First Principle for Trustbusters Should Be “Do No Harm”

(p. A2) In essence, Justice says that, beginning in 2008, several plankton, in the form of five publishers, conspired against a whale, Amazon, whose monopoly clout had imposed a $9.99 retail price for e-books.
The deal the publishers eventually reached with Apple unfixed the price of e-books by linking their prices to the cover price of the print version. More importantly, publishers could begin to reclaim the right to set e-book retail prices generally.
. . .
Apple, with 15% of the e-book market, is no monopolist. The five publishers, though Justice insists they dominate trade publishing, account for only about half of e-book sales. Crucially for antitrust, the barriers to entry are zilch: Amazon, with 60% market share, could create its own e-book imprint tomorrow and begin bidding for the most popular authors.
. . .
Let’s go back to “per se” vs. “rule of reason.” Because the 1890 Sherman Act is so sweeping and almost any business arrangement could be read as prohibited, courts understandably evolved a “rule of reason” to distinguish the permissible from the impermissible. Unfortunately, the result has been antitrust as we know it: wild and fluctuating discretion masquerading as law. Retail price maintenance alone has been embraced and dumped so many times by the courts that it must feel like Jennifer Aniston.
“Do no harm” would be a better principle for trustbusters.

For the full commentary, see:
HOLMAN W. JENKINS, JR. “BUSINESS WORLD; Washington vs. Books; What about piracy, low barriers to entry and the fact that literature isn’t chopped liver?” The Wall Street Journal (Sat., April 14, 2012): A15.
(Note: the online version of the commentary is dated April 13, 2012.)

“An Entrenched Favors-for-Votes Culture Is Now Coming Unglued”

TsochatzopoulosAkisGreekOfficial2012-05-07.jpg

“Akis Tsochatzopoulos on April 11 became the highest-ranking Greek official ever to be detained on corruption charges.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A6) Prosecutors accuse the former defense minister, Akis Tsochatzopoulos, 73, a founding member of the Socialist Party and the highest-ranking Greek official ever to be detained on corruption charges, of pocketing at least $26 million in kickbacks for Greece’s purchase of submarines and missile systems and funneling the money through offshore accounts to buy property.
. . .
The case of Mr. Tsochatzopoulos (pronounced zok-at-ZOP-ou-los) marks the rise — and perhaps fall — of a political culture that has dominated Greece for decades, in which alternating Socialist and center-right New Democracy governments helped spread the spoils and, critics say, the corruption, during the boom years. That system helped drive up Greece’s public debt to the point that it was forced to seek a foreign bailout in 2010.
As the money has run out, an entrenched favors-for-votes culture is now coming unglued, and Greeks have become less forgiving of high-level missteps.

For the full story, see:
RACHEL DONADIO and NIKI KITSANTONIS. “Corruption Case Hits Hard in a Tough Time for Greece.” The New York Times (Thurs., May 3, 2012): A6 & A11.
(Note: ellipsis added.)
(Note: the online version of the story is dated May 2, 2012.)

Four Million Former Californians Voted with Their Feet

KotkinJoel2012-04-30.jpg

Joel Kotkin. Source of image: online version of the WSJ article quoted and cited below.

(p. A13) ‘California is God’s best moment,” says Joel Kotkin. “It’s the best place in the world to live.” Or at least it used to be.
. . .
Nearly four million more people have left the Golden State in the last two decades than have come from other states. This is a sharp reversal from the 1980s, when 100,000 more Americans were settling in California each year than were leaving. According to Mr. Kotkin, most of those leaving are between the ages of 5 and 14 or 34 to 45. In other words, young families.
. . .
“Basically, if you don’t own a piece of Facebook or Google and you haven’t robbed a bank and don’t have rich parents, then your chances of being able to buy a house or raise a family in the Bay Area or in most of coastal California is pretty weak,” says Mr. Kotkin.
. . .
And things will only get worse in the coming years as Democratic Gov. Jerry Brown and his green cadre implement their “smart growth” plans to cram the proletariat into high-density housing. “What I find reprehensible beyond belief is that the people pushing [high-density housing] themselves live in single-family homes and often drive very fancy cars, but want everyone else to live like my grandmother did in Brownsville in Brooklyn in the 1920s,” Mr. Kotkin declares.
“The new regime”–his name for progressive apparatchiks who run California’s government–“wants to destroy the essential reason why people move to California in order to protect their own lifestyles.”
Housing is merely one front of what he calls the “progressive war on the middle class.” Another is the cap-and-trade law AB32, which will raise the cost of energy and drive out manufacturing jobs without making even a dent in global carbon emissions. Then there are the renewable portfolio standards, which mandate that a third of the state’s energy come from renewable sources like wind and the sun by 2020. California’s electricity prices are already 50% higher than the national average.
Oh, and don’t forget the $100 billion bullet train. Mr. Kotkin calls the runaway-cost train “classic California.” “Where [Brown] with the state going bankrupt is even thinking about an expenditure like this is beyond comprehension. When the schools are falling apart, when the roads are falling apart, the bridges are unsafe, the state economy is in free fall. We’re still doing much worse than the rest of the country, we’ve got this growing permanent welfare class, and high-speed rail is going to solve this?”

