He’s never met a government monopoly he didn’t love, or a free market service he didn’t distrust or despise…
…but don’t worry, he’s not really a socialist!
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Category: free trade & free markets
The presidential campaign officially begins in Iowa. The Hawkeye State is also the nation’s corn-growing champion. Each year, Iowans sell 47 percent of that crop to produce ethanol, which accounts for a not-insignificant 8 percent of the state’s gross product.
Ethanol has friends in Washington, too. Congressional wizards have mandated that the gasoline pumped into cars throughout the land be diluted with ethanol — talk about a market guarantee!
At National Review, Jeremy Carl explains that “energy-policy experts of all political stripes can agree . . . mandates and subsidies to promote the use of corn ethanol (a policy first implemented by Jimmy Carter) are wasteful boondoggles that harm our environment and food supply while imposing billions of dollars of hidden costs on consumers. However, most energy-policy experts are not running for president in the Iowa caucuses.”
In 2008, both Sen. Hillary Clinton and Sen. John McCain flip-flopped to support the ethanol subsidies they had previously opposed.
But, this year, Sen. Ted Cruz and Sen. Rand Paul haven’t pandered along.
When Cruz rose to first place in the polls, Gov. Terry Branstad attacked, arguing, “It would be a big mistake for Iowa to support [Cruz]” because “his anti-renewable fuel stand . . . will cost us jobs, and will further reduce farm income . . .”
Yesterday, Fox News Sunday host Chris Wallace asked Cruz, “Why should [Iowa] voters side with you over the six-term governor of this state?”
“I think there should be no mandates and no subsidies whatsoever,” Cruz replied.
In today’s Iowa caucus, can Cruz overcome the forces of crony corn?
This is Common Sense. I’m Paul Jacob.
The modern age sports an amazing feature that used to be hard to detect, because so drawn out: a shorter-than-ever-before lag between the proposal of some popular inanity and its complete debunking.
It used to take seemingly forever for a bad idea to be shown up, either in argument or evidence. Now it can be a matter of days or even hours. Call it the Buncombe/Debunking Lagtime.
Take the Flint, Michigan, water fiasco.
When the story hit the news cycle, almost immediately the progressive meme machinery began cranking out slogans imposed upon visuals — jpegs and gifs — to the effect that the poisoned water was the result of Republican “austerity” or (even) “libertarian” policy.
Somehow a Democratic mayor was less to blame than a more distant Republican governor, but in the minds of knee-jerk partisans, common sense is not as important as an in-your-face accusation.
But now, days and scant weeks into the story, it turns out that the story behind the story is not merely wrong, but entirely, upside-down wrong. The Flint water fiasco was caused by a stimulus project, and the switch from bad to worse water sources was made to promote “jobs”!
In the words of Reason’s Shikha Dalmia, “the Flint water crisis is the result of a Keynesian stimulus project gone wrong.”
Yes, another failed Big Government policy — just like progressives are always pushing.
And it didn’t take years for the truth to seep out.
Hooray for today’s accelerated history! Now, if we could only decrease the lagtime between lesson given and lesson learned.
This is Common Sense. I’m Paul Jacob.
When you systematically reward failure, incompetence and irresponsibility…what results should you expect?
QE – Toxic Asset Government Purchases
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Government failure checklist. . .
Reference:
The Government Poisoned Flint’s Water—
So Stop Blaming Everyone Else
Flint’s water crisis isn’t a failure of austerity. It’s a failure of government.
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Bernie Sanders has risen in the polls. He may even beat Hillary Clinton in the first caucus and primary contests for the Democratic presidential nomination.
A cause for celebration! Witnessing a huge hunk of Americans accept Mrs. Clinton, the consummate and corrupt insider, is too disheartening.
Bernie Sanders, for all his faults, is at least not an insider like Hillary.
And even when he’s obviously wrong, he’s a breath of fresh atmosphere. Take his recent call for turning the credit ratings institutions into non-profits, or into government-run bureaus. It’s good to hear someone on the left blame something other than the partial repeal of Glass-Steagall as the cause of the Crash of 2008, and (thus?) of the current “Great Recession.” Glass-Steagall was utterly irrelevant to the institutions that were hit hardest in 2008’s collapse; it has, nevertheless, served as leftists’ idée fixe for years now. Embarrassing.
The ratings agencies, on the other hand, did play a part in the crash.
Still, remember: their prominence and importance (and very existence) in financial sectors rests entirely upon one provision of FDR’s New Deal.
More importantly, Bernie’s favored solution — government bureaus — is no solution at all. Europe’s ratings system failed in 2008, too, as Mark A. Calabria has noted, and “it was the international financial regulators, not the rating agencies, who decided that Greek debt was ‘risk-free.’”
Earth to Bernie: government regulatory failure is normal.
Calabria agrees that we need to have a political conversation about the ratings agencies, but insists it be “based on facts,” not ideology.
I’m all for the facts, but ideologies are inevitable. And ideologies promoting Big Government inevitably fail.
This is Common Sense. I’m Paul Jacob.
Why did Dr. Ben Burris give up his orthodontic license? Where did he go wrong?
Dr. Burris broke the law. He flagrantly violated the hallowed precepts of the Arkansas Dental Practices Act. Let me rinse and spit out the truth: This dentist illegally cleaned people’s teeth.
Not just once — he did it again and again. Often twice a year per patient — or victim, depending on your viewpoint.
