Category: free trade & free markets

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free trade & free markets too much government

Ziggy Stardust Bucks

Josiah Warren Time Store note for Three Hours Labor

When times get tough, the tough . . . switch currencies.

A fascinating report in The Atlantic tells of the upswing in “local currencies.” In the United Kingdom, the Brixton Pound is being floated, engraved on its paper notes the likes of “David Bowie in his Ziggy Stardust era.” Pegged to the British pound, it serves mainly as a scheme to promote local business and trade, though maybe it’s a tad more than mere boosterism.

Bavarians are also “enthusiastically using the local currency as a protest” — the local currency being the Chiemgauer. And “similar currencies have popped up around the world,” including in Canada and the United States.

The Atlantic story also mentions the idea of a “time bank,” a one-step-up-from-barter method based on labor hours and (in some cases) accounting for a variety of skill levels. Such “systems are in use all over the world . . . though the organizers are careful to make sure that the time is never given a specific value in a hard currency, which would open the door to taxation from governments.”

That caveat shows how barter and labor time exchanges might seem the more “revolutionary,” from, say, an establishment point of view. It’s worth noting that the idea’s greatest early proponent was Josiah Warren, America’s genius utopian experimenter and theoretician of “individual sovereignty.”

Less of a radical, Rep. Ron Paul echoes eminent monetary economist and Nobel Laureate F.A. Hayek by promoting the “denationalization of money,” arguing that government policy should allow all currencies to float, getting rid of all taxation on trade amongst currencies as well as repealing all legal tender laws.

For my part, I would greatly enjoy spending a Ziggy Stardust banknote.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets local leaders

A Very American Bridge

Severe flooding forced Polihale State Park on Kaui, Hawaii’s fourth most famous island, to close in December. The needed repairs to a bridge were estimated to run $4 million, and yet state government lumbered along, spitting out no funds for the project. So local businesses got together and did the job themselves.

One of the organizers of the private-enterprise repair job, a local surfer, noted that the two years the state could take to do the job meant a summer or two without the attraction that local businesses depended upon, and that, “with the way they are cutting funds, we felt like they’d never get the money to do it.”

A businessman named Ivan Slack (no slacker, he) said his kayak business utterly depended upon the park — “tourism is our lifeblood; it’s what pays all our bills” — so he was more than willing to get the job going sans taxpayer dollars. His business’s survival depended upon it. He couldn’t just “wait around for a stimulus check.” So his company donated resources — as did others. The community provided its own stimulus.

And the job was completed in eight days.Alexis de Tocqueville

This is what used to be the norm in America. When Alexis de Tocqueville toured the country, he noted the amazingly prolific community organizations and associations that abounded in what was then a “new country.” If the people saw a problem, the people fixed it.

If there’s a bright side to the current economic depression, surely it’s stories like this.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Businesses Rate Governments

What do small businesses worry about the most? I mean, besides serving their customers?

Regulation — licensing in particular.

At least when rating government, owners of small businesses surveyed by Thumbtack.com indicated that “licensing requirements were nearly twice as important as tax rates in determining their state or city government’s overall business-friendliness.”Thumbtack.com's state ratings in terms of small business concerns.

Yes, taxes are a burden. But regulations and licensing can be amazingly arcane and costly in many communities. Their burdens often kick in before you’ve made a dime, and, despite that, they can sneak up on you, with the heavy weight of bureaucracy descending like the proverbial brick ton.

Thumbtack’s page allows you to see how your state rates. Idaho and Texas come out on top, and my state, Virginia, is surprisingly good. “Blue states” (horrible term: sorry) tend to come out much worse. California gets a big fat F, scoring abysmally low in most categories.

No surprise: The most politically unrepresentative state in the union over-regulates!

Distrust the survey? Just talk to the owner of a small business — you’ll likely get corroboration. Tim Sutinen, a businessman from southwest Washington State, noted in his campaign for state office a few years ago that there were only a handful of licensed occupations in the Evergreen State during the economic downturn in the early ’80s. Now, a few decades later, there’s over a thousand occupations you need a license to work in.

No wonder the recovery stalls.

That’s not progress.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets ideological culture video

Video: How to Fail, America

This is stylish, provocative, and … worth thinking about:

Categories
free trade & free markets nannyism too much government

Kids Demand Right to Chores

“The Department of Labor is poised to put the finishing touches on a rule that would apply child labor laws to children working on family farms,” Daily Caller’s Patrick Richardson reported on Wednesday, “prohibiting them from performing a list of jobs on their own families’ land.”

