Bankrolling subway expansion

Last week I made an outrageous comment in a posting 'Essentially a disservice,' where I suggested how a government transit monopoly might be broken up in stages. It probably wasn't the best suggestion, I know there are many other ideas that are better. The truth is, if I knew all or even some of the answers to problems like this, I would not be blogging. What I do know is that there are problems of governance that can be approached from other directions different from the prevailing spend and tax paradigm. That is the beauty of a free market and a competition of ideas.

So I was pleased to read a story in one of Toronto's newspapers that a member of the Ontario legislature, MPP David Caplan, suggested that subway expansion in Toronto  could involve private sector money to help finance this very expensive project. I'm not saying that this will break up this particular government monopoly, but that kind of thinking needs to be encouraged. The other good news about this idea is that the newly elected administration  and mayor of Toronto, might be amenable to Caplan's suggestion unlike the socialist mob that ran the city for the past 8 years.    

Which genocide was the worst?

“We should look at every genocide equally.” That is a quote from the president of the German-Canadian Congress in their complaint against a permanent Holocaust exhibit at the new Canadian Museum for Human Rights in Winnipeg. This article in the National Post on the weekend, shows how divisive government assistance can be. The controversy highlights two issues, the first being which genocide was the worst?

The Armenian and Rwandan Genocides were horrible and tragic events; but to compare them to the Holocaust is a disservice to the memory of those lost through the 1930's and 40's, and the survivors.  

The Holocaust was unique in human history because it involved legislation by the German government of the time, including the participation of the professional class and the entire legal system. Furthermore, for the president of the German-Canadian Congress to compare any of those events to the expulsion of Germans from East Prussia at the end of the Second War is intolerable.

Secondly, this new museum in Winnipeg is heavily funded by taxpayer’s money from various levels of government, Federal, Provincial and Municipal, including to their dismay, citizens who are members of the German-Canadian Congress.  Government cannot and should not try doing all things for all people. If the museum was funded entirely by private and corporate donations this controversy would be moot.

"If it ain't broke.." The internet does NOT need fixing

Grow or die!
That's probably the reasoning behind the FCC's push to regulate the internet, and protect us all from the unfair practices of the major internet service providers. Wait a minute, what unfair practices?
The internet seems to be working fine, but government agencies need to justify their ever growing budgets and hunger for power.
ReasonTV supplies 3 reasons why the FCC should keep hands off in this short video clip:

Keep the Internet Free of GOVERNMENT interference!

If you have not yet heard of "Net Neutrality" read this description from Reason TV:

"Net Neutrality is a proposed set of regulatory powers that would grant the Federal Communications Commission (FCC) the ability to control how Internet service providers (ISPs) package their services. Proponents argue that such rules are necessary to ensure that ISPs treat all data on the Internet equally and don't slow or even restrict access to various websites and other parts of the Internet."

"However well-intentioned, the practical effect will be to limit consumer choice and grant the federal government unprecedented power over the Internet, all in the name of fixing a problem that doesn't exist in any meaningful way. Indeed, examples of the behavior that Net Neutrality will combat are few and far between."

Now watch this 4 minute YouTube video produced and animated by Austin Bragg. Written by Zach Weissmueller.

You may wish to subscribe to Reason.tv's YouTube channel and receive automatic notification when new material goes live.

The debt of doom must be repaid!

Watch this clip a few times. The cartoon bears will explain STAGFLATION according to the Austrian School. When you're done send it to your MP or Congressman. Tell them to watch until they get it, who knows the jackasses mentioned in the clip may also watch. It can't hurt.

Do as we say, not as we do!

The ratio of Canadian debt-to-disposable-income has just recently surpassed that of the United States according to Bank of Canada Governor Mark Carney, Finance Minister Jim Flaherty, and Prime Minister Stephen Harper in a media barrage this past week. All three warned that too much debt is dangerous in this low interest rate environment, because rates may move upwards quickly putting many families in jeopardy. Of course they are the ones creating the low rates, but they are just playing with you, don't be fooled!
Why are the rates low? To encourage borrowing and spending of course, but don't you borrow because the aforementioned three money-micro-managers are concerned that there is too much borrowing going on, even though governments continue to borrow. Just do as we say, not as we do! Is that confusing or what?
Amidst all this Keynesian crap rides Maxine Bernier carrying the banner of the Austrian School in his most recent column in the Financial Post. Bernier gets right to the heart of the matter, puts the blame where it belongs, and leaves no doubt that he just does not belong in Stephen Harper's Conservative Party.
 

