May 16, 2008
Friday Musings
So, did you know that Taxi Driver is the greatest wealth-creating movie of all-time?
Speaking of movies, actor Mickey Rourke has been down on his luck for the past several years, but he sure had a good run of movies in the 1980's.
Finally, singer-songwriter Hayes Carll, fresh off the release of his new CD, returns home to The Woodlands for a Friday night show at Dosey-Doe. I'll be there, so come by and say hello!
Posted by Tom at 12:01 AM | Comments (0)
May 15, 2008
Houston's best 19th hole
Although Jack Burke's venerable Champions Cypress Creek Golf Course may arguably be a bit overrated, this Ron Kapriske/Golf Digest article rates the Champions Men's Locker Room Bar as one of the 50 best 19th holes in the country:
Sit back and listen to Jackie Burke tell stories, especially the one about Jimmy Demaret at the bar in his birthday suit; the bar inside the locker room is three-sided to allow for "cross-counter shouting matches"; wood paneling is a "throwback to the country-club days of the 1960s."
I can attest that having the opportunity to listen to a couple of Burke stories is certainly worth a trip to the Champions Men's Locker Room. A close second to the Champions Men's Locker Room Bar among the best of Houston's 19th holes -- Lochinvar Golf Club's Clubhouse.
Posted by Tom at 12:01 AM | Comments (0)
May 14, 2008
The Chron's continuing soccer stadium drumbeat
In this post from last week on the proposed downtown soccer stadium, I observed that the Chronicle should simply declare that it supports the public financing of the stadium and quit attempting to rationalize that such financing makes economic sense.
Well, based on this Glenn Davis/Chronicle column, it looks as if the Chronicle took me up on my suggestion.
Actually, Davis' column is about as good a rationalization for the public financing of the soccer stadium as you will come across. He eschews the economic-benefit ruse and instead contends that it's worth spending public money on the Dynamo because the club represents the city well internationally, particularly in Mexico and Central America. On the other hand, Davis stretches by suggesting that "the team deserves its own stadium [because it] would elevate the sport and city even more in the eyes of the world."
Just to be clear -- there is nothing inherently wrong with public financing of sports stadiums. Davis might even have a valid point that it's worth using public funds to invest in the Dynamo to bolster Houston's image internationally, although it would seem that at least some consideration should be given to alternative investments before coming to the conclusion that financing a soccer stadium is the best way to achieve that goal. But let's at least have truth in advertising during the remaining public discussion on this issue -- the marginal economic benefit of a soccer stadium to the community is simply not a good reason to finance it publicly.
Posted by Tom at 12:01 AM | Comments (0)
May 13, 2008
Ignoring the noise from next door
The problems that the obsolescent U.S. drug prohibition policy exacerbate along the Texas-Mexico border are a frequent topic on this blog, so this Mary Anastasia O'Grady/W$J article on the latest developments in the drug war just south of the border caught my eye:
American nonchalance about drug use stands in sharp contrast to what is happening across the border in Mexico. There lawmen are taking heavy casualties in a showdown with drug-running crime syndicates. On Thursday the chief of the Mexican federal police, Edgar Millán Gómez, was assassinated by men waiting for him when he came home, becoming the latest and most prominent victim of the syndicates. [. . .]
It's no secret that the narcotics trade is like a roach infestation. If you see one shipment or dealer, you can be sure that there are many others that go undetected. That's why such brazen behavior at [San Diego State University] should be disturbing to America's drug warriors. The signs of an infestation are everywhere, making a joke of their 40-year claim that any day now they will wipe out American drug use. [. . .]
The upshot: Americans underwrite Mexico's vicious organized crime syndicates. The gringos get their drugs and the Mexican mafia gets weapons, technology and the means to buy off or intimidate anyone who gets in their way. Caught in the middle is a poor country striving to develop sound institutions for law enforcement.
