Category Archives: Regulation

Something Stinks About This Tax Proposal

By Peter Galuszka

Pick a number. Any number.

Could 49,000 jobs be created? How about 44.000 jobs? It could be 77,000 jobs, or maybe as few as 900 jobs. These are the all-over-the-board possibilities suggested by the grandly-named Thomas Jefferson Institute for Public Policy in Springfield, which touts itself as a non-partisan think tank, when, in fact, it is a conservative business lobby.

They have a new study, praised by fellow blogger Jim Bacon, that supposedly would restructure taxes in Virginia in ways to warm the hearts of Gov. Robert F. McDonnell and Lt. Gob. Bill “The Jobs Guy” Bolling. The study suggests somehow changing the states sales tax, while expanding it or not expanding it to ”exempt” sectors. The nut of the study is the elimination of three state business taxes that have been around for years – the Business Professional Occupation Licensing tax, the Machine and Tool tax and the Merchants Capital Tax.

Getting rid of these nettlesome taxes has long been a mission of the state’s business lobby. “There is no net tax increase suggested in this study,” writes TJ Institute president Michael Thompson. The study, however,  seems to suggest that eliminating the three business taxes would cost localities $834.1 million that somehow would come from somewhere else.

I gather the make-up money would come by sticking the poor and middle class with extra sales taxes in areas now “exempt from sales taxes.” The states sales tax is now 5 percent but for some exempt foodstuffs, it is only 2.5 percent. The Thompson study doesn’t say exactly which “exempt” sales taxes would be eliminating (although it presumably would be enough to make up $834 million). It does suggest lowering the sales tax overall, but its target numbers vary and there’s little discussion about which and what exactly.

The more bizarre points of the report are the “nine” scenarios that offer a gobble-dee-gook of combinations. Most of the report makes little sense, but it makes bold jobs growth predictions. “Jobs created” range from 900 to 77,000. There is no clear cut analysis of how these out-of-the-dark jobs numbers come from.

Thompson claims he worked with two outside groups to come at his analysis. One is from Chmura Economics and Analytics, a Richmond-based forecasting firm, hired by the TJ Institute  to study various sales tax exemptions. Its head, Chris Chmura is a reputable, former Fed economist, but if her analysis is solid, there is no way of telling in Thompson’s report.

The voodoo economics seems to come from the so-called Beacon Hill Institute of Suffolk University in the Boston area. The fiscally conservative and politically-charged think tank apparently did the “pick a number” jobs creation numbers crunching. The institute itself is suspect. It gets funding from the arch-conservative Coors beer empire that is famous for finding ways to diminish the rights of gay people. Its findings are under constant attack by Massachusetts labor unions and the Massachusetts Taxpayers Foundation, a watchdog group.

The Thomas Jefferson Institute, in my book, is likewise suspect. It is populated by right-wing lobbyists and not respected economists. In the past, it has touted the supposed benefits of offshore oil drilling in Virginia and cited the projections of an Old Dominion University professor who later told The Wall Street Journal that his estimates were informal and not to be taken seriously.

It is too bad that Bacon’s Rebellion has been hooked by this TJ report without thinking it through.

 

Subscribe To Site:

Corey Stewart’s Racist Baggage

By Peter Galuszka

Corey A. Stewart, the scourge of “illegal” immigrants and standard-holder of good old fashioned American values, is now running for lieutenant governor on the Republican ticket in 2013.

News reports of his recent announcement were predictably bland – comments in the right-wing blogosphere even more so – despite the fact that Stewart is one of the most divisive, if not downright racist, politicians in recent Virginia history.

As a member of the Board of Supervisors of Prince William County since 2003, Stewart is famous for his movement to require county police to profile anyone they suspected of being illegal immigrants if they were stopped. This law was obviously aimed at brown-skinned Latinos. Similar legal requirements were later adopted statewide in Arizona and Alabama, bringing the U.S. global derision.

