A $1.4 billion stadium for Afghans, Iraqis, and Somalis to watch American football

“After decades of decline, Buffalo boasts a ‘Refugee Renaissance.’ Can it last?” (Democrat and Chronicle, January 2022):

After reinventing itself as a haven for refugees, Buffalo seems poised for renewal. But with success comes higher rents.

Across the nation, the results of the 2020 census were the source of hand-wringing and political debate. But in Western New York, they were cause for unbridled celebration.

For the first time in 70 years, the city of Buffalo had grown.

The city’s modest 6% growth was trumpeted by officials as a pivotal triumph for a Rust Belt city that had become synonymous with loss. Hollowed out first by suburban flight and then the loss of manufacturing jobs, the onetime steel and iron powerhouse had hemorrhaged more than 50% of its population in the half-century since 1950. By the turn of the millennium, it also ranked among the most poverty-stricken in the nation.

The city’s turnaround came from a perhaps unlikely source: refugees from some of the most conflict-riven places in the world. After welcoming fewer immigrants than any city its size in the 2000 census, Buffalo has since re-imagined itself as a haven for new Americans from countries such as Myanmar (Burma), Somalia and Iraq.

Over the past two decades, more than a quarter of the refugees who came to the state of New York arrived in Buffalo’s Erie County, even as native Buffalonians continued to flee to greener economic pastures. Since 2002, more than 16,000 refugees have resettled in Buffalo.

Higher rents as the price of prosperity

West Side homes that used to sell for $40,000 might now go for hundreds of thousands, said Beehag at the International Institute, straining the resources of agencies trying to find housing for refugees who may need months to find jobs. To house the around 500 incoming Afghan evacuees, agencies are relying in part on churches and universities for short-term housing.

Poverty rates in Buffalo have barely budged even as other economic indicators trend upward — leaving both refugees and longtime residents alike in danger of displacement, according to a 2019 analysis led by Adelman.

What do impoverished refugees “from countries such as Myanmar (Burma), Somalia and Iraq [and Afghanistan]” need from taxpayers? “Buffalo Bills Strike Deal for Taxpayer-Funded $1.4 Billion Stadium” (New York Times, March 28, 2022):

New York State officials have reached a deal with the Buffalo Bills to use $850 million in public funds to help the team build a $1.4 billion stadium — the largest taxpayer contribution ever for a pro football facility.

Under the deal, the state would finance $600 million of the construction costs, while Erie County, where the stadium will be built adjacent to its current home, would cover $250 million. The remainder would be financed through a $200 million loan from the N.F.L. that was approved on Monday, plus $350 million from the team’s owners.

“Taxpayers To Be Billed a Billion Dollars for Buffalo Bills’ New Stadium” (reason.com):

as Field of Schemes blogger Neil deMause parses in his detailed rundown of the stadium deal, the actual public subsidies probably exceed $1 billion—and that doesn’t account for things like interest payments on the borrowing that the state and county will likely have to do to finance the agreement. The fine print of Monday’s announcement, deMause notes, puts the public on the hook for $6 million annually for the next 30 years to fund upgrades to the stadium and another $6.6 million for the next 15 years to fund “maintenance and repair.” All told, that’s an extra $160 million in taxpayer funds pledged to the project beyond the $850 million price tag.

Related:

  • “Sports, Jobs, & Taxes: Are New Stadiums Worth the Cost?” (classic 1997 paper from Brookings)
  • “Sacking Taxpayers: How NFL Stadium Subsidies Waste Money And Fall Short On Their Promises Of Economic Development” (Heartland 2015): “Taxpayers funded more than half the construction cost of 12 stadiums from 1995-2013,” TPA says. “During that time, national median household income rose 0.3 percent across the United States, adjusted for inflation. In the dozen counties in which an NFL stadium was built using more than 50 percent public funds, however, median household income plummeted 5.7 percent during the same time. Twenty-six counties in America are home to an NFL stadium that received tax dollars between 1995 and 2013. In an astonishing 17 of those 26 counties, the median household income actually decreased in constant dollars after the stadium received public money for construction or renovation. Taxpayer-financed NFL stadiums didn’t just appear to decrease median income, they also apparently contributed to increasing the number of people living in poverty.”
  • “NFL owners approve sale of Bills to Pegulas” (2014): That payment would be for $1.4 billion. (i.e., if we don’t adjust for inflation, the cost to taxpayers, who will get nothing in return, will in the same ballpark (so to speak), as the cost to the owners)
  • “Celebrating Women’s History Month” (BuffaloBills.com), from a team that refuses to hire anyone identifying as a “woman” to be a player
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I picked up our free N95 masks