The trouble for Mexico is that, even if it understands that U.S. demand is not going away, it cannot afford to cede large swaths of the country to the drug cartels. Thus Mexican President Felipe Calderón has made confronting organized crime a priority since taking office in December 2006. His attorney general, Eduardo Medina Mora, told me in February that the goal is to reclaim the state's authority where it has been lost to the mafias.
But after 17 months of engagement, while San Diego students party on, victory remains elusive and the Mexican death toll is mounting. Most of the drug-related killings since Mr. Calderón took office seem to be a result of battles between rival cartels. Still, the escalating violence is troubling. The official death toll attributable to organized crime since the Calderón crackdown began now stands at 3,995. Of that, 1,170 have died this year.
Especially alarming are the number of assassinations among military personnel and municipal, state and federal police officers. The total is 439 for the 17 months and 109 so far this year. Many of these victims have been ordinary police officers whose refusal to be bought off or back off cost them their lives.
But as the murder of police chief Millan makes clear, high rank offers no safety. Two weeks before he was gunned down, Roberto Velasco, the head of the organized crime division of the federal police, was shot in the head. The assailants took his car, which leaves open the possibility that it was a random event, but most Mexicans are not buying that theory. Eleven federal law enforcement agents have been killed in ambushes and executions in the last four weeks alone.
If U.S. law enforcement agencies were losing their finest at such a rate, you can bet Americans would give greater thought to the violence generated by high demand and prohibition. Our friends in Mexico deserve equal consideration.
The most troubling aspect of all this is that spillover violence toward U.S. authorities would probably just be met with beefed-up prohibition efforts. Are the vested interests who benefit from the outmoded-but-lucrative prohibition policy simply too entrenched for there to be serious Congressional consideration given to a more humane and cost-effective drug policy?
Posted by Tom at 12:01 AM | Comments (2)
May 12, 2008
The Players trumps the Masters
Well, he didn't do it with a belly putter, but Sergio Garcia fulfilled my prediction after last year's British Open that it was just a matter of time before he won a big-time tournament.
On Sunday afternoon, the 28 year-old Garcia won The Players in a one-hole playoff against journeyman Paul Goydos (169th in the World Golf Rankings) as he shook off -- for the most part, at least -- the putting woes that have bedeviled the former prodigy over the past several years. The victory is Garcia’s first on the PGA Tour since 2005 and easily the most important championship in his career to date, reflected by the fact that his World Golf Ranking went from 18th to 10th with the win. For the record, Garcia burst on the scene as a 19 year-old when he went toe-to-toe with Tiger Woods before taking second place at the 1999 PGA Championship at Medinah. Few who saw him play in that tournament would have predicted at the time that it would take him nine years to win a tournament of the The Players' stature.
By the way, fourth-place finisher Briny Baird summed up as well as anybody the final day of The Players, which saw contenders such as Phil Mickelson (78) and Kenny Perry (81) flame out: "I don't care who wins the tournament," Baird said. "The wind won. It kicked everybody's butts."
Although Garcia's unexpected victory and Goydos' stirring play were compelling story lines, the big winner this week was the tournament itself, which provided a much more entertaining product than the Masters for the second straight year. Dean Barnett notes the main reason why:
Particularly when paired against the Masters, The Players shows some strength. The field of competitors is stronger at The Players; indeed, it’s the strongest field in golf on an annual basis.
The Masters’ history also has to give The Players some encouragement. The Masters is a relatively new tournament, ostentatiously and boldly designed to achieve major status some 70 years ago. And the plan worked. The Players has the same sort of dynamic, plus the additional benefit that the venue and the tournament belong to the PGA Tour. In other words, The Players truly is the players' tournament. In a manner of speaking, they own it.
Where The Players actually belongs to the players, the Masters and Augusta National belong to a bunch of weird guys who are prone to despotism. Additionally, the Masters has looked a bit long in the tooth in recent years. In a misguided effort to modernize the course, Augusta National unleashed a supremely mediocre architect to modify one of the best and most original golf designs ever.
