Preserving the American Dream: Lessons in Beating Boondoggles

A summary by Gini David.

In late October, I attended the Preserving the American Dream conference in Washington DC, sponsored by the American Dream Coalition (ADC, http://americandreamcoalition.org), a  coalition that promotes freedom, affordable home ownership, property rights, and mobility. To combat big government boondoggles, the ADC provides strategic and tactical counsel from planning experts like Randall O’Toole (Cato Institute), demographer Wendell Cox, ADC’s executive director Eileen Bruskewitz, transit expert Tom Rubin, ethics analyst and writer Stanley Kurtz, and others.

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What’s more, Panos Prevedouros, a professor of transportation engineering at the University of Hawaii, told the ADC audience that rail projects are rife with corruption and fraud, quoting   Bent Flyvbjerg, the renowned Chair of Large Program Management at Oxford University:  “Rail projects are the projects most fraught with delusion and deception.” As Prevedouros explained, “Deception because proponents lie to constituents and overstate ridership and understate costs.  And delusion because proponents believe that their projects are better and different than other failures from the past.”

Honolulu Traffic Contraflow Operations

The Honolulu Civil Beat article Finding the City's Flow: Why Honolulu's Traffic Goes Against the Grain summarizes the state of contraflow in Honolulu. Contraflow on lanes during peak traffic periods is a practice that is used extensively both by the city and state transportation agencies to squeeze more capacity out of the lane-deficient road network of Honolulu.

I wish that the city had actually something more useful to say. Their comment about potential future contraflows on Dillingham Blvd. and King St. is borrowed from my mayoral campaigns during which I promoted these ideas. At least they are on record that the rail won't reduce the need for contraflow lanes.

The city's practice of using crews and cones is relatively risky for the crew, and expensive. The photo is from the Honolulu Star Bulletin newspaper in an article dated Tuesday, August 24, 1999.

AIKEA FOR HONOLULU No. 33 – American History 2000-2016: Early Summary of the Barack Bush* Era in 200 Keywords

• 9/11, Al-Qaeda, Taliban and IEDs.  Patriot Act, TSA, Homeland Security, drones. WikiLeaks and the Snownden-NSA leaks.
  
• Appointed Czars: Bush 33, Obama 38.  Executive orders: Bush 146, Obama 147. (First term only.)
• TEA Party and Occupy Wall Street. Universal Health Care (Obamacare) and Sequester. Debt ceiling.
• Bailouts and cash-for-clunkers.  Retro cars: Mini, VW Beetle, PT Cruiser, Chevy SSR, Toyota GT86.
• Big Presidential lies: “Saddam has WMDs” and “You can keep your plan.”
• So long Ronald Reagan, Steve Jobs and space shuttle.
• Gates Foundation. Gay marriage. GMO labeling.
• Kyoto protocol, and (less) global warming.
• “Smart Growth” and “Livability” = Pack people in condos and trains. U.N. Agenda 21.
  
• I-35W bridge collapse. D grade for Infrastructure. Hurricane Katrina, BP Deepwater Horizon.
• Green energy black holes: Electric car/Fisker, solar/Solyndra, corn ethanol and wind farm subsidies.
• Oil at $147/barrel in mid-2008. Frack it! Natural gas to the rescue. Keystone XL pipeline.
• Infrastructure finance, PPP, open road tolling, road concession, EZPASS, HOT lanes.
• Google car and Google glass. Toyota Prius, Twitter, and tablets. Nanotechnology, carbon fiber, and composites. 
• Boom: Android, Bitcoin, e-cigarettes, iMac, iBook, iTunes, iPod, iPhone, iPad, Made in China, Marijuana,  Facebook, Lipitor, Smart Phones, Tesla car, Viagra.
• Bust: AOL, AltaVista, Pontiac, Plymouth, Lehman Brothers, BlackBerry, HealthCare.gov (?)

Around 2016: The Baby Boom social security and other social net overloading, the large pension underfunding of several states, and ObamaCare direct and indirect costs come to full bloom (and gloom.)

Notable International: The economies of BRICs and PIIGS *** No “Arab Spring,” Egypt, Syria and Benghazi *** ~270,000 dead by 2004 Indian Ocean tsunami *** 2004 Athens Olympics *** 3/11 Tsunami and Fukushima disaster in Japan *** Castro, Chavez, Gaddafi, Kim Jong-Il and Bin Laden gone *** So long Margaret Thatcher, Nelson Mandela and supersonic passenger flight (Concorde) *** Full double-decker 550-850 passenger A380.

