Billionaire Raj: only a bigger government can address the inequality create by a big government

I’m listening to the Billionaire Raj on Audible. For those of us who live in a U.S.-centric bubble, there is a lot of interesting modern history regarding India’s most successful people and enterprises, including Mukesh Ambani who lives in a $2 billion house in Mumbai and was rich enough to spend $30 billion building a from-scratch mobile operator called Jio. Some of the success seems to come from rapid growth in an immature economy, which therefore offers niches that don’t exist in Germany, Japan, or the U.S. (what start-up could realistically compete with Verizon, for example?). The author attributes most of the success, however, to cronyism. Current Indian billionaires were those who got early licenses and permits from paid-off friends in politics and government. Maybe they don’t need to bother with bribes now because they have huge market share and momentum.

The author, James Crabtree, makes righteous-sounding statements about the dramatic income and wealth inequality that prevails in India today. Implicit in his decrying of the current situation is that the Indian government needs to grow in size and capacity until money can be taken away from the undeserving billionaires and distributed to the worthy poor. He draws dozens of comparisons between India’s current crop of billionaires and the robber barons that grew rich in the late 19th century United States.

The book itself contradicts this comparison. Crabtree paints India pre-1990 as having a centrally planned economy with at least as many restrictions as the Soviet Union. Nobody could buy or sell anything without approval from a government bureaucrat. Nobody could get on a plane and leave the country without government permission. The Indian government, even in its stripped-down post-1990 form, is vastly larger and more powerful than the U.S. government was in the 1800s.

There are some good sections on the infrastructure of corruption. Most people don’t know how to bribe government officials and wouldn’t want to learn how. Thus, a corrupt society encourages the development of a layer of middlemen agents who obtain the required permits from government officials. If they’re paying bribes, the customer of the agent never need know.

Ever wonder why the folks calling with credit card refinancing scams all have Indian accents? There are plenty of people worldwide who speak English and quite a few are willing to work at low wages. Crabtree makes the case that India has the world’s richest and deepest tradition of corruption.

The author studied government and public policy and his proposal for India is essentially that government be “reformed” so that bribery and inefficiency are eliminated in favor of enlightened technocracy. Once that is done, presumably, then an Elizabeth Warren-style sanding down of the billionaires will take place to address the scourge of inequality.

Yet it is unclear how this glorious reform is to be achieved. The author describes Indian politics as driven by castes competing for victimhood status and parties promising to dole out government jobs and other government-controlled resources to victim castes. All party activities are fueled by cash from successful businesses and business owners. (Corrupt politicians are punished, however; after 18 years of prosecution and procedure, J. Jayalalithaa was sentenced to 4 years in prison (she served one month before returning to office).)

Ultimately the book is unconvincing regarding the source of wealth of current Indian billionaires. The book describes some of them going bust after making investments that were a bit too daring. The book describes Ambani being unable to get the government to approve helicopter operations off the roof of his $2 billion house. If he’s a government crony, why can’t he get his helipad? GE was able to get their cronies in the City of Boston to approve a helipad in South Boston that nobody else had been able to get (a condition of GE moving its HQ to Massachusetts). Certainly it seems that the Indian billionaires gambled big and won big as the economy continued to grow. And probably they faced a less competitive environment than in some countries with smaller governments and markets closer to the Econ 101 ideal.

Despite the logical contradictions and absurd dreams of hyper-efficient and hyper-honest government in a country that has a multi-century tradition of the opposite, the Billionaire Raj is useful for shaking the American reader out of the notion that the U.S. and China are the only places where big business happens.

Full post, including comments

Donald Trump is making a huge financial sacrifice by serving as president?

In my review of the Trump Hotel, D.C.:

Given that the intensity of Trump hatred among Democrats is much stronger than the intensity of Trump love among Republicans, I wonder if the narrative that Trump hotels are getting a boost in business from his presidency is false. Maybe there are some folks who think it is fun to be a Trump customer and perhaps there are some foreigners who think that Trump will do their bidding if they are regular guests. But these have to be outweighed by those who want to demonstrate their virtue by never setting foot in a Trump-named enterprise again.

