Category: free trade & free markets

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

In Case You Were Worried

It’s magic. Not only does the recently passed health care reform cover more people, it cuts deficits too.

Ha! You know it, I know, we all know it: Major government entitlement programs always end up costing far, far more than their original advocates claim.

Or should we just trust trust the reform’s advocates no matter what past experience and rational accounting say?

Democratic Congressman Jim Clyburn turned to MSNBC to explain all about how Obamacare would slash the deficit. “We’re extending the life of Medicare by nine years, and if you’re taking the waste, fraud and abuse out of this, the savings that you get there will come as things grow. Savings will grow.”

Ah, waste! Fraud! Abuse! Politicians love such talk, at least until the waste and fraud gets renamed “stimulus spending.”

Then Clyburn said: “You look at the community health centers. Savings will grow more in out years than in the first few years. So I believe — well, that’s my assessment, and that’s the way I’m explaining it to members. I hope I’m right.”

So there is hope.

Also, 32 million people will be coming into insurance plans and out of emergency rooms. (Unless there’s an emergency.) Also, Clyburn’s wife had bypass surgery and the bill included $15 for an aspirin. What we must understand is that the new command-and-control regime will “build savings into the system.”

Could what this third-ranking House Democrat really be trying to say is that he has no idea what he’s talking about?

This is Common Sense. I’m Paul Jacob.

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free trade & free markets too much government

Keystone Cops in Philly Folly

This March, armed Pennsylvania State Police bravely raided three popular bars in Philadelphia.

They confiscated liquors that allegedly had not been properly registered with the state Liquor Control Board. Brewers and importers must pay a $75 registration for each separate potable they sell in the state.

Some unnamed concerned citizen had complained. The three bars were affiliated, so maybe a resentful competitor had something to do with it.

According to the owners, many of the confiscated ales had been duly registered. But when the state police couldn’t instantly confirm this, they just grabbed cases and kegs and towed them away.

Even in the case of unlicensed ales, what is the virtue of raiding a bar to sloppily “check” their status and then steal supplies? Especially when it’s not the bar owners who are legally obligated to register the brands?

Some clerk could have just dropped by, inspected the booze, asked a few questions. Or just called the brewery and said, “Hey, you forgot to register such-and-such.”

Of course, the whole idea of requiring separate registrations of each separate beverage is silly to begin with.

Further, the state police could have, and should have, simply declined this wrongheaded mission.

Apparently we can’t count on better lawmaking and better, more sensible regulations. But we do count on our police.

This is Common Sense. (Let’s practice it.) I’m Paul Jacob.

Categories
Accountability free trade & free markets too much government

Krugman’s Crazy Crotchets

Paul Krugman is getting sillier and sillier these days. He’s supposed to be an economist, and not long ago some people in Sweden gave him an award for his economic work. So why would he suggest that economic incentives just don’t matter?

The New York Times columnist bashed Republican Senator Jon Kyl for stating that generous unemployment benefits can reduce the incentive to look for new work. Krugman says that this isn’t the textbook view of things shared by himself and the Democrats. “What Democrats believe,” Krugman says, “is what textbook economics says.”

Gee. So what does textbook economics say?

James Taranto of the Wall Street Journal actually checked a textbook in economics. According to this textbook, “Public policy designed to help workers who lose their jobs can lead to structural unemployment as an unintended side effect. . . . In other countries, particularly in Europe, benefits are more generous and last longer. The drawback to this generosity is that it reduces a worker’s incentive to quickly find a new job.”

Interesting. So who wrote this textbook? Yes, that’s right: Paul Krugman.

This partisan fellow, Krugman, often seems to go out of his way to be contradictory as possible. Does he believe his own babbling? Or is he just trying to get a rise out of us?

Or is it to please his editors over at the Times?

Call it an economic incentive.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets too much government

The Color of Boom and Bust

You’ve heard of “green collar jobs.” But what about “glass collar jobs”?

