Coyote Blog

We Phoenicians, who live in one of the best solar sites in the world, have been anxiously awaiting a solar electric technology that makes economic sense.    I have a couple thousand square feet of nice, flat room that is just begging to get be off the grid.  Already, solar is economic for individuals in Phoenix, but only if you are willing to soak American taxpayers and your neighbors for 85% of the costs.  It would be nice if it were, you know, actually economic and not just subsidy bait for tens of thousands of dollars.  I have dug into many analyses that claim that solar has a 5-7 year payback, but never seen one that achieved these returns without substantial subsidies and rebates (beware the term “energy payback” which is not the same thing as investment payback (pdf))

For a while I have said that I thought traditional silicon/germanium IC-like wafer processes for making solar cells was just never going to get there, and that some other technology was necessary.   This might be one such example:

JA Solar, one of the big players in the solar industry, is working with Innovalight to commercialize the latter’s method for making silicon-ink-based, high-efficiency solar cells, the companies said this week.

… The solar cells are created by pouring an ink solution incorporated with silicon nanoparticles and then decanting the excess liquid to leave behind a crystalline silicon structure.

At the time of the 2007 announcement, Sunnyvale, Calif.-based Innovalight claimed its method not only resulted in solar cells that were cheaper to produce by as much as half, but that the crystalline structure resulting from the process made its cells more efficient at converting electricity.

Those claims now appear to be validated.

On Tuesday, Innovalight announced that an independent study of its method by the U.S. Department of Energy’s National Renewable Energy Laboratory and the Fraunhofer Institute for Solar Energy Systems in Germany confirmed that its silicon ink-based cells “demonstrated a record 18 percent conversion of efficiency.”

The 18% conversion efficiency is close to a record for thin films, but must be the “record” for production models, since higher conversions have been achieved in the lab.  18% is very good for a production device, particularly if it is cheaper to manufacture than current cells.

This is awesome, from Carpe Diem:

On a purchasing power parity basis, France, Japan, and Germany would all be the poorest states in the United States, based on per capita GDP.  People on the coasts don’t benchmark their education or health care spending against Mississippi, except perhaps to make the case that Mississippi is spending too little.  So why do they benchmark their spending against Germany or France.  Of course we spend more on health care per capita – we spend more than these countries per capita on everything from TV’s to cars to movie tickets.

A number of folks, including myself but more prominently Megan McArdle, have argued that a big problem with nationalized health care schemes is that these plans threaten drug innovation in the US  (which is really the last remaining source of drug innovation in the whole world).

The argument is that nationalization schemes will likely hammer drug prices through price controls down to marginal cost, eliminating any profit motive for expensive drug development.  Further, new drugs will be hampered by having to convince government health care czars that the drug should be allowed under proposed proscriptive, top-down systems of allowed medical procedures.  Risk-adverse beauracrats faced with inevitable budget overruns are unlikely to take the chances with new procedures that the private world takes every day.  (And if you don’t believe that budgets will be immediately overrun, look at cash-for clunkers, where 5 months of funds were used up in 5 days — people may not like the government, but they will take free money and services in near infinite amounts).

Well, I had thought that the response to this argument from health care “reform” supporters would have been something like “private incentives to develop drugs will still exist because of X or Y.”   But apparently, they have given up on that argument and jumped all the way to the argument that even without any private drug companies, Dr. Robert Stadler and the State Science Institute will do all the drug development we need.

Megan McArdle responds in depth here.  I think there is a simpler argument.  Look at something like computers or machine tools.  Innovation in these free markets occurs all over the world, and new inventions and products are as likely to come from Korea or Japan or Germany than from the US.  But in the world of pharmaceuticals and new medical devices, a wildly disproportionate share come in the US, the last semi-free health care market in the world.  And even those new products developped in other countries are funded and capitalized based on their profit potential in the US.

I have an innate confidence in technology.  For example, while I understand solar to be uneconomic for powering my house today, I fully expect that to change.  I look forward to the day, not that far in the future, when I can take my Arizona house off the grid, at least during the day.

In contrast, though, it may be that wind power can’t be fixed, in large part due to its inherent unpredictability.  Sure, solar has a problem as well, in that it doesn’t work at night.  But at least the times when solar is off here in Arizona (ie when it is dark) are predictable and coincide with lower load periods.  Wind is utterly unpredictable and variable, and its peaks and troughs are unrelated to peaks and troughs in electricity demand.

So, if the grid is to reliably supply sufficient power to meet demand, wind must have a backup.  And there is the rub.  Because just about every technology that might currently be used as a backup takes a really, really long time to start up.  Small gas turbines can be producing electricity from a cold stop pretty quickly, but a large coal-fired power plant can take days to go from a cold stop to producing electricity.  This is in part because there are a series of steps where A has to precede B which must come before C to start plants up, and partially just because immediately heating the whole system up would cause the plant to blow up just from the thermal stresses.

So, to back up wind power, traditional fossil fuel plants have to be kept warmed up with turbines spinning.  This means that fossil fuels are burned but no electricity is produced.  I mentioned in a previous post that the largest utility in Germany estimated that 48,000MW of wind capacity was in fact allowing the shut down of just 2000MW of traditional fossil-fuel powered capacity.

A recent article in the National Post argues the Danes are seeing absolutely no substitution from their substantial investment in wind.

There is no evidence that industrial wind power is likely to have a significant impact on carbon emissions. The European experience is instructive. Denmark, the world’s most wind-intensive nation, with more than 6,000 turbines generating 19% of its electricity, has yet to close a single fossil-fuel plant. It requires 50% more coal-generated electricity to cover wind power’s unpredictability, and pollution and carbon dioxide emissions have risen (by 36% in 2006 alone).

Flemming Nissen, the head of development at West Danish generating company ELSAM (one of Denmark’s largest energy utilities) tells us that “wind turbines do not reduce carbon dioxide emissions.” The German experience is no different. Der Spiegel reports that “Germany’s CO2 emissions haven’t been reduced by even a single gram,” and additional coal- and gas-fired plants have been constructed to ensure reliable delivery.

Indeed, recent academic research shows that wind power may actually increase greenhouse gas emissions in some cases, depending on the carbon-intensity of back-up generation required because of its intermittent character.

It probably comes as no surprise that the Danes have the highest electricity costs in Europe.  The article goes on to call wind power in the US a “huge corporate welfare feeding frenzy.”

Update: Well, the Danish wind industry certainly seems to be in good hands (via Tom Nelson):

Ditlev Engel, president and chief executive of the Danish wind-energy company Vestas, said anecdotal evidence about birds being caught in turbine blades and other environmental horror stories do not usually hold up under scrutiny.