These events occurred on February 24, but I didn’t want to post then because it is a trivial story compared to what was happening in Ukraine.

Our local CVS had a sign on the door promising “free” (taxpayer-funded) masks from the central planners:

The clerk tried to give me 10. “Don’t you have a large family?” she asked, hopefully. I asked for 3, explaining that I just wanted to brag to friends about having gotten them, and settled for 5. “We have 35 boxes of these in the back,” she added, and then pointed out that the anti-SARS-CoV-2 masks are “not evaluated for antiviral protection.”

Should I feel bad about writing on a non-Ukrainian topic? Here’s today’s email from McKinsey, the world’s leading business consultancy:

How to fix the broken rung on the career ladder for women in tech

Women are promoted at a slower rate than men across all industries and roles. But in technical roles‚ including in engineering and product management‚ the gender gap is even more pronounced: just 52 women for every 100 men are promoted to manager. Diversity is crucial in technical roles because it helps debias the technologies that are an intrinsic part of modern life. Early‐career promotions are critical to success‚ so this broken rung on the leadership ladder means that companies end up preparing fewer women for senior roles. What can leaders do? Don’t miss our article on repairing what’s broken.

The email includes a photo of a person, gender ID unspecified, doing Ph.D.-level soldering (Ph.D. level because his/her/zir/their other hand is not introducing any solder near the iron’s tip):

Ukrainians are suffering right now, but an American still has mental space, apparently, for all of his/her/zir/their pre-war concerns.

Loosely related… Shutterstock shows us another world in which soldering happens without solder:

Note bare fingers on the hot part of the iron. Could this be an example of what Joe Biden was talking about in the State of the Union speech?

We’re the only nation on Earth that has always turned every crisis we’ve faced into an opportunity, the only nation that can be defined by a single word: possibilities.

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Central Planning Success! (COVID-19 tests are arriving today)

Today is the day that muscular government action brings relief from COVID-19-related shortages. Our “free” (taxpayer-funded) at-home test kits are arriving. From USPS:

These were ordered on January 19, the first day of official availability. They’ll arrive approximately 5 weeks after the tests became generally available at retail in local pharmacies.

Related:

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Why are people able to charge for fake CDC vaccination cards?

Dumb question of the day… why are fake CDC vaccination cards a marketable item? “Fake Vaccine Card Sales Have Skyrocketed Since Biden Mandate” (Pew):

The price of fake COVID-19 vaccine cards and the number of vendors selling them have shot up since President Joe Biden announced his vaccine mandate plan last week, according to a global cybersecurity company.

Check Point Software Technologies found that the typical cost of phony vaccine cards bearing the logo of the federal Centers for Disease Control and Prevention was $100 on Sept. 2. The day after Biden’s Sept. 9 announcement, they jumped to $200, according to company spokesperson Ekram Ahmed.

The estimated number of sellers also rose from about 1,200 to more than 10,000 during that period, added Ahmed, whose company has been studying the black market for fake vaccine cards.

The CDC makes a PDF for a blank card available on its web site. The information on the card can be written in by hand. A person who wanted to make his/her/zir/their own card would not even need to buy card stock because he/she/ze/they would generally be able to show a photo of a card rather than the card itself, e.g., to get into a restaurant in Washington, D.C. Clinic site and lot numbers can be copied from a card image found on the Web and/or from a friend’s legit card.

Why are people paying $200 for something that can be easily created at home? What is the skill of the referenced “black market” vaccination card vendors?

