Category: too much government

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ideological culture national politics & policies too much government

Food Stamp Stimulus

Yesterday, we discussed the Pennsylvania Department of Public Welfare’s new rule testing the financial assets of food stamp recipients to determine whether or not they qualify for the benefit.

Secretary of Agriculture Tom Vilsack recently traveled to the Keystone State to caution against restricting access to food stamps — officially known as the Supplemental Nutrition Assistance Program (SNAP) — on the basis of a person’s financial assets. He contended that implementing the means test would cost money and that it wouldn’t “save the Commonwealth a single dime.”Tom Vilsack points a finger

State officials suggest Secretary Vilsack is way off on the cost of implementation. Moreover, it seems odd to argue there will be no savings at a new conference stuffed full of shrill warnings that too many poor people would lose assistance.

But two of Vilsack’s other arguments really caught my attention. First, he claimed the SNAP program is an “economic extender,” which creates agricultural jobs and positions at grocery stores and convenience marts. Second, he asserted that for each food stamp dollar provided by government an additional $1.80 to $1.90 in economic activity is generated.

In other words, food stamps stimulate the economy. It’s almost as if, even if there were no folks down on their luck, we’d still want to spread around some food stamp money for all the good it does.

Vilsack made absolutely no mention of the economic activity interrupted when government took that same dollar from the person who earned it.

This is Common Sense. I’m Paul Jacob.

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ideological culture individual achievement too much government

Skipping the Political Pomp

Tim Thomas is the All-Star goaltender for the Boston Bruins, winners of the National Hockey League’s 2011 Stanley Cup — which “was won by defense as much as by offense,” President Barack Obama said yesterday at a White House event honoring the team:

Tim Thomas posted two shutouts in the Stanley Cup finals and set an all-time record for saves in the postseason, and he also earned the honor of being only the second American ever to be recognized as the Stanley Cup playoffs MVP.

But Thomas wasn’t there to hear the president’s praise. He chose not to attend, explaining cogently in a statement:
Tim Thomas

I believe the Federal government has grown out of control, threatening the Rights, Liberties, and Property of the People. . . . This is in direct opposition to the Constitution and the Founding Fathers vision for the Federal government.

Because I believe this, today I exercised my right as a Free Citizen, and did not visit the White House. This was not about politics or party, as in my opinion both parties are responsible for the situation we are in as a country.

Boston Bruins President Cam Neely explained that Thomas’s “views certainly do not reflect those of . . . the Bruins organization.”

Sportswriter Joe McDonald charged that “when the president of the United States invites you . . . you go and represent the team,” and that “Thomas instead chose to represent himself.”

Yes, as Thomas admitted: “This was about a choice I had to make as an INDIVIDUAL.”

His quiet, conscientious choice to stay home — no news conference or interviews — was heard loud and clear by me.

It’s Common Sense. I’m Paul Jacob.

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too much government video

Video: No Child Left Behind

It’s been ten years. Federal government intervention into America’s local-and-state-run public schools has spent a lot of money, but not resulted in much good, down at the student level:

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

Ups and Downs

Inflationism is the ideology of increasing the money supply to spur economic activity and “growth.” In the 19th century, economists were generally against it, though certain “innovators” (cranks) thought that increasing the supply of money would “increase aggregate demand” with no bad repercussions. “Cross of gold” kind of nonsense; “free silver” idiocy.

In the 20th century, alas, inflationism went mainstream.

Today, a few respectable economists — high-profilers like the New York Times’s Paul Krugman and U.C. Berkeley’s Brad DeLong, for example — embrace inflationism. Occasionally their arguments sound sophisticated, but all are just warmed-over rehashes of very old errors.

It’s the economic equivalent of the “perpetual motion machine”: the eternal quest to get something for nothing, progress on the cheap. It inevitably fails — but only after fooling people by “working” for a while.

