Author Archives: Stephen VanDyke

Julie Borowski addresses the lack of female libertarians

Miss Julie Borowski — the latest cute blonde “token” libertarian girl — has been slaving away in front of the YouTube audiences for well over a year and racking up over a million views in the process. I’ve stayed away from exploiting championing the females of libertarianism (mostly due to a jealous girlfriend for many years, c’est la vie), but I’ll have to hand it to her for this latest video.

In the video, Borowski rhetorically asks, “Why are there so few female libertarians?”

She quickly answers “It has nothing to do with our philosophy. It is because libertarianism is not yet mainstream and part of popular culture.”

Borowski has previously lamented the lack of women libertarians on her blog. She writes, “Women are more likely to visit popular culture websites and connect with their peers on social media. Men are more likely to look at “nerdy” websites that discuss views that are outside of the mainstream like libertarianism.”

It’s easy to diss on women’s magazines and celebrity gossip culture for their lack of enthusiasm for libertarianism (or fiscal responsibility in general, their advertisers would run away in droves). Yet when it comes to the male equivalent, it’s only fair to say that we have our fair share of extremely anti-libertarian, irresponsible role models to contend with as well.

As for a pop culture solution for libertarians. Well, watching Borowski apply gobs of makeup and go off on a libertarian rant is certainly an entertaining start.

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Hammer of Truth™

I’ve been sorta quiet here at Hammer of Truth for a little while. Blame the holidays, but 2013 is finally upon us and we’re proud to announce that we’ve officially filed for trademark status with the Colorado Secretary of State.

In other “27B stroke 6″ news, Hammer of Truth is officially a publication owned by liberty sucker, LLC.

If we’re going over the fiscal cliff, perhaps all this paperwork will cushion the landing.

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Larry Pratt (Gun Owners of America) bests Piers Morgan

Another gun control debate where the knee-jerk reactionaries resort to name calling and emotional appeals — in contrast to calm-headed assessments of what is truly evil (certain people and policies which create victim zones).

Larry Pratt, the executive director of GOA, seems to be quite cool and calm, even laughing at the ridiculous claims of Piers Morgan who at one time or another during the badgering said the following things:

You are talking complete and utter nonsense….

What you just said, Mr. Pratt, was an absolute lie….

You’re an unbelievably stupid man, aren’t you?…

What a ridiculous argument. You have absolutely no coherent argument whatsoever. You don’t give a damn, do you, about the gun murder rate in America. You don’t actually care….

It’s complete nonsense….

I know why sales of these weapons have been soaring in the last few days. It’s down to idiots like you….

You are a dangerous man espousing dangerous nonsense, and you shame your country.

I don’t know what’s worse, the fact that some twat from England is trying to lecture Americans on gun ownership rights after yet another horrific shooting spree occurs in a “gun free zone” (a.k.a. where all the unarmed victims are), or the fact that we’re supposedly not allowed to laugh at his accent-laden stupidity.

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Penn Jillette frustrated debating anti-gun women

During a HOT TALK “debate” segment of The Wendy William’s Show — riddled with fallacies, factual errors and ganging up — Penn Jillette could be seen becoming visibly frustrated with the amount of ad hominem attacks against gun owners (the majority), folks with Asperger’s and a plethora of other boogeymen to blame for Adam Lanza’s horrific massacre in Newtown, Connecticut.

We’re thrilled that even with the multiple times Jillette is seen throwing up his hands at the amazing level of stupidity that host Wendy Williams, Sue Simmons, and Nicole Lapin kept clucking on about, he somehow manages to keep his cool (to a point). We’re not especially thrilled that he missed the opportunity (when he got a word or two in between bok boks) to educate them about the true reason for the second amendment, or the fact that the majority of shooting sprees have taken place in so called “gun free zones“.

Undoubtedly these three bitches will move on to talking about bullying or some other pop culture boogeyman without realizing the irony.

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“Penn & Teller: Bullshit!” episode on gun control laws

A worthy flashback to some common sense on gun control, and why it’s against everything libertarians stand for:

Warning: contains explicit language older people tend to frown upon. But, fuck it… you’re an adult that can handle it.

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Rapper Big Boi: Trashing Obama, praising Gary Johnson

Atlanta rapper Big Boi (of Outkast fame) was interviewed by Pitchfork, and he’s mighty unimpressed by Obama:

Pitchfork: You had a few things to say about Obama on Sir Lucious, but it was recorded before he became president. And there was your song “Sumthin’s Gotta Give” with Mary J. Blige where she sang about cheering for Obama…

BB: I didn’t tell her to do that.

Pitchfork: No? She just did it?