The same journalists who previously attacked Trump for getting rich off the Presidency are now gleefully reporting that his hotels are suffering losses are a result of his political prominence, e.g., “Trump Tower Chicago Hotel is Losing Money Hand Over Fist” (Vanity Fair):

In addition to the Chicago property, business at Trump Doral in Miami is also reportedly in “steep decline,” which a tax consultant hired by the Trump Organization attributed to the “negative connotation…associated with the brand.” The company has also lost contracts with hotels in Manhattan and Toronto. And in a sign that even people inside the family business know the name is dragging down profits, virtually every mention of “Trump” has been stripped from two Central Park ice rinks. Earlier this year, the Trump Organization, which declined to comment on its financial woes, attempted to blame the money situation in the Windy City on “the perceived threat of gun violence,” despite the fact that no other competitors have suffered a similar decline. “Among the hotel community in Chicago, everyone is aware of the relative underperformance of the Trump hotel over the last two to three years,” analyst Michael Bellisario told the Post at the time.

Will it turn out that the Trump family was actually the most altruistic ever to go into American politics?

Full post, including comments

Lesson from India: Buy gold before Elizabeth Warren is elected

I’m listening to the Billionaire Raj on Audible. The author says that intensive government regulation (the Licence Raj) and high income tax rates motivated Indians to operate a “black money” economy in which transactions were carried out with cash, gold and savings were stashed in real estate and gold, and the slow-moving wheels of government bureaucracy were lubricated with confidential payments in gold. In fact, it is possible that the massive size of the Indian economy and this massive unexpected need for gold is what has been keeping the price of gold so high over the last 20-30 years.

What if Elizabeth Warren were to be elected in 2020? She proposes more intensive government regulation and dramatically higher tax rates. Might this lead to increased demand from Americans for gold, as the same policies did in India?

Full post, including comments

U.S. Air Force as an employee welfare enterprise

“Barrett Sworn In As Secretary Of The Air Force” (AVweb):

As Secretary of the Air Force, Barrett is responsible for Department of the Air Force affairs including “organizing, training, equipping and providing for the welfare of 685,000 active duty, Guard, Reserve and civilian Airmen and their families,” along with overseeing the Air Force’s $205 billion annual budget, directing strategy and policy development, risk management, weapons acquisition, technology investments and human resource management. “The Airmen who wear our nation’s uniform are our greatest asset and treasure,” she said in her remarks following the swearing-in. “We have no greater charge than to develop and care for them and their families.”

Just as on the Air Force base where our flight school operates, there is no message about defeating our enemies. It is all about the employees!

What about the previous Air Force Secretary? Here’s an interview with Heather Wilson:

Wilson said her responsibilities as SecAF were broader than those of any other executive position she held…she was obligated to the welfare of 685,000 Total Force Airmen and their families, and the oversight of a $138 billion annual budget.

(Separately, if Donald Trump is hostile to Americans who identify as “women”, as his opponents claim, why did he nominate two such individuals in succession to this job?)

Full post, including comments

Twin Commander pilot departs on a pole-to-pole flight

Check out this comprehensive web site on a pole-to-pole flight in a Twin Commander (turboprop) scheduled to start today. The pilot, Robert DeLaurentis, dead-sticked a Lycoming-powered Piper Malibu Mirage into Kuala Lumpur (newspaper story, short on tech details) during a previous round-the-world trip, which is the subject of Zen Pilot.

The Zen Pilot book explains a fair amount about the Malibu trip and the oil system failure. The reputation of the Malibu Mirage is that the engine does not need any encouragement to fail. However, DeLaurentis had equipped the plane with an aftermarket system for adding oil to the engine from within the pressurized cockpit. Airplane engines that are burning nearly one quart of oil per hour will still fly for 3-4 hours without incident. What if one has planned a 12-hour flight, though? It might be possible to burn through all of the oil. So DeLaurentis had the ability to add a quart at a time. Some part of the aftermarket piping likely came loose or was damaged by the Malaysian mechanics trying to change the oil.

