Selling Farmland

Lars Erik Schönander and Geoffrey Cain express their worries about Chinese state-owned enterprises purchasing farmland in the United States in this Wall Street Journal op-ed:

Alarms went off in Washington when the Fufeng Group, a Chinese agricultural company, bought 300 acres of land and set up a milling plant last spring in Grand Forks, N.D. The plant is a 20-minute drive from an Air Force base that, according to North Dakota Sen. John Hoeven, hosts a space mission that “will form the backbone of U.S. military communications across the globe.”

The deal shouldn’t have taken the federal government by surprise. U.S. Department of Agriculture data show that Chinese ownership of U.S. farmland leapt more than 20-fold in a decade, from $81 million in 2010 to $1.8 billion in 2020. Beijing hasn’t outlined a strategy, but large-scale state backing for these investments indicates there is one. In 2013 the government-owned Bank of China loaned $4 billion to Hong Kong-headquartered WH Group, the world’s largest pork producer, to buy Virginia’s Smithfield Foods. WH now controls much of the U.S. pork supply and revenue because of the deal.

concluding:

Congress should authorize the USDA to cut through byzantine ownership structures and find the true foreign owners of farmland. The recently introduced Farmland Security Act of 2022 would require the department to release all data on foreign investments in American agriculture. The agriculture secretary should be added to the Committee on Foreign Investment in the U.S., which reviews flows of foreign money into sensitive businesses such as surveillance-camera equipment and semiconductors.

Afida is also overdue for a basic government audit that might reveal new data and improve disclosure practices. The last audit was in 1989. Major Chinese companies such as the Fufeng Group, which happen to buy up large plots of land near sensitive American military installations, should have to make their case or be shown the door.

I don’t think that foreign governments or state-owned enterprises should be able to purchase American land at all and foreign nationals and foreign-owned companies should only be able to purchase land to the extent that Americans or American companies can buy land in their countries. I’m referring to fee simple ownership. If only fee tail ownership is open to Americans in those countries, nationals of those countries should only be eligible for fee tail ownership in the United States. I don’t care whether the country is the Netherlands or China. The Agriculture Foreign Investment Disclosure Act allows a lot more than that.

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The Chickens

In 2017 the Taiwanese company Foxconn entered into negotiations with the State of Wisconsin on a plant to be built outside Racine which, in its ultimate form, would include a $10 billion investment by Foxconn, substantial tax breaks given to Foxconn with waiving of environmental regulations by the state, and 13,000 jobs. There was a groundbreaking ceremony in 2018. In 2021 the project was “scaled back” to less than $1 billion in investments by Foxconn with fewer than 1,500 jobs to be created. To the best of my knowledge no construction has been done on the site which was eminent domained for the purpose. The state and county lost a substantial amount of revenue; people were forced out of their homes.

In his Washington Post column Henry Olsen crows:

Companies such as Panasonic and Intel seem to be tripping over themselves to announce that they will build new plants in the United States to manufacture car batteries and semiconductors. The recently passed Chips and Science Act and other government subsidies are a big reason for these decisions. That’s good news for national security and for American workers.

Semiconductors are the bread and butter of high technology. Made from incredibly thin silicon wafers, semiconductor chips carry electric charges to help power our phones, computers and cars. Without a steady supply of semiconductors, any advanced economy would come to a standstill.

Anything that valuable is crucial to a nation’s security. If a hostile nation obtained control over a large portion of chip factories, it could economically blackmail its foes, much as the Arab oil embargo in the mid-1970s wrought havoc on the global economy.

As with other crucial manufacturing capabilities, the United States has steadily outsourced semiconductor fabrication to plants in Asia over the past 30 years. Even though the semiconductor was invented in the United States, only about 11 percent of global production takes place here. Fully two-thirds occurs in South Korea, Taiwan and Japan — which are all threatened by China’s rise. Given that Communist China is trying to create its own semiconductor industry to dominate global production, it’s not hard to imagine a future in which Chinese power threatens our advanced economy.

That’s why the passage of the Chips bill was vital to our national security. It allocated $52 billion in government money to help semiconductor firms build plants in the United States, offsetting much of the cost disadvantage that had driven production away. Ten new chip foundries are already planned for the United States within the next three years, and many more will surely be announced in the coming months.