Essentially a disservice

 

The last time I wrote about public transit was February of this year, and in Toronto, Canada's largest city, the only thing that has changed is the city's administration. I think the change was for the better, but that doesn't mean I agree with the administration on this (or any) issue. The new mayor of Toronto wants to declare the transit system an essential service, effectively eliminating the right to strike for TTC employees during a labour dispute. The argument for, centres around avoiding a citywide disruption by holding the riders hostage, the argument against points to the fact that compulsory arbitration generally favours the employees and usually hurts municipal budgets or requires a fare hike. With only those alternatives many will say lets declare this an essential service and ensure the smooth operation of the city, no matter what the cost. Of course that attitude has escalated budgets, taxes, debt, entitlements, etc.
What has not changed since the election, is that the TTC is still a monopoly in cahoots with its unions! What needs to be asked is: how difficult is it to drive a TTC vehicle? Does driving require years of schooling, or can just about anyone who can drive do that job? The job requires a Grade 12 education and a 30 day training course, and pay starts at about $22.56 per hour rising to $29.43 after 2 years or just over $60,000 per year, not including overtime. A non-unionized truck driver gets about $18 per hour, a school-bus driver can make just over $16 per hour. Yes, truck drivers do not interact with riders, but the jobs are similar and in many instances the truck driver has a tougher more demanding job. The school bus driver also has a special responsibility. How to reduce the cost of TTC employee compensation?
Is it possible to automate some of the TTC jobs? Absolutely! For example, when was the last time you personally interacted with a bank teller to do your banking? I require a human bank employee maybe two or three times a year, at all other times my banking is done remotely by phone, computer or ATM. Are there TTC jobs that can be done by machine? Yes, but the important question is, is it possible to automate jobs and get around the public sector unions? I suspect automation will come eventually happen as it has in many other cities.
But I'm avoiding the elephant in the room. Is it possible to break up the TTC monopoly and give transit riders real choice? How about getting the city to sell the bus routes to a private company or consortium? The subway and streetcar lines may be kept in the public sector for the time being, those being the easiest to automate eventually. The private sector bus routes could become directly competitive with the remaining public system. TTC administrators would have less responsibility and need a much smaller budget. The two systems would operate in parallel, supporting one another where it was mutually advantageous. The private sector bus drivers could be offered a profit sharing deal, maybe shares in the company, dividends and other incentives. Is this crazy? Only if you are still stuck with the idea that government is there to solve all problems, look around, it's not working. Competition will improve transit, to consider anything else at this point is essentially a disservice to riders.    

Electric dreams, cold reality bites

That picture is the visual readout for the Chevy Volt on a cool late fall morning. Battery operated things don't work that well in cool/cold conditions, all Canadians know that, and electric cars of course run on batteries. If the temperature is less than minus 4 degrees Celsius (26F), the fossil fuel engine on the Volt comes on to help "condition" the battery, then shuts down after 3 or 4 minutes. The electric engine works optimally at 20 degrees Celsius (70F).
So as I look out on this frigid mid-December day, where I doubt that the temperature reached minus 12 Celsius (8F) with a minus 20C windchill, I wonder how the Volt would have performed. Probably not to well. The Volt doesn't like extremes of temperature, that is lower than minus 4C. Extremes!!
Gwyn Morgan has an interesting take on electric car dreams in the Globe today. I guess those booster cables will be really busy in the future. Can you boost an electric car?

Lights. Camera. Activism.

Those of you that have read Ayn Rand's epic novel Atlas Shrugged, may have heard rumblings of late, that we are in fact living the novel. Atlas is shrugging, the novel is prophetic!
I suspect Rand thought exactly that, when the novel was published 53 years ago, but who knows. Certainly there are aspects of today's news stories that resemble Atlas Shrugged, but thats true of Orwell's Animal Farm, Nineteen Eighty-Four and other dystopian fictions.
The people at the Ayn Rand Institute however, want to stir the pot a bit and possibly catalyze some action through activism. They have sponsored a short video contest, submissions have closed (Dec. 8/10), the purpose being to continue the current rumblings. Why not? It's a great idea, some of the videos are very clever and the good news is, you may still vote for your favourite until Dec. 22nd, 2010. All the videos are located here, all deserve commendation, and I have posted one of my favourites below.
The entire enterprise anticipates Atlas Shrugged, Part 1 (the movie), scheduled for release on April 15th, 2011. Isn't that income-tax-deadline-day in the U.S.? Coincidence? 

The myth of deflation and wisdom of economics professors

Tugwit-the-Terrible strikes again.
The fear of falling prices and thus the fear of a currency that could buy tomorrow, more than it bought yesterday (deflation), keeps government central bankers awake at night. Imagine borrowing a ton of money (like most countries already have), then having to repay it? Its much easier to repay the money if you could print some of it in your basement and scam the lenders. The sad truth is, that IS the job of central bankers like Ben Bernanke in the US (whoa to the Chinese). That's called inflation, and despite what Mr. Bernanke says, he LOVES inflation, he needs inflation, and will do anything to encourage it.
One of the first things central bankers do before they warm up the printing presses, is to hint to the media that deflation is possible, and that it is bad. I'm not sure why its bad, I like the fact that my computer today is faster, better, and CHEAPER, than my previous computer. I think that is deflationary, in fact my standard of living improves as prices deflate! Don't they? I'm confused, so I will let the people at the von Mises Institute explain.
After you have looked at that, watch this from Mr. Tugwit's Channel. Tugwit pulls no punches!