Category: too much government

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insider corruption national politics & policies too much government

S.O.P. at the IRS

Remember the IRS scandal? I mean the one about how the Internal Revenue Service has been monkey-wrenching the applications for tax-exempt status submitted by politically non-leftward organizations (Tax Prof Blog has the latest).

But politically motivated clogging of an application process is just one way that the IRS abuses us. Victims of its normal forms of abuse have also been coming forward lately, seeing that they now have at least a temporarily receptive audience.

One such is Jeffrey Black, former employee of the Federal Air Marshal Service, who has long tried to fix the problems he sees with the Air Marshals. It seems that not every colleague appreciates it.

After retiring in 2010, Black appeared in a documentary (“Please Remove Your Shoes”) about the pseudo-security measures we have to endure at the airport. Why not? He couldn’t be fired any more, right? But the day the documentary premiered — “almost to the hour” — the IRS notified him that he was being audited. It also slapped a lien on his home.

In the end, their investigation turned up $480 that Black owed the IRS, which he paid; and $8,300 that the IRS owed Black, which IRS didn’t pay.

“Being a veteran of extensive retaliation . . . I am not surprised about this,” he told CNN. “It is basically the only way they can still . . . retaliate against me after I retired.”

The IRS denies that audits are ever politically motivated.

They deny many things.

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption political challengers too much government

Protesting “Capitalism”?

While Americans appear mildly unsettled or perhaps “ticked off” about recent government revelations, elsewhere in the world citizens move from “unease” to “unrest” and outright “protest.”

The protests that erupted first in Turkey and now in Brazil and elsewhere are filled with the ranks of the young, not a few of whom have noticed something: They are getting a raw deal.

Many of their issues are meat-and-potatoes: lack of jobs, burdensome student debts and, in Brazil, a bus fare rate increase made ugly in the context of cost overruns in taxpayer support for the World Cup and Olympics.

The young Turks protested, at first modestly, over planning for a park, but a harsh police crackdown led to more widespread marches, sit-ins, and demonstrations — which now often bring up questions of the current administration’s repressive anti-modernist, anti-freedom agenda.

This more heroic theme resonates elsewhere, too.

In Bulgaria the issue most protested appears to be police brutality and the general spirit of repression. In Latin America, opposition to corruption has moved from old stand-by to vital question of the day.

The saddest statement I heard was this appraisal, hailing from the BBC, of the general climate: “today capitalism is becoming identified with the rule of unaccountable elites, lack of effective democratic accountability, and repressive policing.”

Well, that’s not laissez faire capitalism that’s failed, but crony capitalism. Laissez faire’s truly free markets require a rule of law, the suppression of government corruption, and effective public accountability.

But that’s not what’s dominant. America itself serves, today, not as a beacon of liberty but of institutional control, of crony capitalism.

We need to protest that here, again, in the U.S.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Texas vs. No-Growth Coasts

Governments must rely upon profitable businesses. Without them, government has next to nothing.

And yet “next to nothing” is what governments can do to best help businesses succeed.

Thank Texas Governor Rick Perry for these thoughts . . . and Matthew Yglesias, who commented on Perry’s recent “nuclear-strength” video promotion, inviting businesses to leave places like New York and locate themselves in Texas, which has fewer regulations and no income tax. The ad claims Texas is “big for business.” Yglesias quibbles:

If New York was a terrible place to live, work, and do business, then it would be cheap to live in New York. But New York is not cheap. It’s not Detroit. It’s not even average. It’s, in fact, hellishly expensive. If New York emulated Texas and eliminated its income tax, rich people would bid up the finite supply of New York City land at an even more furious rate—the city wouldn’t see Houston or Dallas growth rates.

I’m no economist, but I have quibbles with Yglesias’s critique. New York is expensive, yes. But the cause of the expense isn’t just that people bid up housing and services. It’s expensive in no small part as a result of all those regulations, especially courtesy of one regulation in particular: rent control. Get rid of rent control and the city income tax? Watch housing grow.

And growth, Yglesias rightly points out, is what’s really in Texas’s favor. Texan low-impact government policies favor growth, while “the residents and politicians” of blue-state/beach-front states, though “liberal,” have, in fact, “become exceptionally small-c conservative and change averse.” Because they do too much, allegedly to “help.” But mostly to gentrify.

This is Common Sense. I’m Paul Jacob.

Categories
general freedom government transparency national politics & policies too much government

Google or Government?

The ugly fact: our government is capturing all of our phone records. It reportedly is grabbing our credit card information, as well tracking us online. The latest “defense” of this practice? Such mined data’s no worse than the information we voluntarily provide Google or Facebook or other big, bad corporations.

