Category: too much government

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First Amendment rights free trade & free markets too much government

Absurdity Then, Absurdity Now

There’s a famous quip by one English intellectual about another. “Oh, you know what so-and-so’s idea of a tragedy is: A beautiful theory killed by an ugly fact.”

Well, don’t I know it.

I wrote a column, recently, for Townhall​.com, entitled “The Buxom Bailout Babes of the Umpteenth Brumaire.” In it I noted that while the Great Depression was a tragedy, today’s economic debacle, though a repeat of it, is more farce. To demonstrate its farcical nature I noted that some people are seriously talking about bailing out the newspapers, which have hit hard times.

And nothing, I assured my readers, could be more absurd than that. The point of having newspapers is to be critical of government. To have government support them would turn them into worse propaganda rags than they now are.

The trouble with this? Well, FDR, way back in the tragedy, also subsidized newspapers. Well, at least one.

Bailouts weren’t exactly the main thrust of the New Deal, but they happened. And, like most political acts, they were politically motivated. FDR was worried about Philadelphia, which was solidly Republican. The Democratic newspaper was failing.

So he bailed it out.

Simultaneously he set the IRS on the publisher of the Republican newspaper. In the next election, the area turned Democrat.

Here’s one theory that won’t be disproven: In government, it’s politics that matters.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability Common Sense free trade & free markets too much government

New Prez Pleads for Common Sense

I like a president who pleads for common sense.

Here’s the story, headlined in the New York Times: “Obama Calls for ’Common Sense’ on Executive Pay.”

The president announced a salary cap for top executives working for companies garnering the greatest gobs of booty under the most recent federal bailout. The cap? Half a million bucks.

President Obama allayed a few qualms, right away. He said that “This is America, we don’t disparage wealth.…” And he said, “we certainly believe that success should be rewarded.”

But he does talk about the “height of irresponsibility” in Bush administration bailouts, with execs taking huge bonuses after running their companies into the ground. Who wasn’t sickened by this? Obama sees it as common sense to make sure we don’t reward massive failure with the usual rewards of success.

Still, America is also about respecting contracts. Those corporations had negotiated very explicit contracts with their execs regarding the big bucks. And — surprise, surprise —  Congress wrote up the law on the gargantuan bailouts without requiring those contracts be renegotiated.

And consider: Do we really want our politicians setting non-​government salaries?

This is all a side issue, though. Take the bailouts themselves. Where’s the common sense there? They do reward failure. They will not help the economy. If our leaders had acted according to common sense, the whole salary issue wouldn’t even have come up.

This is Common Sense. I’m Paul Jacob.

Categories
general freedom too much government

Fake Grit

“Desperate times call for desperate measures.” Or maybe not: I prefer it when “cooler heads prevail.”

But as our times get desperate, here comes Tony Blankley with a new book, True Grit.

Blankley calls for a universal draft that would delay college or work for your 18- or 19-​year-​old boy or girl, forcibly placing them under government control. Under Blankley’s plan the military would get first dibs, but those not forced into military service would be corralled into civilian government service.

This is, well, stupid. One of the federal government’s few big successes has been the all-​volunteer military. Forcing people, not suited or interested, into armed service may seem egalitarian, but it undermines the military, which ought to concentrate on winning wars.

Moreover, to force millions more into government make-​work programs, again in the name of fairness, will cost taxpayers plenty — and uproot the lives of young people.

Charlie Rangel has been the most persistent conscription pusher. His draft legislation proved so overwhelmingly unpopular that when it was brought up in Congress even he voted against it.

In a review of True Grit at Human Events, Blankley is described as progressing politically from being a libertarian to a conservative to a nationalist.

Sorry, that’s not progress.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Trillions I Say

I hate to talk bailouts all the time. But the feds keep throwing more misallocated trillions at the problem.

What problem? Oh, you know — the predictable consequences of all the previously misallocated trillions.

We keep hearing about fresh piles of governmental largesse being devoted to making our troubles as long-​lasting and burdensome as possible. Of course, the central planners in D.C. don’t admit the necessary effects of their wastrel social-​engineering ways. They would rather call it, say, “investing,” or “economic stimulus.”