(And, given the state of American electronic medical records, how would it be possible to determine that a card was fake if the bearer copied lot numbers and clinic names from a legit card? (my booster shot record just says “CVS” in the right hand column, which could be anywhere in the U.S.) Even if the injection can’t be found in a database, should we infer from that missing record that the card is fake? How do we know that the people at the CVS did all of the upstream tasks correctly?)

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Inflation as experienced by a police officer

At a COVID-safe Super Bowl party, one of the guests was a police officer who lives in our building. She was chatting with a guy who works for a small video production company. He talked about the challenge of paying rent that had gone up more than 10 percent, health insurance that was going up almost as fast, and similar inflation woes. She expressed amazement that an employer wouldn’t provide health insurance. “The company keeps the headcount below 50 so that the Obamacare rules don’t apply,” said the pinched private sector worker.

The police officer described receiving automatic pay raises in lockstep with official government inflation numbers, which she acknowledged did not keep up with the rising cost of housing here in South Florida. Although only in her 20s, she was already looking forward to retirement. “It’s based on your highest three years of earnings,” she said. “So if you work a lot of overtime near the end of your career you can get a pension that is higher than your full-time salary.”

We asked what the real world speed limit was. “I don’t pull anyone over for speeding,” she replied. “If they’re speeding, that’s a risk that they’re taking for themselves. The State Troopers, however, will even give me tickets.”

Was it worth getting a license plate celebrating law enforcement or applying stickers evidencing a donation to a police-oriented cause? “Those are the people I worry about the most,” she said, “because I know they’ll have a gun in the car.”

What about our minivan, with its “Support Education” specialty tag? (example below)

She said “Any officer who pulls over a minivan needs to reevaluate his or her priorities in life. I won’t pull over a minivan.”

Our Jupiter, Florida police department sends in the SWAT team any time there is a search warrant to be executed. “Jupiter doesn’t have a lot going on,” she responded. “I can do that too if I want. If I pull someone over and there is a warrant outstanding, I can turn it over to SWAT.”

What about enforcement of coronapanic orders? (she worked for a police department down towards Miami, where muscular governmental intervention in the life of a respiratory virus is popular) “I won’t ticket people for not wearing a mask,” she said.

We learned that one shouldn’t be too upset when the police come to investigate a neighbor’s noise complaint. “It won’t hold up in court if there isn’t a calibrated noise measurement and we don’t have any meters,” she said.

(Why was the party “COVID-safe”? Everyone in the room was following the same mask protocols that the spectators in the stadium that we saw on TV were following and we know that California Follows the Science.)

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Report on a Southern Secession (Buckhead City)

On our return from Denver, we stopped overnight in Buckhead, the rich area of Atlanta that was annexed by the city in 1952 and that soon hopes to vote on seceding into “Buckhead City.” Our local host explained that the secession wouldn’t starve Atlanta of significant tax revenue, e.g., for schools. The big difference would be that Buckhead could fund and run its own police force (see “In Atlanta’s Buckhead Neighborhood, Rising Crime Fuels Move to Secede” (WSJ): “Potential loss of the city’s wealthiest and whitest area spurs debate as officials move to address homicides and property crime”).

From what I observed, Buckhead already essentially does fund and run its own police force. The restaurant where we dined and the hotel where I stayed both had hired off-duty police officers, clad in bulletproof vests and wearing guns, to make sure that roving thugs didn’t rob all of the customers. Immigrants from Caracas, Venezuela will feel right at home.

Here’s one from the only part of Umi, our inland sushi destination, that wasn’t too dark to photograph:

Faith in cloth masks is alive and well in Atlanta. Here are a couple of signs encountered on 1/29/2022:

Atlanta adheres to the proven-by-Science principle that if restaurant customers are wearing masks when walking in the door, it doesn’t matter how close together unrelated parties sit once unmasked and talking, drinking, or eating (we saw some counter-serve places with long communal tables that were completely jammed). The FBO where we parked had the obligatory signs reminding pilots and passengers that Uncle Joe’s 1/21/2021 order regarding masks at airports applied even to the world of private planes. Nobody inside was wearing a mask, however.

