Chicago Boyz

                 
 
 
 
What Are Chicago Boyz Readers Reading?
 

Recommended Photo Store
 
Buy Through Our Amazon Link or Banner to Support This Blog
 
 
 
  •   Enter your email to be notified of new posts:
  •   Problem? Question?
  •   Contact Authors:

  • CB Twitter Feed
  • Lex's Tweets
  • Jonathan's Tweets
  • Blog Posts (RSS 2.0)
  • Blog Posts (Atom 0.3)
  • Incoming Links
  • Recent Comments

    • Loading...
  • Authors

  • Notable Discussions

  • Recent Posts

  • Blogroll

  • Categories

  • Archives

  • Dusk

    Posted by Jonathan on January 16th, 2017 (All posts by )

     

    Posted in Photos | 2 Comments »

    Lex on Leadership

    Posted by David Foster on January 16th, 2017 (All posts by )

    Neptunus Lex wrote about his “youngster” cruise as a Midshipman attending the Naval Academy.  This is the first of two cruises that a Midshipman takes: during the second cruise, your activities are those of an officer…

    But during youngster year, you sail as a Sailor. You wear dungarees, chip paint, sweep passageways and stand enlisted watches. You sleep in enlisted berthing, eat in the enlisted mess and attempt to get some sense of the men you are supposed to lead in three year’s time, and the lives they live. ..You are tempted to believe that this work is beneath you. You are a Naval Academy midshipman, the cream of the crop. You are special.

    and

    You spend some time in the engineering plant – in a gas turbine ship, an amazingly clean and quiet space. Totally incomprehensible. It resembles nothing at all like the wiring diagrams in your thermodynamics textbooks.

    But there’s a 23 year old Sailor who didn’t go to college, never read Thoreau, and who nevertheless understands it all. He patiently tries to teach you how it works. He speaks to you like one would speak to an elderly person in a nursing home, slowly, simply. You feel patronized, and worse: You realize that you do not entirely understand.

    You are beginning to learn – not about engineering. But about Sailors.

    and

    You’re heading home. Bridge watches now, under the tutelage of 20 year old quartermaster’s mates. Men from small towns that you’ve never hear of, in states you remember dimly from your grade school geography. From farming families, where no one went to college, and no one was expected to. Men who could fix your position to a hundred yards moving at 20 knots across the endless sea using only the stars, a stopwatch and a sextant. Men who could debate the finer points of Strauss and Engels. Men who play classical guitar to an appreciative audience in the 80 man berthing during their time off duty. Who have dreams of their own that they will tell you about, when no one else is listening. Men who would risk their lives to save yours in the midst of a flaming inferno, without hesitating for a moment to reckon the cost, to tally the odds. Men who would die for you, if they had to.

    And you begin to realize that you’re not special because of who you are, the grades you got in high school or where you’re going to college. You’re special because of who you’ve been selected to lead, when your time comes.

    And that, my friends, is the beginning of wisdom.

    Definitely read the whole thing.

    There was a general…can’t remember who it was…who remarked that you will can never be a good officer unless you like Soldiers. (And you can’t fake it for long, he added.) I think it is pretty clear that Lex liked Sailors.

    One way of evaluating any leader…military, political, business executive..is his attitude toward those he leads or wants to lead.

     

    Posted in Management, Military Affairs, USA | 3 Comments »

    You are the someone.

    Posted by Michael Kennedy on January 13th, 2017 (All posts by )

    tonopah shooting

    I posted a bit on the role of the individual and terrorism last year.

    We are a week from the Trump inauguration and there are all sorts of threats by the left to disrupt the inauguration.

    What can individuals do ?

    Tomorrow, my wife and daughter are going to drive to Tucson where we have bought a new home. They plan to leave early and about 10 AM will be passing the Tonopah turnoff on the way to Phoenix. Yesterday, there was quite a bit of excitement there.

    According to Col. Frank Milstead, the director of DPS, the trooper was responding to the shots fired call when he came upon a single-vehicle rollover wreck near Tonopah. A woman had been ejected from that vehicle.

    The trooper immediately stopped and began laying out flares.

    DPS Capt. Damon Cecil said the trooper — a 27-year-veteran of the agency — was ambushed by the suspect when he got out of his vehicle at the scene of the rollover. The trooper was shot and wounded.

    I have not yet heard if the suspect was crazy or what motive he might have had. A passerby stopped and told the suspect to stop his assault on the trooper. The passerby then went back to his car and got his gun. He told the suspect to stop or he would shoot him. He did not stop and the passerby shot and killed him.