“Do people think it’s better all those birds are breathing CO2? I’m not a scientist, but I doubt it,” said Engel, whose company is expanding its U.S. manufacturing and distribution operations. “Let’s get the facts on the table and not the feelings. The fact is, these are not issues.”

LOL – Nothing like a paragraph that simultaneously includes the phrase “Let’s get the facts on the table” with the hypothesis that a couple hundred ppm increase in CO2 concentrations hurts birds.  By the way, from the same article, a lot of discussion of the environmental impact of renewables due to their out-sized use of land.  Clearly an issue for solar and wind, and possibly for others:

One of the biggest challenges renewable-energy projects pose is that they often take up much more land than conventional sources, such as coal-fired power plants. A team of scientists, several of whom work for the Nature Conservancy, has written a paper that will appear in the journal PLoS One showing that it can take 300 times as much land to produce a given amount of energy from soy biodiesel as from a nuclear power plant. Regardless of the climate policy the nation adopts, the paper predicts that by 2030, energy production will occupy an additional 79,537 square miles of land.

I am always amazed at the number of environmentalists that laud the Brazilian ethanol push, given the out-sized effect that industry has had in carving up the Amazon rain forest.  As a disclosure, I am a member of the Nature Conservancy, and wild land preservation is my environmental interest of choice, though I prefer to pursue it through private means (ie via private purchases of land for conservation purposes).  The Nature Conservancy used to spend most of its money for this purpose, though of late it has diverged, as so many environmental groups have, into lobbying government to force people to achieve its ends for them rather than to pursue these ends through non-coercive means.

There is a quote from Robert Redford in Three Days of the Condor** that honestly reflects my opinion on the topic of leaving the US  (Redford is Joe Turner, running away from the CIA, while Joubert is an assassin-for-hire):

Turner: I’d like to go back to New York.

Joubert: You have not much future there. It will happen this
way. You may be walking. Maybe the first sunny day of the spring. And a
car will slow beside you, and a door will open, and someone you know,
maybe even trust, will get out of the car. And he will smile, a
becoming smile. But he will leave open the door of the car and offer to
give you a lift.

Turner: You seem to understand it all so well. What would you suggest?

Joubert: Personally, I prefer Europe.

Turner: Europe?

Joubert: Yes. Well, the fact is, what I do is not a bad occupation. Someone is always willing to pay.

Turner: I would find it… tiring.

Joubert: Oh, no — it’s quite restful. It’s… almost peaceful.
No need to believe in either side, or any side. There is no cause.
There’s only yourself. The belief is in your own precision.

Turner: I was born in the United States, Joubert. I miss it when I’m away too long.

Joubert: A pity.

Turner: I don’t think so.

A great line, particularly in a movie steeped in cold war weariness.  Anyway, I was listening to some rant on NPR about leaving the US if McCain won the election, and I asked myself if I had to leave the US, what would be my rank order of countries to which I might move.  My list is highly influenced by language (at 46 I hardly feel like learning a new language) and by countries of which I am knowledgeable.  Here is what I came up with:

1. Australia
2. Bermuda
3. UK
4. Canada
5. Singapore
6. the Netherlands
7. Switzerland
8. Spain
9. Germany / Austria
10. Costa Rica

Here are some notes on the list, as well as some explanations of countries left off:

• I have yet to meet an American who did not enjoy living in Australia (and many long to go back).  I came within about 5 minutes of living in Bermuda about seven years ago.  I have always liked the UK and have spent many summers there.
• Ireland might belong high on the list, but I have never been there and am not that familiar with it.  But my sense is that if I really were to research it, Ireland would make the top 5.  I could also probably have rattled off a number of other British island colonies, but kept it to Bermuda.
• Canada … its like a whole other state   (this is a line I uttered at business school once, echoing the then-current “Texas … its like a whole other country” advertising campaign.  It was not well-recieved by our northern neighbors.  I still think a few Canadians are trying to hunt me down up there
• Been to Singapore a few times.  An odd place, but certainly a liveable one.  Last gasp of the English speaking choices on the list.
• Netherlands and Switzerland are both fairly capitalist-friendly nations with good support for a displaced English speaker.  I have spent more time with the Dutch, so it is a bit higher, but Switzerland is freaking gorgeous.
• Spain is on the list mostly as a language play.  Not a huge fan of the Spanish government, but I speak the language well enough to pick it up quickly.  Good beaches, and the south coast has many of the appeals of Provence without the prices (and the French).  A couple of years ago this probably would have been Argentina.  I really loved Argentina when I was there, but I am scared a bit by the current political and economic climate.
• I like Austria, and Germany is OK.  Not America but perfectly reasonable places to live.
• If I am really running not just form the US but the first world in general, I might pick Costa Rica.  A pretty good government, particularly for Latin America, beautiful, and plenty of places to be secluded (and/or hide, if the need were to arise).
• I considered the Czech Republic.  Prague seems to be the white-hot destination for American tourists, and they certainly know their beer.  But I suspect that Eastern Europe has several more decades of work before the every day conveniences and creature comforts to which I have become accustomed in the US are prolific there.
• Scandinavia is too freaking cold.  Maybe if I were single I might find some appealing reasons to reconsider…
• There may be some country like Monaco that would suit me perfectly but of which I am wholly unfamiliar.

Readers are welcome to propose their own priorities in the comments.

** Postscript: Three Days of the Condor is one of my favorites, for a couple of reasons.  First, I always loved Faye Dunaway.  Second, and more important, I like thrillers that have a more languid pace.  I know that sounds weird to say, and if I were a film critic I might have the right words, but there is something about the music and the editing and the pacing that almost stands in contrast to the urgencies of the plot itself.  Despite being on the run through the movie, Redford never actually runs.  No car chases either.  Sort of the antonym to the shaky rapid-cut camera action of, say, the Bourne movies.  Other movies I would put in this same category are LA Confidential (maybe my favorite movie) and perhaps the newer version of the Thomas Crowne Affair. I might put Chinatown on this list too, but then since 3 of the 4 would include Dunaway, one might think my first rather than my second criteria was driving the list.

By the way, even action movies could learn something from this.  The first Indiana Jones movie was great in part because the action scenes were interspersed with quiet scenes.  The audience gets to rest from time to time, and the action is highlighted by the contrast.  You can even have some token character development.  Later Indiana Jones movies fell into the trap of going for non-stop adrenalin.

