• Stop the Presses: Bacon Admits He Was Wrong!

    Dominion spokesman Jim Norvelle takes exception to my reading of the State Corporation Commission rulings on coal-fired power plants proposed by Dominion and Apco. (See “SCC Nixes Apco Coal Plant — Is a Post-Coal Energy Era Soon Upon Us?“)

    In its recent rejection of an Apco proposal to build a coal-fueled power plant in West Virginia, I suggested, the SCC had looked skeptically upon the application of fluidized bed combustion technology. Noting that only two such facilities existed in the United States, I referred to the technology as “relatively novel.” Arguing that the SCC’s hands had been tied by General Assembly legislation regarding a proposed Dominion plant that also would use the technology, I concluded: “Kinda makes you think that the SCC never would have OK’d the Dominion plant if given a choice, doesn’t it?”

    Norvelle responds that the technology is “fully mature, with over 500 operating units worldwide, with some units in service for over 28 years.” I’ll concede the point immediately: The technology is widely used outside the United States. My bad. He also emphasized that the SCC’s problem wasn’t with the technology per se but the application of that technology on the scale that Apco proposed. Quoting the SCC ruling (my italics):

    APCo’s proposed IGCC Plant would be the largest of its kind constructed to date. … The record in this case indicates that there is no proven track record for the development and implementation of large-scale IGCC generation plants like the one proposed by APCo.

    That’s a fair point. I did not make it sufficiently clear in my post that Dominion’s Wise County facility would be smaller than Apco’s.

    Norvelle also noted that Dominion’s cost estimates are much more solid than Apco’s. While Apco had not nailed down a fixed-cost contract for any appreciable part of its proposed West Virginia facility, Dominion has secured fixed-price contracts covering 86 percent of the cost of its proposed Wise County plant.

    According to Norvelle, the SCC’s turn-down of the Apco goal-gasification has few implications for Dominion’s project. Dominion is still committed to “clean” coal as a fuel source for electricity. And quoting CEO Tom Farrell, he says: “Coal is by far our most abundant and economic domestic energy source. If we are serious about improving the nation’s energy security, we must maintain its use while protecting the environment at the same time.”

    Bacon’s Bottom Line: There are still valid questions regarding the economics of the Dominion project, but I erred in my previous post: There is no basis for extrapolating from the SCC’s Apco ruling that it would have nixed the Dominion project, too, if given a chance.


  • Save the Blue Crab

    Some of my best memories growing up 40 years ago were of standing at the end of the wooden pier on hot, sticky summer afternoons and throwing chicken necks on strings into the Elizabeth River. We kids would patiently tend the lines and whenever we felt a strong tug, it meant that a blue crab was trying to make off with the bait. We’d draw up the string, slowly, slowly, so as not to spook the crustacean until it was visible just beneath the water’s surface. Then we’d swoop in with a net and scoop it up. Next would follow the prickly task of untangling the fins and claws and spiky shell from the net without getting a nasty bite from the flailing pinchers. Often as not, we’d drop the crab, and it would skitter off the pier and plop into the water.

    These days, not enough crabs are getting away. According to a joint statement by Gov. Timothy M. Kaine and Maryland’s Gov. Martin O’Malley, crab populations in the Chesapeake Bay and its estuaries “are down 70 percent from 1990 levels and are showing no signs of recovery…”

    From the Washington Post:

    The governors are ordering state agencies to cut the harvest of female blue crabs this year by a third. That’s fine as far as it goes; last year, watermen caught an estimated 60 percent of the crabs in the bay, far in excess of the 46 percent goal the states had set some years ago as a means of sustaining the fishery. But it is really more of a stopgap designed to avert utter catastrophe than a lasting solution.

    Sad to say, but my youngest child, nine years old, will never know the simple pleasures of crabbing. When the species is at risk, the kind of play that my childhood friends engaged in, entailing the death of many innocent crabs left carelessly in crab buckets, is no longer appropriate. The slow-motion destruction of the Chesapeake Bay represents a loss for children whose summers will never be as full as mine — not to mention a tragedy for Virginia’s “beautiful swimmers.” Tolerating the devastation of his remarkable species, so critical to the Chesapeake ecology and so interwoven with our heritage, would be a crime.


