Whitcomb: Baseball Romanticism and Capitalism; Opioid Research; Sticking it to the Blue States

Robert Whitcomb, Columnist

Whitcomb: Baseball Romanticism and Capitalism; Opioid Research; Sticking it to the Blue States

Robert Whitcomb

“Silence again. The glorious symphony
Hath need of pause and interval of peace.
Some subtle signal bids all sweet sounds cease,
Save hum of insects’ aimless industry.
Pathetic, summer seeks by blazonry
Of color to conceal her swift decrease.’’

-- “In August,’’ by Helen Hunt Jackson (1830-1885)

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 “Ambition must be made to counteract ambition. The interest of the man must be connected with the constitutional rights of the place.”

-- James Madison

 

 “You can’t have a stable democracy that has not seen any increase in wages for the vast majority of working people for over thirty years, while there’s a tremendous increase in compensation and earnings for a small percentage of the country. That is destructive of democracy. It breeds populism.’’

-- Martin Lipton, a founding partner of the Wall Street corporate-law firm of Wachtell, Lipton, Rosen & Katz, quoted in The New Yorker.

The more wealth that’s concentrated in a very small group of people the more we have a plutocracy with the means to control government entirely for its own benefit.

 

PawSox
Of Romantics and Those Who Love Them

I was driving through Pawtucket the other day over its Third World roads and by its decayed-looking public schools. That made me wonder again why the State of Rhode Island and Pawtucket would have wanted to enter into a massive public-borrowing scheme to build a publicly owned stadium that would benefit some very rich businessmen in a sport that seems to be in long-term decline.  Instead, why not borrow for such far more important things as transportation infrastructure? What indeed is the opportunity cost in all this?

Wouldn’t the old mill town of Pawtucket improve its economy a lot more by fixing infrastructure to be used by a very wide variety of people? Barely paved roads are not exactly an advertisement to lure companies, nor are crumbling schools.

And if a baseball stadium is such a great economic-development energizer (which it isn’t) how come, even after some expensive McCoy Stadium upgrades over the years, the neighborhood around McCoy still looks like, well, the neighborhood around McCoy?

The whole PawSox thing, in Rhode Island and now in Worcester, bespeaks a sort of bread-and-circuses approach, in which appeals to romanticism – in this case baseball fans’ --- trump economic reality. For that matter, what percentage of the population of Rhode Island and southeastern Massachusetts actually go to PawSox games?

Meanwhile, there’s starting to be some buyers’ remorse in Worcester about the very generous offer to lure the PawSox that was secretly (and no wonder!) negotiated over the last few months by the city, the state and the PawSox owners. The deal includes more than $100 million in city borrowing, not including interest.  Some of this is supposed to be repaid by a mix of hoped-for taxes and fees in a new development district around the stadium. Will all that development happen? I doubt it.  Note that interest rates are rising and that history suggests that a recession – perhaps a deep one – will start in the next couple of years. The taxpayers’ stadium is supposed to open in 2021.

Robert Baumann, an economist at the College of the Holy Cross (conveniently situated in Worcester) and a nationally known expert on the economics of publicly financed stadiums, gave a hearty thumb’s down to the Worcester deal. Among his remarks in a Worcester Telegram article:

“The summary of {the} research is simple: public money towards stadium construction is rarely, if ever, worth the investment….”

 “{The} improvement and increased spending in one neighborhood usually comes at the expense of the rest of the area. … In essence, new stadiums typically trade off concentrated gains in the immediate area with diffuse losses everywhere else.’’

 “According to Minor League Baseball, per game attendance at International League games this year is currently about 4.9 percent lower compared to last year and 7.9 percent lower compared to ten years ago. …Usually new stadiums come with a ‘honeymoon’ period of about three years where attendance spikes above its long-run trend…. {W}hat happens after the honeymoon is over?’’

“Simply put, this ownership group has the money {to build a stadium with its own wealth} but pitted two nearby municipalities against each other in order to get the best deal. Given that same public money also funds teachers, cops, and firefighters, this doesn’t strike me as an ownership group that cares much about Worcester or Pawtucket.’’

