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View Full Version : Bush's forest policy: stupidity and malice


Wayne Grabert
22nd February 2003, 07:08 PM
Why should his forest policy be any different than any of his other policies?

The bad economics of Bush's forest and logging policy. (http://slate.msn.com/id/2074803/) But the real problem with the logging changes is not that they are pro-timber industry, it's that they are economic nonsense. It's curious that an administration that is so business-friendly would take measures that actually would hurt business, let alone dozens of small towns across the West. But that's exactly what would happen.

For starters, the last thing the United States needs right now is more lumber. Despite the continued housing boom, lumber itself is as cheap as it has ever been. Two years ago, for instance, the lumber required to build a new home might have cost about $12,000. Today that same lumber package would run about $7,500.

(snip)

For many parts of the West, it was only when logging was curtailed in the late '80s and early '90s that things picked up. That's because standing trees—which attract tourists, well-heeled fly-fishers, and retirees looking for a home in the country—are worth more than cut trees. Thomas Power, an economist with the University of Montana, says that by the late '90s, eight of 10 national forests in Montana generated three times as much income from tourism and recreation as they did from cutting down trees.

Typical of the West's new economic order are companies such as North Fork Anglers, founded by fishing guide Tim Wade in Cody, Wyo., in 1984. Today the shop employs 15 retail employees and guides and hosts as many as 400 fishers a year who pay $150 a day for the privilege of wetting a line, fill Cody's hotel rooms and restaurants, and add to the coffers of United and Delta airlines. Moreover, Wade's company is theoretically permanent. It is not destroying the rivers. Loggers, by contrast, are paid to decimate the very thing that keeps them employed.

But perhaps the Bush administration's rule changes really are not about economics. In conservative circles logging is a bellwether issue, a club with which to beat Bill Clinton, the Sierra Club, and the heavy hand of government in general. Logging is a kind of religious issue: Conservatives take it on faith that cutting down trees is good for business. But the economics of the West during the past 20 years argues that it isn't.

corplinx
23rd February 2003, 09:19 PM
Socks first, then shoes.

Dymanic
24th February 2003, 01:07 PM
I wonder if you snipped enough of the article to conform to the "no posting entire articles" rule?

But anyway.

Loggers, by contrast, are paid to decimate the very thing that keeps them employed.

Conservatives take it on faith that cutting down trees is good for business.

A lot depends on what you mean by good business. In order to make a profit in the timber industry, it is necessary at some point to cut down some trees, but it is possible to harvest timber without decimating the forest.

If good business means short-term profits, then maximum production is the way to go. If you are concerned with the long term, however, aggressive logging is clearly economic nonsense.

Before the Maxxam takeover in 1986, Northern California's Pacific Lumber Company operated under a long-standing policy of sustained yield, which basically means not cutting wood faster than it is replaced by new growth. While other companies all up and down the coast racked up short-term profits by cutting themselves right out of trees, Pacific, with an eye toward the long haul, chose retention of some uncut timber to be an investment in its company's future, and, as the dwindling supply drove the price up, the wisdom of this became apparent--Pacific was in possession of the world's largest stands of virgin redwood.

Ironically, this (as well as policies of being responsible to their employees and the community) is precisely what made them vulnerable to takeover. Hurwitz basically used that uncut timber as collateral to borrow money with which to take the company over.

There were a lot of losers in this game, and only a few winners (big winners, though).