Category Archives: Economics

Miscellaneous economy stuff

Government Spending on Fast Internet Service

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The Federal government has a $42+ billion program for expanding broadband Internet access to Americans who don’t currently have that access. In a rare application of sense, the law has an entry criterion:

The broadband plan, part of the $1 trillion infrastructure bill signed by President Biden last November, stipulates that money to improve service can’t be doled out until the Federal Communications Commission completes new maps showing where homes and businesses lack fast service.

Like I said, an application of sense. But there’s one more little fillip that’s necessary. That’s the need to define “fast Service.” Absent that, the maps won’t necessarily be useful.

Such a definition is needed because Internet speed is constantly increasing as the underlying technology is constantly improving. We’ve gone, after all, in just three decades, from 300baud dial-up access to the Internet at the start to today’s 100s of gigabit/sec access, and that’s getting faster as 5G access spreads and subsequent xG accesses are developed.

What’s the speed for which the FCC’s maps are required to indicate the need on the part of those of us who don’t currently have it? Will that be a static requirement, or will the speed be required to increase along with the general population’s access speed?

An Interesting Exercise

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Chicago Mayor Lori Lightfoot has announced that Chicagoans can look forward to her planned bump in their property taxes of 2.5%, effective next year.

Maybe the increase is warranted, maybe it isn’t. Here’s the exercise. Lightfoot needs to release, for each of the prior five years, detailed line-item allocations of budgeted property tax collections and the production schedule for each of those allocated-for items.

In parallel with that and for each of those same five years, she needs to release detailed line-item actual expenditures, supported by receipts for each expenditure, for every step of the supply/expense chain from allocation through intermediate purchases/expenses—including identifying intermediate and final suppliers, wages suppliers paid for production of each item at that stage of the chain, the services and hard goods bought, the date of each purchase, the date of actual delivery of each purchase—through to final allocated-for product delivery and the date of that final delivery. For those projects not yet completed and those items not yet finally delivered, she needs to release the originally scheduled dates, their current status, and concrete, measurable reason(s) for the delay, if any.

The exercise, also, would be as informative as it would be interesting.

0% Inflation

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That’s what President Joe Biden (D) said, just a few days ago, when overall inflation came out unchanged in July vs June. (I’ll elide, here, the year-on-year inflation rate of 8.5% in July, which is a little different from 0%.)

Today we received news that our economy had zero percent inflation in the month of July. Here is what that means: while the price of some things went up last month, the price of other things went down by the same amount.

Among those things whose price went up is food, which all of us need for survival, even as we don’t need gasoline or airline tickets just to survive.

…in July, food prices accelerated further, the Labor Department reported on Wednesday. The food at home category, which tracks the cost of groceries, surged 13.1% over the last year, the most significant increase since March 1979. On a monthly basis, prices jumped 1.4%.

The increase in the cost of food for our families was somewhat more than zero. In fact, annualized, that 1.4% month-to-month increase works out to 18.2%, even larger than that realized annual increase of 13.1%.

Biden is determined to make a big deal about one short-term inflation statistic, and he’s equally determined to pretend another short-term inflation statistic, one that’s critical to families, doesn’t exist. He’s speaking Newspeak, not English.

Public Pension Fund Bail-out

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The Editors’ subheadline illustrates the mistake.

As stock prices fall, public pensions may need taxpayer help.

Quite a large number of public pension funds are in serious financial trouble as a result of their excessively optimistic expected rates of investment returns and the last several weeks of stock market drop.

No, they don’t need taxpayer “help.” What the public pension funds need is to be allowed to fail as a result of their politically-driven, rather than fiscally- or financially-driven, management.

Term Limits

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There are a number of term limits proposals on offer regarding politicians.

Then, as James Sherk pointed out in his Monday Wall Street Journal op-ed,

Career employees fill almost all federal jobs. Only 4,000 of the 2.2 million federal employees are political appointees. Career federal employees consequently do almost all the work of government.

Here’s my term limits offer, this one regarding civil servants/career federal employees—and I’d apply it to Federal contract employees, also.

Term limit all of them—say 10 years—and after that term, they’d no longer be eligible for Federal employment in any guise whatsoever. That won’t actually hurt them: with the valuable experience of those 10 years of government employment under their belts, they’ll have no problem finding employment on the private economy.

One more limit: cap Federal civilian employment at one million, including individual contractors. Only the uniformed military should have no cap, but should remain sized to the threat faced.

Think, too, what that would do for us taxpayers, who are on the hook for those already enormous government pensions.

A limit on initial eligibility: a minimum of 10 years of employment in the private sector, unrelated to government work, in order to be eligible for Federal employment or contract work. Yes, that includes entry level secretaries/administrative assistants.