Our local host was in favor of secession. In his opinion, the city government was incompetent and plagued by nepotism.

(I am not sure how Georgia can compete with neighbors Florida and Tennessee in the long run. The state income tax rate is 5.75 percent (compare to 0% in FL and TN).)

Related:

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Finished San Fransicko

I have finished San Fransicko, the book by a self-described lifelong “progressive and Democrat” that I wrote about in Reading list: San Fransicko.

Let’s go to the solution first. The author describes 50 years of failure by California government agencies and 15-20 years of spectacular failure by state and local government agencies, with ever-growing revenue for non-profit contractors. What’s the alternative to failed state government?

What California needs is a new, single, and powerful state agency. Let’s call it Cal-Psych. It would be built as a separate institution from existing institutions, including state and county health departments and health providers. Cal-Psych would efficiently and humanely treat the seriously mentally ill and addicts, while providing housing to the homeless on a contingency-based system. Cal-Psych’s CEO would be best-in-class and report directly to the governor. It is only in this way that the voters can hold the governor accountable for the crisis on the streets. Cal-Psych would have significant buying power, be attractive to employees, and be able to move clients to where they need to be. It would be able to purchase psychiatric beds, board and care facilities, and treatment facilities from across the state. And it would be able to offer the mentally ill and those suffering substance use disorders drug and psychiatric treatment somewhere other than in an open-air drug scene.

What if someone is homeless because he/she/ze/they is consuming opioids?

Cal-Psych would do as much as legally, ethically, and practically possible to establish voluntary drug treatment and psychiatric care and would also work with the courts and law enforcement to enforce involuntary care through assisted outpatient treatment and conservatorship. The low-hanging fruit, according to Rene, is getting twenty-something-year-old opioid addicts off the street and into medically assisted treatment programs, since we have good substitutes for opioids in the form of Suboxone and methadone.

What’s in these “substitutes for opioids”? Suboxone isn’t packed with healing essential always-available-even-when-schools-are-shut cannabis, but it does contain buprenorphine… an opioid. In other words, if someone is taking too many opioids, give him/her/zir/them more opioids.

So… the solution to failed government is more government and the solution to drug addiction is government-supplied drugs.

Homelessness certainly is a growth industry in California:

Between 2010 and 2020, the number of homeless rose by 31 percent in California but declined 19 percent in the rest of the United States.2 As a result, there were, as of 2020, at least 161,000 total homeless people in California, with about 114,000 of them unsheltered, sleeping in tents on sidewalks, in parks, and alongside highways. Homelessness had become the number one issue in the state.3 Half of all California voters surveyed said they saw homeless people on the street five times a week.

A big part of the reason for the failure of the homeless industrial complex has had to do with perverse incentives, progressive resistance to mandatory treatment, and the insistence on permanent supportive housing over shelters. But it also has to do with the neoliberal model of outsourcing services. Instead of governments providing such services directly, they give grants to nonprofit service providers who are unaccountable for their performance. “There is no statutory requirement for government to address homelessness,” complained University of Pennsylvania researcher Dennis Culhane. “It’s mainly the domain of a bunch of charities who are unlicensed, unfunded, relatively speaking, run by unqualified people who do a shitty job. There’s no formal government responsibility. It’s only something we dream of. And that is fundamentally part of the problem.”23 Nobody can even accurately calculate how much money is being spent. The state auditor calculates that California spends $12 billion total on homelessness, and it is not clear how much of that is overlap with other state spending. The Legislative Analyst’s Office found many difficulties: “Difficulty assessing how much the state is spending on a particular approach towards addressing homelessness, for example—prevention versus intervention efforts. Difficulty determining how programs work collaboratively. Difficulty assessing what programs are collectively accomplishing.”