Notes (*): The Economist, Barack Hussein Bush, Dec 17th 2008 *** The Wall Street Journal, Barack Hussein Bush, June 5, 2009

PPP = public-private partnership (or P3)

BRIC = Brazil, Russia, India and China

PIIGS = Portugal, Ireland, Italy, Greece and Spain

This summary does not include Entertainment and Sports highlights.

The Public and Private Versions of Solar Power, in Brief

Private version: The installation of photovoltaic panels to generate electric power utilizes unused rooftops and provides free building cooling. (Y. Hata Co., Honolulu, HI.)







Public version: The installation of photovoltaic panels to generate electric power wastes productive land, wastes taxpayer funds, and lies about sustainable green jobs; there aren't any. (DHHL, Kalaeloa, HI)

AIKEA FOR HONOLULU No. 32 – Here’s Wishing for a Helmet Law and Jones Act Repeal

The magic of Fibonacci numbers. Simple series. Fascinating creations!

Biologist Mohamed Hijri brings to light a farming crisis no one is talking about: We are running out of phosphorus. (TED talk in French, subtitled.)

 

As 2013 comes to a close it is worth remembering that Honolulu's $5.2 Billion rail project is a testament of the power of government and special interests to get their way.  The Honolulu Civil Beat's multiple polls over the years show that the rail project never had a public approval of over 35%. Here’s a link to a slideshow summary I presented at the ADC conference in Washington, D.C. in mid-October.

My first transportation wish for 2014: Hawaii needs a motorcycle helmet law. It’s a no brainer! Just read these few lines about the impact of injuries of motorcyclists without helmets: “The helmet-less are distinctive, says Dr. Lori Terryberry-Spohr: they suffer ‘diffuse’ internal bleeding and cell death across large areas. Such patients typically run up $1.3 million in direct medical costs. Fewer than a third work again. A study of helmet-less bikers admitted to one large hospital, cited by the Centers for Disease Control, found that taxpayers paid for 63% of their care.”

My second transportation wish for 2014: Hawaii gets an exemption from the Jones Act which artificially inflates the cost of living for all of us. BusinessWeek observes that “when large container ships filled with bicycles and sleeper sofas leave China for the U.S., they don’t stop in Hawaii to unload cargo bound for that state before continuing to Los Angeles or Seattle.” Unfortunately status quo politicians such as Hirono, Schatz and Hanabusa are strong supporters of the Jones Act. And fake energy solutions. They cost Hawaii dearly … expensive gas, expensive power, expensive groceries, and extra taxation on everything for the rail.  Other than that, Hawaii Democrats are all about support for the little guy ;)

Merry Christmas and Best Wishes for 2014!

Mayor Enrique Peñalosa: Why buses represent democracy in action

1998-2001 Bogota Mayor Enrique Peñalosa: "An advanced city is not one where even the poor use cars, but rather one where even the rich use public transport."

In this TED talk, the former mayor of Bogotá shares some of the tactics he used to change the system in the Colombian capital.

"Buses have great capacity. For example this system in Guanzhou is moving more people per hour than all subway lines in China, except one in Beijing, at a fraction of the cost."

Senator Schatz is Wrong about Wind Energy -- Part 2: Sample Responses

Most people dislike irresponsible calls for "improvement at any cost" although some accept cost-ineffective renewables. The quotes below are a sample of the responses I received to my AIKEA FOR HONOLULU No. 31.


Alexa: Thank you for the informative email. But I still do not know what we the poor residents can do to help ourselves and Hawaii from the increasing expense.

Patty: They surely are an eye sore.  Did not appreciate seeing them as I toured visiting friends around the island.

Teri H.: “No” to liquefied gas. At some point, someone has to have the courage to advocate and implement renewable energy.

Robert: 3 cents per kw, does that include the cost of Columbia river dams and lost salmon runs?
No such thing as a free lunch but you are right about distributed pv.

Greg W.: Tell them to come to South Point on the Big Island. Are they trying to finish off the Nene and the Io?

John D.: wind energy, in my opinion is better than solar, or at least compliments it. just note all of us who have blue water sailboats- sun by day, and wind by nite- at nite, the sun is gone, but the wind blows, continuing to give energy. i like that. i don't like the idea of huge turbines in my immediate neighborhood, but small individual ones like i mentioned, are fantastic... keeps the beer cold.

Thomas S.: What is wrong with a Babcock and Wilcox 300 MW nuclear plant?  The most ecologically sensitive plant and with power storage that will keep Hawaii lit a for a long time.
        Liquefied Natural Gas is replacing the Kewaunee, Wis. Nuclear Plant that my father helped build in 1960......my mom, still gets 10 cent per KWH retail power out of that plant as of this moment.  (I checked her electric bill).