Reason’s Tim Cavanaugh, discussing declining housing prices, notes that “it’s becoming harder for the Fed, HUD, the Treasury Department and the National Association of Realtors to pretend the 25-year real estate inflation was anything but a $15 trillion rip-off.” He welcomes the deflation of housing prices. The idea that one’s house should increase in value by always increasing in price — that’s really just a recipe for social disaster. It endured as long as it did only “through government subsidized debt.”

Thank Congress; thank their Fannie and their Freddie; thank the inflationist Fed.

“Creating” money and loosening credit tends to nudge up prices . . . but not all prices equally. It signals people to over-invest in certain sectors, often real estate. This creates a sector boom . . . that then must “bust.”

The alternative? The honesty of sound money.

This is Common Sense. I’m Paul Jacob.

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crime and punishment too much government

Government and Pain

Siobhan Reynolds died last weekend in a plane crash. I learned about this from Radley Balko, who reviewed Ms. Reynolds’s crusade at The Agitator. Her story is worth remembering.

Sean Greenwood, her former husband, suffered from chronic headaches and a connective tissue disorder. Unfortunately, pain management was not taken very seriously by doctors in those days, and the federal government made matters far worse by treating doctors who prescribed pain medication as “pushers” rather than legitimate healers. In The Chilling Effect, a movie Ms. Reynolds produced about pain and policy regarding it, she details Greenwood’s travails, and other’s. It’s a harrowing story, and the government doesn’t come out looking very good.

Ms. Reynolds’s main effort centered on the Pain Relief Network, which she organized. Her mission was to defend those doctors whom she thought were being unjustly harassed by the drug warriors. Specifically, she defended doctors who engaged in high-dose opioid therapy, a course Mr. Greenwood and other patients found to offer some relief. As Balko puts it, she was not without success, getting “some sentences overturned, and hooked accused doctors up with attorneys who know the issue. ” Unfortunately, that’s likely why prosecutors went after her, and in another horrible misuse of sealed court proceedings, suppressed her organization and brought her close to ruin.

There’s an old phrase, “doctor knows best.” That’s obviously not always true, but it’s certainly the case that government does not know best. Especially about pain.

Though it surely causes a lot, adding to our suffering.

This is Common Sense. I’m Paul Jacob.

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general freedom ideological culture too much government

Two Decades Later

Twenty years ago yesterday, Mikhail Gorbachev resigned his position as head of the Soviet Union. It was a momentous occasion. It was also slightly comic, since he was resigning from a government that didn’t quite exist any longer.

December 25, 1991, was the last day of the Union of Soviet Socialist Republics.

It was the end of an age. The republics that had allied to form the original empire withdrew their support and formed a new union, the Commonwealth of Independent States.

This was one of history’s most momentous developments — or “undevelopments”?

The abandonment of Marxian communism — indeed, of state socialism — marked a turning point in ideological thought, too. Total government control of economic life had been a joke — a miserable, bitter joke — within the Soviet Union during its heyday. The news of its demonstrated unfeasibility shocked the protected sensibilities of the West’s intelligentsia, even eliciting startling confessions from professional socialist rah-rah boys like Robert Heilbroner, who publicly admitted that “Mises was right” about the unworkability of socialism.

For my first 30 years of life, the Cold War with the Soviet Union dominated the newspapers and our imaginations. And then it collapsed. Surprisingly quickly.

As Russians take to the streets to protest Putin’s revealed corruption, and as the United States of America itself buckles under the weight of its own “internal contradictions” — that is, the attempt to live on debt alone — the lesson becomes clear: The mighty can fall.

Radical change becomes possible, even where impregnability was previously assumed.

This is Common Sense. I’m Paul Jacob.

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too much government U.S. Constitution video

Video: What If?

Judge Andrew Napolitano has a few questions:

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

Water’s Value — in a Desert

It’s a dam shame.

There are plenty of private sector dams in the U.S., but the biggest are federal government projects, like those on the Columbia and Colorado rivers. These government-run outfits aren’t “free,” though. Indeed, they often prove to be good examples of typical government operations, providing special favors to some people at the expense of others.

