Creation Museum’s Faith-Based Investment in “Ark Encounter” Appears to be Sinking

The saga of uber-creationist Ken Ham’s Creation Museum continues, and it isn’t looking good for him or his followers.  If you recall, Ham and his creationist organization Answers In Genesis (AiG) have, in recent years, gone all-in on an investment scheme to fund what they call a life sized replica of Noah’s Ark named Ark Encounter.  For years, I and others have reported on the continuing financial troubles and ethically questionable revenue sources for Ken Ham’s enterprise, and now things seem to only be getting worse for Ham, AiG, and the Creation Museum.

Ken Ham looking over his model of Ark Encounter… the irony is that, according to myth, Noah didn’t need lots of investment capital, the backing of the government, and huge construction teams to build his Ark. (image source)

Back in February, there was a big debate between Ham and Billy Nye the Science Guy at the Creation Museum; after the debate, Ham reported that this debate had brought in a huge amount of much-needed financial support for Ark Encounter and that construction would begin on the much publicized project in May of this year (after repeated delays due to insufficient funds).  At the time, I and others were skeptical, speculating that perhaps Ham wasn’t being completely truthful because while he said money was coming in, he didn’t provide any specifics.  This led me to believe that Ham was continuing his habit of not only bending (or breaking) the truth on issues of science but those of economics and finance as well.

Well, now it appears that the other shoe has dropped… as reported in June by Americans United for the Separation of Church and State, it seems that Ham is resorting to all sorts of shenanigans and obfuscation to give the impression that his enterprise isn’t sinking:

1) First, there’s the issue of the time-table on Ark Encounter continually being pushed back, at taxpayer expense…

The main problem with Ham’s overtly religious pet project is it seems to be a magnet for taxpayer dollars. First, Kentucky officials committed more than $40 million in tax incentives to the Ark Park. Sadly that was just the beginning. Later, the Kentucky legislature planned to spend $2 million on a road project in a rural area, seemingly for the sole benefit of the proposed Ark Park.

But even those generous incentives weren’t enough for misguided lawmakers. The city of Williamstown, which had already granted a 75 percent property tax break for the park, decided last year that it would sell $62 million in municipal bonds on behalf of AiG affiliates.

All told, various government entities in Kentucky have planned to give the Ark Park, which was originally supposed to cost about $175 million, an astounding $100 million (or more) in various types of public support. Recent reports, however, cast serious doubt on just how much of that money, if any, will reach the project.

It seems Ham’s ever-changing timeline has finally caught up with him. He said in January 2011 that work would begin on the Ark Park that spring; then in May of that year, AiG said groundbreaking would be over the summer; in June, AiG said construction would begin in August; and by early August 2011, AiG still had not broken ground but promised that it would happen “in the next few months.”

Then in late August 2011, AiG bumped the timetable way back, saying groundbreaking would begin in the spring of 2012. That did not happen, either.

2) Then there’s the problem of the expiration date attached to the public funding (the one smart thing the KY lawmakers did in this whole fiasco)…

Louisville’s LEO Weekly reported last week that the large tax incentive package promised to the Ark Park back in May 2011 by Kentucky’s Tourism Cabinet came with one little catch: an expiration date. The agreement says that AiG can receive a 25 percent tax rebate on the cost of construction once the park opens, provided construction began by May 2014. The discount would be capped at $43 million.

Gil Lawson, a spokesman for the Tourism Cabinet, told LEO Weekly that Ark Encounter quietly withdrew its old application for a $172 million project on March 28 and instead submitted a $73 million proposal. If that application is approved, and if it is built within the allotted timeframe, that would mean AiG is eligible for $18.25 million in tax incentives, LEO Weekly said.

But the shrinking tax package doesn’t appear to be Ham’s only problem. In April, the Cincinnati Enquirerreported that the local road improvements needed to handle all the traffic that will supposedly rush to Ark Encounter (if it ever opens) will be pushed back to 2017. That’s a bit of a problem for Ham, who last claimed that the park would open in the summer of 2016. Perhaps he wants park visitors to have an authentic Bible experience by walking or riding camels to see the ark.