The changes to the course have been horrendous on a number of levels. The most damaging has been the fact that the changes sucked the drama out of the tournament in the name of “defending par.” Augusta is now so long and difficult, there are few birdie opportunities and the players take over five hours to make their way around the course in twosomes. If the lords of Augusta National were capable of embarrassment (which they almost surely are not), this last fact would shame them no end. The course is now harder (and more boring), but is it a better and fairer test of golf? Does it effectively identify the world’s best golfers? Leader boards the last couple of years populated almost exclusively by no-names and an angry Tiger Woods suggest otherwise.
Meanwhile, The Players takes place at the Tournament Players Club (TPC), a course that is also very difficult, but still manages to identify the best golfers and be fun. The trademark short 17th hole with its island green is pure fun and excitement. (Journalistic integrity compels me to confess to playing the Tournament Players Club this winter and effortlessly parring the 17th by hitting a nice easy nine iron to the center to the green. I’m not sure why the pros have so much trouble with the hole. Maybe it has something to do with having hundreds of thousands of dollars on the line.)
Although a beautiful venue, Augusta National is currently so long and difficult that it provides a disincentive for the players to take risks, similar to the type of golf that has long been played in the usually boring U.S. Open. The Stadium Course at TPC Sawgrass, on the other hand, is much shorter than Augusta National and most U.S. Open venues, and the course continues to encourage creative risk-taking. A course that encourages risk-taking will usually produce a more entertaining tournament than one that does not.
Posted by Tom at 12:01 AM | Comments (0)
May 11, 2008
Nixonland
George Will gives Rick Perlstein, author of Nixonland (Scribner 2008), a history lesson.
Posted by Tom at 12:01 AM | Comments (0)
May 10, 2008
Worth a watch
For those of you interested in the vexing issues involved in application of the death penalty and child predator laws, the scene below from Boston Legal is worth ten minutes of your time (H/T David Feige). I don't agree with everything that Alan Shore says in his argument to the U.S. Supreme Court, and the scene is certainly far-fetched, but it's a thought-provoking performance nonetheless:
Posted by Tom at 12:01 AM | Comments (0)
May 9, 2008
Suspending reality on financing the soccer stadium
Look, I realize that the reasoning in support of public financing for the proposed Houston Dynamo soccer stadium has not been particularly rational. But this Chronicle article takes the cake in terms of suspending reality. Chron reporters Bernando Fallas and Bill Murphy breathlessly suggest that financially-troubled Texas Southern University -- which is currently seeking $40 million in emergency legislative funding simply to keep the lights on -- is a serious player to make up at least a portion of the gap between the private and public financing on the deal:
Forget soccer-specific. The Dynamo would be thrilled to call their proposed stadium football-specific or even fútbol-specific.
Either way would be accurate — soccer is known as football almost everywhere else in the world — if the Dynamo can get Texas Southern University to join negotiations with the city of Houston toward the construction of a $105 million facility just east of downtown that would be home to the two-time defending MLS champions and TSU athletics, primarily the Tigers' football team.
By the looks of things, TSU is prepared to do just that.
Two weeks after he first expressed interest in the project and a couple of meetings and phone conversations later, newly appointed TSU athletic director Charles McClelland said the school is willing to invest in the construction of the 22,000-capacity stadium in exchange for the rights to use it. [. . .]
Of course, the article is utterly devoid of details, such as how TSU is going to find any money to throw at this deal, much less make a multi-million dollar investment in it. Heck, the TSU athletic director and the Dynamo's president haven't even met yet, so it doesn't even appear that Dynamo management takes TSU's involvement seriously. Why don't the Chronicle editors just come out and say that they really want the city to finance the downtown soccer stadium and spare us such vapid articles as this one? Gosh, it's gotten so bad that even normally common sense bloggers are giving in to this silliness.
