Author: Redactor

Categories
free trade & free markets initiative, referendum, and recall too much government

Pay the Boatman

Attack the outsider — the first resort of the unarmed arguer.

My Townhall column praising Washington State anti-​tax activist Tim Eyman raised the ire of Seattle Times columnist Danny Westneat. He insinuates that it’s easy for me to like Eyman, for I never need to “catch the late boat after a Mariners game,” since I live in Virginia and Eyman’s initiatives affect the Evergreen State’s ferries.

Westneat complains that a voter-​approved Eyman measure reducing car taxes took away the main source of subsidy (he doesn’t use that word) for Puget Sound’s ferry system. Turning common-​sense responsibility on its head, he writes, “instead of levying a tax across a broad group (all car owners), as we did pre-​Eyman to help pay for ferries, the costs now are increasingly heaped on a narrow group — the ferry riders themselves.”

Horrors! People paying for what they use!

Westneat seems to be into financial irresponsibility. “Yes, [the system] wastes money sometimes. What big organization doesn’t?” Nice dismissal of the incompetence and corruption in a state-​run biz that cannot even account for its cash.

When the ferries were taken over from private business by the state, it was, he says, because of the previous owners’ “usurious 30-​percent fare hikes.” Not mentioned? This followed the cessation of Seattle’s wartime shipworks, and a huge decrease in demand.

Some folks sure apply basic economic insights selectively. Dispersing costs, concentrating benefits? That they idolize. Economies of scale? Their arguments run aground.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies U.S. Constitution

Reading Comprehension

Never has the Constitution been read on the floor of the U.S. House of Representatives. And, boy, does our political situation show it.

When the 112th Congress convenes this week, the law of the land — the limited, enumerated powers granted to the federal government by “We the People” in this 223-​year old document — will for the first time be spoken aloud for all honorables to hear. It’s a quick read, less than 5,000 words, and presumably cameras will be rolling, so we’ll know if any elected representative sticks finger into ear during the recitation.

A hat-​tip to the Tea Party movement, this reading of the Constitution is a great way to remind our legislators that such a document actually exists.

Even better, a new rule will be proposed requiring every piece of legislation to have affixed a citation “where in the Constitution Congress is empowered to enact such legislation.”

Sure, Washington pundits have mocked this newborn constitutionalism, crying “gimmick!” One history professor called it “entirely cosmetic.” Tea Party activists are skeptical, too. As they should be.

Neither reading the Constitution nor declaring the constitutional authority for legislation amounts to magic. But, with a political process in which politicians rarely recognize any limits to their wizardry, a requirement that Congress specifically pay attention to whether its actions are permitted by the Constitution is, well, really good.

Will it lead to Congress actually abiding by the limits of our Constitution? It certainly couldn’t hurt.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets ideological culture national politics & policies

Study War Some More?

Some people love spending so much they’d kill to do it.

A while back, Paul Krugman, today’s leading Keynesian shill, trotted out the old chestnut that World War II brought America out of the Great Depression. In The Freeman: Ideas on Liberty, Steve Horwitz provides a concise, reasoned response:

Wealth increases when people are able to engage in exchanges they believe will be mutually beneficial. The production of new goods that consumers wish to purchase is the beginning of this process. 

And borrowing from future generations to spend on goods not connected “to the desires of consumers, but rather to the desire of the politically powerful” doesn’t work. 

Krugman talks war not because he wants one, but because he thinks government spending is so important that he’ll take what he can get, “even if the spending isn’t particularly wise.”

He misses the point.

The malaise that holds back recovery after a shock like the Implosion of 2008 isn’t lack of spending as such — it’s lack of confidence. Capitalism depends on trillions of separate plans and desires working together. When investors are wary of investing and consumers — fearing the future — don’t know what they can really afford to buy, no amount of “jump start” splurging will repair the engine.

At the end of World War II conscripts were freed, wage and price controls were abandoned, and a sense of victory permeated everything — and the Great Depression ended. Finally. 

