A single public employee union spending $87.5 million in the 2010 elections

According to this Wall Street Journal article, a single public employee union is now the biggest spender in the 2010 elections, aside from candidates themselves. I.e., a union representing 1.6 million government workers is spending $87.5 million to encourage voters to reelect the politicians who give them pensions, pay raises, and other benefits. That’s more than the political spending of the entire U.S. Chamber of Commerce, which represents 3 million tax-paying businesses that collectively must employ tens of millions of private-sector workers. In “History of Public Employee Unions” (2009 posting), I learned that the idea that public employees could or should unionize is relatively new, less than 50 years old in most parts of the U.S. Thus after 50 years we may have reached a point in which politicians and government workers constitute a fully self-contained system in which politicians are guaranteed reelection and the workers are guaranteed much higher pay and benefits than private-sector taxpayers.

Related video: fireman talks to citizen.

Related analyses: several interesting articles in the Cato Journal, 30(1).

[These statistics aren’t the full story, since most unionized government workers belong to unions other than the one profiled in the WSJ (the New York Times says that there were approximately 7.9 million unionized government workers in 2009) and those unions will be spending independently. Companies that give money to the Chamber of Commerce to spend on political activities may separately support particular candidates (though really they are better off doing it through the Chamber because a company that supports one politician or party may alienate customers).]

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The banks are still scared of the American consumer

I got a credit card in the mail today from Chase. I had no idea that this account existed and I don’t need a thicker wallet (well, thicker with cash would be nice, but not thicker with plastic), so I called them up to cancel. I expected the agent to ask me why I wanted to cancel, offer me a higher credit limit, or make some other attempt to retain me as a customer. Instead, he said “Thank you. We’ll notify the credit reporting agencies within 30-60 days that this account has been canceled.”

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Las Vegas, Minden, Seattle, Fargo trip report

Here’s my report from a week of copiloting a friend’s fancy airplane.

First overnight stop was Las Vegas, which meant that we got to see the Grand Canyon, a spectacular sight even from 30,000′. One of the few dog-friendly hotels that I could find was the Loews resort in Lake Las Vegas, an artificial lake whose water is sucked out of adjacent Lake Mead and then pumped back in. It is pretty far from the Strip and was intended to be a self-contained dreamland of irrigated golf courses, Italianate condo complexes, and luxury hotels. They went bankrupt in 2008, sticking creditors (i.e., probably the U.S. taxpayer) with $1 billion in debt that would never be repaid. The casino and former Ritz Carlton hotel are both shut down. There are major gaps around the lake where the land was bulldozed in preparation for condo development, but no buildings were ever constructed. The condos that were built are about 5 percent occupied, based on my survey of evening lights in windows. Condo fees are $1 per month per square foot, or about $1000 per month on a two-bedroom apartment. They’ll have to go much higher unless a lot more people move in, since effectively the owner of one condo will have to pay for maintenance on about 20,000 square feet of space.

I took Ollie (four month old Border Collie) for a walk on the bluffs that formerly looked over Lake Mead. The lake is about half empty due to a combination of drought and the Southwest’s thirst for Colorado River water. It is expected to dry up completely in the next 10-20 years. A family of coyotes was living on what had been a boat ramp. Perhaps they are waiting for the humans to abandon Lake Mead and Lake Las Vegas and they’ll move into the condos. In a fit of optimism back in the 1950s and 1960s, the government built Glen Canyon Dam, upstream from Lake Mead but on the same river. The chance of there ever being enough water to fill both reservoirs is minute (the dams were built and water allocated based on data taken from the wettest century in 1000 or so years (source)).

Ollie enjoyed a trip to his first dog park in Henderson, Nevada. This is a fantastically efficient use of tax dollars in my opinion, creating a gathering place for taxpayers to enjoy each others’ company. Instead of a $14 billion tunnel to nowhere, the city built a few fences, put in some rugged agility equipment, and provided some shade and freshwater. I hadn’t been there too long before 30 police cars arrived to the development across the street and then four armored cars with “SWAT” painted on the side. The woman next to me said “Everyone in Las Vegas is first generation money. These people came from trailer parks. The wife got a job in a casino and the husband in construction. They had two kids, bought three cars, two jetskis, two ATVs, and kept taking out mortgages to pay for it all. When the economy headed south they just couldn’t handle being poor.” The incident barely made the news when I checked. A guy upset about his divorce was holed up in a house threatening to kill himself. He ultimate set the house on fire and ran out, but was apprehended.

