Braves outlast Stros

The Braves jailbird-to-be Rafeal Furcal hit a two-out, two-run walkoff homer in the 11th inning off of Dan Miceli that propelled the Braves to a 4-2 victory over the Stros Thursday afternoon at Turner Field in Atlanta. The Braves’ win tied their NL playoff series with the Stros at one game each.
Furcal was in court just hours before Game 1 of the series where he was sentenced to 21 days in jail and 28 days in a treatment center for violating probation with his second drunken-driving arrest in four years. However, the judge — obviously a Braves fan — put the sentence off until the day after the season ends.
With the Stros on the verge of taking a commanding lead, manager Phil Garner brought closer Brad Lidge into the game in the seventh inning when the Stros had a 2-1 lead, but the Braves rallied to force extra innings. The Braves outhit the Stros 14-4 and held the Stros without a hit for the final 5 1/3 innings.
Realizing the importance of the game, the Braves kept closer John Smoltz on the mound for three innings, which was his longest outing since September 2001. Similarly, Lidge went 2 2/3 innings, which was his longest outing of the season.
Both starters for the respective teams pitched well. Roy O gave up eight hits and a run in 6 2/3 innings while Mike Hampton gave up just four hits in 6 1/3 innings, including solo yaks to Bags and Raul Chavez. Hampton left in the seventh because of tightness in his left forearm, but the injury is not believed to be serious.
The series now moves to the Juice Box on Saturday where the Stros have won 18 straight games with the Stros’ Brandon Backe going up against the Braves’ John Thomson. Game time has been moved to noon on Saturday.

The public policy failure of the Texas Robin Hood school finance system

Virginia Postrel of Dallas, who runs the smart Dynamist.com blog, does an excellent job of explaining in this NY Times article the public policy failure that is the current Texas Robin Hood public school finance system.
As Ms. Postrel notes, the problem is not with equalizing benefits between rich and poor school districts, but rather the structure under which such equalization was to be achieved:

Robin Hood does not just move money from rich school districts to poor school districts. It does so in a way that destroys far more wealth than it transfers, and that erodes the tax base on which school funding depends.
To understand why Robin Hood is so destructive, consider the market price of a given house. The home’s value depends not just on how big the house is or whether it has walk-in closets and granite countertops.
Property taxes depress the value of a house. The amenities those taxes buy, including good schools, increase the value. The final price reflects the net value of the taxes the homeowner pays.
Robin Hood essentially raises taxes while reducing benefits, creating a downward spiral in home values and property tax receipts. For each district, the state divides the total assessed value of property in the district by the number of pupils. (Districts get higher per-pupil weightings for such factors as students with learning disabilities or limited English proficiency.)
The state then compares this number with a confiscation threshold. The district keeps the taxes on the property base below the threshold. But every single penny collected on the property value above the threshold goes to the state.

Not surprisingly, Ms. Postrel notes that, when homebuyers no longer get as much education for their taxes, buyers will not pay as much for houses:

During the 1990’s, “a period of unusually rapid income growth for the wealthy,” the economists note, the property value per pupil actually fell in the state’s wealthiest 5 percent of school districts, even without accounting for inflation.
That drop was bad news for everyone. Robin Hood assumed that house prices would stay pretty much the same, so that property-rich districts would continue to provide ample tax dollars to the rest of the state. Instead, every year the tax base became smaller in the rich districts.
To meet its commitments to poor districts, the state effectively lowered the real value of the confiscation threshold. Corrected for inflation, the threshold was $340,000 per weighted pupil in 1994, when the system was established. By 2002, it had fallen to $305,000.
But lowering the threshold further depresses home values. A death spiral sets in.
As homebuyers switch from the once-rich districts into moderately priced districts, property values hit the threshold in those districts, setting yet another spiral in motion.
And while the state is pushing down the confiscation threshold, districts try to keep up by raising their property tax rates, pushing down home values even more.

