Category: too much government

Categories
free trade & free markets too much government

Virgin Galactic’s Latest

It seems like only yesterday that Burt Rutan flew SpaceShip One into near-orbit and received the Ansari X-Prize for piloting the first manned private craft into space.

But it’s been five years.

Things have happened in the meantime. To be specific, SpaceShip Two, just unveiled.

It’s a much larger ship than the original, capable of carrying six passengers as well as two pilots. It has more windows. I like windows.

A year or so ago the company, Virgin Galactic, had shown off their White Knight Two, a twin-fuselage aircraft designed to ferry SpaceShip Two high into the atmosphere.

There’s still a lot of work to be done before rich people can actually trek up into space. Yes, space tourism is a few years away. But it’s coming, and it’s important.

As long as space is a government-subsidized and -organized industry, it will suffer from the usual problems associated with bureaucracies and politics.

But let’s give NASA its due: Those scientists and engineers took the risks, squelching the screechings of many folks who, these days, don’t approve of burning any kind of fuel, really, or risking anyone’s life. Think of the lawsuits that would have happened — the OSHA violations, for instance — had private industry been allowed to start this!

Now, it’s high time for private enterprise to take over. To make space flight rational. And fun, again.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

A Contorted Practice, Challenged

In his book Stuff White People Like: The Definitive Guide to the Unique Tastes of Millions, Christian Lander notes that “Yoga is essentially stretching with guidance. . . . . You might think that since yoga is such a minimalist activity, it can be done almost anywhere. But you would be wrong. Yoga must take place on hardwood floor at a studio. Exposed beams are generally believed to enhance yoga experiences by 40 percent.”

With this droll explanation in mind, you might think that much of the “specialness” of yoga depends on trivialities, like “$80 pairs of pants.”

But the state of Virginia harbors no such cynical thoughts. It understands the secret of yoga’s ancient allure: The great chain of instruction must be regulated by the state.

Virginians are free to do yoga, even in their own dingy homes, and to inappropriate music, say Bach or the Turtles.

Further, any Virginian may teach yoga. Hey, it’s a free state.

But under no circumstances may a Virginian teach another Virginian how to teach yoga — not without paying heavy administrative fees in the state’s vocational licensing system.

Silly, you say?

Yes.

Thankfully, the Institute for Justice teamed up with yoga-teacher trainers Julia Kalish, Suzanne Leitner-Wise, and Beverly Brown to challenge the law, on Constitutional grounds.

Now that’s soothing.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets responsibility too much government

Massive Failures

How many times, in the last year, have I heard praise for FDR’s banking reforms, even down to the specifics of federal deposit insurance?

The funny thing is, this factoid is false. Roosevelt opposed deposit insurance. Everyone did who at that time knew the history of the states that had experimented with this form of subsidy. Only logrolling pushed deposit insurance into law as a known special favor to small banks in rural areas — not to cure the nation’s ills.

The actual history and lessons of bank failures is explored by Charles Calomiris in a recent paper provocatively titled “Banking Crises Yesterday and Today.” According to this Columbia Business School professor, bank panics were not uncommon in the U.S., prior to the Federal Reserve in 1913. And the Fed pretty much stopped them. Massive bank failures, on the other hand, are different. Not unheard of elsewhere, massive failures had not been a problem in America leading up to that time. However, such failures became a problem a few decades later in the Great Depression.

Calomiris explains that such massive crises are brought on, chiefly, by institutional risk factors, like deposit insurance, government manipulation of the housing market to increase ownership through loosening of financial standards, and the “too big to fail” doctrine.

It turns out that honest standards, and not mammoth government subsidies and guarantees, prove the best way to prevent catastrophe.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Give Liberty a Chance

Give a golf club to Tiger Woods, and you know what to expect: Great golf.

Give the same club to Mr. Woods’s wife, and, well, you get something else again.

Give our politicians both a huge allowance and unlimited credit, and you get a batch of people unable to control their spending.

Expected, or unexpected?

Expected. Of course. We’ve come to expect this for a very long time. That’s why both the Federalists who wrote the Constitution, and the anti-Federalists who amended it, were obsessively concerned with checks and balances, with limitations on government.

