David Frum’s Stupid Ideas to Save His Party

David FrumOh, David Frum. He’s the slightly smarter stupid conservative’s idea of what a smart guy is. Last week, The Atlantic paid him way more than he’s worth to write, The Great Republican Revolt. You see, Frum has noticed that there is a divide in the Republican Party. The fact that this was apparent back in 1976 when Ronald Reagan first ran for president or even earlier when Barry Goldwater lost the presidency in catastrophic fashion back in 1964, doesn’t much seem to matter. The Republican base is crazy for Donald Trump and so this is supposed to be something new.

David Frum’s overall narrative is basically correct, however. There is the business side of the Republican Party. All it cares about is tax cuts for the rich and deregulation, because they don’t have to worry about being poisoned by lead. And then there are the fools that we call the Republican base. These are mostly quasi-religious people who don’t think much of the darkies and think that all their problems (which are very real) are due to those poor undeserving people. And it has been a testament to the brilliance of the Republican Party establishment that they’ve been able to get the base to vote for them year after year even as the party makes their lives worse and worse.

Donald TrumpBut what happens if Donald Trump becomes the Republican nominee or even the president? Contrary to Frum, nothing much is going to change. For a brief period of time, I too thought that Donald Trump might be something different — a real populist. But then he came out with his tax “reform” plan and it was even worse than the establishment plans. It is just huge tax cuts for the wealthy, and a few crumbs for the rest. So he’s not going to cut Social Security (or at least that’s what he says). The truth is, none of the others would be able to get that done. So who cares? Certainly not the Republican elite.

Donald Trump is not an outlier. He’s pushing the same old giveaways to the rich and getting the base to vote for him by any means necessary. In his case, it is through racism. Gee, I wonder where I’ve seen that used before? I think it was every other Republican candidate in my lifetime. It’s just that Donald Trump is more explicit about that. This doesn’t make Donald Trump “Republican Outsider V 1.0” or even “Republican Establishment Candidate V 2.0”; it makes him “Republican Establishment Candidate V 1.01.”

So if Trump gets the nomination, the Republican establishment will line up right behind him. As far as I can tell, they already have. It is just that he makes their other extremist candidates look moderate because they don’t talk about Mexicans being rapists (except for a few who he assumes are nice people). But David Frum — like a typical clueless insider — can’t see this. He thinks that the Republican establishment has four options:

Double Down
Maybe the problem isn’t the message of tax breaks for the rich and cheap immigrant labor; maybe it’s just that Jeb Bush sucks as a candidate. But if that’s true, so does Marco Rubio, Chris Christie, John Kasich, Carly Fiorina, Bobby Jindel, oh hell, all of them. But Frum is right about this, “The ‘change nothing but immigration’ advice was a self-flattering fantasy from the start.” I’ve been making that argument longer than Frum has.
Tactical Concession
Here Frum really goes off the rails. He claims that the GOP establishment could just go on with business as usual, but become anti-immigrant. I don’t know where Frum has been for the past four years, but this is what the Republican establishment believes in. They might think it was okay to try to win a couple of Latino votes, but they’ve never thought it was important enough to fight for. This is the position that every Republican candidate is pursuing — and that includes Jeb Bush.
True Reform
This one is a hoot! David Frum claims “party elites could try to open more ideological space for the economic interests of the middle class.” Oh yeah! And then they would be — Oh, what do they call it? — the Democratic Party. If the party did this, the Republican donor class would have no reason to support it. In fact, given the donor class tends to be socially liberal, they would just shift to the Democratic Party. There is no point for the Republican Party to become economically populist.
Change the Rules of the Game
Here, Frum suggests that the Republican Party is highly successful with its use of gerrymandering, filibustering, and voter disenfranchisement. It doesn’t need to win the presidency. Fair enough.

The big problem with David Frum’s article is that he thinks that Donald Trump is something new in the Republican Party. There is nothing new about him. He’s just a different paint job on the same old clunker. So we don’t see the Republican Party at a crossroads. We just see the party continuing its decades long slip out of the mainstream, ever more dependent upon angry white people willing to vote for the very people who make their lives hard.

Polling, Voting, and Political Signaling

Neil IrwinOver at The Upshot, Neil Irwin wrote an interesting but very annoying article, How Is the Economy Doing? It May Depend on Your Party, and $1. It’s about how people’s opinions about the state of the economy are highly dependent upon who is in the White House. Ask a Republican right now and they will say it is terrible. Ask a Democrat back in 2005 and they would have said that it was terrible. But this is just a matter of political signaling — nothing more. Let’s start with the the the more general issue and then get into the details.

