Monday, November 17, 2008

On Prostitution

Re: sex workers, the keys to legalization seem to be as follows: 
1) criminalize excessive and unwanted solicitation, which allows the workers to avoid coercion; 
2) legalize prostitution, which requires police protection and presence for both customers and workers, furthering increasing the safety of the transaction; 
3) tax the transaction, thereby funding other services, like education as well as the police squads assigned to the "Hamsterdam" districts; 
4) require STD testing and databases of all participants before any activity; 
5) place all districts far, far away from "core" business activity, including K-12 schools; 
6) provide housing dormitories and free health care (in exchange for waiving some privacy rights in order to study physical changes or some other constructive health care purpose, and only when the workers themselves choose to see a doctor for more than the required STD-testing) to ensure that they can save their money (think military-style housing); 
6) require that at least 10% of all earnings be set aside into an irrevocable retirement fund until age 50 and put into a balanced fund; 
7) require 5% of all earnings be put into a liquid account accessible upon exiting the business; 
8) require maximum employment of 15 years (I'm not sure about this step, but the idea is that at some point, just like prison rehabilitation programs, the participants would re-enter "core" societies with marketable skills); 
9) apportion some tax revenue to the workers to decide what to do for communal purposes, allowing an indirect education into economics and politics.

BonusPolice protection is necessary to prevent trafficking and mafia involvement--the whole point of legalization is to eliminate the underground economy; again, the idea is to shift police resources away from undercover work and targeting the informal economy into protecting consensual behavior; 

You'll notice I included social services, too, but in non-traditional forms--free housing, vocational job training, healthcare, and financial independence.  

You'll notice I want a time limit to get the women and men out of this business eventually. 

Prostitution is not something most people want to do, but it happens, it will always happen, and we must choose where we want our resources to go and whether we want a society that favors above ground or underground systems.  Re: imbalances in power, they exist in almost every single business transaction. Does anyone suggest all results of imbalanced power relationships are automatically immoral? Shouldn't the touchstone of the analysis be voluntary consent, safety for all parties, and fair pay rather than subjective criteria? In other words, shouldn't the analysis center on how to avoid using the worker as a means rather than imposing a legal structure based on subjective criteria, which will only drive the business underground? 

Sunday, November 16, 2008

Blue Dog Democrats

The WSJ's November 14 letters section (A16) introduced readers to a Blue Dog Democrat, Jim Cooper. I am a registered Democrat, but am fiscally conservative, which makes me a Blue Dog Democrat.

Rep. Cooper makes the point that the federal government "is still using unaudited cash accounting despite the availability audited, accrual numbers. The federal government is the only large enterprise in the U.S. that is exempted from normal accounting rules. If you want the truth, check out the 'Financial Report of the U.S. Government' (available at http://www.fms.treas.gov/fr/)."

That link leads to this one: http://www.fms.treas.gov/frsummary/index.html

A politician who isn't lying, and who's showing us where the truth is? Just doing the former would make him special in Washington, but the latter, too? Bless those Blue Dogs.

Saturday, November 15, 2008

Michael Lewis on Wall St Corruption

Michael Lewis always has great stuff:

http://www.portfolio.com/news-markets/national-news/portfolio/2008/11/11/The-End-of-Wall-Streets-Boom

My favorite parts? Here you go:

In Bakersfield, California, a Mexican strawberry picker with an income of $14,000 and no English was lent every penny he needed to buy a house for $720,000...

He called Standard & Poor’s and asked what would happen to default rates if real estate prices fell. The man at S&P couldn’t say; its model for home prices had no ability to accept a negative number. “They were just assuming home prices would keep going up,” Eisman says.

Oh, the hubris.

Poem: How do you like them apples?

It's the weekend, so not much on the economic front to report. The government might take our tax dollars to give to GM and Ford, but that potential giveaway comes next week. For now, some poetry:

http://paulgoetz101.wordpress.com/2006/11/15/federico-garcia-lorca/ [Broken link]

Same poem, different link:

https://www.poets.org/poetsorg/poem/gacela-dark-death

Federico Lorca, who wrote the poem above ("Gacela of the Dark Death"), had a fascinating, but sad life:

http://en.wikipedia.org/wiki/Federico_Garc%C3%ADa_Lorca

Friday, November 14, 2008

Bay Area Homeowners in Trouble


According to The SF Chronicle and Zillow.com, around 20% of California Bay Area homeowners have no equity in their homes:

http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2008/11/11/MNN0142MCG.DTL&

Zillow's estimated prices are not 100% accurate (that's the nature of an estimate), but it's very hard to price houses in this market; therefore, Zillow might be the closest thing we have to getting what I call the "misery numbers."

Hat tip to Barry Ritholtz for linking to the SF Chronicle article first.

Poem by Judith McCune

I keep this poem in my wallet. It's from The Atlantic magazine (March 2000, page 96), and I've kept it there for eight years. Like my eight-years-old wallet, it is fraying and may soon become unreadable. I wanted to post it here so that others may read this little-known poem. Click on the link below to read the entire poem:

http://www.theatlantic.com/unbound/poetry/antholog/mccune/theguest.htm

I can't post the entire poem because of The Atlantic's copyright (a question for the IP and copyright lawyers out there: once the author is dead, does the copyright to her work diminish in any way, even though the owner of the copyright is the magazine, not the author?). In any case, I will quote the last stanza only to entice you to read the poem:

Now when Chiqui asks me how I've slept, I lie: Just fine, I say, though by this time I've learned the Spanish word for shame.

Copyright © 2000 by The Atlantic Monthly Company.

The poem neatly summarizes my old-fashioned world view. It has hard-working immigrants, caring family members, and a continuity of time (expressed through different generations of the same family). It also juxtaposes old-fashioned values against modern values in a way that makes the new values subservient to the old ones. Whenever I read McCune's poem, I fall in love with its style and content all over again.

Thursday, November 13, 2008

Ariel Investments

Ariel Investments CEO John Rogers, Jr. beat Michael Jordan in a 1-on-1 game back in 2003. The video is here:

Ball Don't Lie

WSJ Link

Just for this, I am going to buy some Ariel funds someday (http://www.arielinvestments.com/). I love the way Mr. Rogers Jr. calmly walks away after the game instead of getting excited or trash talking. That's the temperament--calm but determined--a good mutual fund manager should have.