• Death to Dead Ideas!

    This isn’t terribly Virginia-specific but I thought I’d share it. Just heard NPR this morning talk with Matt Miller, a Fortune magazine columnist who has written a book titled “The Tyranny of Dead Ideas.”

    His thesis is that many assumptions that have been true in America for decades are no longer true. This really rngs true. A fe:

    Children will make more than their parents: For years it was assumed that as the American dream unfolded, each generation got better jobs and pay. This is no longer the case as a paradigm shift in the economy takes hold. I know it’s not true in my case but that’s my choice. I wanted to be a journalist and not a doctor. But I think our kids will not have the high-paying jobs that many of us have.

    Your company will keep paying for your welfare. Dead long ago. We are the ONLY country in the world that has employers pay for our health insurance in most cases. So, we get really expensive health care that makes our companies uncompetitive in the world markets. Universal health insurance, here we come.

    Tax are bad
    This will be a tough one to swallow to dogmatic BR bloggers but it is true. The current downturn has shown that financial markets can’t regulate themselves and we can’t rely on them for our welfare. Sure we’ll lower taxes to get us out of this mess, but then watch out. All the TMTs of the world are going to have to accept a fndamental shift that will make the U.S>more like tax-happy FRance (or so Newsweek says). Government will be playing a much bigger role in our lives and will need more taxes to help pay for it. Miller says the real issue is tochange who pays the tax. Rather than have a regressive payroll tax that hurts the poor and middle class, tax polluting industries like coal-fired utilities.

    BR bloggers. It’s a Brave New World.

    Peter Galuszka


  • NOTE FOR NMM ON ECONOMIC REALITY

    Rather than add this note to the ANATOMY OF A BAD COMMUTE post, EMR will put it here because it is important to understand these issueS. Why is it important?

    Because NovaMiddleManโ€™s idea of economic reality is exactly why those who made bad location decisions are hurting now and will be hurting far more in five years. All those still alive will still be hurting in fifty years if there is not Fundamental Transformation of human settlement patterns and Fundamental Transformation of governance structure.

    NovaMiddleMan said:

    โ€œLook dude the free market is at work.โ€

    Was this the โ€˜free marketโ€™ that was declared โ€œdeadโ€ in Davos last week?

    The US of A is a democracy and a clear majority are inclined to think Behavioral Economics is now in control and that a โ€œfree marketโ€ โ€“ which according Adam Smith presumes informed buyers and sellers โ€“ has only rarely existed since 1870 outside the minds of those who perpetuated the myth to gain economic and political leverage.

    Some think the โ€œpopularโ€ backlash against the current stimulus packages is due to belief in โ€œfree markets.โ€ Not so, the popular backlash is driven by revolution over what happened to the money that was doled out and wasted in the last stimulus package.

    โ€œPeople make decisions and face consequences.โ€

    But โ€œpeopleโ€ had no idea what the consequences would be.

    Tell us how you feel when you are 75 and still have to work ten hours a day and have no health benefits because of the $75-Trillion in unfunded liabilities for those ahead of you in line.

    Or do you plan to be one of the few lucky ones at the top of the ziggurat? Watch out for the pitchforks, machetes and pikepoles.

    โ€œHere is my perspective. Pardon me for not having as much context. I’m a bit younger than you folks :-p.โ€

    What is that about those who do not understand history having to repeat it?

    In this case there are not enough resources left support a second round of mass overconsumption with 6 billion humans all wanting and deserving a slice of the pie.

    โ€œIts 2003 and I am one of the young people powering the new economy of Northern Virginia.โ€

    Lets say โ€œoverpoweringโ€ the resources upon which a market economy depends. It is not your fault NMM, it is all of our faults but some of us have been pointing out the cliff since 1973, many for longer. Nouriel Roubini has come lately to the Common.

    โ€œSome people want to get married and have kids. In 2003-2006 there were only a couple choices.โ€

    Choices about getting married or choices about getting married and having children and living the American Dream as portrayed by MainStream Media advertising? (See โ€œA Yard Where Johnny Can Run and Play,โ€ 1 Dec 2003.)

    Even for the later there were many choices unless they relied on Autonomobile and shelter advertising and stories in MainStream Media for guidance. Millions of couples made more intelligent choices than those in Bristow and Dale City.

    Check out the story about Grace Church in Saturdayโ€™s WaPo Real Estate Section. Just for starters, if small groups of your friends got together they could have created real dooryards from the hundreds of similar buildings inside R=10.

    Too busy playing video games to understand the real world? Not smart.

    โ€œFinding a place under 500k…โ€

    See above.

    โ€œ… in a good school district …โ€

    As noted in the 3 February WaPo story if one bought when they got married, by the time their children were ready for school the schools were over crowded.

    โ€œ… with low crime.โ€

    Define โ€œlow crime.โ€ Check out the โ€œsafestโ€ places by Prof Lucyโ€™s calculations.

    โ€œThe only choices were the two places mentioned in the article and outer Loudoun.โ€

    Not in โ€œouterโ€ Loudoun (R=30 to R=45) and not โ€œinnerโ€ Loudoun (R=20 to R=30 โ€“ the same Radius Band and Prince William) either. Both inner and outer Loudoun have different conditions.

    For example, dwellings in the same price range as those in Bristow and Dale City were Attached Dwellings in the eastern Loudoun Beta Communities because they were closer to Jobs and Services due to the existence or Reston and Dulles Airport. These places also did not make the Top 12 in commuting times among Census Designated Places.

    The bigger issue is this:

    In the profiled enclaves between the time they were married and the first child going to school they spent on average 3,375 hours pre Household commuting. If your cohort spent half that time creating functional Dooryards (see Grace Church for example) they could have also evolved safe Clusters and good Neighborhood schools.

    OK, no agents make a profit from sweat equity and building safe Clusters and good Neighborhood schools from the inside and so there is no advertising and no MainStream Media stories… But you get the idea.

    โ€œThis was insane.โ€

    NOW YOU ARE TALKING

    โ€œThere needed to be a housing correction.โ€

    The question is: what kind of a โ€œcorrection?โ€

    โ€œNow you can find a place for under 500k in many places.โ€

    Not a place that meets your criteria because the schools are going down and the crime is going up faster than the price is changing.

    โ€œProblem solved all through market forces with no planning or nanny stateisims.โ€

    The problem is not solved, it is only now coming into focus for most citizens.

    โ€œAnd I still say show me the demand for eoconoboxes right on top of each other with no cars.โ€

    EMR dos not advocate โ€œeconoboxesโ€ nor does he advocate depriving Households of vehicles. See performance measures in original post.

    โ€œRight…. Its not what the public wantsโ€

    If the full costs were fairly allocated, the public would in fact want (and need) different settlement patterns and the dwellings need not be โ€œeconoboxesโ€ nor โ€œon top of each other.โ€

    โ€œP.S. the people who live in the inner areas don’t want what your development plan is anyway. Unless you can provide adequate infrastructure first and show the quality of life for existing residents wont be negatively impacted.โ€

    Here NMM is correct.

    These NIMBY-like criteria can be (and should be) met.

    The first step is for those in your generation to understand the reality of the existing conditions and the real future options.

    EMR


  • ANATOMY OF A BAD COMMUTE

    On 3 February, WaPo published Eric M. Weissโ€™s story: โ€œA Dubious Distinction: The Longest Ride in U.S. โ€“ Prince William Enclave Has Longest Commute In Nation; Three Others in Area [the National Capital Subregion] Make Top 12.โ€

    If you have not read the story, it is a classic. This story is a poster child for why citizens have debilitating Geographic Illiteracy and why far too many struggle with long commutes and sub-optimum lifestyles that spell financial disaster for Agencies, Enterprises, Institutions and Households.