    Milstead, speaking from the hospital to which his trooper and taken, said an “uninvolved third party” who was driving by saw the trooper grappling with the suspect and stopped to help, eventually shooting and killing the suspect.

    That civilian, using the wounded trooper’s radio, was the one who alerted DPS to the shooting.

    “To the civilian on the DPS trooper’s radio, if you can hear me, I need you to let me know where the suspect is that got in an altercation with our trooper,” the dispatcher could be heard saying on the scanner.

    “The suspect is … occasionally breathing or stirring. He’s been shot by a passerby,” the man with the wounded trooper’s radio calmly responded. “He’s laying right next to the officer.”

    Arizona has been an open carry state since it was a state. The chief of the Department of Public Safety said his trooper would not be alive but for the passerby with the gun.

    I am leaving a state that has become horribly corrupt since I first came here in 1956. I have much higher hopes for Tucson where we will be living after Monday.

    It has been a hassle but I have high hopes for the new place in Tucson.

    I am taking all my guns. California is Chicago with good weather. My niece who is a nurse at Rush medical center has a friend, another nurse with metastatic breast cancer but still working. Yesterday, leaving work, she was held up. She told the gunman, “Go ahead and shoot me, I have nothing to lose.” He robbed her but did not shoot her.

     

    Posted in Crime and Punishment, Personal Narrative | 8 Comments »

    An Odd Couple, or a Match Made in Heaven?

    Posted by David Foster on January 13th, 2017 (All posts by )

    It is interesting that there is such a high overlap of political opinion between College Professors and Entertainers…the latter category not being known for their intellectual or scholarly tastes, on the average.

    Significance, if any?

     

    Posted in Academia, Film, Politics, USA | 33 Comments »

    Seth Barrett Tillman: This is what balanced news reporting looks like ….

    Posted by Jonathan on January 13th, 2017 (All posts by )

    [Partial automated translation:]

    Tillman also pointed out that many of the public service regulations were not valid for the purpose of preventing possible conflicts of interest for elected deputies [i.e., officials], judges and not least the presidents and vice-presidents. Tillman called [i.e., made reference to] the desired independence of the persons who hold such offices. If presidents had to submit their decisions to an ethics officer, in order to rule out possible conflicts of interest, the latter would gain a very powerful position, although he [i.e., the latter] was not legitimized by any choice [of the people]. Judges and elected representatives enjoy a trust advance.

    This is worth reading in full. Recent US reporting on the Constitution’s Foreign Emoluments Clause, like much recent US reporting on any topic that can be associated with Trump, is tendentious in the extreme.

    See also: Tillman on Trump on RTE (Irish national television) (Seth appears in the video beginning around 5:50, debating a Democratic Party representative. The clip runs about 9 minutes.)

     

    Posted in Law, Media, Politics, Trump, Video | 1 Comment »

    Those With Dead Eyes

    Posted by Sgt. Mom on January 11th, 2017 (All posts by )

    I didn’t watch very much of the horrific YouTube tape of four inner-city “youths” of color tormenting a special needs white kid – a tape that was all over the alternative media last week, and miracle of miracles, even made it to the national media, where incidents of black-on-white violence usually get to be covered, like with a pillow until they stop moving. It goes without saying that if the skin colors of victim and perpetrators had been reversed, just about every other national news story would have been driven off the front page and out of the first twenty minutes of national news for weeks. (Save perhaps one of the Kardashians bursting out of her dress like an overstuffed sausage in the middle of a top-drawer celebrity event.) I know that, you know that, we all are most tiresomely and cynically aware of that. Many would have been the chins tugged, NPR would have been consulting their golden rolodex for the most plummy-voiced commentator with an air of spurious authority over matters racial, CNN anchors and the correspondents of main-line news broadcasters over the world would have been hyperventilating in their efforts to keep up with the currently-fashionable expressions of condemnation of American racism, brutality, racism, cruelty to the ‘other’, white privilege, racism, the center-city of places like Chicago, Baltimore, St. Louis, Detroit (aside – is there anything left in Detroit to burn?) would have been going up in flames … so on and so forth, und so weiter. Read the rest of this entry »

     

    Posted in Chicagoania, Crime and Punishment, Current Events, The Press, Urban Issues | 27 Comments »

    The End of Accounting Book Review – Part One

    Posted by Carl from Chicago on January 8th, 2017 (All posts by )

    Recently I read an excellent book called “The End of Accounting and the Path Forward for Investors and Managers” by Baruch Lev and Feng Gu. I highly recommend this book for investors, analysts, accountants, and those with a general interest in business. The book is very well written and researched in that it:

    1. Describes the current situation in depth
    2. Aligns the situation across an historical context and with relevant research
    3. Makes specific recommendations about how to improve the situation

    If you’d like to read more about this topic on your own (will help to frame out these posts), here is an excellent Wall Street Journal article titled “The End of Accounting” (if the link doesn’t work because you don’t have a subscription you can probably find it elsewhere on the internet). Here is a link from Accounting Today and an interview with the author from CFO magazine.