Meanwhile, J.R. Taylor over at PoliSci@UST runs circles around the Chronicle's reporting on the soccer stadium financing with this well-reasoned post that actually addresses facts regarding public financing of stadiums. Yet another example of how the blogosphere is trumping the mainstream media in terms of providing coherent analysis of important issues.
Posted by Tom at 12:01 AM | Comments (1)
May 8, 2008
My favorite tournament
It's not one of the four majors (despite the PGA Tour's constant drumbeat to make it the fifth), but The Players Championship at TPC Sawgrass in Ponte Vedra Beach just south of Jacksonville, Florida is my favorite golf tournament of the year. This year's edition starts today.
This is the 35th Players Championship, which bounced around for its first eight years before settling at Pete Dye’s legendary Stadium Course at TPC Sawgrass in 1982. Not only is the Stadium Course a great modern layout (Jay Flemma's excellent review is here), the Tour has continually renovated and improved the course over the years so that it has matured into one of the best courses that the Tour plays each year. Adding to the fun is the fact that The Players usually has the best field of any tournament of the golf season and this year is no exception -- every one of the top 25 in the World Golf Rankings is playing with the exception of the Tiger Woods, who is convalescing from recent knee surgery. Not surprisingly, from the standpoint of most players, winning The Players is at least as prestigious as winning the PGA Championship, though still not as important as winning the other three majors.
So, a great field competing over one of modern golf design’s most interesting courses almost assures good entertainment -- that's why this is my favorite tournament. Add in that the 17th hole island par-3 is arguably the most creative (and highly controversial) hole in the backstretch of any Tour event is a virtual guarantee for high drama come Sunday afternoon. TV times for Thursday and Friday are noon-6 p.m. (CDT) on the Golf Channel, and 1-6 p.m. (CDT) Saturday and Sunday on NBC.
Posted by Tom at 12:00 AM | Comments (0)
May 7, 2008
Stros 2008 Season Review, Part One
Despite a weekend sweep of the division-rival Brewers (16-16) and another stirring comeback victory over the Nationals (14-19), the Stros' record (17-16) reflects their performance through the first fifth of the 2008 season -- an average National League ballclub.
Collectively, the Stros are generating one less run through 33 games than a National League-average club would have generated in the same number of games (RCAA -- that's 9th among the 16 National League clubs) and the Stros' pitching staff has collectively given up nine more runs than a National League-average pitching staff would have given up (RSAA -- that's 10th in the National League). Thus, the 2008 Stros have essentially the same record and collective statistics as the disastrous 2007 club had at roughly the same stage of the season.
Nevertheless, there is a reasonable basis for thinking that the 2008 club will turn out somewhat better over the course of the season than the 2007 edition (73-89). SS Miguel Tejada (12 RCAA/.379 OBA/.565 SLG/.944 OPS) appears to be revived by his new surroundings and has been much better than predicted, both offensively and defensively. Although still below National League-average, the Stros' pitching staff can look forward to ace Roy Oswalt (-7 RSAA/5.57 ERA) improving steadily over the balance of the season after an uncharacteristically bad start (after going 0-3 with a 9.00 ERA in his first three starts, Oswalt is 3-0 with a 3.46 ERA in his last four starts), that second-best starter Wandy Rodriguez (5 RSAA/2.31 ERA) will eventually return from a stint on the disabled list, and that the relief corps will continue its recent improvement after a horrid start that was primarily responsible for the club's atrocious 6-14 record after the first 20 games of the season. Likewise, an increase in offensive productivity is likely as RF Hunter Pence (-5/.288/.432/.720) and LF Carlos Lee (5/.333/.541/.874) rebound from slow starts and regular 3B Ty Wigginton (-2/.275/.333/.608) returns after missing 22 games with a broken thumb. Finally, the Stros' prospects this season are buoyed by 1B Lance Berkman's (22/.428/.731/1.159) strong rebound from a so-so 2007 season (at least by his standards) as he returns to his customary status as one of the top sluggers in the National League. Berkman went nuts at the plate again on Tuesday night against the Nationals, going 5 for 5 for the first time in his career and stealing two more bases, making him 6 for 7 on steal attempts this season.