"The idea that this is going to serve as a catalyst for economic development, which is the hope – and I emphasize the word hope – is misguided," Robert Baade, an economist at Lake Forest College, in Illinois, told the Worcester Business Journal. John Solow, a Massachusetts native and an economist at the University of Iowa, told the publication, "There's a great deal of consensus among sports economists of all political stripes that this is not a good thing for local governments to be doing,"

But they may well do it anyway in Worcester because of the romanticism of the small percentage of the population who actually go to Minor League games and that old wishful suspension of disbelief. If it happens, it will be a wealth transfer from the middle class to the rich. But it will raise the spirits of local baseball fans, if not necessarily most football, hockey, soccer or tennis fans. Money isn’t everything! The owners are, well, hard-working capitalists seeking to maximize their profit by cultivating the romanticism of their fans and the politicians who seek their support.

Rhode Island Public Radio has a useful discussion on the pros and cons of publicly financed baseball stadiums. To read and hear it, please hit this link:

 

 

Opioid Research Center

Kudos to Rhode Island Hospital for being awarded an $11.8 million federal grant to create a research center on opioids and overdoses!

The Center of Biomedical Research Excellence on Opioids and Overdose will work with Brown University and Women & Infants Hospital on research aimed at more clearly understanding opioid addiction, with the aim of improving treatment and stopping addiction before it starts.

The grant is for the first five years of what might turn out be a 15-year project funded by the  National Institutes of Health.

The center could become a nationally known place for studying opioid issues, of which southeastern New England has plenty. Let’s hope that if Partners Healthcare ends up buying Lifespan, which owns RIH, they don’t move the center to Boston!

 

Why So Long to Fix Bridge?

Fixing part of the Washington Bridge, connecting Providence and East Providence, is projected to take a year, during which the heavily used Gano Street exit, on the westbound side of Interstate 195, will be closed. The Empire State Building, for many years the world’s tallest building, took a year and 45 days to build in 1930-31 using much less advanced construction equipment than is available now. The entire Sagamore and Bourne bridges, over the Cape Cod Canal, the world’s widest sea-level shipping canal, took a couple of years to build in the mid ‘30s. Why so long for a much smaller project here?

 

Immigration
More Immigrants, Less Crime

It’s no surprise that Trump would try to divert attention from his legal problems by throwing gasoline on his demagogue’s fire by calling the murder of Iowa college student Mollie Tibbetts, allegedly by an illegal alien from Mexico, a reason to  praise his regime’s crackdown on illegal immigration (a crackdown that actually began under Obama).  Ah, Trump rallies’ seamless web of brazen lies, fantastical forecasts and resentment!

Anyway, illegal aliens are less likely to commit crimes of all sorts than are native-born people.

Business Insider looked at the crime/illegal immigration situation. Hit this link to read it:

Among other things, it reported that:

A Cato Institute study that looked at conviction data in Texas (with the nation’s second-highest population of illegal aliens) found that native-born residents were most likely to commit and be convicted of crimes. Illegal aliens’ conviction rate was 56 percent lower than native-born Texans. The study said that legal immigrants had 86 percent lower conviction rate than native-born Texans.

And researchers who wrote a Criminology journal article that studied states' reported rates of violent crime and illegal immigration found that the more a population is composed of illegal immigrants, the lower the violent crime rate.

There are important reasons to block illegal immigration, e.g., it lowers wages and can create heavy social-service costs in some places. But despite the outrage over horrific isolated cases such as the murder of Tibbetts, crime isn’t one of them.

I’m most worried about angry young white men with a gun.

 

President Donald Trump
Trump Sticks it to Blue States

It doesn’t take a genius to see that Trump is trying to punish Blue States.  After all, he’s never made much of an effort to suggest that he’s president of all the people. Almost all of his big speeches are before screaming hordes of cultists/wishful thinkers (suckers) at MAGA rallies, with opiate- and amphetamine-rich West Virginia a favorite venue. There, many folks have long since stopped reading in favor getting their “news’’ from another New York crook, Sean Hannity.

Paula Dwyer, writing for Bloomberg Business Week, did a nice review of this the other day in “Trump’s War Against Blue States’’.