How the economy doing is doing not a concrete thing. If you asked me how the economy was doing, I would say so-so. Yet the unemployment rate is 5%! The unemployment rate was 4% at the beginning of 2000 and I would have said it was great. What’s the difference? Well, the employment-to-population rate for people between the ages 25-54 was roughly 82% in 2000 and it is barely over 77% today. That represents roughly 5 million people. There are a huge number of people who have given up. Claiming that Republicans are just being partisan when they say the economy is not doing well is questionable.

Look at the unfortunate Eric Harwood… He’s involved in an act of political signaling that those liberals don’t care about people like him and that conservatives like Ted Cruz and Donald Trump do.

The crux of Irwin’s article has to do with recent studies that gave people cash when they got answers right. So whereas a Republican might normally say that unemployment is worse today than when Obama came into office, if you give him a buck for being right, he’ll correctly say that unemployment is lower. Now this is presented as good news for democracy and bad news for polling. This is nonsense.

What’s going on is that the partisans (Democrat or Republican) are signaling in the uncompensated case that they really don’t like the people in power. And why shouldn’t they?! We have the statistics on the unemployment rate. We don’t need to ask people what they they think it is; they can just surf over to the St Louis Fed and get whatever information they want. Do half of Republicans really think that Obama is a Kenyan Muslim terrorist? Not really. But they are signalling that they really really don’t like him. And that and not the state of the economy is what they are going to be voting based upon.

Similarly, we already know that polling is a highly questionable tool. Remember back in the 2012 presidential campaign? In the first debate, Obama didn’t shine. Romney came off pretty good. (I still thought he was an idiot, of course.) And his poll numbers surged. But as I wrote at the time, that wasn’t because Obama voters had switched over. It was because conservative voters who in the end were already going to vote for Romney suddenly felt confident enough to switch form “undecided” to “Romney.” If you look at the polls of the time, you will see that Romney’s numbers went up; Obama’s did not go down. What was going on was political signaling. Before, conservatives were signaling that they weren’t that keen on Romney.

Look at the unfortunate Eric Harwood. He’s totally wrong about the “billions and trillions of dollars” that we spend “illegal aliens” and refugees. But it wouldn’t matter if he knew the facts. For all I know, he does know the facts. But he’s just angry. He’s involved in an act of political signaling that those liberals don’t care about people like him and that conservatives like Ted Cruz and Donald Trump do. It’s not just politicians who engage in political theater.

So who cares that deep down most people know the facts. They don’t vote to save the world from global warming. They don’t vote to make sure that veterans get healthcare. Their votes are an act of political signaling that they are for the “right” kind of people. And in the case of working class conservatives, they’d better hope that they don’t get their way.

Anniversary Post: Richard Nixon’s Watergate Subpoena

Nixon Fights BackOn this day in 1974, Richard Nixon refused to provide materials to the Senate Watergate Committee, which it had subpoenaed. This led eventually to the Supreme Court case United States v Nixon, where a unanimous Court found on 24 July 1974 that the president did have to turn over those materials. Nixon resigned two weeks later.

I have two thoughts on the matter. First, part of Nixon’s defense was that there was an executive privilege for the president to protect “those who advise and assist them in carrying out their duties.” This is exactly what we heard again and again during the George W Bush administration. And now we’ve added the argument that releasing audio of the president urinating would risk the nation security. I’ve long thought that Nixon went down more because he just wasn’t liked than that there was anything that the power elite actually had a problem with. I’m not saying that Nixon shouldn’t have been thrown out of office; I’m saying that a hell of a lot of other people should have been thrown out too.

The second thing is that I just don’t see the current Supreme Court finding unanimously against the president with regard to Watergate. The court at that time worked very hard to come up with a unanimous opinion. I would have thought that the same would have been true in Bush v Gore. That was a clear case where everyone should have agreed that the count should have continued. Certainly David Souter thought the decision a sham. Here’s what Jeffrey Toobin wrote about him regarding the case:

Toughened, or coarsened, by their worldly lives, the other dissenters could shrug and move on, but Souter couldn’t. His whole life was being a judge. He came from a tradition where the independence of the judiciary was the foundation of the rule of law. And Souter believed Bush v Gore mocked that tradition. His colleagues’ actions were so transparently, so crudely partisan that Souter thought he might not be able to serve with them anymore. Souter seriously considered resigning. For many months, it was not at all clear whether he would remain as a justice. That the Court met in a city he loathed made the decision even harder. At the urging of a handful of close friends, he decided to stay on, but his attitude toward the Court was never the same. There were times when David Souter thought of Bush v Gore and wept.