Economist Henry Hazlitt pointed out that government spending does nothing to “stimulate” the economy. It merely directs “labor and capital into the production of less necessary goods or services at the expense of more necessary goods or services.”

What politicians are really doing is buying votes, keeping themselves in office longer … while the bad times roll.

Our calculations of red ink should consider not only the federal debt on the books, which is now more than $10 trillion, but also the unfunded liability for Social Security and other programs. Adding all that, we get something like $70 trillion or more we’re on the hook for.

I did some quick math. A stack of 70 trillion one dollar bills would be close to 48 million miles high. More than half the average distance between the earth and the sun.

Just thought I’d mention it.

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption too much government

Get Real, Mr. Rael

Political ads are not much different from normal, commercial ads. Effective advertisements usually make it pretty clear what the hoped-​for outcome is.

Buy a widget? Patronize a business? In politics, it’s “Vote for X” … or A, B, or C.

Last political season, in New Mexico’s Bernalillo, Sandoval, and Valencia counties, ads ballyhooed a Rio Metro expansion project. They very clearly concluded by telling voters to “Make a Difference on November 4th,” and offering up a certain website that also promoted voting for the tax increase to expand the transit system.

So why did Lawrence Rael of the political entity responsible for Rio Metro deny the obvious? “We’re not saying ‘vote for the tax’ as an advocacy committee would do,” he explained. “We’re just simply saying, ‘Look, this issue is on the ballot … Here’s what it’s about.’”

Oh, get real, Mr. Rael.

The reason for his reticence? Governments in a republic aren’t supposed to influence voters but be influenced by voters. That’s the point of an election, where our tax dollars ought not be on either side.

Paul Gessing, of the Rio Grande Foundation, wrote in the Albuquerque Journal, “Having advocates for these proposals working on the taxpayer dime obviously tilts the advantage in the direction of higher taxes. But giving the pro-​tax side the additional advantage of a significant advertising budget is simply too much, and is truly unfair.”

No wonder government keeps growing, eh?

This is Common Sense. I’m Paul Jacob.

Categories
Common Sense general freedom national politics & policies too much government

Santa Speaks Out

Oh, sure, he’s a jolly old elf most of the time. But just ask Mrs. Claus: He’s got a temper.

Not long ago, I compared Congress to Santa Claus, because both hand out lots of goodies. Well, Santa was not amused.

“How in the name of the North Pole can you compare me with the politicians in Congress?” he wanted to know. “My elves and I produce our presents ourselves and we make a list so they go to the nice people. The Congress takes from others and often gives the loot to folks who are naughty.”

He’s got a point. And who wants to argue with Santa this time of year? Then there was the flap in Kensington, Maryland, where the long tradition of Santa lighting the town tree was ended after complaints from families who don’t celebrate Christmas.

Santa called and I was ready for an earful. But Santa wasn’t mad at the families who complained or the town officials. “Christmas is my holiday,” Santa said calmly, “and I’ll not let anyone turn it into something that’s forced on people. That’s not my style. I don’t want anyone forced to pay taxes against their will to celebrate Christmas. And that’s what’s been going on in this little town.

“I don’t need any government mandates; after all, hundreds of people in Santa suits brought their own holiday cheer to the Kensington tree lighting. The spirit of Christmas is something you give, not something you take. Ho! Ho! Ho! Merry Christmas!”

This is Common Sense. I’m Paul Jacob.

Categories
too much government

The Living Daylights

The Daylight Savings idea was one of Ben Franklin’s worst. He thought we’d all save candles if, in the summer, we started the day earlier on the clock, leaving more sunshine for the evening.

Politicians made it official: Move the clock one hour forward in the summer, to hoodwink people to get up earlier and leave more daylight hours for after work.

In our lifetimes, most Americans have suffered through Daylight Savings Time each summer. Courtesy of George Bush, the period was extended.

I object to the policy primarily on grounds of, well, honesty. Once you set up a basic system, don’t fiddle with it. If you want to save money, you get up with the sun rather than the clock — and leave me alone.

