“Are You The Man That Turns Off The Power?”


When I first started working after college I was an auditor for a “Big Six” public accounting firm. Through the (bad) luck of the draw, I was assigned to work on utilities and government institutions. Since utilities are distributed across the United States geographically (unlike finance which is concentrated in New York, for example) I had to travel across the midwest in order to serve my clients.

On one of my first trips I sat next to a couple, a mother and a young son. After a while we started talking a bit on my way to Sioux City Iowa (to see Iowa Public Service, which has since been bought up by Berkshire Hathaway as part of MidAmerican Energy). They asked me why I was traveling to Iowa (a good question, actually) and I said that I was an accountant working for the local power company. The child piped up and said:

“Are you the man who turns off the power?”

The mother was embarrassed and we immediately changed the subject but clearly their family had their power cut off for non-payment at some point in the past and that is how the child knew of the power company. We had some stilted conversation from then on but the encounter has stuck with me for years.

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Jim Bennett on Sarah Palin

I have been as guilty as anybody of indulging in Palin-Mania, or Palin Obsessive Disorder. Like most people, my thinking has been overly fact-lite, if not fact-free, about Gov. Palin.

So, as the need to think about other things asserts itself, it is a relief to read a brilliant summary from Jim Bennett based on facts and history, which presents Gov. Palin’s story as a coherent narrative.

Bennett’s article in the Telegraph is the single best thing yet written by anybody about who Sarah Palin is and what she has accomplished.

Most news reports and other commentary, both fair and foul, have dwelt on “exotica – the moose shooting, her Eskimo husband” without comprehending or explaining how “a woman can go from being mayor of a town of 9,000, to governor, to prospective VP within the space of a few years.”

Bennett explains how Palin worked her way up in a rugged political environment, how she built her political base, and how she came to realize “that Alaska had the potential to become a much bigger player in global energy politics.”

As with most poor, distant places that suddenly receive great natural-resource wealth, the first generation of politicians were mesmerised by the magnificence of the crumbs falling from the table. Palin was the first of the next generation to realise that Alaska should have a place at that table.
 
Her first target was an absurd bureaucratic tangle that for 30 years had kept the state from exporting its gas to the other 48 states. She set an agenda that centred on three mutually supportive objectives: cleaning up state politics, building a new gas pipeline, and increasing the state’s share of energy revenues.

She proceeded to execute this strategy, as chairman of Alaska’s Oil and Gas Conservation Commission, and as Governor.

Far from being a reprise of Mr Smith Goes to Washington, Palin was a clear-eyed politician who, from the day she took office, knew exactly what she had to do and whose toes she would step on to do it.
 
The surprise is not that she has been in office for such a short time but that she has succeeded in each of her objectives. She has exposed corruption; given the state a bigger share in Alaska’s energy wealth; and negotiated a deal involving big corporate players, the US and Canadian governments, Canadian provincial governments, and native tribes – the result of which was a £13 billion deal to launch the pipeline and increase the amount of domestic energy available to consumers. This deal makes the charge of having “no international experience” particularly absurd.

The prospect of Palin in Washington has caused “her enemies in Alaska” to break out in a cold sweat, according to Bennett, “at the thought of Palin in Washington, guiding the Justice Department’s anti-corruption teams through the labyrinths of Alaska’s old-boy network.”

Obama would not be the first person who has gone down to defeat underestimating Mrs. Palin.

Read Bennett’s piece for the rest of the details.

UPDATE: Two responses by Helen Szameuly, here and here are very much worth reading.

UPDATE 2: A balanced, fair, unemotional assessment of Palin’s track record as mayor and governor, on economic issues. (Via The Right Coast.) See also this equally good one contrasting Palin and Obama on ethics and reform. Both from CATO. Both are nice companion pieces to Bennett’s article.

UPDATE 3: Michael Barone weighs in with a capsule history of Obama’s career as a community organizer, and his initial entry into politics. His conclusion, we need not treat this part of Obama’s career with “reverence”.

Barone is also astute to observe that community organizing only makes sense, if it ever does, where the political process does not work. A one-party machine-run city is the perfect example, and Chicago is the epitome of that. Alinsky was the doppelganger of the first Mayor Daley, for a reason. Most places, if there are rotten services or whatever, that is an invitation to a political challenge by the “out” party. Only where that political option is foreclosed does it make sense to resort to guerilla activity on the Alinsky model, a/k/a “organizing”.