    At first glance this is a story about earnest, well-intended citizens doing what they believe to be in their best interest. There are also concerned governance practitioners and sage transport experts facing an intractable problem laid out in award winning journalistic form. But look under the hood, and there is a different story.

    The featured citizens are trapped in terrible Jobs / Housing / Services juxtapositions but they believe they have done the best they can. These citizens are in this position because they inhabit dysfunctional settlement patterns but they do not yet know what those words mean.

    What citizens in these enclaves DO know, (although it is not reported) that they have rapidly deteriorating home equity but they do not yet know how their location decisions contributed to this condition.

    And the โ€œjournalismโ€: The primary source of information is very badly informed citizens. โ€œHuman Conditionโ€ reporting (which IS much better than โ€œHe said / She saidโ€ reporting) provides no historical context, there is no reference to an overarching strategy to achieve functional settlement patterns or less onerous living conditions. Even worse, the โ€œexpertsโ€ avoid reality and toss up their hands. The politicians spin away with what they hope will get them elected one more time.

    This review focuses on the two low-density urban enclaves that are located in the Virginia part of the National Capital Subregion. These enclaves are the โ€œCensus Designated Placesโ€ of Bristow and Dale City, Virginia. A similar story could be told about the two enclaves in Maryland noted in the story.

    IT DID NOT NEED TO TURN OUT THIS WAY

    Decades ago there were adopted Agency polices and plans that incorporated excellent strategies to guide the evolution of human settlement patterns and to match transport facility capacity with the travel demand generated by the settlement patterns.

    Decades ago there were good examples of far better settlement patterns that were actually built in the Subregion.

    There could have been better reporting had WaPo not Lancastered those who were starting to understand human settlement patterns out of the Region.

    There could have been well informed, prosperous happy citizens living in functional human settlement patterns, but NO…

    THE TRAGEDY OF MISSED OPPORTUNITIES

    Here are just a few of the critical historical mile posts avoided by the story and by the experts:

    1. In the mid-50s the Fairfax County Comprehensive Plan called for four Balanced Communities with Clear Edges in the R=10 to R=20 Radius Band and Compact urban fabric supported by a shared-vehicle system inside a Clear Edge (near R=10) around the Core of the National Capital Subregion. (Fairfax County and the Commonwealth of Virginia would be the villains in this story if naming villains was a productive approach to evolving a sustainable future.)

    2. โ€œThe Year 2000 Plan for the National Capital Areaโ€ published in 1960 laid out in detail the basics of functional settlement pattern on the Alpha Neighborhood-, Alpha Village- and Alpha Community-scales. This plan also introduced a famous sketch that outlined the distribution of Alpha Community-scale components in what has evolve to be the Washington-Baltimore New Urban Region.

    3. In the mid-60s a composite of municipal comprehensive plans for the northern Part of Virginia โ€“ as well as a similar one for much of the National Capital Subregion โ€“ presented a functional settlement pattern for the Subregion.

    Had these plans been followed and had Balanced Communities evolved following these plans, policies, programs and strategies, then less than half the area now devoted to urban development would have been cleared and subdivided. Much of the vacant and underutilized land within 100 miles of the Centroids of the Washington-Baltimore New Urban Region would be in active nonUrban production and serve as a the green lungs of the Region. The Chesapeake Bay would not be on life support.

    4. In the late 60s the federal government committed to fund 90 percent of METRO, and over the next three decades built, a world class โ€œheavy railโ€ shared-vehicle system serving the Core of the National Capital Subregion. Contrary to a written agreement with the federal Agency, municipal Agencies did not uphold their end of the bargain. They did not plan and encourage station-area development with land uses that would support the METRO system.

    To this day โ€“ over 40 years after construction on METRO started โ€“ the majority of the land in METRO station-areas is vacant and / or underutilized. There is no Balance between the METRO system capacity and the station-area travel demand. This is why most of the METRO trains leave most of the METRO stations essentially empty most of the time.

    4. In the 70s full-scale, examples of much more functional settlement patterns were planed at the Alpha Community- and Alpha Village-scales. Several of these projects were built and while there were glitches, they were and ARE far more successful from economic social and physical perspectives than the vast majority of the land developed for urban land uses since 1973 in the National Capital Subregion.

    These places proved that:

    โ€ข A far higher percentage of the residents could live โ€œon or near the waterโ€ and / or โ€œin or near the woods,โ€
    โ€ข Have better schools,
    โ€ข Have far stronger identity and social cohesiveness,
    โ€ข Serve a far wider range of housing needs,
    โ€ข Achieve a far greater Balance of J / H / S / R / A,
    โ€ข Have far more useable Openspace,
    โ€ข Achieve higher and more stable home values per square foot
    โ€ข And still take up less than one quarter of the total land at the Alpha Community-scale when compared to the land devoted to scattered subdivisions such as those in the enclaves (Census Designated Places) noted in the WaPo story

    5. In the mid 80s a 54 member citizen task force drafted a plan that took the best of the 60s and 70s ideas for evolving Balanced Communities and created a plan for Fairfax Center. Fairfax Center was planned to be 5,500 acres where 55,000 citizen could work, live and seek services. Almost immediately the plan was nickled and dimed (least common denominatored) but today it is still far more functional than the other places of similar scale and intensity of use.

    6. In the late 80s and into the 90s Wash COG carried out a process that could have guided the location of new jobs and dwellings to evolve Balanced Communities from the then existing โ€œActivity Centers.โ€

    While this was going on, in October 1973 OPEC, issued a wake up call that should have gotten every citizen and every governance practitioner on the board strategies to evolve functional and sustainable settlement patterns that did not rely on importing foreign oil and did not depend on Large, Private Vehicles for Mobility and Access.

    Based on the strategies that existed from the mid 50s Agencies, Enterprises and Institutions could have leveraged the booming SubRegional economic activity that lasted from the late 50s until mid-2007 to build and rebuild functional and sustainable human settlement patterns.

    The 3 February WaPo story did not refer to any of this context. It is as if the current result was inev
    itable and no one had ever given thought to a different outcome. In fact, clear, concise arguments in favor of alternatives to the current result have been published in every decade since 1920.

    LOCATIONAL OBLIVIOUSNESS

    The 3 February WaPo story also did not establish the Subregional Context of the featured enclaves.

    These enclaves are NOT in the middle of nowhere. These enclaves are outside the location for the Clear Edges shown on the 50s and 60s plans. However, they are INSIDE the logical location for the Clear Edge around the Core of the Subregion based on the late 90 and early 00s work of Wash COG, the employer of one of the experts quoted.

    It would have been very useful to point out that each of the enclaves are served by major limited access radial roadway corridors paid for by federal government โ€“ I-66 and I-95.

    Both these corridors have HOV lanes and both have public AND private bus and van service using the HOV lanes.

    Further, both of these corridors are also served by commuter rail โ€“ the Virginia Railway Express.

    In addition both corridors are served by radial lines of the METRO system.

    And there is icing on the cake: For over four decades the I-95 corridor has had the Shirley Express Lanes. By many measures these are the most effective applications of asphalt used by Autonomobiles on the planet.

    It would have been informative for the experts cited in the story to point out that these two enclaves have access to every type of facility that federal, state and municipal jurisdictions have relied on to provide Mobility and Access to low-density, monocultures of auto-dominated settlement patterns.