Yesterday I posted on the irony that in the name of “change” and “dynamism,” the Democrats are pushing for what basically is an inherently more conservative (little-c), less dynamic economic system that mirrors that of many continental European countries.

Daniel, an American reader who does quite a bit of work in Europe, wrote me:

1) The static nature of the Euro mentality assigns a high cost to … people … who try to break the mold. Cost of failure is relatively high. In Italy if your small business declares bankruptcy, you forfeit the right to vote.

2) In Germany, workers are sorted at an early age into “blue collar schools” and “professional schools”. I know from my youth, if I had grown up in Germany instead of America, I probably would not be a consultant but more like a janitor (not that there is anything wrong with janitors…).

3) Social services in Europe are hit and miss. In Germany, many people carry private insurance despite the availability of public insurance because of the lack of quality.

4) (this may be a good thing) Italian school children go through a less harsh puberty than American kids. Society has drilled into them that it’s not cool to be different, so there are less cliques. When I share my experiences in school with most Europeans they usually make some snide remark about how growing up in a battle zone (primary school) has caused the Iraq war.

5) Highly skilled workers are in many cases no better paid than unskilled staff. In the south of Italy a senior programmer may make 2K euros per month. A secretary might make 1.5K a month. If it weren’t for most Europeans fear of moving to new cities, there would be no programmers to hire.

6) Speaking of being afraid to move, many Europeans find the thought of moving to a different city complete alien concept.

7) Life in Euro is a much more comfortable than in America *if* you are European. If you are an immigrant, forget it. After two years of pitching companies in the South of Italy, I have never seen a black person be more than a street side vendor of trinkets. In Italy, there is an unsaid rule that you must be an Italian to ever be a professional.

Don’t get me started on France.

9) It is illegal for a business to stay open more than it’s quota in most European countries. It is illegal to operate a barber shop on Mondays.

US unemployment in August "jumped unexpectedly" to 6.1%, by the oddest of coincidences in the first full month just after new, 12% higher US minimum wages took effect. 

The unemployment rate is higher than it has been in the United States in the last 5 years, but substantially lower than the rate most Western European countries like France and Germany experience even during peak economic times. 

In response, the Obama campaign is urging further increases to the minimum wage and emulation of labor policy and legislation in France and Germany.

I say a sign the other day at the airport that full-body millimeter-wave imaging was coming soon to the Phoenix airport.  I guess this was pretty inevitable, and has certainly been predicted in many movies, including Total Recall:

I can’t really decide if this is any more invasive and humiliating than what we already do, ie get undressed, put our medications and creams in clear plastic bags for all to inspect, and subject ourselves to full-body pat downs.  For my part, based on this and numerous other humiliations, I am working as hard as I can to minimize how often I fly.  JD Tuccille has more, and observes that body cavity searches aren’t just for airplanes any more:

If you think that air travel is starting to resemble a very-expensive
East Germany-nostalgia tour and you’d prefer a less-intrusive
alternative, you might consider traveling by train. Well, except, not
on Amtrak, which implemented random bag searches, armed guards and bomb-sniffing dogs earlier this year.

Even local travel is iffy, since New York City has been subjecting subway passengers to annoying searches for the past three years. Los Angeles’s MetroLink implemented a similar policy this week, apparently just so officials there wouldn’t feel left out. Metrolink spokeswoman Denise Tyrrell told the Los Angeles Times

As a postscript, I had a meeting the other day with the National Park Service in Denver.  To get inside – remember this is the park service, no other agency shares this building – I had to give up my driver’s license, have all my bags searched, and go through an X-ray machine.  Does anyone think that maybe we have lost some perspective when I have to go through full-on invasive security to discuss merchandising at a gift shop?

Though I would not want to trade my income taxes with those paid by Europeans, there is at least one area where the US has the worst tax regime in the world.  The specific area is the double standard the US applied on eligibility of income when other countries are involved.  For citizens of other countries, the US applies the standard that taxation is based on where one earns their income, so citizens of, say, France that are working in the US must pay US taxes.  However, for citizens of the US, the government reverses its standard.  In this case, the US applies the standard that taxation is based on citizenship, so US citizens must pay taxes on their income, even if it is all earned living in a foreign country.  Since most countries of the world apply the first standard  (which is also the standard individual states in the US apply), US expats find their income double taxed between the US and the country they are living in.

But now, it is just getting worse:

Queues of frustrated foreigners crowd many an American
consulate around the world hoping to get into the United States. Less
noticed are the heavily taxed American expatriates wanting to get out —
by renouncing their citizenship. In Hong Kong just now, they cannot.
“Please note that this office cannot accept renunciation applications
at this time,” the consulate’s website states. Apart from sounding like
East Germany before the fall of the Berlin Wall, the closure is
unfortunately timed. Because of pending legislation on President Bush’s
desk that is expected to become law by June 16th, any American who
wants to surrender his passport has only a few days to do so before
facing an enormous penalty.

…Congress has turned on expats, especially those who, since new tax
laws in 2006, have become increasingly eager to give up their
citizenship to escape the taxman. Under the proposed legislation,
expatriates surrendering their citizenship with a net worth of $2m or
more, or a high income, will have to act as if they have sold all their
worldwide assets at a fair market price.

…That expats want to leave at all is evidence of America’s odd tax
system. Along with citizens of North Korea and a few other countries,
Americans are taxed based on their citizenship, rather than where they
live. So they usually pay twice — to their host country and the
Internal Revenue Service. As this makes citizenship less palatable,
Congress has erected large barriers to stop them jumping ship. …[I]t
may have the opposite effect. Under the new structure, it would make
financial sense for any young American working overseas with a
promising career to renounce his citizenship as early as possible,
before his assets accumulate.

This is simply awful, and is another example of fascism in the name of egalitarianism (the fear is that a few rich people will move to tax havens to avoid US taxes).  Add up your net worth – equity in your house, retirement savings, etc – and imagine having to pay 35% of that as a big bribe tax to the US government to let you leave the country. 

I have always wondered how people could describe European countries as more egalitarian than the US.  Yeah, I know the income distribution tends to be flatter, but that is almost entirely because the rich are richer in the US rather than the poor being poorer.  But pure income distribution has always seemed like a terrible way to make comparisons.  My perception has always been that class lines in Europe are much harder than they are in the US.  The elites in Europe have made a sort of arrangement in which they pay off the masses with an income floor and low work expectations in turn for making sure that none of the masses can in turn challenge their elite status or join their ranks.  The government protects large corporations form competition, foreign or domestic.  The government protects existing laborers against new entrants into the labor market.  The government makes it virtually impossible for the average guy to start a business.  The result is a lower and middle class who won’t or can’t aspire to breaking out of their class.  Elites are protected, and no one seems to care very much when political elites enrich themselves through public office and then entrench themselves and their families in the power system.  This, presumably, is why the American political class thinks so much of the European model.

