John Stossel tonight: Bailouts and Bull

Don’t miss this new John Stossel special tonight on ABC’s 20/20:
The Conceit of the Ruling Class
Politicians and pundits say government must do “something.” It sound like a Viagra ad: “Does your economy have performance issues? If it’s hard to achieve and maintain growth, ‘stimulus’ is right for you!” But shouldn’t “stimulus” come with a warning label? “Side effects may include hyper-inflation, dollar devaluation, horrible debt, growth of welfare state, and unrealized expectations. Stimulus has not been proven successful, so it should not be used in the hopes of achieving actual growth …”
While politicians claim that “all” or a “consensus” of economists agree that something “big” must be done, more than 300 economists say that the government’s action do more harm than good. I interview some, calculate the amount the stimulus costs per taxpayer (about $16,000) and ask lawmakers: Where will you get the money? If too much debt was a problem, why is more debt now a solution?
I confront House Majority Leader Steny Hoyer about his claim that “all economists agree.”
Land of Opportunity
Even before the current recession, we were told that the American dream was out of reach for many. Arthur Brooks of The American Enterprise Institute says: Don’t believe the doom and gloom — wages and living standards have been on the rise since the 1950s. Despite what folks like Barbara Ehrenreich claim (“It is definitely harder to be middle class today than it was a generation ago”), the American dream is alive and well. Ehrenreich published “Nickel and Dimed”, a best-seller that argues that it’s almost impossible for an entry level worker to make it in America. College student Adam Shepard decided to test her theory. He picked a city out of a hat, went there with $25 in his pocket, telling no one of his college degree. Soon he had a job, an apartment, enough savings to buy a used truck, and thousands of dollars in the bank. He says he thinks Barbara Ehrenreich “wanted to fail.” I confront Ehrenreich.
Universal Pre-K
Yesterday President Obama made a speech promoting Universal Pre-School. The promise sounds wonderful: Let’s help sweet little pre-schoolers get a strong start in school. But SHOULD that be the job of our government? President Obama says, “We’ll see a $10 return for every dollar we spend.” I investigate those statistics. They turn out to be largely bull, based on a tiny study of severely disadvantaged kids. States like Oklahoma and Georgia have already spent billions on universal Pre-K and have nothing to show for it. Even the famous Head Start turns out to have no noticeable effect by the fourth grade. Dumping more money into an already failing government-monopoly school system? Give me a break.
Run for the Border
Do you sleep better at night knowing there’s an expensive fence on America’s southern border? Will a giant wall really secure our country? So far, those wanting to come here just go around the wall, climb over it, or cut holes in it. If we further reinforce the entire southern border, then what about Canada? Won’t terrorists, illegals, and drug smugglers just come across from the north? And what about the miles of east and west coast beaches? Will we patrol our coastline with machine guns? In fact, half the illegals in America entered legally by using tourist or student visas, and staying after their visa expired. It’s absolute BULL to think an expensive fence will keep anyone determined to get in this country out.
Killer Commute
Got traffic on your morning commute? It’s only going to get worse. Drew Carey and I profile workers with terrible commutes. Wouldn’t traffic flow better if we had some extra lanes on the freeway or new roads? Wouldn’t it be good if they were paid for by someone other than taxpayers? Some politicians say yes: privatize the roads. Indiana Gov. Mitch Daniels did that with the Indiana Toll Road. Of the company that now leases the road, Daniels says: “They either build and maintain a road that is attractive enough and inexpensive enough, or they’ll lose money. Your first insurance that they’re gonna run a better road than the politicians did is, if they don’t, people won’t drive on it and they’ll lose a lot of money. They have every incentive to make traffic flow swiftly, to make that drive as pleasant and safe as possible.” Indianataxpayers made billions of dollars on the lease, but Congressman Peter DeFazio, D-Ore., says :”Privatizing existing taxpayer infrastructure is not a solution for anybody.” I confront Defazio.
Medical Marijuana
Melissa Etheridge, Montel Williams and thousands more say that without medical marijuana, they would be very sick. Fortunately for them, 13 states now allow medical marijuana. Unfortunately for them, U.S. government says federal rules trump state law, and the federal government classifies marijuana as worse than crack cocaine. This is odd, since politicians from the party in power like Barack Obama, John Kerry and John Edwards have all joked about their own marijuana use. Charlie Lynch made the mistake of running a medical marijuana dispensary that tried to obey all the state laws. But still fell afoul of federal prosecutors. He now faces up to 100 years behind bars in a federal prison. He is scheduled to be sentenced March 23.

