Category: free trade & free markets

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free trade & free markets national politics & policies

A Wealth of Joblessness

Did you know that the unemployment rate — as high as it is — is actually very much understated? It doesn’t include those who are out of work but have given up trying to find a job.

This puzzles me.

Oh, I see the rationale for not counting those who have abandoned their job searches (the information gets harder to collect and maintain, and you enter into the farther regions of statistics), but, nevertheless, they certainly do remain unemployed.

What puzzles me is the ability to remain permanently jobless. I don’t think my wife would let me make that choice. And even if she did, without income where would we get the money to pay the mortgage or buy food?

There’s unemployment insurance, which helps tide folks over when they lose a job. Yet, a condition for receiving unemployment benefits is continuing to actively seek a new job.

Like many, we could fall back on family and friends. But I’d feel bad enough about that if I was pounding the pavement every day in search of gainful employment. I can’t imagine doing so without any intention of landing a position and getting back on my own two feet.

So what can we conclude about folks who don’t have a job and aren’t looking for one? There are apparently a lot of rich folks out of work.

This yields the unwelcome-to-many conclusion that, in America, everyone is rich. Inequality notwithstanding.

This is Common Sense. I’m Paul Jacob.

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

Going After the Gold

What does gold have to do with medical care? Ingested, it’s a poison. It’s not often used in treatment.

So why did the Obama administration place a provision further regulating the buying and selling of gold into the Democrats’ medical reform legislation?

Economist Thomas Sowell explains, in a recent column, why politicians are obsessed with the yellow metal. Before FDR, gold provided a check against politicians’ desire to spend the money government could “just print.” Because, in those long-ago days, paper dollars were backed by gold, Americans would cash the paper in for gold when it looked like the Treasury had gone on a printing spree. So inflation (the increase of the supply of money, and the consequent diminishing of its value, leading to increasing prices) was checked.

In 1933, FDR confiscated most of America’s circulating (and hoarded) gold, and Nixon took us off the gold standard completely in the ’70s, morphing our monetary system into a pure fiat (inflationary) standard.

Also in Nixon’s time, it became legal, again, for Americans to own gold.

So why make it harder, now, to trade in gold — when gold is not money?

Because investors, in times of inflation and crisis, turn to gold as a hedge. Against politicians, basically. And, says Sowell, “the Obama administration sees people’s freedom to buy and sell gold as something that can limit what the government can do.”

Gold, like freedom, “cramps the government’s style.”

That speaks volumes about gold . . . and “Obamacare.”

This is Common Sense. I’m Paul Jacob.


Categories
free trade & free markets general freedom nannyism too much government

A Tour of Over-Regulation

Want a measure of the regulatory state run amok?

Recently in the Washington Post, Robert McNamara of the Institute for Justice informed us that “In the 1950s, only about one out of every 20 Americans needed a license to pursue the occupation of their choice. Today, that number is one out of every three.”

Wow. A lot more hoops to jump through to get a job or start a business.

Want to add insult to injury? The actual regulation McNamara was writing about makes it illegal — punishable by three months in the local jail in our nation’s capital — to “describe . . . any place or point of interest in the District to any person” as part of a tour without first getting a license.

And the license process is no picnic, either. Sure, this past summer the city did repeal the rule requiring a doctor’s certification that the aspiring guide is not a drunkard. But there remain plenty of stupid regulations, including new ones that require guides to be proficient in English. And yes, that applies even to guides who talk to those benighted folk who speak foreign languages.

Applicants must also pass a test on their knowledge of “various facets of Washington life, including architecture, history and regulations.”

Tour guides must be expert in “regulations.”

Even the Washington Post headlined its editorial, “Tour de farce,” suggesting that a system of “voluntary certification” would work better than big government rules.

Yes. That’s right.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets general freedom too much government

A Million Jobs, Gone

You’re fired! Now get a real job.

Does this sound mean?

It’s just what Cuba’s biggest employer plans to say between now and March — fire half a million workers and tell them to find other jobs, or (better yet) go to work for themselves.

After March, another half million will be given pink slips.

Or so say the Castro Bros., who are, in effect, the chief employers in Cuba.