Ms. Postrel notes that correcting the system is certainly not impossible:

[The solution is to bring] well-established principles of efficient taxation to bear on school finance. Transfers . . . should be funded through a statewide tax, while local taxes pay for local amenities.
But even local taxes could be more efficient. Instead of confiscating 100 percent of everything above a certain property-value threshold, . . . the state could take a much smaller percentage of the whole tax base.
“One of the principles of public finance is that having a high tax rate on a small base is very inefficient, whereas having a lower tax rate on a larger base is less distortionary, ” observes Ilyana Kuziemko, a Havard University economist who co-wrote with Caroline M. Hoxby a new working paper for the National Bureau of Economic Research entitled Robin Hood and His Not-So-Merry Plan: Capitalization and the Self-Destruction of Texas’ School Finance Equalization Plan.

As noted in this earlier post, the handling of public school finance by the Republican-dominated Texas Legislature has been so inept that it gives rise to reasonable questions regarding whether a Republican-controlled state government is capable of addressing such public policy issues in a responsible and effective manner. However, Professors Hoxby and Kuziemko note that the primary reason for the public policy failure of the Robin Hood public school finance system is much simpler than poor political leadership:

“Lawyers, not economists, designed the system.”

A great post-debate line

Former Republican senator from Wyoming Alan Simpson attended Tuesday’s debate between Vice-Presidential candidates Dick Cheney and John Edwards. During an interview after the refreshingly contentious debate, Mr. Simpson waxed nostalgic about the bygone days in which such contentiousness was the norm in such political exchanges, such as the time that Republican Sen. Wayne Morse of Oregon in 1957 called his “distinguished colleague” Republican Sen. Homer Capehart of Indiana “a tub of rancid ignorance.”

Understanding terrorism

Although I am generally supportive of the way in which the Bush Administration has conducted the war against the Islamic fascists over the past three years, I have never been comfortable with the Administration’s characterization of the war as the “War on Terror.” Not only does that moniker obscure the real enemy — radical Islamic fascism — but its vagueness risks inclusion of legitimate rebel movements against tyrannical regimes. I mean, really — would the United States be siding with the Iranian or North Korean governments if rebel movements in those countries began to use tactics to undermine those tyrannical regimes similar to those that are used by Islamic fascists against America and Israel?
Dr. Philip Jenkins is a prolific author and an outstanding professor of history and religious studies at Penn State University. He is best known for his recent books The Next Christendom: The Coming of Global Christianity (New York: Oxford University Press, 2002) and The New Anti-Catholicism: The Last Acceptable Prejudice (New York: Oxford University Press, 2003), which are outstanding works on the changing nature of Christianity in the world. The Next Christiandom explores the emergence of Third World countries as the future demographic and cultural center of global Christianity, and The New Anti-Catholicism examines how modern political correctness toward minority groups has not deterred major media outlets from casting the Catholic Church and its teachings in the worst possible light.
However, Professor Jenkins is also an expert on the concept of terror, and his new book Images of Terror: What We Can and Can?t Know about Terrorism (Aldine de Gruyter, New York 2003) explores the social construction of terrorism as a concept and problem. In this review of Images of Terror, reviewer Daniel McCarthy notes that Professor Jenkins asks the salient question: What makes a particular incident an example of terrorism, rather than a conventional crime? Although a generic definition of terrorism is possible to develop, the application of that definition to a particular event is much more difficult as a variety of social forces and media interpretations shape our understanding of the event:

[A]s a new understanding of the problem [of terrorism] takes hold, older interpretations may be forgotten entirely and even retroactively discredited. The interpretation that was plausible in the 1980s became, under the influence of a changing ideological climate, a thing that only crackpots believed in the 1990s. This, says Jenkins, is what happened to the theories of those who warned of the dangers of Islamic terrorism during the Clinton years. In the 1980s, when terrorism was understood as a phenomenon connected to outside dangers?to the Cold War and the Iran-Iraq War, for example?such warnings might have been taken seriously. In the 1990s, however, terrorism increasingly came to be understood as something associated with domestic far-right militants, and those who talked too much about Islamic terrorism risked being dismissed as racists or Islamophobes. After 9/11, the prevailing understanding changed again, and people who may have sounded like cranks five years earlier were now experts on a real and obvious danger.