One immediate effect of Stewart’s 2007 initiative was that Hispanic immigrants started fleeing the county in droves regardless of whether their papers were entirely in order or not. Stewart claims that his move caused violent crime to drop 37 percent in the largely white and wealthy suburb of Washington, D.C. chock-a-block with federal jobs and cul-de-sac homes. More informed individuals, such as Steven Camarota, research director of Center for Immigration Studies, says the link between violent crime and illegal immigration is a lot more tenuous.

Among the negative fallout from Stewart’s xenophobic grandstanding was that it pit white-skinned against dark-skinned and haves against have nots. The lead-in to the law and the aftermath brought on some very ugly scenes that drew to the soul and conscience of what had been a rather quiet, growing county.

For an idea of just how rancid Stewart’s ideas were, check out the short, award-winning film 9500Liberty by Annabel Park and Eric Byler. The 2010 documentary runs less than five minutes or so, but shows Americana at its worst. In one famous scene, an elderly white man screams at Park and Byler to “speak English” and get legal. In response, Park, who was born in South Korea, is a naturalized American citizen and studied at Boston University and Oxford, produces her U.S. passport and flashes it in his face.

Even the chief of the county police has big trouble with Stewart’s law, which Stewart later tried to expand to the rest of Virginia in his “Rule of Law” campaign. My memory of Stewart is in October 2010 at the “Virginia TeaParty Patriots Convention” in Richmond manning a little booth trying to dish out anti-immigrant ideas. He seemed to be ignored amidst the hubbub of deficit hawks, Patrick Henry re-enactors in Colonial garb and gun fanatics packing Glocks and Colt 45s in Velcro holsters.

In any event, bashing immigrants has gone out of style at least for now. The reason is the economy. Fewer undocumented foreigners are coming here because jobs are nil. Ironically, Hispanic construction workers had been flocking to Prince William about 10 years ago to help serve the demand for badly-planned cookie cutter houses, including McMansions.

When the housing market tanked, some stayed, weren’t quite legal and their brown skins became more evident to the white folks when they were shopping at the county’s many strip malls. In an odd way, it’s a bit like Arizona which had been run by dark-skinned Native Americans and Spanish for centuries and was not even a state until 1912. Then, around the 1960s, flocks of retirees of more northern European ancestry showed up. Suddenly, Arizona became “American” and had to be protected.

For his lieutenant governor’s campaign, Stewart seems to have dropped the immigrant bashing because it has gone out of style. Instead, he says, he weathered the recession by not raising taxes in Prince William but investing in roads and “public safety’ (code word for immigrant bashing?) and cutting $143 million from the county budget.

He says:  “Prince William County is a model for how to implement good conservative principles. Taxes are down, crime is down, and growth is up. I am going to bring to the Office of Lieutenant Governor the same conservative principles that I have led Prince William County with over the past 6 years.”

Naturally, he fails to mention that many of those new jobs come out of the federal budget, but no matter. The bigger point is that Stewart is going to have to come to terms sooner or later with the impact of immigration on economic growth now that recovery seems in the air. That will raise the immigration issue yet again.

Even the Wall Street Journal notes on its editorial pages today that too much visa protectionism is hurting the U.S. India is about to file a complaint with the World Trade Organization against a 2010 U.S. law that hikes fees for visas for highly skilled workers from India. Meanwhile, rejections of  H-1B and L-IB visa applications for well-qualified foreign workers are considerably up.

One wonders what Stewart, who is casting himself as  yet another “jobs” Republican, thinks about this. One thing he might be sure of. Some darker-skinned foreigners with PhD.s in highly technical fields that many Americans lack may think twice about moving to Prince William County, or maybe even the Old Dominion if he wins his state race.

Subscribe To Site:

Sugar Shock

Food activists proved wrong about fat are now setting their sights on sugar.

Image credit: Washington Times

by James A. Bacon

Once upon a time, there was a medical “consensus” that fat and cholesterol in the diet were major causes of heart disease. Armed with this “settled science,” the public health establishment moved in the 1970s to expunge the offending substances, beyond a basic minimum deemed to be necessary, from Americans’ diets. Food bureaucrats established dietary guidelines. Physicians ordered billions of dollars of blood tests. Pharmaceutical companies made tens of billions of dollars on drugs that suppressed cholesterol levels. Food companies, castigated in some quarters as soulless merchants of dietary corruption, were compelled to report the nutritional breakdown of their packaged products. Badgered by public officialdom and the media over the decades, Americans slowly, grudgingly changed their eating habits.