And that Supreme Court was far more reasonable than today’s Court. I suspect that if the Watergate case came before the Court today and it were a Democratic president, it would be a unanimous decision. But if it were another Republican, the president would win 5-4. Maybe I’m too cynical. But after Bush v Gore, it’s hard to imagine the conservative justices not finding a way to make sure that their “side” wins.

Murders Down But Police Aren’t Solving More

Clueless CopI remember when I sent out my first book to a publisher. I got a very positive letter back, but the publisher took exception to my referring to police officers as stupid. She pointed out that a lot of police officers read their books and that she knew a lot of them and they weren’t stupid. I ended up just writing a different book for her. And I didn’t argue the point. I had only written for small weekly newspapers and had not developed the charming pugnacious personality that is on display each day seen here at Frankly Curious. Plus, I really wanted to publish my first book.

There are a few points to note. First, I never wrote that police officers were stupid. I wrote that they “are not the brightest lights in the house and their lack of knowledge could act as a damning indictment of our educational system.” I went on to relate an example of an officer not knowing what the word “courtesy” as in “courtesy of the American Legion.” I don’t think that police officers are stupid and I never had. But compared to me, they are. Compared to most of the people I know they are. But that doesn’t make them bad at their jobs.

Indeed, courts have concluded that it is okay to not hire an officer because they are too smart. The truth is that police work is incredibly boring. There is a high attrition rate among them. Actual tests of police officers find that they are of average intelligence and that’s just fine with me. My problem with the police is that they tend to be bullies and tribalistic and self-impressed. What they should be is damned grateful that given their limited skills and abilities they have an easy job that pays really well. Instead, they go around acting like they couldn’t be replaced, which just isn’t the case at all.

I think the issue is quite simple. Roughly two-thirds of murders are easy. A great many of them are something along the lines of things got out of control at a family gathering and son shot uncle. There is no investigation required.

I was very interested in a recent article at Vox by Dara Lind, Police Are Solving a Lot Fewer Murder Cases Than They Used To. But that’s not a great headline. What’s really going on is that since 1990, the murder rate has been cut roughly in half. Yet the percentage of these murders that ended in arrest (Not conviction!) has been flat at roughly 65%. So if you murder someone, you you have a one in three chance of never being arrested.

Lind presents this as the effect of people not trusting the police. Despite all our new technologies and all the super keen stuff you see on cop shows on television, most murderers are caught because someone saw the murder — or something else close enough. (This is also the reason that a lot of people go to prison for murders they didn’t commit, but we’ll leave that for another time.) People in high crime areas don’t trust the police because instead of helping, they murder people when called to deal with depressed teens. I don’t know. I suspect that people unwilling to talk to the police is a part of the problem. But it’s a very small part of the problem.

I think the issue is quite simple. Roughly two-thirds of murders are easy. A great many of them are something along the lines of things got out of control at a family gathering and son shot uncle. There is no investigation required. In one-third of the cases, it isn’t clear. It is not the case that, “They know who did it…” I’ve never met a police officer who didn’t claim to know that whoever he arrested was guilty. And even after DNA evidence exonerates someone, those same officers still “know” that the arrestee was guilty.

There are two critical things about the police that make them so bad at cracking cases: their middling intelligence and their general laziness. Have you ever watched one of those shows where some police officer cracks a case years later? First, those represent exceptions. Second, the “brilliant insight” that cracks the case are always obvious. For example, in one case, a guy murdered his wife and then left the air conditioner on at full blast to screw up the the determination of time of death. That’s pretty clever. But it took the officers forever to figure it out. It doesn’t take Monk to figure this stuff out — just someone with a strong work ethic and an IQ over 104.

Add to this that the police don’t really care. Most of the people who are murdered are poor. There’s no pressure on them to solve the cases. It’s certainly true that if the police didn’t act like such jerks and make everyone hate them, it would be easier to do their jobs. But it’s going to take a lot more than this to solve more murders. And I don’t see the police moving toward fixing their jerk problem.

Terrorists in Oregon Occupy Malheur NWR Headquarters

Malheur National Wildlife Refuge headquartersMy country ’tis of thee. That’s what I was taught in grammar school: our country. But there are are those so filled with privilege and hatred that they think the United States is whatever they say it is: their country ’tis of them. And the roving gang of terrorists who sport their pocket Constitutions and took over the Malheur National Wildlife Refuge headquarters in Oregon yesterday should be captured, tried for treason, and spend the rest of their lives in a federal penitentiary.

