Let’s Make Lots of Money

Sounds like a lyric from a Pet Shop Boys song.

The hackers who assaulted Colonial Pipeline, ostensibly for ransom, claim they

only want[] to make money, not disrupt society….

Never mind that their attack on a major oil pipeline does precisely that disruption.

Never mind, either, that these hackers aren’t total idiots—they knew their assault would disrupt a major segment of our economy and so our society. That was the purpose of the attack; this was no petty criminal act. Demanding to be paid by their victim is simply a distraction.

They claimed this, also:

From today we introduce moderation and check each company that our partners want to encrypt to avoid social consequences in the future.

Right. And they have some bridges across the Reka Vop’ to sell us, also. All illegal behavior, much less terrorist behavior, if left unanswered has social consequences.

No, these…personages…have simply applied a Willy Sutton tenet to their terrorism:

Go where the money is. Go there often.

Our Federal government, actively aided by our State governments, need to get aggressive with active responses to such attacks. The time for passivity, for merely acting defensively after the fact, is long past. Terrorists, physical or cyber, network entities or state-sponsored, need to be burned to the ground.

The negligence of company CEOs, COOs, and CIOs, including those officers at Colonial Pipeline, in not being serious about hardening their systems, also badly wants sanction.

Other Implications

Automakers are starting to adjust their level of dependence on Just in Time manufacturing, a technique whereby manufacturers vastly reduce inventory holding costs by having the relevant inputs—car parts, for instance—arrive at the factory just before they’re needed. In some of the more extreme cases, that includes arriving on the moving assembly line just before it’s needed for addition to the growing product.

The hyperefficient auto supply chain symbolized by the words “just in time” is undergoing its biggest transformation in more than half a century, accelerated by the troubles car makers have suffered during the pandemic. After sudden swings in demand, freak weather, and a series of accidents, they are reassessing their basic assumption that they could always get the parts they needed when they needed them.
“The just-in-time model is designed for supply chain efficiencies and economies of scale,” said Ashwani Gupta, Nissan Motor Co’s chief operating officer. “The repercussions of an unprecedented crisis like Covid highlight the fragility of our supply-chain model.”

That’s true, and it’s also good that that fragility finally is being taken seriously.

There are two other factors in JIT supply chain fragility beside those largely innocent ones. One is the fact that an enormous amount of trade goods, including raw materials and components for assembly into larger components or finished products, passes through the South China Sea. A large majority of Japan’s inputs and trillions of dollars of value for the US pass through the that Sea. Those shipping lanes are at increasing risk from an increasingly aggressive and acquisitive People’s Republic of China.

The other source is supply chain disruption by union strikes. Strikes generally and supply disruption by strikes are ways in which unions extort concessions out of manufacturers.

Inventory on hand, rather than on trucks or rail cars, helps manufacturers get through those deliberate disruptions.

C Boyden Gray vs NASDAQ

I know who should be winning. I know how the matter should be resolved.

Recall that NASDAQ wants to require companies, as a condition of being listed on the NASDAQ exchange, to have quotas of particular groups of Americans on those companies’ boards of directors:

“at least one director who self-identifies as female,” and “at least one director who self-identifies as Black or African American, Hispanic or Latinx, Asian, Native American or Alaska Native, two or more races or ethnicities, or as LGBTQ+.”

And

Noncompliant firms must publicly “explain”—in writing—why they don’t meet Nasdaq’s quotas.

Gray’s and his colleague, Jonathan Berry’s, summary of their Comment filing before the SEC is spot on.

Nasdaq’s discriminate-or-explain rule is unlawful, unconstitutional, and unsupported by the evidence. Quota systems like this unjustifiably classify people by arbitrary categories of sex and race in violation of equal-protection principles, and the “alternative” of explaining why a firm won’t discriminate compels speech in violation of the First Amendment.

Yet, this is the damage the social justice warriors that infest our government at all levels would inflict.

“How to Save the Post Office, Maybe”

That’s the headline of a Monday Wall Street Journal editorial.

In response to which I ask, why do we need to?

After all, using the Editors’ own numbers,

the USPS says in 2006 there were 5.6 daily pieces of mail per delivery point. Last year: three. By 2030 the estimate is 1.7.

Why? It’s a shrinking need; the Internet is supplanting mail delivery. In-person communication is done by telephone, Skype, Zoom, and a plethora of other applications. Written correspondence is handled, in among other ways, by a plethora of email facilities.

The Postmaster General, and the Editors, think it would be a good idea to extend the delivery time for long distance first class mail from three days to as many as five. The horror.

They also want to boost the price of using the mail system—the stamps we use.

Here’s a thought about an alternative, though, and one that has a chance of saving both our taxpayer dollars and reducing our consumer costs.

Our Constitution mandates only that the Federal government establish Post Offices and Post Roads. There’s no requirement that the Federal government—or any other level of governance—run the post office and post roads. The latter especially are everywhere, from the Interstate highway system and Federal highways to State highways, County roads, Farm to Market roads, etc, etc, etc.

Let private enterprise run the post offices, too, and handle all mail delivery.

Everything other than first class mail and junk mail and advertising fliers (but I repeat myself) already is handled competitively and efficiently (because competition) by private enterprises.

There’s no reason those private enterprises, or others that would appear in the competitive market, can’t handle first class delivery and junk mail and advertisements, also. And in the latter case, digital junk and ads already are ubiquitous. The paper needn’t be. Think of the trees.

Internal Tariffs

Mercantilist tariffs (as opposed to tariffs as foreign policy tools) are purely protectionist, designed to punish competitors for competing. They’re not only aimed at foreign competition, either, as Europe’s auto industry is demonstrating [emphasis added].

Auto makers in Europe eager to boost sales of their electric vehicles have a new strategy: demanding higher taxes on conventional vehicles that burn gas and diesel fuel.
The top executives at several car and truck makers are calling on European governments to introduce the new taxes on carbon-dioxide emissions from gasoline- and diesel-powered cars and trucks as a way to help their EVs better compete.

And there’s this bit of disingenuosity [emphasis added]:

Taxing emissions from polluting vehicles, he [Volkswagen AG Chairman of the Board of Management and VW Group CEO Herbert Diess] and other executives say, would help ensure electric vehicles remain attractive for buyers after the expiration of subsidies that are now sustaining sales.

But don’t you dare think about taxing the EVs’ pollution from mining the materials needed for the batteries, the pollution from manufacturing those batteries, or the pollution from disposing of those batteries when they’re spent.

Once again, if a company’s product is unable to compete in a free market without subsidies for their own products or artificial burdens—those internal protectionist tariffs—laid on competing products, the company’s product is not viable and not ready for market.

Full stop.