Bryan Caplan writes via Marginal Revolution:

In the U.S., we have low gas taxes, low car taxes, few tolls, strict zoning that leads developers to provide lots of free parking, low speed limits, lots of traffic enforcement, and lots of congestion.

In Europe (France and Germany specifically), they have high gas
taxes, high car taxes, lots of tolls, almost no free parking, high
speed limits (often none at all), little traffic enforcement, and very
little congestion. (The only real traffic jam I endured in Europe was
trying to get into Paris during rush hour. I was delayed about 30
minutes total).

If you had to pick one of these two systems, which would you prefer?
Or to make the question a little cleaner, if there were two otherwise
identical countries, but one had the U.S. system and the other had the
Euro system, where would you decide to live?

Much as it pains me to admit, I would choose to live in the country
with the Euro system. If you’re at least upper-middle class, the
convenience is worth the price. Yes, this is another secret way that
Europe is better for the rich, and the U.S. for everyone else.

As a follow-up to this post on gas-price demagoguery, I would like to observe that the very same people who are most likely to demagogue about high gas prices in this country are the very same ones who advocate that the US adopt European-style taxation levels, regulatory policy, and CO2 targets, the results of which can be seen here:

If you can’t read the colors on the scale well, I think you can guess which is the US price line and which are the European gas prices.  Source here.  Just to be clear, this has nothing to do with wholesale gasoline prices, which are substantially similar between the US and Europe:

Since the difference in price does not go to the producer, I will leave it as an exercise to guess where the extra $5 per gallon is going (hint:  Uncle Francois)  The cognitive dissonance required to call for 80% CO2 reductions while simultaneously decrying $3.50 gas prices is just stunning to me.

Update:  From the same source, here are the gas prices in dollars per US gallon EXCLUDING taxes:

Update #2:  More here on Hillary’s sleight of hand.  And this from Robert Samuelson, at how this cognitive dissonance extends to exploration limits:

We could be producing more, but Congress has put large areas of
potential supply off-limits. These include the Atlantic and Pacific
coasts and parts of Alaska and the Gulf of Mexico.
By government estimates, these areas may contain 25 billion to 30
billion barrels of oil (against about 30 billion barrels of proven U.S.
reserves today) and 80 trillion cubic feet or more of natural gas
(compared with about 200 tcf of proven reserves).

What keeps these areas closed are exaggerated environmental fears,
strong prejudice against oil companies and sheer stupidity. Americans
favor both "energy independence" and cheap fuel. They deplore imports
– who wants to pay foreigners? — but oppose more production in the
United States. Got it? The result is a "no-pain energy agenda that
sounds appealing but has no basis in reality," writes Robert Bryce in
"Gusher of Lies: The Dangerous Delusions of ‘Energy Independence.’ "

Hillary has jumped on the gas tax holiday along with John McCain.   Kevin Drum calls it pure demagoguery (he probably wouldn’t have been so blunt about Hillary, but since he already derided McCain for the idea, he has the good grace to apply the same criticisms to Hillary:

I’d say there’s approximately a zero percent chance that Hillary
Clinton or John McCain actually believe this is good policy. It would
increase oil company profits, it would make hardly a dent in the price
of gasoline, it would encourage more summertime driving, and it would
deprive states of money for transit projects. Their staff economists
know this perfectly well, and so do they.

But they don’t care. It’s a way to engage in some good, healthy
demagoguery, and if there’s anything that the past couple of months
have reinforced, it’s the notion that demagoguery sells. Boy does it
sell.

I tend to agree with Drum.  The gas tax, at least when applied to its original purpose of funding highways and roads, is one of the better taxes out there, doing a pretty good job of matching the costs of roads to the users of the roads.  However, I did make this point in Drum’s comment section:

I am glad you see that an 18.4 cent gas price reduction is small compared to the total price and proposing such a reduction by government fiat is pure demagoguery. 

I would like to point out that most oil companies have a profit on a wholesale gallon of gas that is also about 18-20 cents.  The reason they make so much money is that they sell a lot of gallons of gas (plus many other petroleum products).  So is it similarly pure demagoguery to blame oil company profits for the price of gas, or to suggest government schemes (e.g. windfall profits tax) to reduce these profits?

By the way, Hillary is particularly hypocritical on this, because she has adopted the 80 by 50 CO2 target (80% reduction by 2050).  To meet this target, which I think would be an economic disaster, is not going to require an 18.4 cent gas tax, but something like a $10 a gallon gas tax, or more.  Since she has adopted her 80 by 50 target, her correct answer on gas taxes should not be to propose a holiday, but to say "suck it up, because taxes are going to go a hell of a lot higher."  McCain, who has also adopted a CO2 target, though a less stringent one, is in the same boat.

Update:  OK, the $10 per gallon tax is probably gross under-estimated.  The number is likely to have to be much higher than that, given that Europeans are already paying nearly $10 a gallon and are not even in the ballpark of these CO2 targets.

Cost of gasoline
(U.S. Dollars per Gallon)
Date___     Belgium  France  Germany  Italy  Netherlands  UK  _ US
4/20/98     3.43___  3.44__  3.25___  3.48_  3.56_______ 4.04  1.21
4/21/08     8.62___  8.34__  8.58___  8.32_  9.51_______ 8.17  3.73

HT:  Hall of Record

Sixty-six years ago today, the Japanese attacked Pearl Harbor, which turned out to be about as smart of a strategic move as taunting the New England Patriots just before the game.  During subsequent years, there was an inevitable investigation into why and how the US got caught so flat-footed, and who, if anyone, was to blame.

Decades later, revisionist historians reopened this debate.  In the 1970′s, not coincidently in the time of Watergate and lingering questions about the Kennedy assassination and the Gulf of Tonkin, it was fairly popular to blame Pearl Harbor on … FDR.  The logic was (and still is, among a number of historians) that FDR was anxious to bring the US into the war, but was having trouble doing so given the country’s incredibly isolationist outlook during the 1920′s and 1930′s.  These historians argue that FDR knew about the Pearl Harbor attack but did nothing (or in the most aggressive theories, actually maneuvered to encourage the attack) in order to give FDR an excuse to bring America into the war.  The evidence is basically in three parts:

• The abjectly unprepared state of the Pearl Harbor base, when there were so many good reasons at the time to be on one’s toes (after all, the Japanese were marching all over China, Germany was at the gates of Moscow, and France had fallen) could only be evidence of conspiracy.
• The most valuable fleet components, the carriers, had at the last minute been called away from Pearl Harbor.  Historians argue that they were moved to protect them from an attack known to be coming to Pearl.  They argue that FDR wanted Pearl to be attacked, but did not want to lose the carriers.
• Historians have found a number of captured Japanese signals and US intelligence warnings that should have been clear warming of a Pearl Harbor attack.