What good did it do them? Americans are more overweight, more prone to diabetes and more at risk of heart disease than ever before. Now, it transpires, the public health consensus and settled science might not have gotten it right. A new wave of scientific research finds that the worst culprit of all is sugar. CBS‘ “60 Minutes” hit the highlights of that research in a show broadcast April 1, “Is Sugar Toxic?”

In that segment, Dr. Sanjay Gupta interviewed Dr. Robert Lustig, a pediatric endocrinologist who was for years the proverbial voice in the wilderness.

Gupta: “What are all these diseases that you say are linked to sugar?”

Lustig: “Obesity, Type 2 diabetes, hypertension and heart disease itself.”

Gupta: “So, with the best of intentions, they said, it’s time to reduce fat in the American diet.”

Lustig: “And we did. And guess what? Heart disease, metabolic syndrome, diabetes and death are skyrocketing.”

Gupta: “Dr. Lustig believes that’s primarily because we replaced a lot of that fat with added sugars.”

Lustig: “When you take the fat out of the food, it tastes like cardboard. The food industry knew that. So they replaced it with sugar.”

Prediction 1: Often wrong but never in doubt, the progressives and do-gooders will develop amnesia about the past 40 years of regulatory activism. The old “settled science” will go down the memory hole, to be replaced with a new “settled science.” With new demons to castigate and a new cause to justify meddling in peoples’ lives on the grounds that they are too ignorant, slothful or obstinate to do what’s good for them, progressives will embark joyfully upon a new crusade. Soon we’ll be hearing how sugar is as addictive as cocaine. (Oh, wait, Dr. Gupta quoted a different scientist saying exactly that.) Sugar companies will replace the fat peddlers at McDonald’s as the new villains du jour. (Dr. Gupta also interviewed a sugar-industry lobbyist.)

Prediction 2: Progressives will not engage in the slightest bit of introspection. It will never occur to them to think, “Gee, if the science wasn’t really settled about heart disease, could the science really be settled about, say, global warming?”

Prediction 3: The American public will grow ever more distrustful of the way science is presented to them by the do-gooders and media, which in turn will lead do-gooders and the media to demean the intelligence of the American public.

Glenn Reynolds recently pointed out in the New York Post that conservatives are no more distrustful of science than liberals and progressives, despite the conceit of liberals and progressives that they represent the “evidence-based” school of thought in contrast to creationists, global-warming deniers and other assorted Neanderthals. Conservative distrust, Mr. Reynolds suggests, stems from “the increasing use of science as ammunition for big-government schemes.”

I concur. In my experience, conservatives do not quibble with the scientific method as a way to advance knowledge. But they distrust the intermediaries between the scientists and the public – the journalists and good-government activists who purport to interpret the findings of the “scientific community” – who frequently minimize the uncertainties in the science and extrapolate to policy conclusions not supported by science.

Prediction 4: It’s just a matter of time before we start hearing, “Hey, we knew a sugar tax was a good idea!”

As for me, I’m stockpiling KitKats, Oreos and Eskimo bars. If the goo-goos want to take my confections away from me, they’ll have to pry them from my warm, sticky fingers.

This column was originally published in the Washington Times.

Subscribe To Site:

What Baconauts Won’t Discuss

By Peter Galuszka

Reading the Bacon’s Rebellion Blog always displays breathtaking contradictions. Chief among them is the huge contradiction between pushing “smart growth” and shunning any form of increasing gasoline taxation.

The crux is that we have lots of horrendous sprawl in the state such as all of Northern Virginia, Route 3 in Fredericksburg and U.S. 29 in Charlottesville. We have underfunded and under-maintained roads. That all adds up to a death spiral of bad planning and a slavish adherence to el-cheapo ways of doing things – all in the name of the Cato Institute.