  • Regional Transportation Authorities + Gasoline Sales Tax?

    Former VDOT Commissioner Ray Pethtel floats an idea for funding regional transportation authorities through a 2 percent retail sales tax on gasoline.

    The General Assembly would need to create a statewide transportation district with optional or mandatory participation for localities. The statewide district would be governed by local elected officials. Each local government would be required to vote to become a member, satisfying the constitutional requirement.

    The new statewide district would have authority to impose a 2 percent tax, again under existing law. In order to gain voluntary participation, legislation should allocate the funds to the regional entities of Northern Virginia, Richmond and Hampton Roads according to the amount collected in those areas. The district then could allocate the remaining funds through the statewide formulas to those jurisdictions that participate.

    Since the tax is based on a percentage of the retail sales price of gas, the revenue would be sensitive to inflation. And there is an existing mechanism to collect retail taxes — so administration would not be costly.

    Read the full proposal in the Roanoke Times.


  • Pat McSweeney: Bane of the Political Class

    Patrick McSweeney is one of the few public figures in Virginia today who hews to the spirit of the founding fathers who protested taxation without representation. First he challenged the constitutionality of giving unelected regional transportation authorities the power to levy taxes. The state Supreme Court backed him up. Now he’s going after the planned transfer of the Dulles Toll Road to the Metropolitan Washington Airports Authority.

    As reported by the Washington Times, the Supreme Court heard oral arguments in the case yesterday. McSweeney, a Richmond attorney, originally filed the suit in Richmond Circuit Court, where it was dismissed. He appealed, and now the Supreme Court is hearing it. The lawsuit argues that the transfer should be invalidated because the General Assembly never approved it. “The governor and executive agencies exercise no power not granted by the General Assembly,” McSweeney told the court. “They acted beyond their authorization.”

    The Kaine administration wants to continue charging tolls on the road, which is scheduled to pay off the last construction bonds by 2016. Now the Axis of Taxes sees the tolls as a multibillion-dollar revenue stream that can help pay for construction of the Rail-to-Dulles heavy rail project. Insofar as the tolls would be applied to a purpose totally divorced from their original function — paying for construction of, or improvements, to the toll road — they constitute a tax.

    Making matters worse, the Kaine administration proposes to transfer the road to the MWAA, to which it has given oversight of the Rail-to-Dulles project. As was the case with the regional transportation authorities that the Supreme Court struck down, the MWAA governing body is not elected. Indeed, its board contains representatives not only from Virginia but Maryland and Washington, D.C.!

    The unelected nature of the MWAA is not the legal issue in this lawsuit — the authority of the Kaine administration to transfer the toll road is the issue — but from a political perspective, this case is all about taxation without representation. This is all about the forces of Business As Usual getting something they want (Rail-to-Dulles) and have someone other than themselves (Dulles toll road commuters) to pay for it — without the consent of those paying the money.

    I’m crossing my fingers and hoping McSweeney hits this one out of the park, too. Two legal grand slams in one season, that would be something else!


  • VEOLIA AD IN AN EVER SMALLER WORLD

    Those who are accustomed to our complaining about WaPo ads โ€“ and MainStream Media ads in general โ€“ may be surprised but todayโ€™s WaPo on page A-7 has an ad that is worth a careful look.

    After you have looked at the โ€œDo you see a Tree?, We also see a universal challenge.โ€ ad, check out the Veolia web site to find out about this Enterprise that provides โ€œwater, waste, energy and transport servicesโ€ for urban areas.

    Here is the story:

    The ad has for a background a high-oblique air photo of what appears to be a swatch of French Countryside. It may be Tuscany or Bavaria or ?. It may even be New Zealand or South Africa but it โ€˜looks likeโ€™ the countryside in Europa. In this swatch of Countryside the farmsteads are not centered on hamlets because the artist did not want to distract from the โ€˜Tree.โ€™

    The โ€˜Treeโ€™ is an Alpha Village scale urban place with a divided parkway serving as the โ€œtrunk.โ€ It could be a large Lewenz (โ€˜Parallelโ€™) Village but does not have the Autonomobile Free Core. In the graphic one can identify a number of land uses that โ€˜couldโ€™ represent a Balance of J / H / S / R / A.