In general I make a practice of not getting too excited based on announcements or press releases, reserving my interest until I see what actually emerges. Maybe that’s because I hail from the “Show Me” state.

Shorter: don’t count your chickens before they’re hatched.

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Are the Poor Selling Their Blood?

The message of this New York Times op-ed by Vanessa Veselka is summed up in its slug:

The world’s blood banks are filled with “donations” from America’s poor.

Is that really true? Consider this study:

Being a college graduate, being employed, being physically active, and never being a cigarette smoker were factors positively associated with blood donation.

which suggests that Ms. Veselka’s experience (high school dropout, living on the streets, selling her blood to survive) is atypical.

It is in fact true that blood and plasma are major U. S. exports but here are the major importers:

Unless Netherlands, Germany, and Italy are re-exporting the plasma the claims in the op-ed don’t seem to stand up to scrutiny.

I find the sale of human body parts which includes blood questionable. Furthermore, I find the practice of brokering human body parts even more questionable. I will, however, acknowledge that the practice has benefits, especially considering the reality that true donations may fall short of the need.

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Elizabeth Windsor, 1926-2022

The United Kingdom’s Queen Elizabeth has died. She will be succeeded by her eldest son, Charles. The people of Britain, many of them for the first time in their lives, will have the occasion to say “God save the King!” This despite the majority no longer believing in God.

I am not much of a monarchist. Indeed, that is true of quite a number of Britons these days (38% these days, more among the young).

Now the fate of the monarchy is in Charles’s hands. Will he reign under his own name or will he assume another as king? It has been over a century since the United Kingdom has had a king under other than his given name but more than 330 since it has had a king named Charles.

Will he be the last king of the United Kingdom?

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Who Is Winning the War in Ukraine?

And how do you know?

I read just about everything I come across about the war and I honestly have no idea. Everything from “Russia has already lost” to “Russia’s victory is inevitable”, “Ukraine has begun a counter-offensive” to “Ukraine’s counter-offensive has already been defeated”.

The volume of propaganda, misinformation, and disinformation is so great I honestly don’t know how anyone can be confident in the outcome.

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Ongoing Research on COVID-19

There has been an interesting development in ongoing research on COVID-19. From a piece at SciTechDaily:

A scientific breakthrough against COVID-19 has been realized by Tel Aviv University. A team of scientists from the university has demonstrated that antibodies isolated from the immune system of recovered COVID-19 patients are effective in neutralizing all known strains of the virus. This includes the Delta and the Omicron variants. This discovery may eliminate the need for repeated booster vaccinations and strengthen the immune system of populations at risk, according to the researchers.

Dr. Natalia Freund and doctoral students Michael Mor and Ruofan Lee of the Department of Clinical Microbiology and Immunology at the Sackler Faculty of Medicine led the research. The study was conducted in collaboration with Dr. Ben Croker of the University of California San Diego (UCSD). Prof. Ye Xiang of Tsinghua University in Beijing as well as Prof. Meital Gal-Tanamy and Dr. Moshe Dessau of Bar-Ilan University also took part in the study. The study was published on August 5 in the Nature journal Communications Biology.

The current study is a continuation of a preliminary study that was conducted in October 2020, at the height of the COVID-19 crisis. At that time, Dr. Freund and her colleagues sequenced all the B immune system cells from the blood of people in Israel who had recovered from the original COVID strain. They isolated nine antibodies that the patients produced. The scientists have now found that some of these antibodies are exceptionally effective in neutralizing the new coronavirus variants, Delta and Omicron.

Dr. Freund: “In the previous study, we showed that the various antibodies that are formed in response to infection with the original virus are directed against different sites of the virus. The most effective antibodies were those that bound to the virus’s ‘spike’ protein, in the same place where the spike binds to the cellular receptor ACE2. Of course, we were not the only ones to isolate these antibodies, and the global health system made extensive use of them until the arrival of the different variants of the coronavirus, which in fact rendered most of those antibodies useless.

