Author: CS Admin

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Accountability folly free trade & free markets general freedom moral hazard property rights responsibility too much government

Poison Is Poisonous

poison, inflation, Venezuela, socialism, free markets, capitalism

Venezuela’s socialist economy has been collapsing. 

No big mystery. If, out of hostility to capitalism, a society keeps destroying everything that production, trade, and prosperity depend upon, the economy suffers. The benefits of markets don’t flow no matter what.

One assault has taken the form of hyperinflation — runaway printing of currency, done in part to dissolve government debt. Many Venezuelans are resorting to barter. It’s easy to understand why. 

Or is it? A Reuters reporter says that economists say that “the central bank [of Venezuela] has not printed bills fast enough to keep up with inflation, which … reached an annual rate of almost 25,000 percent in May.”

So go faster!?

Dude. Dude. The massive expansion of Venezuela’s money supply is what’s causing massive jumps in prices. Just like any other economic good, the medium of exchange is subject to the laws of supply and demand.

Other things being equal, enormously increasing a supply of a good will enormously lower its market value or price. Money, too, has a price — in terms of the non-​monetary goods being bought. If the pre-​hyperinflation price of a dollar in terms of bread is one loaf and the post-​hyperinflation price is one bread crumb, you won’t reverse the decline by printing even more dollars or bolívars even faster.

If you’re ingesting poison, you can’t fight the effects by being poisoned more and harder. The very first thing to do is stop ingesting the poison.

This is Common Sense. I’m Paul Jacob.

 

 

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Accountability crime and punishment folly free trade & free markets general freedom local leaders nannyism national politics & policies responsibility too much government

Kick the Addiction, Save Money

marijuana, tax revenue, taxes, spending, war on drugs, opioid epidemic

The political case for the War on Drugs has always been intuitive. “Drugs are bad” has trumped practical concerns. But the actual, responsible case for the political crusade has depended upon some concept of “social cost.” 

Now that marijuana is being legalized state by state, the case against the greater War on Drugs is being taken seriously — enough to rethink all varieties of costs. Indeed, many now see the opioid epidemic as being driven, in part, by the War on Drugs, and not just as an excuse for a stronger crackdown.

Nevertheless, coming to some accounting — especially “social cost” accounting — remains difficult. This is especially true so long as its effects on freedom and the rule of law do not get figured in.

Somewhat surprisingly, even the budgetary effects of legalization have proven a bit tricky.

So it is welcome to read Harvard economist Jeffrey Miron’s study of marijuana legalization as it has occurred in the states of Washington, Oregon, and Colorado. He compares results of legalization with the predictions he had made eight years ago, in a previous Cato Institute study. It turns out that while tax revenues are far greater than expected, law enforcement costs have not gone down. 

“Early experience suggests that governments will reallocate rather than reduce those expenditures,” Miron writes. “That reallocation may be beneficial, but it does not have a direct effect on the budget deficit.”

On a federal level, though, we might expect greater savings. How? We could shut down whole bureaus.

Yet, achieving such savings would require progress on Washington’s biggest addiction: spending.

This is Common Sense. I’m Paul Jacob.

 

Studies cited:

Jeffrey Miron, “The Budgetary Effects of Ending Drug Prohibition,” Cato Tax & Budget Bulletin, Number 83, July 23, 2018.

Jeffrey A. Miron and Katherine Waldock, “The Budgetary Impact of Ending Drug Prohibition,” Cato Institute white paper, September 27, 2010.

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Accountability crime and punishment folly free trade & free markets general freedom moral hazard nannyism responsibility too much government

Taking a (Lemonade) Stand

lemonade, freedom, regulation, FDA, free market, law, authoritarian, media

When life hands you lemons.…

Once upon a time, putting up a summertime lemonade stand was the American way for kids to learn about hard work, good will, and entrepreneurship. Almost every kid had one, making some spendable profit selling the nectar.* 

Some of the youngsters grew up to become Bill Gates and Steve Jobs and, well, lemonade’s one heck of a gateway drink.

But then, along came “progress” — that is, mandates and regulations slapped upon businesses. And the hordes of regulators required to enforce the morass of rules — “swarms of Officers.” 

Soon lemonade stands were vanquished from our neighborhoods. 

And America was made safe (at long last!) for … inane bureaucracy. 