For the full interview, see:
ALLYSIA FINLEY, interviewer. “THE WEEKEND INTERVIEW with Joel Kotkin: The Great California Exodus; A leading U.S. demographer and ‘Truman Democrat’ talks about what is driving the middle class out of the Golden State.” The Wall Street Journal (Sat., April 21, 2012): A13.
(Note: ellipses added; bracketed words in original.)
(Note: the online version of the interview is dated April 20, 2012.)

“Environmentalists” Yawn at Windmills Killing Thousands of Migratory Birds

(p. A15) Last June, the Los Angeles Times reported that about 70 golden eagles are being killed per year by the wind turbines at Altamont Pass, about 20 miles east of Oakland, Calif. A 2008 study funded by the Alameda County Community Development Agency estimated that about 2,400 raptors, including burrowing owls, American kestrels, and red-tailed hawks–as well as about 7,500 other birds, nearly all of which are protected under the Migratory Bird Treaty Act–are being killed every year by the turbines at Altamont.
A pernicious double standard is at work here. And it riles Eric Glitzenstein, a Washington, D.C.-based lawyer who wrote the petition to the U.S. Fish and Wildlife Service. He told me, “It’s absolutely clear that there’s been a mandate from the top” echelons of the federal government not to prosecute the wind industry for violating wildlife laws.
Mr. Glitzenstein comes to this issue from the left. Before forming his own law firm, he worked for Public Citizen, an organization created by Ralph Nader. When it comes to wind energy, he says, “Many environmental groups have been claiming that too few people are paying attention to the science of climate change, but some of those same groups are ignoring the science that shows wind energy’s negative impacts on bird and bat populations.”

For the full commentary, see:
ROBERT BRYCE. “Windmills vs. Birds; About 70 golden eagles are killed every year by turbines at California’s Altamont Pass, reports the LA Times..” The Wall Street Journal (Thurs., March 8, 2012): A15.
(Note: the online version of the article is dated March 7, 2012.)

Steve Jobs Channels Ellis Wyatt

(p. 260) In 2007 Forbes magazine named Steve Jobs the highest-paid exec-(p. 261)utive of any of America’s five hundred largest companies, based on gains in the value of stock granted to him at Apple. He was on the board of directors of the Walt Disney Co. Yet his former residence in Woodside, where he had once met with Catmull and Smith and mused about buying Lucasfilm’s Computer Division, was now in a state of decay under his ownership.
He had wanted to demolish it; after a group of neighborhood residents opposed his plan to do so, he left the house open to the elements. The interior suffered damage from water and mold. Vines crept up the stucco walls and wandered inside.
The memories that haunted its hallways were those of Jobs’s darkest times. He had bought the house only months before the humiliation of his firing from Apple; he lived in it through that firing and through the hard, money-hemorrhaging years of Pixar and NeXT. He left it as his fortunes were about to change, as he was sending Microsoft away from Pixar, convinced that he had something he should hold on to.
When a judge ruled against his quest for a demolition permit, Jobs appealed in 2006 and 2007 all the way to the California Supreme Court, but he lost at every stage. He received proposals from property owners offering to cart the house away in sections and restore it elsewhere; he rejected them. One way or another, it seemed, he meant for the house to be destroyed.