    Would it have been too much to ask these experts why all these billions of dollars in public facilities obviously do not work? It turns out relying of these facilities to support dysfunctional settlement patterns will never work for reasons spelled out in THE PROBLEM WITH CARS. But that is getting ahead of the story.

    AND THEN THERE IS THE COST

    Of course the CAPACITY of the radial and circumferential roadways could be increased and more vans, busses and trains could be added to the shared-vehicle services.

    However if the COST of these facilities were allocated to those who would use them in the target enclaves, most of these citizens could not afford the fares / tolls / taxes to pay for the new facilities.

    It is also clear that the bottom line result adding very expensive new capacity would be to shave a few minutes off of the record setting AVERAGE commute times but it would not โ€œsolveโ€ the problem.

    AND WHILE WE ARE TALKING ABOUT A FAIR ALLOCATION OF COSTS:

    If all the current costs of the location decisions that resulted in putting these dwellings in these enclaves were fairly allocated many, if not most, of the present residents could not afford the FULL cost of living there.

    What drives up the cost? The mix of dwelling types and the Regional and Subregional location of Jobs and Services result in settlement patterns that do not function. These patterns violate the basic laws of economics and physics. It is not a matter of policy or preference.

    THE ROLE OF EXPERTS

    In addition to not mentioning โ€“ or not mentioning forcefully enough to make it into the story โ€“ any of the history or context of the enclaves, the experts did not provide any insight on a path to sustainability.

    They did not point out the necessity of evolving Balanced Communities in sustainable New Urban Regions โ€“ using what ever Vocabulary they might choose.

    They did not point out that the Beta Communities in the municipal jurisdictions inside R=5 (primarily Alexandria and Arlington) have job to dwelling ratios on the order of 5 to 1. They did not point out that while one of the largest municipalities in the US of A occupies most of the territory within the R=5 to R=20 Radius Band (Fairfax County) has a ratio closer to 1 to 1, there is a gigantic imBalance of housing affordability to wages for the jobs in the jurisdiction due to exclusionary zoning.

    Only two of the nine Beta Communities that fall all or part in Fairfax County have achieved anything like a Balance of Jobs / Housing / Services / Recreation / Amenity.

    In explaining the difference between Fairfax County and Prince William County where the two enclaves are located, one of the experts demonstrated a complete lack of knowledge of the physical relationships that control human settlement patterns. By suggesting that Fairfax County once had โ€œthe same situationโ€ he demonstrated ignorance of A= pi R sq. He further implied that Fairfax County is OK because there are now more jobs in the municipality than in past decades without regard to location or Balance.

    It would have been useful to point out that the two Virginia enclaves (Bristow /Linton Hall in Greater West Prince William and Dale City in East Greater Prince William) were low-density, imbalanced enclaves in badly unbalanced Beta Communities.

    Road scholar and congestion guru, Tony Downs famously pointed out that congestion is not the problem, it is the solution. Tony correctly noted that when congestion gets bad enough, citizens, Households, Agencies, Enterprises and Institutions make different location and settlement pattern decisions.

    Tony correctly identified the political (SMALL โ€œpโ€) and the unenlightened citizen self-interest that has prevented intelligent changes that have been advocated for 90 years.

    Downs had two solutions:

    First: Buy a big comfortable car (Large, Private Vehicle) with a great sound system to enjoy the ride. Addiction to this formula is EXACTLY why the Autonomobile Enterprises, supported by Agencies and โ€œfreedomโ€ oriented Institutions have driven to the brink of Collapse.

    Second: Drive to work with someone you REALLY like (wink, wink). According to domestic and divorce court records that โ€œsolutionโ€ is a major cause of divorce and social instability in the Household and at all other scales of human settlement.

    Tragically, Tony did not take into consideration was that at some point, the total cost of Regional-scale settlement pattern dysfunction would leave citizens and their Organizations without the resources necessary to change the settlement patterns to more functional and less congestion generating configurations.

    To his credit, Tony was first an economist and had no way to know that the incredible BOOM of the 80s, 90s and 00s would exterminate โ€œrational manโ€ / โ€œwisdom of the crowdโ€ / invisible hand economics and replace it with โ€œbehavioral economics.โ€ See Column # 124 โ€œRiding the Tiger,โ€ 2 June 2008 and the two recent post on the Tragedy of Trickle Down.

    THE ROLE OF THE MEDIA

    For reasons spelled out in THE ESTATES MATRIX, MainStream Media has abandoned its responsibility to create informed citizens. Sadly, citizens are left to sort out advertisements for Autonomobiles and Wrong Size Houses in the Wrong locations that promise the American Dream without the facts or an overarching conceptual framework with which to organize their thinking. They believe the decisions they make are in their best interest and once made they defend them in the face of 46.3 minute AVERAGE commutes.

    To his credit, WaPo reporter, Weiss only used one Core Confusing Word (suburban / suburb) and only used it three times. The use of โ€œenclaveโ€ is very effective in this context and is a good choice. However, he used interchangeably two generic settlement pattern descriptors (neighborhood and community with no capital) seven times. Of course, it would have been helpful to point out that โ€œpolitical subdivisionsโ€ of the Commonwealth and โ€œCensus Designated Placesโ€ do not reflect the organic components of human settlement patterns.

    THE BOTTOM LINE

    Now, with a deepening recession,
    citizens and their elected representatives will support throwing more money at โ€˜infrastructureโ€™ to remove fundamental drivers of dysfunction that cannot be solved except by evolving Balanced Communities.

    There is no way to help commuters except to help them become noncommuters by building Balanced Communities.

    See Column # 41โ€œThe Commuting Problem,โ€ 17 January 2005, Column # 65 โ€œBalanced Communities,โ€ 23 August 2005 and Column # 92 โ€œSolving the Commuter Problem,โ€ 5 February 2007.

    EMR


  • Bons Secours Extends “Good Help” to Land Use

    Here’s a twist on real estate development: A medical complex could provide the nucleus for urban-style growth in Chesterfield County. The St. Francis Medical Center complex, which is part of the Bons Secours Richmond Health System, has unveiled a New Urbanist vision of mixed uses, pedestrian boulevards and grid streets in a 130-acre tract just off the Powhite Parkway.

    The 10-year plan calls for creating an island of urbanity in the untamed sprawl of disconnected, low-density, single-use development of Chesterfield County. The grid streets, walkable streetscapes, mixed use and ground-level retail are all part of what we’d expect from functional, urban-style development. Here’s what’s unique about the project: Housing, which encompasses a quarter of the site, would be first reserved for medical center employees.

    There’s a novel concept: Employers providing housing so employees could live close to where they work!

    Not only that, but this employer plans to build an entire community around the employment center at the medical center includes many of the critical elements of daily life.

    What the plan doesn’t discuss — at least the article by Wesley P. Hester in the Times-Dispatch doesn’t discuss it — is how to integrate the 130-acre community into the regional transportation system. Insofar as people live, work and play in the development, they will generate less traffic on stressed-out Chesterfield County roads. That’s a good thing. The article did note that a number of changes to the county road plan would have to be implemented, but wasn’t clear what they are.

    However the details shake out, the trend toward the urbanization and rationalization of human settlement patterns in dysfunctional Chesterfield County is to be applauded.


  • Class Warfare Always Gets Worse

    Take a look at this graph of income distribution. When I was leading the Army 21 futures study for 2005-2015, this is precisely what the economists from the Library of Congress (under our contract) predicted. No surprise to me that there is a “wage gap.”