I have always been pretty skeptical of this theory, for several reasons:

• First, I always default to Coyote’s Law, which says

When the same set of facts can be explained equally well by

1. A massive conspiracy coordinated without a single leak between hundreds or even thousands of people    -OR -
2. Sustained stupidity, confusion and/or incompetence

Assume stupidity.

I think it is more than consistent with human history to assume that if Pearl Harbor was stupidly unprepared, that the reason was in fact stupidity, and not a clever conspiracy

• The carrier argument is absurd, and is highly influenced by what we know now rather than what we knew in December of 1941.  We know now that the carriers were the most valuable fleet component, but no one really knew it then (except for a few mavericks).  Certainly, if FDR and his top brass knew about the attack, no one would have been of the mindset that the carriers were the most important fleet elements to save.
• I find it to be fairly unproductive to try to sort through intelligence warnings thirty years after the fact.  One can almost ALWAYS find that some warning or indicator existed for every such event in history.  The problem occurs in real-time, when such warnings are buried in the midst of hundreds of other indicators, and are preceded by years of false warnings of the same event.
• I don’t really deny that FDR probably wanted an excuse to get the country in the war.  However, I have never understood why a wildly succesful Japanese attack on Pearl Harbor was more necessary than, say, an attack met strongly at the beach.  I can understand why FDR might have allowed the attack to happen, but why would he leave the base undefended.  The country would have gotten wound up about the attack whether 5 ships or 10 were destroyed.

It is interesting how so much of this parallels the logic of the 9/11 conspiracists.  And, in fact, I have the same answer for both:  I don’t trust the government.  I don’t put such actions and motivations past our leaders.  But I don’t think the facts support either conspiracy.  And I don’t think the government is capable of maintaining such a conspiracy for so long. 

The amount I know about Belgium could probably be written on a post card (except for its role in military history, which is substantial due to its location and its famously brave stand against Germany in the opening act of WWI).  So this article about the tremendous split developing between French (Wallonia) and Flemish (Flanders) Belgium was new to me.  In particular, I noted this:

Every year 6.6% of Flanders’ GDP is spent on welfare in Wallonia.
The money has not helped the Walloons but turned them into welfare
addicts. Belgium is a case study of how socialist redistribution
schemes lead to economic perversions.

It appears that 60% of Wallonians are either unemployed or on the government payroll (roughly the same thing in Europe), vs. just 28% in Flanders.  And this despite the fact that Brussels and the EU HQ are in Flanders.

Apparently, the French government is planning to sink a couple of Billion euros into a risky new technology called an "internet search engine." (via hit and run)

Germany and France had initially discussed plans to commit €1 billion
to €2 billion, or $1.3 billion to $2.6 billion, over five years to
Quaero. The project was to have been paid for by the French and German
governments, with contributions from technology companies like Thomson
and France Télécom on the west side of the Rhine, and Siemens and
Deutsche Telekom to the east.

In related news, the French government also announced a massive technology development effort to invent some kind of round thing for cars to roll around on.

How can you resist that title?  I took this from Stephen Ambrose’s wonderful Citizen Soldiers:

Patton entered the town [of Bitburg, Germany] from the south while the fighting was still going on at the northern edge of town.  "In spite of the fact that the shells were falling with considerable regularity, I saw five Germans, three women and two men, re-roofing a house.  They were not even waiting for Lend-Lease, as would be the case in several other countries I could mention [including France]."   Dozens of GIs make the same point:  in Italy and France, the residents left the rubble in the streets, waiting for someone else to clean it up, while in Germany the residents were cleaning up as soon as the battle passed their villages.

Does this make anyone else think of Katrina and New Orleans?  I guess they don’t call it the French Quarter for nothing.

Economics have a concept called the "broken window fallacy" that many of the media to this day do not understand.  Here is an example:  Every hurricane season, the media always writes a "silver lining" story about how recovery from a devastating hurricane spurred the local economy.  One might assume from this reasoning that it is good to go around breaking windows, since one will make a lot of work for glaziers and boost the economy.  The problem is what is not measured.  What would the money that was spent on window replacement have been spent on instead?  It is a safe presumption that had they not had to repair storm damage, they would have spent the money on something more productive  (test:  if this were not true, everyone would be breaking their own windows).  Advocating the broken window fallacy is a bit like saying that stealing money from banks would increase the savings rate, since people would have to deposit even more money to replace that which was stolen.

Anyway, I bring this example up because today I saw the most amazing example of the broken window fallacy I have ever seen, via Kevin Drum and Business Week:

 Business Week’s cover story in their current issue tells us that healthcare inefficiency is what’s keeping the American economy afloat:

The
very real problems with the health-care system mask a simple fact:
Without it the nation’s labor market would be in a deep coma.  Since 2001, 1.7 million new jobs have been added in the health-care sector, which includes related
industries such as pharmaceuticals and health insurance. Meanwhile, the
number of private-sector jobs outside of health care is no higher than
it was five years ago.

…. The U.S. unemployment rate is 4.7%, compared with 8.2% and
8.9%, respectively, in Germany and France. But the health-care systems
of those two countries added very few jobs from 1997 to 2004, according
to new data from the Organization for Economic Cooperation &
Development, while U.S. hospitals and physician offices never stopped
growing. Take away health-care hiring in the U.S., and quicker than you
can say cardiac bypass, the U.S. unemployment rate would be 1 to 2
percentage points higher.

….Both sides can agree that more spending on information
technology could reduce the need for so many health-care workers. It’s
a truism in economics that investment boosts productivity, and the U.S.
lags behind other countries in this area. One reason: "Every other
country has the payers paying for IT," says Johns Hopkins’ Gerard
Anderson, an expert on the economics of health care. "In the U.S. we’re
asking the providers to pay for IT" — and they’re not the ones who
benefit.

Let’s go back to slow-motion instant replay.  What was that first line?