In Virginia, for instance, the state gasoline tax is 17.5 cents a gallon. It hasn’t been raised in 25 years. It hasn’t even been made to adjust for inflation. By contrast, North Carolina’s gas tax is 38.9 cents per gallon.

As politicians, especially Republicans such as Gov. Robert F. McDonnell stubbornly refuse to consider the obvious solution to their many road issues, they have the rest of us jumping through one convoluted hoop after the other trying complicated ways to get funds without taxation. It’s a bit like trying to breathe without air.

That brings up another point – the insane accusations that Barack Obama is responsible for $4 a gallon gasoline. GOPers like Mitt Romney and Bobby Jindal (oil state guy) claim that gasoline prices have doubled under Obama and his energy policies are now creating havoc at the pump. The reality is that setting gasoline prices has a lot more to do with Asian demand the Iranian nuclear facilities than the policies of one U.S. president, who, by the way, has made big progress in weaning the country away from foreign oil.

Yet the biggest irony is spelled out in the latest issue of The New Yorker and comes, surprise, from Romney’s own economics adviser, Greg Mankiw. The Harvard professor recently wrote: “Economists who have added up all the externalities associated with driving conclude that a tax exceeding $2 a gallon makes sense…By taxing bad things more, we could tax good things less.”

Now, if you happen to read Bacon’s Rebellion’s most prominent blogger, we get an education how smart growth could make our lives better. We need to build more housing in more densely-packed areas, go for green zones, reduce wasteful and polluting gasoline use and try mass transit (all dipped in a libertarian flavor of course!)

The unspoken part is what Mankiw brings up. Federal gas tax is a puny 18.4 cents a gallon. If you raise  it to $2 a gallon, as Mankiw suggests, you’d suddenly have smart growth – presto! You’d have a lot of other things, too, such as much higher mileage cars, a fatter federal checkbook and less stupidity when it comes to highway and housing planning.

Are we going to get this? Of course not. The status quo politicians are hardly going to pretend the gas hike issue exists while blaming Obama for something not of his making. Meanwhile, readers of Bacon’s Rebellion will be treated to the increasingly amusing acts of contortionists stretching and folding any way they can to avoid discussing tax hikes. As a former altar boy I can appreciate trying to keep the dogma pure.

Subscribe To Site:

Update: Menhaden 1, General Assembly 0

                                                                                                                

Little White Lies.  Politicians in Virginia support motherhood, apple pie and the Chesapeake Bay.  Just ask them.  Of course their support for motherhood comes complete with state police in riot gear when actual mothers show up in Richmond.  And the frat boys in the General Assembly like apples because they can be turned into booze with uncapped alcohol content.  This uncapped hard cider makes the tales of bedroom exploits all the more humorous when told from the floor of the General Assembly.  The Bay, however, is sacrosanct.  Unless it impinges on campaign contributions from those who would destroy it.

Of Mice and Men … haden.  Menhaden are small, oily, inedible fish that once swam in great quantity in the Bay.  Essentially useless as a food for humans, menhaden are among the greatest of delicacies for many of the Bay’s famous fish.  Striped bass, bluefish and weakfish will stand in long lines for a table at the Menhaden Cafe.  At least, they used to dine at the Menhaden Cafe.  That was before the Virginia legislature bucked pressure from the other Atlantic seaboard states and let a Texas company do its level best to wipe out the Menhaden stock in the Chesapeake Bay.  This cowardly action has led to a deplorable drop in the menhaden stock.

A silver fish with green highlights.  The only saltwater fish in Virginia regulated directly by the General Assembly is the menhaden.  This is because the menhaden is the only fish that can turn directly into campaign contributions from its greatest enemy – the Omega Protein Company.  Based in Houston, Texas, but operating out of Reedville, Virginia, the Omega Protein Company uses its ten factory ships, planes and helicopters to pillage the Chesapeake Bay of its menhaden.  Omega is such a pariah in the marine management world that every Atlantic state, except Virginia, has banned its factory ships from their coastal waters (although North Carolina allows limited access).  Virginia’s love affair with Omega Protein is buoyed by waves of cash.  $55,000 to Gov Bob McDonnell, $106,000 to state legislators, $53,000 to Virginia’s federal politicians and another cool $3M in lobbying.  All of which has given the Clown Show in Richmond sufficient “courage” to persecute the little fish to the edge of extinction.

