Ronin of the Spirt

July 15, 2008

Worst Reporting Ever (III)

Filed under: Ecology, Government, Politics, skepticism — Tags: , , , , — truthwalker @ 10:40 pm

Now, many of you are aware of my great loathing of the Associated Press.  An acquaintance sent me this gem:

An American life worth less today

WASHINGTON - It’s not just the American dollar that’s losing value. A government agency has decided that an American life isn’t worth what it used to be. The “value of a statistical life” is $6.9 million in today’s dollars, the Environmental Protection Agency reckoned in May — a drop of nearly $1 million from just five years ago.

The first thing I want to bring to your attention is the immediate bias.  “…has decided that an American life isn’t worth what it used to be…” Don’t judge by nationality.  Pollution poured into an American waterway that pours into Canada or Mexico will effect those nations.  Further one presumes that the EPA is tasked with protecting the lives of legal and illegal immigrants as well.  By opening the article this way the AP has already began with with a suspect lack of professionalism.

The Associated Press discovered the change after a review of cost-benefit analyses over more than a dozen years. (Way to be on the ball guys!) Though it may seem like a harmless bureaucratic recalculation, the devaluation has real consequences. When drawing up regulations, government agencies put a value on human life and then weigh the costs versus the lifesaving benefits of a proposed rule. The less a life is worth to the government, the less the need for a regulation, such as tighter restrictions on pollution. Consider, for example, a hypothetical regulation that costs $18 billion to enforce but will prevent 2,500 deaths. At $7.8 million per person (the old figure), the lifesaving benefits outweigh the costs. But at $6.9 million per person, the rule costs more than the lives it saves, so it may not be adopted.

Some environmentalists accuse the Bush administration of changing the value to avoid tougher rules — a charge the EPA denies. Conveniently, for the AP, neither the accusers, nor the defenders are named.  It makes it very hard to check sources.

“It appears that they’re cooking the books in regards to the value of life,” said S. William Becker, executive director of the National Association of Clean Air Agencies, which represents state and local air pollution regulators. “Those decisions are literally a matter of life and death.” Dan Esty, a senior EPA policy official in the administration of the first President Bush and now director of the Yale Center for Environmental Law and Policy, said: “It’s hard to imagine that it has other than a political motivation.”

Agency officials say they were just following what the science told them. (Man, I wonder which officials.  Its really hard to check sources if the AP won’t name them.)

The EPA figure is not based on people’s earning capacity, or their potential contributions to society, or how much they are loved and needed by their friends and family — some of the factors used in insurance claims and wrongful-death lawsuits. Instead, economists calculate the value based on what people are willing to pay to avoid certain risks, and on how much extra employers pay their workers to take on additional risks. Most of the data is drawn from payroll statistics; some comes from opinion surveys. According to the EPA, people shouldn’t think of the number as a price tag on a life.

“…potential contributions to society, or how much they are loved and needed by their friends and family…” Wow.  I wasn’t aware that an algorithm existed to determine that.  OH WAIT, it doesn’t.  Calling potential income “potential contributions” sorts of muddies the issue a bit, since potential income is mathematically predictable number, whereas “contributions” has no objective value.  “…loved and needed by their friends and family…” There is no algorithm for that.  The money awarded in a wrongful death case is not to pay the loved ones for their lose, it is to PUNISH the wrong doer for their negligence.  The only purpose of this paragraph is to demonize the EPA for doing the job it has been tasked with.

The EPA made the changes in two steps. First, in 2004, the agency cut the estimated value of a life by 8 percent. Then, in a rule governing train and boat air pollution this May, the agency took away the normal adjustment for one year’s inflation. Between the two changes, the value of a life fell 11 percent, based on today’s dollar.

Refer back to second sentence in this piece: “..A government agency has decided that an American life isn’t worth what it used to be…”  How surprising!  The EPA decides economic policy for the Federal Reserve. You see, by saying decided the second sentence says that the EPA acted purposefully with foreknowledge to reduce the value. Yet 3% of the reduction was inflation adjustment, which they have NO control over.  3% out of 11%.  Well, 3 is 27% of 11.  The EPA had no control what so ever over more than a quarter of the reduction.

EPA officials say the adjustment was not significant and was based on better economic studies. The reduction reflects consumer preferences, said Al McGartland, director of EPA’s office of policy, economics and innovation. “It’s our best estimate of what consumers are willing to pay to reduce similar risks to their own lives,” McGartland said. But EPA’s cut “doesn’t make sense,” said Vanderbilt University economist Kip Viscusi. EPA partly based its reduction on his work. “As people become more affluent, the value of statistical lives go up as well. It has to.” Viscusi also said no study has shown that Americans are less willing to pay to reduce risks.

Here, when quoting some one who knows what they are talking about, the AP actually does OK.