There is a philosophical-religious basis for why Californians decided that they wanted to be surrounded by tent cities:

Unlike traditional religions, many untraditional religions are largely invisible to the people who hold them most strongly. A secular religion like victimology is powerful because it meets the contemporary psychological, social, and spiritual needs of its believers, but also because it appears obvious, not ideological, to them. Advocates of “centering” victims, giving them special rights, and allowing them to behave in ways that undermine city life, don’t believe, in my experience, that they are adherents to a new religion, but rather that they are more compassionate and more moral than those who hold more traditional views.

Some more quotes on how San Francisco got to this point:

How and why do progressives ruin cities? So far we have explored six reasons. They divert funding from homeless shelters to permanent supportive housing, resulting in insufficient shelter space. They defend the right of people they characterize as Victims to camp on sidewalks, in parks, and along highways, as well as to break other laws, including against public drug use and defecation. They intimidate experts, policy makers, and journalists by attacking them as being motivated by a hatred of the poor, people of color, and the sick, and as causing violence against them. They reduce penalties for shoplifting, drug dealing, and public drug use. They prefer homelessness and incarceration to involuntary hospitalization for the mentally ill and addicted. And their ideology blinds them to the harms of harm reduction, Housing First, and camp-anywhere policies, leading them to misattribute the addiction, untreated mental illness, and homeless crisis to poverty and to policies and politicians dating back to the 1980s.

There is a chapter on Jim Jones, who was close to former mayor George Moscone and Willie Brown.

Moscone made Jones the chairman of the powerful San Francisco Housing Commission.12 Jones cultivated progressives with money and favors. He made large donations to the ACLU, the NAACP, and United Farm Workers. Jones and Moscone met privately with vice presidential candidate Walter Mondale on a campaign plane a few days before the 1976 presidential election, and Mondale praised People’s Temple shortly afterward. Jones met with First Lady Rosalynn Carter several times. Governor Jerry Brown praised Jones. Glide Memorial Church’s Rev. Cecil Williams loved Jones. There is a photo from 1977 of a smiling Williams awarding Jones the church’s “Martin Luther King, Jr. Award.”

A conservative member of the Board of Supervisors who was defeated in the mayoral election by Moscone accused the new mayor, the San Francisco Chronicle, and the rest of the city establishment of being blind to Jones’s extremism. “There’s no radical plot in San Francisco,” insisted Moscone, in response. “There’s no one I’ve appointed to any city position whom I regard as radical or extremist.”

Brown was master of ceremonies at a dinner for Jones in the fall of 1976 attended by an adulatory crowd of the rich and powerful, including Governor Jerry Brown.

San Francisco’s establishment stood by Jones even after a California magazine, New West, owned by Rupert Murdoch, published an exposé of Jones’s beatings of Temple members and financial abuses in August 1977. The article was written by a San Francisco Chronicle reporter and was meant for the Chronicle to publish. But the newspaper killed the story because it didn’t want to alienate Jones, whom it viewed as central to its plans to expand the Chronicle’s circulation in the heavily African American Fillmore District. Jones also managed to avoid investigation and prosecution in part by getting the district attorney to hire as deputy district attorney Jones’s longtime attorney and confidant.

Harvey Milk, too, was tarnished by his association with Jones. In the fall of 1977, Milk wrote to President Carter’s secretary of health, education, and welfare requesting that Social Security checks be sent to elderly Temple members in Guyana. “People’s Temple,” wrote Milk, has “established a beautiful retirement community in Guyana.”

“Even as the bloated bodies of the dead were removed from the jungle and the wounded were airlifted by the U.S. Air Force to hospitals in the United States,” wrote a historian, “Brown said he had ‘no regrets’ over his association with Jones.” They repeatedly disavowed responsibility. Said Moscone, “it’s clear that if there was a sinister plan, then we were taken in. But I’m not taking any responsibility. It’s not mine to shoulder.”

Moscone was ultimately killed by Dan White, an anti-Progressive former firefighter. The author tries to explain how Dan White was acquitted of what certainly looked like premeditated murder:

The jury appeared to pity White. What seemed to be particularly influential was a recording of White breaking down in tears during his confession to the police.

