Category: too much government

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porkbarrel politics subsidy too much government

Up-​to-​Date in Kansas City?

META, Data Center, Kansas

Eight-​hundred million bucks. 

That’s the investment that “Meta” — the umbrella outfit that owns Facebook, Instagram and WhatsApp — has agreed to invest in a patch of land in Kansas City’s Northland. The plan is to build a data center at an 882-​acred development site. 

“Political leaders who gathered at Union Station heralded the news as a major development for Kansas City and the state.” This private investment “would far surpass the scale of recent projects in the region … said Missouri Gov. Mike Parson,” The Kansas City Star relates.

But there’s more.

“Meta spokeswoman Melanie Roe said the company could invest as much as $40 billion at the site in land acquisition, construction, and development of a larger data center.” This is to be a “long term partnership.”

Make that a Big Business/​Big Government partnership. The biggest ever, perhaps.

The Kansas City Council had unanimously approved a development plan for the site last April, with data centers there enabled to access to more than $8 billion in local tax incentives. “Incentive watchdog group Good Jobs First says such an incentive award would be the largest ever in American history,” The Kansas City Star explains.

Take it as a word of caution. This is not laissez faire capitalism. This is not “the free market.” It is favoritism. It unites big business and big government.

And even as an investment in future taxes — which is the ostensible justification for the subsidies — the data complex is slated to employ about a hundred workers.

Politicians don’t make the best investors. But they do make easy marks for big corporations.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets too much government

Production, It’s a Gas

Elon Musk

Is this a news story?

“Electric-​car baron Elon Musk calls for increasing U.S. oil and gas [production] to combat Russia.”

It’s news because of Russia’s invasion of Ukraine (and because gas has gotten awfully expensive) and because Musk is a major industrial figure. But a businessman calling for deregulation of an industry — is that also headline-​worthy stuff?

Unfortunately, yes, given how businessmen so often want liberty for themselves along with ever-​expanding restrictions for competitors (or the same restrictions for everyone as long as competitors end up getting hurt more).

I want a world in which we can make no sense of the word “but” in this opening paragraph:

“Tesla may be the world’s leading seller of plug-​in electric vehicles, but CEO Elon Musk wants the U.S. oil-​and-​gas industry to ramp up production.” 

“But”?

Musk’s statement-​by-​tweet doesn’t help: “Hate to say it, but we need to increase oil & gas output immediately. Extraordinary times demand extraordinary measures.”

These words are not super-​clear about what Elon Musk believes the government’s attitude should be toward markets during non-extraordinary times. War or no war, government policies safeguarding markets should not be resorted to only as emergency measures. No matter how much some may welcome sustained efforts to hobble an industry.

It’s rare that our businessmen clearly enunciate the principles of free enterprise that they are thought themselves to practice. We’re lucky if we get a tendency in that direction. 

I guess that’s better, at least, than a fervent statism that seeks to wipe out all economic freedom all the time.

This is Common Sense. I’m Paul Jacob.

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deficits and debt free trade & free markets national politics & policies too much government

Inflation Evasion…Depression

consumer price index, inflation

Going into the lockdowns and bailouts, a consensus of politicians and their court wizards, the economists, had belittled the specter of inflation.

Nowadays, when folks use the term “inflation,” they really mean upward movement on the consumer price index (CPI). Some economists, who have a sense of history,* reserve the word not for price level increases, but for increases in the supply of money. And the two concepts are tightly linked. 

But a whole lot of people seek to blame CPI rate increases on anything but monetary policy, as Veronique de Rugy notes in an article at The American Spectator.

“Theories for why we shouldn’t worry abounded,” de Rugy writes. “It was caused by a base-​effect price increase, supply-​chain restraints, a drought in Taiwan — everything but the Fed’s expansionary policies and Congress’ overspending, in part because some of these experts had cheered for these actions all along.”

And then inflation came back.

Big time.

While expressing some humility and an unwillingness to make predictions, de Rugy insists that “the amount of money printed, borrowed, and spent during the last few years led to a one-​time price level rise, and we may have a way to go until we are done.” 

She also insists that the Pollyanna phrase “transitory inflation” is no comfort: “inflation was always going to be transitory. Even the inflation of the 1970s ended in the ’80s. What mattered is whether transitory inflation meant a few weeks, months, or years.”

And, I cautiously add, how de-​stabilizing it is. Consumers rightly worry about rising prices, but inflation doesn’t hit all sectors the same. Credit expansion leads to imbalances that are hard to correct. 

And the correction is “depression.”

This is Common Sense. I’m Paul Jacob.

* Including the history of their own discipline. Readers of Austrian economists such asF.A. Hayek get a better sense of past debates than from other economists.