At the same time that EPA was trimming the value of life, the Department of Transportation twice raised its life value figure. But its number is still lower than the EPA’s. EPA traditionally has put the highest value on life of any government agency and still does, despite efforts by administrations to bring uniformity to that figure among all departments.

What does this paragraph mean? a - b - c is greater than x + y + z.  So what?  This paragraph is just a chance to say, “trimming the value of life”  When and by whom were these so called efforts undertaken?

Not all of EPA uses the reduced value. The agency’s water division never adopted the change and in 2006 used $8.7 million in current dollars.From 1996 to 2003, EPA kept the value of a statistical life generally around $7.8 million to $7.96 million in current dollars, according to reports analyzed by The AP. In 2004, for a major air pollution rule, the agency lowered the value to $7.15 million in current dollars.

Now, that is interesting.

Just how the EPA came up with that figure is complicated and involves two dueling analyses. (I love dueling analysts!)

Viscusi wrote one of those big studies, coming up with a value of $8.8 million in current dollars. The other study put the number between $2 million and $3.3 million. The co-author of that study, Laura Taylor of North Carolina State University, said her figure was lower because it emphasized differences in pay for various risky jobs, not just risky industries as a whole.

EPA took portions of each study and essentially split the difference — a decision two of the agency’s advisory boards faulted or questioned.”This sort of number-crunching is basically numerology,” said Granger Morgan, chairman of EPA’s Science Advisory Board and an engineering and public policy professor at Carnegie Mellon University. “This is not a scientific issue.”Other, similar calculations by the Bush administration have proved politically explosive. In 2002, the EPA decided the value of elderly people was 38 percent less than that of people under 70. After the move became public, the agency reversed itself.

Again, the AP does OK quoting others.

So the breakdown is this.

(1.) The EPA is trusted to regulate environmental risk.  Life is full of risk.  Death is risk free.  So, the EPA has the very unenviable job of compromising risk for the greatest benefit and least cost for all players. (2.) To prevent fraud, waste, and abuse, the EPA has to have some kind of metric to make these decisions.  The logical metric is to assign a value to human life. (3.) The EPA used a bullshit process to arrive at their current value.  Somehow, the AP manages to make it seem like this the EPA’s fault rather than leaders who can put the squeeze on the EPA top brass.  From the article, the EPA’s own Science Advisor said this was an awful idea.  What did we learn?

(1.) The AP does crappy reporting again.

(2.) The EPA as a bureaucratic rather than elected group.  As such its policies are subject to a greater and lesser forms of control from overhead, in defiance of its own advisors advice.

Possible solutions (Not comprehensive):  Change American Congress to proportional appointment.  Have EPA heads be elected in free nationwide elections.  To the existing checks and balances in the American system add a fourth leg of Welfare, the head of which is elected the same as congressmen and presidents.  The EPA would then fall with the other alphabet soup of federal agencies under an elected head who competes with the other 3 branches of government for resources and approval.   Make the state governours function as the primarmy stock holders of the US, and let them appoint a CEO for the EPA to serve as the head in business fashion.

March 17, 2008

Americans Hate Freedom

I realized something today.

Americans hate freedom.

Now, this statement will offend some. They will cry out, “We are the freest nation on earth,” “Americans love freedom,” and “Americans love freedom so much they will fight for the freedom of others.” I say, bologna.

As to the first: “We are the freest nation on earth.” How would one measure that? Well, how about percentage of the population incarcerated? Communist China has a population of 1.3 billion with 1.5 million in prison. America has a population of 300 million with a total of 7 million in prison. (1.) The US has more people in prison, both as a percentage of the population and as raw numbers, than any other nation on earth. The United States has 5% of the world’s population and 25% of the world’s incarcerated population. (2.)

Perhaps it could be measured by the amount of red tape through which people have to wade? Well, the tax code (which is not even considered part of the enormous US legal code) is 13,458 pages in total length. (3.)

Well, perhaps, our constitution would tell us. Our first Amendment promises us, among other things, free speech. However, according to Brandenburg vs. Ohio, the Federal government is allowed to stop speech which will result in lawlessness. (4.) Boy, that would make it hard to organize the Boston Tea party, wouldn’t it? Also limited by B vs O is speech which hurts peoples feelings and speech which causes discontentment with the existing government. Second amendment? Superseded by US Code Title 18, Part 1, Chapter 44. What about the 3rd and 4th Amendment? Canceled by eminent domain. (Yes, I am aware that the Bush signed a law that says owners must receive just compensation. How do we figure a fair sale price for that which is stolen?) 5th Amendment? Still good. Except for the eminent domain part. 6th Amendment? Speedy Trial. Need I say more? 7th Amendment? Still good. 8th? Not so much, if you end up as an American citizen in a black site prison (5.) (6.) 9th Amendment? If we don’t follow the constitution, why would rights listed elsewhere be followed? 10th Amendment? Thats, funny. That would mean that any federal power not mentioned in the US constitution belongs to the states. Like the alphabet soup of Federal agencies that dot our political landscape, for instance.