Playing the victim, or what researchers call victim signaling, appears to be working better than ever. Society’s definition of trauma and victimization is broadening, researchers find. As a result, there are more people who identify as victims today, even as actual trauma and victimization are declining. Researchers find that people are increasingly “moral typecasting,” or creating highly polarized categories of “victim” and “perpetrator.” And they find that people who portray themselves as “victims” believe they will be better protected from accusations of wrongdoing. In one study, participants judged how responsible an imaginary car thief was for his actions. One group was told that he had a genetic oversensitivity to pain. The other group was not given that detail. The people in the group who were told that the man was oversensitive to pain held him less responsible for his action.

Victim signalers are more likely to boast of their victim status after being accused of discriminating against others, or of being privileged. And so-called virtuous victims, people who broadcast their morality, alongside their victimization, are more likely to gain resources from others, researchers find, and display Dark Triad personality traits, than victim signalers who did not signal their virtue.

San Fransicko is worth reading, if only to see just how bad things can get for the middle class and even upper middle class before the elites need to worry about losing elections or personally experiencing anything negative. I find it tough to believe that the author’s proposed solution, a new massive state bureaucracy, would be effective. Suppose that the new state agency worked precisely as hoped, unlike any of the previous or existing government initiatives described in the book. If California were then to deliver on its promises to its current homeless, why wouldn’t that attract a more or less unlimited supply of new homeless people from other states, other countries (just walk across the border), etc.?

In the meantime, since California progressives are so passionate about helping the homeless, the least that folks in other states can do is purchase bus tickets for any homeless person who wants to go to California!

Greyhound bus photos below are from February 2020, Los Angeles Museum of Contemporary Art, currently a Deplorable-free environment:

THE CITY OF LOS ANGELES REQUIRES PROOF OF FULL VACCINATION TO ENTER THE MUSEUM. At MOCA this policy applies to all visitors 12+.

What counts as proof of vaccination? You must provide both:

  • Your vaccination card issued by the U.S. Center for Disease Control and Prevention (which includes the name of the person vaccinated, the type of vaccine provided and the date(s) dose(s) administered), or similar documentation issued by another foreign government agency, such as World Health Organization, a digital vaccine record, a legible photograph of the vaccination card, or documentation of a COVID-19 vaccination from a healthcare provider; AND
  • Your photo ID.

(It is not in any way racist to require a photo ID.)

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Exploring the land value tax

The U.S. Congress is getting back to “work” soon, trying to figure out how to squeeze enough tax revenue from Xbox-oriented Americans to fund all of the government programs that we dream of enjoying plus the $10 trillion in coronapanic spending that we indulged in.

Let me recommend “Does Georgism Work? Part 1: Is Land Really A Big Deal?” (12/8/2021) and “Lars Doucet On Taxing The True Value Of Land” (12/15/2021), which is on one of my favorite topics, a Land value tax. The basic observations are (1) an income tax discourages people from working and earning money, which is what most of us want our fellow citizens to do (exception: those of us with jobs in the welfare-industrial complex, homeless-industrial complex, and migrant-industrial complex), (2) a property tax on the value of buildings discourages people from creating nice buildings, which is what most of us want our fellow citizens to do (exception: me, because I am sick with envy when someone else has a nicer house than our 2BR apartment). From these observations, it then becomes obvious that taxing the value of underlying land is a good idea because no matter how high the tax is, the land won’t go away (since it is neither produced nor destroyed by human effort).

Unlike most folks who are enthusiastic about this form of taxation, Doucet has put some thought into what a transition would look like. Some excerpts from the 12/15 piece:

To start things off: a friend of mine bought an apartment near a future station on the not-yet-built extension of the New York subway, thinking the value of the apartment would rise once the station opened. Obviously she didn’t build the subway, and didn’t pay for it any more than any other New York taxpayer. Can you talk about that example from a Georgist perspective? Under Georgism, what would happen to taxes in a neighbourhood when something like a new train station gets built?

