The Conspiracy to Keep You Poor and Stupid is a trademark of Donald L. Luskin

Latest
Media Infiltrations:

Of Interventions and Conservative Principles
National Review Online
September 23, 2008
Quit Doling Out That Bad-Economy Line
The Washington Post
September 14, 2008

Krugman Truth Squad logo, courtesy Tom Miller, Atomic Art: admin@atomicart.com

Peter Sellers and Peter Bull in ''Dr. Strangelove'' Columbia Pictures, 1964 -- Click to order!

"What has been your worst blogging experience?
Donald Luskin."
-- Brad DeLong

"That's a guy who actually stalks me on the Web and once stalked me personally."
-- Paul Krugman

"I'm saying this...guy's a jerk."
-- Charlie Gasparino

What I'm reading:
cover
A Bound Man
Shelby Steele

What I'm listening to:
cover
Langley Schools Music Project

What I'm watching:
cover
There Will Be Blood

What I'm playing:
cover
Speed Racer

Order these from Amazon.com
at Amazon's normal low prices...
and a fraction of your order goes
to help support this site.
Thanks!

Amazon Honor SystemClick Here to PayLearn More

Thanks to Irwin Chusid, public editor.

Copyright 2002 thru 2008
Donald L. Luskin
All rights reserved.
"The Conspiracy to
Keep You Poor and Stupid"
and "Krugman Truth Squad"
are trademarks of
Donald L. Luskin
www.poorandstupid.com

Logo by Tommy Carnase 1995

"The road is cleared," said Galt.
"We are going back to the world."
He raised his hand
and over the desolate earth
he traced in space
the sign of the dollar.

From Atlas Shrugged
by Ayn Rand

From each as they choose,
to each as they are chosen.

From Anarchy, State and Utopia
by Robert Nozick

"there is some shit I will not eat"

From i sing of olaf glad and big
by e. e. cummings

Some of the sites
that have linked to us!
* recently updated


In Association with Amazon.com

Powered by Blogger Pro™

Powered by Blogger Pro™

Chronicle of the Conspiracy
Join us as we discover, document, expose and challenge the bad people, the bad institutions and the bad ideas that stand in the way of wealth creation -- and show you how to fight back!

Saturday, September 11, 2004

BUSH'S FLIGHT TRAINING    Reader Gerald Hanner sounds like he knows a thing or two about flying fighter jets:
Another point I find amusing is the breathlessly reported fact that on several occasions Bush made more than one attempt at landing an aircraft and that he was sometimes flying a two-seat T-33 jet trainer to get extra training. For those of us who flew military aircraft for a living, doing several circuits through the traffic pattern to boost proficiency was a routine occurrence. In fact, it was (and probably still is) called proficiency training. Doing it in a T-Bird (T-33) means that two pilots can be training at the same time. On the other hand, the Deuce (F-102) was a combat aircraft and a valuable asset that cost more to fly around the traffic pattern. Private pilots do it too: take off, stay in the local traffic pattern, and practice doing both instrument and visual approaches to landing. Many times those approaches become what is known is flying circles as a "touch and go."

Whoever ginned up that crock of crap either didn't know much about flying or thought that most people wouldn't know enough about the flying game to understand that making more than one approach to a runway is a routine training event.


Posted by Donald L. Luskin at 12:12 AM | link   

AL GORE: ONE-WAY TICKET TO BYPASSVILLE    Will this man do literally anything to follow in Bill Clinton's footsteps?

Posted by Donald L. Luskin at 12:12 AM | link   


Friday, September 10, 2004

BUSH FLIED    Okay, you all know what the Democrats want you to think Bush didn't do in the Air National Guard. Here's what he did do. It's really all so simple. Read the whole thing, but to start:
The future president joined the Guard in May 1968. Almost immediately, he began an extended period of training. Six weeks of basic training. Fifty-three weeks of flight training. Twenty-one weeks of fighter-interceptor training.

That was 80 weeks to begin with, and there were other training periods thrown in as well. It was full-time work. By the time it was over, Bush had served nearly two years.

Not two years of weekends. Two years.

After training, Bush kept flying, racking up hundreds of hours in F-102 jets. As he did, he accumulated points toward his National Guard service requirements. At the time, guardsmen were required to accumulate a minimum of 50 points to meet their yearly obligation.

According to records released earlier this year, Bush earned 253 points in his first year, May 1968 to May 1969 (since he joined in May 1968, his service thereafter was measured on a May-to-May basis).