There is also some mystery surrounding the $62 million in municipal bonds that supposedly rescued Ham’s project. The Louisville Courier-Journal reported in January that while $26.5 million in bonds had been sold, the city needed to sell an additional $29 million by Feb. 6 or else those who already bought bonds would be able to collect on their investment immediately.

The city would not say exactly how much money was raised, the Courier-Journal reported in late February, but AiG’s website claims the bonds actually yielded $73 million. AiG also claims it has raised $15 million on its own.

Hmm… when “there is some mystery” about how public funds are allocated and being used, especially on a legally and ethically questionable project such as this, then that’s kind of a problem.  KY lawmakers and politicians would be wise to distance themselves from this slow-motion train wreck.  But there’s more!

3) Ham has claimed that ground breaking and construction did indeed begin this past May, except that it didn’t actually happen…

Despite these setbacks, Ham presses on. His latest ploy appears to be keeping up the hoax that the Ark Park is under construction. In February, he said groundbreaking would begin in May. On May 1, AiG hosted a “groundbreaking ceremony” at the site where the park is supposed to be built, but the “groundbreaking” consisted of a handful of men in suits using wooden mallets to hammer wooden pegs into wooden boards. This all took place inside an auditorium, which doesn’t look much like a theme park. (You can watch this exciting video here, but be warned – it’s over 40 minutes long.)

It is now June, and it remains unclear whether or not construction has actually started on Ark Encounter. AiG’s website says its “construction management team” is still soliciting bids from contractors, suggesting that no real progress will be made anytime soon.

Whoops!  I thought that “construction” meant that earth-moving machines were actually, I don’t know, moving earth and digging holes and that carpenters were actually nailing pieces of wood together and so on.  Apparently, in Ken Ham’s universe, “construction” means… something else.

Well, one thing is for sure: this story won’t end here.  I think Ken Ham is going to try to string both investors and politicians alike along for as long as possible on his sinking Ark Encounter, despite the fact that it should be obvious by now to any reasonable observer that his grasp of finances is about as trustworthy as his grasp of science.

Too bad for the folks who invested in this debacle that they didn’t use a little evidence-based thinking. That’s what you get for faith-based investing, I suppose.

Four Big Tax Myths

Here in the United States we just finished tax season (the deadline for filing passed on the 15th of April). I don’t usually talk about economic issues here, because I’m a science guy not a money guy, but my skeptical colleague and friend Jamie Berstein from Skepchick knows money, economics, and taxes way better than me, and she recently wrote a killer blog post on tax myths. Read on 🙂

4 Myths about Taxes

If you’re living and working in the U.S. then you know today is that most infamous of “holidays,” Tax Day. You are either rushing to finish your taxes and get it to the post office before they close or are smugly sitting back and relaxing because you finished your taxes ahead of time to avoid the last-minute rush.

As one of the latter who already received and spent most of my refund weeks ago on new clothes and buying the geeky t-shirt quilt Mary made to raise money for SkepchickCON (which my cat has since claimed for himself — See featured photo), I thought today would be a perfect day to bust some myths about taxes. These are meant to apply only to tax system of the U.S. though there may be parallels to systems used in other countries.

Myth #1: Progressive income tax systems encourage people to work less or avoid promotions because if you make enough more money to cross into a higher tax bracket, you’ll actually be taking home less money after paying taxes.

…

Myth #2: Flat taxes are fairer because everyone pays the same amount.

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Myth #3: No-income tax states have low taxes and still manage to get by just fine. They are proof that we can still have a thriving economy while keeping taxes low.

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Myth #4: Tax Deductions are a way for the government to save people money without spending any money.

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For full details and explanations, read Jamie’s full post at Skepchick.

Continued Financial Trouble for KY Creation Museum?

Ken Ham’s Creation Museum is back in the news, and – surprise – it has to do with a questionable funding proposal to finance his floundering theme park, where people can pay to be told that the Flintstones is the real thing.

