloud In The Name Of Allah

That would perhaps finally be a wakeup call to all the wimps in the Western developed world who thought diplomacy can solve everything and who dream of a nuclear weapons free world while belligerent dictators and fanatics still roam the world.

Dispense With Costly Military Forces

Is it not amazing how countries like the US, Germany, or the UK for decades still continue to reduce their military power to the point of toothlessness. Western militaries are mostly providers of humanitarian aid instead of being globally combat ready.

Drones alone will not do the job.