Bush earned 340 points in 1969-1970. He earned 137 points in 1970-1971. And he earned 112 points in 1971-1972. The numbers indicate that in his first four years, Bush not only showed up, he showed up a lot. Did you know that?

Thanks to reader Noel Sheppard for the link.

Posted by Donald L. Luskin at 10:24 PM | link   

WHAT CLINTON AND KERRY REALLY SAID    Marc Cooper uses his imagination:
I can imagine Clinton’s first question: “Hi, John, say, is Teresa there with you? What’s she wearing?”

Then, immediately after the formalities, right down to the nitty-gritty. Clinton warning Kerry that he better get his act together real soon, retool his campaign, that he ought to find a message and stay on it, and that he ought to hit back hard at Bush, lest he get used to the idea of spending the next four years playing tiddlywinks with the last guy who didn’t heed his campaign counsel — that goofy Al Gore. “And you know how he wound up,” says Clinton with a dark tone, “fat, depressed and with a beard.”

“I know, Bill, I know,” Kerry answers in quiet, controlled anger as he strokes his ample chin, pondering for just a moment how a beard would look on him.

Thanks to reader Jill Olson for the link.

Posted by Donald L. Luskin at 8:11 PM | link   

SO YOU STILL THINK ANTITRUST LAWS MAKE SENSE?    Our antitrust guru Skip Oliva explains why the Dolphins-Titans game won't be broadcast -- thanks to antitrust laws (we're just trying to protect you, you know).
The Dolphins-Titans game, originally scheduled for this Sunday, was rescheduled for Saturday at 1 p.m. due to the projected path of Hurricane Ivan. While the game will be telecast by CBS in South Florida and four Tennessee markets, it will not be available on cable, broadcast, or satellite to the rest of the nation.

[Skip] Oliva said the NFL imposed the blackout to avoid possible antitrust sanctions. Although contracts between television networks and professional sports leagues are immune from antitrust scrutiny under a 1961 congressional exemption, a superseding 1966 law withdrew immunity for any professional football game telecast on Friday night or Saturday if any high school or college football game was being played within 75 miles of the broadcast station that same day.


Posted by Donald L. Luskin at 8:08 PM | link   

DAN RATHER STICKS BY HIS STORY    Sound familiar? Thanks to colleague Fred Goodman for the link.

Posted by Donald L. Luskin at 5:01 PM | link   

NOW OKRENT SNUBS MOORE    From Editor and Publisher, following up on the New York Times' denial of reprint rights to Michael Moore:
Daniel Okrent, public editor of The New York Times, said today the paper was right to deny film director Michael Moore’s request to reprint a Times editors' note in his upcoming book. "I’m sympathetic with the decision because the paper has the right not to be used for purposes other than what is intended, to write for their readers," Okrent told E&P.

Okrent also said he "was insulted" that Moore did not want to reprint any of his columns about war coverage. "I would want to be able to say no to him,” he said. “I don’t like to be used for people’s political purposes."


Posted by Donald L. Luskin at 3:52 PM | link   

A MOORE SNUB? OR A TIMES COVER-UP?    The New York Times is reporting today that it refused permission to let Michael Moore reprint its May 5 mea culpa about its reporting on Iraq, in his new book version of "Fahrenheit 911." The Times' stated reason for not letting this admission of fault be published outside its own ephemeral pages?
"We strongly value The Times's neutrality in its election coverage and we are determined not to associate ourselves with any work in film or print that attacks either candidate. Our note, 'The Times and Iraq,' was not intended to become part of a political battle."
Yep, they actually said that with a straight face. Not to be outdone in the disingenuity department,
Mr. Moore, in an interview, said the book did not attack either presidential candidate. The purpose of reprinting the Times article, he said, "was essentially to applaud The Times for having the courage to admit their mistakes; it had nothing to do with Bush or Kerry."

The Times "never asked to see the rest of the book or asked what is in the book,'' Mr. Moore said. "They made the determination of what is in the book without having read it. I think that's pretty lame."

Thanks to reader Christine VanDeVelde for the link.