Some excerpts from Zen Pilot, whose author seems to be a true son of California:

By anybody else’s measure, I was living the American Dream. I had grown my real estate business to one hundred units. I had all the material comforts anyone could hope for. Yet, I had hit a wall taller than the highest thunderstorm I would face in my years of flying. I was holding myself back from the life that I wanted, and inside me was an emptiness I yearned to fill. My entelechy was nudging me, telling me that at forty-five years of age, I had less and less time to fulfill my life’s true intentions. One day, as I took my daily walk through Balboa Park, something changed. I had begun not to just notice the sights, sounds, and smells I had experienced on my previous walks, but to feel gratitude for them. I determined at that moment to begin my journey to bring purpose and passion into alignment with a higher power. I knew that if I had an impossibly big dream, the Universe would get behind me and partner with me. The resistance would fall away and things would start to flow, slowly at first and then at a feverish pitch.

In the next four years while completing an advanced degree in spiritual psychology with an emphasis in consciousness, health and healing, …

How does a Californian get rich enough to purchase a Piper Malibu and fly it around the world without a plaintiff coming in and taking 75 of those 100 units away via a California family court lawsuit? The author notes that he was never married and had no children. This enabled him to buy a 1997 Malibu in the 18th year and 1400th hour of its life.

Envy the luxury and elegance of traveling around the world in a private airplane?

The survival gear I carried with me on my trip weighed about forty pounds. During my flight I wore my neoprene survival suit, which I not so affectionately referred to as my “Gumby suit.” It smelled like perspiration and rubber and was designed to cover the entire body from head to toe and form a tight seal around the face. Imagine a red ping pong ball floating on the water getting kicked around by waves for hours on end while taking in an occasional mouthful of saltwater, with God only knows what swimming around you. I also had packed items including a life raft, lighted life preservers, dye packets, fishing gear and a knife and an ax to cut my way out of my seat belts and the plane if necessary. My plane had an onboard satellite locator beacon and I wore another one around my neck. The survival bag had backup handheld marine and aviation radios as well as a satellite phone. Additionally, I was required to carry several million dollars in survival insurance; I had evacuation and medical insurance as well.

A critical part of this kit is the Garmin inReach satellite SOS and text message handheld.

If women are the new children, what happens when a white adult male sets off to conquer the vast oceans with one middle-aged piston engine? No mucho, as they say in San Diego:

My digital marketing PR team had crafted and released an amazing press release the day before my departure. We hoped the sendoff would have reporters from major TV channels, newspapers and radio stations. Surprisingly, the media was nowhere to be seen.

How well does Piper’s notoriously Mickey Mouse landing gear hold up on the round-the-world odyssey? It fails less than one minute into the first leg:

At four hundred feet above the runway my landing gear failed to properly retract. I was dragging my nose wheel. The engine—a 350-hp Lycoming twin turbocharged one—was at full horsepower trying to deal with the extra weight of the ninety gallons and 540 pounds of extra fuel I was carrying.

Maybe a TBM next time!

Like everyone else who isn’t an airline pilot, he has trouble using and interpreting the onboard weather radar.

Our California hero gets some advice from a young MIT hero:

I recall a text response I got from fellow earthrounder named Matt Guthmiller when I inquired what weather site he used. He said that he found most of the weather info worthless once he got into Asia because the different weather reporting services forecast towering cumulous clouds and thunderstorms every day. So you would either park your plane and not fly for the next two months or deal with it. He was right. Flying without reliable weather reporting around the world was a chilling point to consider.

Controllers in foreign countries make the author appreciate FAA-run ATC. Our Malibu pilot gets vectors into weather that might make sense for a heavy jet with hot wings. Foreign airports similarly make the author appreciate even the most rapacious U.S. FBO. Muscat, Oman is a particularly bad stop. The author is left out on the ramp in 110-degree high humidity weather, interrogated and nearly arrested, and delayed for a day before the folks at the airport can be bothered to deliver some 100LL fuel at $20/gallon.

The author has some difficulty in managing the extra fuel tanks. He mistakenly pumps some extra fuel from a ferry tank into one of the main tanks, where it is promptly vented overboard. Not great when you’re paying $20/gallon and hoping to cross an ocean with a decent reserve. He takes advantage of a 23-knot tailwind and slows down to an economy cruise speed.

