President Bush made a big push for alternative fuels in his State of the Union speech Tuesday night, calling on Americans to reduce gasoline consumption by 20% over 10 years. And as soon as the sun rose on Wednesday, he set out to tour a DuPont facility in Delaware to tout the virtues of “cellulosic ethanol” and propose $2 billion in loans to promote the stuff. For a man who famously hasn’t taken a drink for 20 years, that’s a considerable intake of alcohol.
A bit of sobriety would go a long way in discussing this moonshine of the energy world, however. Cellulosic ethanol–which is derived from plants like switchgrass–will require a big technological breakthrough to have any impact on the fuel supply. That leaves corn- and sugar-based ethanol, which have been around long enough to understand their significant limitations. What we have here is a classic political stampede rooted more in hope and self-interest than science or logic.
The Sarajevo Moment
A PROPOS the Sarajevo moment, which might bring to an end this latest of age of globalisation.
It wouldn’t be a political killing, I imagine, since there is no one figure whose death at the hands of a deranged assassin would turn the great powers against one another. But a terrorist strike against a cluster of essential Saudi oil installations might have the necessary economic and geopolitical repercussions.
Whatever the Sarajevo moment might be, everyone seems to be talking about it. As if we know in our hearts that these asset prices are too good.
Rio Grande River: Big Bend National Park
I’m Opposed to a $30M Wisconsin Medical Records Subsidy
A proposal by Gov. Jim Doyle to spend $30 million to help fund electronic medical records systems is just a “drop in the bucket” of what it would take to enable all of the state’s health-care providers to access patients’ histories at the push of a button, medical experts said.
Doyle said Thursday that he wants to create a $20 million grant program to help nonprofit organizations transition from paper documents to technology he says will reduce medical errors and improve quality.
Another $10 million in tax credits would go to for-profit hospitals and doctors to help cover the cost of their transition.
Cullen’s article rightly points out that the “$30M is a drop in the bucket” in a system with billions flowing through it (I don’t think they need a subsidy). Creating another layer of tax redistribution (from payroll and income taxes and fees) for state incentives and health care system funding, given the many other state spending priorities, not to mention the $1.6B structural deficit, is misquided. I wonder who is behind this?
Link Hoewing discusses electronic medical records from Verizon’s perspective (Verizon is installing Fiber broadband to the home in many markets, unlike AT&T).
Planes, Trains and Automobiles
Michelle Maynard speaks with new Ford CEO Alan Mulally. Interesting.
Wikipedia
I use and link to Wikipedia from time to time. Dave notes some ongoing controversy regarding the creation and maintenance of Wikipedia data, including Microsoft’s offer to pay an Australian blogger to edit pages for them.
Sad, But True: Antitrust & AT&T
Steven Colbert on the reconstituted AT&T. We still don’t have any prospects of fiber to the home in Madison, much less around the state.
Interesting Discussion on China
When will the Chinese middle class push for greater political freedom to match growing economic freedom?
The $64,000 question. The extent of the ideological bankruptcy of the Chinese Communist Party is not widely understood in the U.S. It claims single party rule because it is the trustee of the 1949 Communist revolution governing democratically for China’s workers and peasants. Its problem is that communism is in reverse worldwide, and under the doctrine of the “Three Represents” invented by Jiang Zemin, the party now accepts that class war is over and that it must represent all Chinese society. In which case: Why no accountability? Change came in the Soviet Union with the fifth generation of leaders; the fifth generation of leaders succeeds Hu Jintao in 2012. I don’t expect any change until after then, but my guess is that sometime in the mid-to-late 2010s, the growing Chinese middle class will want to hold the Chinese official and political class to account for how they spend their taxes and for their political choices.
The Wall Street Journal posted an email interview with Friedman which included a few words on China.
Requiem for Magic Bullets
The golden age of antibiotics began in 1944 with the widespread use of penicillin in Europe, which saved many thousands of lives during World War II. But the first sign that this new era of easily treatable bacterial infections would not last appeared just a couple of years later, with the emergence of penicillin-resistant strains of Staphylococcus aureus, a bacterium responsible for a wide variety of ailments, from skin infections to fatal pneumonia.
By 1950, 40 percent of the staph strains in hospitals had already become immune to the drug. Now a form of staph known as methicillin-resistant Staph aureus, or MRSA, which is resistant to nearly every known antibiotic, is responsible for the majority of tens of thousands of deaths a year from infections picked up in U.S. hospitals alone.
Bacteria develop immunity to antibiotics by rapidly evolving genetic defenses against the drugs or by acquiring pieces of DNA and RNA from organisms that are already resistant — even from other bacterial species. Bacterial pathogens that have learned how to survive in hospitals have an evolutionary advantage, because there are plenty of other resistant organisms in the environment from which they can borrow resistance factors.
The Etiquette of Bribery
GIVE people power and discretion, and whether they are grand viziers or border guards, some will use their position to enrich themselves. The problem can be big enough to hold back a country’s development. One study has shown that bribes account for 8% of the total cost of running a business in Uganda. Another found that corruption boosted the price of hospital supplies in Buenos Aires by 15%. Paul Wolfowitz, the head of the World Bank, is devoting special efforts during his presidency there to a drive against corruption.
For most people in the world, though, the worry is not that corruption may slow down their country’s GDP growth. It is that their daily lives are pervaded by endless hassles, big and small. And for all the evidence that some cultures suffer endemic corruption while others are relatively clean, attitudes towards corruption, and even the language describing bribery, is remarkably similar around the world.
Rich Westerners may not think of their societies as plagued by corruption. But the definition of bribery clearly differs from person to person. A New Yorker might pity the third-world businessman who must pay bribes just to keep his shop open. But the same New Yorker would not think twice about slipping the maître d’ $50 to sneak into a nice restaurant without a reservation. Poor people the world over are most infuriated by the casual corruption of the elites rather than by the underpaid, “tip”-seeking soldier or functionary.
Indeed, in the world’s richest economy, what many see as simple bribery is an integral part of lawmaking. In Washington, DC, it is accepted that a lobbyist’s generous campaign contribution to a crucial congressman may help to steer some spending to the lobbyist’s client.
And… earmarks?