Yup, they actually teach that humans and dinosaurs coexisted… just like in the Flintstones cartoon.  Looks like a good investment to me – Yabba-dabba-doo! (Image source)

I’ve posted before (here and here) about the troubles the Creation Museum has had in securing funding for its Ark Encounter attraction (not to mention its dwindling profits – or should that be “prophets”?), and the following article indicates that Ken Ham is pursuing a constitutionally questionable strategy which could land him and the municipality in question into some dicey legal waters…

Kentucky City May Offer $62 Million in Securities to Help Noah’s Ark Replica Park

A city in Kentucky is working with Crosswater Canyon, an owned subsidiary of Answers in Genesis, Inc., to offer $62 million in securities for prospective investors to help aid the completion of a Creationist theme park and replica of Noah’s Ark.  While the city of Williamstown is issuing the bond, Crosswalk Canyon is solely responsible for the bonds, not the city.

Beginning next month, Williamstown may oversee the amount of taxable securities for investors to the project overseen by Answers in Genesis, reported Brian Chappatta and Priya Anand of Business Week.

“Proceeds will help build a 510-foot (155.4-meter) wooden ship, the centerpiece of a planned biblical theme park called ‘Ark Encounter.’ Bond documents project the venue will attract at least 1.2 million people in its first year,” wrote Chappatta and Anand. …

But if things are going so well for Ken Ham and his cartoon attraction, then why the need for these so-called “securities” to fund the project?  Let’s read on…

… Unlike the Creation Museum, the Ark Encounter project has had its share of financial issues regarding funding and donations.

The official ground-breaking for the project has been delayed multiple times since 2011, with private donations not matching the necessary monetary benchmarks.

Mike Zovath, head of the Ark Encounter project, told The Christian Post about the current status of the park’s construction, namely that it is “under design.” …

Wow, that’s got to make potential investors nervous.  So what’s the big deal about going through these “securities” issued by the town of Williamstown, KY?…

… Answers in Genesis’ efforts in Kentucky have garnered their share of criticism, including from the Washington, D.C.-based group Americans United for Separation of Church and State.

In the past Americans United has criticized the alleged First Amendment issues with regards to the state support for projects that benefit the Creation Museum and the Ark Encounter.

Alex Luchenitser, associate legal director at Americans United, told The Christian Post that the bond offering is one of many examples of government aid proposed for the Ark Encounter project.

“The imminent bond offering is only one of several different kinds of aid being given to the Ark Park by the State of Kentucky, Grant County, and the City of Williamstown,” said Luchenitser.

“The array of government aid to the Ark Park raises very serious issues under the religion clauses of the U.S. Constitution and the even stricter church-state prohibitions of the Kentucky Constitution.” …

Well, there’s that!  And then there are other questions regarding the legality/wisdom of these securities from the standpoint of the Securities and Exchange Commission (SEC).  But don’t take it from me; take it from from people who actually know business and investment, like the folks at Bloomberg Businessweek.  Here’s an excerpt from an excellent blog post on this particular point:

Bloomberg Reports on Ken Ham’s Ark Bonds

This is about an article at the website of Bloomberg Businessweek. Business Week was formerly an independent magazine, now it’s part of the Bloomberg international news agency, headquartered in New York. Their article is Noah’s Ark Depends on Faith in Default-Plagued Debt: Muni Credit.

From our recent post, Ken Ham’s “Ark Encounter” Bonds, you already know about the bonds being issued to finance the proposed Ark Encounter project, which is owned by a company controlled by Answers in Genesis (AIG). AIG is the on-line ministry of Ken Ham (ol’ Hambo), the ayatollah of Appalachia. It also owns and operates the infamous, mind-boggling Creation Museum.

It appears that Bloomberg has seen all the documents, and they routinely report on the bond market. Their analysis is far more sophisticated than ours. They say, with bold font added by us:

“Given the default history of unrated municipal debt, investors may have to pray for the success of bonds being sold to build a full-scale replica of Noah’s Ark.

The northern Kentucky city of Williamstown plans to offer $62 million of securities next month for affiliates of Answers in Genesis, a Christian nonprofit that operates the Creation Museum upstate. Proceeds will help build a 510-foot (155.4-meter) wooden ship, the centerpiece of a planned biblical theme park called “Ark Encounter.” Bond documents project the venue will attract at least 1.2 million people in its first year.” …

Ouch… but what the heck does Bloomberg Businessweek know?  Sure they may have oodles of financial and investment expertise, but if creationists have shown us anything it’s that they don’t need no stinkin’ experts who spout off about pesky things like evidence and facts!