The main men involved are Ammon and Ryan Bundy (sons of Cliven “I want to tell you one more thing I know about the Negro” Bundy), Jon Ritzheimer, Blaine Cooper, and Ryan Payne. But they are only men in a biological sense. In the truest sense of the word, these are boys who want to play Revolutionary War. They like to pretend that they are living under tyranny. Rather than prison, they would be better punished by having to live the rest of their lives in Saudi Arabia.

And they aren’t locals. This isn’t their fight. They just rove the nation looking for fights to get into. And they are often unwelcome, as they are in this case. That’s one of the sad things about this. The Bundy Traitors are making this all about them. But the cause that underlies this is at least somewhat just.

According to The Oregonian, the local people are mostly like me: they think that the Hammonds are getting a raw deal, but that the terrorists at the Malheur National Wildlife Refuge are extremists.

Back in 2012, Dwight Hammond and his son Steven were found guilty of arson. They twice set fire to federal land. According to the Hammonds, they did this to stop invasive species from encroaching on their land. I don’t believe that. Not for a minute. But even if it were true, it is wrong. If I have a tree that is growing onto your land, that doesn’t give you the right to set my yard on fire.

But the Hammonds were found guilty and they were punished with one year in prison and $400,000 in restitution (which they paid). But then federal prosecutors found that they could apply the Antiterrorism and Effective Death Penalty Act of 1996, and so now the Hammonds are supposed to spend up to five extra years in prison. I hate this nonsense. I hated when civil trials started being a big thing when criminal trials failed. There are all these squirrely ways to get around our justice system when we don’t think it works. The Hammonds did something wrong, they were punished, that should be the end of it.

Of course, the roving gang of terrorists isn’t really interested in this case. They just think that federal land should be theirs to use. The Hammond lawyer has been very clear that the Bundy boondoggle does not speak for his clients. And that’s understandable because the Hammonds are no doubt trying to extricate themselves from this legal issue; they aren’t trying to start the second Revolutionary War.

According to The Oregonian, the local people are mostly like me: they think that the Hammonds are getting a raw deal, but that the terrorists at the Malheur National Wildlife Refuge are extremists. Of course, no one is calling them terrorists because, you know, they are white. One of the terrorists is an ex-Marine who hates Muslims and posted a video that indicates he plans to die at this standoff.

I don’t want anyone to die in this. I want these terrorists caught, convicted of treason, and spending the rest of their lives in prison. And I hope that the Hammonds manage to get their sentences reduced, even if they aren’t the most sympathetic of people. At least they are Americans who respect what the country stands for.

Anniversary Post: Concerned Christians Deported

Al-Aqsa MosqueOn this day in 1999, 60 to 80 members of the Concerned Christians were arrested and deported from Israel. They were apparently part of a conspiracy to destroy the Al-Aqsa Mosque which is in Israel controlled Jerusalem. You all know me: I have my problems with Israeli policy. And I understand why they act as they do: keeping Israel a Jewish state is a real problem and a lot of people (me included) think that maybe it isn’t worth it. But in general, I think that Israel is part of the civilized world. It’s a paranoid country, but it has no interest in destroying Islam. So of course they would protect the Al-Aqsa Mosque and foil a conspiracy to destroy it.

Now let’s talk about the Concerned Christians. The group was formed in the late 1980s in Colorado. They were fighting mad about my good New Age friends who take a sloppy approach to religion. And they were concerned about anti-Christian sentiment, because you know how oppressed Christians are here in America that is 75% Christian. But as Christian freaks will tend to do, they quickly turned into an apocalyptic movement. And they knew that one thing standing in the way Jesus coming back and giving them all the toys and candy they wanted was that Jerusalem wasn’t totally under Jewish control. I mean: mosque! Am I right?! So the Concerned Christians were a big part of “Operation Walk on Water.”

Let me take a moment to discuss Christian terrorism for a moment. It is likely that a lot of the early Roman oppression of Christians was because of this kind of stuff. They were involved in terrorist acts that they thought would bring Jesus back. Anyone who thinks that politics and religion are separate are foolish. For the true believers, they are one and the same. We are all very lucky that most religious people don’t take their religions very seriously.

But good for the Israelis for catching these fools. Unfortunately, they are still around. And according to Wikipedia, we don’t even know where they are. They could be in Greece or Philadelphia. But I’ll bet none of them are on the terrorist watch list, even though they’ve all been part of a terror plot. But they’re Christians, so I guess they can’t be terrorists. They must be peace loving. When someone slaps them in the face, they turn their face so the other side can be slapped.