    What is very apparent is the Clear Edge and the relationship between Openspace inside the Clear Edge with Open Land outside the Clear Edge.

    Could it just be that Veolia, an Enterprise that provides water, waste, energy and transport services, knows a thing or two about the settlement patterns the result from the fair allocation of location-variable cost?

    OK, perhaps it is just a nice graphic that happens to be useful to illustrate those realities.

    We will never know.

    On a related topic, NPR did a two part series on 31 March and 1 April on the climate and lifestyle impact of dysfunctional and functional human settlement patterns. The Atlanta New Urban Region is the venue. The functional example โ€“ Atlantic Station โ€“ was designed based on the Richard Thornton graphic we included and described in our โ€œAll Aboardโ€ column of 16 April 2007.

    It is a small world and getting smaller with fewer places to hide for the 12 ยฝ Percenters.

    EMR


  • “Risse Tends to Ruffle Feathers”

    EMR ruffles feathers. Imagine that!

    Ed Risse had a chance to speak truth to power last week when he participated in a round table discussion with Fauquier County’s supervisors on the topic of developing a “functional and sustainable future.” Read a bit more about the session in this advance story published in the Fauquier Times-Democrat. Readers of Bacon’s Rebellion will find most of the ideas discussed in the article to be familiar. But the best part of the article isn’t about Ed’s ideas, it’s about Ed. Permit me to quote at some length:

    Risse tends to ruffle feathers.

    “Ed can walk into a room and immediately alienate the community-development people,” said [Terry] Nyhous, a former Warrenton town councilman. “Iโ€™ve seen it at the town a couple of times. [Warrenton Planning Director] Chris Mothersead would get himself in a dander” listening to Risse, Nyhous said.

    Risse even makes him “mad” sometimes, Nyhous said with a laugh.

    But he reminds himself that Risse intends his criticism to be constructive, the Center District supervisor said. “And Iโ€™ve got to keep [his frustration] in the box and listen” to Risse.

    Risse knows he sometimes rubs the bureaucrats the wrong way. A few years ago, he made a presentation to the Fauquier planning commission and staff that implicitly faulted the countyโ€™s land-planning practices, assumptions and results.

    Risse received a chilly response.

    Later, “a planning commissioner came up to me and said thatโ€™s just what those people needed to hear,” he recalled.

    Yeah, that sounds about right. That’s the Ed we know and love.


  • Voodoo Economics, Meet Cow Poo Economics

    There’s a reason why Albemarle County is one of the most picturesque places in Virginia. Its stately manor houses and landscapes enjoy layers of protection from the higher real estate taxes that result from providing services to a growing, urbanizing population. But people who don’t live in those manor houses are beginning to grumble.

    A group calling itself Forever Albemarle and claiming more than 100 members was formed in October. The leader, Hank Martin, asserts that small property owners are getting a raw deal, according to the Daily Progress. At issue is a land-use taxation program that allows landowners to defer hefty amounts of their real-estate tax bill on agricultural and open space land for up to five years. About 60 percent of Albemarle County acreage qualified for the program, with the result that $17.8 million in taxes were deferred last year– shifting the tax burden onto homeowners. (And those numbers don’t even include the tax benefits of conservation easements.)

    But Albemarle Farm Bureau President Carl Tinder argues that open space and farmland don’t require the same level of services that subdivisions do. Says Tinder: โ€œMy cows have never got on a school bus. … Weโ€™re paying more than our fair share.โ€ Without the tax deferment program, he argues, more farmers would be forced to sell their land.

    Supervisor David L. Slutzky disputes that logic. As reporter Jeremy Borden summarizes his thinking:

    When a rural landowner bought the land, he paid less because the sale price reflects the longer wait for emergency services, rural roads and other โ€œdis-amenities,โ€ Slutzky said. โ€œI think that the land-use program in its current form is a bad idea,โ€ Slutzky said. โ€œThe cows-donโ€™t-go-to-school position is bogus economics.โ€

    Voodoo economics, meet Cow Poo economics. As this controversy reminds us, the politics of growth is all about getting what you want — and getting someone else to pay for it.