So head on over and buy some of Ken Ham’s bonds.  You just have to have faith that you won’t be flushing your money down the toilet 🙂

More Evidence of Bad Financial News for Ken Ham’s Creation Museum

Not too long ago, I wrote a blog post about how it appears that creationist Ken Ham’s Creation Museum is starting to run into some financial trouble.  This earned a public response from Ken Ham on his Facebook page, wherein he assured readers that all is well.  I’ve also had some response to that post on the comment section, where a reader shared with me Ken Ham’s latest response on this issue:

Crowds Continue to Flock to the Creation Museum

Image Source

On Memorial Day weekend this year, the Creation Museum celebrated its sixth year of operation.

Entering our seventh year, crowds have been continuing to flock to the Creation Museum. This past Friday and Saturday, we saw over 3,500 people visit the Creation Museum! Thus far, attendance is ahead of projections for this year and ahead of last year.

I’ve included a few photographs of some of the people who visited this past Friday. At a few times on Friday, lines were out the door—but our very capable staff was able to get visitors into the museum quickly. The new zip lines have also proved to be extremely popular—and in the near future, two super zip lines around 1700 feet long, plus an obstacle course and a special children’s course, will also open.

I’ve also heard so many people rave about the new world-class insect exhibit and theDragon Legends exhibit—both opened on Memorial Day. …

Ham goes on to list a lot of things which he claims are new displays and “research” to his museum, presumably to bolster his argument that things at the Creation Museum are going just fine.  However, a more thorough analysis of the Creation Museum’s publicly available finance reports for the last few years – which you can find at http://pandasthumb.org/archives/2012/12/pts-year-end-re.html – seem to disagree with the overly rosy picture that Ken Ham insists upon painting. When you go from a surplus of $2.1 million to a deficit of $540,000 in three years time, it’s not good financial news.

Here’s a quick summary of what the folks over at Panda’s Thumb dug up on this question:

Reporter James McNair recently reported in a Cincinnati newspaper that the attendance at the Creation Museum has dropped for four consecutive years and that Answers in Genesis lost over $500,000. These tidbits inspired my colleague Dan Phelps and me to look at AIG’s Forms 990. These are tax forms that must be submitted by nonprofit organizations to the US Internal Revenue Service and may be found if you have a (free) account on GuideStar.

According to various Forms 990 through the tax year ending June 30, 2011, in four consecutive years, AIG has run surpluses of approximately $2.1 million, $716,000, and $940,000, and a loss of $540,000. Not exactly a monotonic decline, but certainly a steep drop from a surplus of $2.1 million to a loss of $540,000 in three years. Can we expect similar losses due to the Ark Park? Maybe: Joe Sonka in the Louisville newspaper LeoWeekly reports that “… correspondence between Ark Encounter and the Tourism Cabinet reveal an application process that proceeded with remarkable speed, little scrutiny, and standards that appear different from that of [another applicant].”

The 2010 Form 990 (for fiscal year ending June 30, 2011) has some interesting information.

1. The president of AIG, Ken Ham, earned an annual salary of approximately $150,000 and a total package of around $200,000, which I think is not out of line for the president of a company with approximately $20 million of revenue (Schedule J, Part II). Four of Ham’s children, his son-in-law, his brother, and his sister-in-law are listed as staff members, with annual salaries between approximately $1300 and nearly $80,000 (Schedule L, Part IV).

2. AIG says that Crosswater Canyon, a nonprofit, will operate AIG’s Ark Park but that a limited-liability company will own it. Crosswater Canyon is identified in Schedule R as being wholly controlled by AIG; we assume that means it is a subsidiary. According to Whois, crosswatercanyon.org is one of approximately 1300 domain names owned by AIG, but crosswatercanyon.org, .com, and .net yield nothing useful.

Crosswater Canyon reimbursed AIG a bit over $1 million for expenses. The Ark Park was formally announced in December, 2010. The payment was made some time between then and June 30, 2011. AIG was thus reimbursed $1 million for expenses within six or seven months of the announcement.