Concerned Christians!

Covered California: I Died and Woke Up in Canada

Covered CaliforniaSo I finally got around to getting on the Obamacare exchange here, which is called Covered California. It was a remarkably easy thing to do. I think it took me about a half hour. And I make so much money that my monthly premiums for Kaiser Permanente are $1. It seemed like a joke. It reminds me of those idiots on Fox and Friends who were calling for everyone to have to pay at least something in income taxes so that they had “skin in the game.” (It was pretty clear that if this happened, they would only want more to the point where everyone payed the same amount — but that’s a topic for another time.)

A new feature of Covered California this year is dental insurance. I was able to sign up with Delta Dental for $13.95 per month. I picked it because when I managed a dental office, Delta of California was by far the best insurer. You may not know this but about 80% of managing a dental office is fighting with insurance companies. And Delta was very good about paying without a lot of fuss. And when I saw that the co-pay on root canals wae only $300, I was hooked. (Now if I can just find a regular dentist who is up for doing a couple of molar root canals, I’ll be set.)

Obamacare is something that conservatives think is evil. But these are the same people who think that unions are evil. And that minimum wage is evil. And that forcing employers to provide healthcare is evil.

I feel like I died and woke up in Canada. I’ve always been positive about Obamacare. But not like this. This seems to me very much like universal care. And I very much wish that I had had this back a decade ago when I almost died and ended up owing over a $100,000 in medical bills. But more than that, I’m just looking forward to going in and getting a physical and a checkup and starting the process of my dental triage.

But think about this. Obamacare is something that conservatives think is evil. But these are the same people who think that unions are evil. And that the minimum wage is evil. And that forcing employers to provide healthcare is evil. They are the big proponents of the “gig economy.” Well folks, I am the poster boy of the gig economy. I’m self-employed. I get money from a number of different sources. And if it weren’t for Obamacare, I’d be screwed. I’d be forced to join the Freelancers Union, which I have mixed feelings about politically and which is mostly just a for-profit insurance company that offers far more expensive insurance and (as far as I can tell) no dental.

It’s weird. The American conservative movement is mostly made up of a bunch of people with cushy jobs that are more like what people did in the 1950s with employer provided healthcare and retirement plans. In fact, I know people like this. My brother-in-law has a great union job, but has this attitude the young people are lazy. But it’s the young people who are out hustling to make a living. His father got him the job he has had for decades. All he has to do is show up and do his work, which is a great advantage compared to what people like me have to do in the modern economy.

So the fight against Obamacare continues on. But for the people of California it seems we are now living at least on the outskirts of civilizations. I could hardly ask for anything more. I feel very lucky indeed. It is like I died and woke up in Canada.

Eric Harwood Is Voting His Own Best Interests

Eric HarwoodMatt Bruenig wrote, The Story of Eric Harwood. It’s a very sympathetic telling of the story of a 47-year-old working class man who now finds himself disabled with difficulty getting SSI because of some understandable mistakes. It’s very sad and I do hope the whole thing works out for him. He deserves to get disability insurance and live a dignified life.

I’ve written a lot about this kind of thing in the past. Every time some politician starts going on about fraud in government programs, I know what the net result will be: loads of people who clearly deserve help won’t get it just so we can stop a handful of people who probably don’t. But this is the conservative way, is it not? It’s better to let children starve than allow an able bodied surfer to eat lobster at government expense. Or, in another area, it is better to stop millions of people from voting rather than allow one ineligible person to vote.

It turns out that Eric Harwood is an ultra-conservative. He’s hoping that the Republicans will nominate Ted Cruz and Donald Trump; he doesn’t care which one of them is on the top of the ticket. Now I am very tired of hearing liberals complain that conservatives don’t vote in their own best interests. They do vote in their own best interests — as they see them. And Harwood is an entirely typical conservative. I run into them all the time.

“Why is it that we’re bringing in illegal aliens into our country, and now bringing in more refugees spending billions and trillions of dollars on both.” —Eric Harwood

Let’s suppose that Eric Harwood gets his SSI — as he clearly should. He will then almost certainly spend a great deal of time watching Fox News and listening to hate radio. He will continue to rail against all those undeserving people sucking off the tit of the American tax payer. The fact that he is doing exactly the same thing will cause no cognitive dissonance in him. And that’s because he is one of the deserving ones. He isn’t some libertarian who thinks the government shouldn’t exist. He just thinks that it should take care of the people who deserve it.