BB: On my damn record. I had a problem with it. I’m not pro-government at all, I’m pro-people. Our freedoms are getting taken away every day with things that people aren’t aware of, like the [National Defense Authorization Act]. I don’t care who the president is– it ain’t just all about who’s black or who’s white or who’s Republican or Democrat, it’s about who is for the betterment of people, period.

Pitchfork: Do you have any feelings about Obama’s first term now that he’s been re-elected?

BB: Nope. What did he do? They say he’s trying to clean up a mess, right? Well, he needs a big-ass broom, and he gotta keep on sweeping. I ain’t on nobody’s team, you feel me? I’m about the American people.

And last month, he was on Hot 97 in NYC where he claims it was racist of some people to assume he (or other black people) voted for Obama, when in fact he says he voted for Gary Johnson:

Is Obama’s allure with the hip hop greats coming to an end? We’ll let you know when Jay Z gets his act together.

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Sign of the times: “Who is John Galt?” sign adorns closed Hostess store

Via Tom Knapp at Kn@ppster comes this cheeky reminder that if you fuck with capitalists/free-marketeers… we’ll let the parasites have our companies exactly the way we found them: nonexistent.

Good job America. You voted for socialism (again), and now there’s no more Twinkies. Well, at least not until new owners can swoop in and (maybe) pick up the pieces.

I’m looking forward to seeing a Galt wannabe come in with a non-union shop and slap the dollar sign ($) on the restored baked goods.

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Add another star, Puerto Ricans want statehood (or not)

In October, we informed you that Puerto Rico would be voting on whether to become the 51st member of the United States of America. It appears the majority of voters there may get their wish, but only if Republicans don’t drag their heels and block the process for purely political reasons:

VOTERS may have voted for more of the same in America on election day, but in Puerto Rico they opted for decisive change. In a two-stage plebiscite—the island’s fourth referendum regarding its relationship with the United States—54% of the electorate voted to change Puerto Rico’s current status as a self-governing “commonwealth”, and 61% wanted the new form of government to be full American statehood.

[...] The vote will not have immediate consequences. Congress would have to pass a law admitting Puerto Rico for it to become a state. With a fiscal squeeze looming at the start of 2013 lawmakers will have their hands full in the coming months. And the island’s government is unlikely to push the issue aggressively following the election as governor of Alejandro García Padilla, who supports a continued commonwealth.

Moreover, the Republican-controlled House of Representatives has little incentive to address the topic. According to exit polls, 83% of boricuas on the mainland voted for Barack Obama. Statehood would add two Senate seats and a House delegation of five, the same size as Oregon’s and probably as reliably Democratic.

Unless the island holds another vote that yields a different result, however, Puerto Rico has now officially requested statehood. If Democrats retake the House in 2014, they would be well-advised to try to add a 51st star to the flag.

As a libertarian-republican with Puerto Rican friends dotted across the country, I say give the people what they voted for.

After all, once Puerto Ricans become full-blown hard-working Americans subjugated by the IRS like the rest of us, they will certainly not be so enthused about the Democrat Party’s nonsense core tenet of redistribution of wealth.

Update: A commenter here at HoT aptly points out that all is not as it appears.

José writes, “Puerto Ricans did not vote for statehood. When you add the votes in favor of independence as well as the blank votes which were casted [sic] in protest, along with those also casted [sic] in protest in favor of a sovereign comonwealth [sic], statehood just got the typical 45%.”

He continues, “Now, you’re probably asking yourselves why would anyone vote a certain way in protest? The answer is very simple: the Commonwealth option was NOT incuded [sic] in the referendum.”

The status referendum results do indeed show that while a majority chose to change the status of their country, a minority actually chose statehood with 480,749 casting blank protest ballots. “55% of the residents of Puerto Rico REPUDIATED statehood.”

“They just want to fix what they have so they can sustain their own economy without having to endure the indignity of Washington’s handouts.” I couldn’t agree more.

And yes José, I like spending words (especially for making corrections and clarification), I hope you’ll oblige a few more.

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Wherein reason commenters sing our (dead) praises

Reason.com has a piece on which writers turned people on to freedom.

However, what caught my eye was some traffic coming from a link the comments, where rumors of HoT’s death are being bandied about.

Firstly: thank you. Hammer of Truth never dies, but it was comatose.

Secondly: we’re supposed to be dead and you bastards never even sent flowers? Am disappoint.

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Ron Paul praises price gouging

Sure, I called it. But isn’t that special when Ron Paul backs me up on simple free market economics:

Had gas stations been allowed to raise their prices to reflect the increased demand for gasoline, only those most in need of gasoline would have purchased gas, while everyone would have economized on their existing supply. But because prices remained lower than they should have been, no one sought to conserve gas. Low prices signaled that gas was in abundant supply, while reality was exactly the opposite, and only those fortunate enough to be at the front of gas lines were able to purchase gas before it sold out. Not surprisingly, a thriving black market developed, with gas offered for up to $20 per gallon.