However, that's not to suggest that there aren't warning signs that could lead this club to swoon in the same manner as the 2007 club did (26 losses in 40 games) during the second quarter of last season. Contrary to the mainstream media's suggestion that the Stros are a good hitting team, no Stros hitters are producing above National League-average except for Berkman, Tejeda and Lee, and Lee is not producing anywhere near the rate he needs to in order to make up for all the runs he gives away with his laggard defensive play. Meanwhile, young players Pence, CF Michael Bourn (-5/.275/.315/.590) and C J.R. Towles (-3/.318/.386/.703) are all showing signs of their lack of AAA seasoning. Bourn has yet to learn that his future as a Major Leaguer is in being a line drive/ground ball hitter, while Pence is having to deal for the first time with the reality that he will get few meaty fastballs from NL pitchers unless or until he learns to lay off breaking pitches thrown outside the strike zone. On the pitching side, the starting rotation is seemingly on the brink of disaster most of the time (Chris Sampson has a -11 RSAA/7.96 ERA so far this season!), which has led to Manager Cecil Cooper's quick hook and the resulting overuse of the relievers. Although they have been better over the past 20 or so games, those relievers are at high risk of reverting to their early season mediocrity as the innings pile up.
Consequently, through a fifth of the 2008 season, there still is not much evidence that the Stros can contend for a NL playoff spot. So long as they can avoid injuries to key players, the club might be able to achieve a .500 record, which would be 7 games better than my pre-season over/under prediction of 75 wins. However, the club's pitching is simply too inconsistent to generate a sustained period of generating more wins than losses, which is necessary at some point in any season to propel a club into playoff contention. Look for the Cubs (19-14; 31 RCAA/24 RSAA) to take control of the NL Central as the season wears on, although the Cardinals (22-12; 28 RCAA/13 RSAA) have been the surprise of the division so far. I just don't think the Cards will keep it up.
By the way, the 2008 season has brought us another solid source of information on the Stros. Zachary Levine -- who takes a refreshingly objective approach to baseball analysis -- has quickly become the most insightful Houston Chronicle reporter on the Stros. Along with Lisa Gray's insightful Stros blog and Alyson Footer's articles at Astros.com, Levine's reports on the Stros provide solid sources for keeping up with the Stros on daily basis.
After finishing up against the Nats this week, the Stros make a West Coast swing against the Dodgers (18-14) and the Giants (14-19) before returning to Texas to play the Rangers (13-20) in the first inter-league games of the season. Then, it's back home later this month to play the Cubs and Phillies (19-14) before going back on the road to finish May against the Cardinals and Brewers.
The 2008 season statistics for the Stros are below (through 33 games), courtesy of Lee Sinins' sabermetric Complete Baseball Encyclopedia. The abbreviations for the hitting stats are defined here and the same for the pitching stats are here. The Stros 40 man roster is here with links to each individual player's statistics:
Continue reading "Stros 2008 Season Review, Part One"
Posted by Tom at 12:01 PM | Comments (0)
May 6, 2008
The subprime mortgage criminal lottery
Well, well, well. Look who is resurfacing in connection with the creation of the Justice Department's latest criminal Task Force to investigate whether crimes were committed when the subprime-mortgage market collapsed (just what we need -- another corporate crime lottery):
Federal prosecutors are stepping up their scrutiny of players in the subprime-mortgage crisis, with a focus on Wall Street firms and mortgage lenders.
Prosecutors in the Eastern District of New York in Brooklyn have formed a task force of federal, state and local agencies that will involve as many as 15 law-enforcement agents and investigators.