Bruce: I also agree with you that rooftop solar can make it on its own, without any state or federal tax credits, which are expected to expire in a couple of years.  We were fortunate to take advantage of the credits and our $50K system cost us just $17.5K.  It should pay for itself in 4 years.  Without tax credits, it would still pay for itself in 12 years and, because we purchased well-designed panels, I expect the lifetime to exceed 30 years.  We installed PV panels on our cabin in Colorado 20+ years ago, and they are still working fine...even being exposed to snow.

Patrick P: how about wind turbines, pv, and rain turbines on all erected light fixtures across the state?

Kaniu, Big Island: Mahalo nui Panos for the truth

Linda P.: Panos, we appreciate you!  Thank you for fighting the good fight and for keeping us informed.  Wish the good senator (and many others) had your intelligence, logic and values!

Valere: Thank you for always telling it like it is and for doing such credible research. I do disagree, however, about the PV systems because most of the panels are constructed in China and the mining of materials used in the panels is extremely toxic. Firefighters in California can refuse to fight a fire on building that has solar panels. And these projects survive on subsidies. It is fallacious to say that the tax benefits received by individuals and corporations are not subsidies. It's just a different name for the same thing.

S.V, Pukalani: I speak from looking hard at rooftop solar installations on Maui.  It is a wonderful and economic problem.  The only sticking point here is that Maui Electric has limited the number of penetration circuits allowed for home solar.  Reason - it impinges on their base load generation.

Tim D.: How about something simpler:  Cut demand by tax credits (and building code) for simple, non capital-intensive technologies like insulation, attic fans, and best-practices lighting (Say Energy Star Gold rating).  Mandate homes (single family & up to 4-plexes) convert to solar power hot water over the next decade.

Gordon K., Retired HECO: In November 2012 I attended the Hawaii Health Dept. hearing on Greenhouse Gas regulations.  Everybody was there--Health Dept., engineers, regulators, utilities and refineries, and environmentalists.
     I asked a question.  We live in a highrise apartment, and electricity costs us $200 per month.  I asked how much our electric bill would be after all of the solar and wind farms, rooftop solar, and undersea cables are built.  There was total silence.  A few people pointed up at the ceiling.  Afterward an engineer told me, "That was a novel question you asked.  No one ever asked that question before."
     In other words we all accepted the renewable energy without question or regard for cost.  Now that we're retired and living on pensions, cost matters a lot.  I intend to ask that question a lot more in the future.

AIKEA FOR HONOLULU No. 31 – Senator Schatz is Wrong about Wind Energy

A TV ad started last week shows U.S. Senator Brian Schatz promoting “energy that’s moving Hawaii forward. Senator Brian Schatz is leading the effort to harness our incredible wind energy potential with tax credits to grow wind energy production that would create thousands of new jobs and clean energy.”

Hawaii residents from Waianae to Kahuku, from Molokai to Lanai, and everywhere in the between dislike wind turbines. Senator Schatz promotes more taxpayer monies for special interests who are peddling a technology that cannot make it on its own. He is wrong for the following reasons.

Independently from any politics, a Punahou and UH-Manoa graduate student and I conducted detailed research on cost effective energy solutions for Hawaii, by examining all major energy sources available to Hawaii.  A summary of our work was accepted by Pacific Business News last month, and was published this week: Making the Case for Liquefied Natural Gas.

Our research concluded that wind and solar power plants are ineffective; they require multimillion dollar subsidies. The solar energy in our research was the power plant type that consumes land in order to produce some daytime electricity, similar to the 36 acres wasted by the Pohoiki plant at Kalaeloa to produce only 5 MW!

On the other hand, solar photovoltaic panels have been locally accepted by thousands of homeowners and businesses. Rooftop PV is an incremental, distributed power source with near zero visual or other negative impacts for Hawaii, as I explained here: Big Rooftop Solar Panels Make Sense in Hawaii - without Any Subsidies! Rooftop PV supports dozens of local small businesses.

Recently BMW decided to locate its electric vehicle chassis assembly in a region of Washington State because the local electricity rate is 3 cents (!) per kilowatt-hour.  HECO’s rate on Oahu is over 33 cents and thanks to Senator Schatz’s flawed advocacy, our electricity costs will increase, and Hawaii will become increasingly uncompetitive.

I urge Senator Schatz to review the three page summary of our research titled The Next 100 MW Power Plant for Oahu and modify his views about renewable energy. America’s future cannot be supported by intermittent, unreliable and expensive energy.