  • SCC Nixes Apco Coal Plant — Is a Post-Coal Energy Era Soon Upon Us?

    The news: The State Corporation Commission has rejected a proposal by Appalachian Power Co. to build a 629-megawatt, coal-fired power plant in West Virginia, stating that its $2.23 billion cost estimate was “not credible.” (Read the SCC press release here.) The plant would supply electricity to Apco’s service territory in western Virginia.

    The proposed Apco plant bears similarities to a $1.7 billion coal-fired power facility proposed by Dominion in Wise County. Both would use a relatively novel coal gasification process to reduce pollutants, and both would be designed to incorporate carbon-sequestration technologies to capture emissions of CO2 greenhouse gases, if and when they become commercially viable. While the SCC approved the Dominion facility on the grounds that General Assembly legislation had usurped the commission’s usual oversight role by declaring the plant to be in the public interest, the commission was under no such restrictions with the Apco proposal.

    The SCC found that APCoโ€™s proposal was neither โ€œreasonableโ€ nor โ€œprudent,โ€ a finding that must be made under Virginia law before Virginia consumers can be charged for the costs of a new power plant. Among the problems: Apco has no fixed-price contract for any appreciable portion of the construction costs, and there are no meaningful price or performance guarantees or controls for the project.

    Of potentially broader significance, the SCC questioned the economics of the coal gasification technology on the scale that Apco proposes:

    The use of IGCC technology for a coal-fired power plant of this size (629 megawatts) posed additional uncertainties and risks for Virginia ratepayers. The SCC noted that this would be the largest commercial power plant to use IGCC technology constructed to date, and that APCo had โ€œconfirmed that there are only two IGCC power plants operating in the United States and both plants are โ€˜less than halfโ€™ the sizeโ€ of APCoโ€™s proposed plant.

    โ€œThe record โ€ฆ indicates that there is no proven track record for the development and implementation of large-scale IGCC generation plants like the one proposed by APCo,โ€ the SCC continued.

    Finally, the SCC contended that there was no credible way to forecast how much it would cost to implement the carbon-sequestration technology, which Apco had estimated at between $200 million to $300 million.

    Bacon’s spin on the news: Kinda makes you think that the SCC never would have OK’d the Dominion plant if given a choice, doesn’t it?

    Meanwhile, given the new, higher environmental standards to which coal-fired power plants are being held in the United States, far fewer will be built than thought only a few years ago. Power companies hewing to the Big Grid model of centralized, large-scale power sources connected to population centers by high-voltage transmission lines will have little choice but to turn to nuclear power… which the environmentalists are sure to oppose with equal zeal. That will leave us to the tender mercies of small-scale, renewable energy sources, which, however cool they are, are unlikely to meet projected increases in demand over the next 10 years.

    I think we can confidently predict a future of much higher electricity rates in Virginia. Consumers will have no choice but to conserve. The market for energy conservation technologies and business models is looking very bullish.


  • Albemarle Corp. Chases Mercury-Removal Business

    There are many, many environmental concerns associated with the use of coal as a fuel for electrical power plants. One of the most intractable has been the emission of mercury, a highly toxic chemical that tends to concentrate in the food chain.

    Now Albemarle Corp., a Richmond-headquartered manufacturer of specialty chemicals, has signed a letter of intent to acquire Ohio-based Sorbent Technologies Corporation, a full-service power plant mercury control provider. The $20 million deal combines Sorbent’s mercury-control solutions, which utilize bromine, with Albemarle’s $2.4 billion in revenues, its expertise in bromine manufacturing, and its track record in commercializing new specialty chemical products. (Read the press release.)

    Says Albemarle CEO Mark C. Rohr: “Escalating energy demands and the global call for environmentally sound power generation have converged to present tremendous opportunity for Albemarle’s leading bromine chemistry, as utilities and industrial plants seek cost-effective solutions to reduce emissions.”


