Category: free trade & free markets

Categories
free trade & free markets

Fast Lanes for Everybody, at a Price

Tolls on bridges and roads used to be common. Before the federal government began writing  humungous checks for infrastructure, the rule was to loan localities money. The feds would get paid back from tolls collected.

Earlier, private toll roads and bridges built our first good infrastructures.

There’s increasing talk, now, about congestion pricing of roads — charging more at peak hours, or for fast lane access.

Tim Rutten argues against this. In a Los Angeles Times op-ed called “Congestion pricing — a slippery slope to toll roads,” Rutten says that congestion pricing “discriminates against the working poor.”

Rutten imagines a low-level worker rushing from work to go to the day care center to retrieve her sick child. Driving the jammed lanes would be too slow, so she turns into the fast lane and pays money to get her child faster. Rutten says “A society that can rationalize the imposition of such pain doesn’t need to worry over how to define equity; it needs to worry about its soul.”

Yeah, right. There are costs and choices everywhere. In an emergency, spending a few bucks to help your child is reasonable. Even if you are poor.

But preventing the option from even being available?

Mr. Rutten should rethink his all-or-nothing approach. And maybe even the fantasies that jam up his own soul. Without faster lanes that cost money, the mother would have no choice at all but to sit in traffic.

Solutions that work are better than solutions merely dreamt.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets

Border Guards Confiscate Prescription Drugs

A few years ago, stories of Americans going to Canada to buy cheaper drugs were all the rage. Here’s a twist on that: Canadians going to Mexico to get cheaper drugs.

The Canadian government has been intercepting shipments and travelers at the border and confiscating the drugs.

The drug in question is Thalidomide.

You no doubt remember this drug for its horrific side-effects, in babies.

But it is still used — by people who won’t get pregnant — to treat a rare form of cancer. It turns out that it’s one of the better drugs on the market, extending the lives of sufferers from myeloma.

Trouble is, only one province pays for one version of the drug. Other versions are illegal. Canada’s socialized health care system does not approve of cheaper versions of the drug hailing from Mexican factories. Those factories haven’t gone out of their way to deal with side-effects.

So Canada confiscates Thalidomide as if it were cocaine.

Do you ever get frustrated hearing these tales? I do. I don’t know about your frustration, but it seems to me that if someone’s going to take the trouble to go out of the country to buy a drug to treat themselves, the full weight of responsibility for safety and side-effects — as well as the choice — should fall on his or her shoulders.

Not the government’s.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability free trade & free markets too much government U.S. Constitution

Stop Unconstitutional Stomping

Here’s an idea about how to help businesses survive in this troubled economic climate: Stop allowing an unaccountable regulatory board — unclad by even a fig leaf of constitutionality — to ride roughshod over public companies.

In the wake of the Enron scam and other financial scandals several years ago, Congress enacted a packet of onerous new regulations. This Sarbanes-Oxley legislation created a regulatory board, the Public Company Accounting Oversight Board, to issue arbitrary edicts, impose arbitrary penalties, etc.

One problem with this star chamber is that its officers are neither appointed by the executive branch nor approved by Congress, as required by the Constitution.

The Competitive Enterprise Institute and the Free Enterprise Fund want this practice to end. CEI explains that if the president were obliged to appoint and dismiss members of this board, as required by the Constitution’s Appointments Clause, “he will be on the hook for their policy failures, and thus have an interest in making them develop sound policies. . . . He won’t be able to blame the red tape on an unaccountable agency. . . .”

But the two organizations are not merely publishing op-eds and issuing press releases. They have filed suit, taking their case against the oversight board to the courts. And now the Supreme Court has agreed to hear the case.

At last, this oversight board gets some much-needed oversight.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets individual achievement too much government

I’ll Clink to That

Awards, known as the Sammies, are given annually by the Sam Adams Alliance to recognize the efforts of citizen activists fighting governmental lunacies.

This year’s winners for best video, Caleb Brown and Austin Bragg, produced a film on the anti-competitive liquor laws of Virginia.