With price controls in effect, supply shortages were exacerbated. If prices had been allowed to increase to market levels, the profit opportunity would have brought in new supplies from outside the region. As supplies increased, prices gradually would have decreased as supply and demand returned to equilibrium. But with price controls in effect, what company would want to deal with the hassle of shipping gas to a disaster-stricken area with downed power lines and flooded highways when the same profit could be made elsewhere? So instead of gas shipments flooding into the disaster zones, what little gas supply is left is rapidly sold and consumed.

Governments fail to understand that prices are not just random numbers. Prices perform an important role in providing information, coordinating supply and demand, and enabling economic calculation. When government interferes with the price mechanism, economic calamity ensues. Price controls on gasoline led to the infamous gas lines of the 1970s, yet politicians today repeat those same failed mistakes. Instituting price caps at a below-market price will always lead to shortages. No act of any legislature can reverse the laws of supply and demand.

History shows us that the quickest path to economic recovery is to abolish all price controls. If governments really want to aid recovery, they would abolish their “price-gouging” legislation and allow the free market to function.

It’s a shame that RINO governor Chris Christie won’t listen to free market advocates, but he’ll be listening when citizens hit the voting booth next year and remember his handling of gas shortages by further exacerbating the situation with rationing. Even worse, they might remember him giving the green light to football fans to attend a Giants football game during said rationing and state of emergency. Or, they might remember that Christie was quick to send an army of 45 bureaucrats out to check gas station receipts.

Already polls are showing Governor Christie rather vulnerable against Democrat contenders (who most certainly would have also rationed gas, but go ahead and ask them yourselves). Hurricane Sandy and his mishandling of the aftermath have yet to be factored into these polls.

Gas rationing may have ended in New Jersey today, but the extended gas crisis’ actual costs to the New Jersey economy will no doubt haunt Christie well into next year’s re-election bid.

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Romney’s facebook likes dropping in real-time

Mitt Romney has officially bid his presidential campaign adieu, and now comes the long unwind:

Some top donors privately unloaded on Romney’s senior staff, describing it as a junior varsity operation that failed to adequately insulate and defend Romney through a summer of relentless attacks from the Obama campaign over his business career and personal wealth.

“Everybody feels like they were a bunch of well-meaning folks who were, to use a phrase that Governor Romney coined to describe his opponent, way in over their heads,” said one member of the campaign’s national finance committee, who requested anonymity to speak candidly.

“Romney World,” the fundraiser added, “will fade into the obscurity of a lot of losing campaigns.”

Thanks to the Internet, we’re actually able to watch this unfold in real-time as supporters “unlike” Romney’s facebook page — on disappearingromney.com.

This is one unpopular program that Romney can truthfully say he cut after this election: his online campaign.

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Internet continues to explode for political news viewership

Pew research two weeks out from the election:

The biggest gains have come on the internet-both to the websites of traditional news sources and those native to the web.

Social media platforms such as Facebook, Twitter and YouTube are growing especially rapidly as a source of political news. The number of Americans who say they regularly go to these destinations to learn about the campaign has doubled since January. Even with that jump, however, these leading social media platforms are still turned to by a relatively limited number of Americans, about 17% in all, when those who mentioned at least one of those platforms are combined.

[...] The numbers portray a diverse landscape in which no platform dominates as the place for politics, and the vast majority of Americans say they regularly rely on multiple platforms to get political information. Just 6% said they turn regularly to just one platform.

Cable news channels continue to have the furthest reach, but a number of other destinations are close. Currently, 41% of Americans say they regularly learn about the candidates or the campaign from cable news networks, up five percentage points from 36% during the primaries.

But local TV news is almost as popular as a means for learning about the campaign; 38% of Americans regularly use it to learn about the candidates and the election, up six points since the primaries.

That is now nearly matched by the internet, which has seen an increase of 11 points in the number of Americans who say they regularly turn to it for campaign news since the year began. Fully 36% of Americans say they regularly get election news there, up from 25% in January.

For comparison purposes, a 2008 Pew survey showed the Internet was gaining fastest among younger demographics — a trend which continued even more rapidly through 2012.

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One million libertarians, two million libertarians

Libertarian Party presidential candidate and former New Mexico Governor Gary Johnson did the unbelievable this Tuesday: he created the new high-water mark for Libertarians by earning over 1.1 million votes in the general election.