Lars: So when you buy land in a major city, or next to planned areas of development, hoping that the value will go up, what you’re really hoping for is to profit off of the hard work and investment of your neighbors and government spending. Imagine two locations for a hot dog stand: the middle of the desert, and an empty lot next to the Empire State Building. Obviously I’ll sell more hot dogs in the second location, but clearly it’s the people and city of New York that have made that second location more valuable.

The example you bring up is particularly salient because we have this trap where we expect the government to provide us with services, but then those services cost money, so we tax people’s income (labor) and investments (capital) to fund them, or just put the government in debt to do it (which ultimately manifests as indirect taxes on labor and capital in the form of interest payments and inflation). And then, land values for properties closest to those services rise. Who captures that added value? Whoever was smart enough to buy up land real cheap before We The People started doing some public spending. So essentially our current scheme creates this bizarre cycle where we tax both the labor and the savings of Americans in order to provide public works, which have the side effect of subsidizing people who speculate on land, who not only aren’t doing anything for the economy, but are actively making the housing crisis worse by bidding up the price of land.

Land value tax is already better than neutral. The point isn’t just that it “doesn’t distort” the economy, it un-disorts the economy, because the “private tax” levied by the gatekeepers of land, location, natural resources, and other monopolies is already imposing a productivity drain on our economy.

Just to drive the point home, we’re not wanting to tax land just because it’s more “efficient,” or whatever. We’re doing it because land is scarce and rival. To own land means to exclude others from it. Given there’s only so much of it, and we can’t all use the same land, and we all absolutely fundamentally need land, it’s a simple matter of justice to say that if you want to exclude the rest of society from a piece of land, you should compensate society, since you did nothing to make that land exist in the first place.

There are three things that come together when humans produce things — land, labor, and capital. We call these inputs the “factors of production.” We can increase labor, and we can increase capital, but there’s not a dang thing we can do to increase land — “it’s the one thing they’re not making any more of.”

But what does it mean when the owner of the land “provides” land? It’s not like they created it, and it’s not like if we don’t pay them for access to it the factor will somehow go away, which is what happens when you stop paying labor and capital. Gatekeeping access to land isn’t productive, but in our society it entitles you to a share of the produce that labor and capital produced. And as I’m prepared to show, it entitles you to a really huge outsized share at that, essentially a private tax on the entire economy.

Lars: Right, so the problem is if you try to knock down the housing ladder all by itself, you’re going to make a bunch of people really mad because they only did what was rational under the old system, broken as it was. That feels like a rug pull and it’s certainly a political headwind you have to take seriously, and it’s also a matter of fairness.

Gordon Tullock calls this the “transitional gains trap,” using the example of taxi medallions. The first generation that buys into the system gets in cheap and enjoys outsized gains, but the next generation has to pay “full price” for it. Sure houses appreciate over time because of the land values, but the person who just bought one had to really shell out for that privilege and hasn’t had much time to reap the rewards. So even if transitioning to a non broken system makes everybody better in the long run, the pain to change over is too much for some people.

There are four different ways to do it. The first is just to phase in land value tax gradually over time, like say, over 20-40 years. The challenge with this is that’s going to be quite a political feat to get it to stick over many generations of politicians.

The second is to levy land value tax as a sort of lien, something that you don’t have to pay until you sell the property, or pass it on to your heirs. So grandma and Farmer Brown aren’t going to be kicked out of their homes because of the land value tax. And just for the record, Farmer Brown’s land value isn’t going to be super high anyways — farmland is pretty cheap, it’s urban land that’s expensive. Farmer Brown will likely just get a tax break compared to what he’s currently paying in property taxes.

I hope that I’ve inspired you to read “Does Georgism Work? Part 1: Is Land Really A Big Deal?” and “Lars Doucet On Taxing The True Value Of Land” and then, for the next step, that you become a U.S. Senator and can actually act on your knowledge. Perhaps you can replace Senator Karen and Elon Musk won’t be distracted from creating the minivan-with-dog-mode that I crave.

Mangrove trees in Fort Lauderdale. Nobody told them “they aren’t making any more land.”

