Monday, July 26, 2010
Nevertheless, though economics considers transactions involving basic math, the theories about those transactions are anything but basic. Keynesian, Post-Keynesian, Consumer Theory, Value Theory, The Austrian School and Time-Based Economics: these are but a few of the many, and in the process of explaining the simple process of buying and selling we have moved from simple math to statistical analysis and beyond, into the mystical realm of human psychology.
Yet few if any of us pause to consider whether the Keynesians or the Austrians are to blame when it takes 50 bucks to fill the gas tank or when the power company raises it rates. In fact, the recent rate hike by Blue Ridge Mountain EMC has caused quite a stir in our local communities and there is plenty of blame, most of it directed at the power company. Some of the theories as to the reasons for this rate increase would make a Keynesian blush. I took some time this weekend to examine the numbers behind this rate hike.
Looking at the power company’s own statistics, it appears that they have joined a growing number of Americans including our national government, our state government, hundreds of thousands of banks and corporations, millions of small businesses and tens of millions of American citizens in that their debt to income ratio has grown to an unsustainable level. How did this happen?
Again, the numbers tell the story, and the culprit isn’t the new facility they are building, which has been a favorite target for some. That project will add a whopping $1.49 to the average electric bill. The “culprit,” in fact, is the unplanned and unregulated growth which we have railed against in this column for years, and the story of how that happened is a familiar one to our readers.
We have a relatively low population density in our area compared to many other parts of the state. Our residents are spread out over a large area on terrain that is often difficult to access. Consider the number of trophy homes perched on steep inclines or on ridge tops that no fire truck will ever reach. Consider the house tucked away at the end of a long and winding pig trail that the county will never pave, yet the power company is required by law to provide electricity to each and every outpost in their service area. Multiply the number of pretentious perches and pig-trail palaces by the number of years we allowed, in fact encouraged, unregulated growth in this area. Factor in the often overlooked fact that it usually takes decades for a power company to recoup the costs of providing service to that floodlight we see glaring out from the top of the mountain. Can you do the math?
When it is all said and done and no matter how the numbers are presented, there will still be some who prefer to understand current events in terms of conspiracy or malfeasance. There is a simple answer to those accusations, and I found the numbers on a website provided by the Georgia Public Service Commission at http://www.psc.state.ga.us/electric/surveys/2010/allprowin10.asp. This website compares rates for all electricity providers in the state of Georgia and the most recent comparisons are for the winter of 2010. In the 1000 to 1500 KWh range, the cost of electricity in our area was the 17th cheapest in the state. There were 77 electric providers that were more expensive. If you add our recent 6% rate increase, we are still well within the top third for cheapest electric rates, and by the time the next numbers are published, many electric providers will have raised their rates as well, including a likely 10% increase by Georgia Power.
Think about that for a moment. With a lower population density over the most extreme terrain in the state, even with the rate increase our EMC provides power at a rate that is cheaper than what most Georgian’s pay. According to the math I learned in school, this means that they are doing their job more efficiently than most of their peers. Look at the numbers for yourself, and if you still want to punish the power company, you might try turning off those floodlights.
Monday, July 19, 2010
Some unknowns in life are easy to discover. All you have to do is pay attention and remember what you see. This is called “experiential education,” and it is widely considered the best way to learn. Thanks to experiential education, I never buy any processed food with the word “delight” on the label. I tend to avoid eateries named after any part of a chicken and businesses which have the words “and more” attached to their names.
Some of life’s questions are arguably a complete waste of time and resources. Consider the recent media spectacle around the big question of whether a famous ball bouncer would play his game in this city or that. I saw the governor of Ohio singing an embarassing song of praise to this minor deity in a creepy video one morning before I had taken my first sip of coffee…and although I believe I should be able to eventually leave the disgusting memory behind without therapy, this spectacle which might otherwise be funny still leaves me saddened for what it says about our society and our pitiful and fawning worship of celebrity.
Some questions are extremely difficult to answer. Is capital punishment just or even effective? When is war justified? Is abortion “right” or “wrong?” I want to touch for a moment on the last question, and not because I think I can answer it. As a male, I’m not one hundred percent sure I even have a right to address it. It is a question of faith that we attempt to address in terms of science, even though we lack the science to completely answer it. Does human life begin at conception? How exactly do we define “human?” Does the soul enter the body at conception or when the body takes its first breath? What is a soul?
As a society we may never agree on these questions simply because, like all questions of faith, they exist beyond the reach of our science, beyond the reach of logic itself. This does not mean that we do not have the right to choose what we believe and to create customs and laws which reflect those beliefs. The problem is, what do we do when we need to make choices about issues upon which we strongly disagree? We have a system designed to do just that; a system where popular opinion begets legislation which is then filtered through the courts to become law. On the question of abortion our system has barely been able to handle such a polarizing issue, but it has been able to produce laws, though highly unpopular with many.