  • Using Taxpayer Dollars… to Lobby for More Taxpayer Dollars

    The Northern Virginia Transportation Authority may be broke and powerless, but that’s not stopping it from agitating for more money. In a creative, Internet-era ploy, reports a chirpy Washington Post article today, the authority is asking Northern Virginia commuters to make videos of their miserable rides and post them on its YouTube page for NoVa legislators to see. (As of 8:41 a.m., no one had posted any videos yet.)

    As Eric Weiss explains: “The YouTube effort is part of an Internet-based lobbying campaign by NVTA to regain its money and clout after the Virginia Supreme Court recently ruled that its taxing power was unconstitutional. The main reason NVTA members are turning to the Internet is because it’s free.”

    But the NVTA must not be entirely broke. At the very least, from what I can deduce from its website, the authority has enough money to support an executive director, hold meetings, maintain a website and pen public policy statements. And it’s using that money, which comes directly or indirectly from taxpayers, to agitate for more tax money. Here’s the NVTA message to commuters:

    Virginia’s General Assembly needs to take action now! Contact your representative and ask them to implement the NVTA taxes and fees and enact a statewide transportation plan that meets the needs of Northern Virginia and the Commonwealth.

    The NVTA lists “eight principles” to guide Northern Virginia transportation solutions here. The principles can be summarized succinctly as demanding “mo’ money” to build more road and rail capacity in Northern Virginia at both the local and regional levels. Without saying so explicitly, the NVTA is pushing for more money for itself.

    Does anyone else have a problem with a quasi-state entity like the NVTA using taxpayer dollars to agitate for… more taxpayer dollars? It’s one thing for the elected officials who comprise the membership of the organization to lobby for particular transportation solutions, but it’s another for a taxpayer-funded organization to engage in such advocacy itself. The Business-As-Usual viewpoint already dominates the Mainstream Media, and the Axis of Taxes already enjoys a huge fund-raising advantage over taxpayers and environmentalists in the growth-management controversy. The NVTA initiative is just piling on.

    I will defend the rights of home builders, road contractors and other special interests to spend their own money to advance their agendas in Richmond — the U.S. Constitution guarantees the rights “of the people peaceably to assembly, and to petition the government for a redress of grievances.” But I have a big problem — a very big problem — when advocacy groups co-opt tax dollars to promote their causes.

    This cute little YouTube initiative needs to end now.

    Update: John Mason, the NVTA executive director, defends the YouTube initiative as follows:

    With respect to the premise underlying your comments on NVTA advocacy, Virginia Code (ยง15.2-4840) specifically authorizes the NVTA to serve as โ€œan advocate of the transportation needs of Northern Virginia before state and federal governmentsโ€. Our approach is based on using YouTube, which is free. We are simply facilitating communication between citizens and their legislative policymakers.


  • Charlottesville: How Much Leverage Over Developers Is Too Much?

    It’s a perennial question: What’s the proper balance between planning and free markets in governing a municipality? That issue has come into sharp focus in Charlottesville as city leaders juggle property rights, economic development, transportation capacity, affordable housing and quality of life. Some developers are warning that the cityโ€™s effort to exert more control over future development downtown could backfire and deter growth, reports Seth Rosen with the Daily Progress.

    Last week, the Planning Commission endorsed height limits on buildings in order to preserve the pedestrian-friendly character of downtown. Meanwhile, the planning staff is seeking to decrease by-right building densities downtown in order to force developers to apply for special permits, which in turn gives the City more leverage in extracting monetary concessions from them. The tighter regs, says commissioner Mike Farruggio, provide โ€œsome more latitude and control to make sure it is healthy development and is what we want to occur.โ€

    Oliver Kuttner, who has re-developed several downtown properties, condemns the proposed changes. โ€œIf you drop the by-right you basically stop all development downtown,” he says. “Any developer who buys property buys it strictly on by-right calculations.โ€

    It’s a tricky trade-off. Handled incorrectly, Charlottesville’s proposed new approach becomes a mechanism by which the political class extorts wealth from developers for redistribution to favored causes and constituencies. If developers are spooked, downtown could stagnate.

