Navigation Acts, Were “Insanely Inefficient, but Gratifyingly Lucrative to British Merchants and Manufacturers”

(p. 297) Many of Monticello’s quirks spring from the limitations of Jefferson’s workmen. He had to stick to a simple Doric style for the exterior columns because he could find no one with the skills to handle anything more complex. But the greatest problem of all, in terms of both expense and frustration, was a lack of home-grown materials. It is worth taking a minute to consider what the American colonists were up against in trying to build a civilization in a land without infrastructure.
(p. 298) Britain’s philosophy of empire was that America should provide it with raw materials at a fair price and take finished products in return. The system was enshrined in a series of laws known as the Navigation Acts, which stipulated that any product bound for the New World had either to originate in Britain or pass through it on the way there, even if it had been created in, say, the West Indies, and ended up making a pointless double crossing of the Atlantic. The arrangement was insanely inefficient, but gratifyingly lucrative to British merchants and manufacturers, who essentially had a fast-growing continent at their commercial mercy. By the eve of the revolution America effectively was Britain’s export market. It took 80 per cent of British linen exports, 76 per cent of exported nails, 60 per cent of wrought iron and nearly half of all the glass sold abroad. In bulk terms, America annually imported 30,000 pounds of silk, 11,000 pounds of salt and over 130,000 beaver hats, among much else. Many of these things – not least the beaver hats – were made from materials that originated in America in the first place and could easily have been manufactured in American factories – a point that did not escape the Americans.

Source:
Bryson, Bill. At Home: A Short History of Private Life. New York: Doubleday, 2010.

Deregulation Revived Railroads

RailroadMogulsCartoon2011-08-08.jpg

“ALL ABOARD: The Wasp magazine in 1881 lampooned railroad moguls as having regulators in the palms of their hands.” Source of caricature: online version of the WSJ article quoted and cited below.

(p. C8) Mr. Klein has written thoroughly researched and scrupulously objective biographies of the previously much maligned Jay Gould and E.H. Harriman, remaking their public images by presenting them in full. Now he has published the third and final volume of his magisterial history of the Union Pacific railroad, taking the company from 1969 to the present day.

Union Pacific–the only one of the transcontinentals to remain in business under its original name–is now a flourishing business. Thanks to a series of mergers, it is one of the largest railroads in the world, with more than 37,000 miles of track across most of the American West. Thanks to its investment in new technology, it is also among the most efficient.
In 1969, though, the future of American railroading was in doubt as the industry struggled against competition from airplanes, automobiles and trucks–all of which were in effect heavily subsidized through the government’s support for airports and the Interstate Highway System.
Another major factor in the decline of the railroads had been the stultifying hand of the Interstate Commerce Commission. The ICC had come into existence in the late 19th century to limit the often high-handed ways of the railroads as they wrestled with the difficult economics of an industry that has very high fixed costs. ( . . . .) But the ICC soon evolved into a cartel mechanism that discouraged innovation and wrapped the railroad industry in a cocoon of stultifying rules.
Mr. Klein notes that in 1975 he wrote a gloomy article about the sad state of an industry with a colorful past: “Unlike many other historical romances,” he wrote back then, “the ending did not promise to be a happy one.”
Fortunately, a deregulation movement that began under the Carter administration–yes, the Carter administration–limited the power of the ICC and then abolished it altogether. As Mr. Klein shows in the well-written “Union Pacific,” the reduction of government interference left capitalism to work its magic and produce–with the help of dedicated and skillful management–the modern, efficient and profitable railroad that is the Union Pacific.

For the full review, see:
JOHN STEELE GORDON. “Tracks Across America.” The Wall Street Journal (Sat., JUNE 11, 2011): C8.
(Note: ellipsis added.)

Book reviewed in the part of the review quoted above:
Klein, Maury. Union Pacific: The Reconfiguration: America’s Greatest Railroad from 1969 to the Present. New York: Oxford University Press, USA, 2011.

Coralville Police Close 4-Year-Old Abigail’s Lemonade Stand

(p. 2B) CORALVILLE — Police closed down a lemonade stand in Coralville, telling its 4-year-old operator and her dad that she didn’t have a permit.
. . .
Abigail’s dad, Dustin Krutsinger, said the ordinance and its enforcers are going too far if they force a 4-year-old to abandon her lemonade stand.

For the full story, see:
AP. “Coralville shuts down girl’s lemonade stand.” Omaha World-Herald [Iowa Edition] (Weds., August 3, 2011): 2B.
(Note: ellipsis added.)
(Note: the online version of the article is dated August 2, 2011 and has the title “Girl’s lemonade stand shut down.”)

The next day, the Iowa Edition of the Omaha World-Herald ran an update:

(p. 2B) CORALVILLE — Four-year-old Abigail Krutsinger wasn’t the only lemonade stand operator who was closed down when RAGBRAI bicyclists poured into Coralville last week.