    The first post in this series is going to be my personal insights and journey in the area of accounting information, financial and investor relations analysts. This context is relevant because I, too, have seen the problems that the authors outline in the series and come up with my own “hacks” to attempt to gain better information and insights.

    I started out my career as an accountant, and I used to help create the footnotes that you see at the end of the financial reports. This wasn’t creative work per se – you would start with last year’s footnote as a template and insert new numbers, unless it was a new requirement, in which case it was a lot of work and we would turn to specialists. At that time (20+ years ago) there were only a few footnotes and the financial statements themselves weren’t that long; you would be able to read from the Chairman and CEO’s letter all the way through to the last footnote in a couple of hours.

    This was also before the internet; we would go into the company library and look at microfiche sometimes to do research or you’d pull up the hard (printed) copy from the files. At that point an annual report was also somewhat of a marketing document; companies put a lot of thought into the cover, for instance.

    At various points in the history of accounting there has been a focus on the balance sheet (assets and liabilities), the income statement (earnings per share and price / earnings ratio) and on cash flows (cash generated from the business). Each of these views are important and have their merits and their drawbacks. The statements were generally the “GAAP” view which focused on financial statement presentation and used taxes at official rates (many companies pay almost nothing in taxes in actuality by deferring them indefinitely) and held assets at historical costs. Both of these assumptions made the financial statements less useful for certain types of companies and industries.

    Read the rest of this entry »

     

    Posted in Book Notes, Business, Capitalism, Economics & Finance | 3 Comments »

    A Great Concert – SRV at Champaign IL 1987

    Posted by Carl from Chicago on January 7th, 2017 (All posts by )

    Dan is much smarter than me and he holds on to all the ticket stubs for concerts and sporting events that he’s attended over the years.  He recently sent me a rug and a coffee mug that he created based on the ticket stub for a special concert we attended almost 30 years ago when we were at the University of Illinois.  The show was Stevie Ray Vaughan at Foellinger Auditorium.

    At the time I was in college and had almost no money.  I saw that Stevie Ray Vaughan was coming to campus and thought I would get up early and stand in line to purchase tickets before class (I rarely got up early in those days when I could avoid it).  Alas, the line was already long and I pretty much gave up right away.  There was a guy who was scalping tickets, however, so I went up to him and bought two tickets for what I remember was about $50.

    The tickets were up front in the first couple of rows as it turned out but way, way on the left side of the stage.  Dan and I got rip roaring drunk before the show (which was the custom, back in the day) and we headed to Foellinger.  Note that Foellinger was a lecture hall and I had many classes in that room – the room had bolted-down desks with the fold out panels that you could write on, so it was kind of odd that they had concerts at that same room (I also saw the punk band Husker Du in that same lecture hall, which seemed even odder).

    Read the rest of this entry »

     

    Posted in Music | 4 Comments »

    Jargon, Proverbs, and Memes

    Posted by David Foster on January 7th, 2017 (All posts by )

    Texan99, writing at Grim’s Hall, discusses the ‘thick fog of buzzwords’ that pervades the educational arena in this country. My comment is that buzzwords and jargon are worst in education, government, and the ‘nonprofit’ world, but increasingly are also pervading the world of business and having a malign effect therein. Many of the posts I see on LinkedIn, for example, represent attempts by people who have never had a creative idea or insight in their lives to posture a deep thinkers and business intellectuals by maximizing their use of the buzzwords du jour.

    Sarah Hoyt draws a distinction between memes and proverbs:

    Of all the ways people have come up with to avoid thinking, I like memes the most.  They are so ridiculously easy to fall into.  You see the words, you see the picture and you go “ah ah, that’s so true.” Even when on a minute’s reflection it makes no sense whatsoever…I think in a way it follows the same pattern that proverbs followed in more ancient cultures…While proverbs were ways not to have to think or short cuts around thinking, they weren’t, by themselves, pernicious…Proverbs are in a way, the encoding of societal wisdom into short cuts to lead people into ways that have worked before…Memes are similar, but you have to remove societal wisdom and put in “the commanding forces of culture and mass media”.  RTWT

    Andre Beaufre, who in 1940 was a young captain on the French General Staff (later a general, he commanded the French contingent in the Suez attack) commented on his impressions when he first breathed the refined air at the General Staff level:

    I saw very quickly that our seniors were primarily concerned with forms of drafting. Every memorandum had to be perfect, written in a concise, impersonal style, and conforming to a logical and faultless plan–but so abstract that it had to be read several times before one could find out what it was about…”I have the honour to inform you that I have decided…I envisage…I attach some importance to the fact that…” Actually no one decided more than the barest minimum, and what indeed was decided was pretty trivial.