    The reason for the gap today – again predicted in 1990-92 – is the changes the transformation to the Information Era would make. This includes the growth of the global economy.

    The graph indicates the “Have Nots” – as we characterized them in our study – would not gain much. The pressures on wages in a global economy suppress wages for the lower skills earners.

    The Haves have a lot more. That is why you see the McMansions, etc. around Virginia. There is more demand and opportunity for folks to earn more if they have key skills or talents. I can add another graphic that shows that most of the wealth of top earners comes more than ever from wages – not dividends or interest.

    So, what, if anything, should be done about the wage gap?

    In the early 90s I wrote (for myself) thoughts about a “greed cap.” The greed cap would be the ratio of highest to lowest earnings (from all sources and perks) in a business. It should be set by collective bargaining (Yes, this Republican means unions) at whatever they see as fit – and doesn’t kill the golden goose that creates capital. It could be 7:1 or 12:1 or whatever.

    More dollars could be paid above that ‘cap’. But for every dollar that is paid to the executive above the cap another dollar is paid into a common pot that supports everyone’s retirement, health, legal, etc benefits.

    The principle behind the idea is this: The profit of a company is directly attributable to the management and the workers. Much profit can be traced to management decisions, but all profit comes from everyone doing their jobs. Hence, separating workers from the profit sharing and letting it all go to the top of the organization is fundamentally an inequitable distribution of gain. Workers know the risk if the company goes down or under. They share in risk and should share in profit.

    Except, I don’t want the damn government dictating this to anyone. I see it as a future strength of the unions – a meaningful purpose, if they can clean up their own management to gain some integrity back.

    Where government can help with the wage gap is to use the forced savings of wage earners to create the INDIVIDUAL savings accounts FDR promised. If the Feds won’t do it, then Virginia should move ahead (see my pieces on Virginia Trust Accounts). The lower 505, Have Nots, get by and will get by. But, their retirement, health and

    Fast forward to 2009. The government bailing out any business and taking ownership – and dictating wages is feel good class warfare in its earliest phases. It is awful for what it does to the economy. It is worse for what it does to our Constitutional Republic.

    It portends worse if it is allowed to go further.

    When you read Ayn Rand’s “Atlas Shrugged” you see the same language today about fairness, greed, etc. Actually, you are reading the fictionalized version of what she saw after the Bolsheviks took over in Russia. Now, you see the same signs of class warfare, dressed up in Obama’s rhetoric, in America.

    Class warfare always gets worse. Consider the French Revolution and the successor Russian, Chinese Communist and Cuba revolutions, Communist takeovers in Vietnam, Laos, Cambodia, and Nicaruaga, and the Nazi takeover in Germany. Everytime the Human Secularists engage in class warfare – whether their preceding adjective is Communist, Nazi, Socialist or Liberal – it goes badly sooner or later for liberty. For individual rights.

    Search the U.S. Constitution for the power of the federal government to do what it did this fall under Bush and now seeks to do under Obama. Not there.

    Search the economic data for proof that government spending and taxing and regulationg wages improves the economy. Not there.

    Search the history of class warfare since the French Revolution. Awful things happen.


  • Feb. 2, 2009 Edition of Bacon’s Rebellion E-zine

    Like Asking for a Show of Hands
    The Employee Free Choice Act does far more than “merely level the playing field” as Mr. Lawrence Frame’s editorial suggests; in fact, it tips the scales in favor of unions. This is especially bad news for Virginia as our largely union free workforce is a primary reason that we are annually ranked as a top state in which to do business.
    by Clinton S. Morse

    Don’t Mess with Virginia’s Biennial Budget System
    Legislation being proposed by Delegates Pollard and Saxman to adopt an annual rather than a biennial budget process needs to be rejected. Under the current format a more realistic budgetary picture is presented to the public and longer range planning is encouraged, two things that go a long way in making Virginia the best-managed state in the union.
    by Patrick McSweeney

    Time for Non-Partisan Redistricting
    With the process of redistricting just around the corner, the time for passing legislation that reforms the system is now. Virginia can’t afford another round of partisan redistricting that results in incumbents going unchallenged.
    by Olga Hernandez

    Fairfax County – a Case Study on Government Excess Spending
    Growth in government spending and new programs play a larger role in the financial hardships faced by Virginia and its localities than many our elected officials are letting on. To combat this we need to increase budget transparency by getting the checkbooks online and look towards competitive bidding and privatization to save money and increase efficiencies.
    by Mike Thompson

    In Defense of Private Enterprise
    The increasingly frequent calls for community service are not bad, and a national focus on that front is probably desirable. However, our attention and support really needs to be focused on free enterprise and capitalism, specifically the ethical and responsible applications thereof.
    by John Palatiello

    Fix Virginia First – What to do after an economic bubble bursts
    With the Democrats in Congress set on doing the exact wrong things to turn out ailing national economy around we must focus our attention on fortifying the Virginia economy. That means tax cuts, spending cuts and entitlement reform.
    by James Atticus Bowden


  • MORE BAD REPORTING

    On 24 March 2008 BaconsRebellion published EMRโ€™s column # 118 titled โ€œGood News, Bad Reporting.โ€ That column was about:

    Good news: The Regional, nation-state and Global economic slowdown provided a chance, with intelligent management, to achieve a sustainable trajectory without a crash.

    Bad reporting: MainStream Media scaring citizens into thinking that carefully backing away from decades of Mass OverConsumption fueled by public and private debt, international borrowing and burning through natural capital was a bad thing and would lead to a crash.

    On 3 February 2009, GM reported vehicle sales at 1982 levels.

    The way the MainStream Media spun that you would think this was bad news.

    There were quite a few vehicles sold in 1982. Citizens do not NEED a lot of new cars. What they NEED are functional human settlement patterns with Accessible and Affordable housing so that citizens of the US of A can be happy and safe and not NEED a lot of new Large, Private Vehicles.

    If cheap money is pumped into the economy so citizens can buy lots of new cars, the cost of imported energy would go back up and then there would be a real crash.

    EMR


  • Fix Virginia First

    What to do after an economic bubble bursts.

    The economic crisis is an economic bubble. Itโ€™s a very big bubble. But, it isnโ€™t an economic meltdown or the end-of-capitalism-as-we-know-it, hysterical hyperbole. Even if politicians, the news people, and losing special business interests bleat that it is so. Yet, a 24 month adjustment – tops โ€“ can become a disaster if the politicians use the statist and socialist tools which made the Great Depression worse โ€“ and longer. Since it appears that President Obama and Democrat majority in Congress will do, precisely, what is wrong economically and right politically โ€“ then we need to fix Virginia first. Cut taxes, cut spending, reform entitlements to build individual savings.

    This isnโ€™t rocket science. Nor, is it the inscrutable intricacies of high finance. It is Economics 10. Niall Ferguson nails the past, present and makes interesting suggestions about the future in his โ€œThe Ascent of Money.โ€ He calls todayโ€™s crisis as it was unfolding in 2007. His book is a tour de force about economic history that is readable, understandable, and incredibly prescient. Itโ€™s history at its best โ€“ the past providing prologue for the present.

    The guidance is simple. The best way forward is painful in the short term, but rewarding as soon as possible. Obey the laws of economics like following the laws of physics. Donโ€™t jump off a building in physics = no financial institution is too big NOT to fail in economics. Oops, since itโ€™s too late to let the losers on Wall Street and in Detroit fail, we, The People, are out at least $1 trillion. Or, rather, the debt load on the next generation has increased by more big bricks. So, whatโ€™s Virginia to do when the Federal government mangles the market and bungles the economy?