The universal fate of bullies.  Unfortunately for Virginia’s politicians, not all states have legislatures laden with greasy fingered, greedy eco-cowards.  Last November, representatives from the Atlantic States Marine Fisheries Commission (ASMFC) helped the little fish pivot on its left dorsal fin and throw an overhand right straight into the faces of Virginia’s political class.  Metaphorically speaking, of course.  Virginia’s political class was left with two black eyes, a broken nose and a mouth full of blood and tooth fragments.  Metaphorically speaking, of course.  The ASMFC voted 14-3 to implement a strict menhaden fishing limit across all of the Atlantic states – including Virginia.  The net effect of the cap will be a 37% reduction in the commercial landings of menhaden.  Or, put another way, the Chesapeake Bay will finally start to recover its menhaden stock.

Numbers?  We don’t need no stinkin’ numbers.  Much of the opposition to menhaden fishing limits has come from Virginia politicians concerned about the impact a limit will have on the 300 largely seasonal jobs provided by the Omega Protein Company to the people of Reedville, Va.  It is a legitimate concern.  However, math has never been our political class’ long suit.  There can be no doubt that overfishing of menhaden is hurting the sportfishing industry in the Chesapeake Bay.  Striped bass are now routinely found to be malnourished in the Chesapeake Bay.  Anecdotally, the charter fishing business seems to have fallen on hard times.  It seems that annihilating the source of food for sport fish hurts the sport-fishing industry.  Go figure.

Omega is the only large scale commercial menhaden fishing operation on the East Coast so calculating the benefits of that industry is fairly easy.  They have sales of $60M per year.  They employ 300 Virginians at peak and generate demand for another 219 affiliated jobs outside the Omega Protein Company.  Meanwhile, the recreational fishing industry in Virginia and Maryland generates $332M of economic activity and provided 3,500 jobs in 2008.  It seems to me that a 37% reduction in commercial menhaden landings is justified by the recovery of a 3,500 job industry.  Of course, the recreational fishing industry is largely composed of small businesses which cannot match a single corporation’s ability to shove wads of cash into the pockets of our political class.

The Good, the Bad and the Clown Show.  Four separate bills were introduced into the General Assembly’s 2012 session regarding menhaden management.  The bad bill was SB18 patroned by Sen. Richard Stuart, R-Westmoreland.  Stuart’s bill was a half-assed attempt to have Virginia resign from ASMFC once that organization voted to limit menhaden fishing.  The bill was reported out of committee on a 9 – 6 vote.  However, it was carried over until 2013 by the Finance Committee on a 14-0 vote.  The menhaden have a reprieve of at least another year and Sen Stuart gets to tell his constituents that he tried.  Actually, Stuart is a good enough guy.  He has pressed legislation to reduce phosphate pollution and is sensitive to conservation efforts.  The good bill was SB466 patroned by Sen Ralph Northam, D-Norfolk.  Sen Northam’s bill was the mirror opposite of Sen. Stuart’s bill.  It specifically authorized Virginia’s regulator to adopt the ASMFC’s fisheries plan for menhaden.  It was also continued to 2013 with a 15 – 0 vote in committee.  The General Assembly’s inability to get much of anything done was a blessing.  They’ll get to solicit more money from Omega to join battle next year and I’ll get to put more delicious striped bass, bluefish and weakfish on my table.

– DJ Rippert (friend of the Bay menhaden)

Subscribe To Site:

¡Viva la Revolución!

Estimado Jefe!

Usted nunca debe salir de la ciudad, señor! Ahora que usted está ausente, la revolución comienza! Amados lectores de ya no ver los artículos que glorifican a los ricos y privilegiados. Vamos a ayudar a la tierra y los pobres y redistribuir los fondos de cobertura. ¡Viva la Revolución!