Somewhere, farm kids high-fived each other.Rusty tractor

But not Rossie Blinson of Buis Creek, NC. Now in college, Blinson expressed concern that the new rule would shortchange young people. “I started showing sheep when I was four years old. I started with cattle around eight,” Blinson declared. “It’s been very important. I learned a lot of responsibility being a farm kid.”

Minnesotan John Weber, 19, argued that the proposed regulation would “prevent a lot of interest in agriculture. It’s harder to get a 16-year-old interested in farming than a 12-year-old.” Weber is majoring in Agriculture at college and credits working on his grandparents’ and uncle’s farms with instilling a “work ethic” in him. “It gave me a lot of direction and opportunity in my life.”

In high school, Weber took out a loan to purchase a few steers to raise and sell. “Under these regulations, I wouldn’t be allowed to do that.”

Further, the regs would forbid groups like 4-H and FFA from providing safety training, mandating, instead, a 90-hour federal government course.

Oh, but wait a second . . . it must be an election year or something! “Citing public outrage,” informs a notice posted on the Daily Caller story after business hours last night, “the Department of Labor has withdrawn the controversial rulemaking proposal described in this article.”

My goodness, that’s actually common sense! I’m Paul Jacob.

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education and schooling free trade & free markets too much government

Harvard Shrugs

Wait for it: There’s another financial bubble ready to pop.

I’m not an economist, so I could be as wrong as, uh, a Keynesian strung out on (and pushing) “economic stimulus.” But the usual signs of an over-priced market sure seem to apply to higher education, today. After all, colleges and universities are sustained and over-fed by massive debt . . . in this case, government-guaranteed student loans, now passing the trillion-dollar mark.Harvard Shrugs

From your local community college to the Ivy League, the whole industry reeks of insider advantages, constricted supply and inflated demand. So of course prices rise.

Beyond all reason.

The latest sign on the way to the bubble’s bursting comes from Harvard. That august institution’s Faculty Advisory Council for the Library issued a memorandum last week declaring that the cost of subscribing to peer-reviewed journals has become too great to bear. Robert T. Gonzaleaz, writing at io9, puts this news in perspective:

What does it say about the world of academic publishing, the accessibility of knowledge, and the flow of information when the richest academic institution on the planet cannot afford to continue paying for its peer-reviewed journal subscriptions?

When I look at the prices of textbooks and journals and academic books, I wince. Were this industry marked by laissez-faire policies and free markets, the typical leftist “anti-greed/anti-business” attitude might make sense. But this is an industry riddled with government intrusion, as far-reaching as the intrusions into housing and banking that led to 2008’s financial debacle.

How could the over-sold, over-subsidized, over-controlled college-university industry remain immune to a similar catastrophic deflation?

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Censoring a Diet

North Carolina, like many states, licenses all sorts of businesses activity, especially enterprises related to medicine. That’s why the state’s Board of Dietetics and Nutrition is gearing up to jail a blogger. According to the Carolina Journal Online,

Chapter 90, Article 25 of the North Carolina General Statutes makes it a misdemeanor to “practice dietetics or nutrition” without a license. According to the law, “practicing” nutrition includes “assessing the nutritional needs of individuals and groups” and “providing nutrition counseling.”

Steve Cooksey has learned that the definition, at least in the eyes of the state board, is expansive.

Cooksey had been hospitalized for diabetes in February 2009, and decided to take a major, independent step towards his health, beginning a low-carb, high-protein diet dubbed the paleo (or “cave man”) diet. Within 30 days, he claims, he was off insulin; within a few months he had shed off 45 pounds.

He started his blog, Diabetes-Warrior.net, to chronicle his progress and help others achieve similar success. But after he challenged a local, certified nutrition expert at his local church, the state board went after him, especially objecting to his Q&A section: “If people are writing you with diabetic specific questions and you are responding, you are no longer just providing information — you are counseling.”

Need a license for that!

Journalist Brian Doherty wittily asserts “that someone should be able to describe his experiences . . . and advocate for his own good results should go without saying, though my saying that may well contradict a directive of the California Board of Going Without Saying.”

We don’t need another bureau.