Hawaii does not need unsightly turbines and cannot afford their cost and flaky reliability. And please stop bragging about the jobs. Hawaii has fewer than 50 turbines and fewer than 50 people are located here to manage them … that is, when the turbines are not down due to fires or other self-inflicted damage.

Technology and Technological Innovations

Technology and technological innovations are presented in this installment of my O'lelo show PANOS 2050: Solutions for a Sustainable Hawaii.

The Economist:  Before 1750, the standard of living improved at a glacial pace, if at all. Farming in the early 18th century was not that different from farming in Biblical times. The Romans had invented plumbing before the very concept was forgotten for millennia. Then, something happened. Within two centuries the biggest material problems of pre-industrial life had been solved: ...

The first wave of major modern technology and innovation consisted of the steam engine, the locomotive and the telegraph.

Second and final big wave of major modern technology and innovation consisted of electrical generators, indoor plumbing and broadcast radio.  Followed by autos, oil extraction and highways.

TV, personal computers and the Internet had modest but not "wholesale" effects on our quality of life and productivity.

Honolulu Rail: 2005-2013 Slideshow

The slide show presentation titled Fighting ● Boondoggles ● Honolulu ● Rail ● Transit was presented at the 2013 American Dream conference in Washington, D.C. in mid-October 2013.  It provides a brief summary of:

• Honolulu's history of billion dollar transit plans
• Why is Honolulu Rail a boondoggle?
• What was done to stop this train?

Honolulu's $5.2 Billion rail project  is a testament of the power of government and special interests to get their way.  As the Honolulu Civil Beat's multiple polls over the years have revealed, this project never enjoyed a public approval of over 35%.

Current Social and Economic Trends

Current major social and economic trends that affect the US and Hawaii are presented in this installment of my O'lelo show PANOS 2050: Solutions for a Sustainable Hawaii. From developments in China to politicians' pay in several countries.

Let Them Eat Cake

Honolulu's public is starved for traffic congestion relief. The power elite has responded with "let them have rail."

To many citizens and to most elected officials it is clear that if the government provides overhead rail, people stuck in traffic congestion will take it. "How come you don't support the rail?" They ask me. "Haven't you seen the traffic from Kapolei to the UH?"

Planners, politicians and hired spinsters have spend a lot of time and money in trying to convince people that rail is a solution to traffic congestion, jobs, development, the environment, etc. They've made many false promises. People are desperate for some relief to their daily commute after all the taxes they pay. It's easy to sell false hope.

Having lost most arguments about traffic congestion relief, environmental benefits and "thousands of new jobs," the propaganda has shifted to "transit oriented development" or TOD.

Planners, politicians and hired spinsters are extolling the mostly imaginary virtues of TOD.  Banks, developers and contractors are salivating (and bankrolling politicians) over those TODs because they are indeed, Taxes Offered to Developers to develop subsidized properties around transit stations. By the way, TOD needs Transit not Rail. Buses on express lanes will do fine, at a much lower cost than rail and transit buses offer direct connections to many locations because they are flexible.

There is little doubt that drivers and passengers dislike bumper to bumper traffic. However, they need their vehicle to meet the obligations of their daily life in space and time. Have you seen city administration and HART officials going places on TheBus?

People need and consume electricity in Hawaii. Electricity in Hawaii costs over 300% the mainland average. Have you seen people gathering wood to cook and heat water? No? Expect a similar reaction to rail. Very very few will switch to it.

John Brizdle recently commented: "It will be very hard to get car commuters to get out of their cars to ride rail. They will have to give up their comfortable seats, door to door service, snacks, drinks, Bluetooth phone conversations and then stand-up on rail averaging 27 miles per hour."

Indeed, the reality is this. If you build it, they won't come. Here is the evidence: During the last decade, the U.S. spent hundreds of billions of dollars in new rail systems and upgraded transit buses. Did transit share grow? No! Look at the U.S. Census data below. The share of mass transit is stuck at or below 5%. All the rest of urban travel is done by car, carpool, bike, walk, or telecommuting.

When the 2010 U.S. Census numbers came out in 2011, the American Public Transit Association gloated that mass transit ridership grew by 8.5% in the ten years between 2000 and 2010. True, but in the same decade the U.S. population grew by 9.7%. Clearly despite large expenditures and expansions, mass transit usage does not even keep up with population growth, let alone gaining share to provide any relief to roadway congestion.

No matter how sleek and expensive the new transit offerings are, less than 5% of the travelers chose them. Year after year. But government and politicians support these boondoggles. Why?  Follow the money.

Professor Bent Flyvbjerg of Oxford University has proved that government rail projects are by far the most fraught with deception and delusion among all large infrastructure projects:

• Deception means that the proponents lie to their constituents. Basically most cost and ridership forecasts for rail are very wrong. Costs are stated too low. Ridership is stated too high.
• Delusion means that the rail proponents believe that their project is better and different than all the failures of the past, including the national evidence shown above. 

This history of public trust and public funds mismanagement is repeating in Honolulu. There is little doubt that Honolulu Rail will be much like the Tren Urbano of San Juan, Puerto Rico. It was finished in 2006, almost 100% over budget and its ridership level has not even reached 50% of the forecast!

Rail projects are tax-payer financed and government-controlled. They take a decade or more to complete and in the end, like Puerto Rico, nobody is held accountable for the gross errors and lies. In addition to "history repeating itself" in Honolulu, I have 10+1 reasons why I do not support the Honolulu rail:

1. Rail is the 1% solution to Oahu's traffic congestion problem.
2. Spending over five billion dollars for a non-solution is unethical.
3. The original and the current system are very different. Offering the public 41% less for a 73% higher price is a lie and a breach of public trust.
4. Construction will cause critical lane closures and result in debilitating congestion for a decade.
5. TheBus will be changed from a core operation to a feeder operation hurting those that need its service the most.
6. Rail comes with a high security risk. It's a magnet for shooters, suicides, groping, robberies, drug trafficking...
7. Rail makes Honolulu less resilient during and after a natural disaster.
8. Cannot afford it. Hawaii is fifth worst state in the country in pension and health benefit funding liability.
9. City budgets will be crushed by the union raises, the EPA sewer consent decree and the pension liabilities. Adding the rail construction cost-overruns will lower credit rating and ability to borrow and pay debt and other obligations. This is a long spelling for bankruptcy.
10. During 2008 elections the ratio of pro-rail lies to anti-rail information in advertising media was more than 10 to 1. Taxpayer monies were used to support rail and, indirectly, rail-supporting politicians. That election process was indeed unethical. This repeated in 2012 with a smear campaign against Gov. Cayetano.

Last but not least, Honolulu is beautiful. Overhead rail is ugly and noisy. Installing overhead rail in beautiful Honolulu is a crime.

Rail is politics. Hawaii politics is all about Democrats. They proclaim their care for the little guy but they are cutting the little guy's bus, degrade his quality of life and cost of living with ever worsening traffic congestion, and raise the tax for one million little guys by several billion dollars for the benefit of capitalist interests!

Such politics take us back to eighteenth century France.  Instead of cheap roads for the 80% of travelers they offer pricy rail for the 6% who ride transit... "Let them eat cake" 250 years later.

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Postscript: Visit John Pritchett's collection of rail cartoons. Although the rail is no joke, his cartoons are a humorous take of the history of Hawaii's biggest fiasco ever.

Comparing Economies: Hawaii and Greece -- The Writing on the Wall

Recently UHERO, that is the Economic Research Organization of the University of Hawaii, presented a detailed inforgraphic of jobs in Hawaii. The inforgraphic answers questions like: What type of jobs, how many and how much do they make?

UHERO explains their graphic as follows: Each colored rectangle represents a single occupation. The size of the rectangle indicates the number of jobs. The color of the rectangle indicates that occupation's median annual salary relative to the overall median.

The inforgraphic is pictured below but I strongly encourage to visit UHERO so that you can use your mouse to explore the data in each category that interests you.

What I found stunning is this: How is it possible that all these people live in Hawaii where a (roughly) $75,000 income is necessary, nearly double US average?

This graph suggests to me that Hawaii's economy is very much like Greece's pre-default economy. The majority of Hawaii earners are low earners particularly in comparison with the cost of living in Hawaii. So how do so many people make it in Hawaii? (How was it possible for Greece to be one of the largest markets for luxury cars?)

I suppose that at least three things are in play in Hawaii (like Greece):
(1) A large para-economy such as groups of laborers building rock walls, cutting trees and trimming bushes that never report any income. This is just an example. Check Craigslist for carport car mechanics as another example. And so on.
(2) Some under-reporting of taxes by people who have proper jobs or own businesses. (This was vast in Greece.) Do you recall the Hawaii Dept. of Taxation efforts to put cashier machines in farmers markets?
(3) A vast governmental welfare operation dedicated to income redistribution and supporting "the poor with Escalades in the public housing parking lots", as car repairman Nitta, 2008 mayor candidate used to say. Greece had that too.

The score Hawaii-Greece is 4 for 4: Many low income earners, para-economy, tax evasion and big welfare. Wouldn't you say that the writing on the wall is too obvious for Hawaii?