Richard Epstein At Hoover-‘Progressively Bankrupt’

Full piece here.

‘It is quite clear that Illinois has passed the point of no return, even if Connecticut has not. But owing to the embedded political powers, little if anything can be done to salvage a situation that is careening toward disaster. Fortunately, the damage will be confined within the borders of the state unless the United States supplies an ill-advised bailout. That’s the beauty of our federalist system.’

-A link for Michael Lewis’ article about California politics, public pensions and Schwarzenegger’s time in office.

-Jim Powell At Forbes: ‘How Did Rich Connecticut Morph Into One Of America’s Worst Performing Economies?’

A Few Thoughts On Walter Russell Mead At The American Interest: “Why Blue Can’t Save The Inner Cities Part I”

David Harsanyi at Reason has more on the GM bailout.  Non-union employees pensions got raided and taxpayers foot the bill, so that Obama and the UAW can maintain power.

How did Detroit get here? Very comprehensive and easy to navigate.

From Via Media: ‘California’s Centrist Dems Overwhelmed By The Left’

Full post here.

Promises, promises.

‘San Jose Mayor Chuck Reed’s promising ballot initiative to fix California’s municipal pension problems went down in flames this weekend, before it even had a chance to come up for a vote. The initiative would have amended the state constitution to allow cash-strapped municipalities to restructure pension promises.’

Check on Robert Anton on Tom Wolfe’s journey to California during the 60’s:

‘And without Wolfe, we would not understand California-or the California-ized modern world.  At the time of his most frequent visits the state was undergoing a profound change, one that affects it to this day and whose every aspect has been exported throughout the country and the globe.  Both have become much more like California over the last 40 years, even as California has drifted away from its old self, and Wolfe has chronicled and explained it all.’

See Tom Wolfe’s Radical Chic: That Party At Lenny’s for a rich account of the 60′s.  A New Yorker review of Wolfe’s new book Back To Blood, with Miami as its subject, here.

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California’s anti-union and anti-immigration democrat-Full video and background on Mickey Kaus here.

A good post on Robinson Jeffers from Malcolm Greenhill, which highlights how the rugged and vast beauty of California makes it easier to imagine what culture is, and what it ought to be on this outpost of Western Civilization.

Hearst Castle 4 by Bill Kuffrey

Hearst Castle 4 by Bill Kuffrey

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-A link for Michael Lewis’ article about California politics, public pensions and Schwarzenegger’s time in office.

Related On This Site:  Victor Davis Hanson Via Youtube Via Uncommon Knowledge: ‘The New Old World Order’Victor Davis Hanson At The City Journal: ‘California, Here We Stay’

Dream big: Via Reason: ‘California’s Public Transportation Sinkhole’ A great city deserves great art extravaganzas…: L.A.’s New Public Art Piece ‘The Levitated Mass,’ Or As The American Interest Puts It: ‘A Moving Rock’

Richard Epstein At The Hoover Institution’s Defining Ideas: ‘California’s Kafkaesque Rent Control Laws’

California Dreamers From The Atlantic-A Brief Review Of Kevin Starr’s History Of California

The people who promise solutions to poverty and homelessness seem to be engaged in a utopian cost-shifting exercise which favors their interests and overlooks crime, violence and personal responsbility…hardly a way to balance the budget: Repost-Heather MacDonald At The City Journal: ‘The Sidewalks Of San Francisco’

Some concentrated wealth on top, a stalled legislature with members who know how to play the game…and a service sector beneath…that probably can’t go on forever: …From The WSJ: ‘Joel Kotkin: The Great California Exodus’

From Bloomberg: ‘How Automakers Became More Equal Than Others’

Full piece here.

On that GM bailout and the $10 billion loss to taxpayers:

‘The administration gave the UAW billions more than bankruptcy law calls for. Typically, bankruptcy reduces union compensation packages to competitive rates. However, GM’s existing union members made few concessions on pay. As the UAW put it, the contract meant “no loss in your base hourly pay, no reduction in your health care, and no reduction in pensions.’

So, what’s the strategy for American growth and prosperity here in the face of manufacturing decline?

I mean, just look at Detroit.

