Category: too much government

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free trade & free markets too much government

Unintended Consequences!!!

Here’s a revelation: A story headlined, “Bailout funds being spent in ways Congress never foresaw.”

What? Our omniscient congressmen failed to forecast the fate of their latest multifarious munificence?

You know, whenever I myself spend hundreds of billions on random questionable socialistic takeovers of the economy, I always demand an itemized account of exactly what I will get in return. Always.

It seems that the $700 billion just authorized by Congress is not only being spent on buying up troubled mortgages but is changing into a “broader bailout of all sorts of troubled businesses.” Some banks used the money to buy other banks instead of to “spur more lending.” And other recipients are paying dividends to stockholders.

Apparently, various central planners of our economy expected those receiving the money to use it in more publicly spirited fashion.

Such caviling ignores the real problem, which is more basic. You can’t cure the effects of gignormous debt creation and gignormous subsidizing of unwise enterprises with even more gignormous debt creation and gignormous subsidizing.

If massive intervention in markets caused the economy to curdle, roll back the massive intervention. Let investors take risks with their own money.

But don’t get drunk all over again, faster and harder, and expect that this time there won’t be any hangover.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets insider corruption nannyism too much government

The Boomers’ Bust

Remember when Bill Clinton ascended to the presidency? There were hurrahs. At last the Baby Boom generation had its own president!

We’ve gone through another Baby Boom president, and now we — and I’m talkin’ ’bout my generation, here — have our very own economic bust. Call it the Boomers’ Bust.

John Kass, writing in the Chicago Tribune, notes how different things look for Boomers, now. “In the ’70s,” Kass writes, “the slogan was ‘Do your own thing.” But today’s slogan might be ‘Washington, please save us.’”

Kass attributes some of the difference merely to age. When we were young, we took risks. Now that we’re older, we simply want to keep our houses and our cars and our TV sets, and our retirement plans.

The ominous marker in all this is the transfer of power. In our desires, demands, for security, we’ve given up a lot. Kass says we are giving up “liberty for all” and exchanging it with “power in the hands of a few.”

We can see it is who gains most: people and corporations on the inside track. But, as Kass points out, look who loses: “The casualty will be the entrepreneurs, those on the outside.… Such men and women will be on the outside for decades now.”

Since it was entrepreneurs who accomplished the most enduring good during the last 40 years, this will be tragic.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies Tenth Amendment federalism too much government

Unbefreakinlievable

Now what?

Well, now the governors are going to Washington to beg for bailouts. New York Governor Paterson and New Jersey Governor Corzine have schlepped their way up to the Hill to explain that they are “cutting all [they] can” from their bloated budgets, and to demand some “relief.”

I don’t believe that the notoriously corrupt governments of New York and New Jersey have pared their budgets to the bone. Or that the only way to cut another dollar is to throw some little old lady out onto the street.

I also don’t believe that the federal government has some magical way of getting money that state governments don’t have. It all comes from the same group of us taxpayers. Unless these governors are talking about taking cash from other states, where else would the money come from? Where but out of thin air — borrowing plus the trusty old printing press?

The feds are wearing the same blinkers as these gubernatorial guys. For example, the wizards at the Federal Reserve are struggling to bring interest rates to zero — as if cheap credit in the past had nothing to do with all the misbegotten easy mortgage loans spawning the present crisis.

Now, I put it to you: If fiscal irresponsibility can be increased from mammoth to infinity, will that, at last, solve the problem? If the Fed were to drop-​ship crates of cash and credit cards onto every neighborhood in America, will that, at last, solve the problem?

Unbefreakinlievable.

We need some Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Socialism Fails … in Hawaii

We may have dismal years ahead of us. Democrats ruling Congress while Barack Obama, Mr. Redistributionist, will preside over an attempt to move in lurch step to massive new amounts of spending and taxes.

I write these words before the election, so maybe by the time you hear them, the electorate will have proved me wrong. But, hey: Under a McCain administration the federales would still not likely shy away from big government insanity.

There is, however, hope. When wishful thinking slams head-​on into practical reality, sometimes we take stock. Sometimes we even say things like, “Know what? This is dumb and destructive. Let’s stop.”

We saw this in the 1980s and ’90s with the fall of the Berlin Wall, the collapse of the Soviet empire, and the turn toward freer markets in many former Soviet or other tyrannies (and near-​tyrannies) around in the world.

And we’ve just seen an example here in the states, in Hawaii. There the state is ending its universal health care plan for children. Why? Because it was getting too expensive.

A government doctor in Hawaii named Kenny Fink reports, “People who were already able to afford health care began to stop paying for it so they could get it for free.” He adds that that this was not the purpose.

Of course not. Socialism is never supposed to kill economic incentives and self-​responsibility. It just always does.

This is Common Sense. I’m Paul Jacob.

Categories
property rights too much government

Light Rail, Too Heavy for Developers

American city planners tend to obsess over trains. Though not nearly as economical as buses, light rail trains are regarded as the gold standard in public transportation.

But ten years after Portland established its westside line, just how bad an investment light rail can be is becoming clear. So argues John A. Charles, Jr., president of the Cascade Policy Institute.

The area’s light rail system is called MAX. The westside line put up in 1998 maxed out at $963 million. Taxpayers nationwide footed nearly three-​quarters of the bill, which went through over the protests of the Federal Transit Authority.

The FTA didn’t like the route, because it was run through a lot of empty area. Why? Because planners hoped that developers would build high-​density housing along the line, thus justifying the route as time went on. It was a grand experiment in metropolitan planning.

Metro planners then cajoled and forced various city governments to redo their zoning laws to make the high-​density developments more train-​dependent. They specified an extremely scarce supply of parking.

And the developers? They stayed away in droves. As a landowner put it, “it’s never been developed” because of that very “mandated lack of parking.”

Government geniuses might think they can force people into the types of communities that people don’t want, like people were lab rats. Peculiar thing is, folks just naively thinking they are free, tend not to jump aboard that train … so to speak.

This is Common Sense. I’m Paul Jacob.

Categories
too much government

Microcosm Out West

The Wahkiakum County Eagle covers one of the smallest counties in Washington state. Last issue’s big story was about the county’s finances.

The large picture on the front page shows county officials conferring how to lay off employees. A smaller picture features a note pinned to a wall. The note says “By October 7th the County Debt is $1.4 million.” Then, in bigger letters, it says “Do Something” with the Treasurer’s signature below.

For a county with less than 4,000 citizens to rack up a multi-​million dollar debt is no small thing.

The commissioners gave notice to discontinue the county extension agreement with the state’s cow college. A bitter pill for many, since this was the first county west of the Mississippi to institute such an office.

Weirdly, the commissioners saw this coming. Revenues have been falling for some time. Yet a few years ago they bought the failing local medical clinic. A picture lower on the front page welcomes a new physician’s assistant. The hidden story here is that since the county has owned the clinic it has been costing the county at least a quarter a million per year.

Can you say “microcosm”? The microcosm — small universe — is this little county, faltering because it took over a medical delivery system.

The lesson for America, our macrocosm: Don’t take over health care. We can’t afford another huge expense on the books.

This is Common Sense. I’m Paul Jacob.