Unfortunately, too often we speak of BIG government these days. But it’s not the size, as such, that is the problem. It’s the unlimited nature of it.

So when you have a chance to check government at the ballot box — say, in a state or local initiative or referendum — ask whether the measure limits government or unlimits it.

And, when considering a candidate, look for his or her promises about limits. If the candidate won’t limit spending in some very sure way, or the candidate’s own terms in office, then reject the candidate. Vote against. Go to the polls and write someone else’s name in, if that’s the only pro-limit, pro-liberty thing you can do.

We’ve got to put “limits” back into the conversation. Think constitutions. Think rule of law. Think liberty.

This is Common Sense. I’m Paul Jacob.

Categories
tax policy too much government

Words and Definitions

As a candidate, Barack Obama promised that he would not raise taxes on any but the wealthiest Americans. Make less than $250,000 a year? You’re home free under his administration.

I mean, not counting current federal levies.

But President Obama has all the ambitions of a big-spending liberal. And “big-spending” translates pretty quickly into “big-taxing.”

One of these projects is a massive new federal takeover of the health care industry, in the name of “universal coverage.” New taxes would be imposed. For example, anyone who refuses to sign up for health insurance in the new regime would be slammed with a hefty tax.

Obama denies that such taxes would in fact be taxes. He even rebuked George Stephanopoulos for citing a dictionary definition of the word. Leaping to the president’s defense, House Majority Leader Steny Hoyer agreed that the new taxes would not be taxes. “[W]hat we are saying,” Hoyer said, “is everybody will contribute . . . to making sure that health care options are available to all of our citizens.”

Try dispute that. It’s like arguing with fog. Columnist Jacob Sullum quotes Hoyer and observes, “So we’re talking about a legally required contribution that will be used to provide a government-arranged benefit. If only there were a shorter way of expressing that concept.”

Well, in searching for le mot juste, don’t tax yourself.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall tax policy too much government

Legislative Dreamin’

California voters love their state’s process for placing initiatives and referendums on the ballot.

Legislators? Most take a much dimmer view. This year they’ve been blaming voters for spending the state into bankruptcy through the initiative. Additionally —  and please hold your laughter — they claim that initiatives have tied the hands of legislators who would otherwise have better managed the state’s finances.

Enter Bob Stern of the Center for Governmental Studies. At a recent public hearing of the Senate and Assembly Select Committees on Improving State Government, Stern told legislators, “Most of the ballot-box budgeting has come from you.”

Stern was referring to a Center study that looked at all ballot measures over the last 20 years that required additional spending. Stern found that three out of four measures costing money were put on the ballot by legislators, not through the citizen initiative. He also found that the legislature’s own ballot measures cost the state $10 billion, while citizen initiatives cost only $2 billion.

Of course, an even bigger issue is the wild spending spree by California politicians with no ballot box input from voters at all. While state tax revenues have increased a whopping 167 percent over the last two decades, government spending shot up 181 percent.

Voters aren’t perfect, but anyone with a lick of common sense knows the answer to controlling government spending isn’t to free the politicians from voter restraint.

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption too much government

Look for the Union Babble

I have a very controversial position today. Sorry if you disagree, but I feel I must speak out.

Here goes: In my view, it is okay for boy scouts to do good deeds.

There, I said it. Sorry if you find my view repugnant. Eh? What’s that? You agree with me? Great! I always prefer it when you and I are on the same page.

Sadly, though, the president of a Pennsylvania chapter of the Service Employees International Union does not agree. Nick Balzano is upset that 17-year-old Kevin Anderson cleared a path so people could better enjoy a river. Kevin is pursuing an Eagle Scout badge and did the work voluntarily.

Balzano threatened the city of Allentown because it had recently laid off some union workers. He thinks it’s a sin to not only reduce labor costs but also get some work done for free. I think Balzano should try for a couple merit badges of his own. Maybe a logic badge and a common sense badge, for starters.