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general freedom international affairs media and media people nannyism too much government

Government Under Siege

Ottawa, truckers, covid, protest

“This city is under siege!”

“This is a threat to our democracy!”

“There’s a nationwide insurrection!”

“This is madness!”

This is not a recording from January 6th and, no, it’s not happening here in these United States. Look north. Those are the words of Ottawa’s Police Chief Peter Sloly.

Sloly was addressing what The Washington Post reports are “big rigs and other vehicles — emblazoned with signs blasting [Canadian Prime Minister Justin] Trudeau in obscene language and reading ‘Mandate Freedom,’” adding that an estimated “5,000 people and at least a thousand tractor-​trailers and other vehicles clogged the streets of Ottawa over the weekend.” 

“The situation at this point is completely out of control,” Ottawa’s mayor told a radio audience, “because the individuals with the protest are calling the shots.”

“It’s not a protest anymore,” argues Ontario Premier Doug Ford. “It’s become an occupation.”

Meanwhile, this anti-​vax-​mandate effort spurred by these truckers is spreading across the country, including “the blockade of an important U.S.-Canada border crossing” in Alberta.

I can certainly see how these government officials might feel they are under siege, with an occupying force impinging on their freedom to act as they wish. Not a good feeling at all.

But isn’t that the same feeling these truckers and others are experiencing? Aren’t they being occupied by a government that demands a measure of control over their bodies? Their very livelihoods? That is willing to block their ability to earn a living to gain that control?

Public officials might ask themselves how come so many people are so upset that it looks like an “insurrection.”* 

And then consider their position as public servants, that they may be in the wrong. Not the protesters.

This is Common Sense. I’m Paul Jacob.

* The Post story mentioned only four arrests made so far in Ottawa, none for insurrection.

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education and schooling general freedom too much government

The Young and the Unmasked

your rulers, your child, masks, Covid

It wouldn’t surprise me if Tiffany McHugh, former director of the Foothills Christian Church Preschool in San Diego, wishes now that she had been running a preschool in a slack state like Florida.

Florida doesn’t penalize such malefaction.

It doesn’t even prohibit it. Yes, things have gotten pretty bad in states like Florida. They let the two-​year-​olds breathe: unthinkable! The policymakers in these states apparently labor under the presumption that the COVID-​19 pandemic is not Bubonic Plague 2.0 and that, for kids, the risk of serious COVID-​19 disease has always been very low.

Well, in California they take these risks seriously!!!!!!!

The Golden State’s Department of Social Services has shut down the preschool McHugh was directing and pulled her license. The problem? She couldn’t get the tykes to stay masked.

“There were a lot of children who were just too young to wear masks,” McHugh confesses,“they pull them off. It’s really difficult.”

This makes it sound as if she didn’t even try handcuffing the kids so that they could not remove their masks. Talk about dereliction of duty.

Other area preschools have not been similarly targeted, and so many suspect selective enforcement. But hold on. When you’re going after flouters of regulations, somebody has to be brought to book first. 

Rest assured, all other San Diego and California preschools will be outlawed momentarily.

McHugh’s school has appealed the decision to ban her forlife from working with children. The hearing will be held on February 11.

This is Common Sense. I’m Paul Jacob.

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national politics & policies too much government

No Federal Solution

Joe Biden, covid, masks, vaccines, federal, state

In a virtual meeting, online, the National Governors Association talked with President Joseph R. Biden, Jr., last week. The biggest issue? COVID.

About COVID tests, “I wish I had thought about ordering a half a billion two months ago,” Mr. Biden confessed. 

While serious people are taking this seriously, blah blah, the truth may be that tests do more harm than good. There have always been problems with the tests: too many false positives; they induce panics at mere “case” levels, thus feeding propaganda and unworkable government “solutions” to the “crisis.”

About which Biden now admits he’s got … nothing. 

Having run against Donald Trump and his alleged lack of a plan, boasting how the Democrats would conquer COVID, Biden now declares defeat: “Look, there is no federal solution.

“This gets solved at a state level,” acknowledged the president, “. . . and it ultimately gets down to where the rubber meets the road and that’s where the patient is in need of help, or preventing the need for help.”

That last phrase is odd. 

“Preventing the need for help” sounds like he might mean patients taking control of their health care and their own immune systems. Could Mr. Biden be alluding to Vitamin D, Vitamin K, zinc, HCQ, Ivermectin, and many other immune system boosters and virus blockers?

Or Biden could merely be fumbling. He’s made much of the Omicron Variant, including at the governors’ meeting. But instead of addressing the actual trend of the latest iteration, politicians and propagandists push the idea that Omicron is deadly, when the evidence is clear: it is much less deadly than previous variants. 

The great danger of COVID remains the governmental response.

Including, alas, Biden’s.

This is Common Sense. I’m Paul Jacob.

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