“In the current study, we proved that two other antibodies, TAU-1109 and TAU-2310, which bind the viral spike protein in a different area from the region where most of the antibodies were concentrated until now (and were, therefore, less effective in neutralizing the original strain) are actually very effective in neutralizing the Delta and Omicron variants. According to our findings, the effectiveness of the first antibody, TAU-1109, in neutralizing the Omicron strain is 92%, and in neutralizing the Delta strain, 90%. The second antibody, TAU-2310, neutralizes the Omicron variant with an efficacy of 84%, and the Delta variant with an efficacy of 97%.”

If this discovery can be capitalized on, it might increase the likelihood of actually stamping out COVID-19, the much-touted “herd resistance”. Present vaccines are clearly not effective enough and the need for repeated vaccinations reduces the likelihood of people actually seeking them.

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Embalmers See Some Weird Stuff

Does anyone see more blood during the course of a professional career than embalmers? Embalmers or at least some of them are reporting they’re seeing some weird stuff in blood that they haven’t seen before: unusual clots. At Politifact Naseem Ferdowsi takes it seriously enough to debunk the claims that the clots have been caused by the COVID-19 vaccines:

Embalmers and funeral home workers say they are noticing an increase in unusual blood clots among the deceased. Some of them, without evidence, are attributing it to the COVID-19 vaccines.

One of the claims comes from an article titled “Embalmers finding ‘strange clots’ in jabbed people” and published by NewsWars, a website run by Alex Jones that has a history of spreading fake news and conspiracy theories.

“I actually pulled this long, fibrous-looking clot out prior to embalming … . At the front end of it, it looks like a normal blood clot, but that white fibrous-looking stuff just isn’t normal,” Alabama embalmer Richard Hirschman was quoted in the article as saying. Hirschman added that “my gut is telling me” it’s caused by the vaccine.

Hirschman shared similar claims on the “Dr. Jane Ruby Show,” and with PolitiFact when we contacted him.

What struck me about the report was that it was so consistent with some of the reported effects of COVID-19. I won’t go so far as to dismiss the possibility of their being caused by the vaccine out of hand but IMO these clots are more likely to be the consequence of the virus than they are of the vaccine. We’ll need more than sporadic anecdotal evidence.

One thing that does concern me is that it has been my experience that being able to see something you’re not looking for is a gift.

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Is More Immigration the Solution to Our Labor Force Issues?

The editors of the Washington Post seem convinced that the solution to our labor force issues is more immigration:

Two things are simultaneously true. First, the Biden administration has mishandled immigration messaging by telling migrants not to come even as it pressed for more humane — meaning relaxed — border policies. Second, without a more forward-looking immigration policy, one more closely aligned with labor-force demands in an economy starved for workers, the nation’s long-term economic growth prospects will be stunted.

I am not opposed to increased immigration if it means bringing in the workers we actually need but I think the editors are drawing the wrong conclusions from the data. Consider this graph:

I also went to the trouble of determining the wages of all classes of workers in constant dollars. Short version: wages of individuals with college degrees or better are keeping up with inflation; wages for all other workers are not.

Demand is not determined by “Want Ads” but by willingness to pay. I will purchase every $20 gold piece you care to sell for its face value—$20. That cannot be interpreted as high demand.

If there were a high demand for workers without college degrees, their wages would be rising in real terms. They aren’t. Furthermore, there is a roughly 35% premium paid to legal immigrants without college degrees or better, cf. here. Solving that by legalizing all workers rests on a dLAWassumption: that the five bucks per hour saved by hiring illegal immigrants doesn’t result in more of them being hired. I think it does. Also note the small increase in the slope of the wages for workers without college educations in 2019. You can’t make a trend from a single point but that at least provides some indication that limiting illegal immigration resulted in the wages of the workers with whom they were in competition to rise a little.

My conclusion is quite different from that of the editors. My proposal would be to grow less produce requiring hand labor, have fewer fast food restaurants that demand people working at minimum wage or less, do less construction that depends on workers earning minimum wage or less, let Americans mow their lawns, and so on.

Thinking otherwise is objectively wanting a national economy that depends on a continuing flow of new workers who don’t earn a living wage and orients itself around such an untenable situation.