Among her observations about a few of our mobster-in-chief’s anti-Blue State policies, let’s just concentrate on GOP tax “reform.’’

“His tax overhaul has capped at $10,000 the federal income tax deduction that a homeowner can claim for payment of state and local taxes, affecting taxpayers especially severely in the Northeast and California,’’ which have higher taxes because they generally have, to varying degrees,  better and more humane public services than the Red States and because the people in Blue States are bigger wealth creators. Because of the nature of the economies in the aforementioned Blue States, even middle-class taxpayers can reach the $10,000 cap fairly easily.

Red State Republican members of Congress complain that letting Blue State folks deduct their higher state and local taxes results in Red States subsidizing the Blue ones.

In fact, it’s always been the opposite. As Ms. Dwyer notes, and as I said here before, Red States generally have low state and local taxes (except some have high sales taxes, which are regressive) because most have thin public services and generally rely much more than do Blue States on federal money. Consider that in the heart of Trump Country – Mississippi – the state gets about 40 percent of its operating money from the Feds, with much of it coming from the big federal taxes paid by Blue State folks.

Eight of the 10 biggest winner states in getting more money from the Feds than they pay are Red States, seven of the 10 biggest losers are Blue States, notably including the vast sums from New York and New Jersey. (Massachusetts was 13TH biggest loser but poor little Rhode Island was 18th in the states that get more from the Feds than they pay – because of poverty and, more happily, the big Navy-related facilities.) The figures are of course affected by poverty levels, and Red States do less to help the poor than do Blue States, thus necessitating more federal help to make up some of the differences. The presence and absence of military bases  (e.g., Naval War College) and federal contracts also play a big role.

I have long thought that Trump especially wants to stick it to New York because he knows how detested he is there.

To read Ms. Dwyer’s article, please hit this link:

 

For Trump, Loyalty Is One-Way

I suspect that if former Trump fixer Michael Cohen has decided to tell prosecutors all he knows about Trump’s conspiracy with Vladimir Putin to help steal the 2016 election it will be because he has belatedly realized that with Trump loyalty is always a one-way street; the nuclear narcissist’s private and public life has been one betrayal after another. Paul Manafort, another of Trump’s amoralists, may also be mulling cooperation with the Mueller probe, for similar reasons.

It will be fun to see how fearful congressional allies of an increasingly corrupt national Republican Party become in the months leading to the mid-term elections, which Trump and the Russians are frantically trying to steal to save Trump from impeachment.

The Watergate investigation, which was about far less complicated corruption, and, as bad as it was, involved far fewer threats to national security than the Russia probe, took more than two years to complete.  (I had to write about it when I filled in as the writer of The Wall Street Journal’s World-Wide column way back then.) We’re only 15 months into the Russia scandal investigation.

 

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Paul Manafort
Paul Manafort would have been convicted on all 18 counts against him instead of just eight except for a lone disturbed and/or Trump-loving juror. To read more, please hit this link:

 

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As we hear Trump’s endless rants on Tweets and at rallies – does he do any real work at all? --  I can’t help but think of writer Mary McCarthy’s line about the odious playwright and unapologetic Stalinist Lillian Hellman:

 

“I can’t stand her. I think every word she writes is false, including ‘and’ and ‘but.'” 

 

Or, as former Republican speechwriter David Frum wrote in The Atlantic:

 

“It’s an old question: Is Trump an authoritarian, or a crook? The answer is shaping up. Trump must be an authoritarian precisely because he is a crook. The country can have the rule of law, or it can keep the Trump presidency. Facing that choice, who doubts what Trump’s answer, or the answer of his supporters, will be?’’

 

Social Democracy

Having worked in Western Europe as a business editor, I can say that, love it or hate it, there’s a huge difference between the mixed-economy social democracy there and how it’s being described here as some sort of evil, all-encompassing Orwellian “socialism’.’ If only more Americans got out a bit more.

 

Disband some communities?

As poor cities and towns around America, such as Pawtucket, continue to thrash around looking for a pot of gold with which to keep going, perhaps more should to try to disincorporate and have their states divvy up their land amongst neighboring communities. Some communities may just not have what it takes to support themselves. And after all, these legal creatures have not been here since the dawn of time.