Posted by Donald L. Luskin at 12:30 PM | link   

HILLARY'S VAST LEFT WING CONSPIRACY    Why is the Kerry campaign imploding? Because Hillary Clinton keeps setting off bombs, and because Kerry has no armor. Jack Wheeler writes,
Last week all of Hillary’s players were put in place. She immediately leaked Slick’s advice to Kerry delivered by phone from his hospital so the Clinton-as-guru/Kerry-as-neophyte story dominated the news. She then conned Kerry into inserting a raft of Clintonistas deep into his campaign. Guys like Paul Begala, James Carville, and Joe Lockhart will just make a lot of noise, however. The real player is Hillary’s former chief of staff, Howard Wolfson.

What the media is clueless about is that Hillary is an agent provocateur. It was so easy for her to hijack Kerry’s campaign right under the candidate’s nose, because Kerry has always lived on Election Easy Street, a Democrat in Massachusetts who has never faced real competition and thus hasn’t a clue on how to run a real campaign against an incumbent who has money and moxie and brains.

It won’t be Howard Wolfson’s job to explain to Kerry how to run his campaign right. It’s his job to submarine it. That’s his assignment from Hillary. All that will go wrong, just as all that has already gone wrong, will be blamed on Mary Beth Cahill’s “incompetence.” As the campaign continues to implode, the media will never catch on to Hillary’s role in the implosion. She will leave no fingerprints, and amidst the wreckage on November 3, Hillary will rise to the role of savior of emotionally devastated Democrats, promising to lead them to the resurrection of their party in 2008.

Thanks to old friend and reader Marge Illich for the link.

Posted by Donald L. Luskin at 9:40 AM | link   

CONGRATULATIONS, LARRY    Oracle fights the power. And wins.

Update... Antitrust guru Skip Oliva writes in:

The Oracle judgment is the third defeat suffered by the Bush administration's antitrust chiefs in just the past month. In August, a district court in Washington rejected the FTC's bid to stop a coal merger -- the Commission said Arch Coal's acquisition of Triton Coal "might" lead to reduced competition for a particular brand of low-sulfur coal. Around the same time, another district court rejected the DOJ's demand that the Dairy Farmers of America divest two dairies it acquired. The DOJ's reason? DFA was monopolizing the market for "school milk contracts" in several Kentucky school districts.

But, lest I be accused of harping on the negative, the antitrust chiefs have scored some recent victories. On August 31, the DOJ forced Connor Brothers to divest part of its business as a condition of acquiring Bumble Bee. The DOJ said, and this is a direct quote, "The Department said that without the divestiture, the recent combination of Connors and Bumble Bee would have resulted in higher prices for U.S. consumers of mainstream canned sardine snack products."

And you thought it couldn't get any lower than "superpremium ice cream".


Posted by Donald L. Luskin at 9:10 AM | link   

COOK COOKED    Political guru Charlie Cook -- always cited by pundits as "respected political forecaster Charlie Cook" -- ain't lookin' too good. From RealClearPolitics:
THE EVOLUTION OF CONVENTIONAL WISDOM:
"At this point, I believe, it's safe to say that unless something happens to change the dynamics and circumstances of this race, Bush will lose." - Charlie Cook on July 25

"Neither side is likely to win big, but the odds of a Bush blowout win seem lower than those of a Kerry blowout, barring some dramatic event such as a major terrorist attack." - Charlie Cook on July 27

"President Bush must have a change in the dynamics and the fundamentals of this race if he is to win a second term." - Charlie Cook on August 10

"It really is pretty amazing how fast the conventional wisdom can change." - Charlie Cook on August 31

"By in large, to the extent that this election is about terrorism and leadership, or if news stories about those dominate the news, President Bush is very likely to win." - Charlie Cook on September 7

Thanks to Bruce Bartlett for the link.

Posted by Donald L. Luskin at 8:25 AM | link   

INVITATION TO A BOOKBURNING    Why is the Kerry campaign suing to suppress the availability of Kerry's own book on the Internet? What are they hiding? Thanks to reader Jill Olson for the link.

Posted by Donald L. Luskin at 8:16 AM | link   


Thursday, September 09, 2004

Get new major postings to this weblog via email -- free.
Click here to sign up!
IT'S WHOSE DISHONESTY, STUPID?   
Paul Krugman begins his Times column today,
"It's the dishonesty, stupid. The real issue in the National Guard story isn't what George W. Bush did three decades ago. It's the recent pattern of lies..."
Is he talking about the fact that the documents that purport to show that President Bush didn't fulfill his military obligations are forgeries passed to the press by the Democrats? Nope -- just the opposite. It's his usual "Bush lies" template -- without the slightest adjustment for the new realities that the Dems are acting every bit the crook he claims Bush is. His column went to press before the forgery news came out. Will there be a retraction? A correction? Even a rowback? Are you kidding?