This after-the-fact rationalization comes up short, however, missing that crucial “voluntary” aspect, whereby we get to choose what information we give to a corporation, including providing none at all. That’s not how the National Security Agency works. The NSA just grabs our information without our consent.

What other possible differences might there be?

There’s the crucial matter of degree, too. “The government possesses the ultimate executive power,” argued The Atlantic’s Marc Ambinder, author of Deep State, appearing on “All In with Chris Hayes” on MSNBC. “I mean, it can jail you, it can detain you, it can kill you.”

“Even though the Obama campaign and Apple . . . know more about me than perhaps members of my family, and probably the government,” Ambinder added, “what the government can do with that information is much different than what a corporation can do. They can make me buy something or vote for someone; the government can imprison me.”

Mr. Ambinder is absolutely correct . . . except for his ridiculous statement that campaigns can “make” you vote for their candidate or that corporations can “make” you buy their products. The crucial difference is between the arts of persuasion (including tempting, cajoling, nudging) on the one hand, and sheer homicidal force coupled with kleptomaniacal thievery on the other.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture national politics & policies too much government

A Matter of Trust

You don’t trust President Barack Obama?

No faith in the massive federal bureaucracy? Do you lack confidence in Congress representing your interests? How much do you trust the federal courts that handle secret requests from the Department of Justice . . .and then issue secret decisions based on the judge’s secret interpretation of the law?

Be advised: President Obama finds “your lack of faith disturbing.”

“If people can’t trust not only the executive branch, but also don’t trust Congress and don’t trust federal judges to make sure we’re abiding by the Constitution, due process, and rule of law,” Obama told reporters in response to the public uproar to a leak of classified information suggesting that the detailed phone records of every American have been seized by the National Security Agency, “then we’re going to have some problems here.”

Agreed. Problems galore. The morning paper reads like a dystopian novel.

Are we really supposed to feel protected by a federal judge in a secret court wherein only the government is represented?

Or represented by Congress, for goodness sake?! Only a few congressmen are told, and those sworn to secrecy.

The Obama Administration incredibly calls this set-up “an unprecedented degree of accountability and transparency.”

There are compelling national security interests, upon which our rights must be balanced, the president explains. But in our constitutional system, as I argued at Townhall.com yesterday, there is no more compelling national interest than that the government fully obey the Fourth Amendment — and the entire document, please.

Thank you.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Biting the Apple

Apple is on trial for refusing to pretend that the company has done something wrong.

In 2009, Apple invited five major publishers to sell e-books through the forthcoming iPad, on the basis of the “agency model.” The publishers would set the prices, Apple would take a 30% cut. Apple also required that the e-books not be sold more cheaply elsewhere.

The publishers were happy to agree because Amazon had been buying new e-books wholesale and steeply discounting them, sometimes at a loss to itself, in order to sell them at $9.99. In the eyes of the publishers, this price seemed too low a benchmark. Apple’s deal gave them new clout in negotiating with Amazon.

The government says average book prices rose in the wake of this “conspiracy.” Apple says prices declined. It’s irrelevant.

To charge a price that some persons dislike violates nobody’s rights. Nor does stipulating terms of contract that a prospective partner dislikes and may reject. Anti-trust law has nothing to do with justice. It’s a bludgeon that some businesses — in conspiracy with the government — use to thwack competitors.

No violation of anyone’s rights has even been claimed in this case, let alone established. Yet five innocent parties have been forced to pay tens of millions to the government and accede to curtailment of their right to contract. And Apple, having refused to be bullied, must defend itself in court.

That’s the crime, and government officials are the ones committing it.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Fed Up

No one is really fit to “run the economy.” The pretense of the ability can be fun to watch, amongst economists as well as pundits. But because they’re doing the impossible, what they say can lurch from wisdom to utter folly in the space of a paragraph.

Neil Irwin, at the Washington Post, admits that the Federal Reserve’s current policy of pumping more and more money into the economy may finally be working, “but that may not be a good thing.”

I suspect he’s right.

But not for the right reason.

Irwin notes that the Fed “in September introduced a policy meant to boost housing and stock prices, and now, nine months later, housing prices and stock prices have risen quite a bit. Enough, indeed, to (so far) offset the impact of higher taxes that went into effect Jan. 1 and federal spending cuts that took effect March 1.” But the problem, he goes on, “is that these channels through which monetary policy affects the economy tend to offer the most direct benefits to those who already have high incomes and high levels of wealth.”