Take the Hoover Dam, cherished as the nation’s highest symbol by MSNBC’s Rachel Maddow. The dam supplies water and electricity to Las Vegas, Nevada — at cut rate prices. A typical family in Las Vegas pays half for water what the same family would pay in Atlanta, Georgia, despite the fact that Atlanta gets 13 times more precipitation. These cheap rates have predictable consequences — overuse, for one. Which then leads local water authorities to foist on consumers some heavily intrusive conservation rules.

Andrew Wilson, in a report for the Property & Environment Research Center, writes that “A market-ready solution for Las Vegas water,” though not often talked about, would have far fewer negative consequences. And it’s not a difficult idea as such: “discard the historic cost-based pricing model and move instead to a pricing system that recognizes the scarcity value of water.”

Raising the prices for water and electricity to Las Vegas (and, for that matter, electricity to favored Bonneville Power Administration customers in the Pacific Northwest — along with many other federal government “business” products) would not only help forestall shortages and draconian lawmaking, it would be equitable. There’s no reason for the rest of the country to be, in effect, subsidizing Sin City.

Or any other city.

This is Common Sense. I’m Paul Jacob.

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too much government

Killing Them Softly

You probably associate methadone with heroin recovery clinics. Now it’s associated with state-run medicine. And iatrogenic fatalities.

Washington State’s “Washington Rx” is a medical assistance program that’s been in operation less than a decade, providing a drug discount card to those with low incomes and regulating prescriptions for Medicaid patients. The biggest challenge? Rising prescription drug prices — which places many drugs out of reach of poor and non-insured folks, and jeopardizes state finances with a financial hole to suck up ever-increasing amounts of money.

How to economize?

The board responsible for Washington Rx policy has pushed cheaper drugs. For pain medication, effective but expensive drugs like Oxycodone were swapped out for that old synthetic opioid, methadone, which is ultra-cheap. This saved the state millions.

Reasonable, eh?

Well, the problem with methadone is that it’s hard to control dose. The drug lingers in the body, builds up. It turns out to be rather easy to pass away during sleep of an accidental overdose. “Doctors,” a fascinating Seattle Times report informs us, “call it the silent death.”

Methadone overdose rates have radically increased in the Evergreen State, especially in poorer communities. Since Washington Rx set up shop, 2,173 Washingtonians have died of methadone overdose; an overwhelming majority of all overdose cases are from this one drug.

Programs in other states also list methadone as a preferred drug, and methadone overdoses are on the rise nationwide.

We are often told of the horrors of private insurers and their dastardly cost-cutting practices. But here’s a bureaucracy cutting costs. And effectively, too.

With a side-effect: killing people.

That’s hardly Common Sense. I’m Paul Jacob.

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free trade & free markets too much government

Pacé Richard Dreyfuss

In Suffolk County, Massachusetts, a new wrinkle on the old Producers-like scam hit the spotlight as a grand jury indicted Daniel Adams, a film impresario with several films under his belt, on ten counts larceny and false claims to the state in the financing of two movies set in the Cape Cod area, The Golden Boys (2008) and The Lightkeepers (2009).

According to Boston.com, Adams is charged with taking “advantage of a state incentive that allows film makers to apply for a tax credit equal to 25 percent of eligible production expenses. But prosecutors said he deceived the state about his expenses, claiming, for instance, that he paid [actor Richard] Dreyfuss $2.5 million, when in fact he paid him only $400,000.”

Adams has pleaded not guilty, and his legal standing is for a jury to decide.

More important is the general policy — funding movies is just not a legitimate use of tax money.

The only possibly legitimate argument for taxation is that the forcibly extracted money serves all the people it’s extracted from, by fulfilling very general, truly public interests. Making movies is not that.

One wag notes that “[t]he real crime is that a movie starring Richard Dreyfuss ever qualified for taxpayer funds in the first place.” That sounds almost like a criticism of Dreyfuss. Hey, I like the actor.

The point is that no film, either starring the greatest of greats or the least of unknowns, should be financed with conscripted money.

This is Common Sense. I’m Paul Jacob.