Category: free trade & free markets

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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.

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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.

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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.

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free trade & free markets general freedom too much government

How Not to Help Haiti

Haiti has suffered horrific devastation. It didn’t have to.

There was no way to prevent the 7.0 earthquake itself. But estimates of as many as 200,000 dead? That didn’t have to happen.

Economist Donald Boudreaux recalls that in 1989, an equally powerful quake hit the San Francisco Bay area. It caused lots of trouble but killed fewer than 70 people. But Haiti is a much poorer country than the U.S., with weaker buildings and roads, for starters.

Why so poor?

Haiti is not a free society. It’s had one corrupt tyrant after another, recently emerged from the terrorizing rule of Jean-Bertrand Aristide, who was sent packing in 2004.

Many pundits are saying that the way to strengthen Haitian society over the long haul is torrents of foreign aid. Economist Jeffrey Sachs wants Washington to spend billions on a five-year development plan, which he says it should fund by taxing Wall Street bonuses.

Charity and rescue efforts are wonderful. Government-to-government foreign aid, not so much. Haiti has remained desperately poor despite the massive flow of foreign aid, which, over the years, has mainly subsidized corruption. What Haiti needs is stability. The ability to attract investment. Less propping up of corrupt politicians. Less foreign aid, more freedom.

But a free society is something Haitians will have to build themselves.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets general freedom too much government U.S. Constitution

Know Your Rights

For years, politicians and activists have declared that we have a right to medical care. Not a right to freely contract for medical services, mind you, but a fundamental right to medical care.

This assertion serves as the moral force behind those pushing for nationalized, universal health care legislation. But can medical care really be a basic right?

Well, it’s nowhere to be found in the Constitution or the Bill of Rights.

Should it be?

Again, no.

Rights cannot involve requiring others to provide a product or service to us. We can’t simply demand, with talk of rights, the expertise and labor of doctors, nurses and other healthcare workers. Why? Because they possess the same rights we possess, in particular, the right not to be enslaved.

Watching the 2,000-page health care bill plod through the congressional sausage factory, the fraudulent nature of this “right to medical care” claim becomes painfully obvious. We’re not getting a new right from the deal. Instead, politicians are slapping us with a new mandate, forcing us to fork over our hard-earned money to health insurance companies.

If our right to freedom of speech worked this way, the First Amendment would mandate that we buy a local newspaper and sign up for cable TV or XM Radio. The Second Amendment would force us to own a gun and pay dues to the NRA.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets too much government

Browsing for Trouble

Microsoft is in less trouble today than it was yesterday.

The software maker has been in hot water with the European Union because Microsoft integrates a browser with its operating system. To avoid costly litigation, the firm has “settled” with European regulators and agreed to “offer customers a choice” of browsers in addition to its own Internet Explorer.

In the annals of crime, coupling operating systems with web browsers ranks right up there with uxoricide, armed bank robbery, and using the wrong fork with your salad. But the prospect Microsoft faced if it didn’t cave to the EU was pretty serious. The firm has already shelled out more than two billion dollars in fines to the Europeans as a result of previous bogus antitrust litigation.

Neelie Kroes, who fills the post of “European competition commissioner,” says millions of European consumers “will benefit” now that they have a “free choice about which Web browser they use.” But every online computer user has always been free to compare browsers and pick a competing one. You surf. You click. You download. Not hard.

So what’s the deal here? Big target, deep pockets. Competitors without scruples willing to enlist government guns to force Microsoft to do their marketing for them. Nothing to do with justice or anyone’s legitimate rights.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets responsibility

Economist-in-Chief

I’m not an economist. So take my advice with a grain of salt. Or two.

But hold the pepper. I’m not the only non-economist. Our president isn’t one, either.

Sure, he has economists on his staff, but I’ve more than just begun to doubt their wisdom.

Take his latest advice to banks: “Go back and take a third and fourth look” at operations . . . and “explore every responsible way” to put their money in the hands of small and medium-sized businesses with current loan applications.

We can all agree it’d be nice to get rolling like we were before the bust.

But I bet bankers are trying to learn something from the bust, something about booms. They have every reason to be super-cautious. What if the current situation remains a house of cards, one that could come a-crashin’ at any moment? Lending money out now, in questionable cases, would be a horrid waste of capital.

I know that presidents are now cheerleaders for prosperity. One of their jobs, in the modern interventionist economy, is to pretend that prosperity is always right around the corner. Even if it isn’t.

But bankers have a different job. That job is to not lose money. And if they are now afraid tht in making a loan they might not get their money back, no amount of “advice” from our alleged economist-in-chief should change their minds. It’s called “fiduciary responsibility.”

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Head Over Heals for Stimulus

Which thinker is more relevant right now, Lord Keynes or Naomi Klein?

We’ve hit hard times. The Keynesian advice is to spend a lot of taxpayer money to make up for the lack of private spending, thereby jump-starting the injured market order.

Naomi Klein, on the other hand, is best known for her book “The Shock Doctrine,” in which she charged that free-marketers were conspiring to use social and economic crises as excuses to “take over” and remake the world in their favor.

Let’s look at the evidence, shall we? We’ve hit a crisis. The government has done the Keynesian thing. Unemployment went up, but . . . who has made the biggest gains?

USA Today reports that federal workers are enjoying a boom in both employment and salaries. “Federal employees making salaries of $100,000 or more jumped from 14% to 19% of civil servants during the recession’s first 18 months” — and that’s not counting overtime and bonuses!

It’s not markets being stimulated, here, but government.

Not only is this Keynesianism on its head, but Naomi-Kleinism, too. Those who have taken advantage of the crisis are the ultimate insiders. As a Washington Examiner editorial puts it, “bad times for the rest of us are good times for the federal establishment.”

We could wish Naomi Klein were right.

But things aren’t getting better because she’s wrong.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Virgin Galactic’s Latest

It seems like only yesterday that Burt Rutan flew SpaceShip One into near-orbit and received the Ansari X-Prize for piloting the first manned private craft into space.

But it’s been five years.

Things have happened in the meantime. To be specific, SpaceShip Two, just unveiled.

It’s a much larger ship than the original, capable of carrying six passengers as well as two pilots. It has more windows. I like windows.

A year or so ago the company, Virgin Galactic, had shown off their White Knight Two, a twin-fuselage aircraft designed to ferry SpaceShip Two high into the atmosphere.

There’s still a lot of work to be done before rich people can actually trek up into space. Yes, space tourism is a few years away. But it’s coming, and it’s important.

As long as space is a government-subsidized and -organized industry, it will suffer from the usual problems associated with bureaucracies and politics.

But let’s give NASA its due: Those scientists and engineers took the risks, squelching the screechings of many folks who, these days, don’t approve of burning any kind of fuel, really, or risking anyone’s life. Think of the lawsuits that would have happened — the OSHA violations, for instance — had private industry been allowed to start this!

Now, it’s high time for private enterprise to take over. To make space flight rational. And fun, again.

This is Common Sense. I’m Paul Jacob.