Over five years ago, when GM stock was selling at $2 a share and the debt-holders had been wiped out, this blog put up the video below.  Here’s a brief 2:00 min explanation by Bill Ackman of Pershing Square on why the GM bailout was likely a bad idea.

Politicians reward their friends:

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David Harsanyi at Reason wrote more here.  Non-union employees pensions got raided and taxpayers foot the bill, so that Obama and the UAW can maintain power.  Cronyism on the taxpayer dime at its finest.

How did Detroit get here? Very comprehensive and easy to navigate.

More from Megan McArdle on the behavior that comes with pension bonuses.

Walter Russell Mead takes a look at the blue model (the old progressive model) from the ground up in NYC to argue that it’s simply not working.  Check out his series at The American Interest

From Bloomberg: ‘Detroit Recovery Plan Threatens Muni-Market Underpinnings’

From Arnold Kling: ‘Notes From A Health Care Implementation Discussion’

Full post here.

Read the whole list.  Here’s the final note:

‘The scenario for Obamacare’s death is that the insurance companies “defect” by leaving the exchanges or raising rates to unacceptable levels. As Obama’s personal political strength weakens, the “defect” scenario becomes more plausible’

Out on the political streets, we’ll see what happens.

Fom a previous post of Kling’s:

Down the road, someone is going to get the shaft. It could be my neighbor, it could be me, or it could be both of us. That is, people who are relying on the unfunded systems–public sector pensions, Social Security, and Medicare–might find their benefits cut. Or people who are relying on personal savings could wind up having those savings taxed away in order to address the shortfalls in the public systems. Or all of us could have our savings eroded by inflation, from which we may not be able to protect ourselves.’

There will need to be a reckoning of some sort, and our politics can rarely make such changes efficiently and effectively (for many good, and some not so good reasons).  Perhaps with the obvious public failure of Obamacare, more of the American public will become aware of these challenges we face as a nation.  We’ve been getting diminishing returns for a while, now.

Perhaps…

Kling’s axes which he’s proposed to better understand political philosophies and/or ideologies, which I’ve copied/pasted from elsewhere:

‘Conservatives use a civilization vs barbarism axis.

Libertarians use a coercion vs freedom axis.

Liberals use an oppression axis to view the world – oppressed vs oppressor.’

Food for thought.

Kevin Williamson, at the National Review, and his new book:  ’The End Is Near, And It’s Going to Be Awesome: How Going Broke Will Leave American Richer, Happier, and More Secure.’

Walter Russell Mead’s theory, in part, posits that liberalism 4.0 needs to become 5.0 and start to creatively solve the problems we’re faced with, including globalization, the decline of manufacturing and industry, and the rise of technology.  The ‘blue’ model is behind the times:

Epstein on Obamacare’s Moral Blindnessthe Obamacare Quagmire, and Watching Obamacare Unravel.

Still Looking For Alternatives-Charlie Martin At PJ Media: ‘Obamacare vs. Arithmetic’

Avik Roy At Forbes: ‘Democrats’ New Argument: It’s A Good Thing That Obamacare Doubles Individual Health Insurance Premiums’Megan McArdle At Bloomberg: ‘Health-Care Costs Are Driven By Technology, Not Presidents’

From The Detroit Free Press By Way Of Via Media: ‘How Detroit Went Broke’

Full piece here.

Very comprehensive and easy to navigate.

‘Other cities also have profound problems today — Chicago, Providence, R.I., Baltimore. But only Detroit is in bankruptcy court.’

A sad tale that didn’t have to end up here:

Even by the late 1950s, the signs of strain were showing in industrial cities. Population and housing values peaked in Detroit in the 1950s and began their long and seemingly unstoppable decline. The urban riots of the 1960s, including Detroit’s, accelerated the process.

By the 1960s, in Detroit as in city after city, the process was well under way. And mayors and civic leaders, here and elsewhere, began their long, anguished battle against decline.

The more people that left, the more the city leaders raised taxes and drove more people out until it became a wasteland of decay, increasing mismanagement and corruption.

America:  Tackle your pension problems and municipal debt issues now to help avoid this cruel fate.  The pie needs to be growing.