    Entirely consistent with Beaufre’s observation was a interchange between the artists Picasso and Matisse which took place in the midst of the collapse of 1940:

    Matisse: But what about our generals, what are they doing?

    Picasso:  Our generals? They’re the masters at the Ecole des Beaux Arts!

    …ie, men possessed by the same rote formulae and absence of observation and obsessive traditionalism as the academic artists.

    The decline in clarity of writing and speaking presages nothing good.  Confucius pointed out that “If language be not in accordance with the truth of things, affairs cannot be carried on to success.”

    See my earlier post When Formalism Kills and the ensuing discussion thread.

     

    Posted in Academia, Business, Deep Thoughts | 5 Comments »

    Night Carrier Operations

    Posted by David Foster on January 7th, 2017 (All posts by )

    Neptunus Lex puts you in the cockpit.  It’s a long series…you can always pull the Eject lever–but I don’t think you’re going to want to.

    Part I

    Part II

    Part III

     

    Thanks to Bill Brandt for locating and posting this.

     

    Posted in Aviation, Military Affairs, War and Peace | No Comments »

    Regina Spektor, Older and Taller (2016)

    Posted by Lexington Green on January 6th, 2017 (All posts by )

    This is beautiful.

    Pop music of the older sort, which reached a peak in the 1960s, is about beauty and joy, and their usual antecedents, youth and love. As these things have faded out of our civilization, pop music turned to the shit we have now. But occasionally some of the old vintage shows up and surprises us and reminds how it can be. And Regina’s lyrics are clever and funny and sweet.

    Here it is live:

    Regina Spektor

    Lyrics below the fold.

    Read the rest of this entry »

     

    Posted in Music | 7 Comments »

    Seth Barrett Tillman: Moving the Overton Window and Student Notes

    Posted by Jonathan on January 6th, 2017 (All posts by )

    When you launch a new idea, its very newness puts it outside of the mainstream. Back in 2007, in an academic article, recess appointments were one of the issues du jour. I wrote that if a President made a recess appointment, a determined Senate could kill the appointment by ending its current session and immediately starting a new one (or by doing so twice, in the case of an intra-session recess appointment). See Seth Barrett Tillman, Senate Termination of Presidential Recess Appointments, 101 Nw. U. L. Rev. Colloquy 82 (2007), https://ssrn.com/abstract=956164 (the first part of a four-part Tillman-Kalt exchange).
     
    I admit that the idea was a bit novel—but it does follow from the text of the Constitution’s Recess Appointments Clause. One student note called my “innovation[] … at once both plausible and absurd ….” David Frisof, Note, Plausible Absurdities and Practical Formalities: The Recess Appointments Clause in Theory and Practice, 112 Mich. L. Rev. 627, 643 (2014).
     
    Two years later, in 2016, what was absurd is now standard fare.
     

    All that the [Republican majority] Senate would need to do [to terminate a purported recess appointment by President Obama of Judge Garland to the Supreme Court] is end its next session by adjourning sine die and Garland’s term would end. This is because, under the Constitution’s Recess Appointments Clause, such appointments terminate at the end of the next Senate session. Adjourning sine die would require the cooperation of the House and a president’s signature, but that would be no obstacle come Jan. 20. In other words, Congress could terminate any recess appointment made by Obama in less than three weeks.

    Read the rest.

     

    Posted in Law, Politics | 2 Comments »

    Costco

    Posted by Jonathan on January 5th, 2017 (All posts by )

    shopping

     

    Posted in Photos | 7 Comments »

    Judith Curry Resigns Her Faculty Position.

    Posted by Michael Kennedy on January 5th, 2017 (All posts by )

    The world of Climate research lost a great academic figure as Judith Curry resigns her tenured faculty position at Georgia Tech.

    She has figured largely in the climate debate as a skeptic in global warming.

    I have retired from Georgia Tech, and I have no intention of seeking another academic or administrative position in a university or government agency. However, I most certainly am not retiring from professional life.

    Why did I resign my tenured faculty position?

    I’m ‘cashing out’ with 186 published journal articles and two books. The superficial reason is that I want to do other things, and no longer need my university salary. This opens up an opportunity for Georgia Tech to make a new hire (see advert).