    Follow the laws of economics in this market of 7 million persons.

    Our Commonwealth exists in our unique economy that has evolved since civilizations started in 4000 BC. Virginia is an evolving place in time with a traceable history. The economy is constantly changing โ€“ and will into the future. The basis of this economy is capital. Money.

    Capital is to a family what the farm, the fishing boat, or hunting party was to our ancestors. Itโ€™s the basis of our survival. Itโ€™s the means to whatever materialism we pursue. Available capital is the measure of individual economic opportunity that has become essential and intertwined, like a helical of DNA, with individual freedom.

    Yes, America was for the most part poor and free for much of its history. But, the dislocation of labor from the farm with industrialization era and urbanization โ€“ and the fragility of employment with the information era and globalization โ€“ makes individual capital = the family farm.

    Farmers can provide for their family and make some profit based on the certainty of what their labor produces โ€“ and subject to the uncertainty of weather. Most Virginians have a job and a savings account instead of 40 acres. The security of the soil must be replaced by more security in savings. Growing capital as a crop is essential to provide for the Good People of Virginia. Every Virginian can, and must, have personal savings.

    Government canโ€™t create capital or jobs. Virginia must protect the free functioning of the marketplace just as it is supposed to protect individual freedoms. This is limited government, not laissez-faire, in action. It serves the individual sovereign of the state โ€“ while defending the working person from abuse and the environment from damage. It turns government from serving special interests as Virginia does now.

    We must fix Virginia, first, for more, better economic opportunity โ€“ to enable, expand and enhance personal freedom for the individual to chose where and how he works, lives, plays and raises a family.

    Cut taxes. Cut personal and corporate taxes.

    Cut spending. Stop un-Constitutional spending.

    Cut market interference in the production of energy โ€“ without sacrificing the environment.

    Reform entitlements, like Virginiaโ€™s formula for Medicaid.

    Reform mandates, like Virginiaโ€™s Standards of Quality for education. The SOQs have been updated, but they need to be reformed.

    Encourage individual savings. Provide the tax incentives. Take the โ€™04 half percent sales tax sham and convert it into Commonwealth Trust Accounts for each Virginian. Focus the accounts as health savings accounts now. Expand their uses later as they grow.

    Elect the politicians who can tell Virginia โ€“ before the โ€™09 election โ€“ what taxes and spending they will cut, how they will reform entitlements and grow individual savings.

    Finally, know that an โ€˜economic adjustmentโ€™ = hard personal hardship for families. Their pain is real. The healing medicine includes incentives for charity and tough love, not government handouts. Government generosity makes matters worse โ€“ slows the recovery of the economy โ€“ and, sooner or later, punishes every family getting back on their feet.

    Letโ€™s fix Virginia first. Now.


  • Fasten Your Seatbelts, It’s Going to Be a Bumpy Ride

    Military spending propelled economic growth in Virginia during the past decade. Now that rocket fuel has run out. Fox News reports that the Obama administration “has asked the military’s Joint Chiefs of Staff to cut the Pentagon’s budget request for the fiscal year 2010 by more than 10 percent — about $55 billion.”

    It’s not clear how much of that will come of Virginia, but we can make an educated guess. Last year, the Department of Defense spent $56 billion here. If we absorb our “fair share,” we stand to lose $5.6 billion yearly.

    Meanwhile, the Times-Dispatch notes that Virginia could receive as much as $5.8 billion in the Obama administration’s proposed “economic stimulus” package — about as much as we lose from the defense cutbacks. That pinata of pork would provide a one-time injection of some $750 million in transportation funding, $550 million for Medicaid, and $1.58 billion over two years as part of a fiscal stabilization fund. Then the money dries up and we’re back to Business As Usual.

    Bacon’s bottom line: Virginia is hosed. Defense cutbacks will be long-term, while the “stimulus” package will provide only a short-term palliative. We will encounter real hardship.

    We can deal with this bad news in a chronic crisis-driven mode, taking a series of stop-gap measures, or we can start dedicate ourselves to fundamentally reinventing our economy, our human settlement patterns and our governance system to make us more competitive over the long-haul.

    Crisis-driven thinking, or long-term thinking? Which do you think will prevail? Hah! What a foolish question.

    Update: Fox News might have gotten the story wrong. According to CQ Politics, the “cuts” are cuts only in the sense that they are reductions from some astronomical number some DoD bureaucrats had lobbied for. In actual dollars, measured against actual dollars spent last year, the Obama administration would match what the Bush administration recommended, which would be an actual increase.
    So, before any one panics, we should make a point of ascertaining who’s got the story straight.

  • VOCABULARY AND THE MIDDLE CLASS

    Today, the President and Vice President launched a task force on โ€œthe middle class.โ€

    Here is what EMR said last month in a draft of Chapter 26:

    A 2009 PERSPECTIVE ON THE IMPORTANCE OF VOCABULARY

    There is a larger context for understanding the importance of Vocabulary. The Shape of the Future, Chapter 1. employs statements made during the decade of the 1990s by senior elected leaders to illustrate the importance of an understanding of human settlement patterns and need for a robust Vocabulary to discuss the topic. When the book was completed in 2000, 20-20 hindsight provided a crystal clear way to compare statements of the intent of the Clinton / Gore Administration with the results over the following 8 years. Chapter 1. provides the perspectives and goals of President Clinton and Vice President Gore in their own words and then evaluates progress on those goals.

    Now the US of A stands on the cusp of a new Administration. With no hindsight upon which to rely, a robust Vocabulary โ€“ a prerequisite of getting the issues โ€œrightโ€ โ€“ becomes even more important due to the diminished resource reserves that remain after 35 years of intentional Mass OverConsumption to fuel โ€œgrowthโ€ and prosperity for a few at the top of the Ziggurat.

    There is a broad range of specific problems that citizens who voted for โ€˜changeโ€™ hope the new administration will address. The broad topic which the obligatory Vice Presidential Task Force will address is: โ€œStrengthen the Middle Class.โ€

    At first blush, strengthening the Middle Class would appear to address a number of hot button issues:

    1. The economy
    2. Job creation
    3. Energy independence
    4. Affordable health care
    5. among others

    It might be obvious that โ€œstrengthening the Middle Classโ€ must address the Mobility and Access Crisis, the Affordable and Accessible Housing Crisis and the Helter Skelter Crisis. However, without a functional Vocabulary that reality will be missed by even those with the best of intentions.

    The meaning and intent of โ€œstrengtheningโ€ should be clear to all: Improving the economic, social and physical well being of…

    … of the โ€œMiddle Class,โ€ of course. But there is the rub.

    What is the Middle Class?

    The Wikipedia discussion of โ€œmiddle classโ€ opens with this statement: โ€œThe term โ€œmiddle Classโ€ has a long history and has had many, sometimes contradictory, meanings.โ€ Well put!

    The bottom line is that almost no one believes that the classic Middle Class still exists. That Middle Class existed after the dust settled following World War II. It was articulated and confirmed by C Wright Mills, David Riesman, Robert and Helen Lynd and others. While Middletownโ€™s Middle Class has changed and some say it does not exist, the term โ€œMiddle Classโ€ is still used even though it has morphed to become a prime candidate for listing as a Core Confusing Word.