Just like a despot, you might say. But hey: The country is broke, and the initial hiring of everybody by the government (which Fidel ran for scores of years, and his brother, Raul, now runs) was, itself, despotic. Thankfully, as more and more outlets of the “Cuban Communist Corp.” go under, the Cuban commissars say they will ease up on the regulations that now prohibit small, entrepreneurial businesses.

Of the many comments I’ve read about this, I was amused most by Tom Knapp’s. After drily noting that it is the Castros who will build down government, not Republicans in the U.S., he explained how the commies had kept their transportation going all these years: By maintaing old American cars from the ’40s and ’50s. Now that trade restrictions will likely be eased, those well-kept-up vintage cars could help “finance an explosion of economic prosperity just by tapping the U.S. classic car collectors’ market.”

Hope so.

And I hope the newly fired will transition to a slightly freer economy without too much trouble.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Good FDA, Bad FDA

You’re sick and need medicine that has proved its benefits to you. Will the Food and Drug Administration let you use it?

The FDA recently extracted $600 million from Allergan, makers of Botox, for promoting uses for Botox different from those for which it was approved. It’s not illegal to use the drug for unapproved uses; it’s just illegal, sometimes, to tell you about those other uses. This, despite the fact that the First Amendment doesn’t exclude members of the pharmaceutical industry.

Now we’re hearing that the FDA has flip-flopped about letting people use midodrine, which quells dizziness. Back in 1996, midodrine was approved under “an abbreviated process,” one too brief to determine whether it really helps with dizziness. So, recently the agency outlawed sales of midodrine until its effectiveness could be shown. But — oops! — during the intervening 14 years, patients have come to depend on it. These patients swamped the FDA with complaints. So now the agency, in good-cop mode, says, okay okay, you can use it.

Thus, if you can persuade bureaucrats to let you medicate yourself as you and your doctor see fit, you get to do so. If not . . . sorry.

The New York Times talks about the “tough choices” facing the FDA, since banning a drug can mean “stranding desperate patients.” Congress should represent patients by stripping the agency of any power whatever to dictate when and how we may act to improve our own health.

This is Common Sense. I’m Paul Jacob.

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

Nothing Doing

When you don’t know what to do, the thing to do is nothing.

Well, maybe.

Economist Thomas Sowell, in a recent column, notes that we recovered from downturns in the economy more quickly before the federal government took it upon itself to fix things. The first major fix was with the Great Depression. Which dragged on and on.

Today, our leaders have spent trillions of borrowed money to fix the economy, with poor results.

Sowell’s column is great, right up until near the end, when his plea for politicians to “do nothing” ignores a lot of . . . something.

After the huge 1987 stock-market crash, he explains, President Reagan did nothing. But then “the economy rebounded, and there were 20 years of sustained economic growth with low inflation and low unemployment.”

But were those 20 years really so benign? Activity by presidents, by Congress and most of all by the Federal Reserve set up the systemic problems that led to the Crash of 2008. Consumer price inflation was low during Sowell’s Reagan-blessed period, but all the while the Fed was feeding first a dot-com bubble and then a housing bubble. And it engaged in a series of bailouts of financial institutions.

Maybe Reagan and later politicians didn’t do enough in the “do nothing” department. They should have reined in (or abolished) the Fed. They should have abandoned “too big to fail.” They should have stopped subsidizing creditors in busts and home-owners in booms.

This is Common Sense. I’m Paul Jacob.

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

An Ideological Cure?

Sometimes doctors need a stiff belt of medicine too.

Scot Echols, a  reader of Glenn Reynolds’s “Instapundit” blog, wrote in to say that while he appreciated a recent piece by Reynolds hailing capitalism, he thought it had not sufficiently stressed how capitalism fosters the creation of value.

“Value is created when someone does something for [others] better, faster, or cheaper than they can do it themselves,” Echols wrote. Then he related an anecdote about his doctor, whom he had gone to see about a sore throat. His doctor ranted about how “we need communism or a benevolent dictator to solve all of society’s problems.”

Sore throat notwithstanding, Echols responded, saying that he could either treat a sore throat himself with a regimen of gargling and garlic or pay $80 for a consultation and quick-acting antibiotics, reducing a two-week treatment to twenty minutes. His doctor’s knowledge and ability thus create value for him, value worth paying for. Because of such value creation, physicians gain wealth that enables them to drive nicer cars and live in nicer places than many of their receptionists can.