    The deeper reasons have to do with my growing disenchantment with universities, the academic field of climate science and scientists.

    She has endured considerable abuse from the alarmist side. She is called a “heretic” in the alarmist circles.

    over the past year or so she has become better known for something that annoys, even infuriates, many of her scientific colleagues. Curry has been engaging actively with the climate change skeptic community, largely by participating on outsider blogs such as Climate Audit, the Air Vent and the Black¬board. Along the way, she has come to question how climatologists react to those who question the science, no matter how well established it is. Although many of the skeptics recycle critiques that have long since been disproved, others, she believes, bring up valid points

    So, she might have a point. However:

    Read the rest of this entry »

     

    Posted in Education, Environment, Politics, Science | 6 Comments »

    What are the Limits of the Alexander Analysis?

    Posted by David Foster on January 3rd, 2017 (All posts by )

    Edward Porter Alexander, who was Lee’s artillery commander at Gettysburg, became a railroad president after the war. His experiences in running a major transportation system probably had something to do with the evolution of his thoughts regarding state’s rights:

    Well that (state’s rights) was the issue of the war; & as we were defeated that right was surrendered & a limit put on state sovereignty. And the South is now entirely satisfied with that result. And the reason of it is very simple. State sovereignty was doubtless a wise political instution for the condition of this vast country in the last century. But the railroad, and the steamboat & the telegraph began to transform things early in this century & have gradually made what may almost be called a new planet of it… Our political institutions have had to change… Briefly we had the right to fight, but our fight was against what might be called a Darwinian development – or an adaptation to changed & changing conditions – so we need not greatly regret defeat.

    I think a lot of the belief in unlimited globalization is implicitly driven by an extension of Alexander’s argument, with the jet plane, the container ship, and the Internet taking the place of the railroad, steamboat, and telegraph.

    How far does this extension make sense?  If the ability of locomotives could pull trains across the United States in three days meant that full sovereignty for individual states was obsolete, does the ability of jet airplanes to carry passengers and freight anywhere in the world in less than one day similarly imply that full sovereignty for nations is obsolete?

    I suspect that most people at this site will not agree with a transportation-based argument for the elimination of national sovereignty.  So, what is valid and what is invalid about Alexander’s analysis, and what are the limits for the extension of its geographical scope?  Discuss.

     

    Posted in Deep Thoughts, History, Political Philosophy, Tech, Transportation, USA | 22 Comments »

    Autos and Disruption

    Posted by Carl from Chicago on January 1st, 2017 (All posts by )

    Prior to moving to the West Coast, I had little need for a car because I walked and / or took public transport to work (or a cab if I was lazy, back in the days when you could hail a cab on the street).  Thus I typically invested the minimum amount I could in a reliable car that could fit 4 passengers with a full size trunk and also squeeze into a narrow parking garage.

    The cars that “fit the bill” for me were the older model Nissan Altima which I drove for a decade and then a Jetta which I picked up in 2011.  Each of these cars cost about $17,000 “out the door” and contained a reasonable level of equipment (the Altima was my first car with air bags, the Jetta was my first car with ABS and traction control) – they weren’t completely stripped down models with manual transmission, for instance.  These cars have both turned out to be highly reliable autos – and the old Nissan Altima is still driving today, almost 20 years later, as a starter car in my extended family.

    The average age of a car on the road today is 11.5 years (nowadays you don’t even have to “link” to sources – Google just brings in the data from Wikipedia as a search response when you ask a common question) and that seems long to me.  For every new car on the road, for instance, there is a late ’90s model still driving to offset it in order to get back to an average of 11.5 years.

    My theory today is that the total package of “functionality” or “value” that you could obtain from a new Jetta for $17,000 would be comparable to autos that cost far more for 99% of the scenarios in which you would plausibly use that auto.  These scenarios include 1) commuting to work 2) running errands around town 3) going on a trip and putting luggage in the trunk.

    That’s not to say that there aren’t scenarios where it doesn’t make sense to have a more powerful or capable auto.  In Oregon we went to visit a friend who lives up in the hills and I had 4 people in the car and gravel had been newly laid on an uphill slope (which, as it turns out, means that it is very slippery).  As a result our car couldn’t make it up the hill and we slid sideways into a ditch and had to have a friend hook up a rope and give us a pull from their big pickup truck to get us back on the road.  If I lived up there, for instance, then this car would be completely inappropriate.  But that isn’t a common “use case” for my auto.