Business Week’s cover story in their current issue tells us that healthcare inefficiency is what’s keeping the American economy afloat

I am not seeing things, am I?  Did he really write that it is the inefficiency of one of the largest and most ubiquitous and perhaps most important industries in the country that is propelling the economy?  Do I really have to state the obvious?  Do you really think that if all those people were not hired to push paper around in health care they would be sitting unemployed today?  What about all the money either consumers or corporations would be saving from more efficiency — would that really not have been spent on something else?

In a way, I guess this is sort of consistent with Drum’s position on Wal-Mart.  If Wal-Mart is detroying the economy (according to him) by bringing increased productivity to retail, I guess this argument that health care inefficiency helps the economy is at least consistent.  Maybe if we could get our state drivers’ license agency folks to take over the whole economy, we would have a boom! And the old Soviet Union must have been an economic powerhouse!

This is some of the worst economics I have seen in a while.  Lefties like Drum often rail against conservatives for being anti-scientific in their opposition to teaching evolution or approving the morning-after pill, but for God sakes the most fundamentalist Bible-belt home schooled conservative Christian probably knows more about the science of evolution than journalists understand about the science of economics.

Not really forewarned about this social trend in advance, my family was surprised to find that many restaurants in smaller English towns would not let us in with our children.  I wrote about the strange Chitty-Chitty-Bang-Bang-esque reactions we got to our children here.

Reader Tom Van Horn sends in this update from Newsweek:

a recent British study showed a house’s value drops by 5 percent if
neighbors move in with teenage kids. Hotels are catering to the
childless, too; Italy’s La Veduta country resort promises, "Your Tuscan
holiday will not be shattered by the clamor of children." In Rome, many
restaurants make it clear that children are not welcome—in some cases
by establishing themselves as "clubs," where members must be older than
18 to join.

*shrug*  There are times when my wife and I like to get away from kids too, and we have a couple of them.  I know a few couples who have chosen to remain childless and I can assure you they are sick and tired of being asked about their childlessness like it was some kind of disease.  I am sure they will welcome a sense of normalcy for their chosen way to live.  Combining this trend with my observation that Parisians will take their dog anywhere, it is probably not long before there are public places in Paris where dogs are welcome but kids are not.

That doesn’t mean that everyone shares my willingness to let folks live in peace like they choose.  Certain politicians around Europe seem to want to intervene (and isn’t that why people become politicians in the first place — to force other people into making choices that they would not have made for themselves?)

Politicians and religious leaders warn darkly of an "epidemic" of
childlessness that saps the moral fiber of nations; they blame the
child-free for impending population decline, the collapse of pension
systems and even the rise in immigration. In Japan, commentators have
identified the "parasite single" who lives off society instead of doing
his duty to start a family

In Germany, where the childless rate is the
highest in the world, at 25 percent, the best-seller lists have been
full of tomes forecasting demographic doomsday. In "Minimum," the
conservative commentator Frank Schirrmacher describes a "spiral of
childlessness," where a declining population becomes ever more
reluctant to have kids. Media reports have stigmatized the "cold career
woman"—one such recent article came with mug shots of childless female
celebs—accusing them of placing their jobs before kids. Never mind that
Germany trails its neighbors in the availability of child care, or the
amount of time men spend helping around the house.

From
Germany to Russia, there is increasing talk of sanctions against the
childless. In Slovakia, a leading adviser on the government’s Strategic
Council on Economic Development proposed in March to replace an
unpopular payroll tax with a levy on all childless Slovaks between the
ages of 25 and 50. In Russia, where the birthrate has dropped from 2.3
in the 1980s to 1.3 today, a powerful business lobby has called for an
income-tax surcharge on childless couples. In Germany, economists and
politicians have demanded that public pensions for the childless be
slashed by up to 50 percent—never mind that such pensions were invented
as an alternative to senior citizens’ having to depend on their
offspring.

Not being much of a pro soccer fan, I have been surprised to find that the sport can be compelling, at least in stretches.  For example, the 30 minutes of overtime between Italy and Germany was quite exciting.

However, I think the sport should be ashamed at the state of affairs in its refereeing.  In any one game, you might see players rolling around on the ground faking injuries as many as 15 or 20 times.  It became a source of immense amusement for my son and I to see not only how much faking was going on, but how often the faking involved holding a body part that seemed unrelated to any contact  (e.g. holding their head as if they received a concussion when they were accidentally tripped).  If these were all real injuries, the field would look like Omaha beach by the end of the game.

Why do they do it?  Because the referees reward them for it, of course.  It was pretty clear that on many occasions acting and injury-faking turned accidental falls into penalties and minor penalties into yellow and red cards.  It’s disgraceful.  I know refereeing is hard given the speed of today’s athletes, but for god sakes soccer has got to be an order of magnitude easier to referee than say basketball or particularly American football. 

Even more, I wonder why fans tolerate the pretend injuries?  Can you imagine Pittsburgh Steelers fans fondly embracing a wide receiver that faked ankle injuries two or three times a game to try to get an interference call?

Most all the regulation goals in later games of the world cup have been
scored on penalty kicks.  It seems that the game has devolved into
lofting the ball into the box and then hoping to draw a penalty, sort
of like a hail Mary play at the end of a football game.  I would love
to see the game opened up a bit to allow more scoring of real goals in
regulation — how about eliminating the offsides penalty?

Per the NY Times:

As he left the soccer field after a club match in the eastern German
city of Halle on March 25, the Nigerian forward Adebowale Ogungbure was
spit upon, jeered with racial remarks and mocked with monkey noises. In
rebuke, he placed two fingers under his nose to simulate a Hitler mustache and thrust  his arm in a Nazi salute.

In April, the American defender Oguchi Onyewu, playing for his
professional club team in Belgium, dismissively gestured toward fans
who were making simian chants at him. Then, as he went to throw the
ball inbounds, Onyewu said a fan of the opposing team reached over a
barrier and punched him in the face….

Players and antiracism experts said they expected offensive behavior
during the tournament, including monkey-like chanting; derisive
singing; the hanging of banners that reflect neofascist and racist
beliefs; and perhaps the tossing of bananas or banana peels, all
familiar occurrences during matches in Spain, Italy, eastern Germany
and eastern Europe.

I am sure many American black athletes still have stories to tell about encountering racism, but didn’t we at least climb out of this kind of pit of overt racism forty years ago or so?  While European sophisticates have looked down their noses at US racial problems, European monocultures seem now not to be ahead of us but behind us in dealing with ethnic diversity.  Though there do seem to be plenty of Americans who long to take our country back to being a monoculture.