In the interests of full disclosure, I should report that I received a Sammy this year too — partly for fighting the Oklahoma Attorney General’s attempt to jail me for supporting Oklahoma democracy. Long story made short, we won that battle.

The award also recognized my decades-long work for term limits and citizen initiative rights.

Caleb and Austin’s video is entitled “The ABCs of Virginia Alcohol Law.” “ABC” is a pun on the name of the agency spewing the nonsensical edicts, the Virginia Department of Alcoholic Beverage Control. The brief video gives you a good glimpse of the silliness, which includes violation of free speech rights.

Did you know that it is legal for a Virginia bar to sell you a beer, or a shot of liquor, or a beer and a shot of liquor, but not a shot of liquor in a glass of beer?

Or that America’s Founding Fathers would be thrown in jail under the liquor laws of today’s Virginia?

Watch the video. It’s slick, it’s funny. And it should make you mad.

For more on all of this year’s Sammy winners, visit samadamsalliance.org.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Cuba Needs Freedom

A viral video is making the rounds of Latin America. You can find it on YouTube. It’s an interview with a man on the street, and another Cuban man walks up and steals the show. He points to his open mouth. In island slang he says he’s hungry, and that “what Cuba needs is food.”

A lot of people blame America for Cubans’ hunger. And our government is now considering removing the embargo we have had against Cuba since its Communist-inspired revolution. But that should be done — or not — for reasons that have nothing to do with the motto “Cuba needs food.”

Think about it. Cuba can trade with the rest of the world. In fact, on a cash basis, even with the U.S. Plenty of opportunities to produce and purchase food.

And hey: The resorts in Cuba are well-stocked with food. Canadians and Europeans and Arabs and others visiting the island don’t complain about a lack of food.

But the common folk do.

Why?

Well, Cuba suffers from a kind of apartheid. Everyday citizens get ration cards. Their food shelves are bare. They cannot visit tourist beaches, shop at tourist supermarkets, or eat at tourist restaurants. They have to make do with the meager food they’ve been rationed.

So much for the abolition of the class system by Castro!

To feed Cubans, just one thing is needed: Freedom — an end to socialistic apartheid.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Fix Health Care?

When the president of the United States tells us that we “can’t fix the economy without fixing health care,” what do you make of it?

If you’re like me, you want to unravel the health care mess. And making it better would surely help the economy. But do I agree with President Obama?

Well, no.

The president and his party want to increase government controls and establish new government programs, the usual whatnot.

That is, the usual stuff that is precisely “what not to do.”

Instead of increasing costs by regulation, we should decrease costs by having the government stop mandating what health insurance companies must provide. Or unentangle our hyper-expensive Food and Drug Administration, with its longest and most expensive research rules in the world.

Generally, our politicians want us to emulate various socialized systems from across the globe, while ignoring the aspects of those systems that are freer than ours.

Specifically, Obama wants to set up a tax-funded Medicare system for everybody, in competition with regulated private insurance companies. And since Medicare is one of the main drivers of high prices, you can see where this will lead.

Funny thing is, our medical costs have not been shooting up these past few years as much as they were before, while in heavily regulated-and-rationed Britain, costs have skyrocketed during this same period.

I’m reminded of the Hippocratic Oath: First, do no harm.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets

Small, Dull, Solvent

You didn’t have to be a small community bank to steer clear of the helter-skelter investments favored by the likes of Bank of America and AIG. But apparently it helped.

New York Times reporter David Segal writes that spending time with solvent bankers in places like Indiana was like stepping into an “alternate universe,” a place “where everything sounds a little strange because it makes perfect sense.”

Weird that it’s strange, eh? Sensible should be normal.

Turns out, the secret is to be boring. Clay Ewing, a banker in Jasper, says, “If banking gets exciting, there is something wrong with it.” So, no maniacal juggling of hyper-complicated subprime debt instruments just for the thrill of it.

Boring bankers also tell Segal: “If you don’t understand the risk you’re taking, don’t take it.” Also: “We want to be around for decades, so we’re not focused on the next quarter.”