    When you look at the “true cost” of owning an auto, there are a lot of factors to consider, and whole web sites to calculate it in various ways.  Instead, I am going to make the general statement that if you buy a new car at around the $17,000 price point and drive it for perhaps 7-8 years before selling it you are probably going to pay about $150 / month for that car (net of what you receive on resale).

    Read the rest of this entry »

     

    Posted in Economics & Finance, Personal Finance, Transportation | 23 Comments »

    Updating Apple Products Part II

    Posted by Carl from Chicago on December 30th, 2016 (All posts by )

    In a recent post I discussed the spate of updates that have occurred in my Apple products including a new iOS for my work and home phone, a new iOS for my iPad, a new iOS for my Apple Watch, and a new operating system for my Mac.

    Apple Watch

    Let’s start with the Apple Watch. The Apple Watch is an evolutionary product and the jury is out on whether or not it will be a giant part (“move the needle”) of the Apple portfolio. Personally, I find the Apple Watch to be very useful because I can get notifications when big events occur (for instance, I was the first to say “Prince is dead” in a big meeting) or just to be reminded when texts happen and I don’t have my phone on. It also is good for sports score notifications and tracking workouts. Finally, you can also always know if someone is calling you even if the ringer on your phone is off, and you can answer it “Dick Tracy Style” on your wrist (if you want to annoy everyone around you).  Here is my review of the Apple Watch from 2015 when I bought it.

    Apple Watch iOS 3.0 is OK. The watch seems a bit faster. They made it easier to utilize some popular apps like the workout app and incorporated some other improvements here and there. I can’t take advantage of all the iOS 3.0 features because my older Apple watch doesn’t have some of the features like the built in GPS that comes with the new watch.

    Mac OS Sierra

    There has been a lot of noise in the press about Apple not updating their core computers and even letting Microsoft steal their thunder with the new Surface tablet.  However, Apple deserves immense credit for making their OS upgrades work effectively even on older model machines – for instance the Macbook that I am writing this blog post on is from 2011 (my friend Brian installed an SSD and more memory which I documented here).

    The most important elements from my perspective are the continued integration of the Mac OS with the iPad and iPhone devices.  With this upgrade I now can easily share a single photo stream (which will get its own post since it is so complicated), use Apple music easily across devices, and use key apps like messenger, notes, ibooks, contacts and Facetime (mostly) seamlessly.  Siri also works on the Mac now which is fine for most people but I don’t use Siri much so it is irrelevant to me.

    Read the rest of this entry »

     

    Posted in Tech | 9 Comments »

    This is Why We Can’t Make Nice Things

    Posted by David Foster on December 30th, 2016 (All posts by )

    A positive review of General Electric stock points out that the company is less exposed to the oil market than it was prior to the Baker Hughes spinoff…and then goes on to say:

    Gone too is the iconic firm’s appliances business, which was sold to Chinese firm Haier. This is really a progression of the economic cycle. While folks like President-elect Donald Trump and financial provocateur Peter Schiff lament that Americans just don’t make stuff anymore, at a certain point, advanced economies should outsource physical work to less-advanced countries. It’s not so much a matter of ability as it is financial efficiency.

    Does this writer believe that GE should also divest the jet engine business, the power generation business, and the transportation (locomotive) business?  All of these businesses make physical things, and make substantial amounts of those physical things in the US.

    The idea that manufacturing is devoid of intellectual content and hence unworthy of advanced economies is fallacious and has done serious harm–see my post Faux Manufacturing Nostalgia.  Happily, this attitude has turned around substantially since I wrote the linked post..to the point that manufacturing is being practically over-romanticized…but islands of the “who needs it?” view still exist.

    GE’s reasoning for divesting Appliance seems to have been centered on a desire to focus the company on business-to-business markets rather than consumer markets and, and also, I think, on a perception that there was not sufficient room in the appliance world for product differentiation and a technology edge.  “Technology edge,” rightly understood, includes the complexity/difficulty of manufacturing something, not just the intellectual property embedded in the product itself.  It certainly did not reflect any conclusion that manufacturing is inherently a low-value function.

    It would be silly to argue that a computer programmer in a bank is a “knowledge worker” and a programmer in manufacturing is not.  It would be equally silly to argue that a bank branch manager is inherently performing a more highly-skilled job than a shift supervisor in a factory, or that a first-level customer service rep for Amazon is performing a more advanced kind of work than an assembly line worker, or that an operations research expert doing inventory studies for a manufacturing firm is less of a knowledge worker than his equivalent doing inventory studies for Target.  But this is implicitly the argument that many of the ‘we don’t need manufacturing here’ crew have been making.

    This dismissive attitude toward a vast and complex industry which supports millions of people represents one more example of the constellation of attitudes against which many people rebelled when choosing to vote for Donald Trump.