But technocrats dismiss that kind of thinking. They see human beings as radically imperfect and their laws as extraordinarily clever.

But now it turns out that Daylight Savings Time doesn’t save energy. Matthew J. Kotchen and Laura E. Grant, writing in the New York Times, report on their recent study in Indiana, where implementation of Daylight Savings has been county-​by-​county, a perfect statistical testing ground.

They found that Daylight Savings cost one percent extra. Franklin didn’t figure on morning heaters and daytime air conditioning.

So they suggest nixing the practice. Add that to the case against cumbersome meddling, and the time to treat time by one standard is now.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Wicked Trimmers of Cost

Robberies. Corruption. Furious government-​enabled debt expansion in the name of curing the effects of prior furious government-​enabled debt expansion. Murders. War.

And now, carpooling.

Yes, just when you think maybe it really is time to move to Canada to escape American insanity, you hear about how our neighbors to the north are harassing people for daring to save money on gas.

The alleged villain is an online startup called PickupPal​.com. This is a website enabling people going places to hook up with other people going places. The site actively fosters collusive cooperation among travelers. My blood boils! Grr!

Two problems with this, if you live in Ontario.

First, Ontario strictly regulates ridesharing. Ontario riders can carpool only to and from work; must ride with the same person every day; may pay that person for their trouble only once a week; may not cross municipal boundaries during the ride; etcetera.

Second, Ontario bus companies are huge fans of these regulations. So the bus companies sued PickupPal. And the Ontario courts have just fined PickupPal over $11,000 Canadian dollars for making possible a $60 ride from Toronto to Montreal. PickupPal must also somehow enforce the Toronto regulations on their website.

Finally, the world is safe again for Ontario bus service.

This is Common Sense. I’m Paul Jacob.

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

Obaminableonomics

There’s a new school of economic thought: Obaminableonomics.

Come to think of it, though, maybe there’s nothing so very new about this Obaminable economic school — after all, it just combines typical big-​government redistribution with a few nominal nods in the direction of fiscal self-discipline.

You can get a concise idea of the Obaminable approach to economics from a headline that floated into my In Box the other day. I quote: “Obama Promotes Fiscal Restraint, Big Spending.” According to the reporter, the president-​elect “wants to project fiscal restraint even as his economic team assembles a massive recovery package that could cost several hundred billion dollars.”

Huh?

Well, President-​Elect Barack Obama thinks he erases the contradiction by contrasting his short-​term plans with his long-​term plans. Short-​term, government must spend like there’s no tomorrow, because this is what we allegedly need to see happening if we are to regain confidence in our future. Yes, we absolutely must see an endless parade of babbling bureaucrats going hog-​wild with taxpayer dollars on a wide array of ludicrous, unworkable schemes. Absolutely.

After that, though, will come the line-​by-​line budget review, the ruthless cutting out of bloat.

Well, any alcoholic will tell you that he can stop whenever he likes. Just so, our rulers keep putting off the restraint of fiscal restraint.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

What About the Roads?

The classic political study Crisis and Leviathan, by Robert Higgs, argues that the state often exploits the sense of urgency that attends a crisis to enlarge itself as the way to “solve” the problem — even when government itself created the problem.

The federal government’s profligate credit policies, which fueled the now-​busted housing bubble, come to mind. The government’s “solution” here is to lard some failed companies with subsidies and nationalize others. Why? Oh, no time to think, just hurry up and do it before investors get even more jittery.

Sometimes, though, officials scrambling for a solution consider solutions that might actually help. Crumbling infrastructure is on the minds of many city and state politicians. But the tough economy is also on their minds. Many are therefore more open these days to the idea of private financing of roads
and bridges. As Norman Mineta, former transportation secretary, puts it, ”Budget gaps are starting to increase the viability of public-​private partnerships.”

I don’t know about the “partnership” part of it. Too often such ”partnerships” mean that a business is prevented from making good decisions, or is protected from the costs of bad decisions.

If we’re going to delegate a train or road to a private company, let them take full responsibility for it. Companies that succeed will get us from here to there just fine. And taxpayers won’t have to cough up money for the ones that fail.

This is Common Sense. I’m Paul Jacob.