Getting rid of some that we have might be the best policy diet.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets ideological culture tax policy

Unfuzzying Up the Past

We hear a lot of talk about the disappearing middle class. Sometimes this jabber goes so far as to posit that normal folks — say, the “99 percent” — haven’t really experienced any progress since the ’60 or ’70s.

So blame the rich. And their government.

It’s not an implausible case. Wealthy interests do rent politicians at extravagant rates, changing policy in their favor.

But as economist Russ Roberts and Cornell University’s Richard Burkhauser discussed recently, sloppy statistics feed the hand-wringing over middle-class decline. Considering government transfer payments from rich to poor and plotting income by household rather than individually, the basic “stagnation” thesis doesn’t pass the “smell test.”

For the real stink, however, consult the Internet memes, particularly this goofy contention:

In the 1950s and 1960s when the top tax rate was 70-92%, we laid the interstate system, built the Internet, put a man on the moon, defeated Communism, our education system was the envy of the world, our middle class thriving, our economy unparalleled. You want that back? Raise taxes on the rich.

Forget the obvious nonsense (ARPANET was the Internet only in ovo; Communism collapsed in the ’80s), and concentrate on the main points, as Tom Woods has done: tax evasion was rampant back in the alleged “good ol’ days”; public schools have doubled in per capita spending since then, and not improved; and the stagflationary ’70s followed the booming ’60s, almost certainly as a consequence of the policies being touted, here.

Selective memories help in constructing just-so policy “proofs.” The middle class has received some big hits, I grant you. Still, we’ve seen progress, too.

This is Common Sense. I’m Paul Jacob.

 

Categories
free trade & free markets too much government

The Shape of Bills to Come

Q. Why are the bills on farmers’ feed caps rounded?

A. So they fit inside the mailbox as each farmer roots around for his government check.

Old joke — and a useful reminder of how subsidy-dependent agriculture has become. Scott Faber, writing in The Washington Times, barrels right into the subject:

From 1995 to 2010, taxpayers provided nearly a quarter-trillion dollars in subsidies to farm businesses. Only one-third of America’s farmers grow crops that are even eligible for these subsidies, and the top 10 percent of these operations collected 74 percent of available funds. More and more farm payments are being delivered as premium subsidies for farm insurance policies. As more farm businesses purchased government-subsidized insurance, the cost to taxpayers has exploded: from $2.4 billion in 2001 to nearly $9 billion in 2011.

So the joke doesn’t quite limn the nature of today’s agribiz subsidies, which tend to be concentrated in the bigger businesses, not the more sympathetic “family farm.”

Faber notes that, today, as profits rise so do discoveries of insurance fraud . . . and yet farm lobbyists now trot out subsidy extension packages, even to the point of erecting new entitlement programs.

Just what we need, an even more dirigiste agricultural policy.

Faber proposes to cut back on covering farmers’ “shallow” losses — cover “deep” ones only. Move away from an agribiz “entitlement” system. Help reduce the federal deficit, not pile up more bushels of debt. That’s a start, at least.

Certainly, something must be done: Farm legislation is up for renewal this year.

But will Midwestern politicians wearing feed caps dare cut back?

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

X Marks the Mistake

Take subject X. What if nearly everything we’re told about X — by the most famous experts and by people in government, as well as most folks in the media — is wrong?

Let X be diet. Maybe the whole “anti-fat” idea, dominant for most of my adult life, is wrong. There’s evidence for it.

Let X be AGW, the theory of anthropogenic (human-caused) global warming. We’re told that there’s a consensus in favor of it. But there’s less to that alleged consensus than meets the eye — or scientific rigor.

But to really blow your mind, consider central banking.

We’re told that the job of the central bank is to protect us from the fluctuations of boom and bust. The Federal Reserve was established by the federal government just to help us! But . . . what if that was never the actual reason that banks have been centralized?

Economist George Selgin posted, last week, a thorough debunking of Federal Reserve Chairman Ben Bernanke’s recent statements about what he’s up to. If you have never heard of free banking before, or the long tradition of central banking criticism among monetary economists, Selgin’s critique may seem outrageous . . . as outrageous as Copernicus and Galileo were back when most folks thought the Earth was the center of the universe.

If Selgin is right (and I think he is), nearly everything we’ve been told by experts and politicians about money, boom and bust, and banking, is wrong.

The central banking school is X.  X is wrong.

So if the Fed doesn’t do what it’s “supposed to,” why do we have it?

It serves big government and some big bankers.

This is Common Sense. I’m Paul Jacob.