Category: too much government

Categories
free trade & free markets too much government

Derailed

You gotta love trains. You gotta, you might say, since we all pay for them.

In taxes, subsidies.

The federal government’s Amtrak system loses $32 for every passenger — averaging all the routes. According to a recent Pew study, most lines of the system ran at a loss last year, many at a huge loss.

The Acela line, in the Washington, DC/Boston corridor, makes a profit of $40.50 per passenger, when depreciation costs are figured in. But most lines aren’t so solvent.

On the other end of the country, the Cascades line loses over $32 per passenger and the Coast Starlight squanders $100 more.

But these losses pale besides the Sunset Limited, from L.A. to New Orleans, which loses a whopping $462.11 per passenger.

Many of these routes should just be closed. People pay the full costs of car rides and plane rides, in droves, right now. There’s no reason to throw more money on “the problem” of routes that already suck up big bucks.

Were all routes sold off, line by line, private enterprise would abandon some — and make the rest profitable. Or go broke trying. But it wouldn’t be your dime going for the losses, unless you choose to invest in a post-Amtrak rail line.

Instead of this, the Obama administration threw a dozen billion bucks at high-speed rail.

That way we can go faster — go broke faster.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Bernanke’s Pseudo-Semi-Solution

I’m not convinced. I’m not persuaded by Federal Reserve Chairman Ben Bernanke’s recent comments about how we must start trimming the nose hairs of the federal government’s runaway deficit spending.

Bernanke has been a great enabler of economic disaster. By pumping so much easy credit into the economy after the Great Internet Bubble popped early in the decade, Bernanke and his predecessor made it easy as pie to pile up all the bad housing loans that produced the Great Housing Bubble late in the decade.

His new solution? Massive new multi-billion bailouts of bad economic actors. More and faster pumping of the money supply. More and faster enabling of bad investments and bad debt by working to keep federal-fund interest rates vanishingly low.

Now Bernanke wants America to reduce its sky-high deficits — $1.42 trillion for fiscal year 2009. He says we need a “clear commitment to reduce federal deficits over time.” Sure Ben, sure. I don’t disagree. But talk is cheap. Especially vague, general talk that your own actions persistently belie.

Bernanke seems to have some inkling that the fantasy economy can’t persist forever. He has, alas, no real idea of how to return to reality. He’s the guy who blows up a dam and then wants to lay down some twigs to stop the flood.

Stop blowing up the economy, Ben.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Will Politicians Ever Learn?

We don’t have time to research everything. That’s why, in theory, citizens have political representatives. They are supposed to research the issues for us, learn from past mistakes, and make improvements. Better laws. Better programs.

Welcome to reality. Instead of doing their job, politicians tempt us over and over with the same old, disproven get-rich-quick, get-healthy-quick schemes.

Peter Suderman, writing in the Wall Street Journal, looked at “The Lessons of State Health-Care Reforms.” He did what our federal politicians should have. “Like participants in a national science fair,” Suderman writes, “state governments have tested variants on most of the major components of the health-care reform plans currently being considered in Congress. The results…?” Suderman puts it bluntly: “[D]ramatically increased premiums in the individual market, spiraling public health-care costs, and reduced access to care.… The reforms have failed.”

He discusses Maine’s public plan, “Dirigo Choice,” which I’ve talked about before. He traces the cause of Massachusetts’s individual mandate to its horrible effects: higher prices pushing businesses and individuals to bankruptcy. Tennessee’s 1990 reforms proved even more destructive.

One of the reasons we’re even talking about reform, now, is because of past reform failures. By our careless representatives.

This is Common Sense. I’m Paul Jacob.

Categories
general freedom too much government

Wait Until Next Year

Enjoy the Major League Baseball playoffs. Me? I’ll be crying in my beer. Except that I don’t even drink beer . . . it messes with my sinuses.

I had very high hopes that the Detroit Tigers would make it to the playoffs, perchance to the World Series. In first place in the Central Division throughout June, July, August and September, the Tigers tied for first at season’s end with the Minnesota Twins. So after 162 games, it took one more to anoint the division champion. That 163rd game went back and forth for twelve innings. But we lost.