Energy, Productivity, and the Middle Class

It being Labor Day, there will doubtless be many political speeches and newspaper articles touching on the rise of the American middle class and crediting this rise to labor unions and perhaps also to FDR’s New Deal.

I don’t mind giving some of the credit to unions. But the primary driver of middle class affluence has been the availability of plentiful and low-cost energy…especially in the form of electricity…coupled with a whole array of productivity-increasing tools and methods, ranging from the horse-drawn harvester to the assembly line to the automated check sorting machine.

The middle class affluence enabled by these factors is gravely threatened is gravely threatened by the Democratic-“progressive” hostility toward energy production and distribution in all practical forms, and by the endless set of productivity-sapping policies advocated by the same group of people.

Over the long term, or even the medium term, a nation cannot consume more than it produces. It doesn’t matter how aggressive the unions are, or what tax policies are in place, or how much Oprah-like sympathy for the unfortunate is exuded by politicians–if you harm the productive power of a nation, its average standard of living is going to go down.

Low-energy, low-productivity societies can support a very wealthy elite, and have historically often done so, but they cannot support a broadly affluent middle class.

Jim Bennett’s comments on Gov. Palin

Jim has been quiet lately, and his insights have been missed.

His analysis is too good to be left buried in the comments:

The McCain-Palin campaign needs to address the experience question head-on, and they need to do so by working from Palin’s strengths, not by sweeping objections under the rug. This should be done by announcing several areas in which she would take the lead within the administration, areas where her existing strengths give her plausibility. Three areas suggest themselves immediately.
 
1. North American energy and trade policy. The most important substantive accomplishment of her administration has been the natural-gas pipeline deal with Canada, that she was a key figure in brokering and pushing. The Financial Times gave her credit for this accomplishment weeks ago, when nobody thought she had a chance for the VP slot. Have her make a speech as soon as possible before a major energy or trade meeting in Canada, where she will give a preview of the McCain-Palin policy for energy cooperation with Canada. Cite her pipeline experience frequently. Get in digs at Obama for playing the anti-NAFTA card in the primaries, and against Biden for having voted against the pipeline when it was first an issue decades ago. Play up her experience as an Arctic governor and show sympathy for Canada’s Arctic issues, including the undersea resource claims we and Canada will soon be disputing with Putin. Maybe follow that with a trip to Iqaluit, being sure to bring her husband. Up there, talk about America and Canada’s common Arctic and Inuit/Eskimo heritage.
 
Obama has done nothing as important or complex, or as international, as the pipeline deal. Not to mention Biden.
 
2. Middle-class/blue-collar issues. The Republicans need to hone their “Sam’s Club” agenda. She’s the person to do it. Adopt the Romney proposal for a realistic (at least 10K per kid) child credit, and be sure it’s deductible against parroll tax. And pledge to revisit and reform Joe Biden’s (D-MNBA) bankruptcy bill, making sure to repeat ten zillion times that it was Biden’s baby. She can take credit for convincing McCain to revisit his previous position and decide it needs reforming.
 
3. Native community issues. Not only are her husband (and kids) part-Eskimo, Palin had to deal costantly with the powerful “native corporations” as governor. The Bureau of Indian Affairs and its programs are an ongoing national disgrace. Let Palin head up a task force to entirely revamp [programs for native communities. This might sway enough votes in New Mexico to swing the state their way, and would count in several other Western states that are leaners.
 
So here are three “mules” for Sister Sarah to ride – – to office.

Jim also added this:

Here’s a story on Bloomberg from Aug. 1 about the pipeline deal, before the media got the talking points from the Obama campaign to pretend that Palin has accomplished nothing significant:

Fantasy Energy

Megan McArdle  [h/t Instapundit] writes:

There’s a lot of optimism on both the center-left and the right that all we really need to do to tackle the problem of global warming/peak oil is throw a hell of a lot of money at the problem, and presto!…Yes, we found petroleum to replace whale oil.   This does not therefore mean, as night follows day, that we will find something to replace petroleum.   We will find something to replace petroleum if there  is  something that can replace petroleum.   There might not be.

Well, actually, there is always a new source of energy to replace any old energy source. It just might not be the energy source we  fantasize  about.  

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