3. Schedule R, Part III, lists Takenbac Enterprises, LLC, PO Box 384, Hebron, KY 41048 as a “related organization taxable as a partnership.” Two of the officers of Takenbac Enterprises are “key employees” of AIG and draw annual salaries of approximately $90,000 from AIG. We speculate that Takenbac is the mysterious “private Limited Liability Company (LLC) [that] will own the Ark Encounter,” according to AIG’s FAQ’s.

4. Geo-Research Pty., Ltd. [proprietary company], 27 Rising St., Shailer Park, Queensland, Australia, received $128,000 for consulting (Part VII). Geo-Research is or was the employer of Andrew Snelling, a former geologist who joined the staff of AIG in 2007. The address of Geo-Research appears to be a private home that has been for sale but is now off the market.

Yet despite all of this evidence, Ham and his followers – many of whom, ironically, challenged me to examine the publicly available financial reports – keep on saying that all is well.

Of course, none of this surprises me.  That’s because if you make it part of your worldview, as many creationists do, to deny evidence and reality, is it any wonder that the true believers among creationists are not willing to acknowledge the troublesome finances which are plain to see for any who care to look?

Creation Museum Running Out of Cash and Going Extinct?

[**Update (6-25-13): It seems this blog post has come to the attention of none other than Ken Ham himself, who runs the Creation Museum.  If you are interested, you can read his response on his Facebook page.]

In an interesting, though not very surprising, development, it seems the Creation Museum in Kentucky is running out of money.  And it seems the problem is that, like creationism itself, there is nothing new or different about the exhibits at this “museum”. The irony is that Ken Ham and other creationists claim the Creation Museum is doing scientific work which proves creationism to be true, yet since the place opened 5 years ago nothing has changed and no new “creation science” research has appeared.

No actual scientific research, but your kids can “ride a dinosaur” just like Fred Flintstone did!  No wonder these morons are going out of business. Image source

My skeptical colleague Donald Prothero over at Skepticblog.com breaks this down into more interesting and revealing detail…

… In an earlier post, I discussed the decline in attendance and loss of money from Ken Ham’s “creation museum” in Kentucky. Now eventhey must pay attention to the problem, since the declining attendance has put a crimp in their budget and brought the fundraising for their “Ark encounter” to a standstill. Their problem, as I outlined before, is that their exhibit is 5 years old now and has not changed, so most of the local yokels who might want to visit it have done so. There’s no point to making the long trip and seeing the expensive “museum” again if there’s nothing new to see. (Unlike real science museums, which must change exhibits constantly not only to boost repeat attendance, but to reflect the changes in scientific thinking). As Mark Joseph Stern wrote on Slate.com:

“There could be another explanation, though. A spectacle like the Creation Museum has a pretty limited audience. Sure, 46 percent of Americans profess to believe in creationism, but how many are enthusiastic enough to venture to Kentucky to spend nearly $30 per person to see a diorama of a little boy palling around with a vegetarian dinosaur? The museum’s target demographic might not be eager to lay down that much money: Belief in creationism correlates to less education, and less education correlates to lower income. Plus, there’s the possibility of just getting bored: After two pilgrimages to the museum, a family of four would have spent $260 to see the same human-made exhibits and Bible quote placards. Surely even the most devoted creationists would consider switching attractions for their next vacation. A visit to the Grand Canyon could potentially be much cheaper—even though it is tens of millions of years old.”

So how did they deal with the attendance dilemma? Did they open some new galleries with “latest breakthroughs in creation research”? (No, that’s not possible because they don’t do research or learn anything new). No, they opted for the cheap and silly: make it into an amusement park with zip lines. Apparently, flying through the air for a few seconds suspended from a cable is the latest fad in amusements, so the Creation “Museum” has to have one to draw the crowds—and hope they can suck in a few visitors to blow $30 a head or more to see their stale old exhibits as well. Expect that by next year they’ll be a full-fledged amusement park with roller coasters and Tilt-a-whirls, just like so many other “Biblelands” do across the Deep South. [emphasis added]

And what do ziplines have to do with creationism? As usual, they have a glib and non-responsive answer:

Zovath’s response to the museums critics who wonder how zip lining fits with their message?

