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Tag Archives: Corruption

Marco Rubio: A Fresh New Face but the Same Old Corruption

Thumbs Up for the Sugar Farmers (But Not You Lowly Taxpayers)

Senator Marco Rubio (R. FL) is charming and eloquent, and is in the running to be the Republican Vice Presidential candidate. His memoir, An American Son, has recently been released to great reviews. All of which proves the old adage, watch what they do, not what they say.

According to the Wall Street Journal, Rubio voted to maintain an “egregious quota program that gouges American consumers to benefit a mere 5,000 or so farmers.”

Are you surprised to learn that Rubio receives hefty campaign contributions from some of those farmers?

-Ed Walker

 

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ET EXTRA UPDATE: Man-Made Global Warming? Apparently Not

Scientists at the CERN particle-physics laboratory in Geneva have recently presented results that tend to confirm that the Big Gorilla affecting the earth’s temperature is — the sun. The results appear to be based on good science, and accordingly have created a commotion amongst the “man is causing global warming” crowd that appears to be motivated more by a lust for government money than the search for the truth. (Also see the earlier ET post, “Globaloney Warming,” and “Global Warming” in the 3rd Quarter 2008 DACI Newsletter).

A nice summary of the reactions to the CERN results can be found here: “Sun Causes Climate Change Shock” by James Delingpole, 27 Aug 2011, The Telegraph

-Ed Walker

 

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Where Is Eliot Ness?

Eliot Ness, the lawman best known for his major role (1927-1931) in taking down Chicago mega-gangster Al Capone, was known to be incorruptible, as were his hand-picked team members (known as “The Untouchables” because they could not be bribed). Ness also helped clean out the highly corrupt Cleveland city government, weeding out over two hundred crooked police officers and public officials.

So why is ET talking about Mr. Ness? Because integrity is essential, not only for upholding the law, but also for making good decisions.

IF THE INFORMATION WE USE TO MAKE DECISIONS IS CORRUPT
THEN OUR DECISIONS WILL BE WRONG

Engineers know this. We simply cannot do our work without accurate and reliable data. If it’s discovered that an engineer has falsified data, or engaged in any other deceptive behavior, they are (in my experience) always fired. Integrity is mandatory for an engineering professional.

One of the most important decisions we make is whom to elect to represent us in our federal and local governments. If politicians seeking office were subjected to an engineering design review, it would be a straightforward process; i.e. the “spinners” (liars) would be detected and rejected. Unfortunately, the method we use to select politicians is hugely corrupted by bad data, and here’s a major reason why:

You may be aware, in watching or reading the news, that politicians (or their allies in the media) often use exactly the same phrases. e.g., “taxing the rich,” “shared sacrifice,” “pay their fair share,” “balanced approach,” “drive the economy over a cliff,” “the extreme right wing,” etc. The reason these phrases sound like they are all part of a chorus is that, well, they are. “Talking points” (emotionally-laden and focus-group tested phrases) are distributed to all like-minded politicos and their friends, who repeat them at every opportunity. The idea is that the average person, upon hearing the same viewpoint expressed by many supposedly independent sources, will conclude that the viewpoint must be true.

But talking points are not based on the search for truth, they are based on the search for votes, and are simply propaganda, sometimes blatant, sometimes subtle. To the extent that the intent is to make you believe something is true when the speaker knows it is not, they are lies. Unfortunately, they are very effective, and they are extremely destructive; not just because they are false and misleading, but because they very often appeal to our worst nature (e.g. encourage us to be envious of those who make more money than we do, a position that is neither logical or moral (see “Is The President’s Reason For Taxing The Wealthy Logical?“; “Is The President’s Reason For Taxing The Wealthy Moral?“)).

Can we clean this up? Are you today’s Eliot Ness? Are you an Untouchable, the man or woman who cannot be bribed, who will always tell the truth? When you hear a politician utter an emotionally-laden smear, will you speak up and challenge them? Will you change careers or come out of retirement and run against the liars, so we can rid them from our government?

Please step forward, we need you.

-Ed Walker

 

 

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Corrupt “Science” Studies

Voodoo Science

Trying to make a decision based on research, such as the correlation between cell phones and cancer? Click here for a good link that points out the shocking collapse of truthfulness in many “science-based” studies, and how to weed out the corrupted ones.

-Ed Walker

 

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A Practical Alternative to Government Regulations

An Engineering Thinking Solution For Protecting The Public

Let’s challenge the assumption that we need the government to protect us, by regulating commerce at all levels.

Why Regulations Are Not Effective (proof by counterexamples):

a. The Food & Drug Administration is supposed to protect us from tainted foods and harmful drugs. It does neither, by its own admission (“FDA Science and Mission at Risk“).

b. The Security and Exchange Commission is supposed to protect us from financial crooks. It doesn’t (remember Bernie Madoff?).

c. Restaurant inspections are supposed to protect us from food poisoning. They don’t (you’ve seen the newspaper reports of folks getting ill at restaurants, all of which are regularly inspected).

Here’s the basic underlying reason why regulations are ineffective: Although the government is never shy about dipping into the pockets of the taxpayer, there will never be enough money to pay for enough inspectors to inspect businesses often enough to eliminate the problems that the inspectors are supposed to find and stop. Why? Because there is no financial incentive built into this open-ended regulatory system. Regulators are not able to make a profit at regulating, unless they are corrupt and take bribes. Unfortunately, such corruption is not uncommon.

A second reason is that the public says, “Yeah, but we have to at least try to stop the problems or they would get completely out of hand. So even though regulations are not completely effective, we’re still better off having the regulations.” This reasoning, however, will not stand up to analysis.