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How Could We Have Done Better?

I strongly suspect that just about everybody thinks that the U. S. could have handled the COVID-19 pandemic better. In his most recent Wall Street Journal column William Galston identifies two particular areas he cites as evidence of that, life expectancy:

A report recently released by the National Center for Health Statistics revealed that during the peak pandemic years of 2020 and 2021, life expectancy in the U.S.—the most basic measure of national well-being—declined by a stunning 2.7 years, from 78.8 to 76.1 years, the lowest level since 1996. Put simply, the pandemic erased the effects of a quarter-century of progress in medical innovation and healthier lifestyles.

These losses weren’t distributed evenly across the population. Life expectancy declined by 3.1 years for men but 2.3 years for women. Asian Americans showed the smallest loss (2.1 years), compared with whites (2.4), blacks (4.0), Hispanics (4.2), and Native Americans/Alaska Natives (6.6). For every group, the decline among men was substantially higher than that among women, and the overall difference between men and women widened from 4.8 years to just under 6 years, a gap last seen in the mid-1990s.

Compared with its peers, the U.S. fared poorly during the past two years. In 2020 the U.S. loss of life expectancy was more than three times the average of other advanced nations.

and education:

Public education presents a similar picture. The just-released report from the National Assessment of Educational Progress showed a historic drop in achievement among fourth-graders. Between 2020 and 2022, overall reading and math scores fell by 5 and 7 points, respectively, to lows not seen in decades. As with life expectancy, groups that lagged behind the national average tended to do the worst. In math achievement, for example, black students lost 13 points and Hispanic students 8 points, compared with 6 points for Asian students and 5 for white students. The differences were even more stark between high- and low-achieving individuals. At the top, NAEP scores in reading and math fell by an average of 2 to 3 points; at the bottom, by 10 to 12 points.

Differences in resources during periods of remote learning accompanied achievement gaps. Students in the top quarter of achievement reported much higher levels of access to computers, high-speed internet, quiet places to work and regular help from teachers than did students in the bottom quarter. Reinforcing these differences, 67% of high-achievers expressed confidence that they could tell when they weren’t understanding a lesson, compared with only 32% of low-achievers. It’s hard to ask for help if you don’t know when you need it.

Here, as with life expectancy, there is evidence emerging that we could have done better. Although overall student-achievement results for our European peers aren’t yet available, a recent academic paper studied Swedish primary school students and found no achievement losses during the pandemic.

Although I agree that we might have done better, I find each of those problematic in different ways and for many reasons. With respect to life expectancy, it was already declining in the U. S. before the pandemic. According to the CDC life expectancy in the U. S. peaked in 2014. I’m not sure how you’d go about disaggregating the declining life expectancy due to whatever led to the peak in 2014 from the declining life expectancy due to COVID-19 from the declining life expectancy due to the policy response to COVID-19.

The situation is slightly different with respect to education. I don’t think comparing the U. S. with Sweden is reasonable for any number of reasons. By comparison Sweden is tiny and highly socially cohesive but, more importantly, Sweden’s policy WRT COVID-19 was quite different from ours and just as importantly quite different from that of Finland, Norway, Denmark, or, for that matter, France.

Like most people I think there are quite a few things we should have done differently. For example, I think that President Trump should have shut down international air travel entering or leaving the United States for at least a couple of months starting in February. I think he should have limited traffic on the interstates early on as well. I think we should have emphasized preventing contagion to those most at risk and that closing schools to in person education was a mistake. Those are local issues not national ones. I also wish that COVID-19 and getting vaccinated against it had not been politicized as it was but I’m honestly not sure how that might have been accomplished.

At that point I’ll throw the matter open to the floor. What could we have done better in dealing with COVID-19?

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What a Nuclear Detonation Would Do

If you’ve been thinking (as who of us hasn’t?) about what a nuclear detonation would do in your hometown, this post at BigThink explains how to figure it out in simple, graphical terms.

After tinkering with it a bit it was clear to me that nuclear weapons with a yield below 3 MT wouldn’t actually touch me where I’m sitting as I post this.

Of course nobody knows what the yields of the weapon in the present Russian arsenal are.

Have a nice day.

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