“No matter what exhibit we add, the message stays the same,” Zovath said. “It’s all about God’s word and the authority of God’s word and showing that all of these things, whether it’s bugs, dinosaurs or dragons – it all fits with God’s word.”

I was hoping for something more imaginative and relevant, like “zip lines make you feel like an angel flying down from heaven.”

Wow… so the Creation Museum, once-heralded as the bane of modern evolutionary science and other wickedness, is starting down the road of turning into a Bible version of Disneyland.  I just have to chuckle at this turn of events, because it seems as if, by failing to change and – dare I say – evolve thereby adapting to its economic situation, the Creation Museum may very well go extinct.

Good riddance.

Cognitive Dissonance in Partisan Politics: The Case of Gas Prices

In a follow up to my recent posts (here and here) on the issue of rising U.S. gas prices and how the President and Congress really have little power to affect them, despite the belief by some that they do, I heard an excellent piece on NPR this morning about this very subject.  Of course, in NPR fashion, they went a bit deeper and actually started to discuss in a scientific fashion why it is that Republicans are blaming President Obama for higher gas prices now whereas a few years ago it was Democrats blaming then President Bush for higher gas prices.  Check it out…

Partisan Psychology: Why Do People Choose Political Loyalties Over Facts?

Charlie Reidel/AP — President Bush and then-Democratic presidential nominee John Kerry shake hands at the end of a presidential debate in 2004 in St. Louis. Researchers want to better understand why partisans’ views of the facts change in light of their political loyalties.

When pollsters ask Republicans and Democrats whether the president can do anything about high gas prices, the answers reflect the usual partisan divisions in the country. About two-thirds of Republicans say the president can do something about high gas prices, and about two-thirds of Democrats say he can’t.

But six years ago, with a Republican president in the White House, the numbers were reversed: Three-fourths of Democrats said President Bush could do something about high gas prices, while the majority of Republicans said gas prices were clearly outside the president’s control.

The flipped perceptions on gas prices isn’t an aberration, said Dartmouth College political scientist Brendan Nyhan. On a range of issues, partisans seem partial to their political loyalties over the facts. When those loyalties demand changing their views of the facts, he said, partisans seem willing to throw even consistency overboard. …

Click here to read the entire story

President Obama, God, and Agency Where None Exists

I was inspired to write the following JREF Swift blog post as a result of my earlier posts (here and here) on the question of gasoline prices in the United States and the powers (perceived or real) of the U.S. president.  I hope you find it enlightening…

On my blog, I recently put together a post – Gas Prices and Politics: Fact vs. Fiction – about higher gas prices and how people are blaming President Obama for it.  As I pointed out there, Republicans blaming him for the increase in the price of gasoline (and oil in general) are wrong for the same reason as when Democrats blamed former President Bush back in 2007: the President doesn’t really have that much power to influence oil and gasoline prices.

So, if it is true that no such power exists for the leaders of our government to affect the price at the pump (and that is true, as the prices are set more by market factors such as global supply and demand of oil), why is it that people want to lay blame upon our mostly blameless leaders?  I struggled with the answer to this question for some time, but I think I have finally hit upon a possible answer: many people, either consciously or not, attribute powers to the President of the United States and Congress that simply do not exist.

And that asks the next obvious question: why do people attribute such powers to our political leaders?  Why is it that many of us assign almost god-like abilities to our decidedly non-god-like and wholly fallible authority figures?

I think the answer is multi-faceted and can give some interesting insights into how we think about a lot of things, especially regarding politically oriented topics.  In addition, an analysis of this topic can lead us into a deeper discussion of a philosophical concept known as “agency”.

First, I think (somewhat cynically) that there are some, if not many, politicians in government who, either actively or inactively, encourage the notion that they have more power than they are in reality.  After all, this is one of the reasons why people vote for candidates running for political office: because they make promises and we expect them to deliver on those promises, whether or not those promises are in any way, shape, or form realistic to achieve.  This also goes for the various subsidiaries which surround the government, such as lobbying groups, political action committees, etc.  But it’s too easy to stop there.