See this piece from Urbanophile:

‘The last thing Detroit teaches us is that America too often doesn’t learn from its mistakes.  Detroit’s troubles have been evident for quite some time, yet it’s hard to see that many other post industrial cities have managed to carve out a different path.  Rather, they pretended that Detroit’s fall was somehow unique due to its auto industry dependence – and managed to ignore other failed cities as well – while embarking on the same turnaround strategy via conventional wisdom and silver bullets.

Another quote, this time from Ira Stoll:

‘Indeed, if there is a single fact that sums up the state of American political economy at the present moment, it is this: the Boston office building once home to Inc. Magazine and Fast Company, which chronicled and celebrated small and fast-growing businesses, is now the headquarters of a publication called “Compliance Week.”’

Will the tech sector fill the hole?  Fracking, low-taxes and new investment in industry?  An information and knowledge-based economy?

How close are we to drifting into a higher-tax, heavily-regulated, less dynamic, federally managed State of affairs?

Nationalized and potentially socialized health-care?

Take him to Detroit:

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Some links on this site: Charlie LeDuff, Detroit’s populist, citizen journalist’s youtube channel here.  At least he’s sticking around.

Are you looking at beautiful photos and feeling sorry for Detroit, and yourself?  See Time Magazine’s photo essay by Yves Marchand and Romain Meffre (less porn-like, more thoughtful).

Hipster hope, artists, collectivists and small business types can’t save it either:  A Short Culture Wars Essay-Two Links On Detroit & ‘Ruin Porn’

GM is not a municipality, but good money got put in, probably after bad and it reeks of politics: From The Detroit News: ‘How The Treasury, GM Stock Deal Got Done’

What about the popular arts and culture?:Update And Repost-From Grist.Org Via The New Republic Via The A & L Daily: ‘Getting Past “Ruin Porn” In Detroit’…A Few Thoughts And A Tuesday Poem By Philip Levine

A garage sale for the city’s art? Virginia Postrel At Bloomberg: ‘Detroit’s Van Gogh Would Be Better Off in L.A.’From The Detroit Free Press: ‘DIA’s Art Collection Could Face Sell-Off To Satisfy Detroit’s Creditors’

Walter Russell Mead takes a look at the blue model (the old progressive model) from the ground up in NYC to argue that it’s simply not working.  Check out his series at The American Interest

From Bloomberg: ‘Detroit Recovery Plan Threatens Muni-Market Underpinnings’

From Via Media: ‘California Pension Costs May Double Overnight’

Full post here.

Mead is still advocating for a return to a liberalism that, basically, would keep us soluble.  California public salaries and benefits are eating the budget.:

‘For years, states and cities had been hiding the true cost of their generous pension programs. Now that they’ve been stripped of their accounting gimmicks, the true cost of these unviable programs is becoming clear.

This is not what a comeback looks like.’

We’re still looking at a pension crisis in various municipalities across the country.

Hardly the time to be building new high-speed rail projects, eh, California?

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I’m still putting up this quote by Victor Davis Hanson, as it makes so much sense, and thus, will probably not happen:

‘Soon, even the Stanford professor and the La Jolla administrator may learn that illegal immigration, cumbersome regulations, and the terrible elementary schools affect them as well.

The four-part solution for California is clear:  don’t raise the state’s crushing taxes any higher; reform public-employee compensation:  make use of ample natural resources: and stop the flow of illegal aliens. Just focus on those four areas-as California did so well in the past-and in time, the state will return to its bounty of a few decades ago.  Many of us intend to stay and see that it does.’

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California’s anti-union and anti-immigration democrat-Full video and background on Mickey Kaus here.

A good post on Robinson Jeffers from Malcolm Greenhill, which highlights how the rugged and vast beauty of California makes it easier to imagine what culture is, and what it ought to be on this outpost of Western Civilization.

Conn Carroll At The Washington Examiner: ‘California In Crisis’

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-A link for Michael Lewis’ article about California politics, public pensions and Schwarzenegger’s time in office.

-A map from Immodest Proposals on how to divide California.  Topographic crime map of San Francisco. 