 

Subscribe To Site:

That Danged News Media!

By Peter Galuszka

After a deluge of negative national publicity in recent weeks over a number of socially conservative and highly controversial bills that he originally endorsed, Virginia Gov. Robert F. McDonnell has complained on a WTOP radio interview that he’s disappointed with the news media.

“All we ever ask from the media is to be fair, cover what’s actually going on,” McDonnell told listeners.

Oddly, the news media has been covering exactly what has been going on. Virginia has suddenly become the tip of a spear in a hard right-wing agenda. The General Assembly has been flooded with bills to force women to have a transvaginal ultrasound exams before they get an abortion, to repeal laws restricting monthly handgun sales, to deny poor women abortion money in special cases, to force police to check the citizenship of anyone they arrest, among other legislation.

McDonnell whines that the media should be looking at 100 other bills, such as adjusting the state pension system, boosting education and easing traffic congestion.

He must want the good old days a while back when he was being touted as a modern and responsible new type of Republican governor who can cut budgets while attracting jobs.

Too bad for the governor. It may not be his fault in the most recent elections that a number of socially conservative Republicans gained enough legislature seats to push laws that had been held in check for years. Just after those elections. But he backed these people. He basked in media attention that his enlightened leadership was somehow responsible for their victories.

Yet once these fledglings got into power, they went so crazy with a multi-front socially conservative offensive that the national media could not help but notice. Nor was the humor (if any) of the situation lost on scriptwriters at “The Daily Show” and “Saturday Night Live.”

McDonnell wants to be ready for prime time. His WTOP complaints show that he isn’t.

Subscribe To Site:

Punting on Obamacare

By Peter Galuszka

The Virginia General Assembly is taking a powder on Obamacare.

Faced with a federal mandate of next January to show they are making progress,
Richmond legislators have dilly-dallied past the problem, many apparently  fearful that too much action on setting up state-run exchanges for people to shop for health insurance will bring on conservative wrath.

The Patient Protection and Affordable Care Act will require that every American  have a health insurance plan and requires the states to set up exchanges to offer  plans to citizens who otherwise can’t find one. The act also does away with the  “pre-existing condition” clause that allows insurance firms to deny new  customers they believe won’t make them as much in profits.

To be sure, many states are balking at Obamacare. As of last summer, only California, Hawaii, Maryland, Vermont, Washington and West Virginia had passed laws that will set up exchanges. A number of states, like Virginia, are in court seeking repeal of Obamacare on the grounds that forcing Americans to buy insurance violates their constitutional rights.

Republican Gov. Robert F. McDonnell has been publicly silent recently on the legislature debate but it is clear where he stands. He wants the state to avoid setting up exchanges until the U.S. Supreme Court rules on Obamacare. As a potential GOP vice presidential candidate, he hardly wants to get too far ahead on a federal program despised by the right wing.

True, there are problems with the General Assembly’s attempts to set up the  exchanges. One proposal would have the State Corporation Commission, which  oversees private companies and utilities, do it. Critics say that the SCC is  too consumer-unfriendly for the job. But alternative proposals to set up  independent state agencies to handle the exchanges run into the anti- government crowd’s opposition.

With the clock ticking on this year’s session, it seems likely that nothing will get  done. This once again raises the question of state versus federal rights – one  in which Virginia has a dark past. There is a tendency in the Old Dominion to  ignore federal laws or court rulings it doesn’t like. The shining example is  Massive Resistance, in which the state’s official policy was not to integrate  schools and close many down rather than bow to the legal power of the U.S.  Supreme Court.

We are seeing ghosts of that movement in play today.

Subscribe To Site:

“The Iron Lady”

By Peter Galuszka

“The Iron Lady,” a biopic starring Meryl Streep, has brought fresh attention to the policies and philosophies of Margaret Thatcher, the ground-breaking leader who served as Great Britain’s Prime Minister for 11 years – from 1979 to 1990.