But — to paraphrase Kanye West, “Yo Johnson, I’m really happy for you, Imma let you finish, but Ron Paul had one of the biggest libertarian campaigns of all time.”

That’s right. Ron Paul, who ran as a Republican Party primary candidate for president, was this year’s actual winner of the highest libertarian campaign vote get, with over two million votes.

Now, big “L” purists would argue that Ron Paul’s campaign doesn’t count — but I’m busy counting libertarian votes, not Libertarian votes. And of course I’m coming from the position of wanting to elect libertarians; not merely paint a new, but otherwise meaningless, high-water mark.

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2012 election results

I’ll be away from the blog this evening, but I encourage everyone to use the Google elections map, just because it’s probably the best tool out there created by some incredibly smart coders.

And just for giggles, here’s my predictions, cross-posted from IPR:

Romney wins.

Johnson breaks 1M, barely. Gets credit for handing wins to Romney in Colorado and possibly Ohio. Time for democrats to hate libertarians.

Amendment 64 passes in Colorado with surprisingly strong republican support. Battle lines drawn for 10th amendment showdown with federal government.

I’m basing my judgement on the Romney/Obama matchup on an apparent gaffe by the president during the Town Hall debate when he (mis)stated “when I was president.”

I am rather certain he was being prophetic in that utterance.

Update: You can track Colorado’s Amendment 64 / marijuana legalization issue here, on the very last page (use the dropdown). Colorado polls close at 7PM MST / 9PM EST.

Here’s to “the entire country getting on airplanes to go to Denver for the weekend to chill out.” Good call GJ.

Update 11/7: Obama gets another four years, GJ got over 1M (yep, barely) and Amendment 64 passed (1,027,893 Yes to 898,317 No with 23 of 64 Colorado counties reporting)… two out of three predictions ain’t so bad, all things considered. I really should have stuck with my original assessment I told a few people (not on any record) that Obama would get re-elected if he convinced people the economy was rebounding by June, but I guess my time hanging out with Republicans had tinted my view. C’est la vie.

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Victoria’s Secret saves the National Guard

From Wired:

On Monday night, Hurricane Sandy hit the armory of the New York Army National Guard’s 69th Infantry Regiment, leaving the soldiers without power, hot water, or anything but the most rudimentary means of communicating with the outside world. So the next morning, the Regiment’s officers made an emergency plea — to the producers of the Victoria’s Secret fashion show.

As they had done for the last three years running, the lingerie company was holding its annual television event at the Regiment’s historic armory, located at 25th street and Lexington Avenue in Manhattan. For the show, the producers had hauled in eight massive 500 kilowatt generators. Of course, the producers said, we’d be happy to help. Hours later, the lights flashed back on.

“We were dead in the water until Victoria’s Secret showed up,” says Capt. Brendan Gendron, the Regiment’s operations officer.

But that wasn’t the only thing the lingerie company was better at than the National Guard:

The soldiers were still having communications problems, though. Many of the local cell towers were down, and so was the armory’s internet’s connection. Luckily, Shapiro had answer for that, too. For the show, he had leased a T1 line connected to a microwave dish on the roof. “We plopped two routers in their command center,” he says, “and now they’re sitting on our internet backbone.”

The troops also needed help distributing food. The Federal Emergency Management Agency had begun bringing tractor-trailers’ worth of emergency provisions to the armory. It was up to the troops to break up the pallets, load them in military trucks, and bring them to the seven distribution centers in Manhattan where the Salvation Army would hand out meals to Hurricane victims. One problem: the 69th didn’t have a fork lift. So again, they turned to the Victoria’s Secret crew.

You gotta love it when the private sector saves the government’s ass in a crisis.

But you really have to appreciate when it’s done by a bunch of people whose job typically consists of making sure scantily-clad girls look good walking down a runway in boa-feathered wings.

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Bloomberg cancels marathon in face of criticism

New York City Mayor Michael Bloomberg caved to growing criticism this afternoon when he announced the New York Road Runner’s Marathon would be post-poned.

In a press statement issued from City Hall, Bloomberg said “The marathon has always brought our city together and inspired us with stories of courage and determination”

“We would not want a cloud to hang over the race or its participants, so we have decided to cancel it.”

It’s a far cry from his earlier statements. “There are lots of people who have come here,” he said to CNN. “It’s a great event for New York, and I think for those who were lost, you’ve got to believe they would want us to have an economy and have a city go on for those that they left behind.”

The 26.2-mile race route, which would have begun on Staten Island — one of the most devastated of boroughs — would have snaked through Brooklyn and Queens before cutting across the Queensboro Bridge onto Manhattan Island. The race route was expected to run past at least one gas station that had reported long lines of people holding gas cans, potentially posing a stark juxtaposition for photographers shooting 40,000 carefree runners streaming by.