Source:
Price, David A. The Pixar Touch: The Making of a Company. New York: Alfred A. Knopf, 2008.
(Note: italics in original.)
(Note: The passage above is from the Epilogue and the pages given above are from the hardback edition (pp. 260-261). The identical passage also appears in the 2009 paperback edition, but on p. 265.

“There Was Never a Plan . . . Just a Series of Mistakes”

CaroRobert2012-04-30.jpg “Robert Caro in his Manhattan office. The later volumes of his L.B.J. biography have taken more years to write than it took the former president to live them.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. 37) “There was never a plan,” Caro said to me, explaining how he had become a historian and biographer. “There was just a series of mistakes.”
. . .
(p. 38) Caro had a[n] . . . epiphany about power in the early ’60s. He had moved on to Newsday by then, where he discovered that he had a knack for investigative reporting, and was assigned to look into a plan by Robert Moses to build a bridge from Rye, N.Y., across Long Island Sound to Oyster Bay. “This was the world’s worst idea,” he told me. “The piers would have had to be so big that they’d disrupt the tides.” Caro wrote a series exposing the folly of this scheme, and it seemed to have persuaded just about everyone, including the governor, Nelson Rockefeller. But then, he recalled, he got a call from a friend in Albany saying, “Bob, I think you need to come up here.” Caro said: “I got there in time for a vote in the Assembly authorizing some preliminary step toward the bridge, and it passed by something like 138-4. That was one of the transformational moments of my life. I got in the car and drove home to Long Island, and I kept thinking to myself: ‘Everything you’ve been doing is baloney. You’ve been writing under the belief that power in a democracy comes from the ballot box. But here’s a guy who has never been elected to anything, who has enough power to turn the entire state around, and you don’t have the slightest idea how he got it.’ ”
The lesson was repeated in 1965, when Caro had a Nieman fellowship at Harvard and took a class in land use and urban planning. “They were talking one day about highways and where they got built,” he recalled, “and here were these mathematical formulas about traffic density and population density and so on, and all of a sudden I said to myself: ‘This is completely wrong. This isn’t why highways get built. Highways get built because Robert Moses wants them built there. If you don’t find out and explain to people where Robert Moses gets his power, then everything else you do is going to be dishonest.’ “

For the full story, see:
CHARLES McGRATH. “Robert Caro’s Big Dig.” The New York Times Magazine (Sun., April 15, 2012): 34-39 & 52.
(Note: ellipses and bracketed letter added.)
(Note: the online version of the story is dated April 12, 2012.)

Caro’s book on Robert Moses is:
Caro, Robert A. The Power Broker: Robert Moses and the Fall of New York. New York: Alfred A. Knopf, Inc., 1974.

The Danger and Despair of Dark Streets

StreetlightsDarkHighlandPark2012-04-08.jpg“”I don’t go out to get gas at night. I don’t run to any stores. I try to do everything in the daytime and to be back before night falls,” said Juanita Kennedy, a resident of Highland Park, Mich.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A11) HIGHLAND PARK, Mich. — When the sun sets in this small city, its neighborhoods seem to vanish.

In a deal to save money, two-thirds of the streetlights were yanked from the ground and hauled away this year, and the resulting darkness is a look that is familiar in the wide open cornfields of Iowa but not here, in a struggling community surrounded on nearly all sides by Detroit.
Parents say they now worry more about allowing their children to walk to school early in the morning. Motorists complain that they often cannot see pedestrians until headlights — and cars — are right upon them. Some residents say they are reshaping their lives to fit the hours of daylight, as the members of the Rev. D. Alexander Bullock’s church did recently when they urged him to move up Saturday Bible study to 4 p.m. from the usual 7 p.m.
“It’s just too dark,” said Mr. Bullock, of Greater St. Matthew Baptist Church. “I come out of the church, and I can’t see what’s in front of me. What happened to our streetlights is what happens when politicians lose hope. All kinds of crazy decisions get made, and citizens lose faith in the process.”
. . .
(p. A16) “The people were basically left in the dark,” said DeAndre Windom, who was elected mayor in November. He said the disappearing streetlights were the top concern of residents as he campaigned door to door.
“When you come through at night, it’s scary; you have to wonder if anyone is lurking around waiting to catch you off your guard,” said Juanita Kennedy, 65, who said she had installed a home security system and undergone training to carry a handgun in the weeks since workmen carried away the streetlight in front of her house. “I don’t go out to get gas at night. I don’t run to any stores. I try to do everything in the daytime and to be back before night falls.”