One, it assumes that other factors, such as loss of business and potential lawsuits, are not significant. To the contrary, these free market incentives are very powerful motives for keeping businesses honest, even in the absence of regulations. In fact, for the great majority of honest and competent businesses, government regulations amount to a useless added burden that drives up costs. And these costs are ultimately paid by you, the consumer.

Second, it assumes that there is no better alternative. To answer this, Engineering Thinking offers the following plan:

The ET Plan For Eliminating Costly Regulations

Replace them with the following single requirement:

Each business shall be required to prominently post an easily readable  certificate at the entry to their place of business (or on their web portal, or on their products, etc.)

-A red certificate if they have no liability insurance

-A green certificate if they have liability insurance (as certified by the applicable government accounting agency, with the insurance carrier and amount of coverage noted on the certificate).

Failure to post a certificate, or posting a false green certificate, will be punishable by a minimum jail term and fine.

That’s it. You buy products or services from a “red certificate” business, you’re largely on your own. Its prices might be lower because they carry no insurance, but your risk will be higher if you have a problem. If so, you will still be able to sue, but you will have had fair notice that the business will likely not have enough assets to cover any damages.

The red certificate also allows small start-up entrepreneurs such as taxi drivers or hair stylists to get a foot in the door with clients who are willing to accept lower prices at increased risk. Presently, licensing and regulations often amount to a corrupt system where established wealthier businesses, through contributions to public officials who pass restrictive licensing/regulation laws, effectively block competition by making it too expensive for potential competitors to start a business. This limits consumer choice and drives up costs.

On the other hand, you may prefer to buy products or services from a “green” business. The prices might be somewhat higher, but you will have financial recourse if something goes wrong. Plus, you will be assured of obtaining safer products or services. Why? Because insurance companies do not like to pay for losses. An insurance company will not provide liability insurance to an unqualified person, so if someone claims to be, for example, a medical doctor, they will need to convince the insurance company that they are qualified to practice medicine. Plus, the insurance companies will provide their own ongoing inspections and monitoring to ensure that their clients maintain safety standards.

The new role of the government? To certify/monitor the financial health of insurance companies, to decertify/prosecute those companies that exhibit unethical behavior regarding claims, and to prosecute businesses who operate without an appropriate certificate. All of the licensing and regulatory nonsense simply drops away, because it is no longer relevant. Insurance companies will now provide the regulatory function in a cost-effective fashion.

The advantages of the above red/green plan are numerous: Lowers the cost to the consumer; eliminates the governmental regulatory bureaucracy and related inept  micromanagement; increases consumer choice; offers entrepreneurs a chance to get a business started; eliminates corrupt artificial barriers to competition; and last but not least, enhances consumer safety.

-Ed Walker

 

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More Big Gorilla Insights: High-Speed Rail

Is High-Speed Rail A Good “Investment”?

In an earlier post (“Hunt The Big Gorillas: Climate Change, Birthers, and Chocolate“), the Engineering Thinking concept of the Big Gorilla was described.  As stated in the prior post, if you are weighing several factors while trying to make a decision, and happen to spot one that is so large that all the other factors become negligible by comparison, you have found a Big Gorilla. Then, by focusing only on the Big Gorilla factor, you can quickly make a good decision.

The Big Gorilla is helpful when evaluating claims by politicians who want to spend our money on “investments” such as high-speed rail. In my state of Florida, our governor recently decided not to accept federal funds for development of a high-speed rail system, part of the Obama administration’s national rail plan.

The reaction of many ranged from dismay to anger. “How can the governor give up federal money?” was one common lament. One could argue that federal money is not free, since it  comes out of the pockets of taxpayers, and the federal government is already so much in debt that it doesn’t make sense to borrow yet more money. The politicians and special interests, however, find clever ways to counter such arguments, saying in essence that the spending will pay for itself and be a net benefit. This is generally the argument that governments always use to extract money from taxpayers: we (the government) know best how to spend your money wisely for the common good.

So here’s where a Big Gorilla can brashly step in and clear away the brambles of confusion: If high speed rail (or any project) is going to pay for itself, then it’s highly likely a private business will already be there, implementing the project.

One of the major benefits of a capitalist system is, if there is a need that justifies an investment, then it will be automatically provided by a private business.

Naturally, private firms would love to have public funding for “community” projects such as high-speed rail (sports stadiums are another good example). Having you — the taxpayer — providing funds and eliminating financial risk is a no-lose deal for the private firm. It is also a prime example of capitalism being corrupted by an inappropriate deal between politicians and private businesses. Invariably, such firms will provide donations and other forms of support to assist in the reelection of  those politicians who helped secure the public financing.

Bottom line: always look for a financial connection between the politicians who promote a project, and those who implement the project. Corruption is its name.

-Ed Walker

 

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ET EXTRA: Protecting Your Life: Hip Replacement Corruption

Wright Medical Group receives the ET Shameful Behavior Award

Due to severe hip pain, 42 year old professional umpire Mark Hirschbeck received a hip replacement, using a ceramic joint made by Wright Medical Group and recommended by his doctor, John Keggi.

The joint subsequently shattered, “leading to an infection and four more surgeries that left Hirschbeck permanently sidelined. He later learned that Wright paid tens of thousands of dollars to a foundation Keggi helps run and gave him a trip to a conference in the Bahamas. Keggi recommended the ceramic device over the kinds of implants used in 97 percent of cases.”

-from “New Hips Gone Awry Expose U.S. Kickbacks in Doctors’ Conflicts” by David Armstrong, 11 June 2010 Bloomerg.com

 

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