The lesson? End wars. Curtail regulations. Free up the system.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

The Housing Boom’s Inflated “Wisdom”

Watch how the received wisdom gets worded: “A sustained rebound in home prices is considered critical to getting the economy back on track.”

That’s from a Washington Post business report on falling home prices. Its passive voice construction covers up who holds the opinion. 

The sentence could have been written differently: “Many politicians, policy wonks, and industry shills believe that only a sustained rebound in housing prices can put the economy get back on track.” But that would have helped the reader see the special interests behind the statement. 

We need housing prices high and rising again … to fulfill the plans of the very people who set up the house of cards that just came down.

Harvard economist Jeffrey Miron’s reaction is worth quoting in full: “No, no, a thousand times no!

Housing prices are falling because they soared to ridiculous levels during the bubble. Any policy that attempts to keep prices high — or, equivalently, that attempts to prevent foreclosures or juice housing construction — is fighting a crucial market adjustment to past distortions.

The housing boom mania — fed by multiple government subsidies and massive financial intervention coupled with cheap money from the Federal Reserve — served some people at the expense of the public at large. Progress doesn’t depend on it. Real progress depends on rejecting such nonsense.

By the way, other things equal, inexpensive housing is good for us. The whole “rising prices” mania defeats the alleged rationale for mortgage subsidies in the first place.

This is Common Sense. I’m Paul Jacob.

Categories
jury rights and duties

The New Nullifiers

It’s happened before: The people are speaking up. In court. As jurors. As citizens.

A Missoula District Court could not impanel a jury in a marijuana possession case. Potential jurors refused to say that they would follow the law in convicting a person for possessing a sixteenth of an ounce of the popular weed. One juror wondered why the county was “wasting time and money prosecuting the case at all.” The flummoxed Deputy Missoula County Attorney Andrew Paul called it “a mutiny.” 

The judge said he’d never seen anything like it.

Too bad.

Jury nullification is an old idea, a democratic idea. I wrote about it a few years ago, in reference to the growing movement to recognize it as a principle of law. Voting isn’t the only check citizens have against bad laws. Juries have a right to judge the law as well as the facts in the case, no matter what usurping judges tell them.

The most spectacular instances of jury nullification in American history regarded slavery. Many northern juries revolted against enforcing the Fugitive Slave laws, to the consternation of slave-owners.

The current case didn’t quite get to full nullification, in legal terms. Instead, it approached nullification practically, forcing prosecutors to bargain the case down. 

This citizens’ revolt against some of the absurdities in our War on Drugs indicates that we can expect bigger changes in the future.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

The Latest Mixed-​Economy Mix

Mix special interests, politicians-​on-​the-​make, and expanding bureaucracies and what do you get? E15 gasohol.

Matthew Wald of the New York Times’s “green” blog reports that government ethanol mandates and subsidies make it harder to sell gas efficiently. Converting gas tanks to accommodate the new 15 percent ethyl alcohol/​gas blend, E15, could mean shortages of gas for customers with cars that can’t use it. Moreover, ethanol can damage some engines and gas pumps.

A slew of engine manufacturer associations have sued the EPA to block approval of E15. On the other side of the special-​interest coin, it’s worth noting that it was the ethanol industry that pushed for E15 approval in the first place. 

The approval by itself wouldn’t mean much if buyers and sellers weren’t being forced to use ethanol. New fuel products have been introduced by market participants in the past; with E15, producers and resellers could offer — and consumers buy — the fuel that makes the most economic and technological sense. Instead, the current innovation is an artifact of government policy. You can be sure that the problems caused by imposing ethanol will trigger other political “solutions” that worsen market disruptions, triggering even worse “solutions,” and so forth.

Our “mixed economy” isn’t generally efficient, like free markets tend to be. In a mixed economy, the political winners win big; the rest of us lose.

It’s a mixed bag. The headier mix resulting from freedom? Far better.

This is Common Sense. I’m Paul Jacob.