     

    Posted in Business, Economics & Finance, Tech | 7 Comments »

    Seth Barrett Tillman: Ed Kilgore, At NY Mag’s Daily Intelligencer, Asks President Obama To Use Recess Appointments: Kilgore’s Strategy Won’t Work & This Is Why

    Posted by Jonathan on December 29th, 2016 (All posts by )

    Kilgore argues that the only route the Republicans would have to remove these recess appointees* would be through slow moving lawsuits which would take months, all the while leaving these appointees in place during the first year of Trump’s new administration. See Kilgore (“TR made 193 recess appointments at the beginning of 1903, and while the legality of the action has been questioned, it has never been clearly overturned. If Obama were to follow this procedure, it would take extensive litigation to reverse it, and it might stand after all.”). Kilgore is entirely wrong. No lawsuits would be needed—just two swings of the Majority Leader’s gavel. Just two swings and the recess appointees would be out.**

    Read the rest.

     

    Posted in History, Law, Obama, Politics | 1 Comment »

    Obama’s “Nuclear Renaissance” Receives Its Final Obituary with Toshiba’s Write Down

    Posted by Carl from Chicago on December 28th, 2016 (All posts by )

    Back in 2009 at the start of Obama’s first administration he proclaimed that a “nuclear renaissance” was coming. Although I am a fan of nuclear power, I knew right away that this effort was doomed to failure by a lack of structural incentives in the USA and the ability of NIMBYs and lawyers to drag out and kill any project by a thousand cuts. I wrote that it was doomed here and summarized the players here.

    Yet 2 companies plowed along with their nuclear projects – Southern Company (big in Georgia and the south) and SCANA (a South Carolina utility), mainly because their state rate environment was favorable and allowed them to include the cost of assets in their “rate base” rather than being forced to price energy at something close to market prices. Eventually those that pay for electricity in these jurisdictions are going to be soaked with the enormous costs of these plants and / or the finances of Southern Company and SCANA will be seriously impacted. Southern Company has a market cap of around $50B and SCANA has a market cap of around $10B. For context, the Southern Company nuclear project is currently 3 years behind schedule and $3B over budget and likely to cost up to $20B (although costs are borne by many parties, not just Southern Company) and the SCANA project is likely to cost up to $12B (although not all borne by SCANA).

    These nuclear projects, already non-competitive due to price declines in natural gas (caused by fracking), became even MORE non-competitive as their completion dates were extended and costs ballooned due to inevitable and completely predictable delays. The history of nuclear power projects is littered with failed efforts and those that were completed often had huge cost overruns, especially those completed near the “tail” of the initial nuclear building effort which petered out in the ’80s.

    Now Toshiba is being hit with part of the overrun costs. Their stock recently went down 20% (the most that it can fall in a single day trading session) with discussion of potentially billions of dollars in write downs tied to their work on nuclear power projects.

    What is sad about all of this is that the debacles that will hit rate payers in the south (predominantly Georgia and South Carolina) and / or shareholders were completely predictable, although the situation could get even worse if delays stretch on indefinitely and the plants are never even completed (which is always possible in the litigious USA). As the current administration leaves their utterly failed nuclear policy should be something that they accept responsibility for, as well as their ameteur-ish ignorance of history and the predictable consequences of these sorts of mega-projects (in our current legal and regulatory environment). However, I highly doubt that will occur.

    Cross posted at LITGM

     

    Posted in Energy & Power Generation | 6 Comments »

    How Long?

    Posted by Sgt. Mom on December 27th, 2016 (All posts by )

    Hail, thou ever blessed morn,
    Hail redemption’s happy dawn,
    Sing through all Jerusalem,
    Christ is born in Bethlehem.
    Edward Caswall, 1858 – Hymn for Christmas Day (Also known as See Amid the Winter Snow)

    I have a deep and abiding fondness for certain choral music; Christmas carols or even sort-of-Christmas carols, especially the English ones which weren’t part of my growing-up-Lutheran tradition. That tradition tended more towards the Germanic side of the scale, save for hymns by the Wesleys and Isaac Watts. The English Victorians … sufficient to say that a lot of such hymns and carols were pretty ghastly as poetry, music and theology combined, but time has done some sifting out and the best of them usually turn up in seasonal presentations like the Festival of Nine Lessons and Carols from Kings’ College, Cambridge. I make a point of listening to the BBC broadcast of it, every year on Christmas Eve morning. I’ve become so very fond of some carols I’ve heard through that broadcast that I’ve made a point of searching out YouTube recordings of them to post on my various websites. All In the Bleak Midwinter is one, Once in David’s Royal City is another – and See Amid the Winter Snow is another still. (Link here) I’ve replayed the video so often in the last few days, I have finally learned the melody by heart … and the chorus haunts me this particular Christmas. Sing through all Jerusalem, Christ is born in Bethlehem!