Second, I think that in many ways we are somewhat hard-wired to make inferences to the existence of things which are not there.  In philosophy, this is sometimes referred to as “agency”, where we assign some kind of powers and abilities to an entity through our beliefs about that entity or our behavior towards it.  For example, how many of us have been in the middle of some very important work on the computer when suddenly the program crashes?  No doubt that many of us then engaged in a certain amount of cursing at (not necessarily about) the computer, as if it could not only hear but understand us.  (Aside: my wife works with computers for her career, and she will swear up and down that “they know what we’re thinking”)  The computer itself is real enough, but what about the agency which we assign to it?

But when you step back and think about it, it’s downright silly to rant and rave at the computer.  The most obvious reason for this is that it simply doesn’t work.  Yell at the computer all you want, but that won’t fix the problem; actually trying to solve the relevant hardware and/or software problem will fix things.  The other reason is that, let’s face it, at the end of the day the computer is simply a collection of circuits, wire, switches, and assorted electronics.  Does it really have a mind with which to interact?  The answer, so far with today’s common technology, is a negative, yet for some reason we engage with the computer as if it did have such a mind.  And in so doing, we assign agency to the computer. …

Click here to read the rest of the post

Politics and Gas Prices Redux: “Obama Has Doubled the Cost of Gas”?

As a brief follow up to my recent post titled Gas Prices and Politics: Fact vs. Fiction, I wanted to pass along some deeper analysis that my fellow skeptical blogger Phil over at Skeptic Money did.  It puts a bit more meat on the bones of my previous argument that (duh!) the President of the United States actually has very little power to affect the price of gasoline at the pump.  Read on…

Obama Has Doubled The Cost Of Gas

Blog idea from The Skeptical Teacher. [That’s me :)]

This is one of the new right-wing talking points. The interesting point is that it’s true.  Well, the part that the cost of gasoline going up.  However, Obama had nothing to do with it.

“Gas prices since Obama took office have risen by 103.79 percent. No other presidents in recent years have struggled as much with soaring oil prices.” – US News

Here is a graph from DShort.com.

Notice the green line.  It is the price of oil.  In 2008 while the recession was going strong the price of oil was bid up to almost $150 per barrel by crazed speculators.  When the speculators faced the fact of decreased demand due to a global recession the price of oil collapsed to around $40 per barrel.  The result is a dramatic drop in the cost of all things that come from oil – including gasoline.

Obama took office on January 20, 2009 at the very bottom of the price drop.  Many countries are doing much better now than in 2008-9 and global demand has increased.

Just the other day someone told me that the price of oil was going up because Obama was limiting the production of oil.  I thought he was full of crap so I went and searched out the facts for myself.  If you ever want data on energy production go to eia.gov.

I found this specific data that shows US Crude Oil production.  In 2008 (The year before Obama became president) the US produced 4,950,000 barrels per day.  In 2011 the US produced 5,659,000 barrels per day.  An increase of 14.3%.

They also claimed that Obama has reduced off shore drilling in the Gulf of Mexico.  In 2008 The US produced 1,152,000 barrels per day and in 2011 it was 1,318,000.  Wrong on both accounts.

Their third claim was that more off shore drilling would reduce the cost of gasoline and maybe back to what it was 3 years ago.  The US produced 5,659,000 barrels per day in 2011 and 23% (1,318,000 / 5,659,000) from the Gulf.  US oil production is about 11.6% of the worlds total oil supply.  If the Gulf is 23% of this total and you doubled this amount (this could take 10-20 years) then that would increase world production by less than 3%.  I’m sure that this hypathetical and dramatic increase would lower the cost of gas.  However, I would guess by $0.10 to $0.15 per gallon. [emphasis added]

Gas Prices and Politics: Fact vs. Fiction

I don’t usually post on economic issues, but I wanted to say a few things regarding the recent brouhaha regarding higher-than-usual gasoline prices in the United States.  The issue has become heavy political fodder due to this being a presidential election year, and there have been a number of dubious claims made on the matter.  So, to help sort fact from fiction on this issue, I would like to reference the following well-written article from Paul Brandus at The Week.