Update.. Reader Mark Hessey notes that Krugman says in the column, "Paul Volcker, the former Federal Reserve chairman, says there's a 75 percent chance of a financial crisis in the next five years." Hessey wonders: "Volcker is predicting a win by Kerry this November?"

Posted by Donald L. Luskin at 10:33 PM | link   

LOOKING FOR MR. GOODPROGRAM    Conservative fem resists liberal affirmative action blandishments from her dream guy! You never know what you'll see in one of those Washington, DC bars. Thanks to reader Noel Sheppard for the link.

Posted by Donald L. Luskin at 5:53 PM | link   

WHO LET THIS DOG OUT?    I can't improve on reader Jill Olson's description of this story: "Now I really know it's over...they're letting Al Gore out on the campaign trail...do these people ever learn?" Thankfully, no they don't.

Posted by Donald L. Luskin at 5:51 PM | link   

THAT OTHER ECONOMIST PAUL... THE OLDER ONE...    Nobel laureate economist Paul Samuelson (Paul Krugman's mentor at MIT) goes up against free-trade orthodoxy. According to the New York Times,
Mr. Samuelson terms "the popular polemical untruth"...the assumption that the laws of economics dictate that the American economy will benefit in the long run from all forms of international trade, including the outsourcing abroad of call-center and software programming jobs.
The Times cites Jagdish N. Bhagwati of Columbia University refuting Samuelson:
Mr. Bhagwati, the author of "In Defense of Globalization" (Oxford University Press, 2004), says he doubts whether the Samuelson model applies broadly to the economy. "Paul and I disagree only on the realistic aspects of this," he said.
Are there any other aspects to this or any other debate? Apparently in economics, there are. But fear not. Samuelson, Bhagwati and all good liberal academic economists agree on one "realistic aspect." The Times is relieved to conclude the story by stating,
...Mr. Samuelson and Mr. Bhagwati agree that the way to buffer the adjustment for the workers who lose in the global competition is with wage insurance programs.
Thanks to reader Jill Olson for the link.

Update... Reader Rick Gaber points to this expose of Krugman's mentor Samuelson. Great reading.

Posted by Donald L. Luskin at 5:42 PM | link   

IT'S JUST A CRAPPY BOOK   

Several readers pointed me to this review of Graydon Carter's Bush-bashing book, What We've Lost. It's especially devastating because it's written by someone who worked for Carter, and knows him closely -- and because it doesn't so much focus on the book's political content, but instead the fact that it's a really crappy book. And we find Carter caught in quite a conversion on the road to Baghdad, from Bush admirer and warhawk to Krugman wannabe:

A brief perusal of Vanity Fair’s back issues, including the February 2002 issue in which Mr. Bush and his team were given the full Annie Leibovitz treatment, indicates that this is a fairly recent conversion. One of the central planks of Graydon’s case against Mr. Bush — a charge repeated again and again in What We’ve Lost — is that he "deceived the American people" about the extent of the threat posed by Saddam Hussein. As evidence, he cites a Los Angeles Times poll in December 2002 which showed that 90 percent of the respondents did not doubt that Iraq was developing weapons of mass destruction.

Alarming stuff, but I fear the percentage of Vanity Fair readers who believed this may have been even higher: The magazine ran an article in the May 2002 issue documenting Saddam Hussein’s plans to acquire a long-range ballistic-missile system and identifying sites inside Iraq where chemical and biological weapons were designed, manufactured and tested. The article—by the British journalist David Rose — was based on a series of interviews with Mohamed Harith, a high-level Iraqi defector.

Graydon was still bragging about this scoop almost a year later. In March 2003, he gave an interview to Adweek in which he claimed that this and other, similar articles by David Rose in Vanity Fair had "certainly affected the British government’s decision." The interviewer didn’t ask him to specify what "decision" he had in mind, but he must have been referring to the fact that the British government elected to throw in its lot with America in the war against Iraq.

Eighteen months later, Graydon no longer seems so eager to take credit for influencing British foreign policy. In What We’ve Lost, he writes: "Prime Minister Tony Blair’s credibility as well as his political reputation and aspirations have been severely diminished by his support of Bush’s unilateral invasion." (Given that British forces participated in the invasion, that’s an idiosyncratic use of the word "unilateral.")