The Heartland Institute just put out a handy little pamphlet called The Cap and Trade Handbook, by James M. Taylor. It debunks various aspects of today’s obsession with fixing the global climate by laying on new restrictions, regulations and taxes. On page 5, Taylor addresses, colorfully, the “green jobs” issue.

Would cap-and-trade create new jobs? The handbook says, “sure, forcing people to buy expensive alternative energy means some new jobs would be created in the wind and solar industry. But even more jobs would be destroyed in the more efficient conventional energy sectors. . . .”

True — new jobs would come at a cost. The pamphlet then considers what would happen if the government hired thugs to break our windows. Sure, “such a program would create a lot of new ‘glass collar’ jobs in the window repair industry.” But employment would not increase on net, and we’d obviously be worse off, not better.

Unfortunately, the big headline on the page insists that “There will be no employment boom in the ‘green collar’ jobs sector.” Not true, as explained.

Just as subsidizing mortgages led to a housing boom this past decade, cap-and-trade policy would likely create a new boom industry that also would not sustain itself. And then explode. Spectacularly. Disastrously.

Financial bubbles break. That’s bad, no matter what color.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets

High Tech versus Disaster

Amidst all the tragedy dealt by the earthquake in Haiti, there have also been inspiring tales of coping and survival — some occasioned by the wonders of modern technology.

Consider the cell phone and its muscular cousin, Apple’s versatile iPhone.

The iPhone was the star of Dan Woolley’s self-rescue effort. Woolley, an American filmmaker, was in Haiti when the earthquake buried him in rubble. Help would not arrive until three days later. So he consulted an iPhone application to learn how to make a tourniquet for his leg and bandage his own head wound. Without the software, Woolley might not have survived.

Few in Haiti have iPhones, but many have access to some kind of cell phone. For weeks after the earthquake, electricity was out. Landlines were dead too. But in a patchy way the cellular network was up within days. Voice calls remained iffy, but you could easily send text messages.

Without electricity, though, how to power up a drained cell phone and contact a loved one? That’s where street-corner entrepreneurs came in, hooking up power strips to car batteries and charging 40 cents or so to charge a cell.

We often take technology for granted. But the high-tech that makes life easier in normal times can also help us contend with disaster. As do the markets that make the technology and its maintenance possible.

This is Common Sense. I’m Paul Jacob.

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education and schooling free trade & free markets too much government

Take That Money

I didn’t notice it right away, but President Obama included some strange stuff about student loans in his State of the Union address. He called the current system an “unwarranted” taxpayer subsidy to banks.

Well, yeah. His solution? Another unwarranted taxpayer subsidy.

The president seeks to give families a $10,000 tax credit for sending kids to college. He also insists that no student spend more than 10 percent of his income to pay back loans, and that the unpaid portion of loans be forgiven after 20 years.

Further, if the former student happens to work for the government, the loan would be forgiven in half that time — just ten years!

This amounts to a huge special favor to government workers, of course. It may sound nice and patriotic when the president calls it “public service,” but it seems less so when you realize that government workers now earn, on average, more than private sector workers. Perhaps the fact that public employee unions are a big spending political powerhouse for Obama and Democrats matters in some small way.

Alas, more vote buying.

The president used an interesting phrase, explaining what he’s up to. He instructs us to “take that money” now loaned by banks and “give to families.” This is pseudo-specific. It’s not the same money.

But a politician obscuring the real source of wealth is nothing new.

This is Common Sense. I’m Paul Jacob.

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

Do As I Don’t

Many American politicians decry any attempt to liberalize the market for grade school education. They insist that the public school system must be protected from competition. They hate charter schools, vouchers, tax credits, anything like that.

Yet many of these same politicians send their own kids to private schools.

But simultaneously promoting government-run industry, while choosing private alternatives, isn’t just an education pathology. Consider medicine.

Canadian politicians eager for medical care that really works have made it a habit to travel to the United States to get it. The latest is Danny Williams, premier of the Canadian providence of Newfoundland and Labradour. Williams recently trekked stateside for heart surgery. His office wasn’t releasing many details, but indicated that the surgery isn’t routine.