    On the other hand, a laissez-faire approach towards development has its drawbacks. Re-developing old properties at higher densities increases requirements for parking, street capacity and municipal services, which the city must bear. If the city embraces the principle that growth should pay its own way — otherwise taxpayers wind up subsidizing the developers — it needs a mechanism for developers to contribute to the added strain their projects impose on city infrastructure and services.

    The strategy proposed for Charlottesville is very similar to the way Arlington County conducts business. Arlington officials tout their development model, but they warn that it requires certain political preconditions. First, there must be a long-term consensus on what the community should look like and how development takes place — no whip-sawing back and forth between conflicting policies. Second, Arlington hires top professionals in their fields, including men and women with hands-on experience in the private-sector side of the business, who can approach negotiations with realistic expectations and creative, problem-solving ideas. Charlottesville leaders would be well advised to consult the Arlington County experience before proceeding with their experiment.


  • What Parents Are Getting for their College Tuitions These Days

    I’m back from Augusta, Ga., and I’m probably miles behind the rest of the Virginia blogosphere on this topic, but I figured I’d post it anyway. As a father who has sent two daughters through college and anticipate doing the same for a son, I would be most unhappy if my child were attending Randolph College, an expensive liberal arts school in Lynchburg. (Jerry Falwell is spinning in his grave!)

    According to MSNBC, the American Studies program at Randolph College has sponsored a field to trip Las Vegas for a closer look at…. drum roll… a brothel!

    Each semester, the course examines a strain of American culture and ends with a class trip. Reports MSNBC in a breathless, isn’t-this-interesting tone: The brothel tour was a natural fit for a class on American consumption and “the ideas that consume us.” Said Julio Rodriguez, the director of the college’s American Culture Program: “Don’t just study America โ€” live it.”

    “I think it’s fascinating, this is fun for me,” said Nicki Amouri, a junior at the private liberal arts school . “Not many people get to do this.”

    Isn’t that special?

    The 12 students interviewed “Alicia,” a prostitute at the Chicken Ranch. Sample questions: Do you consider yourself a feminist? Is there a certain look that most men prefer? Do you give a military discount? What’s the worst part of the job? (Answer to the last question: Being cooped up all day. “Feeling morally degraded” apparently wasn’t high on the list of drawbacks.) Next stop for the class: a backstage revue of the risque review “Jubilee.”

    While the Randolph College students took a values-free look at prostitution, I had ringside seats two nights ago in an Augusta, Ga., restaurant where a group of five or six middle-aged men were hanging out and pounding down drinks at the bar. A stunning young black woman, dressed in a tasteful red and white sun dress and matching purse, joined them. She was extremely forward and familiar with the men, one of whom was wearing a wedding ring, and they clearly enjoyed flirting with her. One guy served her some mussel hors d’oeuvres and asked in a boozy voice, loud enough for everyone at our table to hear, “Does it make you horny?” After 45 minutes or so, they all left the restaurant together. Draw your own conclusions as to the nature of the relationship.

    The incident was almost as instructive as the Randy Mac students’ trip to the Chicken Ranch. Only difference: I didn’t have a chance to query the “sex worker.” (We wouldn’t want to use a judgmental word like “whore,” would we?) If I had, I would have asked the young woman at the Augusta restaurant – who must have been a college student, judging by her glamorous looks, vocabulary and diction, which surpassed in sophistication that of the men she was accompanying — what the hell are you doing?

    You’re a beautiful young woman, why are you selling yourself to low-life creeps like these guys? Given the fact that you’re black and they’re white, do you ever feel exploited? Does your family know about this? Do you ever feel guilty or remorseful about what you do? Is this something you’ll feel comfortable telling your children about some day? Could you explain your moral value structure — does sex mean anything more to you than a commodity to sell?

    Contemporary American consumerism exists in a moral void today. But it isn’t the consumerism that scours our souls. I think the causality works quite the other way around. A moral vacuum — a hedonistic search for pleasure and self-gratification, lacking any higher purpose — steers us into excessive consumerism without any thought to the moral implications. If the MSNBC story was any indication, however, the Randolph College course never plumbed the subject to that depth. The story itself certainly didn’t.