We proceeded on to Minden, Nevada, just east of Lake Tahoe, where the soaring is some of the best in the U.S. We took a few glider lessons at Soar Minden, but unfortunately there wasn’t much lift. We left Ollie with the gals behind the desk at the Holiday Inn and went out for Basque food at JT’s. Minden and Gardnerville are home to at least three Basque restaurants due to an original community of Basque sheep herders who moved there when the West was settled (invaded?) by Europeans.

Seattle was mostly devoted to keeping Ollie entertained and killing off his intestinal parasites. I stayed at the University Inn, a simple hotel next to the University of Washington. The U has a literally awesome campus, with massive concrete buildings that tower above pedestrians. They have a tiled “Red Square” that is big enough to land a spaceship. I’ve already covered the scene at the dog park and at Norm’s, a dog-friendly restaurant, so I’ll limit myself to writing about the university neighborhood. Aside from a few sandwich shops, the restaurants around the university seemed all to be Asian or Middle Eastern. A lot of students were themselves Asian or Middle Eastern (complete with Islamic headgear for the women), but not nearly as high a percentage as you’d think from seeing all of the Teriyaki, Korean, and Falafel restaurants. Unlike Harvard and MIT students, most of the UW undergraduates had little or no interest in a puppy. What they were interested in was a visit by Barack Obama (story), which shut down much of the city and all of the airports for nearly 24 hours (a “revenue holiday” for area flight schools, charter operators, and other aviation businesses; we’re getting one here in New England on Monday (see this temporary flight restriction); our last Obama-imposed day off was a week ago when he came to Boston for a Democratic Party fundraiser (story)). I thought it was odd that students would be so enthusiastic about a politician who is spending all of their future income on gold-plated public works projects, unsuccessful wars, and expensive health care and pensions for older Americans. Then I reflected on the fact that if this generation isn’t well educated enough to get a job after graduation perhaps they recognize that they aren’t well educated enough to spend their own money; they need a wise government to spend it for them.

My one cultural excursion in Seattle was attending an outdoor rehearsal of Titanium Sporkestra, a tattooed marching band (video) undeterred by the cool evening air down by the waterfront. Ollie turns out not to be a huge fan of the bass drum.

After Obama had departed we were able to get access to our airplane at Boeing Field, fuel up, and depart. Air Force One was gone, but we taxied past Air Force cargo planes that had been ferried down from Alaska to carry SUVs for Obama and his entourage. We enjoyed a beautiful flight over the Cascades and Montana Rockies with the setting sun behind us, then landed around 9 pm in Fargo, North Dakota. The Holiday Inn there was hopping with a Shriner’s convention. In the morning we departed for Hanscom Field and arrived to find the wind at 20 knots gusting up to 27 knots, the most challenging conditions of the entire trip. My friend handled the landing beautifully, carrying a bit of extra airspeed and pulling back the power a little slower than usual. The touchdown was smooth and we hardly used any runway. Ollie ran from the airplane into the East Coast Aero Club maintenance hangar to see his friends, whining with delight at the sight of Claire.

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Now I’m in favor of Don’t Ask, Don’t Tell

Never having served in the military, I did not have an opinion regarding the Clinton-era Don’t Ask, Don’t Tell policy. Traveling with a Border Collie puppy who yips and barks in a mournful manner when left alone for even a few minutes in a hotel room, however, I now realize the value of the idea.

After a haircut (for me) in a dog-friendly barber shop, Ollie and I had dinner this evening at Norm’s Eatery and Ale House (yelp). There were a lot of dogs underneath the tables in the restaurant. How can that be legal in dogophobic America? The restaurant doesn’t ask whether or not an incoming dog is a service animal. The patrons don’t tell the restaurant whether or not an incoming dog is a service animal. Ergo, as far as the restaurant knows, all of the dogs in the restaurant are service animals.

[I do wonder why Americans are so paranoid about dogs to the point that it would be illegal in nearly all states for a restaurant to say “we allow dogs”, giving the dogophobes fair warning. No dog has ever given a human AIDS, swine flu, a cold, malaria, herpes, or any of the other contagious diseases that occupy folks’ imaginations.]

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Vet care versus human care in the U.S.

Back in May, I posted an entry about my $83 physical checkup that took six months to schedule and required skilled negotiators at both the doctor’s office and the insurance company to bring the bill down from $510. A paper invoice was mailed to my house and a paper check for $15 mailed back in response.