“Reports of kids’ lemonade stands being shut down for breaking local health or permitting laws have long left grown-​ups feeling sour,” today’s Wall Street Journal informs. But the story also details how “a growing movement of adults is fighting back.”

So, when government policies hand you lemons, what do you do? 

Make a map of all the lemonade stand clampdowns. 

“I think the Constitution covers [lemonade stands] as written,” Dave Roland told the Journal, explaining the map he and his wife Jenifer have produced. “But if there’s any doubt about that, let’s get it fixed.” The Rolands run the Freedom Center in Missouri, but theirs is a regrettably national map.

Last month, the popular lemonade maker Country Time started “Legal-​Ade,”  pledging to come to the defense of any kid “busted” for trafficking in lemonade. 

Seriously.

“When life gives you arcane laws,” the company’s video says, “make lemonade.”

Taste the Common Sense. I’m Paul Jacob.

 

* The profit was made possible largely by pushing their costs off onto their parents. But isn’t that sorta what parents are for? And good lessons were still learned.

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meme

The Socialist Pledge

socialism, yours is mine, sharing, theft, stealing

What’s yours is mine, and what’s mine…

is mine.

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Accountability crime and punishment free trade & free markets general freedom media and media people moral hazard responsibility

Blame the App?

WhatsApp, India, murder, responsibility, cause, effect, law, ban, blame

Who spreads “fake news”?

Gossips, politicians, publicity agents, Twitter eggs, partisan bloggers, lying news journalists?

Or … the medium of communication they use? 

Do envelopes, stationery, telephones, email, and messaging apps have moral agency?

And who commits the crimes that news (true or false) is used to rationalize?

A New York Times story discusses “How WhatsApp Leads Mobs to Murder in India,” which is like saying that civilization, flying lessons and boarding passes “led” terrorists to 9/​11.

The Times reports that fake news about children being kidnapped — dramatized by doctored video clips and forwarded via WhatsApp, a messaging app — provoked anger and fear in many Indians. Some were then willing to attack anyone who “seemed” about to kidnap children. 

In recent months, dozens of people have been murdered for being in the wrong place at the wrong time.

Without social media and the mega-​popular WhatsApp, the murders probably would not have happened, at least not the way they happened. That seems certain. But this doesn’t mean that without WhatsApp, nobody in India would spread false stories or assault innocent people. 

Mob violence in the country antedates the Internet.

Perhaps a thousand material circumstances directly or indirectly enable any particular act of wrongdoing. But no such prerequisites “lead to” anything without individual choices.

If someone pretends it’s okay to kill innocent persons — or persons whose guilt or innocence he doesn’t care to know — he, the killer, is the guilty party. The telecommunications network or messenger app used to provide grist for excuse-​making is innocent.

Apps don’t murder people. People murder people.

This is Common Sense. I’m Paul Jacob.

 

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Common Sense Popular

The Cattle Are Restless

American, nobility, titles, presidents, politicians, citizens

“There is one law for man,” goes an ancient saying, “another for cattle.”

Moo.

Glenn Reynolds, writing in USA Today, sees this principle in operation now, where the ruling class gets away with a whole heckuva lot while the rest of us do not: “Freedom from consequences: It’s the defining consequence of our modern titles of nobility.”

Reynolds cites Charles W. Cooke for the “titles of nobility” angle. Cooke, who hails from Britain but was recently inducted into American citizenship, has objected to the “grotesque’ American tradition of continuing to use a person’s former title in government service long after the officeholder has left the post. 

“Throughout the 2012 election, Mitt Romney was referred to as ‘Governor Romney,’ though he had not been in public office for six years,” Cooke wrote. “One can only ask, ‘Why?’ America being a nation of laws and not men, political power is not held in perpetuity, and there is supposed to be no permanent political class.”

“Americans do not have rulers, they have employees,” Cooke asserted. 

If you are like me, you have probably made this point umpteen times in the last few decades.

Reynolds goes on to make the obvious corollary: our public servants do not behave like our “employees.” They behave like our rulers.

Their class privilege is now deep into our law — even if some doctrines, like absolute immunity, were just invented by judges to protect prosecutors and … judges.

Maybe the first step to upend this would be to balk at ceremony. Our exes Jimmy Carter, the two George Bushes, Bill Clinton and Barack Obama should not be addressed as “President X.”

“Mister” will do.

This is Common Sense. I’m Paul Jacob.

 

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Original photo by Beverly