    The Wikipedia discussion of โ€œAmerican Middle Classโ€ focuses on three academic โ€œclass modelsโ€ to summarize current scholarly classification of social class. Although there are three separate models, they divide the post 2000 social structure into four broad groupings that are remarkably similar. The four classes (with three sets of titles and percentages of the population) break down this way:

    Class 1. Capitalist Class (1%) // Upper Class (1%) // The Super Rich (0.5%) and The Rich (0.5%) โ€“ percent total of the class is 1 percent in all three models.

    Class 2. Upper Middle Class and Lower Middle Class (45%) // Upper Middle Class and Lower Middle Class (46%) // Middle Class (46%) โ€“ percent total varies from 45 to 46 percent in the three models.

    Class 3. Working Class (30%) and Working Poor (13%) // Working Class (32%) // Working Class (40-45%) โ€“ percent total ranges from 32 to 45 percent in the three models.

    Class 4. Underclass (12 %) // Lower Class (14-20%) // The Poor (12%) โ€“ percent total ranges from 12 to 20 percent in the three models.

    The totals for those below โ€œMiddle Classโ€ range from 42 to 65 percent. Note: The totals do not equal 100 percent within any single model.

    In the three models selected by the Wikipedia authors the academics have remarkably similar categories and percentage distribution. The biggest variation are in the names and allocation of population of the lowest two classes.

    In this โ€˜compositeโ€™ view of the Ziggurat, it seems there is not much room at the top. However, one percent of the population is about 3,060,000 citizens or something over 1,000,000 Households. These fortunate few would fill the largest NFL stadium about 37 times. While they compose a minuscule percentage of the population, this class provides โ€“ directly and indirectly โ€“ the majority of the funding for ideologically oriented Institutions (aka, think tanks or โ€˜Belief Tanksโ€™) and support for the two major political parties. See THE ESTATES MATRIX for discussion of the impact of Institutions (especially Belief Tanks) in the New Third Estate. Also see Supercapitalism noted in Chapter 36. โ€“ Fireside Reading

    It is significant that Class 1. (Upper) plus Class 2. (Middle) no longer make up a majority of the citizens of the US of A as they did in 1960 and in 1973. This raises the first question about the Vice Presidents Task Force:

    Who needs โ€œstrengtheningโ€ most?

    Vocabulary becomes even more important when one digs a little deeper. The core concern according to Vice President-Elect Bidenโ€™s own statement is โ€œWorking Families.โ€

    Here is a โ€˜two-ferโ€™ with respect to Vocabulary:

    First, โ€œfamily:โ€ For reasons spelled out in GLOSSARY, the term โ€œfamilyโ€ itself has become a candidate for Core Confusing Word status. This is due to disaggregation of the settlement pattern and to the constant changes now experienced within almost all Households / Dwelling Units.

    Second, and even more important, if it is โ€œworkingโ€ citizens that are of concern from a social structure perspective, those are folks is a different place in the Ziggurat (and in a different class) than โ€œthe Middle Class.โ€

    There is no question those individuals and Households who are productive members of society (aka, working) and who have been slipping further and further behind since the mid-70s NEED to be the focus of attention if democracy is to be preserved.

    As emphasized in Chapter after Chapter of TRILO-G the widening Wealth Gap is anathema to, and incompatible with long term stability of democratic processes and to market economies.

    So if Vice President-Elect Biden is to โ€œstrengthen the Middle Class,โ€ the first thing to do is to define what it is he and the task force are talking about. There is no way to โ€œstrengthen the Middle Classโ€ unless the Task Force understands reality and embraces a realistic Vocabulary.

    There is a second point in this context with respect to โ€œThe American Dreamโ€ of working citizens and expanding home ownership. A fair allocation of location variable costs will make it very clear that from 60 to 70 percent of the population can never afford Single Household Detached Dwellings. That does not rule out โ€œhome ownershipโ€ but it does impact the settlement pattern. Further, most of the urban citizens who can not afford Single Household Detached Dwellings also cannot afford Large, Private Vehicles to secure Mobility and Access in dispersed settlement patterns.

    This is not a matter of policy or preference, it is a matter of physics and economics and also requires an understanding of human settlement patterns. See THE PROBLEM WITH CARS.

    EMR


  • Needed: More Regulation and Less Bitching

    One perpetual and frustrating riff I hear on this blog and throughout the conservative elements of Virginia is the bug-a-boo about government regulation.

    Everyone from the Gipper on down has told us that we need to get the government off our backs, that government is the problem. I think the opposite is true. We need government to actually do its job.

    Ask people who eat peanut butter.

    According to The Washington Post, Lynchburg-based Peanut Corporation of America shipped contaminated peanut butter from a plant in Blakely, Georgia 12 times in the past two years. The firm’s plant has been linked to a recent outbreak of salmonella that has killed eight people and sickened 502 in 43 states across the country, according to the Centers for Disease Control.

    Closely-held Peanut Corporation of America doesn’t make the types of peanut butter who find on grocery shelves. Instead, it sells its product to foodmakers such as Kellogg, Trader Joe’s and Little Debbie which put in their products.

    Federal investigators have found four strains of salmonella at the Georgia plant. One strain was found next to a washroom, which isn’t surprising since salmonella is spread by animal feces. It seems possible that some plant workers didn’t wash their hands thoroughly as instructed after using the toilet.

    The firm isn’t required to share internal testing results for samonella with regulators. But there sems to be a problem with the lack of regulation. The Food and Drug Admininistration is tasked with plant inspections but in this case gve the job to Georgia state authorities. How come? FDA says it just doesn’t have enough regulators to go around.

    State regulators inspected the plant most recently in October. Lo and behold, that’s when the contaminated batches of peanut butter this time around were being produced. But the Georgia regulators somehow didn’t test for salmonella. State authorities are investigating why they didn’t.

    Getting hard-pressed state regulators to do the jobs of hard-presssed federal regulators has been the modus operandi for years. Here in Virginia, too-few state regulators actually do the heavy lifting for the feds by investigating hazardous chemical waste sites and air and water pollution control as mandated by federal laws.

    The right-wing General Assembly is loath to spend much money on regulation because we just love that “pro business” moniker. We also go for loopey self-regulation. So, we really don’t have many regulators compared to other states which take public health and the environment more seriously.

    Not many might remember but I sure am reminded of Kepone which polluted the James River back in the 1970s. The carcinogenic pesticide was made at a converted gas station through a scheme operated by now-defunct Allied Chemical. The idea was to somehow shield the chemical giant legally by having a little sub-company make the stuff at the Hopewell site. Waste ended up in Hopewell’s water sewage system and since it’s a chlorinated hydrocarbon that doesn’t break down, it retained its toxic potency for years after it was flushed into the James River.

    So where were the state regulators? Probably off keeping the state safe for profits and business interests.

    So next time you are bitching about government regulation or reading the pathetic new “Bacons Rebellion” e-zine operated by the dogmatic “Thomas Jefferson Institute” with its whining about the need for limited government, think peanut butter.

    And think that half of the people affected by the peanut butter poisoning were children. They could be yours.

    Peter Galuszka


  • SHELTER FOOLS GOLD

    On 26 January NAHB reported that existing home sales INCREASED in December: โ€œExisting-Home Sales Spike As Bargains Glut Market: Sales Up a Surprising 6.5 Percent in December.

