Author: Redactor

Categories
Accountability folly too much government

Our Limited Abilities Require Other Limits

Last week I asked, in effect, Who regulates the regulators?

It does no good to say “the people,” because — as much as I want government to be ultimately controlled by the people — if you’re like me, you don’t know enough to micro-​regulate high finance.

But there’s something I didn’t mention last Wednesday: The regulators don’t have that knowledge, either.

Even keeping eyeballs on simple fraud turns out to be difficult. Trying to micromanage high finance? Much harder.

But the congenital inability of regulators properly to regulate doesn’t mean that we must consign ourselves to a never-​ending, Sisyphean cycle of boom and bust. 

Many of the instruments of the modern federal government try to do too much. These very institutions, because they hubristically attempt to regulate away boom bust deliver just the opposite. They make sure booms go bust in messy ways. 

Here’s a fresh example: “Lack of regulation” wasn’t the main reason for this latest bust. More important? The “too big to fail” subsidy. By giving Wall Street, big bankers, and financial intermediaries the impression that they would be bailed out in case of implosion, those very same folks behaved in such a way to risk said implosion, and thus needing the bailouts.

Which happened.

Which started the cycle all over.

Only by going back to basics can we improve our long-​term economic outlook — not by government micromanaging the economy.

Nicely, citizens like you and me can understand these “basics.”

And defend them.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies porkbarrel politics

It’s the Season

Ho, Ho, Ho. It’s that time of year again. Shopping. Selecting the right gift. Thinking of those special someones.

Yes, it’s Omnibus Spending Bill time, the Satan Clause time of year, when politicians fill up the stockings of their naughty friends in the lobbying business, and give generously.

With our money.

This year, Harry Reid went all out. He pushed an omnibus spending package that included so many earmarks that Congress had to use its whole box of Crayons just to keep some order to the bill’s marked corners. Yes, there were over six thousand “special holiday gifts” for special interests. 

As I said, “Ho, Ho, Ho.”

That’s not an elfin chuckle, that’s a popular euphemism for what the politicians are who cooked up this list without checking it twice.

But an unseasonable gust took the wind out of Reid’s sails. Pressured by folks back home, the bill was soundly defeated. As Daniel Mitchell put it, it was the American people — not the special interests — who got the Christmas present:

[F]iscal conservatives, libertarians, and Tea Partiers have won an important battle, but this is just one skirmish in a long war. If we want to save America from becoming another Greece, we better make sure that we redouble our efforts next year. 

At last, special interests get a lump of coal. It’s something to celebrate. And repeat. Ho, Ho, Ho! Like that ol’ elfin chuckle.

This is Common Sense. I’m Paul Jacob.


Categories
folly

The Candy-​Cane Killers

Tragic holiday horror! Diabolical kids with bad sweaters, scheming with Grinch-​like dastardliness to stab at the heart of the season! Openly distributing thinly disguised blades …

Openly! Well, the school administrators were on the case in a jiffy.

The ten culpable kids at the Haymarket, Virginia, high school — called, by a cruel joke of destiny, Battlefield High — belonged to the secret commando unit “Christmas Sweater Club,” so-​called because they wear “the craziest sweaters they can find.”

Just the kind of loosely-​knit cover story you’d expect from such warped-​and-​woofed yarn spinners.

On the fateful morning, before classes began, club members ruthlessly tossed two-​inch candy canes to arriving schoolmates. These student instigators told Channel 9 that school officials charged them with trying to “maliciously maim” their fellow students. “They said the candy canes are weapons because you can sharpen them with your mouth and stab people with them.”

By the time disciplinary notices were issued, however, the complaint had lapsed into something about “creating a disturbance.” Mom Kathleen Flannery related an administrator’s earnest appraisal: “Not everyone wants Christmas cheer.”

Lesson? Obviously, tiny candy canes in the wrong hands are dangerous, especially if converted by frenetic licking into ferocious little shivs that could turn a playground into a killing field! 

Also, tiny brains in the wrong school officials’ heads can be dangerous, too … especially when they can’t be sharpened at all.

This is Common Sense. I’m Paul Jacob.