Irwin sees the problem as inequality: the policy helps the rich get richer and does little for the poor. His solution is fiscal policy that throws more money directly at the poor.

Yet there’s not much reason to believe his preferred giveaway would actually “stimulate” the economy. The Fed’s current policy, on the other hand, may stimulate, a bit, but will lead to a new boom-bust cycle.

The poor need jobs; the rich need to invest. But all this requires a degree of stability and trust and sustainable prices — not government-knows-best tinkering with the money supply. Or yet more deficit spending.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Doctoring, Priced

Any number of economists will tell you that medicine just has to be different from other goods and services provided on the market. They will offer elaborate theories to explain, for instance, why competitive markets won’t work for health care, and why more government is necessary, and why, in fact, today’s hospitals don’t publish their prices.

I see this mainstream “explanation” as mere apologetics, designed to justify evermore government. The truth is that medicine is “different” because legislation — at local, state, and federal levels — has made the industry different. It’s an accident of history, not something “natural” to this particular market.

But, as Obamacare further consolidates medicine under the government rubric, there appear some daring examples of non-compliance. The latest is from Dr. Michael Ciampi, of South Portland, Maine, whose family practice group has stopped accepting insurance payments of any kind, public or private.

Posting its prices on the Web, Ciampi Family Practice claims to offer substantial savings over other providers. And other benefits, too, including house calls:

Because we no longer contract with insurance companies, Medicare or Medicaid, we can be more flexible and innovative. We use technology when it helps us take better care of patients, but we refuse to use it for technology’s sake. We will not spend our visit staring at a computer screen instead of looking at you. We can also spend more time with patients than the typical provider in a “big box” medical practice. . . . We do not have physician assistants or nurse practitioners.

Ciampi is not the only (or biggest) provider to do this.

Could competition just erupt without a government-provided “solution”? Could “the market” provide the leadership medicine needs now?

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies too much government

Regulating Protest

How did our founders manage to establish a republic committed to free speech and the rights of the individual without a Federal Election Commission?

Not only did the Sons of Liberty and other patriots lack a functioning FEC to protect them from “big-money interests,” many of the political communications of the founding era, including works as consequential as The Federalist Papers, were put forth anonymously. Horrors!

Consider organizing like-minded people during colonial times: No TV, radio, the Internet, smart phones . . . and sans, too, the Internal Revenue Service, strategically blocking them from creating non-profit groups that “criticize how the country is run.”

Which brings up the sorry case of Lois G. Lerner, head of the IRS’s exempt organizations division, now mired in the muck of controversy over unequal treatment of non-profit organizations. She expressed her innocence in the whole affair, but then took the Fifth, refusing to testify.

Ms. Lerner’s now on paid leave. That’ll learn ’er.

I bumped into her back in the 1990s, while I headed U.S. Term Limits and she led the FEC’s enforcement division, which was targeting conservative and libertarian groups. The FEC was never able to prove we did anything wrong, but did cost us plenty of time and money defending against their assault.

What sparked the FEC’s action, then, was incumbent Congressman Mike Synar’s complaint after we informed the people of Oklahoma that Synar opposed term limits. He lost in the Democratic Party primary . . . to a guy who spent less than $3,000.

Yes, that’s the sort of speech the folks in Washington want to regulate.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture tax policy too much government

Customer Service?

It was no fun to watch Acting IRS head Steve Miller testify before the House Ways and Means Committee last week. Miller simply had no real explanation for the troubling actions at IRS.

Even his terminology induced cringes. Miller’s mea culpa was for “horrific customer service.”

Customer service? That’s a stretch.

A customer holds a position of honor in a free society. Businesses spend billions on advertising — just to gain our favor. We have the power to make a business succeed or fail according to our decisions.

We don’t have to be well connected or part of the political or social elite to share this power. The most ordinary of customers can have a powerful impact. When I was a kid, customers in my state helped build a small business, Wal-Mart, into the envy of the retail world.  In 1956, ordinary bus riders in Montgomery, Alabama, used their “buying power” to help change the world.

As customers, we make demands. We make sure we’re satisfied. Sometimes we negotiate price; when no negotiation is possible and we don’t like the deal, we walk away. We have a choice. We decide.

Does this same type of empowerment exist when dealing with folks at the IRS?

Not so much. They tell us the price. We submit or go to jail. That’s no customer.

Cowering serf might sadly serve as the more apt moniker.

As the IRS grows bigger and more intrusive each year, and as its agents shake us down for ever larger sums, we should at least be able to keep the word “customer” away from them.

This is Common Sense. I’m Paul Jacob.