    This was the only โ€œgoodโ€ economic news in weeks:

    24 January 2009 WaPo: โ€œDownturn Accelerates As It Circles The Globe: Economies Worse Off than Predicted Just Weeks Ago.โ€ Record losses in jobs, defaulting banks, defaulting nation-states, riots in Eastern Europe, Autonomobile and retail closings, the four largest print media Enterprises in the US of A lost $18.3-billion in market value in just a year, the new federal administration scrambling for ways to expand bail-outs, consumer confidence at an all-time low, …

    The 2001 Nobel prize winner in economics and former chairman of the Council of Economic Advisors Joseph Stiglitz suggested to CNNPolitics that the US of A follow Swedenโ€™s lead: Agencies should take over failing banks โ€“ wiping out owner and bank investor interests โ€“ instead of just loaning them money or buying preferred stock.

    The existing home sales news was apparently what kept the gambling venues (aka, Dow Jones, et. al.) from tanking during the first part of the last week in January because other news from the shelter sector not good:

    On 24 January it was reported that Freddie Mac will ask for $35-billion more in taxpayerโ€™s money and on 26 January that Fannie Mae will ask for $16-billion more. On 24 January FHA reported that the number of FHA-backed loans in default were rising.

    There was some good news: The Newton Bank of Nigeria is offering loans to all comers over the Internet.

    And almost as foolish, Bill Bolling who wants another term as Lt. Governor of Virginia has a โ€œlegislative agendaโ€ that includes a $2,500 per person ($5,000 per couple) โ€œtax creditโ€ for Virginianโ€™s buying homes with no location related criteria โ€“ such as qualifying for location efficient mortgages.

    Perhaps most scary of all was the front page of WaPoโ€™s Real Estate section on 24 January. The feature was a puff piece on green building (this story has already been cited in prior comments): โ€œSeeking a Smaller Footprint: Builders Scale Back House Sizes as Buyers Commit to Energy Efficiency.โ€

    Why is this scary? Check out the photographs of the featured buildings! If there were real standards for journalistic decency this would be stamped โ€œPORNOGRAPHY!โ€ It is well known that even those committed to energy efficiency will not walk forever. These dwellings are said to be โ€œnear Winchester.โ€ But from the pictures it is clear they are not THAT near. Where are the Jobs and Services needed to achieve Balance?

    Somewhat Better Size House, still in the Wrong Location.

    But what puts the December rise in existing house sales in the deception category? The real estate industry is using the percentage drop in home value during the Depression when looking for the โ€œbottomโ€ of the market.

    There are major differences in the unsustainable runup in house prices over the past 35 year, and especially the last 15 years with the Roaring 20s and the Depression Era drop of around a third in value. Here are some:

    Far lower percentage of homes with mortgages

    Far fewer homes

    Far more dwellings with two or more generations in a unit.

    This later point is critical. These occupants could work to help make ends meet. Multi-generational occupancy was especially prevalent in detached dwelling and detached dwellings were mainly in the Countryside. The occupants of detached dwellings were far more likely to be able to depend on the land for the needs of everyday life.

    Then there is the fact that the housing bubble built up over the 20s was a far smaller bubble and it was not nearly as leveraged nor were the mortgages packaged, securitized and peddled around the globe. Home mortgages were a Community and a Regional activity.

    If one wants to look for levels of property value declines they need to look not at nation-state wide percentages of owner occupied dwellings but at the bursting land speculation bubbles in Florida, California and elsewhere.

    While NAHB reports that sales were up โ€œa surprisingโ€ 6.5 percent in December, CNNMoney was reporting: โ€œFlood of foreclosures: Itโ€™s Worse Than You Think.โ€ โ€œBanks are moving slowly to list repossessed homes for sale, which could mean that housing inventory is even more bloated that current statistics indicate.โ€

    Of course most of these not yet listed dwellings are Wrong Size House in the Wrong Location โ€“ see โ€œTHE TRAGEDY OF TRICKLE DOWN.โ€

    The bottom is not yet in sight. December sales numbers are Fools Gold.

    And still new units are being built in the Wrong Locations, and the wrong dwelling type, even if somewhat closer in size and energy consumption.

    EMR


  • Did Eric Cantor Know that Diane’s Bank Got a Federal Bailout?

    Here’s a curious tale that you’re not likely to see in the Richmond Times-Dispatch or other Media General outlet.

    Diane Cantor, a veteran finance industry official and wife of GOP Congressional wunderkind Eric Cantor, is an executive of a bank that got a $267 million federal bailout even though conservative Cantor has at times publicly opposed the federal bailout program.

    According to the investigative journalism Website propublica.org, New York Private Bank and Trust was the beneficiary of a Treasury Department purchase of $267 million work of the bank’s preferred stock to shore it up. The bank is the holding company for Emigrant Bank with 35 branches mostly around New York City. Diane Cantor runs the Virginia branch of Emigrant’s wealth-management division, Virginia Private Bank & Trust, which targets wealthy clients.

    Diane Cantor is also a director on the board of Media General, which owns the Times-Dispatch whose editorial staff gushes constantly about how wonderful Cantor, now House Republican Whip, and his wife are. The newspaper does note Mrs. Cantor’s association with the board, but as far as the newspaper’s editorial and news staffs go, “never is heard a discouraging word” about the Cantors. The TD acts as Cantor’s personal PR machine since he is seen as an up-and-coming young Republican leader destined to re-energize the now-hapless GOP leadership left in shambles after eight years of Bush-Cheney-Rove.

    Prorepublica.org did talk with Cantor’s office which says that Eric did not know about the bailout of his wife’s bank and did notihng to intercede for it.

    If that’s the truth, then Cantor is in a somewhat better position than Rep. Barney Frank, the outspokenly liberal chair of the House Financial Services Committee. Frank, a Democrat, admits he did intercede to get OneUnited Bank of Boston federal bailout money. Frank insists it was a legitimate attempt to help the minority-owned bank, according to The Boston Globe.

    Even so, the news puts Cantor in an awkward position. Last summer, when the Bush Administration’s proposal for a $700 billion bailout of troubled financial companies was introduced, Cantor initially pushed for an alternative structure so taxpayers wouldn’t have to pay for it. Cantor suggested using investors on Wall Street to fund the bailout.

    He ended up up supporting the program which has ended up giving Diane’s bank taxpayer money. More recently, he voted against releasing the second tranche of the funds.

    What’s next is up for grabs. There has been plenty of criticism of the $700 billion bailout program which former Treasury Secretary Henry Paulson introduced in a spare, two-and-a-half page long proposal so vague that it wouldn’t get an Average Joe an auto loan. Paulson initially suggested the bailout be used to buy up toxic loans, but since it has been used for just about everything else, from stock buys of banks, to funding bank acquisitions, to helping auto companies and their finance firms.

    Barack Obama’s team is ready to propose major restructurings and major re-regulation of the Bushies’ giveaway that has benefited lots of Wall Street insiders as well as Diane whether Eric knew of it or not.

    It isn’t clear if anything was done wrong here. The sad part is that because of Media General’s corporate monopoly over news coverage in much of the state, not many Virginians are likely to learn of what is a legitimate news story at all. And that’s a damned shame.

    Peter Galuszka


  • The Missing Element in Kaine’s Green Jobs Initiative: Private Capital

    Earlier this month, Arlington-based Positive Energy raised $14 million in a second round of venture funding. Positive Energy has developed a software analytics platform that it sells to electric power companies implementing demand-response programs to encourage energy conservation and loading shifting. As the company web site explains, it’s one thing to adopt time-of-use pricing and similar peak-demand initiatives, it’s quite another to persuade consumers to use them. The company contends that its solutions can bridge the gap between economic theory and marketplace reality.