The first sign that Graydon was having doubts about Dubya’s leadership in the war on terror was the "Editor’s Letter" that appeared in the May 2003 issue, presumably written by him. "You really have to work at it to create a situation in which Saddam Hussein is looked upon as less of a threat to world peace than the U.S. president," he wrote. "In his little more than two years on the job, George W. Bush has proved himself to be more than up to the task."

This volte-face must have been fairly sudden, since in that very same issue there was another David Rose piece, this one based on interviews with a series of Iraqi defectors, in which he detailed the appalling crimes committed by Saddam Hussein’s sons, Uday and Qusay, including torture, rape and murder.


Posted by Donald L. Luskin at 12:40 AM | link   


Wednesday, September 08, 2004

MARK CUBAN GETS IT    No wonder this guy's a billionaire.
Q: Why are you blogging?

A: Mark Cuban, owner of the Dallas Mavericks, co-founder of HDNet, and star of the new ABC series "The Benefactor": "I started the blog because I was tired of giving in-depth responses to a media question only to have the result be what the reporter or columnist intended to write and I was just fodder to help them make their point. With the blog, I can present my position on a topic in its entirety and not have to worry about how they condense a two-hour conversation into 500 words."

Thanks to reader Christine VanDeVelde for the link.

Posted by Donald L. Luskin at 3:43 PM | link   

NOW YOU TOO CAN BE AS RICH AS KERRY    It's all so simple. Just click here now.

Posted by Donald L. Luskin at 2:29 PM | link   

YELLOW PERIL AT THE TIMES    I guess there's one ethnic group about which it's safe to use racial epithets -- at least if you're a liberal. From today's New York Times website:
LETTER FROM ASIA
Racial 'Handicaps' and a Great Sprint Forward
By JIM YARDLEY
Liu Xiang, a high hurdler, has proved what many Chinese have long felt was not possible: that yellow men can jump, and sprint, too.
It's not just sloppy headlining on the website. The slur is repeated in the second paragraph of the story itself:
All of this adulation because Liu Xiang, a high hurdler, has proved what many Chinese have long felt was not possible: that yellow men can jump, and sprint, too.
Thanks to an anonymous reader for pointing this out.

Posted by Donald L. Luskin at 2:19 PM | link   

STOLEN BY THE LEFT    Those who constantly warn that the US right will steal the 2004 election have given their blessing to the Venezuelan election -- which was stolen by the left. From The American Thinker:
"Jimmy Carter...who some call the soul of the Democratic Party and the conscience of the world, has just provided a seal of approval for what may well have been a stolen election. Carter's statistician may have done an about-face, but Carter has not yet said a word about changing his own conclusion about the Venezuelan election. Perhaps Carter and Paul Krugman will make a joint statement about this in the coming days."

Thanks to reader Jill Olson for the link.

Update... Jill notes that Carter will no doubt be too busy just now for that joint statement. He's fully occupied sending open letters to Zell Miller for "unprecedented disloyalty." Funny how Democrats only criticize Democrats who criticize other Democrats. And what's this about "unprecedented"? Would the disloyalty be okay if it were precedented?

Posted by Donald L. Luskin at 12:47 PM | link   

JOHN GIBSON ON KRUGMAN    Welcome a new member to the ever-growing Krugman Truth Squad:
In attempting to assist the faltering Kerry campaign, Krugman writes:
"If I were running the Kerry campaign, I'd remind people frequently about Mr. Bush's flight-suit photo-op, when he declared the end of major combat. In fact, the war goes on unabated."
As we know from the book, "American Soldier" by General Tommy Franks...the reason George Bush said major combat operations were over was Franks asked him to do so, as a signal from Franks to a long list of potential American allies. These allies had said when they heard the president say major combat operations were over, they would send troops to help America in Iraq. As Franks points out in his book, the allies stiffed us much more than anyone imagined possible.

After all, when you promise the general in charge of the war, it's fair to expect the promises to be kept. But not in Iraq and not promises to America.

To Krugman a fact like that makes no difference. Bush said it, so Bush must have thought it up and Bush must be held to blame even if there were good reasons for doing what he did. And the fact that allies backed out doesn't work in Bush's favor, in Krugman's world. It's just another thing to blame Bush for.

Thanks to reader Daniel Miller for the link.