Related On This Site:  Victor Davis Hanson Via Youtube Via Uncommon Knowledge: ‘The New Old World Order’Victor Davis Hanson At The City Journal: ‘California, Here We Stay’

Dream big: Via Reason: ‘California’s Public Transportation Sinkhole’ A great city deserves great art extravaganzas…: L.A.’s New Public Art Piece ‘The Levitated Mass,’ Or As The American Interest Puts It: ‘A Moving Rock’

Richard Epstein At The Hoover Institution’s Defining Ideas: ‘California’s Kafkaesque Rent Control Laws’

California Dreamers From The Atlantic-A Brief Review Of Kevin Starr’s History Of California

The people who promise solutions to poverty and homlessness seem to be engaged in a utopian cost-shifting exercise which favors their interests and overlooks crime, violence and personal responsbility…hardly a way to balance the budget: Repost-Heather MacDonald At The City Journal: ‘The Sidewalks Of San Francisco’

Some concentrated wealth on top, a stalled legislature with members who know how to play the game…and a service sector beneath…that probably can’t go on forever: …From The WSJ: ‘Joel Kotkin: The Great California Exodus’

Walter Russell Mead At The American Interest: ‘Twilight of the Blue States’

Full post here.

Where is the money going to come from?  More taxes, more regulations?

‘Over at Forbes, William Baldwin counsels potential home buyers to avoid “death spiral” Blue States that have more “takers” than “makers.” These states are further doomed by poor credit-worthiness,’

but he finishes with:

‘It is important to note, however, that rampant government dependence and economic mismanagement are not exclusively blue-state pathologies. Corrupt and crony Republicans can be every bit as sleazy and dangerous as their Democratic counterparts. South Carolina, Alabama and Mississippi are on this list for good reason.’

The old models aren’t working like they used to.  I’ve often observed that people fight more over the less there is, and the less they perceive there is.

Related On This Site:  Where is Mead coming from?: Repost-Via Youtube: Conversations With History – Walter Russell Mead

 Mead takes a look at the blue model (the old progressive model) from the ground up in NYC to argue that it’s simply not working.  Check out his series at The American Interest.  Technology is changing things rapidly, and maybe, as Charles Murray points out, it’s skewing the field toward high IQ positions while simultaneously getting rid of industrial, managerial, clerical, labor intensive office jobs.  Even so,  we can’t cling to the past.  This is quite a progressive vision but one that embraces change boldly.

Francis Fukuyama has started a center for Public Administration at Stanford…it’d be interesting to imagine a conversation between Eric Hoffer and Fukuyama: Francis Fukuyama At The American Interest: ‘Mexico And The Drug Wars’…Has Fukuyama turned away from Hegel and toward Darwin? Adam Kirsch Reviews Francis Fukuyama’s New Book At The City Journal: ‘The Dawn Of Politics’

Some thoughts on Fukuyama and Leo Strauss: Update And Repost- From YouTube: Leo Strauss On The Meno-More On The Fact/Value Distinction?’

Francis Fukuyama And Walter Russell Mead At The American Interest: ‘None Of The Above’

Dream big: Via Reason: ‘California’s Public Transportation Sinkhole’ A great city deserves great art extravaganzas…: L.A.’s New Public Art Piece ‘The Levitated Mass,’ Or As The American Interest Puts It: ‘A Moving Rock’

Richard Epstein At The Hoover Institution’s Defining Ideas: ‘California’s Kafkaesque Rent Control Laws’

California Dreamers From The Atlantic-A Brief Review Of Kevin Starr’s History Of California

Walter Russell Mead At The American Interest: ‘Rhode Island: Athens of America?’

Full post here.

Well, maybe not Athens, but not doing well and unwilling to face fiscal reality. Mead’s theory is that the end of the blue social model is nigh.

‘As the American political system attempts to grapple with the growing pension, debt and entitlement crisis, three types of responses seem to be emerging.  There is the true blue ostrich approach of the unions themselves and their closest allies: denial and rage.  There is the attitude of more centrist Democrats like Governor Cuomo and Mayor Emanuel: make prudent cuts, hold the line on spending, work to quietly make government more efficient without jumping into a full scale confrontation with the unions.  And there is the Scott Walker, dragonslayer approach: take them on.’

Providence was always a bit corrupt if I recall.

Related On This SiteRepost: Martha Nussbaum Channels Roger Williams In The New Republic: The First Founder

Milton Friedman Via Youtube: ‘Responsibility To The Poor’A Few Thoughts On Walter Russell Mead At The American Interest: “Why Blue Can’t Save The Inner Cities Part I”