Plus, brace yourself, he didn’t merely scrub their choppers, he did so — get this — at very low cost.
We need strong laws to stop such scoundrels.
That bastion of wisdom, the State of Arkansas, has no qualms about Dr. Burris’s qualifications to remove plaque from our incisors, canines and molars, having licensed him to practice dentistry. The problem is actually that Dr. Burris is over-qualified.
Especially to charge low prices!
Burris got licensed in a specialty: Orthodontia. You see, according to state law, a dentist so licensed “must limit his or her practice to the specialty in which he or she is licensed except in an emergency situation.”
Only after terrorist attacks or earthquakes can society risk allowing Orthodontists to daringly and brazenly polish people’s teeth. For less.
This particular statutory tyranny aims to close healthcare markets, minimize patient choice and keep dental costs artificially high. Luckily, beyond being maliciously wrongheaded, Arkansas’s dental law is absurdly foolish.
Dr. Burris dropped the federal court challenge being litigated by the Institute for Justice. Why? He discovered that by simply relinquishing his orthodontic license, he could legally practice orthodontics and clean people’s teeth at low cost.
He just can’t call himself an Orthodontist — but can call the law an ass.
This is Common Sense. I’m Paul Jacob.
In The Mouse That Roared, a 1955 comic novel by Leonard Wibberley, a tiny English-speaking country in Europe loses market share for its only export, a wine label, to a cheap American knock-off. Seeking compensation for the loss, the duchy decides to do the only rational thing: declare war on America, and then, after the inevitable defeat, reap the rewards of reconstruction financing.
I was reminded of the book when reading about another of the Obama Administration’s subsidy programs, uncovered by Sen. Rand Paul. The program gives money to illegal aliens deported to their country of origin, El Salvador, to start small businesses.
Sort of a Small Business Administration program for deportees.
But Congress’s involvement is nil, and the SBA has nothing to do with it, either. The program, according to the Rand Paul press release, “is administered by the non-profit Instituto Salvadorno Del Migrante (INSMI — translated to Institute of Salvadorian Migrants) and funded through a $50,000 grant from the taxpayer-backed Inter-American Foundation.”
It is not big money, certainly not by profligate Washington standards. Nor is the premise of the program likely to win it praise from anyone looking for a solution to illegal immigration. Indeed, the best way to describe the program is how Rand Paul’s team did describe it: “absurd.”
In The Mouse That Roared, the Duchy of Grand Fenwick makes a crucial mistake in its plan to profit from American largesse: it wins the war.
But some things haven’t changed since then. The American government throws around money absurdly.
And little countries make fools of Big America.
This is Common Sense. I’m Paul Jacob.
Today’s the traditional day for New Year’s “Resolutions,” but instead of resolutions, how about some solutions?
Sure, Thomas Sowell has sagely reminded: there are no solutions in social life, only trade-offs.
But, utopian perfection aside, let’s agree that some changes would be better than others, and, let us resolve to solve some nagging problems — or at least trade up. And since the really nagging problems are political . . .
For Republicans: this could be the year to give up on government as society’s chief moral agent, empowered to regulate everybody’s medicine cabinets and bloodstreams. End the failed War on Drugs, with legalizing marijuana the simplest first step. Vice will continue, as it always has. But it’s another kind of vice to think that force, policing and imprisoning folks, will “solve” the problem. Much less even reduce the availability of drugs.
For Democrats: this could be the year to give up on government as micromanager of markets — and people’s marketplace choices. Face it: folks will make decisions that liberals don’t like. They’ll eat at McDonalds and buy large sodas — and the wrong stocks. And guns! But adding to the mass of regulations doesn’t make consumers choose better, it makes stuff more expensive and business less open to competition. Indeed, almost all the regulations designed to help “the little guy” backfire, helping big business by hobbling their upstart competitors.
Our leaders, at present, cannot even balance budgets. They are addicted to debt. To pretend we must have more and more government to prevent our addictions or save us from personal debt is ludicrous.
Can we resolve to stop pretending that bigger government is always the solution?
This is Common Sense. I’m Paul Jacob.
Senator Bernie Sanders gave us a big present last week. In one simple “tweet” he warbled out the essence of his socialism: “You have families out there paying 6, 8, 10 percent on student debt but you can refinance your homes at 3 percent. What sense is that?”
That’s what he broadcast. That’s what this self-proclaimed socialist wrote — or allowed his staff to write — on his official Twitter account, @SenSanders.
And it is not as if he had the excuse of haste. He was repeating a thought from his presidential campaign account in September: “It makes no sense that students and their parents pay higher interest rates for college than they pay for car loans or housing mortgages.”
To the earlier post, Twitter erupted in criticism. The gist? Have you never heard of collateral, sir?
Lenders can charge less on secured loans because, in case of default, the recourse is to take the collateral, the car or house, thereby recouping the loss.
But an unsecured loan? Well, by law one cannot easily slough off student loans — but one can simply not pay, or pay late. Hence the higher rates.
From its beginnings, socialism — and progressivism and Fabianism and fascism and social democracy, following — has been fueled by complaints about markets.
Without showing any understanding of the logic of markets.
Which is why, when put into practice, socialistic and interventionist programs produce such great amounts of negative collateral effects. Socialism is the philosophy of good intentions that yields collateral damage worse than the problems meant to be solved.
Oh, Bernie Sanders! Your initials say so much.
This is Common Sense. I’m Paul Jacob.