If you look at Harwood’s life story, you can see how the government has helped him along the way. He went to trade school to become a locksmith. That’s great, but it almost certainly involved government programs that made it more affordable if not paying for it straight out. He apparently lost $30,000 in wealth when his condo was foreclosed on. Let’s consider that. I assume a condo in Nevada would cost about $150,000. So let’s say his mortgage was $120,000. In 2005, mortgage rates were around 6%. That comes out to roughly $7,000 per year that he got to write off. He only had the place for three years, so we can figure that roughly $7,000 of that $30,000 that he lost was a direct payment from the government. (Also, it is almost certain that the $30,000 is just what he paid over the three year, so it wasn’t wasted money; he would have had to pay that amount in rent if he hadn’t purchased the condo.)

I know that people don’t think about things like this. But when you slice and dice the world up into the worthy and the unworthy, you are going to find that other people place you in the unworthy category. So now he’s going to vote for Trump or Cruz, thinking that they will fix the nation in such a way that he gets everything he thinks he deserves and other people don’t get anything because he doesn’t think they are deserving. That’s what he’s voting for. He is very much voting in his own interest. It’s just that he’s foolish in thinking that the Republican Party’s platform puts him in the deserving camp.

But I hope liberal policy wins the day and Eric Harwood gets the help that he needs and deserves.

Aniversary Post: Governor Ronald Reagan

Ronald Reagan Selling Cigarettes, Like He Sold Other Deadly Things to AmericaOn this day in 1967, Ronald Reagan was sworn in as governor of California. Mostly I think he was elected because he was going to go after those dirty hippies. But on the plus side, at least he thought it was a good idea to become a governor. Now it seems that Republicans think that anyone could be the president. According to these fools, unlike being a boiler tech, being a president doesn’t require any training or experience.

There were things to like about him as governor. As Alex Seitz-Wald has noted, he made abortion far more available in the state. Of course, then he ran for president stating that abortion should only be allowed when the life of the mother was at risk. And then as president, he didn’t do much of anything. The truth is that he didn’t care. But as we know, Reagan would do anything to get power.

Ronald Reagan also limited gun rights because he was terrified of the Black Panthers. It would be wrong to imply that Reagan was a racist; it should be stated clearly: Reagan was a racist. But lucky for him that he lived in a racist country.

Reagan also existed in that great period when Republicans were still honest about their tax policies. He raised state taxes in a big way while governor. And, of course, the taxes weighed most heavily on the poor. For example, he raised the top income tax rate by 43% and the corporate tax by 27%, but the sale tax by 67%. It was the same thing when he was president, Reagan’s Legacy: Tax Cuts for Rich, Tax Hikes for the Rest.

Overall, Ronald Reagan was terrible in every way imaginable. But it isn’t just what he did directly. I don’t think that Clinton would have ended welfare as we know it if it hadn’t been for Reagan. And despite his terms as governor of California, Reagan was unqualified to be president. And the sad thing is: he’s infinitely better than the bozos who the Republicans are looking to nominate.

The Low Expectations of High Tech Innovation

Flying CarFrequent commenter Jurgan posted a charming couple of letters that rocked the bread world a few years back. (I’ll write about it later today.) But it is all on Tumblr, and as you know, I don’t much understand new technologies. This is odd given that I’m paid to write about technology. But I guess it isn’t exactly true that I don’t know what it is. It’s a blogging platform. I just don’t understand why it is considered an innovation. I spend much of my life in awe of the fact that people get money for things that are not new. Like Facebook: how was that new? For those who don’t know (and this apparently includes the vast majority of Facebook users), it is an image sharing application. Really: that’s all it is. And those were around for years before Facebook.

None of this should be taken as a slight against people who use Facebook or Tumblr. They are fine tools. What’s annoying is that the press and investors treat these things as revolutionary when they aren’t. In particular, Facebook is useful because a lot of people use it. That appears to be the case with Tumblr as well, which hosts 271.5 million blogs with 126.6 billion posts. (Note: that’s an average of 466 posts per blog, which is pretty good given my experience with blogs is that a dozen is about average.)

In 1999, in an example of the kind of thinking that has shaped the internet for the last two decades, eXcite turned down an offer to buy Google for $750,000.