Every small business probably has stories about vendors who are particularly difficult to work with.  Let me describe my most difficult and irritating vendor, someone who sells me products that we resell in our stores:

• Most vendors try to set your retail price for you, but are seldom successful.  Only in countries like Germany that make retail discounting illegal are such attempts universally successful.  However, this one vendor is always successful at setting my retail price.
• Most vendors allow me a retail gross margin of at least 30-50% of sales to help me to make money on the sale of their product.  They like me to make money, since that gives me the incentive to sell more of their product.  However, this one particular vendor only allows me a 5% gross margin.  Ironically, this products is on of the most difficult and time-consuming for our stores to sell, requiring ten minutes of sales time to gather all the necessary customer information and complete the transaction.  Every single one we sell is a dead loss to us.
• Every small business has some vendors it struggles with on credit terms.  I usually have to fill out a detailed credit application, and as the owner have to personally guarantee the company’s payment on the account.  Sometimes vendors will require a few orders be consummated COD so we can develop a history before they will go to a 30-day invoicing approach.  However, this particular vendor goes even further.  I had to set up a dedicated bank account into which I deposit funds for this vendors products every week.  In addition, I had to obtain a $4000 bond to cover any non-payment in the account, and I have to hold the bond as long as I want to do business with this vendor — in other words, there is no credit given for a long track record of performance on the account.
• This particular vendor has an "in" with the State of Colorado, which protects it by allowing no other competitive product to be sold in the state.

Give up?  Well, most of you have probably guessed that this vendor is… the government!  Or specifically, the Colorado Department of Wildlife and the specific product discussed is fishing licenses.  That is why this particular vendor can get away with practices that no company that actually has to compete in the market place would ever attempt, and, in a couple of cases, gets aways with practices that would be illegal for a private company.

When I bought this company, we used to sell fishing licenses at many of our locations.  I have pared this down to only the bare minimum number of locations, like marinas, where customers absolutely expect me to be able to sell them a license.

Groups like the NAACP are actively pursuing claims for compensation from both corporations and governments for slavery in the United States 140 or more years ago (that’s 7+ generations in the past).  The particular article linked is on seeking reparations from corporations, but many efforts exist to extract compensation from taxpayers, e.g. you and I.

Lets forget for a minute why I owe money for what my great-great-great-great-great grandfather did to your great-great-great-great-great grandfather.  Lets even forget that my great-great grandparents and all preceding generations of my family did not even live in this country.  Forget even about whether a statute of limitations has been exceeded by waiting 140+ years and seven or more generations to file a claim.

Lets however ask the question of what damages are incurred by the current generation of African-Americans who are decedents of American slaves.  Clearly the slaves themselves were irreparably harmed by slavery, but lets talk about the people who are actually bringing the suit.

If it were not for slavery, then many African-Americans today would be … in Africa.  And in Africa, they would very, very likely be in horrible mind-numbing poverty (see Live8).  Its hard to pin down a number, but estimates of average incomes in Sub-Saharan Africa are between $600 per year and $1,770 per year.  By comparison, the average income of an African American was $14,397 in 1999 and is certainly higher today, since black incomes are growing rapidly in this country and actually falling in Africa.  And African American life expectancies, which still have some catching up to do with whites in the US, are nevertheless 10-25 years longer than their counterparts in the old country.  Everything from AIDS survival rates to education levels to VCR ownership and Internet access are far superior for American blacks than blacks in Africa.  So in this context, how does one demonstrate economic damages from slavery?

If I were an African American, I would give thanks every day that my ancestors endured the torture and humiliation and horror of slavery so that today my family could live, despite frustrations that sill exist for blacks, in relative wealth and prosperity and good health instead of some sub-Saharan shit-hole.

One Note:  I have certainly gotten some interesting emails on this one, including at least one "you will roast in hell" offering.  One comment I have gotten several times is "But there is no statute of limitations on murder, so how can there be on slavery?"   To which I answer – yes, there is not statute of limitations on murder, BUT, if we fail to catch a murderer in his lifetime, we don’t throw his kids or grandkids in jail in his stead, nor do we ask his grandkids to pay reparations for his murders.  If we suddenly could absolutely prove the identity of Jack the Ripper, would we track down all his descendants and sue them for his actions? 

The second comment I get, presumably from African-Americans by the pronouns "I" and "we" used in the emails, is "we had our heritage ripped away".  I will confess that I may have a blind spot on this loss-of-heritage issue.  My great-grandparents were forcibly exiled from Germany about a century ago, and I don’t shed any tears for my lost heritage, particularly given Germany’s atrocious actions during the twentieth century.  I am thrilled to be an American and reject or at least ignore my German heritage.  I am not at all saddened my disconnectedness from the Kaiser or Hitler, and am not sure in turn that if I was black I would feel a loss from not being closer to Robert Mugabe or any of a zillion other repressive African regimes. 

By the way, in terms of being disconnected from one’s heritage,  I have no way to prove it or get the numbers, but I would be willing to be that there are more college students right now studying black and/or African history in the US than in the whole of Africa.

I am a little late linking this, but the world is in the midst of one of those pure, tightly controlled experiments to demonstrate the true price of socialism.  And, as usual, no one will learn from it.  Via Jane Galt:

It is depressing to look back at history and see how regularly the same
nice-sounding idea–"let’s take the land from the rich people who unjustly own
it and give it to those who need it"–turns into tragedy for everyone. It’s even
more depressing to realise that despite the seeming predictibility of the
result, lots of people want to do it anyway.

The Atlantic, which she quote in a follow up post, has more detail:

Mugabe decided on what he called "fast-track land reform" only in February of
2000, after he got shocking results in a constitutional referendum: though he
controlled the media, the schools, the police, and the army, voters rejected a
constitution he put forth to increase his power even further. A new movement was
afoot in Zimbabwe: the Movement for Democratic Change—a coalition of civic
groups, labor unions, constitutional reformers, and heretofore marginal
opposition parties. Mugabe blamed the whites and their farm workers (who,
although they together made up only 15 percent of the electorate, were enough to
tip the scales) for the growth of the MDC—and for his humiliating rebuff.