His doctor had no reply, but perhaps did understand a little better just how the kind of value-killing society he’d been dreaming about might not allow him to enjoy the nice things he had now; also, that the freedom to give value and be rewarded for it is a good thing.

Let’s hope the cure sticks. Let’s hope it spreads.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets general freedom

Wonders Never Cease

James May is one of the stars of a BBC television show called Top Gear. He’s the long-haired fellow who argues about cars with the show’s short chap and the host, a big, loud gentleman. May often serves as both the scholar and the avatar of common sense. And then, occasionally, his enthusiasm veers off into a pleasant madness.

Ah, television.

On TopGear.com he offers a fine essay on the joys of how things just work. He needed a new brake caliper for his aging auto, ordered it, and put it right in. “Nothing remarkable about that.” And yet, he has the wit to see that “nothing remarkable” is not quite right. Actually, he goes on, “it’s a matter for extreme wonderment.”

Precision isn’t easy. And yet precision is what we have, to amazing degrees, in the cars we rely upon.

In the manner of Adam Smith — who, in 1776’s Wealth of Nations, celebrated the complexity of building something as simple as a pin — May opines, “That something as complex as a car can be owned by ordinary people is, I think, one of the greatest achievements of humanity. It can be attributed to improved standards of living,” he concludes, and is “bloody marvelous.”

Yes. We may take things like cars for granted, but they aren’t “a given.” Their very existence depends on worldwide markets and a great degree of freedom.

Which we must also not take for granted.

This is Common Sense. I’m Paul Jacob.

Categories
First Amendment rights free trade & free markets ideological culture national politics & policies too much government

Forcing You to Pay for Bad News

Poor old-media dinosaurs! The “news profession,” so assailed by the fact checkers, bias detectors and distortion documenters hailing from the Internet and other new tech, suffers under the scourge of unexpected competition.

What to do . . . aside from apply troubling degrees of ingenuity, conscientiousness and hard work?

Writing for the Wall Street Journal, Lee Bollinger, Columbia University president and free speech “expert,” says the answer is “more public funding for news-gathering. . . .”

It’s very exciting. Under Bollinger’s plan, even more of your tax dollars will be diverted to support media outfits whose lucubration you don’t support voluntarily! Joy!

For Bollinger, past unconstitutional interference with media provides ample warrant for more. In the ’60s, the Supreme Court sanctioned government-compelled coverage of “public issues” and provision of “equal time,” even though it could have “limited government involvement simply to auctioning off the airwaves and letting the market dictate [sic] the news.”

It’s unclear why advocates of pushing people around so often make this precedent-worshiping argument. It’s as if some tyrant were to say, “There’s already well-established precedent for my beating up and killing innocent people. So why not expand and codify the process?”

Hey, maybe something’s wrong with the media-bullying precedents? And something right with the First Amendment? Perhaps today’s overdue media ferment would have happened earlier absent government fostering of media behemoths.

How about dropping the shackles and subsidies and letting Americans make our own choices about which media to patronize?

This is Common Sense. I’m Paul Jacob.


Categories
free trade & free markets too much government

Metro Plays Hooky Roulette

Government-run mass transit is not merely a tragedy of inefficiency, in Washington, DC, the Metro has proved itself a danger to life and limb.

Five Metro workers have been killed on the job in roughly the last year. Before that, a June 2009 Metro train accident that killed nine people and injured seventy more. In a June 27 Townhall.com column, I lamented that even after all these deadly accidents, the National Transportation Safety Board complained there remain “significant deficiencies in their safety culture.”

Now, thanks to a Washington Examiner report we find out that Metro’s deficiencies start right at the top. During the last 18 months, six of Metro’s 14 appointed board members have no-showed for at least 20 percent of the meetings.

Vice Chairman Marcell Solomon, the board’s highest paid member, missed over half the meetings. Of course, D.C. Councilman Michael Brown was worse, skipping out on two-thirds of the meetings in the same 18-month period.

If this were a private business it would be going belly up from paying out large settlements for the death and destruction it has wrecked across the region, or shut down for gross mismanagement equal to gross negligence.

But Councilman Brown says he’s improved this year, only missing half the meetings. “My attendance hasn’t been great,” Brown concedes, “but my engagement has always been there.”

Metro trains keep rolling dangerously down the tracks with a politicized management that is asleep at the switch.

This is Common Sense. I’m Paul Jacob.