    If I were a parent of a Randolph College child, I’d be demanding my money back. Here’s the saddest part of all: The parents of these children apparently saw nothing wrong with the trip. Someone had to foot the tab for the cross-country travel — and it probably wasn’t the students. I am not religious and I am not a prude, but I certainly don’t want my daughters embracing a values-free outlook on prostitution.


  • Obligatory Post about Land Use in Augusta, Ga.

    I’d never given much thought to human settlement patterns in Augusta, Ga. I don’t follow golf, so the city is no more likely to enter my consciousness than, say, Minsk or Ougadougou. But I do make it a habit to observe what I can of human settlement patterns wherever I go. I must say, I was pleasantly surprised. The neighborhoods near the August Country Club are quite beautiful. There are many handsome houses lining impressive thoroughfares. Augusta loves its trees and landscaping, and this is the season for the dogwoods and azaleas.

    In most respects, Augusta displays the same human settlement patterns that pervade the United States: segregation of residential and commercial land uses, and segregation of neighborhoods by income. There was, however, one small, delightful surprise.

    We took a “short cut” yesterday through a neighborhood to avoid the awful morning traffic near the golf course and managed to get quite disoriented by all the windy, hilly roads. (In other words, we got lost.) But the neighborhood was stunningly beautiful. It was heavily wooded, with steams, stone bridges and immaculately landscaped gardens . For all its beauty, though, the neighborhood appeared to be a monoculture of detached, single-family dwellings, all in the same narrow price range ($1 million or so, applying Richmond valuations).

    Then, to my surprise, we rounded a curve, and there was an apartment building, a structure with eight or so units. Solid brick, tastefully done, not out of character with the houses nearby. Then, a little further, we encountered a long row of townhouses. These “multiple-family dwellings” fit seamlessly with the single-family houses.

    Now, this wasn’t exactly “workforce” housing. Instead of limiting itself to the top one percent of income earners, these dwellings might have opened up the neighborhood to the top 25 percent of the region’s income earners. But, hey, it was income diversity of a sort.

    I can fully understand why homeowners might want to keep their neighborhoods free of crack houses and halfway houses. But I never understood the need to segregate housing within the same narrow income band. Why not open up the neighborhood to households of smaller size and somewhat different incomes? This neighborhood in Augusta, Ga., did so successfully. Try it, you might like it.


  • Yes, I Did See Tiger Woods

    To answer the obvious question: Yes, I did see Tiger Woods. We camped out around the 11th hole yesterday, and we made a point of staying there until Woods played. As much as I have zero use for celebrity worship, I couldn’t come to the Master’s golf tournament and miss seeing him. And trust me, Woods is a massive celebrity, even among this crowd of mostly affluent, Southern, white, middle-aged men.

    Woods wasn’t playing particularly impressively at that point in the afternoon. He had racked up a succession of par rounds, even as a legion of lesser talents were smoking past him. But when Woods showed up in the fairway behind us, all heads swiveled away from the mere mortals who were teeing off on the 12th hole back toward Woods, who was doing nothing, just leaning casually against his golf stick and waiting for the group ahead to finish. A whole sea of people — investment bankers, corporate attorneys, building contractors, the business elite — stood up from their seats just to get a better glimpse of the Mighty One.

    Woods was cool — relaxed, almost nonchalant, showing no stress at falling three shots off the leadership pace. He played solid golf on the 11th hole, finishing up with another par. He had a chance at scoring a birdie, but he took a long putt that missed the hole by an inch or two. And then he was on to the next hole. No showmanship, no swagger. Very understated, very civilized. Woods, I would suggest, is one of the few celebrities who deserve the idolatry bestowed upon him.

    That was my brush with Woods worship. Been there, done that, bought the t-shirt with the Master’s logo.

    I get to stay in our guest house today, getting some work done, while my father-in-law, an avid golfer, uses my pass. The Master’s is a world-class event, and I’m pleased that I had a chance to witness it. The grounds were immaculate and beautiful. I soaked up impressions of a sub-culture to which I had never been exposed. But I’ll tell you this, as boring as golf is to watch on television, it’s even more excruciating to watch in person. At least the television cuts from player to player — no long waits between “action” sequences. In person, one must endure interminable intervals between golfing groups. Golf makes baseball look like a non-stop, fast-action thriller of a sport. On television, there is no trouble seeing where the golf ball travels. In person, you might be lucky enough to see the ball immediately after it’s hit, but you lose it in the sky and can’t see it again until it plunks down on the ground. Booooring.