That explains it. If there’s any chance a life-saving procedure will be tricky, quality is really important.

Williams’s deputy premier, Kathy Dunderdale, told reporters that surgery in the province was never an option. She said: “He is doing what’s best for him.” I’m sure that’s true.

Folks, we can’t, just cannot, further put the American medical industry under government bureaucratic control — that is, make our health care as bad as Canada’s. There’s got to be somewhere for our Canadian friends to go when they really need the good stuff.

This is Common Sense. I’m Paul Jacob.

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education and schooling free trade & free markets individual achievement

High Marks for Marko

I wish 9-year-old Marko Calasan had the office next to mine. Then when something goes wrong with my computer — through no fault of my own, I assure you — I could yell “Hey Marko, come fix this!” Alas, he lives in Macedonia.

The CNET website has a nice profile of this genius. We learn that Marko is “perhaps” the youngest system engineer Microsoft has ever certified. He snagged his first credential as a systems administrator when just six.

Marko works for a living. He remotely manages a computer network for a nonprofit organization. The employees tell him they are “very glad that that there is a good administrator.” But he seems a little unsure of it, saying, “I think that’s true, but who knows.”

Marko also teaches computing to other kids at his school. When I heard this my spidey sense tingled ferociously. What? Has he put in his years at a teaching college? Mastered the latest labyrinthine educational theories? Where’s his teaching certificate? The kid’s an outlaw!! At least, he would be stateside.

Marko works when he works and plays when he plays. He doesn’t indulge in computer games because, as he puts it, “there is nothing serious about playing games on computers. . . . If you want to play, go outside and play with your friends.”

Yes sir! I will do that.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Disaster Economics 101

Could House Speaker Nancy Pelosi have spilled the beans, laid bare her party’s vision of economic growth in one offhand utterance?

A terrible tragedy in impoverished Haiti. An earthquake. The scope of the damage staggers the imagination . . . and spurs outpourings of charitable aid from America, and across the globe.

And this is where Mrs. Pelosi chimes in. As if she had never heard of the Broken Window Fallacy, she just blurted it out, hazarding that Haiti “can leap-frog over its past challenges, economically, politically, and demographically in terms of the rich and the poor and the rest there, and have a new — just a new, fresh start.”

Over 70,000 dead, Haiti in ruins, and she’s talking about hope for a “real boom economy.”

Now, I know, politicians like to spend money. They think it does a lot of good — though in Haiti’s case, the billions spent, previously, have sure fizzled. But Pelosi isn’t just arguing that the aid is going to remake an impoverished country. She thinks that scurrying about rebuilding is a net positive.

If you wonder why politicians so like economic booms, even the most artificial ones, look no further. They cannot distinguish between real progress and the frenzy of making up for disaster.

Perhaps that’s why they are so nonchalant about the disasters their own taxes and regulations so often cause.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Who Killed Disco?

The age of the glittery mirror ball and loud, simple dance music is over.

According to Ian Schrager, as recorded in Vanity Fair’s recent oral history of disco, it “wasn’t AIDS that made the nightclub business difficult. Government regulations did it in.”

Schrager and his partner set up their first nightclub, in Queens, for $27,000. The more famous Studio 54 — or is that “infamous”? — went up for $400,000.

“Now,” says Schrager, a major real estate developer, “with all the regulations, fire codes, sprinkler requirements, neighborhood issues, community planning boards . . . before you even put on the first coat of paint, you’re into it for over a million dollars. What it’s done is disenfranchise young people.”

And it’s not just disco that’s suffered. It’s worth remembering one sad side effect of all the red tape cities and states put up to new enterprises. It leaves the private sector desperate to focus on the surest forms of wealth generation, less able to serve niche markets. Like discos.

Nowadays, to establish and run non-school,  non-work activities for young people, volunteers organize community events, write grant applications and hold out their hats. This crowds out funding for needier, worthier charities, and litters our towns with poorly run government-funded efforts.

Personally, I don’t like disco — but could it be that things were better when entrepreneurs like Schrager set the stage?

This is Common Sense. I’m Paul Jacob.