He is not impressed with what the white man has brought to Samoa:

The four days I stayed on Pago Pago, the capital of American Samoa—a cluster of tiny islands in the middle of the Pacific and two thousand nautical miles from any real form of civilization—were frightening for me. It’s hard to describe, but the feel of the island made my skin crawl. Imagine a tribal culture that somehow was rapidly updated with some American infrastructure with cell phones, an airport, McDonald’s and sketchy Internet. But beyond that, it felt like the people were still driven by thousands of years of tribal tradition, like they didn’t really want any of the new lifestyle that had been thrust upon them. And for that matter, they could do without the occasional visitors as well.

Haris Suleman‘s round-the-world Bonanza flight came to a sad end on departure from Pago Pago. The author’s very nearly does as well. He was distracted with some mechanical issues (the engine had possibly burned as many as six quarts of oil in the preceding eight hours!) and did not explicitly ask for the 10,000′ runway. The controller assigned his plane, 10 percent overweight, to the 3,800’ crosswind runway. He accepted the clearance and barely made it over a fence. Good reminder to always have the airport diagram in front of you when taxiing!

Think that pilots are intrepid heroes?

I never told anyone I was afraid, but the truth was that after the engine out in Malaysia I was genuinely terrified every day. It was like I was stepping into a flying coffin.

I had taken enormous risks each and every day of the trip. The people who had begged me not to do the trip were in fact right.

Flying around the world didn’t make me a more confident pilot. If anything, it made me more aware of the risks that were possible. I had become more paranoid, detailed, serious, cautious and just simply afraid. I was questioning what I could really control in my life.

He finds out that veteran ferry pilots are also routinely scared prior to departure. He has conversations with God. (She reassures him that “You are being prepared for something greater than you can even imagine. … You are loved more than you will ever know. You are always with me.” But why wasn’t she with Haris Suleman and his father?)

My summary: Being is a pilot is not about never being afraid. It is about acting rationally even when you are afraid.

Pilots are constantly reminded that training is important:

I thought back to my three years of graduate-level spiritual psychology training. I could not believe that the voices in my head could be true this time.

On the last leg from Hawaii, he writes about how the job can be made easy with proper engineering:

I had been instructed to turn the HF radio on once I was about seventy-five miles out from Honolulu. I was reporting my position every hour. The radio was constantly hissing, popping and shrieking. I could hear the commercial airline pilots reporting their positions as well. I thought about the fact that they were doing this trip with much less stress than I was. No HF radio power supply and heat source mounted one-quarter inch from a fuel tank sitting behind them; no piston engine pounding away at 2,400 rpm trying to blow itself apart; no issues of low manifold pressure; no mystery oil-loss issue but instead two or four giant Rolls-Royce turbofan engines that were each purring away one hundred times more reliably than mine. They had multiple pilots so one could take a nap if he got tired and let’s not forget lots of hot food and flight attendants. I thought, I need a flight attendant. On my next trip I would definitely have one.

He doesn’t have a flight attendant, I don’t think, on this flight, but he does have two turbine engines. Good luck to Robert DeLaurentis.

Full post, including comments

Why isn’t Apple Wallet smart enough to delete old boarding passes?

Software is so smart that it will soon be driving us around, recognizing and dodging pedestrians. WIRED and similar cheerleaders for technology assure us that our software pals will also diagnose us based on medical imaging and other tests.

Apple Wallet is an app from one of the world’s leading software companies. Every time I open it there is a boarding pass from a flight that occurred a month or two ago. The software is neither smart enough to delete the pass a month after the flight (and after the location subsystem shows that the flight was actually taken) nor pop up a “would you like to delete these old boarding passes?” offer.

If this is the best that Apple can do, how is it that we can have confidence in the hard problems being solved?

Full post, including comments

Why is the Gender Snowperson white?

Lexington, Massachusetts runs what is generally considered the best of the Boston-area public school systems (a task made slightly easier because the typical student there now is the child of Chinese-American PhDs). Unlike our suburb, when they want to build a gold-plated new school building they (a) do it with roughly 50 percent state money, and (b) do it in the parking lot or soccer field of the old school so that nobody has to move into trailers for three years.