Categories
folly free trade & free markets national politics & policies too much government

Madison’s Angels to the Rescue?

Something called “behavioral economics” has arisen in recent decades, testing and probing many of the assumptions-​cum-​postulates of basic microeconomics. Researchers have discovered that human beings are prone to biases, cognitive errors, and a whole bevy of choice glitches. We are not perfectly rational.

Shocking, I know.

Some people draw an odd moral from this: Since people are such fools, they require the help of government to regulate them from utter folly and ruin.

Economist David Henderson quotes one of his Facebook friends, TV creative director John Papola, as supplying the “most succinct criticism” of this tack: “Why in the world do behavioral economists who study our flaws and irrational quirks advocate centralized power in the hands of a small group of flawed overlords? If people are irrational, so are government regulators, only they have corrupting monopoly power.”

You’ve seen this kind of argument before, in political theory. James Madison famously noted that 

If men were angels, no government would be necessary. If angels were to govern men, neither external nor internal controls on government would be necessary.

Just so: Were we entirely rational, no regulation would be necessary — no laws would. But, given universal human limitations, the regulators themselves require regulation, and a (non-​existent) supply of non-​biased, error-​resistant rationality, to boot. 

Forget vast reams of regulations and huge teams of bureaucrats. Instead, perfect the basic rule of law, regulating markets by a well-​conceived basic set of rules. 

And expect some imperfection. 

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture

No Labels, No Clue

Some big players at the game of politics misinterpret the nature of today’s general political discontent, and offer only hollow novelty in response.

Take the “No Labels” movement.

A number of big-​name politicians, including New York Mayor Michael Bloomberg and Indiana Senator Evan Bayh, push the idea of a centrist, can-​do spirit, a bi-​partisan effort that will transcend the nastiness of the current Establishment Insider/​Tea Party Outsider split. Their trendy-​sounding “No Labels” label communicates their allegedly co-​operative, spectrum-​transcendent message. Their slogan? “Not Left. Not Right. Forward.”

According to Linda Killian, of Politics Daily, “the message No Labels is espousing is exactly what a majority of Americans, who are fed up with both parties, say they want from their government.”

This seems to fly in the face of what I’ve gleaned of American disgust. And it distorts the actual landscape of power. No Labels “pragmatism” is as mainstream as you can get, as Matt Welch noted in Reason:

Barack Obama and John McCain both ran for president as post-​ideological pragmatists. So did, in their own ways, George W. Bush and Bill Clinton. It remains an attractive pose, and will always draw cheers from the indefatigable problem-​solvers drawn to power like cowbirds to cattle.

America’s growing disaffection with politicians springs from the continual betrayals of common sense by both parties — including centrist can-doers. 

“No Labels”? Phooey. Instead: “No Bailouts. No Over-​spending. No Ignoring the Voters.”

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets

Big Box, Big Apple

Whether to let a business open up should not hinge on opinion polls. But a recent survey of New Yorkers does underscore the absurdity of banning Wal-​Mart from the Big Apple.

If you’re used to seeing a Wal-​Mart every 30 miles, you may be surprised to learn that there’s not a single Wal-​Mart in New York’s five boroughs. Unions have marshaled political clout to keep the company out. Now, with the store again trying to gain a foothold in the area, “community” activist Pat Boone complains that “We need good paying jobs, not minimum wage jobs.” Wal-​Mart pays more than minimum wage. But ask yourself: Is no pay for no work really better than a reasonable entry-​level wage that sustains some folks’ homes and hearths?

And who is the “we” that this “community” activist speaks of? The unemployed workers who would flock to the job-​application lines if Wal-​Mart came to town? The 71 percent of New Yorkers who, according to Douglas Schoen’s survey of 1000 New Yorkers, would cram the store’s aisles?

Too often, political power caters to interest groups eager to force others to conform to their own way of thinking. Markets, by contrast, are all about offering a value and then letting people decide for themselves whether they want to pay for it.

So let Wal-​Mart open up, New York. Let honest, hard-​working people get the best deals for food and supplies.

This is Common Sense. I’m Paul Jacob.