The U.S. attorney for the office, Benton J. Campbell, who supervises about 150 prosecutors, said the group will look into potential crimes ranging from mortgage fraud by brokers to securities fraud, insider trading and accounting fraud.
You may remember Campbell. He was the lead prosecutor on the Enron-related criminal trial known in these parts as the first Enron Broadband trial, which ended in an embarrassing loss for Enron Task Force after the prosecution was caught threatening defense witnesses (see also here) and propounding false testimony from one of its key witnesses during the trial. Sort of what you would expect from a trial in which the Task Force advocated an unwarranted expansion of a criminal law intended to punish kickbacks and bribes against business executives who did no such thing.
Interestingly, in the Wall Street investigation, Campbell thinks there actually may be a non-criminal explanation about the meltdown in the sub-prime market:
Mr. Campbell said the "jury is still out" on just how much criminal activity the office might find, particularly on Wall Street, which saw a sudden decline in the value of securities backed by pools of mortgages last year. "There are market forces in play in that area, and that doesn't necessarily mean there is fraud," said Mr. Campbell, 41 years old.
H'mm. How many damaged lives and careers would have been salvaged had Campbell and his fellow Enron Task Force prosecutors been so open-minded?
Posted by Tom at 12:01 AM | Comments (0)
May 5, 2008
Chron: Sacrifice the local economy for the polar bears
Given the editorial slant of the Houston Chronicle over the past several years, it's not particularly surprising that the editors ran this editorial calling for polar bears to be declared an endangered species under the federal Endangered Species Act.
Unfortunately, it's also not surprising that the Chron editorial failed to mention that the oil and gas business -- a key source of jobs and wealth for Houston and the nation -- is likely to suffer considerable financial damage as a result of the polar bear listing push, which Hugh Hewitt notes "is not only an abuse of the ESA's original intent but also unsupported by the facts concerning the ice and the polar bears."
Posted by Tom at 12:01 AM | Comments (0)
May 4, 2008
"Because you're not that guy. . ."
Beyond occasional gems such as John Adams or NBC's 30 Rock, I don't watch much television, so I'm pretty clueless on the latest TV ad campaigns. However, my wife and I laughed heartily last night when we saw this Helzberg Diamonds commercial below for the first time:
Much to my surprise, I discovered later that my amusement with the commercial apparently reflects my sexism to some folks. This post provides a bit more balanced perspective on the ad campaign.
Posted by Tom at 12:01 PM | Comments (0)
May 3, 2008
The stench of injustice
Scott Henson reports on the 17th exoneration (see also here) of a citizen in Dallas who had previously been wrongly convicted. This time prosecutors withheld exculpatory evidence from the defendant's lawyers and police failed to investigate it. New Dallas District Attorney Craig Watkins continues to investigate what appears to be have been a culture of abject injustice within the Dallas County D.A.'s office. I will not be surprised if there are more exonerations.
By the way, the rest of the country is noticing this outrage.
Posted by Tom at 12:01 AM | Comments (1)
May 2, 2008
The Rockets Narrative
As the Houston Rockets face the beginning of their straight decade of failing to get out of the first round of the NBA playoffs, the familiar mainstream media narrative regarding the team's probable playoff loss to Utah is all around us -- Superstar Tracy McGrady folds during crunch time at the end of close games and is simply not the type of true superstar who can carry his team to greater success.
However, reality is much different. Rather than underachievers, this season's Rockets overachieved, somehow winning 55 games during the regular season despite having only two players on the team who were in the top 15 of NBA players at their position in terms of wins-produced. And those two players -- injured center Yao Ming and relatively little-used power forward Chuck Hayes -- are only ranked 14th and 15th respectively at their position. Not only is McGrady no longer a superstar player, there are dozens of players in the NBA who produced more wins for their team this season than the just-above league average McGrady.