Always controversial, Thatcher pioneered much of the conservative framework still in play today, such as privatizing state-owned companies, bashing labor unions, cutting budgets, pushing for flat taxes payable at equal rates by rich and poor and promoting the idea of individual opportunity as a national driver.

As we now see two decades later, while initially successful, a lot of Thatcherism turned out to be bunk and we are suffering for it now. That said,  I have to admit that Thatcher is a fascinating personality.

My own involvement came in 1987 when I was a magazine correspondent in Moscow. She was visiting Mikhail Gorbachev, the Soviet leader and man she could “do business with.” She and Ronald Reagan set up the policies that helped lead to the transition of the Soviet Union although neither should get too much credit for destroying that Communist-run state. The real cause of death was decades of internal rot, but that’s another subject.

When Thatcher walked up to the podium at the Foreign Ministry press center on the Garden Ring Road in downtown Moscow, the air practically went electric. She was a truly stunning presence. Her direct manner of speech in her high-pitched voice had the audience riveted. She answered questions with great speed and wit. She was a crystallographer by training but had a natural sense of politics and theater.

Reagan, whom I also heard in Moscow,  seemed like a purely stage-managed Hollywood production.  He entered the stage with a friendly wave and a stunning brown suit, but he seemed extraordinarily simple-minded, as if he didn’t really understand what was going on and was reading from a very good TelePrompter.

Thatcher, to be sure, had plenty of enemies. She came to power when the U.K. was in a recession far worse than the one the U.S. has recently endured. When I visited the West Midlands in the early 1980s, British  television news was a steady stream of job cuts.  She beat back union and government control that had dominated the economy since World War II and with great fanfare privatized a few big, government-controlled corporations. She led the Brits in their pathetic war with Argentina over the Falklands and took a tough line against the Irish Republican Army. In the process of the latter, her tough stances spurred a number of deadly bombings. Post-Thatcher negotiations finally
sorted things out.

Her model of privatization and budget spending became the role model in the last decades of the 20th century and the decade so far this century. Longer term, her results have been mixed. The Russians were encouraged to follow the Thatcher model with privatization and  ended up with the oligarchs and Vladimir Putin. Bill Clinton was actually a  Thatcherite and his go-easy regulatory policies regarding  Wall Street, along with George W. Bush’s ineptitude, helped set the U.S. up for the Great Recession.

Still, the movie is a good touchstone to ponder the Thatcher years. Despite an excellent performance by Streep, the movie is marred by its boringly-long portrayal of an elderly Thatcher suffering from dementia. It really doesn’t go too far in examining her policies. The movie, like Thatcher herself, seems a promising idea gone wrong.

Subscribe To Site:

Good Move on Uranium

By Peter Galuszka

Gov. Robert F. McDonnell has punted on the uranium controversy and that’s a good thing, assuming the General Assembly doesn’t lift the mining ban anyway.

There are simply too many unknowns about mining the tract owned by Virginia Uranium near Chatham and the state has no knowledge or regulations about mining the highly toxic and radioactive substance.

What’s more, there are big questions about whether it is needed. Market prices are stable and while developing countries such as China and India plan many new nuclear power stations, advanced economies such as Germany are scaling them back after the Fukushima disaster in Japan last year.

McDonnell’s decision comes despite an onslaught of expensive and extensive flackery by the local people who own the farms where the uranium deposit is located and the Canadians who actually control the company. The Virginia Public Access Project reports that Virginia Uranium has paid out more than $150,000 to political candidates and has hired five powerhouse Richmond-based PR firms. It paid all expenses for a dozen legislators who unwisely made a trip to France to see an abandoned uranium mine and who were treated to the delights of Paris on the way.

Virginia Uranium says it’s just dandy that McDonnell recommends delaying lifting the moratorium and continues its campaign, including a full page ad in the Richmond newspaper with drawings showing just how safely the tailings from the mine project would be stored.

The problem is that the issue isn’t just going away. If it doesn’t, the state will have to cough up money as schools go without to come up with regs. Virginia Uranium shouldn’t pay for them — they’d be tainted. But why should the state be burdened when it has so many other things on its “to pay” list?

Subscribe To Site: