O:9:"magpierss":24:{s:6:"parser";i:0;s:12:"current_item";a:0:{}s:5:"items";a:10:{i:0;a:15:{s:5:"title";s:35:"What Should We Learn From Michigan?";s:4:"link";s:64:"http://feedproxy.google.com/~r/KvnusForThePeople/~3/4bZSOK_NAuM/";s:8:"comments";s:83:"http://kvnuforthepeople.com/2009/09/04/what-should-we-learn-from-michigan/#comments";s:7:"pubdate";s:31:"Fri, 04 Sep 2009 06:52:29 +0000";s:2:"dc";a:1:{s:7:"creator";s:14:"Federal Farmer";}s:8:"category";s:5:"Posts";s:4:"guid";s:35:"http://kvnuforthepeople.com/?p=4594";s:11:"description";s:1536:"I came across a really interesting op-ed in the Wall Street Journal this morning about government investment in Michigan and how it has failed to generate job growth. As we all know, Michigan is a state which has been facing serious economic decline for years now and has the highest unemployment rate in the United [...]


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Related posts brought to you by <a href='http://mitcho.com/code/yarpp/'>Yet Another Related Posts Plugin</a>.";s:7:"content";a:1:{s:7:"encoded";s:7944:"<p>I came across a really interesting op-ed in the <a href="http://www.wsj.com/"><span style="font-style: italic">Wall Street Journal</span></a> this morning about government <a href="http://www.michigan.gov/documents/gov/Econ_job_223200_7.pdf">investment</a> in <a href="http://www.mlive.com/business/index.ssf/2009/01/michigan_crafts_wish_list_for.html">Michigan </a>and how it has failed to generate job growth. As we all know, Michigan is a state which has been facing serious <a href="http://www.comerica.com/Comerica_Content/Corporate_Communications/Docs/MichiganEconomicBrief_2007_02.pdf">economic decline</a> for years now and has the <a href="http://rawfinance.wordpress.com/2009/08/24/mass-layoffs-for-july-2009-decline-michigan-has-highest-unemployment-rate/">highest unemployment</a> rate in the United States.</p>
<p>From the <a href="http://online.wsj.com/article/SB10001424052970204313604574328792152010638.html"><span style="font-style: italic">Wall Street Journal</span></a>:</p>
<blockquote><p>A central belief in Washington and most state capitals nowadays is that government should &#8220;invest&#8221; in certain businesses—&#8221;clean tech,&#8221; say, or manufacturing—to drive job creation. We hope it all turns out better than it has in Michigan.</p>
<p><a name="U10114545836EHE"></a>For the past 14 years, Lansing politicians have offered $3.3 billion in tax credits through the Michigan Economic Development Corporation and spent another $1.6 billion in outlays to create and retain jobs. The subsidies have ranged from tax breaks for Hollywood, to money for new industrial plants, to millions for TV ads starring Jeff Daniels and Tim Allen talking about business and tourism in the state.</p>
<p>It&#8217;s one of the largest experiments in smokestack chasing in American history, but one thing it hasn&#8217;t done is create jobs. An exhaustive new 100-page study by the Mackinac Center for Public Policy, a Michigan think tank, has reviewed where all the money has gone and what came of it. The study finds that for every 100 jobs that were promised with these tax credits over 14 years, only 29 arrived. Dare we call this cash for clunkers?</p>
<p>Economist Michael Hicks, a business school professor at Ball State, calculated the rate of return on the corporate tax credits. He found that for every $1 million in tax credits awarded, there were 95 lost manufacturing jobs in the counties where the companies were located—a result that is &#8220;strongly statistically significant.&#8221; There was no gain in personal income in these counties. Perhaps more jobs would have been lost without the credits, but what is undeniably clear is that the businesses that got the government loot were not magnets for other employers.</p></blockquote>
<p>The statistics intrigued me, and so I decided to look further into the Mackinac Center&#8217;s findings. It appears that the &#8220;<a href="http://www.mackinac.org/article.aspx?ID=10896">study</a>&#8221; mentioned in the article was an analysis of the <a href="http://www.michiganadvantage.org/">Michigan Economic Development Corporation</a> (MEDC) and to an extent, the Michigan Economic Growth Authority (MEGA), and how they have failed to encourage job creation through their economic programs.</p>
<p>Here are a couple of gems from the <a href="http://www.mackinac.org/article.aspx?ID=10896">review</a>&#8230;</p>
<blockquote><p>&#8220;Are [politicians] really trying to attract new business development or are they engaging in maneuvers designed to please current state business interests and voters? The need for such questioning becomes even more acute when we find that, while these policies are often introduced to the chorus line of &#8216;jobs, jobs, jobs,&#8217; <span style="font-weight: bold">there is little evidence to show that these direct financial incentives actually have any impact on state employment levels</span>.&#8221;</p></blockquote>
<p>[<a href="http://www.arts.auckland.ac.nz/staff/index.cfm?S=STAFF_mmin012">Michael Mintrom</a> &amp; Lucinda Ramsey, MSU]</p>
<p>Mackinac then reports a few statistics indicative of the overall failure of MEDC&#8230;</p>
<ul>
<blockquote>
<li>Michigan was ranked 16th among the 50 states in per-capita state GDP in 1999, the year the MEDC was formed. The state has since tumbled to 41st.</li>
<li>From 1999 through 2008, Michigan was the only state in the union with a negative state GDP growth rate.</li>
<li>Michigan&#8217;s per-capita personal income ranking has tumbled from 16th to 34th since 1999 and is now 11.2 percent below the national average, the lowest point it has reached since the start of the Great Depression, when such record-keeping began.</li>
</blockquote>
</ul>
<p>If government spending is the solution to a state or nation&#8217;s economic woes, then why isn&#8217;t Michigan finding relief?</p>
<p>Michigan is a model for the future, and should serve as a warning to not only other states, but the federal government. For one, Michigan&#8217;s example is time-tested. The state has been working to spend itself out of an economic recession for more than a decade and has tried just about everything to combat rising unemployment. Second, in Michigan politics most often block true economic growth; Michigan&#8217;s progressive politics <a href="http://www.mackinac.org/article.aspx?ID=9325">circumvent </a>the economic policies of MEDC, for example.<br />
Instead of looking at <a href="http://www.mlive.com/business/index.ssf/2009/01/michigan_crafts_wish_list_for.html">central planning</a> in grandiose terms, all of us should be willing to dissect the economic <a href="http://www.reuters.com/article/GCA-Economy/idUSTRE5800TX20090901">realities </a>in <a href="http://www.tressugar.com/1849925">specific </a>locations. While government spending can directly effect economic growth, there are countless factors which can hedge the way to growth, and much of the &#8220;growth&#8221; achieved is illusionary. As Hayek states, such policies force a country to continue trying for growth through &#8220;artificial means,&#8221; meaning that the growth is not reliable long-term.</p>
<p>Perhaps the United States itself should learn from Michigan.</p>
<p>- Marc</p>
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Related posts brought to you by <a href='http://mitcho.com/code/yarpp/'>Yet Another Related Posts Plugin</a>.";s:12:"atom_content";s:7944:"<p>I came across a really interesting op-ed in the <a href="http://www.wsj.com/"><span style="font-style: italic">Wall Street Journal</span></a> this morning about government <a href="http://www.michigan.gov/documents/gov/Econ_job_223200_7.pdf">investment</a> in <a href="http://www.mlive.com/business/index.ssf/2009/01/michigan_crafts_wish_list_for.html">Michigan </a>and how it has failed to generate job growth. As we all know, Michigan is a state which has been facing serious <a href="http://www.comerica.com/Comerica_Content/Corporate_Communications/Docs/MichiganEconomicBrief_2007_02.pdf">economic decline</a> for years now and has the <a href="http://rawfinance.wordpress.com/2009/08/24/mass-layoffs-for-july-2009-decline-michigan-has-highest-unemployment-rate/">highest unemployment</a> rate in the United States.</p>
<p>From the <a href="http://online.wsj.com/article/SB10001424052970204313604574328792152010638.html"><span style="font-style: italic">Wall Street Journal</span></a>:</p>
<blockquote><p>A central belief in Washington and most state capitals nowadays is that government should &#8220;invest&#8221; in certain businesses—&#8221;clean tech,&#8221; say, or manufacturing—to drive job creation. We hope it all turns out better than it has in Michigan.</p>
<p><a name="U10114545836EHE"></a>For the past 14 years, Lansing politicians have offered $3.3 billion in tax credits through the Michigan Economic Development Corporation and spent another $1.6 billion in outlays to create and retain jobs. The subsidies have ranged from tax breaks for Hollywood, to money for new industrial plants, to millions for TV ads starring Jeff Daniels and Tim Allen talking about business and tourism in the state.</p>
<p>It&#8217;s one of the largest experiments in smokestack chasing in American history, but one thing it hasn&#8217;t done is create jobs. An exhaustive new 100-page study by the Mackinac Center for Public Policy, a Michigan think tank, has reviewed where all the money has gone and what came of it. The study finds that for every 100 jobs that were promised with these tax credits over 14 years, only 29 arrived. Dare we call this cash for clunkers?</p>
<p>Economist Michael Hicks, a business school professor at Ball State, calculated the rate of return on the corporate tax credits. He found that for every $1 million in tax credits awarded, there were 95 lost manufacturing jobs in the counties where the companies were located—a result that is &#8220;strongly statistically significant.&#8221; There was no gain in personal income in these counties. Perhaps more jobs would have been lost without the credits, but what is undeniably clear is that the businesses that got the government loot were not magnets for other employers.</p></blockquote>
<p>The statistics intrigued me, and so I decided to look further into the Mackinac Center&#8217;s findings. It appears that the &#8220;<a href="http://www.mackinac.org/article.aspx?ID=10896">study</a>&#8221; mentioned in the article was an analysis of the <a href="http://www.michiganadvantage.org/">Michigan Economic Development Corporation</a> (MEDC) and to an extent, the Michigan Economic Growth Authority (MEGA), and how they have failed to encourage job creation through their economic programs.</p>
<p>Here are a couple of gems from the <a href="http://www.mackinac.org/article.aspx?ID=10896">review</a>&#8230;</p>
<blockquote><p>&#8220;Are [politicians] really trying to attract new business development or are they engaging in maneuvers designed to please current state business interests and voters? The need for such questioning becomes even more acute when we find that, while these policies are often introduced to the chorus line of &#8216;jobs, jobs, jobs,&#8217; <span style="font-weight: bold">there is little evidence to show that these direct financial incentives actually have any impact on state employment levels</span>.&#8221;</p></blockquote>
<p>[<a href="http://www.arts.auckland.ac.nz/staff/index.cfm?S=STAFF_mmin012">Michael Mintrom</a> &amp; Lucinda Ramsey, MSU]</p>
<p>Mackinac then reports a few statistics indicative of the overall failure of MEDC&#8230;</p>
<ul>
<blockquote>
<li>Michigan was ranked 16th among the 50 states in per-capita state GDP in 1999, the year the MEDC was formed. The state has since tumbled to 41st.</li>
<li>From 1999 through 2008, Michigan was the only state in the union with a negative state GDP growth rate.</li>
<li>Michigan&#8217;s per-capita personal income ranking has tumbled from 16th to 34th since 1999 and is now 11.2 percent below the national average, the lowest point it has reached since the start of the Great Depression, when such record-keeping began.</li>
</blockquote>
</ul>
<p>If government spending is the solution to a state or nation&#8217;s economic woes, then why isn&#8217;t Michigan finding relief?</p>
<p>Michigan is a model for the future, and should serve as a warning to not only other states, but the federal government. For one, Michigan&#8217;s example is time-tested. The state has been working to spend itself out of an economic recession for more than a decade and has tried just about everything to combat rising unemployment. Second, in Michigan politics most often block true economic growth; Michigan&#8217;s progressive politics <a href="http://www.mackinac.org/article.aspx?ID=9325">circumvent </a>the economic policies of MEDC, for example.<br />
Instead of looking at <a href="http://www.mlive.com/business/index.ssf/2009/01/michigan_crafts_wish_list_for.html">central planning</a> in grandiose terms, all of us should be willing to dissect the economic <a href="http://www.reuters.com/article/GCA-Economy/idUSTRE5800TX20090901">realities </a>in <a href="http://www.tressugar.com/1849925">specific </a>locations. While government spending can directly effect economic growth, there are countless factors which can hedge the way to growth, and much of the &#8220;growth&#8221; achieved is illusionary. As Hayek states, such policies force a country to continue trying for growth through &#8220;artificial means,&#8221; meaning that the growth is not reliable long-term.</p>
<p>Perhaps the United States itself should learn from Michigan.</p>
<p>- Marc</p>
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But Utah parents are worried.  Districts have been flooded with calls comparing this call to the tactics [...]


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<p>But Utah parents are worried.  Districts have been flooded with calls comparing this call to the tactics of Hitler and Nazi Germany, and pleas for schools to not participate in the call for fear &#8220;children will be indoctrinated.&#8221;  The Florida GOP and <del datetime="2009-09-03T19:49:49+00:00">Darth Sidious</del> <a href="http://utdems.blogspot.com/2009/09/right-wing-extremism-reaching-new.html">Gayle Ruzicka</a> are warning parents it&#8217;s an attempt to &#8220;spread the socialist agenda&#8221; in schools.</p>
<p>I&#8217;ve spoken with local school district officials about what they&#8217;re hearing, and what they plan to do.</p>
<p>We&#8217;ll discuss it, and take your calls today at 4.</p>
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But Utah parents are worried.  Districts have been flooded with calls comparing this call to the tactics [...]


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Related posts brought to you by <a href='http://mitcho.com/code/yarpp/'>Yet Another Related Posts Plugin</a>.";s:12:"atom_content";s:2784:"<p>On Tuesday, the President, following in the footsteps of <a href="http://twitter.com/jaketapper/status/3734415111">Reagan</a>, Bush, Clinton, and Bush Jr., will make a phone call to classrooms across the nation with <a href="http://www.ed.gov/admins/lead/academic/bts.html">what the White House says</a> is a simple &#8220;stay in school&#8221; message.</p>
<p>But Utah parents are worried.  Districts have been flooded with calls comparing this call to the tactics of Hitler and Nazi Germany, and pleas for schools to not participate in the call for fear &#8220;children will be indoctrinated.&#8221;  The Florida GOP and <del datetime="2009-09-03T19:49:49+00:00">Darth Sidious</del> <a href="http://utdems.blogspot.com/2009/09/right-wing-extremism-reaching-new.html">Gayle Ruzicka</a> are warning parents it&#8217;s an attempt to &#8220;spread the socialist agenda&#8221; in schools.</p>
<p>I&#8217;ve spoken with local school district officials about what they&#8217;re hearing, and what they plan to do.</p>
<p>We&#8217;ll discuss it, and take your calls today at 4.</p>
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Much of the stimulus spending is just beginning to trickle through the economy, with spending expected to peak sometime later this year or in early 2010. The government has funneled about $60 billion of the $288 billion in promised tax cuts to U.S. households, while about $84 billion of the $499 [...]


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<blockquote>Much of the stimulus spending is just beginning to trickle through the economy, with spending expected to peak sometime later this year or in early 2010. The government has funneled about $60 billion of the $288 billion in promised tax cuts to U.S. households, while about $84 billion of the $499 billion in spending has been paid. About $200 billion has been promised to certain projects, such as infrastructure and energy projects.</p>
<p>Economists say the money out the door &#8212; combined with the expectation of additional funds flowing soon &#8212; is fueling growth above where it would have been without any government action.</p>
<p>Many forecasters say stimulus spending is adding two to three percentage points to economic growth in the second and third quarters, when measured at an annual rate. The impact in the second quarter, calculated by analyzing how the extra funds flowing into the economy boost consumption, investment and spending, helped slow the rate of decline and will lay the groundwork for positive growth in the third quarter &#8212; something that seemed almost implausible just a few months ago. Some economists say the 1% contraction in the second quarter would have been far worse, possibly as much as 3.2%, if not for the stimulus.</p>
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<p>Economists say the money out the door &#8212; combined with the expectation of additional funds flowing soon &#8212; is fueling growth above where it would have been without any government action.</p>
<p>Many forecasters say stimulus spending is adding two to three percentage points to economic growth in the second and third quarters, when measured at an annual rate. The impact in the second quarter, calculated by analyzing how the extra funds flowing into the economy boost consumption, investment and spending, helped slow the rate of decline and will lay the groundwork for positive growth in the third quarter &#8212; something that seemed almost implausible just a few months ago. Some economists say the 1% contraction in the second quarter would have been far worse, possibly as much as 3.2%, if not for the stimulus.</p>
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h/t: Jessicathe


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<p>Come on. Don&#8217;t tell me you&#8217;ve never wanted to do this. Maybe not hit a crying kid (or a kid who is just being a brat/snot/idiot) but maybe yell?</p>
<p>h/t: Jessicathe</p>
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Come on. Don&#8217;t tell me you&#8217;ve never wanted to do this. Maybe not hit a crying kid (or a kid who is just being a brat/snot/idiot) but maybe yell?
h/t: Jessicathe


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<p>Come on. Don&#8217;t tell me you&#8217;ve never wanted to do this. Maybe not hit a crying kid (or a kid who is just being a brat/snot/idiot) but maybe yell?</p>
<p>h/t: Jessicathe</p>
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I had assumed she was going to go back to her job as governor, but a week or two after she got back she started talking about how nice it would be to quit and write a book or do a show and make &#8220;triple the money.&#8221; It was, to [...]


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Related posts brought to you by <a href='http://mitcho.com/code/yarpp/'>Yet Another Related Posts Plugin</a>.";s:7:"content";a:1:{s:7:"encoded";s:2177:"<p>Levi Johnston unloads on <a href="http://www.vanityfair.com/online/daily/2009/09/levi-johnston.html">Vanity Fair</a>:<br />
<blockquote>I had assumed she was going to go back to her job as governor, but a week or two after she got back she started talking about how nice it would be to quit and write a book or do a show and make &#8220;triple the money.&#8221; It was, to her, &#8220;not as hard.&#8221; She would blatantly say, &#8220;I want to just take this money and quit being governor.&#8221;</p></blockquote>
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I had assumed she was going to go back to her job as governor, but a week or two after she got back she started talking about how nice it would be to quit and write a book or do a show and make &#8220;triple the money.&#8221; It was, to [...]


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Related posts brought to you by <a href='http://mitcho.com/code/yarpp/'>Yet Another Related Posts Plugin</a>.";s:12:"atom_content";s:2177:"<p>Levi Johnston unloads on <a href="http://www.vanityfair.com/online/daily/2009/09/levi-johnston.html">Vanity Fair</a>:<br />
<blockquote>I had assumed she was going to go back to her job as governor, but a week or two after she got back she started talking about how nice it would be to quit and write a book or do a show and make &#8220;triple the money.&#8221; It was, to her, &#8220;not as hard.&#8221; She would blatantly say, &#8220;I want to just take this money and quit being governor.&#8221;</p></blockquote>
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From CNET News:
Internet companies and civil liberties groups were alarmed this spring when a U.S. Senate bill proposed handing the White House the power to disconnect private-sector computers from the Internet.
They&#8217;re not much happier about [...]


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Related posts brought to you by <a href='http://mitcho.com/code/yarpp/'>Yet Another Related Posts Plugin</a>.";s:7:"content";a:1:{s:7:"encoded";s:8327:"<p>Despite the overwhelming attention given to healthcare right now, there is another issue which is <a href="http://blogs.computerworld.com/14627/obamas_emergency_powers_over_internet_cybersecurity_bill_s_773">gaining notoriety</a>, particularly on the web.</p>
<p>From <a href="http://news.cnet.com/8301-13578_3-10320096-38.html"><em>CNET News</em></a>:</p>
<blockquote><p>Internet companies and civil liberties groups were <a href="http://news.cnet.com/8301-13578_3-10200710-38.html">alarmed</a> this spring when a U.S. Senate bill <a href="http://thomas.loc.gov/cgi-bin/bdquery/z?d111:s.00773:">proposed</a> handing the White House the power to disconnect private-sector computers from the Internet.</p>
<p>They&#8217;re not much happier about a revised version that aides to Sen. Jay Rockefeller, a West Virginia Democrat, have spent months drafting behind closed doors. CNET News has obtained a copy of the 55-page draft of S.773 (<a href="http://www.politechbot.com/docs/rockefeller.revised.cybersecurity.draft.082709.pdf">excerpt</a>), which still appears to permit the president to seize temporary control of private-sector networks during a so-called cybersecurity emergency.</p>
<p>The new version would allow the president to &#8220;declare a cybersecurity emergency&#8221; relating to &#8220;non-governmental&#8221; computer networks and do what&#8217;s necessary to respond to the threat. Other sections of the proposal include a federal certification program for &#8220;cybersecurity professionals,&#8221; and a requirement that certain computer systems and networks in the private sector be managed by people who have been awarded that license.</p>
<p>&#8220;I think the redraft, while improved, remains troubling due to its vagueness,&#8221; said Larry Clinton, president of the <a href="http://www.isalliance.org/">Internet Security Alliance</a>, which counts representatives of Verizon, Verisign, Nortel, and Carnegie Mellon University on its board. &#8220;It is unclear what authority Sen. Rockefeller thinks is necessary over the private sector. Unless this is clarified, we cannot properly analyze, let alone support the bill.&#8221;</p>
<p>Representatives of other large Internet and telecommunications companies expressed concerns about the bill in a teleconference with Rockefeller&#8217;s aides this week, but were not immediately available for interviews on Thursday.</p></blockquote>
<p>In an earlier post I discussed the potential hazards of cybersecurity threats from abroad, namely from North Korea, China, and Russia. According to proponents of this bill, it is the responsibility of the government to insure the <em>stability </em>of the web in a time of crisis.</p>
<p>Yet as we have learned over the years, the government is incredibly incompetent in responding to cybersecurity threats; in fact, the DHS recently <a href="http://news.cnet.com/DHS-scores-F-on-cybersecurity-report-card/2100-1009_3-6050520.html?tag=mncol;txt">scored an &#8216;F&#8217;</a> in an &#8220;annual computer security report card.&#8221; What makes members of Congress suppose that the government can adequately regulate and secure the web in a time of crisis when it continuously proves to be incapable of doing so normally?</p>
<p>Michael Masnick, founder of <a href="http://www.techdirt.com/articles/20081020/0324482588.shtml"><em>Techdirt</em></a>, sums up this criticism in a recent blog post:</p>
<blockquote><p>But the bigger issue is why the government should be taking control over private networks. This is the same gov&#8217;t that doesn&#8217;t let people in the State Department use Firefox and which thinks that RealPlayer is the <a href="http://www.techdirt.com/articles/20090828/0055076030.shtml">state of the art</a> in online video streaming. Even if there were a &#8220;cybersecurity emergency,&#8221; I would think the last people I&#8217;d want to take charge would be the federal government.</p></blockquote>
<p>Aside from the federal government&#8217;s overall ineptitude, the most important question concerns the President&#8217;s &#8220;emergency powers.&#8221; Presidential prerogative has always been a controversial issue, and this debate is no exception. When dealing with limits of power, it is best to be clear and concise in explaining the boundaries. Yet S 773 fails to provide the information clearly. Instead, it remains incredibly vague and subject to a great deal of interpretation. This makes &#8220;emergency powers&#8221; of the President that much more alarming.</p>
<p>From <a href="http://www.cbsnews.com/stories/2009/09/01/opinion/main5279421.shtml">Bruce Henderson</a> at CBS:</p>
<blockquote><p>S773 makes no attempt to outline and describe what form of emergency would trigger the use of these broad new powers to limit communication, nor any means by which it could be reviewed by anyone outside the executive branch. The bill also proscribes that the executive branch will perform periodic mapping&#8221; of private networks deemed to be critical, and those companies &#8220;shall share&#8221; requested information with the federal government.</p>
<p>Translation: the U.S. government bureaucracy will be spending your tax dollars to figure out private networks, find choke points and places where they can control the flow of communication. Furthermore, companies (such as your ISP) are going to be required, by law, to supply the federal bureaucrats with whatever network, account, usage and history information they deem appropriate. All in the name of cyber safety, you see.</p></blockquote>
<p>There are plenty of other controversial parts of this bill which should be discussed, particularly the government certification of &#8220;<a href="http://www.cbsnews.com/stories/2009/09/01/opinion/main5279421.shtml">security professionals</a>,&#8221; which greatly restricts the private sector and adds a whole new level of bureaucracy to the equation.</p>
<p>It&#8217;s strange to see the federal government attempt to reign in an already successful private sector in an arena where the government has repeatedly failed in the past. The internet is a &#8220;place&#8221; where few real regulations exist (compared to the &#8220;real world&#8221;) and has proven time and time again, to be able to effectively regulate itself through principles of liberalism (the classical kind).</p>
<p>Bottom Line: First, it is unwise for the feds to attempt to over-regulate the private sector in this way, mainly because it will only prove to be costly and ineffective. Second, this bill gives too much power to the President; power which isn&#8217;t clearly defined and would be easily abused.</p>
<p>- Marc</p>
<p><a href="http://www.opencongress.org/bill/111-s773/show">READ ENTIRE BILL HERE</a></p>
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From CNET News:
Internet companies and civil liberties groups were alarmed this spring when a U.S. Senate bill proposed handing the White House the power to disconnect private-sector computers from the Internet.
They&#8217;re not much happier about [...]


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Related posts brought to you by <a href='http://mitcho.com/code/yarpp/'>Yet Another Related Posts Plugin</a>.";s:12:"atom_content";s:8327:"<p>Despite the overwhelming attention given to healthcare right now, there is another issue which is <a href="http://blogs.computerworld.com/14627/obamas_emergency_powers_over_internet_cybersecurity_bill_s_773">gaining notoriety</a>, particularly on the web.</p>
<p>From <a href="http://news.cnet.com/8301-13578_3-10320096-38.html"><em>CNET News</em></a>:</p>
<blockquote><p>Internet companies and civil liberties groups were <a href="http://news.cnet.com/8301-13578_3-10200710-38.html">alarmed</a> this spring when a U.S. Senate bill <a href="http://thomas.loc.gov/cgi-bin/bdquery/z?d111:s.00773:">proposed</a> handing the White House the power to disconnect private-sector computers from the Internet.</p>
<p>They&#8217;re not much happier about a revised version that aides to Sen. Jay Rockefeller, a West Virginia Democrat, have spent months drafting behind closed doors. CNET News has obtained a copy of the 55-page draft of S.773 (<a href="http://www.politechbot.com/docs/rockefeller.revised.cybersecurity.draft.082709.pdf">excerpt</a>), which still appears to permit the president to seize temporary control of private-sector networks during a so-called cybersecurity emergency.</p>
<p>The new version would allow the president to &#8220;declare a cybersecurity emergency&#8221; relating to &#8220;non-governmental&#8221; computer networks and do what&#8217;s necessary to respond to the threat. Other sections of the proposal include a federal certification program for &#8220;cybersecurity professionals,&#8221; and a requirement that certain computer systems and networks in the private sector be managed by people who have been awarded that license.</p>
<p>&#8220;I think the redraft, while improved, remains troubling due to its vagueness,&#8221; said Larry Clinton, president of the <a href="http://www.isalliance.org/">Internet Security Alliance</a>, which counts representatives of Verizon, Verisign, Nortel, and Carnegie Mellon University on its board. &#8220;It is unclear what authority Sen. Rockefeller thinks is necessary over the private sector. Unless this is clarified, we cannot properly analyze, let alone support the bill.&#8221;</p>
<p>Representatives of other large Internet and telecommunications companies expressed concerns about the bill in a teleconference with Rockefeller&#8217;s aides this week, but were not immediately available for interviews on Thursday.</p></blockquote>
<p>In an earlier post I discussed the potential hazards of cybersecurity threats from abroad, namely from North Korea, China, and Russia. According to proponents of this bill, it is the responsibility of the government to insure the <em>stability </em>of the web in a time of crisis.</p>
<p>Yet as we have learned over the years, the government is incredibly incompetent in responding to cybersecurity threats; in fact, the DHS recently <a href="http://news.cnet.com/DHS-scores-F-on-cybersecurity-report-card/2100-1009_3-6050520.html?tag=mncol;txt">scored an &#8216;F&#8217;</a> in an &#8220;annual computer security report card.&#8221; What makes members of Congress suppose that the government can adequately regulate and secure the web in a time of crisis when it continuously proves to be incapable of doing so normally?</p>
<p>Michael Masnick, founder of <a href="http://www.techdirt.com/articles/20081020/0324482588.shtml"><em>Techdirt</em></a>, sums up this criticism in a recent blog post:</p>
<blockquote><p>But the bigger issue is why the government should be taking control over private networks. This is the same gov&#8217;t that doesn&#8217;t let people in the State Department use Firefox and which thinks that RealPlayer is the <a href="http://www.techdirt.com/articles/20090828/0055076030.shtml">state of the art</a> in online video streaming. Even if there were a &#8220;cybersecurity emergency,&#8221; I would think the last people I&#8217;d want to take charge would be the federal government.</p></blockquote>
<p>Aside from the federal government&#8217;s overall ineptitude, the most important question concerns the President&#8217;s &#8220;emergency powers.&#8221; Presidential prerogative has always been a controversial issue, and this debate is no exception. When dealing with limits of power, it is best to be clear and concise in explaining the boundaries. Yet S 773 fails to provide the information clearly. Instead, it remains incredibly vague and subject to a great deal of interpretation. This makes &#8220;emergency powers&#8221; of the President that much more alarming.</p>
<p>From <a href="http://www.cbsnews.com/stories/2009/09/01/opinion/main5279421.shtml">Bruce Henderson</a> at CBS:</p>
<blockquote><p>S773 makes no attempt to outline and describe what form of emergency would trigger the use of these broad new powers to limit communication, nor any means by which it could be reviewed by anyone outside the executive branch. The bill also proscribes that the executive branch will perform periodic mapping&#8221; of private networks deemed to be critical, and those companies &#8220;shall share&#8221; requested information with the federal government.</p>
<p>Translation: the U.S. government bureaucracy will be spending your tax dollars to figure out private networks, find choke points and places where they can control the flow of communication. Furthermore, companies (such as your ISP) are going to be required, by law, to supply the federal bureaucrats with whatever network, account, usage and history information they deem appropriate. All in the name of cyber safety, you see.</p></blockquote>
<p>There are plenty of other controversial parts of this bill which should be discussed, particularly the government certification of &#8220;<a href="http://www.cbsnews.com/stories/2009/09/01/opinion/main5279421.shtml">security professionals</a>,&#8221; which greatly restricts the private sector and adds a whole new level of bureaucracy to the equation.</p>
<p>It&#8217;s strange to see the federal government attempt to reign in an already successful private sector in an arena where the government has repeatedly failed in the past. The internet is a &#8220;place&#8221; where few real regulations exist (compared to the &#8220;real world&#8221;) and has proven time and time again, to be able to effectively regulate itself through principles of liberalism (the classical kind).</p>
<p>Bottom Line: First, it is unwise for the feds to attempt to over-regulate the private sector in this way, mainly because it will only prove to be costly and ineffective. Second, this bill gives too much power to the President; power which isn&#8217;t clearly defined and would be easily abused.</p>
<p>- Marc</p>
<p><a href="http://www.opencongress.org/bill/111-s773/show">READ ENTIRE BILL HERE</a></p>
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