At least three stands run by children were closed down because they hadn’t obtained permits and health inspections.

For the full story, see:
AP. “Coralville defends closing kids’ stands.” Omaha World-Herald [Iowa Edition] (Thurs., August 4, 2011): 2B.
(Note: the online version of the article is dated August 3, 2011, and has the title “More lemonade stands shuttered.”)

“Unless the Federal Government Takes It All Away”

BoeingSouthCarolinaPlant2011-08-08.jpg “Wayne Gravot, right, and Jeff Sparwasser at the new plant in North Charleston, S.C.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A1) NORTH CHARLESTON, S.C. — Boeing’s gigantic new $750 million airplane factory here is the pride of South Carolina, the biggest single investment ever made in a state that is far more associated with old-line textile mills than state-of-the-art manufacturing. In just a few weeks, 1,000 workers will begin assembling the first of what they hope will be hundreds of 787 Dreamliners.

That is, unless the federal government takes it all away.
In a case that has enraged South Carolinians and become a cause célèbre among Republican lawmakers and presidential hopefuls, the National Labor Relations Board has accused Boeing of illegally setting up shop in South Carolina because of past strikes by the unionized workers at its main manufacturing base in the Seattle area. The board is asking a judge to order Boeing to move the Dreamliner production — and the associated jobs — to Washington State.

For the full story, see:
STEVEN GREENHOUSE. “Boeing Labor Dispute Is Making New Factory a Political Football.” The New York Times (Fri., July 1, 2011): A10.
(Note: ellipsis added.)
(Note: the online version of the story is dated June 30, 2011.)

Arrested for Feeding Homeless Without a Permit

ArrestFeedingWithoutPermit2011-08-08.jpg “Volunteers from Food Not Bombs were arrested at Lake Eola Park in Orlando, Fla., last month after feeding homeless people without a permit.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A10) MIAMI — The hacker group Anonymous has declared a cyberwar against the City of Orlando, disabling Web sites for the city’s leading redevelopment organization, the local Fraternal Order of Police and the mayor’s re-election campaign.
. . .
The group described its attacks as punishment for the city’s recent practice of arresting members of Orlando Food Not Bombs, an antipoverty group that provides vegan and vegetarian meals twice a week to homeless people in one of the city’s largest parks.
“Anonymous believes that people have the right to organize, that people have the right to give to the less fortunate and that people have the right to commit acts of kindness and compassion,” the group’s members said in a news release and video posted on YouTube on Thursday. “However, it appears the police and your lawmakers of Orlando do not.”
A 2006 city ordinance requires organizations to obtain permits to feed groups of 25 people or more in downtown parks. The law was passed after numerous complaints by residents and businesses owners about the twice-weekly feedings in Lake Eola Park, city officials said. The law limits any group to no more than two permits per year per park.
Since June 1, the city police have arrested 25 Orlando Food Not Bombs volunteers without permits as they provided meals to large groups of homeless people in the park. One of those arrested last week on trespassing charges was Keith McHenry, a co-founder of the first Food Not Bombs chapter in 1980 in Cambridge, Mass. He remained in the Orange County Jail on Thursday awaiting a bond hearing.

For the full story, see:
DON VAN NATTA Jr. “Citing Homeless Law, Hackers Turn Sights on Orlando.” The New York Times, SundayBusiness Section (Fri., July 1, 2011): A10.
(Note: ellipsis added.)
(Note: the online version of the story is dated June 30, 2011.)

McHenryKeithCofounder2011-08-08.jpg “Keith McHenry, a co-founder of the first Food Not Bombs group, serving food at the park in May. He was in jail Thursday.” Source of caption and photo: online version of the NYT article quoted and cited above.

China’s “Orwellian Surveillance System”

BeijingWebCafe2011-08-07.jpg “A customer in a Beijing cafe not yet affected by new regulations surfed the Web on Monday.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A4) BEIJING — New regulations that require bars, restaurants, hotels and bookstores to install costly Web monitoring software are prompting many businesses to cut Internet access and sending a chill through the capital’s game-playing, Web-grazing literati who have come to expect free Wi-Fi with their lattes and green tea.

The software, which costs businesses about $3,100, provides public security officials the identities of those logging on to the wireless service of a restaurant, cafe or private school and monitors their Web activity. Those who ignore the regulation and provide unfettered access face a $2,300 fine and the possible revocation of their business license.
. . .
The new measures, it would appear, are designed to eliminate a loophole in “Internet management” as it is called, one that has allowed laptop- and iPad-owning college students and expatriates, as well as the hip and the underemployed, to while away their days at cafes and lounges surfing the Web in relative anonymity. It is this demographic that has been at the forefront of the microblogging juggernaut, one that has revolutionized how Chinese exchange information in ways that occasionally frighten officials.
. . .
One bookstore owner said she had already disconnected the shop’s free Wi-Fi, and not for monetary reasons. “I refuse to be part of an Orwellian surveillance system that forces my customers to disclose their identity to a government that wants to monitor how they use the Internet,” said the woman, who feared that disclosing her name or that of her shop would bring unwanted attention from the authorities.