Posted by Donald L. Luskin at 8:14 AM | link   


Tuesday, September 07, 2004

I CRIED REAL TEARS...   ...when I learned that this is the third anniversary of the death of Togo, the "beautiful red Finnish Spitz" owned by "Bobby" -- the keeper of the eternal flame at the online Paul Krugman shrine. Bobby failed to mention the special grief of Krugman's cat, whose relationship with Togo was quite unnatural and entirely inappropriate as far as we are concerned.

Posted by Donald L. Luskin at 4:39 PM | link   

SURVEY SEZ...    Surveys don't get any more amateurish than this one. Check out Robert Musil's hilarious deconstruction of the New York Times' lugubrious "deeper and more comprehensive" survey of the families and close friends of 9-11 victims. A sample:
What is one to make of findings highlighted by the Times such as "A few said they no longer flew on airplanes." and "Very few who lost a spouse have remarried." For example, surely in any given three-year period and any given population there are "a few" people who no longer fly on airplanes. How does this observation shed any light? And is it surprising or different that about a third of respondents have changed jobs or quit since 2001? Well, that observation suggests that the victims may have had a rather smaller number of retired, laid-off and stay-at-home relatives...than is found the population generally, since retired people, fired people and non-working spouses don't usually "change jobs or quit." Perhaps the Times in this case is just looking at working respondents - but doesn't tell us. In ordinary years people in the New York financial industry seem to me to change jobs a lot more than people in the population generally. Is that also true of their families? Who knows? - and the Times doesn't care.

Posted by Donald L. Luskin at 3:04 PM | link   

KRUGMAN AND HEDGES AND BUSH    Normally Paul Krugman discloses when a book he's promoting in his column is by a New York Times reporter. Not this time.
The best book I've read about America after 9/11 isn't about either America or 9/11. It's "War Is a Force That Gives Us Meaning," an essay on the psychology of war by Chris Hedges, a veteran war correspondent.
Yep -- Chris Hedges is a Times reporter. If you are going to run out and buy his book just because Krugman says it's great, at least let me earn some payola off it -- click here now!

Here's the best part -- something else Krugman forgot to mention. Hedges is not just any Times reporter. As reader Jill Olson points out (via Lucianne), Hedges is the fellow who was booed off the stage in May 2003 when he turned his commencement speech at Rockford College into an anti-war screed.

Another reader, Andrew Martin, had this to say about Krugman's column, which argues that Bush's otherwise inexplicable popularity must be the result of the kind of war fever that Hedges describes in his book.

What he is effectively saying is that there is no legitimate basis for disagreeing with him. Anyone who takes a contrary view must have arrived at that view via some war-induced mass hysteria, rather than via a rational though process.

Posted by Donald L. Luskin at 2:38 AM | link   

IVY LEAGUERS FIND VOTE FRAUD IN VENEZUELA    From Venezuela's El Universal:
Opposition non-governmental organization Súmate Sunday disclosed a report prepared by independent experts Ricardo Hausmann, a Harvard University teacher, and Roberto Rigobon, a teacher at Massachusetts Institute of Technology, showing that there is a 99 percent of probabilities that a fraud was committed on the August 15 recall referendum on President Hugo Chávez.
The Bush administration is opposed to the Chávez regime -- which is why liberals in the US are silent about these charges of vote fraud. As reader Jill Olson says, "I hope these profs already have tenure, since they are working on the 'wrong side.'"

Posted by Donald L. Luskin at 12:06 AM | link   


Monday, September 06, 2004

REGULATING JOBS AWAY    Reader Kent Seymour sends in this link to a posting by a mutual fund manager who has bothered to read the fine print of SEC rules-- and he's figured out which hole all the job creation in this economy has fallen down: regulation. It's long, but worth it. Here's a sample:
Several of the SEC releases this year make extensive changes to regulations and create new regulatory requirements for the mutual fund industry.

I recently read the Paperwork Reduction Act Notice and the Cost Benefit Analysis for five releases taking effect this year, just to see what effect they might have on our industry. It starts to become clear why President Bush will probably be the first President since Herbert Hoover to preside over a reduction in total employment during his entire administration.

These 5 releases involve the Investment Adviser Codes of Ethics(Release IA-2209); minor changes in Form ADV (Release 33-8364); minor additions to Shareholder Annual and Semi Reports, and the major addition of Quarterly Reports to shareholders (Release Release 33-8393); a new Disclosure Regarding Portfolio Managers of Registered Investment Companies (Release 33-8458); and another major new requirement for Compliance Programs of Investment Companies and Investment Advisors requiring them to hire a new Chief Compliance Officer (CCO) (Release IC-25925)...