While there are a number of excellent points made throughout the article, I wanted to focus on the big #1 myth: the notion that the president of the United States has some kind of magical ability to control the price of gasoline…

Why you’re wrong about gas prices and politics

I recently wrote about the many myths and misunderstandings Americans have about gas prices, oil companies, and the presidency. A few folks got upset because the facts and figures I mentioned weren’t what they wanted to hear. But as John Adams said: “Facts are stubborn things.” With that in mind, here are a few more myths and misunderstandings — about gasoline, renewable energy, politicians — and the facts:

Myth #1: Presidents have major power over gas prices
Gasoline prices have more than doubled on Obama’s watch, from $1.89 on Inauguration Day in 2009 to last week’s $3.93 (AAA data). That’s an increase of 107 percent. But guess what? Gas prices skyrocketed 387 percent between 2002 and 2008, when the average price of regular went from $1.06 to $4.11, before dropping again before Obama took office.

Chart from Doug Short

When gas prices exploded from 2002 to 2008, Democrats — including then-Sen. Obama — were wrong to blame George W. Bush, just as Republicans are wrong to blame Obama for the 107 percent jump since 2009. So who can we blame? The “blame,” if that’s the word, lies largely with the ever-changing market cycles of supply and demand — not just in the U.S., but around the world.  I know, I know. It would be so much simpler if you could just blame one person for the rise in global commodity prices. But that’s not how it works. Sorry.

I find this kind of thinking, the willingness to blame those in power for whatever calamity that happens to befall you at any given time, to be fascinating.  I remember when gas prices were high back in 2007 and people were blaming then President Bush; and now some people are blaming President Obama.  It’s almost as if these folks, in their own minds, grant some kind of god-like powers to the president once they are elected; and of course our leaders do not have such powers.  I suppose it is a way of coping with the uncertainty in the world: rather than admit the reality that even our most powerful leaders are often quite powerless (and the implication that we, as individuals, have even less power than we thought) against the random nature of the universe, many people would make up a fiction that “they” (insert spooky music) are behind it all and to blame; so if we can only get “them” out of power, then things will automatically get better.  Such thinking is strikingly similar to that employed by many conspiracy theorists.

If you find yourself in this mode of thinking, I’ve got a news flash for you: reality doesn’t give a damn what you think; it doesn’t give a damn what the president thinks.  And casting blame hither and yon will do nothing to change that.  Sorry to burst your bubble.

How to Always Pick a Winning Stock

This time of year, money is on a lot of people’s minds.  And especially with the crummy economy, it is REALLY on people’s minds.  Unfortunately, this is an environment which is ripe for various kinds of money-related scams.  In that spirit, I wanted to share with you all an excellent blog post by my skeptical colleague Phil Ferguson over at the Skeptic Money blog. It’s all about those schemes to “pick winning stocks” and whatnot; I can’t do it justice, so I’ll just pass along Phil’s post…

How To Pick Winning Stock Every Time – The Skeptics’ Way

Today I will show you how great stock pickers are able to find the winners – every time.  Now when you get a tip via a call or an e-mail from a broker you will know how they do it.  Now you can do it too.  If you use this same method you can guarantee a correct prediction on a stock.  With this system you can win every time.

I found this video from Darren Brown.  He calls it the system and I will stick with that name.  He uses it on horses but, I will tell you how to do it with stocks.  It is even better with stock because they can only go up or down.  It is so easy – it will blow your mind.  The same secrets apply to stocks as it does for horses.  Watch this video to see how it works.  Don’t skip ahead… YOU NEED to see how well this works. …

And yes, there IS an angle to this whole thing, but to see the angle read all the way through to the end of Phil’s post plus watch the accompanying videos.  However, for those of you who are a bit ADD, I’ll skip to the end:

… Someone had to win with each bet.  A stock picker can do the same thing.  They will call dozens, hundreds or even thousands of people.  They will tell half of the people that a given stock will go up and the other half will be told that the same stock will go down.  Those that lose never get called again.  The winners are called again and get a new stock tip.  So with just 16 people to start with a stock picker can get 4 in a row for one lucky person.  Now that person will do just about anything.  Even borrow money from friends.  They may or may not make money.  It does not matter to the broker.  Each time you buy or sell a stock, you make will make the broker money.

Now, when someone calls you with a hot stock tip, you will know what to do – RUN!