Indeed, as Professor Jenkins points out, the concept of terror is neither new nor particularly unusual in American history. However, the social and political forces that shape our understanding of terror events make it seem that way:

[W]hile the images of terror shift, the reality of terror may remain constant. Terrorism in United States is certainly not a recent development. Jenkins provides a chart enumerating more than forty-nine major acts of terrorism in the United States between 1939 and 2001; he notes, however, that despite this long history of terrorism, news media would often react to a major terrorist strike within the country as if it were the first time terror had come to the United States. The media, however, are not alone in their forgetfulness and revisionism. Jenkins argues that intelligence agencies and government departments also change the way terrorism is understood, prompted by changing diplomatic and political realities.

As one example, Professor Jenkins points out how the government’s handling of the information that 9/11 hijacker Mohamed Atta probably met with Iraqi intelligence agent in the Czech Republic in early 2001 reflects the conflicting interests within the U.S. government at the time:

Czech intelligence originally claimed that [Atta met with Iraqi intelligence agent in the Czech Republic in early 2001], but the Czech government later disavowed that report. Might the government have had other reasons for discrediting the story? An Iraqi connection to 9/11, no matter how tentative, would have been cause for war, something that Jenkins says the U.S. State Department was eager to avoid at the time.

Professor Jenkins maintains that we can reach a better understanding of terrorism and its implications by asking specific questions that undermine the political or social twists that a societal force may attempt to place on a particular terroristic event:

There may be things we can never know about terrorism, certainly about specific acts. In general, however, consumers of news and information can adopt strategies to arrive at the clearest understanding possible. First, says Jenkins, readers must ask, ?How do we know this?? (p. 193). They must evaluate the sources?and the sources’ sources?carefully. Second, they must ?realize that claims have consequences? (p. 193), asking cui bono while considering also how a certain piece of information may harm the interests of various actors. Finally, ?the greatest weapon for the critical consumer of terrorism claims is memory? (p. 194). Images of Terror as a whole is concerned with that third point: the purpose of a social constructivist analysis, after all, is to show that things have not always been understood the way they now are and that other interpretations are possible. Memory provides some context and some grounds for hope in the effort to understand terrorism.

Thus, the “War on Terror” paints with a broad brush where a more measured stroke is needed. The sooner that we understand that the war is against radical Islamic fascists who seek state power to effectuate totalitarian control similar to what occurred in Iran in 1979 and in Afghanistan in the 1990’s, then the quicker we will be able to develop the military and political policies necessary to defeat these tyrannical forces against progress.

Former El Paso traders cop pleas

Following on this earlier post on the subject, four former Houston-based El Paso Corp. natural gas traders have agreed to plead guillty under cooperation agreements with the Justice Department after being been charged with making false reports used to calculate the index price of natural gas.
Industry publications, such as the Inside FERC Gas Market Report, use data from traders to calculate the index price of natural gas. Accordingly, movement in index prices often affects the level of profits traders can generate. In this particular case, it remains unclear whether the publication actually used the false information provided, but the government needs only to prove that fake trades were reported and not not that they were actually published or affected the markets.
Each of the traders worked for the Houston company’s El Paso Merchant Energy division and were charged with one count of false reporting. They will enter their guilty pleas later this month. The four who were released on personal recognizance bonds were Christopher Bakkenist, 41; Dallas Dean III, 60; Donald J. Guilbault, 51; and William L. Hamm, 45.
Wednesday’s indictments came nearly two years after former El Paso trader Todd Geiger was indicted for wire fraud and reporting fake trades to an industry publication. He pleaded guilty in 2003 to the fake-trade-reporting charge and agreed to cooperate with prosecutors in the probe.
Earlier this year, ten former El Paso Corp. traders and supervisors received targe letters from the U.S. Attorney’s Office in Houston alerting them that they were targets of a criminal investigation into manipulation of natural gas prices. Moreover, in the last two years, the Commodity Futures Trading Commission has filed civil charges against several companies and subsidiaries in which the CFTC alleges that traders knowingly reported false data to industry publications in an effort to manipulate natural gas prices. So far, the CFTC has settled such allegations against approximately 25 companies for more than $250 million, and El Paso settled such CFTC charges for $20 million in March 2003.
However, in a recent case involving another trader who had been charged with false reporting, a federal district judge threw out the charges after ruling that the part of the Commodity Exchange Act that deals with reporting of false and misleading information on on commodity trades is unconstitutionally broad. That ruling is currently on appeal, and the Fifth Circuit Court of Appeals in New Orleans conducted oral argument on the case earlier this week.