Turns out a lot of people agree with me. Balzano has resigned in the wake of a firestorm of protest . . . without learning a thing, apparently. He insists he’s got nothing against boy scouts. He’s just “trying to protect my jobs.”

Let’s hope his union never gets a city contract to help little old ladies cross the street.

This is Common Sense. I’m Paul Jacob.

Categories
general freedom too much government

Personal Liberty Allowance

In a time of expanding surveillance and shrinking liberty, the citizens of Great Britain are now threatened with yet another massive assault on their rights and dignity.

A certain Lord Smith of Finsbury wants the government to lord it over Her Majesty’s subjects even more obnoxiously by slapping them with a “personal carbon allowance.”

This carbon allowance would be enforced by giving everybody a personal ID number. Britons would have to supply the number whenever they buy anything, from gas to airline tickets, affecting their carbon output. Presumably, vendors would check a customer’s newest proposed purchase against some database. Only so many logs you could toss on the fire and then you’re out of luck, unless you buy more carbon credits.

The proposal is vicious in itself. But the potential for “abuse” of such an abusive protocol is also massive. In an age of rampant credit card fraud and identity theft, how hard would it be for a sales clerk in the proposed regime who has used up his own quota to “borrow” somebody else’s carbon-permission ID number?

If the British government wields this latest Orwellian bludgeon and the citizens don’t rebel, they’ll accept anything. We Americans may shake our heads in disbelief, but we’re hardly immune to such eco-totalitarian trends.

It can happen here. After all, Lord Smith’s proposal merely takes the obsession over carbon emissions to its logical — and absurd — conclusion.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Multiplication and Division

John Maynard Keynes’s most popular notion was his infamous “multiplier” effect. Spend some government (taxpayer) money, and the effects “multiply” in the economy, as if the Invisible Hand were on speed.

The truth is the reverse: “the divider” effect. Create government jobs and progress in the marketplace “divides” as a result of the increased taxes needed to support the jobs.

Our orator-in-chief also says he’s in the business of “saving jobs.” Like most politicians, he loves “multiplier” talk, because it gives him the green light to spend.

But, like the bank bailouts, what’s really happening with stimulus spending is that some people are getting raises and bonuses while the unemployment rate goes double-digit.

The actual multiplier effect regards talk. For every dollar government spends, politicians claim umpteen more jobs “saved.” It’s not reality. The multiplication effect occurs entirely in rhetoric and in PowerPoint presentations.

The New York Times tells us how “the federal government spent $1,047 in stimulus money to buy a rider mower” for a cemetery in Arkansas. Then, “a report on the government’s stimulus Web site improbably claims that that single lawn mower sale helped save or create 50 jobs.”

The magic of this sort of job creation doesn’t rest upon the logic of markets. Here the magic lies simply in the lying. The “multiplier” multiplies because politicians tell multiple lies.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies responsibility too much government

$800 Billion Gorilla

It somehow didn’t come up.

Last week, when President Barack Obama met with Chinese premier Wen Jiabao, there was reportedly no discussion of the fact that our country owes China over $800 billion.

Just suppose you owed someone $800 bucks . . . or $800,000. Do you think it could affect the relationship?

What about nearly a trillion dollars?

The Obama Administration just announced that American-Chinese relations are “at an all-time high.” But a story in the Washington Post compared our relationship with China to the nuclear stalemate of the Cold War, known as “mutually assured destruction,” or MAD. We’re dependent on them for future loans; they’re dependent on us to pay back old loans and new.

Kenneth Lieberthal of the Brookings Institution explained that “the Chinese can pull the rug out from under our economy only if they want to pull the rug out from under themselves.”

Reassuring? Not very.

Why have we allowed a foreign power to gain such leverage over us?

Because our politicians cannot — will not — limit their yearly spending to the trillion-plus dollars in revenue from American taxpayers.

When it comes to debt, China’s tyrants  have taken better care of their country than our politicians have of ours. But we needn’t cede them control. Far better simply to stop borrowing billions from Beijing.

How? Slash spending. If our politicians can’t do it for us, maybe they can do it for their Chinese allies.

This is Common Sense. I’m Paul Jacob.