For the full story, see:
ANDREW JACOBS. “China Steps Up Web Monitoring, Driving Many Wi-Fi Users Away.” The New York Times (Tues., July 26, 2011): A4.
(Note: ellipses added.)
(Note: the online version of the story is dated July 25, 2011.)

The Victimless Crime of Selling Rice Wine

IllegalRiceWine2011-08-07.jpg “Illegal rice wine for sale in Chinatown. The wine is popular among immigrants from Fujian Province.” Source of caption and photo: online version of the NYT article quoted and cited below.

(p. A22) The restaurant looks like so many others in the roiling heart of Chinatown, in Lower Manhattan: a garish sign in Chinese and English, slapdash photos of featured dishes taped to the windows, and extended Chinese families crowding around tables, digging into communal plates of steamed fish, fried tofu and sautéed watercress.

But ask a waitress the right question and she will disappear into the back, returning with shot glasses and something not on the menu: a suspiciously unmarked plastic container containing a reddish liquid.
It is homemade rice wine — “Chinatown’s best,” the restaurant owner asserts. It is also illegal.
In the city’s Chinese enclaves, there is a booming black market for homemade rice wine, representing one of the more curious outbreaks of bootlegging in the city since Prohibition. The growth reflects a stark change in the longstanding pattern of immigration from China.
In recent years, as immigration from the coastal province of Fujian has surged, the Fujianese population has come to dominate the Chinatowns of Lower Manhattan and Sunset Park, Brooklyn, and has increased rapidly in other Chinese enclaves like the one in Flushing, Queens.
These newcomers have brought with them a robust tradition of making — and hawking — homemade rice wine. In these Fujianese neighborhoods, right under the noses of the authorities, restaurateurs brew rice wine in their kitchens and sell it proudly to customers. Vendors openly sell it on street corners, and quart-size containers of it are stacked in plain view in grocery store refrigerators, alongside other delicacies like jellyfish and duck eggs.
The sale of homemade rice wine — which is typically between 10 and 18 percent alcohol, about the same as wine from grapes — violates a host of local, state and federal laws that govern the commercial production and sale of alcohol, but the authorities have apparently not cracked down on it.

For the full story, see:
KIRK SEMPLE and JEFFREY E. SINGER. “Illegal Sale of Rice Wine Thrives in Chinese Enclaves.” The New York Times (Weds., July 20, 2011): A22-A23.
(Note: the online version of the story is dated July 19, 2011.)

Strong Economic Growth Benefits Workers

(p. A13) Workers do well only when the economy grows at a healthy and consistent pace. The biggest threat to long-term economic growth is government growth of the magnitude that characterized the past two years and that is forecast for our future.
Our current problems are not a result of acts of nature. They stem from policy choices that dramatically increased the size of the government. In the past two years, the federal budget has grown by a whopping 16%.
. . .
. . . , the price of the stimulus is what appears to be a permanent increase in the size of government that will continue to slow economic growth. Most economists believe that high debt and high taxes each contributes to slow economic growth, which hurts workers both in the short and long run.

For the full commentary, see:
EDWARD P. LAZEAR. “OPINION; How Big Government Hurts the Average Joe; Job growth is very closely linked to GDP growth. If the economy is not growing, then jobs aren’t being added.” The Wall Street Journal (Fri., August 5, 2011): A13.
(Note: ellipses added.)

“A Colossal Investment Project, Born of the State, Steeped in Corruption”

CandlesChinaHighSpeedTrainCrash2011-08-06.jpg“Online critics have scornfully contrasted the difference between government rhetoric about the promise of high-speed rail and the reality of the troubled network. Local residents mourned victims of the train crash in Wenzhou on July 26.” Source of caption and photo: online version of the WSJ article quoted and cited below.

(p. C1) China’s high-speed rail system is an apt metaphor for the country’s hurtling economy over the past decade: a colossal investment project, born of the state, steeped in corruption, built for maximum velocity, and imposed paternalistically on a public that is at once amazed and skeptical. The rail system has married foreign technology with national ambition in a network billed as the biggest and most advanced in the world, in a country whose per capita income ranks below that of Jamaica.

For the full commentary, see:
JASON DEAN And JEREMY PAGE. “Trouble on the China Express; The wreck of a high-speed train has enraged the Chinese public and focused attention on the corruption and corner-cutting behind the country’s breakneck economic growth.” The Wall Street Journal (Sat., JULY 30, 2011): C1-C2.

Jon Stewart Skewers Media Bias Against Libertarian Ron Paul

The hilarious (but also seriously sad) clip above is embedded from the Mon., August 15, 2011 “The Daily Show with Jon Stewart.”
(Note: I thank Deirdre McCloskey for letting me know about the clip.)