Given this quality of analysis in the local mainstream media, don't expect the familiar narrative regarding the Rockets to change any time soon. But the truth is that this Rockets team -- relative to their talent level -- had one of the best seasons of any team in the NBA this season. It's just that the club needs to find or develop a couple more above-league average players before it can get beyond the first round of the playoffs.
Posted by Tom at 12:01 AM | Comments (0)
May 1, 2008
Neuroscience and the Law
I am always on the lookout for creative and interesting Continuing Legal Education seminars. This one clearly fits the bill:
Baylor College of Medicine’s Initiative on Neuroscience and Law is proud to announce its 2008 Conference. This conference showcases talks from experts in several aspects of neurolaw. Topics include responsibility, punishment, prediction, rehabilitation, brain death, genetics, competence, intention, and ethics – all with an eye toward understanding how cutting edge neuroscience will touch the current practice of law.
The conference, which is worth 3.5 hours of CLE credit, will take place on Friday, May 23, 2008, from 1-5 p.m. at Baylor College of Medicine (Room M321) in the Texas Medical Center. One of the speakers for the conference is Daniel Goldberg, a local attorney and former Texas Supreme Court clerk who is currently working on his PhD at the University of Texas Medical Branch while serving as a Research Professor at Baylor's Initiative on Neuroscience and Law and as a Health Policy Fellow at Baylor's Chronic Disease Prevention & Control Research Center (Daniel is also a frequent commenter on health care and health care finance issues on this blog). The preliminary agenda for the conference is here. Check it out.
Posted by Tom at 12:01 AM | Comments (2)
April 30, 2008
Examining stadium subsidies
As if on cue for the soccer stadium financing issues currently being discussed on the local scene, Dennis Coates provides this excellent op-ed in The American on the dubious nature of municipal stadium subsidies:
Clearly, stadiums built with public funds have evolved over time. No longer are they built to honor the sacrifices of American soldiers. No longer are they built to be flexible venues capable of hosting a great variety of events. And no longer does the public sector determine the appropriate price to charge private enterprise for use of this publicly supplied resource. Today, sports stadiums are largely the private domain of for-profit businesses that the public sector subsidizes, often with special taxes. [. . .]
Over time, both the purpose and the real cost of public support for stadiums and arenas have changed. It may be that the subsidies state and local governments provide for stadium and arena construction and operation are justified by the community benefits those facilities provide. But the evidence says otherwise. [. . .]
My own research, conducted with economist Brad Humphreys . . . finds that the professional sports environment—which includes the presence of franchises in multiple sports, the arrival or departure of teams, and stadium construction—may actually reduce local incomes. For example, we found that the overall sports environment reduced per capita personal income, a finding that was new in the economic literature at the time we published it (1999). We also found that, in many local economies, wages and employment in the retail and services sectors have dropped because of professional sports. [. . .]
Of course, even if the benefits of stadiums and arenas cover the subsidies, the subsidies still may not be sound policy. First, there may be enormous variation in the distribution of the consumption and public-good benefits. It is clear that not all citizens in a community benefit equally from the presence of professional sports franchises in their city. Indeed, because the tax revenues used for the subsidies are often generated from lotteries and sales taxes whose burden falls disproportionately on the poor, while the consumption benefits go mostly to relatively wealthy sports fans, the net benefits are distributed regressively. Second, we should consider the net benefits to the community of alternative uses of the funds spent subsidizing sports facilities. Good policy means using the money where the net benefit is greatest, not simply where the net benefit is positive. That’s something state and local governments should keep in mind before pledging millions of dollars to fund the next new stadium project. And it’s something Congress should remember when evaluating the future of U.S. tax policy.
Are you listening, Mayor White?
Posted by Tom at 12:01 AM | Comments (2)
April 29, 2008
Fueling food riots
Peter Gordon observed the other day that "politicians are better at creating problems than addressing them. Schools, housing, health care, transportation and others suffer from too much political attention."