Boo and hoo. Not everyone can be a winner. Except, maybe, in another sense.

The corporate-government complex that has taken over baseball and most of professional sports has milked billions from taxpayers. Everyone pays for stadiums even as players and owners rake in extraordinary rewards.

We could all win if this subsidy system were stopped. The fans, especially, could rejoice, savoring in good conscience the game’s important lessons: The ethic of always working your very hardest, doing your best, never giving up.

It’s entertainment and solid lessons about life that I can share, even now, with my kids. This summer we had the opportunity to travel to Detroit to see one game. And then, sitting on our couch, we watched on TV until the final pitch, hooping and hollering enough to make my wife shake her head.

After the game, we complained about missed calls and blind umpires, reminding ourselves that there’s always next year.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall too much government

Pension Tsunami

A humungous national debt. Growing state federal government budget deficits. Social Security and Medicare, running out of funds. All very frightening. But look out: The costs of public employee pensions are walloping city and state budgets — pushing a number of California cities into bankruptcy.

Though the stock market tumble hasn’t helped, the basic problem lies squarely with politicians. They like to increase future benefits to gain political support from public employee unions; they then underfund their lavish promises, the better to hide the fiscal reality from today’s taxpayers.

Politicians keep running from the problem, but a website called PensionTsunami.com won’t let them hide. The site, run by Californian Jack Dean, offers a steady stream of horror stories:

  • A new report calls the Kansas Public Employee Retirement System “bankrupt.”
  • A Rye, New York, city manager makes $198,000 a year while still collecting a pension for the same job.
  • The chief actuary for the California Public Employees Retirement System admits that current pension costs are “unsustainable.”

All across the country, politicians consistently fail to act. Californians are lucky: They have the voter initiative. The California Foundation for Fiscal Responsibility, a group whose board includes Mr. Dean, is planning a statewide initiative to prevent their approaching tsunami.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Expensive Solutions

I’m skeptical of the notion that climate change is being driven by human activity . . . and thoroughly unconvinced that the planet will continue to warm causing catastrophic results.

But what if? If the globe is warming, what to do about it?

For starters, sell your beach house in Florida. Global warming means ice sheets melting, oceans rising, shoreline lost.

But for those of us without the beach house, what is the cost of global warming compared to the cost of fixing the problem?

Bjorn Lomborg, author of the book, Cool It: The Skeptical Environmentalist’s Guide to Global Warming, looked at this question and concluded that solving the problem of climate change is not cost-effective.

Lomborg is indeed concerned about warming and says that in an ideal world we’d “solve it.” But he says we have to set priorities, and that “[w]hat we can do about [global warming] is very little at a very high cost.”

In a Washington Post column, Lomborg warned that the damage done — especially to the world’s poor — by cutting carbon emissions will far outweigh the benefits. The estimated cost from projected climate damage is $1.1 trillion dollars. The projected expense of cutting enough emissions to avoid that damage is $46 trillion.

I’m skeptical about global warming. But spending $46 for every buck saved takes me well beyond skepticism. I’m against any such idiotic plan. If we must have catastrophe, I prefer the cheaper one.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

The Canadian Treatment

While President Obama flew to foreign lands to lobby for Chicago’s Olympic bid, a group of Americans trekked to Canada to find out about government-run health care.

Jon Caldara, president of the Independence Institute in Colorado, visited Vancouver, British Columbia, to host a conference that explored Canada’s medical system. Caldara’s foray north was written about in the Washington Times, and the Los Angeles Times interviewed some of the same Canadians.

Caldara’s interest in the subject is personal as well as civic-minded. He has a 5-year-old son who has undergone eight operations, including heart surgery. From what Caldara can tell, his son would have received little or none of this treatment in Canada. There, instead, he would have been put on waiting lists.

Caldara heard stories from Canadians who had been shuffled from one specialist to another, each requiring long waits before even being seen. Actual treatment? More waiting.

Outside the system, entrepreneurs have sprung up to broker deals with private physicians to the south, in the U.S., and even with growing quasi-illegal clinics in Canada.