    But, hey, it would be a dull world if everybody liked the same thing. If people love golf, good for them. I’ve got other things to do with my life. … Like blog.


  • Part Three on Supercapitalism

    This post is about the Have Nots in the workplace in the Supercapitalist (Robert Reich’s term) economy.

    Previously I posted about the conditions that frame the individual person’s economic condition. Those conditions can be improved substantially in Virginia by increasing capital. Lower taxes, personal and corporate, create Commonwealth Trust Accounts, reform health care (not addressed in detail), increase supply of energy, etc.

    Now, what is a person, let’s call him or her – Miss Have Not, to do when there are very few opportunities to move up a notch on the economic ladder? And, the jump up several notches requires new skills, education or successful entrepreneurship. Furthermore, Miss Have Not’s employer is constantly squeezed to keep her labor costs down and to push her productivity up.

    Let’s say the persons who feel trapped or left behind in this Have Not end of the normal curve – or economic ladder – are 40% of the citizens of Virginia. (I’m not including illegal aliens).

    First, the personal savings posted earlier, created from existing taxes, build significant security for health care and retirement.

    The next step is very hard to do. (It will likely undo many of the Republican Party credentials I’ve built over 16 years. What the hey, I was a Populist Christian the whole time – anyway. Still a Conservative)

    You can find money for redistribution from corporate good works and in executive salaries. You can share profits in stock and stock options.

    1. Corporate good works (the Breast Cancer ladies are going to hate this – and many others) come from the corporate bottom line. It is a zero sum game in the closed system of one business tally sheet, so corporate good works compete with wages.

    Encourage corporations to stop doing good works, public service, community relations, etc. and put the money into wages. Or, tax good works heavily and put that tax money into individual Commonwealth Trust Funds for persons in the lower 40% of income.

    Change the laws to tax non-profit organizations incomes as income or tax their distributions. It is capital that has avoided the ‘tax once’ rule. Recycle the tax money to the individual Commonwealth Trust Funds of the lower 40%. (I am okay with taxing my tithe to my church or taxing my church’s distributions – if it doesn’t cross the first Amendment line of establishing or prohibiting religion and I’d like to know the legal precedents back to the Roman Empire on what the ability to tax means – really)

    2. Encourage corporations to share their profits in company stock, stock options, or direct profit-sharing for small business that comes directly off corporate taxes. Or if we actually have a zero corporate tax rate, then make those corporations that don’t share profits pay corporate tax – which increases their risk and reduces their competitiveness.

    3. (Deep breath) I actually thought of this in the early 90s. Look at the maximum ratio of the highest paid person to the lowest paid person. Is it, or in your mind, should it be, 7:1, 10:1, 100:1 or 1000:1 or what? I call that ratio the “Greedcap”.

    The rationale is this. The CEO or management, (and I am paid a management salary), reflects how much money, value-added, the persons add to profit. (I’ve made my companies far more money than they have paid me – like a professional athlete… just not as well!). Yet, at some point the increased profit of a corporation is the result of everyone’s better work. I don’t know that number empirically. But, I know it exists.

    Enter labor unions or shareholders. Leverage must be brought to bear when the highest pay is over the Greedcap. Every dollar paid over the Greedcap should be split (say 50:50) with 50 cents going to a person and 50 cents going to the stock, stock options, profit sharing, health benefits or retirement fund, whatever, shared by all employees. Note, if the Government, Federal or Commonwealth, establish the Greedcap and try to regulate this it will be a screaming disaster. It falls to unions, non-union workers and shareholders and moral suasion to make this work. A key point here is that you aren’t taking capital from corporations but redistributing capital allocation within the corporation or small business. (And don’t forget anyone – medical professionals, lawyers, authors, movie stars, athletes, university presidents, non-profit management, union leaders, etc. They all make their money in a community of co-workers or employees)

    Next installment…dealing with the restructured economy, or… what about Walmart?