Echoing that idea, Clear Thinkers favorite James Hamilton writes about one of the underlying economic reasons for food riots that are occurring in developing nations in some parts of the world:
As a result of ethanol subsidies and mandates, the dollar value of what we ourselves throw away in order to produce fuel in this fashion could be 50% greater than the value of the fuel itself. In other words, we could have more food for the Haitians, more fuel for us, and still have something left over for your other favorite cause, if we were simply to use our existing resources more wisely.
We have adopted this policy not because we want to drive our cars, but because our elected officials perceive a greater reward from generating a windfall for American farmers.
But the food price increases are now biting ordinary Americans as well. That could make those political calculations change, and may present be an opportunity for a nimble politician to demonstrate a bit of real leadership. I notice, for example, that although Senator Barack Obama (D-IL) was among those who voted in favor of the monstrous 2005 Energy Bill that began these mandates, Hillary Clinton (D-NY) and John McCain (R-AZ) were among the 26 senators who bravely voted against it.
Wouldn't it be refreshing if one of them actually tried to make this a campaign issue?
Sigh. Read the entire post.
Posted by Tom at 12:01 AM | Comments (0)
April 28, 2008
What to do about airline service?
Putting aside for the moment airline industry's seemingly intractable financial problems, lousy airline service has become such an issue that even Judge Posner and Gary Becker are trying to figure out what to do about it. At least painful airline service provides the fodder for this amusing segment of Brian Regan's stand-up comedy show:
Posted by Tom at 12:01 AM | Comments (0)
April 27, 2008
Thoughts for a Sunday
The NY Times' Adam Liptak has penned a couple of interesting articles recently (here and here) on a frequent topic of this blog (here, here, here, here, here, here, here, here, here, and here) -- the troubling incarceration rate in the United States.
With only 5% of the world's population, the U.S. now houses almost a quarter (2.3 million!) of the world's prisoners. One in 100 adults in the U.S. is now behind bars and 751 people are in U.S. prisons or jails for every 100,000 in population. The only other major industrialized nation that even comes close to that rate of incarceration is Russia with 627 prisoners for every 100,000 people. England’s rate is 151, Germany’s is 88 and Japan’s is 63. Attempting to keep all of this in perspective, Pepperdine University's James Q. Wilson provides this recent op-ed that puts the U.S. incarceration rate in a more favorable light with regard to reducing serious crime.
Among other things, these incarceration numbers certainly makes one wonder why on earth we are sending folks like Jeff Skilling, the NatWest Three, the Merrill Four and Jamie Olis to prison?
Meanwhile, in this five-part LA Times debate, Reason's Jacob Sullum takes on the Heritage Foundation’s Charles Stimson over one of the main reasons for the high U.S. incarceration rate -- drug prohibition. At least in this first installment, Sullum makes a much more compelling case than Stimson. And Peter Gordon has this sage observation about the genesis of drug prohibition.
Posted by Tom at 12:01 AM | Comments (1)
April 26, 2008
Conited Airlines, finally?
The NY Times is reporting that the on-again, off-again merger negotiations between Houston-based Continental Airlines and Chicago-based United Airlines are coming to a conclusion and that a definitive merger deal is likely to be announced by the end of next week.
Continental, the nation's fourth-largest carrier based on traffic, has long been the natural merger partner for United, which is the No. 2 airline. If they strike a deal, the merger would produce the world's largest airline, bigger even than the combined Delta-Northwest and significantly outdistancing American, which is currently No. 1.
Speaking of the Delta-Northwest deal, those partners this week reported an astounding, combined first quarter loss of $10.5 billion, reflecting that the two airlines are now worth far less than when they emerged from bankruptcy a year ago.
Two drunks holding each other up is rarely a good idea. ;^)
Update: The Chron is reporting that Continental's board has decided to reject any merger proposals "at least for now." The NY Times reports that Continental backed off because of United's worse-than-expected first quarter losses.
Posted by Tom at 12:01 AM | Comments (0)