    It’s not just that the UN has resolved, in the face of an abstention by the US, to back a claim by the Palestinians to Jerusalem, or that a Jewish infant born in Bethlehem these days might be a hate crime in progress according to pro-Palestine activists. Once a town largely Christian, most local Christians have been chased out, just as Jews and Christians have been from practically everywhere else in the Islamic world. Well, that’s the Middle East for you, everywhere outside of Israel. The ethnic-cleansing of everyone but Muslims of whatever flavor goes on, unabated in the Middle East accompanied by a chorus of indifference sung by the Western ruling class, who seem intent on an Olympic-qualification level of virtue-signaling.
    Read the rest of this entry »

     

    Posted in Christianity, Civil Liberties, Civil Society, Current Events, Europe, France, Germany, Holidays, Immigration, Islam, Middle East, Religion, Terrorism | 50 Comments »

    Seth Barrett Tillman: This Is What I Think And This Is What Other People Think Scholarship Looks Like

    Posted by Jonathan on December 27th, 2016 (All posts by )

    Seth points out differences in the ways in which different legal scholars characterize arguments that challenge conventional legal wisdom. Worth reading.

     

    Posted in History, Law | 2 Comments »

    Arab Coffee

    Posted by Jonathan on December 27th, 2016 (All posts by )

    Arab Coffee

    Cafe Najjar is the official Arab/Turkish coffee of the Chicago Boyz blog.

     

    Posted in Photos, Product Reviews/Endorsements | 3 Comments »

    Christmas 2016

    Posted by David Foster on December 24th, 2016 (All posts by )

    Newgrange is an ancient structure in Ireland so constructed that the sun, at the exact time of the winter solstice, shines directly down a long corridor and illuminates the inner chamber. More about Newgrange here and here.

    Grim has an Arthurian passage about the Solstice.

    Don Sensing has thoughts astronomical, historical, and theological about the Star of Bethlehem.

    Vienna Boys Choir, from Maggie’s Farm

    Lappland in pictures…link came from the great and much-mourned Neptunus Lex

    Snowflakes and snow crystals, from Cal Tech. Lots of great photos

    In the bleak midwinter, from King’s College Cambridge

    Rick Darby has some thoughts on the season. More here.

    A Christmas reading from Thomas Pynchon.

    The first radio broadcast of voice and music took place on Christmas Eve, 1906. (although there is debate about the historical veracity of this story)

    An air traffic control version of  The Night Before Christmas.

    Ice sculptures from the St Paul winter carnival

    O Come, O Come, Emmanuel, sung by Enya

    Gerard Manley Hopkins

    Mona Charen, who is Jewish, wonders  what’s going on with the Christians?
     

    Posted in Christianity, Holidays, Poetry | 2 Comments »

    A Christmas Eve Story: Father Christmas and the Provost

    Posted by Sgt. Mom on December 24th, 2016 (All posts by )

    (This is a short-story version of an episode in Adelsverein: The Sowing, which I reworked as a free-standing Christmas story a good few years ago, for a collection of short stories. The scene; the Texas Hill country during the Civil War – a war in which many residents of the Hill Country were reluctant to participate, as they had abolitionist leanings, had not supported secession … and had quite enough to do with defending themselves against raiding Indians anyway.)

    It was Vati’s idea to have a splendid Christmas Eve and he broached it to his family in November. Christian Friedrich Steinmetz to everyone else but always Vati to his family; once the clockmaker of Ulm in Bavaria, Vati had come to Texas with the Verein nearly twenty years before with his sons and his three daughters. “For the children, of course,” he said, polishing his glasses and looking most particularly like an earnest and kindly gnome, “This year past has been so dreadful, such tragedies all around – but it is within our capabilities to give them a single good memory of 1862! I shall arrange for Father Christmas to make a visit, and we shall have as fine a feast as we ever did, back in Germany. Can we not do this, my dears?”
    “How splendid, Vati! Oh, we shall, we shall!” his youngest daughter Rosalie kissed her father’s cheek with her usual degree of happy exuberance, “With the house full of children – even the babies will have a wonderful memory, I am sure!” Her older sisters, Magda and Liesel exchanged fond but exasperated glances; dear, vague well-meaning Vati!
    Read the rest of this entry »

     

    Posted in Arts & Letters, Deep Thoughts, Diversions | 3 Comments »