 

Diversification at Conn. Casinos


A recent column by David Collins of The (New London) Day is headlined “Could prostitution keep Foxwoods, Mohegan Sun afloat?’’ Why not? Sex for hire is no more immoral than losing your kids’ tuition money at a poker table or slot machine. To read his column, please hit this link:

 

In Anticipation of Higher Prices

A bit of added amphetamine for the economy has come this summer in the form of companies buying more goods to stockpile before Trump’s tariffs take effect.

 

Lower Electric Rates for Amazon

Not only is Amazon getting vast tax breaks from states and localities in moving to or expanding operations there – lost tax revenue that has to be made up by other taxpayers – but in some places it’s also getting big electricity-rate discounts from utilities laying power lines to serve such energy hogs as Amazon data centers (which, like baseball stadiums, require very few full-time jobs). Other ratepayers must make up the difference by paying higher rates.

 

Where is the Justice Department’s Antitrust Division these days?

 

Before A/C

This has been an unusually hot and humid summer. It sometimes seems hard to believe that only a few decades ago, virtually no New Englanders had home air conditioning. If you complained about it the answer would be something like: “It never gets hot in New England for long.’’ Well, a few weeks of high humidity of 90 degrees seems pretty long.
 

We had various strategies for beating the heat at night when I lived as a boy in a Boston suburb on the ocean. There were fans, but their effect was unsatisfying. One option was to move into the cellar, which in our house was deep and with granite walls. Another was to sleep on a porch. You see a lot of sleeping porches, mostly facing the summer prevailing wind from the southwest, in houses built from about 1890 to 1930. Or we’d sleep on the lawn. For kids these options provided minor adventures (seeing fireflies over the lawns, etc.) but they weren’t particularly attractive to adults, most of whom had to get up early and get to work after sleepless nights

We’d sometimes hear dance music coming up through the rustling oak trees from a club on the harbor. This was Big Band stuff; rock n’ roll had not yet become entrenched.

Then came those air conditioners awkwardly installed in windows, which in old houses like the one we live in now seem the only cooling option because you’d have to rip up the house to put in central air.

Of course, the central irony of air conditioning is that while it may make you cooler, it makes the world hotter as we burn fossil fuel to generate the electricity to make it work and the damn things release lots of heat –into the great outdoors. But it has certainly been good for productivity.

We lived on Massachusetts Bay and so we could go swimming but the water was usually frigid, what with the hot-weather wind – from the southwest – pushing the warm surface water away from the shore and the Labrador Current lurking nearby. We loved visiting our paternal grandparents in West Falmouth, on Buzzards Bay, where the water was almost tropically warm from mid-July to Labor Day. It seemed that the Gulf Stream would send up little eddies to run against the south and west sides of the Cape. It smelled like Florida.

 

Hurricane Heaven

Today is my youngest sister’s birthday, which always reminds me of Hurricane Carol, which came on Aug. 31, 1954,  soon after her birth. I remember the house creaking in the wind and watching some big trees going over. We lived on a hill, which heightened the drama. But I remember even more the smell of wet leaves and that of Sterno, which we used for cooking after Carol and then after Hurricane Edna, which came through on Sept. 11. Between them, the storms gave us enough firewood to get us through until Hurricane Donna, on Sept. 12, 1960, supplemented our supply.

We kids loved the drama, but of course, for parents, it was a long headache, only partly alleviated by too-frequent cocktails.

 

A Simpler, More Fragrant Florida

Reading about the current poisonous red tide along Florida’s Gulf Coast reminded me of my first visit to Florida, I think about 1951. We stayed for a while on Siesta Key, part of Sarasota, then a very simple place, decades before condos, and with a beautiful sugary, white beach. People threw bread in the air, which the pelicans would scoop up.

Sarasota was the winter home of the Ringling Bros. and Barnum & Bailey Circus (“The Greatest Show on Earth’’). My older sister and I were taken to visit it, and I still remember the smell of the animals – elephants, zebras, etc. I think that smell may evoke the past stronger than any other sense.


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