So, pretty much the whole Bill of Rights has gone down the crapper. What about the “War for Iraqi Freedom”? Don’t we love the people of the world so much we will fight for their freedom for them? See, that’s kinda funny, to say “fight for their freedom for them” We go to someone else’s country and say, “We are free. You will be like us, and we will smart-bomb everyone who disagrees.” If you are not free to disagree with the occupying US government, exactly how much freedom are we exporting? You can’t fight someone else’s war for freedom. Not won’t. CAN’T. Freedom is a choice. You can’t make someone be free. It’s like a toddler with a gun saying “Have fun, or else.” Not much fun is it?

If you look at a pie chart of government expenses (Provided conveniently by the US accounting office.)

Federal Budget Pie - where it goes

the government's deceptive pie chart

So, you can see that at least 50% of the spending of the government is social programs. However, the truth is somewhat higher. Many things which you might not consider social programs at first blush, in fact, ARE social programs. The Department of Agriculture administers the Food Stamp program, the WIC program, and makes subsidy payments to agri-industry. $17 billion to Cargill for instance. Not to bad for a company that made $88 billion in sales and is the second largest privately held company on earth. (7.) (8.) Things like that make the above charts a little optimistic.

After spending around 20 to 30 hours (over severals months) here it seems the cost break down is more like 70% handout, 15% defense, 10% debt, and 5% all other federal costs. But, I digress. An examination of social security is sufficient to make the point that Americans hate freedom. The purpose of social security is to take a portion of your income for the rest of your life to pay for the current users. When you need the system you trust that your kids and any recent immigrants will make enough money that their income will pay for your RV. There is a name for an investment system where each set of new investors pays the dividends of the previous investors. It’s called a Ponzi scheme. What if you don’t want to trust a bunch of strangers and the future economy to provide for you? Well, you can still do your own retirement… while paying for everyone else who doesn’t. You can’t love freedom and social security! If you love freedom, you have a problem taking money from other people against their will for yourself, and you have a problem having your money taken away from you to give to other people. Love of freedom and acceptance of coercion can not dwell within the same heart.

So, I conclude, Americans hate freedom. We love coercion. We love it with every part of our hearts. We love telling others what they must do so much, we will surrender our right to decide what we want to do. I could go on and on. But this is only the setup for what I really wanted to talk about today, which is WHY American’s hate freedom.

I can only come up with 2 basic reasons that a person would hate freedom:

1. Freedom is hard work

and

2. Fear of responsibilty.

(One) breaks down into hard physical work and hard mental work. Imagine a person who is not very smart and not born to money. If they want to retire they will have to work many, many hours at unrewarding jobs for many years. They will have to live in bad parts of town (to have low rent) and never drive a new car. This is hard, and not fun, but not as hard as the mental part. The poor person who is trying to save does not get to buy whatever they want, they have to think about every purchase. If they are unintelligent, this will be very time consuming, and again, not enjoyable. They will have to chose work carefully to not spend too much time and money getting to work everyday. They will not be able to vote for whichever politician they like, for they will have to consider things very carefully before they vote or their hard earned money will go away.

(Two) This one is about fear. A person who loves freedom has no scape goat. When they suffer from heart disease at the age of 29, they cannot sue Krispy Kreme. They cannot blame bad parenting, or poor schooling. They can only say, “I did this of my own freewill. I alone am responsible and I alone bear the consequences.” This is anathema to the average American.

I say again. Americans hate freedom and love coercion. Americans hate freedom because they are lazy and afraid.

Now this presents me with a conundrum. All my life I have studied the form of government. I mistakenly thought the important part of government was the form. I realized this was false with the following thought experiment: Who rules more democratically? The king who fears revolution or the president who does not? Obviously, the ruler who must obey the desire of the people or lose his job rules more democratically. The form is meaningless. People who love freedom will self correct any error in form. People who hate freedom will bring coercion upon themselves.

The question facing all government, be it family government of children, church government, or national government is not, “What is the form?” It is this: how do we make people love freedom? The purpose of government is force. (I hear liberals whining about this. I say to them, “Do you think people would pay for those social programs you love so much if no one made them? Government is force.”) Since you can’t force someone to be free, government can do nothing to encourage freedom other than allow it.

But where does that leave me, the little man who wants to make the world a better place? How can I personally encourage freedom? I can’t force anyone to take it. I can’t talk about it for if people desire freedom only because of my words, they aren’t really free.

The only answer I know is this: I must be free. I must enjoy freedom whenever I can. I must fight for my freedom and allow others to do the same. People can then see my life and choose whether they like what they see or not.

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