And oddly enough, marathon runners would have been able to complete the course from Staten Island faster than most people were able to drive from Queens. The record run of two hours, five minutes and six second was veritably dwarfed this week by one commuter’s seven hour drive.

At least one hotel on Staten Island had said they would refuse to evict displaced residents to honor reservations made by runners.

“How do I tell people who have no place to go, that have no home, no heat, that you have to leave because I have to make room for somebody that wants to run the marathon?” asked hotel owner Richard Nicotra.

One ESPN columnist notably criticized Bloomberg in an editorial. “While there’s a lot at stake here for marathon organizers, athletes, sponsors, vendors and various others involved with the event, there’s even more at stake for the thousands of people who are still without power, forced out of their homes, can’t get out of their homes or otherwise are waiting for assistance to get their lives back in order,” wrote Mario Fraioli.

“Canceling the race isn’t about being unfair to the runners — it’s about being fair to a city and its residents that need every available resource to put itself back together, and for this reason, the show mustn’t go on.”

What will become of The NYRR’s three generators sitting at the marathon finish line in Central park remains an issue many will be watching.

“These are our private generators. We are not draining any resources from the city’s plan to recover,” Road Runners spokesman Richard Finn had angrily insisted.

However, it seems some common sense and decency is seeping into the race organization.

“It’s clear that the best thing for New York and the best thing for the marathon and the future is, unfortunately, to move on,” said Mary Wittenberg, chief executive of New York Road Runners. “This isn’t the year or the time to run it. It’s crushing and really difficult. One of the toughest decisions we ever made.”

George Hirsch, chairman of the board of Road Runners told the press that officials huddled all day Friday, hoping to devise an alternate race. They considered replacing the marathon with a race that would only cover the final 10 miles of marathon, starting at the base of the Queensboro 59th Street Bridge on the Manhattan side. But the plan was scrapped as unfeasible.

“We still want to do something, and we’re going to do something, but it won’t require generators or water.” Hirsch said.

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Kottke.org suspends posting

One of my longtime subscribed reads has sadly had to indefinitely suspended operations post-Sandy. Jason Kottke writes:

Publishing on kottke.org is suspended until further notice. The situation in New York and New Jersey is still dire** so posting stupid crap seems frivolous and posting about the Sandy aftermath seems exploitive. Information is not what people need right now; people need flashlights, candles, drinking water, safety, food, access to emergency medical care, a warm place to sleep, etc.

Anyway, we’ll be back in a few days hopefully.

** I say “still dire” because I think the perception among people not in the NY/NJ area is one of “oh, the storm has passed, the flooding is subsiding, and everything is getting back to normal”. But that’s not what I’m hearing. What I’m hearing is that there are large areas that have been without power for 4-5 days, people are running out of food and gas, food and gas deliveries are not happening, etc. Things are getting worse (or certainly have the potential to get worse), not better, especially for those without the resources to care about which cool restaurants are open or how much an iPhone car service is gouging its customers or which Midtown office they’re gonna work on their startup from.

My deepest sympathies go out to Kottke and other bloggers who are enduring the dire situation still ongoing in New York City and the surrounding boroughs. We anxiously await your firsthand reports of the struggle to keep civilization together in the wake of the worst disaster the Internet-centric generation has ever experienced.

Drop by his site and click some ads to show your love.

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While Tri-State goes Mad Max, Obama campaigns in Vegas

NYC Mayor Michael Bloomberg and New Jersey Governor Chris Christie should probably realize soon enough they’ve mistakenly hitched their wagons to the perpetual campaigner in chief, not the savior of Sandy-monium:

“when disaster strikes, we see America at its best.”

“All the petty differences that consume us in normal times somehow melt away,” the president told 4,500 Nevadans at a rally in Las Vegas. “There are no Democrats or Republicans during a storm, just fellow Americans, leaders of different parties working to fix what’s broken, neighbors helping neighbors cope with tragedy, communities rallying to rebuild, a spirit that says, In the end we’re all in this together, that we rise or fall as one nation.”

That end of course, comes after Obama’s latest campaign stop in Las Vegas, which has taken priority over the plight of Americans mired in a growing crisis of shortages across the flood-devastated East Coast.

Meanwhile, things are reaching thunder dome levels as a gasoline shortage has people going completely nuts, and an ancillary food crisis begins to bloom.

Remember when Bush was caught in similar circumstances after Katrina? Las Vegas will become Obama’s Coronado.

Libertarians and assorted “kooky survivalists” across the country — always wary of big government promises and now muttering “told you so” — are left to watch helplessly as the federal assistance once again arrives days late and several braincells short.