One particular report I was reading made a minor change in the annual reports generated by mutual funds, one I and many others believe is a beneficial change. It requires us to tell you in our annual report to you what factors the independent board members considered in renewing our contract to manage the fund. The SEC estimates this one tiny change will directly add more than $18,000,000 to shareholder costs. That is just the cost of printing and mailing. It doesn’t count the cost of the legal advice, modifying our own internal processes, and the in-house preparation you also have to pay for.

Then there followed a lengthy set of calculations in these Releases on how much this would cost in terms of man-hours in order to comply. It turns out to be something around 1,088,000 hours per year. Dividing that by an average 2,000 hour work year produces 544 work years. There are other similar sections in many other regulations.

In other words, a minor (and beneficial) change in one single, minor regulation by one of hundreds or thousands of government bureaucracies just poofed 544 U.S. jobs. Oh, maybe the jobs didn’t actually disappear, but many thousands of people doing them just became significantly less efficient, because now they have to do one more new thing that doesn’t contribute to the bottom line or raise or even maintain living standards, and that they won’t get paid for doing.


Posted by Donald L. Luskin at 6:32 PM | link   

BIN LADEN THERE, DONE THAT    The liberal media used to bash Bush for not having captured Osama bin Laden. Now that there's some evidence we might be getting close, the media is beginning to lay the groundwork for the idea that it doesn't really matter. Here's the San Francisco Chronicle's take -- where they even manage to quote a conservative "expert":
More and more experts now reject that objective as an illusion.

Former government officials, intelligence operatives and Arab scholars argue that removing the titular head of al Qaeda may feel good for Americans bent on vengeance, but it could prove irrelevant to reducing the threat to the United States because of the near total transformation of the terrorist menace over the past three years.

"Killing him is not a silver bullet," said James Jay Carafano, a senior fellow and defense expert at the conservative Heritage Foundation in Washington. "Cutting off the head can be significant, but I wouldn't argue that it will stop the threat or end the war on terror. We should disabuse people of that notion."

Thanks to reader Noel Sheppard for the link.

Posted by Donald L. Luskin at 12:24 PM | link   


Sunday, September 05, 2004

HOW LOW WILL THE DEMOCRATS STOOP?    Now they're running a TV commercial showing Zell Miller disparaging President Bush -- and contrasting it to his endorsement: Zell the flip-flopper. But the President Bush that Miller is disparaging is 41 -- back in 1992. Will Maureen Dowd complain? Thanks to reader Jill Olson for the link.

Posted by Donald L. Luskin at 9:28 PM | link   

THE HATE IS JUST BEGINNING    Will the Democrats be as stupid as this column by Susan Estrich -- still smarting from the defeat of Michael Dukakis, whose campaign she (mis)managed -- implies?
What do you do, Democrats keep asking each other.

The answer is not pretty, but everyone knows what it is.

The trouble with Democrats, traditionally, is that we're not mean enough. Too much is at stake to play by Dukakis' rules and lose again. That is the conclusion Democrats have reached. So watch out. Millions of dollars will be on the table. And there are plenty of choices for what to spend it on.

Read the whole thing, and marvel at Estrich's wishlist for spending the money. Thanks to reader Jill Olson for the link.

Posted by Donald L. Luskin at 9:23 PM | link   

LET'S SEE OKRENT WORM OUT OF THIS ONE!    Jon Henke at the Q&O blog continues to emerge as one of the premiere reality-checkers of the New York Times on economic matters. Check this one out:
The New York Times addresses the economic debate in an editorial today -- apparently they have no pundits on staff interested in economic matters -- and manage -- inter alia -- one very glaring error.
The United States gained 144,000 jobs last month, which is just barely enough to keep up with the number of people entering the work force. True, the job numbers for June and July were revised upward, but they were still weak, and much lower than August's. There was a tiny reduction in the unemployment rate - because the work force became smaller, not because of job creation.
One is a bit surprised that paragraph passed editorial scrutiny. How, I'd ask, can the economy simultaneously "barely...keep up with the number of people entering the work force" even as "the work force became smaller"?

Which is it? Is the work force increasing in size by something close to 144,000 per month, or is it becoming smaller?