For the full story, see:
MONICA DAVEY. “Darker Nights as Some Cities Turn Off Lights for Savings.” The New York Times (Fri., December 30, 2011): A11 & A16.
(Note: ellipsis added.)
(Note: the online version of the story is dated December 29, 2011, and has the title “Darker Nights as Some Cities Turn Off the Lights.”)

NGO Workers Are More Concerned with Following Plan than Achieving Mission

BazaarPoliticsBK2012-04-08.jpg

Source of book image: http://www.bibliovault.org/thumbs/978-0-8047-7672-1-frontcover.jpg

In the quote below, “NGO” means “Non-Government Organization,” for instance, a philanthropy.

(p. 17) As for the state’s representatives, their authority was what Coburn calls a “useful fiction.” The district governor wielded his connections to Kabul as best he could, but did not possess great influence, in part because — in keeping with the most sophisticated state-building methods — government aid was mainly distributed by locally elected committees. Istalif’s police were seen as hapless at best, predatory at worst; Coburn found that villagers were eager to protect him from a local officer. The French soldiers who periodically showed up in the bazaar had little impact, though their presence did become an excuse for keeping women out of the area. But Coburn observed that “no group was less effective at accumulating influence” than the NGO community. The best development experts accomplished little: their turnover was high, and they frequently bestowed their largess on deserving locals — women, refugees who’d returned from abroad with some education, victims of wartime injuries — who didn’t have the connections or ability to capitalize on their good fortune. NGO workers seemed less concerned with achieving a valuable outcome than with demonstrating to their backers that they had followed a mission plan to the letter.

For the full review, see:
ALEXANDER STAR. “Applied Anthropology.” The New York Times Book Review (Sun., November 20, 2011): 16-17.
(Note: the online version of the commentary is dated November 18, 2011, and has the title “Afghanistan: What the Anthropologists Say.”)

The book being discussed is:
Coburn, Noah. Bazaar Politics: Power and Pottery in an Afghan Market Town. Stanford Studies in Middle Eastern and Islamic Societies and Cultures. Stanford, CA: Stanford University Press, 2011.

Wilson’s Advice to Conservative Academics: “Be Twice as Productive and Four Times as NIce”

(p. A13) Pat Moynihan once reportedly told Richard Nixon (who was known for his disdain for intellectuals), “Mr. President, James Q. Wilson is the smartest man in the United States. The president of the United States should pay attention to what he has to say.”
. . .
At one point in my academic career, I called Jim for advice about how best to navigate the waters of liberal academia when one is openly conservative. “Simple,” he told me lightheartedly, “Be twice as productive and four times as nice as your colleagues.” It was a formula he himself had followed.

For the full commentary, see:
ARTHUR C. BROOKS. “OPINION; Social Science With a Soul; Life for James Q. Wilson was like a roadside curio shop, full of hidden and unrecognized intellectual treasures..” The Wall Street Journal (Sat., March 3, 2012): C4.
(Note: ellipsis added.)

Today Is Tweflth Anniversary of Democrats’ Infamous Betrayal of Elián González

GonzalezElianSeizedOn2000-04-22.jpg“In this April 22, 2000 file photo, Elian Gonzalez is held in a closet by Donato Dalrymple, one of the two men who rescued the boy from the ocean, right, as government officials search the home of Lazaro Gonzalez, early Saturday morning, April 22, 2000, in Miami. Armed federal agents seized Elian Gonzalez from the home of his Miami relatives before dawn Saturday, firing tear gas into an angry crowd as they left the scene with the weeping 6-year-old boy.” Source of caption and photo: online version of JENNIFER KAY and MATT SEDENSKY. “10 years later, few stirred by Elian Gonzalez saga.” Omaha World-Herald (Thurs., April 22, 2010): 7A. (Note: the online version of the article is dated April 21, 2010 and has the title “10 years after Elian, US players mum or moving on.”)

Today (April 22, 2012) is the twelfth anniversary of one of the darkest days in American history—when the Democratic Clinton Administration seized a six year old child in order to force him back into the slavery that his mother had died trying to escape.