    Positive Energy is expanding — it is currently trying to fill 13 positions in IT, sales, finance and product development.

    Does Gov. Timothy M. Kaine, who touted his “green jobs” initiative in his state of the Commonwealth speech, understand where green jobs come from? Does he understand the role played by entrepreneurs, angel capital, venture capital and the entrepreneurial support network?

    I’m not sure he does. If he does, it’s not apparent in his speech. While Kaine advanced some good ideas like retrofitting state buildings to green energy standards (See “Kaine’s ‘Green Jobs’ Initiative“), he resorted to a pretty stale package of proposals on the economic development front.

    University research. Kaine has created an “interagency task force” for energy project recruitment to “build the case” for renewable energy-related businesses to invest in Virginia. “Virginia has a tremendous natural advantage in this area through the research being done at Virginia colleges and universities,” Kaine explained. “Every institution in Virginia is working on innovative new energy projectsโ€”transportation fuel cells at Virginia Tech, energy-efficient buildings at UVA, algae-based biodiesel at ODU, and new energy crops at Virginia State University.”

    Terrific. How do we take advantage of all that research? Says Kaine: “Technology-based economic development organizations” (does that mean the Center for Innovative Technology?) will build a single Internet portal where investors can access information about the research. Wow. Back off, California, Virginia’s building a web site!

    Tax incentives. No economic development program would be complete without grants, tax incentives and regulations. These include:

    • Expand an existing incentive for solar manufacturers to include new plants that make other alternative energy equipment and products.
    • Enact a requirement that biodiesel should comprise 2% of diesel fuel sold in Virginia.
    • Enact an income tax credit of up to $8,000 on solar photovoltaic, solar thermal, and wind-power electric generators installed in homes or businesses in Virginia.

    Unfortunately, the Kaine package doesn’t do anything to promote companies like Positive Energy. Silicon Valley venture capital is transforming the economics of renewable energy, electric vehicles and energy conservation by underwriting a wave of technologies, some of which are already entering the marketplace. (More on that in a week or two.) The Washington-area venture capital network isn’t as deep as Silicon Valley’s, but it’s one of the strongest on the East Coast. And it’s well positioned geographically near the seat of national government, where all manner of “green” boodle and pork will soon begin flowing. If Virginia is to develop an economically sustainable “green” industry, critical financial support and human capital will come out of NoVa.

    There’s nothing wrong with pursuing green industry (other than the fact that every other state in the country is vying for the same market). But it’s going to take a lot more than a web site and a smattering of tax incentives lacking strategic focus to do so.

    If the governor wants to do something useful during his last year in office, he should convene a “green industry” summit that brings the established energy/environmental companies, would-be entrepreneurs, financiers, university researchers, intellectual property attorneys and other supporting professionals into the same place at the same time so they can begin networking and deal making. Ultimately, it’s all about putting the right people together.


  • VOCABULARY OF SETTLEMENT PATTERN

    Well down in the post titled โ€œThe Intellectual Pretensions of Suburb Bashingโ€ Peter G. said:

    โ€œEMR,

    โ€œIt’s so frustrating. I can never win. Just when I think I come up with a really good post, you tell me I got the vocabulary all wrong. If I get the vocabulary right, you’ll say my point is all wrong.

    โ€œGeez!

    โ€œPeter Galuszkaโ€

    Peter:

    EMR did not intend to be critical in any way. As many other comments following you post suggest, settlement patterns that have evolved since 1940 are different things to different people.

    All we say is to understand why patterns are functional or dysfunctional everyone must speak the same language. If you do not like ours, come up with your own.

    Here is a little exercise for readers:

    Take the original post by Peter, Jim Baconโ€™s 6:59 AM post (good to see Jim up early!) and Grovetonโ€™s posts of 12:13 PM and 12:59 PM. Print them out and circle all the times that โ€œsuburbโ€ and โ€œsuburbanโ€ are used. No look at those circled words and see how many different things they describe, especially in the context of the many different experiences noted in the other comments โ€“ some good, some bad; some accurate, some โ€˜adjustedโ€™ to fit preconceived ideas and agendas.

    Peter: I have not visited or lived in some of the places you have. But I do know something about one place you visited. My office / studio at North Lake Cluster in the Fair Lakes Neighborhood of the North Village in Fairfax Center, VA.

    Was that place โ€œUrbanโ€ or less than urban?

    To refresh your memory the residents of North Lake Cluster live at 30 persons per acre โ€“ yes even with that great view of the lake and the Openspace from the windowns and decks. You may recall the Four Seasons photos of the very large Swamp Maple from the front porch that could have been taken in Sherwood Forest.

    It turns out that if one half the Clusters in an Alpha Community were at that 30 pn acre density, then 25 percent could be Multi-Household dwellings (at 40 to 60 per acre) and 25 percent could be Single Household Detached Dwellings on quarter to half acre lots (at 10 persons per acre) and achieve 10 persons per acre at the Alpha Community Scale.

    That distribution of dwelling unit types was the original plan for the almost Alpha Community of Greater Reston. The ratio could have been 30 / 40 / 30 as it is in Village-scale Burke Centre and in the still Beta Community of Columbia, MD, Peachtree City GA, etc.

    The density of the Cluster of Single Household Attached Dwellings listed above is just what our current dwelling is, here in Menlough Cluster next to the Clear Edge (the Town and County leaders word, not just EMRs) around Greater Warrenton-Fauquier.

    Fairfax Center was designed to have a relative Balance of J / H / S / R / A and 55,000 residents on 5,500 acres. Given its context it has not done badly but for some unfortunate rezonings that undermined the Neighborhood Center service idea — everyone could walk to get weekly necessities in a 100,000 sq ft Neighborhood center, etc. Today it would have lots of live-work units…

    Fairfax Center is still not that bad even with traffic from US Route 50, I – 66 and Fairfax Parkway running through the middle and is one of the three Beta Communities we choose to visit inside the Clear Edge. The worst โ€œdevelopmentโ€ in Fairfax Center? The Fairfax Government Center, hands down.

    During the Blueprint process, the Coalition for Smarter Growth came up with some good ideas to evolve Fairfax Center into a great Alpha Community: Fairfax โ€œCityโ€ would become the third Village and the Fair Oaks Mall would be reconfigured to span both US Route 50 and I-66 and both the Core of Fairfax City and the new Core Village would be served by an extension of METRO.

    But no, the economic activity was scattered across the R = 20 to R = 40 Radius Band and at far greater TOTAL cost.

    Oh yes one other thing: Larry do you have no shame?

    โ€œ…and it occurred to me that even after a gazillion tomes from EMR – I still don’t have a feel for what he thinks is an optimal density level for a balanced community.โ€

    First, EMR has written one Tome and working on a second.

    But more important, when reading this post do you not recall seeing the 10 Person Rule [10 Persons per Acre at the Alpha Community scale] at least 50 times in last two years? If TJI had not screwed up the BR archive, EMR could cite you the number of times it was mentioned.

    Look, there are only Five Natural Laws of Human Settlement Pattern. You can write them on your arm with a Sharpie and refer to them when you get confused.

    And on the Tysons issue. How many times has EMR suggested you read Column # 25, โ€œThe Shape of Richmondโ€™s Future,โ€ 16 Feb 2004 for the overall regional evolution process? And while you are at it # 65 โ€œBalanced Communities,โ€ 23 Aug 2005 which Jim Baconโ€™s header describes as โ€œ… Herewith is a primer on what they are and how to create them.โ€

    EMR