This morning I called a veterinarian in Seattle to ask if she could see my four month-old Border Collie and investigate his tummy problems. The receptionist offered an appointment not six months later but six hours later. Instead of a multi-page HIPAA form, insurance forms, and demands for my Social Security number, the animal hospital asked for my street address and phone number. Instead of waiting for 20-60 minutes to see the doctor, I was seen at the appointed time. I paid the $67 checkup bill on the spot with a debit card.

[How’s the animal, you may ask? I’m awaiting the results of a test for parasites. His stomach problems don’t seem to be interfering with his demonic energy, as shown in this Motorola Droid 2 videos, captured shortly after the vet visit: with adult Border Collie; with another puppy]

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Economist magazine looks at U.S. pension obligations

The Economist has this article on U.S. pension obligations. The chart is interesting. Assuming that the pension funds are able to achieve their most optimistic dreams of an 8 percent annual return on investment, the U.S. states in the chart will run out of money in their pension funds in between 8 and 20 years. Once the funds are exhausted, the pension obligations will consume between 30 and 55 percent of forecast tax revenues.

Separately, an NBER researcher says that we shouldn’t fund public pensions at all, but simply raise taxes when the money is due (PDF paper). Towards the end he simplifies his argument: “Why should taxpayers vote to accumulate assets in a public retirement plans that buys Treasury notes yielding, say, 2% when they are paying 15% interest on their credit cards and 7% on car loans?” If the state needs money in 2020, why should taxpayers borrow money now to pay higher taxes when instead the taxpayers could borrow less and pay higher taxes in 2020? If this guy is right, our public employee pension funds are ridiculously overfunded.

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Stimulus spending on infrastructure projects

A few recent articles related to government spending on infrastructure projects.

The first is a New York Times article about Japan’s failure to recover from its early 1990s slowdown. The article does not mention the fact that the U.S. government has been doing exactly what the Japanese government did, i.e., spending money on expensive infrastructure projects and on protecting big established companies (like the Detroit automaker bailout).

As an example of where government stimulus money goes, here’s an article on a $500 million project to build a few miles of light rail in Detroit. It seems odd that anyone would want to build additional transportation infrastructure in a city that is depopulating as rapidly as Detroit. One would naively think that the existing road network would be more than ample for a city whose population is about half of what it was when the roads were laid out (source). See also: this video.

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Barack Obama and personal convictions

One of the things that has confused me most about Barack Obama is how he has failed to act on his expressed personal convictions. I would have thought that one of the luxuries of being President of the U.S. is that one would be able to do whatever one wanted, mostly, at least for four years. For example, Obama has said that he is against the wars in Iraq and Afghanistan. He could have ended both with the stroke of a pen and brought he troops home on January 21, 2009. Yet he did not.

In some ways the latest argument over gays in the military is even harder to understand. Obama has said that he is against any restrictions on gays serving in the military. A federal judge handed him exactly what he said that he wanted, i.e., an injunction preventing the military from treating gay soldiers differently from straight soldiers. You would think that he would have checked that one off his list of goals and proceeded to work on other stuff. Instead, we learn from this nytimes article that Obama is mobilizing a swarm of government lawyers to fight the judge’s ruling and preserve the Clinton-era “Don’t Ask, Don’t Tell” policy.

It seems odd that Obama has put so much effort into expanding government power in areas never previously imagined, e.g., to force every American to buy health insurance, but won’t use the powers that everyone agrees that a U.S. President has had for 200+ years, e.g., to bring troops home or to let a judge’s ruling stand unchallenged.

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Glenn Beck and the Class of 2010

If you’re a parent of a recent college graduate, still smarting from the $200,000 expense, and the kid has turned out to be unemployable, it may be worth a visit to Glenn Beck’s Wikipedia biography before shelling out for the younger sibling’s college degree. It seems that Glenn Beck graduated high school and never enrolled in college (though as a 32-year-old he signed up for a single class at Yale). Wikipedia shows that he has a “salary” of $32 million per year.

[In case anyone is motivated to ask, I am not a Glenn Beck fan. I have only seen parts of his show a few times while in various aviation facilities, all of which seem to have Fox News playing in the pilot lounges. This blog entry was prompted by a friend claiming that Glenn Beck was a Yale graduate, which struck me as unlikely based on what I’d seen of his show. Regardless of his achievements as a TV personality, I am very impressed by his return on investment in education!]

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