Today, banks that abided by such common sense are solvent. And declining government bailout money.

Profligate bankers propelled by visions of infinite if inexplicable returns were not the only culprits in the housing bust. The Federal Reserve stoked the buildup of demented debt. As did many politicians.

But bankers who made bad decisions also deserve blame for surging blindly ahead. They could have done otherwise. They could have been, well, boring.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Marginal Gains in Germany?

Germany has a goal: Introduce a million electric or plug-in hybrid cars into the transportation mix by 2020. But a recent study by the German branch of the World Wildlife Foundation projected the impact: If successful, carbon dioxide emissions would decrease 1 percent in the transportation sector, 0.1 percent in Germany, total.

That’s not much.

The trouble with switching to so many electric cars is that they rely on increasing amounts of industrially produced electricity. Which would bring additional coal-fired plants online, thereby increasing carbon dioxide emissions.

Maybe the only way for electric cars to really impact carbon emissions is to increase nuclear power production at the same time. Nuclear power is the only practical, real-world-right-now way to increase energy and reduce carbon dioxide production by an appreciable amount.

Barring such a move, switching to electric cars expending energy gained from burning coal doesn’t offset our alleged global greenhouse problems. It is true that centralized coal-burning emissions can be scrubbed for pollutants, and we might expect progress here better than progress in auto-emission scrubbers. But that helps with problem of dirty air, a very different issue.

Even big steps addressing complex ecological problems tend to produce small gains, at best. One should question how much wealth to sink for nearly infitesimally small gains.

This is Common Sense. I’m Paul Jacob.

Categories
Accountability free trade & free markets too much government

Barney’s Bubble Babbling

To hear Congressman Barney Frank tell it, he was a lone voices of fiscal reason when the surge of ill-considered mortgage debt fueled the now-popped housing bubble.

Unfortunately for Frank, this is the age of the Internet. Bloggers have proved more than willing to collate inconvenient evidence.

Thanks to Ed Morrissey on HotAir.com, then, we have two testimonies of Frank-ish speechifying. Here’s Frank in 2009:

People haven’t fully understood. One of the causes of the terrible crisis we had over the last few years . . . it came from people being pushed into buying houses, taking out loans that they couldn’t afford. Part of that was a conservative view that rental housing was a bad thing. . . . People were pushing home ownership [for] people who shouldn’t have been there.

“People in power” pushed this, eh? Which people? The irresponsible conservatives. But here’s this same sir, Barney Frank, in a clip from 2005:

We have, I think, an excessive degree of concern right now about home ownership and its role in the economy. . . . This is not the dot-com situation. . . . [Y]ou’re not going to see the collapse that you see when people talk about a bubble. And so, those of us on our committee in particular, will continue to push for home ownership.

Oh dear. Barney, just be honest already and admit you helped destroy the economy, okay?

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets national politics & policies

Schumer Should Shut It

Government subsidies give government officials a license to order the recipients around:

  • Spend on this.
  • Merge with that.
  • Get rid of this CEO.

You take our money, you take our orders. Strings definitely attached.

But there are other kinds of bullying, often more subtle than formally enacted laws and regulations applied to otherwise independent firms.

Some government goons toss their weight around in the private sector entirely outside any legislative or regulatory process. How? By “conversing” with private firms about how they conduct business.

Recently we witnessed Senator Chuck Schumer chatting with Time Warner Cable about its test of broadband metering in Rochester, New York. The cable company’s notion was to price different levels of service. Customers using huge amounts of bandwidth were charged extra for that extra usage.

In normal markets, buyers constantly communicate happiness or unhappiness with what sellers are selling, both verbally and through buying patterns. No politician had to chat with Coca Cola to convince it to bring back “Coca Cola Classic.”

But politicians like scoring political points. And companies subject to such persuasive efforts know that more than persuasion is involved. There’s also the threat of force if the company doesn’t knuckle under to the politician. So Time Warner dropped its price-tier trial.

And we’re all just a little less free today than we were yesterday.

This is Common Sense. I’m Paul Jacob.