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Over 8 million were without power at peak of Sandy outage

According to the Department of Energy website, which has been acting as a clearinghouse of information regarding the electric grid in the Northeast, at the peak of Hurricane Sandy there were over 8 million “customers” (these can include entire buildings) at the peak of the outage.

Adding all the people who have been restored, the number is a mind-bending 8,460,344 8,317,507 total “customers” who lost power due to Sandy across twenty one states. CORRECTION: Those who had been restored were already counted in “peak outages,” we regret the error.

Since then, the government has done all it can to stay out of the way of electric repair crews, going so far as to suspend many regulations in order to allow companies to expedite repairs and give fuel to those so desperate for energy. The result has been telling, with 4,657,013 remaining “customers” left without power as of 9AM EDT on November 1st.

One of the more interesting stories is that quite a few NYC data centers have had to shut down due to the loss of power and their inability to get fuel for backup generators. Another is how many people are willing to stand around outside of Starbucks just to get their internet fix (from websites that are still up). Some people are even getting so desperate that they going back to using payphones (gasp, those still exist?).

Con Edison has stated that they expect repairs to last until at least through November 10th or 11th –however this may be an overly pessimistic view so folks will see them in a better light when the lights finally do come back on.

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Post-Sandy price gouging laws and gas shortages

Yesterday, Matthew Iglesias at Slate warned us that many people living in states suffering from the freak storm Hurricane Sandy will find themselves in dire shortages as the free market gets tangled with price gouging laws:

Even in these polarized times, there are some things politicians of both parties can agree. Price gouging, for example, is wrong. New York Attorney General Eric Scheiderman, a Democrat, wants you to know it. But this isn’t just for soft-hearted liberals. New Jersey’s notoriously tough conservative governor, Chris Christie, also put out a weekend press release warning that “price gouging during a state of emergency is illegal” and that complaints would be investigated by the attorney general. Specifically, Garden State merchants are barred from raising prices more than 10 percent over their normal level during emergency conditions (New York’s anti-gouging law sets a less precise definition, barring “unconscionably extreme” increases).

The bipartisan indignation is heartening, but there’s one problem. These laws are hideously misguided. Stopping price hikes during disasters may sound like a way to help people, but all it does is exacerbate shortages and complicate preparedness.

The basic imperative to allocate goods efficiently doesn’t vanish in a storm or other crisis. If anything, it becomes more important. And price controls in an emergency have the same results as they do any other time: They lead to shortages and overconsumption. Letting merchants raise prices if they think customers will be willing to pay more isn’t a concession to greed. Rather, it creates much-needed incentives for people to think harder about what they really need and appropriately rewards vendors who manage their inventories well.

Today, gasoline is in short demand as retailers who were able to stay open are prohibited from adjusting prices in the face of inflated demand:

Drivers and homeowners scrambled to secure fuel for their cars and generators in the U.S. Northeast on Wednesday as storm-hit gasoline stations started to run dry.

More than half of all gasoline service stations in the New York City area and New Jersey were shut because of depleted fuel supplies and power outages, frustrating attempts to restore normal life, industry officials said.

Reports of long lines, dark stations and empty tanks circulated across the region. Some station owners were unable to pump fuel due to a lack of power, while others quickly ran their tanks dry because of increased demand and logistical problems in delivering fresh supplies.

Being able to adjust prices to reflect market conditions isn’t price gouging, it’s good economic sense.

As economist Art Carden eloquently wrote in 2011, “[I]n post-disaster situations rising prices perform vital economic triage by showing which uses of resources are now high-value and which uses of resources are now low-value.”

“A disaster means a big shock both to what people want and to the resources available to fulfill those wants. Freely-moving prices make sure resources are allocated to their highest-valued uses, and rising prices send people a very important signal: resources have gotten scarcer and need to be conserved. If houses are destroyed by a tornado, rising lumber prices tell someone in an unaffected area to think twice about building a new deck because the lumber is probably more valuable rebuilding houses. Rising gas prices tell people to think twice about burning scarce gas for a Sunday drive in the country. And so on.”

In other words, temporarily higher prices would encourage those not directly involved in cleanup to stay home and out of the way until the economy stabilizes.

But with price gouging laws, your desire to drive around looking at a storm’s destruction is just as valid as the crews who are working to clean it up, and makes the overall economic situation that much more painful, for a longer period.

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Gary Johnson on FEMA: “I do see a role”

Buried at the bottom of this Hit and Run blog post is a viewpoint of Gary Johnson’s that might well conflict with purist libertarian’s views of state-first disaster response:

Johnson did not touch on Hurricane Sandy during his speech, but it did impact his day as he was late for his event in Boise that afternoon. In a scrum with reporters after the event Johnson said that he thinks the Federal Emergency Management Agency is an appropriate function for the federal government.