Which brings us to the point of this week’s discussion. This is an election year and the polarizing issue of abortion will once again be used as a litmus test by candidates who know that they can guarantee themselves a number of votes simply by stating a position on the issue. In Georgia’s governor’s race this year the “pro-life” or “pro-choice” position is at the top of the list of many candidates’ alleged qualifications for the job. At the risk of deeply offending some on either side of the issue, I must in all sincerity suggest to you that, in the context of impending economic disaster, with soldiers continuing to die in two wars often forgotten by the starry eyed public, and in the face of continuing environmental catastrophe – the issue of abortion is a red herring.
For many voters a candidate’s position on this single issue is enough to guarantee a vote without any further investigation of the candidate’s ideas or her past performance. Nevertheless I must continue to assert that voting for a pro-choice or pro-life governor, or president, will not change the law of the land. Millions of Americans voted for George Bush simply because he claimed to be a Christian and a pro-life candidate. After eight years of the Bush Administration, however, abortion was still legal and you would be hard pressed to demonstrate conclusively a single instance where the former president’s avowed religious beliefs affected the events which occurred during those years.
The business of politics divides to conquer. Yet after years of undermining and through the continuing assault on our Republic, the mechanism for change is still within our grasp. I challenge you, I beg you…in the upcoming elections please set aside the “litmus” positions and examine logically and dispassionately what the candidates are presenting. Set aside the façade of political party and try to assess who you think would be the best manager as opposed to the best figurehead, the best icon, or the best celebrity. Managers are what we need and the need is becoming desperate.
Every president in my lifetime and every governor has claimed to be a “Christian.” Let’s assume then that all the candidates are, and set aside this consideration. Most candidates choose to run as a democrat or a republican. Barak Obama ran as a democrat, yet if you put politics aside, some of his decisions would make any republican happy. Obama is a corporatist, as are many candidates wearing the democrat or the republican label. Set these labels aside. They mean very little when it comes to how a candidate will perform in office.
As for the issue of abortion, this is a question that will not be decided in a governor’s race or even a presidential election. This is a “bottom up,” not a “top down” issue. Laws on this issue change when society changes. Society becomes more educated, more mature and wiser – and it becomes less so. Laws will follow.
Monday, June 21, 2010
A visitor to our planet could gain some insight into our violent nature by simply studying the language. Consider some of our popular expressions: “Killer” and “that’s the bomb” are both used to express approval. When the alarm clock goes off at 5 AM we could kill for a cup of coffee. At the end of a long day, we crash. We are happy when our favorite team murders their opponents. Even political columnists refer to the “nuclear option.”
I began thinking about the subject of violence a few days ago when I discovered a nest of hornets on the grape arbor immediately adjacent to the only path through that part of the garden. Many peace loving and gentle people would think nothing of “nuking” a hornets’ nest, but I am a friend of hornets. Over the years I have learned to respect them. They are worth their weight in gold for the number of flies they catch and their stinging response, though it feels like being punched by a spiked fist, is usually always fair and balanced. Like a hive of honeybees their collective intelligence is surprising and where they are regularly exposed to humans they can learn to recognize individuals. I once blundered full on into a nest of hornets in the shrubbery behind the house. It had formed unseen along a path where I frequently passed and as I trimmed along with the hedge clippers I bumped the nest with my shoulder. I was stung once on the cheek and very lightly, a warning, while the rest of the hive flew around me entering and exiting the hive. I allowed the nest to stay where it was and moved the path. No one was stung again by a hornet that year.
The nest on the grape arbor was more of a challenge. It had formed on the base of a vine where the grapes needed some serious weeding. There was no other option for moving the path. As I stood there contemplating the unavoidable demise of the hornets, a scout flew out and hovered for a moment at eye level before returning to the nest. I remembered at that moment that hornets had been responsible for my third great life lesson in natural consequence (a hot stove and a sleeping cat being the first and second.) As a child I had discovered that a hornet can follow the exact trajectory of a rock thrown at her nest, tracing the projectile back along its path to administer justice to the thrower.
As I reluctantly turned towards the barn for the wasp and hornet spray, I noticed the hose which carries gravity fed water into the garden and my non-violent solution became apparent. A few minutes later a gentle stream of water was spraying the outside of the nest. Twenty four hours later the hornets had moved to a new location.
Violence is an unavoidable part of life – even a vegan must acknowledge the violence of the plow as it tears the earth and a tomato is just as alive as a kitten, though I do prefer tomatoes in my pizza sauce. Nevertheless, though violence is a given, a balance must be maintained. A good general out maneuvers his opponent to win the battle before the first shot is fired. A true martial artist never looks for a fight and when he must use force, turns his opponent’s violence against him. A good hunter takes only what he needs to eat. An effective peace officer is not just an enforcer but a member of his community and a role model.
It is a fair question to ask whether our culture is out of balance where violence is concerned. Our media is steeped in violence from the nightly shooting report to the movie of the week. We maintain two wars and over 140 military bases around the world. Our prisons are crowded and many of our neighborhoods are unsafe. Our young people steeped in a culture of violence run the risk of being desensitized to it, further escalating the problems we already face. “Hornets nests” are now abundant in the world, more, perhaps than we can afford to “nuke.” It would behoove us to consider our options.