So he played the race card and the land card. "If white settlers just took
the land from us without paying for it," the President declared, "we can, in a
similar way, just take it from them without paying for it." In 1896 Africans had
suffered huge casualties in an eighteen-month rebellion against British pioneers
known as the chimurenga, or "liberation war." The war that brought Zimbabwean
blacks self-rule was known as the second chimurenga. In the immediate aftermath
of his referendum defeat Mugabe announced a third chimurenga, invoking a valiant
history to animate a violent, country-wide land grab…

The drop-off in agricultural production is staggering. Maize farming, which
yielded more than 1.5 million tons annually before 2000, is this year expected
to generate just 500,000 tons. Wheat production, which stood at 309,000 tons in
2000, will hover at 27,000 tons this year. Tobacco production, too, which at
265,000 tons accounted for nearly a third of the total foreign-currency earnings
in 2000, has tumbled, to about 66,000 tons in 2003.

Mugabe’s belief that he can strengthen his flagging popularity by destroying
a resented but economically vital minority group is one that dictators elsewhere
have shared. Paranoid about their diminishing support, Stalin wiped out the
wealthy kulak farming class, Idi Amin purged Uganda’s Indian commercial class,
and, of course, Hitler went after Jewish businesses even though Germany was
already reeling from the Depression. Whatever spikes in popularity these moves
generated, the economic damage was profound, and the dictators had to exert
great effort to mask it.

Overall, the country has gone from a net exporter of food to outright famine.  For this particular experiment, I am happy to live in the control group.  Stay tuned, as this show is likely to hit the road soon and move to Venezuela. 

GWB seems to have riled lots of folks up over his reference in a recent speech to Yalta.  If you have read any of the comentary from the left, you might be imagining he said all kinds of wild things.  I read much of the commentary before I ever read Bush’s words, so I was prepared for a real gaffe.  After reading his speech, I was left wondering if those attacking Bush heard the same speech.  Here is the key paragraph:

As we mark a victory of six days ago — six decades ago, we are
mindful of a paradox. For much of Germany, defeat led to freedom. For
much of Eastern and Central Europe, victory brought the iron rule of
another empire. V-E Day marked the end of fascism, but it did not end
oppression. The agreement at Yalta followed in the unjust tradition of
Munich and the Molotov-Ribbentrop Pact. Once again, when powerful
governments negotiated, the freedom of small nations was somehow
expendable. Yet this attempt to sacrifice freedom for the sake of
stability left a continent divided and unstable. The captivity of
millions in Central and Eastern Europe will be remembered as one of the
greatest wrongs of history.

I am not sure how you can disagree with this.  I think the US owes Eastern Europe a big appology for selling them out at Yalta.  Now, one can argue that we had some reasons for our actions at Yalta.  First and foremost, we were exhausted from the worst war in history, and no one had the energy to gear up for a new confrontation.  Also, one can argue that it may be 20/20 hindisght that causes us to be more aware of Soviet hegemonic intentions than the actors at the time might have been (though certainly Churchill was fully cognizant of the dangers).  But, no matter how you cut it, small countries like Latvia were wiped out of existance and handed over to the Soviet Union by the Yalta agreement, and Bush’s audience was made up of people still stung by this.  I think the comparison to Munich is very apt – the US post-WWII was exhausted and was more than ready to suspend disbelief and hope that appeasing Soviet territorial ambitions would head off a fresh confrontation no one had the will to fight.  Reason’s hit and run has a nice roundup and further analysis.

The only explanation I can come upfor the uproar is that FDR, like Reagan and Kennedy, has an incredibly powerful though informal legacy protection society that leaps into action at even the smallest attempt to besmirch his historical halo.  In this case, Bush rightly does not even mention FDR; however, since FDR was the main advocate for pandering to Stalin at Yalta (against Churchill’s vociforous but ultimately ignored objections), his defense forces feel the need to jump into action.  I would have hoped that with 3 generations separating us from FDR, we could finally look at him objectively.  He fought a fabulous war, in some sense carrying the whole free world on his shoulders for four years.  But he fumbled the peace, though, and screwed up at Yalta.

UPDATE:  Professor Bainbridge has this nice quote from Latvian President Vaira Vike-Freiberga a few days before Bush’s speech:

In Latvia … the
totalitarian occupation … of Nazi Germany was immediately replaced by
another – that of Stalinist totalitarian communist Soviet Union and was
one that lasted a very long time. The day we shall be commemorating
does have double significance and by coming to the Baltic States
President Bush is, I believe, underscoring this double meaning of these
historic events. 60 years ago when the war ended it meant liberation
for many, it meant victory for many who could truly rejoiced in it.

But for others it meant slavery, it meant occupation, it meant
subjugation, and it meant Stalinist terror. For Latvia the true day of
liberation came only with the collapse of the Soviet Union as it did
for our neighbours Lithuania and Estonia.

Sounds a lot like what Bush said.  Seems like Bush is in pretty good touch with the sentiments of the Latvian people he is speaking to.

There is a widespread notion that the Scandinavian countries somehow have crafted for themselves the highest standard of living in the world.  This never made much sense to me, since I just couldn’t believe their socialist economies could really create the wealth needed to support this alleged standard of living.  As it turns out, they can’t and don’t, and owe their reputation more to PR than reality:

THE received wisdom about economic life in the Nordic countries is
easily summed up: people here are incomparably affluent, with all their
needs met by an efficient welfare state. They believe it themselves.
Yet the reality – as this Oslo-dwelling American can attest, and as
some recent studies confirm – is not quite what it appears….

All this was illuminated last year in a study by a Swedish research
organization, Timbro, which compared the gross domestic products of the
15 European Union members (before the 2004 expansion) with those of the
50 American states and the District of Columbia. (Norway, not being a
member of the union, was not included.)

After adjusting the
figures for the different purchasing powers of the dollar and euro, the
only European country whose economic output per person was greater than
the United States average was the tiny tax haven of Luxembourg, which
ranked third, just behind Delaware and slightly ahead of Connecticut.

The next European country on the list was Ireland, down at 41st
place out of 66; Sweden was 14th from the bottom (after Alabama),
followed by Oklahoma, and then Britain, France, Finland, Germany and
Italy. The bottom three spots on the list went to Spain, Portugal and
Greece.

Alternatively, the study found, if the E.U. was treated
as a single American state, it would rank fifth from the bottom,
topping only Arkansas, Montana, West Virginia and Mississippi. In
short, while Scandinavians are constantly told how much better they
have it than Americans, Timbro’s statistics suggest otherwise. So did a
paper by a Swedish economics writer, Johan Norberg.

So Europeans, in terms of being well-off, rank right up there with… Appalachia.  "Jimmy, you have to finish that liver – you know there are starving kids in Norway that would love to have that food."

Anyway, if this topic interests you, of true comparisons of US vs European economies, income distribution, work weeks, etc., Cowboy Capitalism is a good place to start.  (hat tip Instapundit)