Posted by Donald L. Luskin at 9:18 PM | link   

MRS. POT, MEET MR. KETTLE    Maureen Dowd accuses President Bush of distorting a quote from a New York Times columnist of the 1940s in his acceptance speech at the GOP convention. She says, "Mr. Bush Swift-boated her." Funny -- in light of Ms. Dowd's infamous acts of quote truncation, the rest of us might have said "He Dowdified her."

Thanks to reader Jill Olson for the catch.

Posted by Donald L. Luskin at 2:06 PM | link   

WHO'S THE HERO?    Reader Jill Olson points out this pair of photographs presented in Frank Rich's New York Times column this morning.

Rich, obviously, must find this particularly damning to President Bush -- and evidence that John Kerry is the far greater "war hero." But neither photo is a portrait of "battle," -- both because Bush wasn't in any battles, and because Kerry (like his picture here) is all about the medals, not the battles. More important -- what's really the point of beating this dead horse at this point, anyway? Bush himself manfully admitted to Matt Lauer last week that Kerry's service was more heroic than his own. And I don't know any cowards who ever learned to fly those fighter jets. So where's the beef? The question of heroism that matters now is today's political heroism, not military heroism from more than three decades ago. And here Bush scores big, by stoically absorbing month after month of Bush-bashing from the Frank Riches of the world, while Kerry whines like a baby when the Swift Boat Veterans attack an element of his resume that he himself chose to make a centerpiece. Politics is rough, like war. You have to be able to take it as well as dish it out. Otherwise, you ain't no hero. This is the essence of Kerry's political self-destruction -- and I'm delighted to see his friends at the New York Times continue to aid and abet it.

Posted by Donald L. Luskin at 1:48 PM | link   

BEN BARNES CONFIDENTIAL    Here's the web's best ammo dump for info on Ben Barnes, the Texas Democrat who says he got rich kids like George W. Bush into the Air National Guard. It's on The Blogspirator -- here's part one, and here's part two.

Posted by Donald L. Luskin at 1:22 PM | link   

KERRY'S TAX-CUT CLAIMS: 98% FALSE    Reader Matthew McOsker writes,
From Kerry's website:
Cut Middle-Class Taxes To Raise Middle-Class Incomes

When John Kerry is president, middle-class taxes will go down. Ninety-eight percent of all Americans and 99 percent of American businesses will get a tax cut under the Kerry-Edwards plan.

I scoured the Kerry site, if you do not have children, and are middle class, then there is NO tax cut. Now most of the language on the site uses the word "American families" so the 98% might be correct in that context. On the stump however, Kerry and Edwards often refer to 98% "of Americans." Unless you fall into these 3 scenarios, you will not get any tax cut:
-- A tax credit on up to $4,000 of college tuition
-- A tax credit to help small businesses and vulnerable workers pay for health care and buy into John Kerry's new Congressional Health Plan
-- A tax credit on $5,000 of child care expenses
Do 98% of families or taxpayers fall into these scenarios? I doubt it.

Posted by Donald L. Luskin at 1:16 PM | link   

STEYN SKEWERS KERRY    Best-ever column by the fabulous Mark Steyn (the guy the New York Times should have given David Brooks' spot to, if they had dared). Read the whole thing, but here's a juicy tidbit:
So we have one candidate running on a platform of ambitious reforms for an ''ownership society'' at home and a pledge to hunt down America's enemies abroad. And we have another candidate running on the platform that no one has the right to say anything mean about him.

And for this the senator broke the eminently civilized tradition that each candidate lets the other guy have his convention week to himself? Maybe they need to start scheduling those Kerry campaign shakeups twice a week.

There was an old joke back in the Cold War:

Proud American to Russian guy: ''In my country every one of us has the right to criticize our president.''

Russian guy: ''Same here. In my country every one of us has the right to criticize your president.''

That seems to be the way John Kerry likes it. Americans should be free to call Bush a moron, a liar, a fraud, a deserter, an agent of the House of Saud, a mass murderer, a mass rapist (according to the speaker at a National Organization for Women rally last week) and the new Hitler (according to just about everyone). But how dare anyone be so impertinent as to insult John Kerry! No one has the right to insult Kerry, except possibly Teresa, and only on the day she gives him his allowance.

Thanks to reader Christine VanDeVelde for the link.

Posted by Donald L. Luskin at 12:39 AM | link   


There's more...visit the archives!