Meanwhile, in our little haven for sick Canadians, American politicians still talk about reforms that would ruin it for the Canadians — as well as for us. Some even prefer the Canadian system to what we have now.

Jon Caldara doesn’t think this makes sense. Neither do I.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

A Regulatory Assault Taxis Into Law

When the politicians in our nation’s capital aren’t the butt of jokes for, say, not paying their taxes or behaving scandalously, well, they’re causing even more trouble.

One of their favorite areas of official mischief-making is assaulting — er, regulating — the city’s taxicabs. Last week a number of cabbies went on strike, protesting a proposed system, not dissimilar to New York’s taxi regime. The new scheme would require cab owners to buy a very expensive medallion to operate each cab.

Larry Frankel, one of the strikers quoted in the Washington Post, said, “We are here to protect our rights as owners and operators.”

The protesting cabbies object that this is not just another expensive regulation. This one threatens their very livelihoods. It’s almost designed to favor large companies over driver-owned cabs.

Which seems almost universally the case with regulations: They protect big interests from competition.

District Council member Jim Graham, who introduced the bill to “medallionize” taxicabs, said he feared the city would be “overrun” with taxis. There are 8,000 already, with 300 adding on every month.

Why, some day there could be more cabs than politicians and lobbyists combined! Imagine the disaster: Folks getting across town too easily or, worse yet, too inexpensively.

Just another bit of ill-thought-out regulation. It is par for the course in our nation’s capital. It makes you proud to . . . live somewhere else.

This is Common Sense. I’m Paul Jacob.

News Flash: After this commentary was recorded, the FBI arrested a top aide to DC City Councilman Jim Graham on charges of accepting cash bribes and free trips in exchange for pushing the taxicab legislation discussed here. (See this news coverage and this article in the Washington Post.)

Categories
too much government

American Opinion versus the Political Mandate

American politics is often dominated by a myth, the myth of the “mandate.”

Mandates, it is said, come from winning elections. The word used to be applied to big wins. Now that’s been watered down.

But elections do not a mandate make.

The recent shift from united government under the Republicans to united government under the Democrats has been dubbed a mandate, a mandate for “change” — which, in the programs of President Barack Obama and his powerful allies in Congress, seems to mean “more government.” Lots more.

Meanwhile, the American people hold different notions. A recent Gallup poll shows that 57 percent of Americans think that government is doing too much. Only 38 percent of respondents to the poll thought that government should do more. And regarding business and industry? Twenty-four percent thought government did too little; 45 percent thought government regulates business too heavily as it is.

According to most Americans, there’s too much government overall.

So how does this square with the picture provided by major media, and emphasized on the left? Not very well. Democrats came into the recent situation thinking they had a mandate. They were wrong.

What Democrats had was a win from Americans repudiating the Republicans for general incompetence, and for (yes) growing government too much. If Democrats continue their government growth agenda, the mirage they see as a mandate will completely vanish.

This is Common Sense. I’m Paul Jacob.

Categories
First Amendment rights too much government

The First Casualty of Health Care Reform

The first casualty of war is truth. The first casualty of health care reform? Free speech.

While most health care insurers have gone along with reform proposals, even helping write the bills, a few insurance companies fall outside the insiders’ perimeter, fearful of more regulation. The regulatory environment is already oppressive, after all — though, for the insurance industry these regs come mainly from the states.

So, we now learn, at least one medical insurance provider, Humana, sent out a special letter to policyholders who also participate in the Medicare Advantage program, advising them of what the effects of new reforms on their coverage would likely be.

What happened next?

If you guessed “gag order,” you got it.

After Humana’s expression of First Amendment rights, the Department of Health and Human Services told all insurers participating in Medicare Advantage to zip it, stifle themselves, express their thoughts in no way about any proposed reform to their policyholders — even if all such expression amounts to is a list of facts.

Penalties include both fines and jail time.

Yes, folks, this is what unlimited government means. Increase government’s role and “hasta la vista” to some very basic freedoms.

Just as government micromanagement of markets leads to shortages and rising prices, so increased government has predictable consequences. We pay for big government in lost freedom as well as dollars.

This is Common Sense. I’m Paul Jacob.