The thing about Tumblr, Facebook, Twitter, and many other of these social networking sites is that they are closed systems. To me, this is a great step backwards for the internet. Everyone should be on an equal footing. There are obvious advantages to having a closed system, but they are mostly advantages for the company. And you can see the problem on sites like Booman Tribune or Lawyers, Guns & Money. These sites require that you have an account to comment. They are big enough that they still host lively discussions, but they clearly limit discussion as well. (They probably do this because they haven’t realized that there is now software that filters out virtually all spam.)

It leads me back to the old Peter Thiel quote, “We wanted flying cars, instead we got 140 characters.” Now personally, I never wanted a flying car. This is because I’m still reasonably attached to living and you can just imagine if we have a quarter billion cars flying around with their drivers drinking hot coffee and texting photos of the thousands of car crashes they see each day. But there is a reason that we got 140 characters: because there is very little actual innovation that goes on in the realm of high tech.

Let me share with you a personal story. A couple of years back, I was working with Mikhail, a brilliant young hardware designer, on an amazing technology. I’m prevented by contract to explain it to you, but it had to do with extreme sports. It combined a number of advanced technologies to do something that frankly I didn’t think was possible before we started. But we couldn’t get money for it. At the same time, we knew a couple of guys who got a half million dollars to produce a wired toy submarine that had a camera in it. Wired. Almost a decade ago, Mikhail and I were streaming video from RC helicopters in our spare time, and these guys had money dumped on them for a toy that would have been only marginally cool in 1980.

The truth of the matter is that capitalism is not a good system for creating innovation. And capitalists know this. This is why the big pharmaceutical companies depend upon the government to do the research on anything actually innovative. Otherwise, they just stick to the tried and true: yet another erectile dysfunction drug, yet another benzodiazepine, yet another Vicodin knockoff. And in the area of high tech, who wants to invest in something that is actually new, when they can just market a photo sharing site as if it were a major innovation? Or yet another blogging platform like Tumblr, which sold for over a billion dollars less than three years ago? We don’t have innovation because we don’t value innovation; we value profit.

Afterword

Oh, you know what was revolutionary? The Google algorithm. And they had a hell of a time getting money. In 1999, in an example of the kind of thinking that has shaped the internet for the last two decades, eXcite turned down an offer to buy Google for $750,000. (That’s just over a million in today’s currency.) In America, what passes for innovation is Mitt Romney investing in Staples with the brilliant idea that business supplies could be sold through a chain that gets lots of government funding to put small business supply stores out of business.

Rain Rain Don’t Go Away Stay Around Another Day

RaindropsI loved the rain when I was a kid. It caused my parents some consternation that I loved most to play in the rain. The rain is almost magical. And growing up, it created a certain discord in me because I loved the rain but I knew that my father, a building contractor, could not work when it rained. And this was a problem because my father’s business acumen was very similar to that of Bob Belcher on Bob’s Burgers. That is: we were always living on the edge but proud of the quality of dad’s workmanship.

But there was something deeper about my love of rain. As I know I’ve explained before, I’ve always been highly skeptical of gravity. It’s like electricity. In college, the only course I had trouble with was electronics. I wanted to know why electrons went to ground. And my professors would always give me the same lame answer, “Where else would they go?” I don’t know! These people have such confidence in the universe. It was probably a mistake for someone with such a strong mystical and metaphysical orientation to go into physics. It’s like a Jew joining the Klan. But I did it and it was doubtless good for me.

This last month has been interesting in that we’ve had a lot of storms, but they come through and drop a quarter or a half inch of rain and that’s it.

But I still don’t trust gravity. I am a master of mechanics. I understand all the theory that explains why the Moon doesn’t fall on my head and why I don’t float away from the surface of the Earth. But when I see a big blue sky, I still think that all my years of experience being pressed to the surface of the Earth is just a great big bluff and that God is going to flip a switch and I’m going to go floating away. For millennia, people have been searching for the meaning of existence. But that’s what it is: God’s practical joke on Frank. Oh, how he will laugh!

Up until about 8 years ago, I was skinny. Painfully skinny. And my grandmother used to tell me all he time, “One day a wind will come up and blow you away!” But what was I supposed to do? Drink the milk she served that came from a cow? I knew there was something very wrong with all that and so I was always skeptical of food that didn’t come from inside a well designed box. And by the way: my grandmother was very small too, so I don’t know what she was complaining about.

Rain Rain Go AwayThis image of my body being blown away has never left me. But I don’t imagine wind. I just imagine gravity not working. And let’s face it: it could happen. It’s not like we have a contract. Remember Bertrand Russell’s example of the chicken: every day is great and then one day they cut your head off. Now, for the record, if gravity stopped, the atmosphere would immediately vanish, and we would suffocate if we weren’t first destroyed by high energy particles. But the fact remains that we would die — and fast.