Atlas is shrugging … in Hollywood, too

From Robert Bidinotto:
Here is another example of how tax policy is leading to “Atlas shrugging.” In this case, the “Atlas” is Hollywood — meaning, big Hollywood production companies — and they are “shrugging” by what is called “runaway production” — that is, they are “running away” from California to produce films elsewhere because of the state’s outrageously high taxes.
“Over the weekend, â??Iron Manâ?? director Jon Favreau organized a meeting with Marvel Studios producer Lou D’Esposito, California Film Commission member/producer Stanley Brooks, and actor Tom Arnold with California Governor Arnold Schwarzenegger to talk about the problem of runaway production. . . .Saturday’s meeting was pushed by Favreau who wants to keep â??Iron Man 2’sâ?? $140 million production in Los Angeles. . . .Marvel, of course, only cares about the bottom line and wants to make the â??Iron Manâ?? sequel anywhere the studio is given the best financial deal. “Marvel got an 8-figure [tax] rebate check on ‘The Incredible Hulk’ which was shot in Canada,” Favreau tells me. “It’s hard to compete with that. But a little bit of a tax incentive in California could go a long way.”
So, what exactly is the problem with producing films in Hollywood?
“Unlike about 40 other states, California does not offer a tax credit program to keep Hollywood at home. So the number of film production days shot on location in Los Angeles has plummeted nearly 40% since 1997, according to FilmL.A. Inc, a non-profit group that handles film permits. What’s at stake? Well, a major production can pump tens of thousands of dollars a day into local economy what with hotel room stays, catering, services and permits. One figure cited is that 3 weeks of filming of â??Memoirs Of A Geishaâ?? generated more than $4 million for Sacramento and El Dorado counties.”
” . . .Schwarzenegger explained that the problem isn’t him: it’s the state legislature looking at a $15+ billion budget shortfall. Democrats want to use that tax money for more humanitarian concerns, and see providing services for the poor as more important than providing tax incentives to rich moguls. . . .”
Yes, we have to punish all those “rich moguls” in Hollywood in order to provide more help “for the poor.” But, um, erâ?¦where the hell do the politicians expect to GET tax money if those “rich moguls” move their productions elsewhere, taking with them all the jobs and secondary businesses that a big Hollywood production creates? Punitive taxes are thus costing California big-time:
“[Schwarzenegger] most recently railed against runaway production at a news conference on May 9th — but that was scheduled only after he received heat during another press conference. . .from reporters annoying him with questions about “Ugly Betty” leaving Los Angeles for New York to take advantage of an Albany-passed package of fat [tax] rebates. . . Since then, the TV shows “Life On Mars,” “Fringe” and “Kings” have left Los Angeles or Toronto (where the Canadian dollar is suddenly expensive) to move to NYC as well.”
Put simply, Atlas is indeed “shrugging” â?? and this time, at least, Hollywood leftists are paying the price for their own socialistic lunacy.

Atlas Shrugged sales briefly top Audacity of Hope

From The Economist:

According to data from TitleZ, a firm that tracks bestseller rankings on Amazon, an online retailer, the bookâ??s 30-day average Amazon rank was 127 on February 21st, well above its average over the past two years of 542. On January 13th the bookâ??s ranking was 33, briefly besting President Barack Obamaâ??s popular tome, â??The Audacity of Hopeâ?.

Enough to give a guy some hope. The article continues:

Tellingly, the spikes in the novelâ??s sales coincide with the news (see chart). The first jump, in September 2007, followed dramatic interest-rate cuts by central banks, and the Bank of Englandâ??s bail-out of Northern Rock, a troubled mortgage lender. The October 2007 rise happened two days after the Bush Administration announced an initiative to coax banks to assist subprime borrowers. A year later, sales of the book rose after Americaâ??s Treasury said that it would use a big chunk of the $700 billion Troubled Asset Relief Programme to buy stakes in nine large banks. Debate over Mr Obamaâ??s stimulus plan in January gave the book another lift. And sales leapt once again when the stimulus plan passed and Mr Obama announced a new mortgage-modification plan.
Whenever governments intervene in the market, in short, readers rush to buy Randâ??s book. Why? The reason is explained by the name of a recently formed group on Facebook, the worldâ??s biggest social-networking site: â??Read the news today? Itâ??s like â??Atlas Shruggedâ?? is happening in real lifeâ?. The group, and an expanding chorus of fretful bloggers, reckon that life is imitating art.

See the full article for more.

NYT Blog: "Going Galt: Everyone's Doing It!"

Eric Etheridge has a new roundup post on the NY Times blog looking at the phenomenon of everyone going Galt in response to the Obama administration’s various policies, “stimulus” packages, and bailouts.
Definitely worth reading, as this could be the start of the most widespread and meaningful discussion of Ayn Rand’s ideas in our lifetime.
UPDATE: Also from the NYTimes, don’t miss the Atlas Shrugged Index.