Part of being the best: “Public School Uses ‘Gender Snowperson’ to Teach 9-Year-Olds Never to Assume Boys Have Penises” (Pluralist). The best comment: “Why is the snowman white?”

[How good are the best public schools in our state? A Chinese-American PhD friend who lives there says “Most of the teachers are bad.” Fortunately, no matter how bad they are at their job, the union contract guarantees them a paycheck through retirement!]

Related:

Full post, including comments

Whites cashing in on non-white victimhood

Tonight at our local school (free tickets):

Waking up White and Finding Myself in the Story of Race

Please join the Lincoln community as we welcome Debby Irving – local author, racial justice educator, and public speaker. Debby will present in a workshop format utilizing stories from her life to exploring systemic racism that goes largely unnoticed but feeds long-held radicalized belief systems. By sharing, her struggle to understand racism and racial tensions, she offers a fresh perspective of bias stereotypes, manners, and tolerance. As she unpacks her own long-held beliefs about color blindness, being a good person, and wanting to help people of color, she reveals how each of these well-intentioned mindsets actually perpetuated her ill-conceived ideas about race. She also explains why and how she’s changed the way she talks about racism, works in racially mixed groups, and understands the racial justice movement as a whole.

From Amazon:

Debby Irving is an emerging voice in the national racial justice community. Combining her organization development skills, classroom teaching experience, and understanding of systemic racism, Irving educates and consults with individuals and organizations seeking to create racial equity at both the personal and institutional level.

Irving grew up in Winchester, Massachusetts, during the socially turbulent 1960s and ’70s. After a blissfully sheltered, upper-middle-class suburban childhood, she found herself simultaneously intrigued and horrified by the racial divide she observed in nearby Boston. Her career began in a variety of urban performance-art and community-based non-profits, where she repeatedly found that her best efforts to “help” caused more harm than the good she intended. Her one-step-forward-two-steps-back experience of racial understanding eventually lead her to dig deeply into her own white privilege, where she found truths she never knew existed. Waking Up White describes that journey and the lessons learned along the way.

Now a racial justice educator and writer, Irving works with other white people to transform confusion into curiosity and anxiety into action. She’s worked in private and public urban schools, both in the classroom and at the board level, to foster community among students, teachers, staff, and families by focusing on honest dialog that educates and connects people through shared interests and divergent backgrounds. A graduate of the Winsor School in Boston, she holds a BA from Kenyon College and an MBA from Simmons College. Waking Up White is her first book.

Amazon reader reviews:

A summary of the book: a white person from a wealthy, old-money, well-connected family has a crisis of conscience, then proceeds to take the pain and suffering of hundreds of millions past and present people of color, co-opts it and makes it all about herself, then sells a book to other white people and makes even more money. At the center appears to be a desperate concern about what others think about her. She wants you to think that she is a good person. Your opinion on that topic matters greatly to her.

She gave a talk at my school. Her examples are very dated and her research limited.

There are few books that will lower one’s IQ faster than this smarmy self-centered tome dedicated to the joke called “white privilege.” Leftist drivel combined with pitiful and laughable narratives combine to make a it a horrific read. My horror mounted as I realized that some poor students probably had to read this dreck and pretend that it has meaning in order to obtain the mandatory credit in a self-hate course.

Complete and utter trash. Ideal for use with an open fire, BURNS WELL!

Related:

  • the school building, renovated or brand new as of 25 years ago, will soon be bulldozed and replaced with the most expensive, per-student, school ever built in the United States (residents voted enthusiastic for the spending project and are now arguing bitterly over how to distribute the burden of paying for it!)
Full post, including comments

Charity idea: Raspberry Pi to Oaxaca for Kids on Computers

My personal favorite charity (after the Clinton Foundation, of course), is Kids on Computers, which sets up labs in public schools. They are headed to Oaxaca, Mexico in December and if you want an end-of-year tax deduction as well as the satisfaction of helping out, you can send a Raspberry Pi straight from Amazon to Oaxaca (Amazon added shipping and an import duty reserve so my bill for one worked out to $114.)

If you want to do some networking and setup while in one of the world’s most beautiful and historic places, try to jump on as a volunteer!

Related:

Full post, including comments