Somehow, cloud cover and even nighttime makes me feel less exposed. And rain is even better because it is falling — a sure sign that gravity is still working as advertised and that God hasn’t sprung his little practical joke. But all this is just the result of my having a fanciful imagination. I understand that. There are very real feelings that go along with it, but I know intellectually that there is nothing to fear. The problem is that now there is a related fear that is very real indeed.

For the purpose of rainfall totals, the season starts on 1 July. And here in my hometown of Santa Rosa, we have an average rainfall total by the end of December of 11.4 inches. And last year, we had a very wet December with roughly 12 inches in that month along, but a total of over 17 inches for the season to that point. It looked great. It looked like our drought was over. But it wasn’t.

Normally, the first three months of the year have rainfall totals: 6.0, 5.2, and 3.6. But last year, we got: 0.9, 0.4, and 1.9. This year, we should normally have a total rainfall of 11.4 inches. Instead, we have 6.7 or 7.5, depending upon the source. It’s depressing.

But there is El Niño. This year, it is a very big one. But we haven’t seen much of it. This last month has been interesting in that we’ve had a lot of storms, but they come through and drop a quarter or a half inch of rain and that’s it. We are getting snow in the Sierras, and that is very good indeed. But not as much as we might hope. Still, El Niño is not supposed to really hit until later: January, February, and March. But currently, there is no sign of rain until 5 January at the earliest. And the promised rain has disappointed again and again in the past.

If things don’t change soon, people will float away — not into the sky, but to other areas that haven’t turned into deserts.

The Bunk of the Economic Uncertainty Crowd

UncertaintyNoah Smith is one of those super smart guys who also often annoys me. On Tuesday, he wrote, Don’t Blame Uncertainty for the Slow Recovery. Now, I am in complete agreement with him on this issue. But it bugs me when people take clearly silly ideas far too seriously. And this is one of those cases, although I’m glad that Smith is out there setting the record straight for all the fools who believe such hogwash.

The “uncertainty” hypothesis is that businesses have not invested since the financial crisis because they are afraid of the uncertainty of government policy. By this silly idea, businesses were frozen in terror, not knowing if they should buy new equipment for fear that the top marginal tax rate might go up. So companies were just sitting on piles of case waiting until they were absolutely certain what the future would be. If this sounds absurd, that’s because it is.

There are a lot of economists who I greatly admire. And even the ones I disagree with are brilliant in their way. But most of them don’t have much of a clue what it is like to run an actual business. Growing up, my parents owned a gas stations then a convenience store and finally a construction company. In addition, I’ve had micro-businesses all my life. And I spent a year working a business at the San Jose full-time flea market — the closest you will ever come to a perfectly free market. All of these experiences have colored the way I see business.

Rule number one in business is that it is all about uncertainty. Running a business is a matter of dealing with uncertainty. If you are fretting about how quickly you will be able to depreciate a piece of equipment that you buy next year, you have too much time on your hands. Actual business people generally won’t buy anything or hire anyone unless they absolutely, positively have no other choice. And they certainly don’t think in terms of the taxes they will pay on profits they haven’t made yet. And it isn’t just little old me saying this. I’ve heard the same things from Nick Hanauer and Warren Buffett.

If business were about certainty, then wouldn’t everyone have a business? And it doesn’t get any less absurd if you focus on political uncertainty. We live in a democracy. Because of the way elections are staggered, we get changes every year. Even at the federal level, we get different congresses every two years and potentially new presidents every four years. Change is a given. What those who have spent the last seven years run around complaining about uncertainty are really talking about is that they don’t like the policies on offer. It wasn’t uncertainty that they were unhappy about. Obamacare was gradually put into place and it was very clear exactly what was going to happen and when. The real complaint was that the policy was going to destroy business, because they didn’t like that policy.

We all know why this recovery has been so slow. Paul Krugman put together the following graph that explains everything we need to know. It compares the number of government jobs that were created after the last two recessions: one under George W Bush and the other under Obama. Every other recession looks just like Bush, but under Obama — because of Republican intransigence — the government has made the recession worse. This is really an amazing graph. (Note: the spike is temporary workers for the Constitutionally required 2010 census.)

Government Jobs After Recessions

So I’m glad to see that there is actual data that shows that uncertainty is the hogwash it always obviously was. But the original work was only taken seriously because there were people who wanted to push the idea for ideological reasons. And this new paper won’t stop those people from continuing to claim that the problem is Obama and all his newfangled ideas.