Atlas Shrugged audiobook ranks #4 at OverDrive

From Atlasphere member Greg Garamoni:
The audiobook version of Atlas Shrugged (Blackstone Audio, Inc.) appeared as the fourth most downloaded Adult Fiction audiobook on OverDrive‘s list of “Most Downloaded Books from the Library” for January 2009.
OverDrive describes itself as the leading global distributor of audiobooks and eBooks to libraries, schools, and retailers. The “Most Downloaded Books from the Library” lists (adult fiction, adult nonfiction, juvenile fiction, and juvenile nonfiction) are based on activity at 8,500 libraries in the OverDrive global network.
Atlas Shrugged has been on the list for six months. This provides clear evidence that people are still listening to her message (pun intended). This trend is a ray of hope as the dark politico-economic reality imitates her fiction.
Most Downloaded Books from the Library
powered by OverDrive
Published on February 1, 2009
Download Audiobooks – Adult Fiction
1. The Host, by Stephenie Meyer (Books on Tape)
2. The Associate, by John Grisham (Books on Tape)
3. The Appeal, by John Grisham (Books on Tape)
4. Atlas Shrugged, by Ayn Rand (Blackstone Audio, Inc.)
5. 1st to Die, by James Patterson (Hachette Audio)
6. Scarpetta, by Patricia Cornwell (Books on Tape)
7. The Curious Case of Benjamin Button and Other Stories by F. Scott Fitzgerald, by F. Scott Fitzgerald (Blackstone Audio, Inc.)
8. Plum Spooky, by Janet Evanovich (BBC Audiobooks America)
9. 7th Heaven, by James Patterson, Maxine Paetro (Books on Tape)
10. Pride and Prejudice, by Jane Austen (Blackstone Audio, Inc.)

Ayn Rand, meet Amazon Kindle

The next time I re-read The Fountainhead and Atlas Shrugged, I suspect it will be on the new Amazon Kindle, which looks pretty fantastic.
It appears to solve several of the problems I have experienced, over the years, with reading on my Treo and my iPhone:

  • The Kindle is more like looking at paper than looking at a CRT or LCD screen
  • No glare when you’re reading outdoors or in front of a window
  • Larger screen, which means more readable fonts as well as less time spent scrolling and waiting for the screen to load

And it solves several problems associated with books, as well:

  • Easier to hold in your hand. I’m guessing here from the videos, since I haven’t actually held one yet. But I’ve always been annoyed by the awkward way you have to use your fingers to hold open a new paperback. The Kindle looks easier.
  • No more accumulating hundreds of books on bookshelves that you read once, at most, and then have to lug from one home to the next, in heavy boxes, when you move.
  • Less money spent on books that you may or may not actually read.
  • Less eye strain. At night, when my eyes are tired, I could have the Kindle “read” to me. Ditto when I’m driving and want to listen to a book.

I like it.

Joe the Plumber: Atlas Contemplates Shrugging

From a new article at American Thinker, written to “Joe the Plumber” from a fellow businessman:

I wish you well, guy. You might just have the genius and persistence to pull this off. I really do hope so. As for me, I have had enough. I have fought creeping liberalism and managed more wins than losses over 17 years. We have progressed to where our business, now a corporation, is big enough so that Obama and his ilk now have their own ideas about “what larger businesses can afford” and what “corporations can afford.”
Well I’ve got news for him. I cannot afford what they think I can afford, so I am breaking her up and giving her away to some key employees. I wish them well too. They are like you, tough and smart. Perhaps if they stay small enough and never can carry forward more than 250 thou to the next year, they will be allowed to keep their businesses through a downturn.

See the full article for more.

Colorado's Amendment 48: Fertilized Egg = Person

From Diana Hsieh:

Reproductive rights in Colorado are under attack by the religious right. Amendment 48 — the ballot measure that would define a fertilized egg as a person with full legal rights in the Colorado constitution — threatens not just legal abortion but also the birth control pill and in vitro fertilization.
The Coalition for Secular Government just published an issue paper on the threat posed by Amendment 48 by Ari Armstrong and myself (Diana Hsieh) entitled “Amendment 48 Is Anti-Life: Why It Matters That a Fertilized Egg Is Not a Person.” It’s available for download at:
http://www.SecularGovernment.us/docs/a48.pdf
It shows that Amendment 48 is deeply hostile to human life:
* Given existing criminal statues, Amendment 48 would subject women and their doctors to life in prison or the death penalty for abortions, even in cases of rape, incest, and fetal deformity.
* It would prevent doctors from properly treating non-viable ectopic pregnancy until the woman’s life and health was in serious danger, thereby causing needless deaths.
* It would force thousands of women each year to bear unwanted children, whatever the cost to their own lives and happiness.
* It would ban popular and effective forms of birth control, including the birth-control pill, thereby increasing unwanted pregnancies.
* It would outlaw the fertility treatments responsible for the birth of hundreds of Colorado babies to eager parents each year.
Amendment 48 would do all that based solely on the faith-based fiction that a fertilized egg is the moral equal of a born infant. Our paper shows that the biological facts support the opposite conclusion: that only the pregnant woman, and then the born infant, are persons with rights. It shows that Amendment 48 is deeply hostile to the requirements of a rational, responsible, and moral life.