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The FAA burdened helicopter charter operators with rules to install useless radar altimeters that are now disabled by 5G

FAA punches a hole in the U.S. economy today” (2017):

Today is the day that FAR 135.160 goes into effect. This requires a radar altimeter (“radio altimeter” in the FAA’s parlance or “radalt”) for most U.S. helicopters. The device will display the number of feet the aircraft is above the ground. Every airliner that was ever crashed into a mountain had one of these. What stopped the crashes was the terrain awareness and warning system (TAWS).

Radalt was useful in the old days because it could ring a bell for the pilots when the aircraft was, e.g., 200′ above the ground on an instrument landing system approach. If neither the runway lights nor approach lights were in sight at that point it was time to add power and fly back up into the air (“missed approach”).

Even in 2014 when this rule went into effect it was unclear why it would be a good idea to stuff a radalt (cost range: $17,000 to $100,000 depending on aircraft and whether installed new or retrofitted) into a helicopter rather than GPS+database TAWS system that can say “There is a big radio tower ahead!” or “Climb because you are about to crash into the ground.”

The new rule applies even to helicopter operations that are limited to visual flight. The chance that the pilot is looking down at the instrument panel is small (10-20 percent) because the aircraft is being controlled by reference to the natural horizon. Combine that with the chance that the pilot would be looking at the radalt number and I would say that there is a near-zero chance that a pilot in a dangerous situation would ever become aware of the radalt value.

Now it turns out that the FAA won’t allow the use of this mandatory equipment anywhere that there is 5G coverage at similar frequencies: “FAA Issues SAIB on 5G Radio Altimeter Interference”.

“AT&T, Verizon Refuse FAA Request to Delay 5G Launch” (WSJ) says “France is among the countries that have imposed wireless limits near airports while regulators study the effect the signals have on aircraft.” “AT&T and Verizon agree to postpone 5G rollout near airports by 2 weeks” (CNN) indicates that we are on track to copy the French system, but this can’t work for helicopters because the whole point of the machine is to be able to land places other than airports.

So one part of the government orders people to spend up to $100,000 on a device that has no practical value and then orders them not to use it because a different part of the government authorized transmissions that generate interference…

(What’s the practical importance of a radar altimeter failing due to 5G interference? The weather has to be pretty ugly before the radalt is essential on a modern airliner. At a typical flatland airport, the minimums for a “CAT I” ILS approach include clouds no lower than 200′ above the runway and visibility of at least 1/2 mile. If the weather is worse than this (think “fog”), there are CAT II and CAT III approaches that can be used by trained and authorized crews. These are the ones that always require a radar altimeter, which is used to inform the crew that it is time to initiate a go-around if the runway is not in sight and, for the highest level of CAT III approach, to cue the automated systems to initiate a power reduction and flare (pitch up).)

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COVID-22 for those renouncing U.S. citizenship

“Americans seeking to renounce their citizenship are stuck with it for now” (Guardian):

For almost two years, since the pandemic struck in March 2020, most US consular missions around the world have suspended their expatriation services for those wishing to give up US citizenship. The US embassy in London, the largest of its sort in western Europe, announces on its website that it is “currently unable to accept appointments for loss of nationality applications” and is unable to say when services will resume.

My friend who lost his passport circa March 2020 remains stuck in the U.S. His COVID-22 situation is that replacing a passport requires an in-person interview, but no in-person interviews have been available for the past two years.

One thing that coronapanic has demonstrated is that government is the least adaptable of enterprises. Friends’ kids who were in private school back in Maskachusetts left their in-person school on a Thursday afternoon in March 2020 and on Monday morning they started back up in Zoom-based school, with teachers working their regular 6 hours per day and delivering the planned curriculum to the planned standards. Maskachusetts public school children, on the other hand, did not begin to receive any education until September 2020, unless you count teachers hosting one or two hours per week of Zoom chat with no required assignments or grades. Similarly, the government hasn’t been able to develop any alternative processes for passport replacement or citizenship renunciation. Yet half of Americans vote enthusiastically for a bigger government that will be responsible for more aspects of American life.

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