“I do see a role. The whole notion that we do have difficulties. I just want to do all of this in the context of not spending more money than we’re taking in,” he said.

“I think (disaster relief) may come under the basic notion of the government protecting us. There are these natural catastrophies that without the federal government, states aren’t as well equipped,” Johnson said, pointing to government assistance New Mexico received in response to the Cerro Grande Fire in 2000. Johnson did note, however, that the National Park Service started that same fire as a controlled burn.

“It was federally caused, it was federally lit,” he said.

It seems to be the case with many libertarians that they’ll at least let a federal agency try to manage a disaster response until it’s apparent they are a failure. But given the fact that such failures can lead to loss of life and property, it’s surprising to see that he’s willing to stick with FEMA after all their blunders in the past.

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After Hurricane Sandy, all eyes on FEMA

Yesterday, the devastating Hurricane Sandy made landfall along a swath of the Northeastern seaboard of the United States, sending surging tides across coastal areas of Delaware, Pennsylvania, New Jersey, New York, Connecticut, Rhode Island and Massachusetts. At a stunningly low 943 millibars, it broke the previous record low barometric pressure set in 1938 by the Long Island Express Hurricane (946 millibars).

Already fires are beginning to erupt in the wake of the storm, with 80 homes destroyed in a Queens, New York neighborhood.

But while millions are reeling from widespread electrical blackouts and loss of utilities in the stricken areas, the Federal Emergency Management Agency — head by Craig Fugate — has said it remains in response mode, while merely hinting at the political fallout that may ride along with a disaster so close to election day:

“We are anticipating that, based on the storm, there could be impacts that would linger into next week and have impacts on the federal election,” Fugate said on a conference call with reporters.

But any potential tinkering with Election Day would bring a bevy of legal issues.

“Our chief counsel’s been working on making sure that we have the proper guidance,” he added. “We’re going through the regulatory policy and making sure all that’s in place and we can support it.”

Fugate did not address whether the election could be delayed — a question that federal officials said last week is up for states to decide.

President Barack Obama has responded by cancelling several campaign trips to key swing states. Included in the cancellations was a flight to Orlando, Florida where the president decided against being seen campaigning — Air Force One ended up landing, Obama ate some pizza with campaign volunteers and then returned to Washington (dubbed the most expensive pizza delivery in history).

Mitt Romney for his part has also remained low-key, cancelling several campaign appearances and adopting a wait-and-see approach to gauge whether FEMA will be able to manage a disaster without too much embarrassment.

So far the only major hiccup has been in insisting on sending people without power to the internet:

When President Barack Obama urged Americans under siege from Hurricane Sandy to stay inside and keep watch on ready.gov for the latest, he left out something pretty important — where to turn if the electricity goes out.

Despite the heightened expectation of widespread power and cable television failures, everyone from the president to local newscasters seem to expect the public to rely entirely on the Internet and their TVs for vital news and instructions.

[...] “With these types of storms, you get a lot of this is going to be carried out through the traditional TV and radio media,” Fugate told reporters on a conference call. “But we’re using a lot more social media, we’re using everything from Facebook to Twitter. I think there’s a higher degree of awareness that people have of the storm is coming and what the impacts are going to be.”

Fugate also talked up battery-operated or hand-cranked radios during interviews on morning news shows.

A call to FEMA’s news desk, however, found even they didn’t have any non-Internet information readily available beyond suggestions that people call 911 in an emergency. When asked where folks should turn for information if they have no power, a FEMA worker said, “Well, those people who have a laptop with a little battery life on it can try that way. Otherwise, you’re right.”

Back in 2006 we pointed out FEMA’s fraud and waste in the aftermath of the Hurricane Katrina’s disaster in New Orleans (or at least cited the Government Accounting Office):

The GAO, the investigative arm of Congress, found at least $1 billion in disaster relief payments by the Federal Emergency Management Agency were improper and potentially fraudulent because the recipients provided incomplete or incorrect information when they registered for assistance. (GAO report)

Oddly enough, our least favorite former FEMA chief Michael “heck of a job” Brown was quick to weigh in with political advice:

“Right now,” Brown maintains, “both campaigns need to let the first responders and governors do what they need to do. Basically say, ‘If we can help in any way, let us know.’”

Since Hurricane Sandy has dominated headlines in recent days, 2011 comments from Romney saying that FEMA should be shut down and power should be given to the states have resurfaced. His campaign has clarified that Romney believes states should have more authority, but he does not think FEMA should be abolished.

Brown agrees. “It’s more of a statement of fact…. This has always been my theory. The stronger you make the federal government, the weaker you make local governments…. State and local responders need to be as robust as they possibly can…. What FEMA should be doing right now is coordinating, [telling governors and mayors], ‘What do you need? How can we help?’”

He adds, “Everything that really needs to be done is a state and local issue…. The feds are more about helping financially.”

But some refugees wary of FEMA’s checkered history may have some hope when dealing with the federal aid-givers. If you’re not comfortable with the idea of marching into a designated “FEMA camp” that has been rightly or wrongly maligned, you can actually bring your guns and ammo with you.

From a 2005 article on the Boston Globe:

Gun rights groups had sought the change, saying the original policy violated Second Amendment protections for gun ownership. Kinerny said FEMA made the change after consulting with lawyers.

FEMA said it has been general policy for several years to prohibit guns at such parks anywhere in the country. But two gun rights groups — the National Rifle Association and Second Amendment Foundation — said they found out about it only this month as a 600-trailer encampment opened near Baton Rouge.

Wayne LaPierre, the NRA’s executive vice president, praised the change. ”It is wrong to force citizens to give up their constitutional rights in order for them to get a needed federal benefit,” he said in a news release.

We here at Hammer of Truth wish the victims of Hurricane Sandy a speedy recovery, and we certainly hope FEMA won’t get in the way of their recovery and rebuilding this time.

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Watering down quality is finally harming AB InBev

BloombergBusinessweek did an excellent exposé on the AB InBev – America’s largest beer-maker at 48% of U.S. market share — on their unquenchable thirst for profits over quality. The Plot to Destroy America’s Beer:

There has never been a beer company like AB InBev. It was created in 2008 when InBev, the Leuven (Belgium)-based owner of Beck’s and Stella Artois, swallowed Anheuser-Busch, the maker of Budweiser, in a $52 billion hostile takeover. Today, AB InBev is the dominant beer company in the U.S., with 48 percent of the market. It controls 69 percent in Brazil; it’s the second-largest brewer in Russia and the third-largest in China. The company owns more than 200 different beers around the world. It would like to buy more.

The man in charge of AB InBev is 52-year-old Carlos Brito. The Brazilian-born chief executive is a millionaire many times over. He speaks English fluently and dresses like the manager of a local hardware store. At the Manhattan headquarters, he wears jeans to work and tucks in his shirts. He keeps his company identification badge clipped to his waist where everybody can see it, even though everyone knows who he is. To the rest of the world, he keeps a low profile. He does not, for example, accept interview requests from Bloomberg Businessweek. That might be his character, and it might be calculated. The Busch family is a legendary American dynasty. Many people in the U.S. aren’t thrilled that a foreign company now owns Budweiser, America’s beer.

This is not to say that Brito lacks American admirers. Many can be found on Wall Street, where investors care less about where beers are brewed than about how profitable they are. This is where Brito shines. After InBev bought Anheuser-Busch, he slashed costs at the combined company by $1.1 billion in a single year. AB InBev’s margins widened substantially, and its share price has nearly quadrupled since the takeover. In 2011, Brito made Fortune magazine’s Fantasy Sports Executive League Dream Team as a designated hitter.

Anthony Bucalo, an analyst for Banco Santander (SAN), speculated in April that Brito’s ultimate plan is to acquire the beverage unit of PepsiCo (PEP). AB InBev already distributes PepsiCo’s soft drinks in Brazil, and it was through a distributor’s arrangement that the company got its claws into Anheuser-Busch. According to Bucalo’s theory, Brito wants to be the king of sparkling beverages in aluminum cans, regardless of their alcohol content or taste.

It seems that desire to cram dividends into shareholders pockets will have an adverse effect on their long term viability:

There’s one hitch. AB InBev’s CEO is a skilled financial engineer, but he has had trouble selling beer. The company’s shipments in the U.S. have declined 8 percent to 98 million barrels from 2008 to 2011, according to Beer Marketer’s Insights. Last year, Coors Light surpassed Budweiser to become America’s No. 2 beer. (Bud Light remains No. 1.) Meanwhile, Brito is alienating lovers of AB InBev’s imports by not importing them. And he’s risking the devotion of American beer lovers by fiddling with the Budweiser recipe in the name of cost-cutting.

Honestly though, did anyone actually think they could somehow make Budweiser worse? Way to go Brazilian scientists!

For a full list of beers that could have their recipes tampered with for short-term gain, see this Wikipedia page on InBev brands. Thankfully my taste for mass-produced domestic beer is limited to Blue Moon (a MillerCoors brand) when I’m not supporting local brewers.

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