Category: national politics & policies

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national politics & policies too much government

Fine-Tuning the Shackles

Loathe handcuffs and leg irons? No problem. We’ll adjust the restraints slightly. Shave a gram off the weight. Paint them a new color. And throw away the key.

Feel liberated?

Nobody in a chain gang would be fooled.

But the Obama Administration expects phony “concessions” in the implementation of last year’s Patient Protection and Affordable Care Act (“Obamacare,” for short) to be treated as a sign of generous and reasonable compromise. The president supports an amendment to the health care law that, according to the New York Times, would “allow states to opt out of its most burdensome requirements three years earlier than currently permitted.”

If you dislike the program’s taxes and mandates, which after all constitute Obamacare’s most burdensome requirements, you’d approve. Right? All we need do is move in 2014 to some state that has opted out . . .

Not so fast. The state programs would have to cover just as many people and be just as “comprehensive and affordable” as the federal program. How to do this except by forcing people to participate?

The amended legislation would also allow states to establish single-payer systems in which the state government is the only insurer of health care. Compromise?

As Michael Cannon observes, “President Obama’s move is not about giving states more flexibility. It’s about moving the nation even faster toward his ideal of a Canadian- or British-style single-payer health-care system.” Which is where Obama and many Democrats have been hankering to go all along.

This is Common Sense. I’m Paul Jacob.

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

Why Such Slow Growth

Why such slow growth, after the federal government spent trillions to spark recovery?

Could it be that binges of throwing borrowed money around don’t matter? Spending money can’t be the solution if the problem is low or dark expectations of the future — and the spending of borrowed money feeds that dark view.

So what is the solution?

Well, take a step back. According to economic historian Robert Higgs, the key to economic growth is “private domestic business net investment.” And that’s down.

The peak occurred in 2007. The next two years saw the very opposite of growth, a precipitous fall in investments in private business. Last year, Higgs tells us, “net private investment increased smartly for three quarters, reaching an annual rate of $270 billion in the third quarter, then contracted sharply — by almost 47 percent — to $144 billion in the fourth quarter,” which is about a third of what it was at peak in 2007.

“Jobs,” which everybody’s thinking about, don’t come from spending as such. New jobs happen when people who save take their unspent money and invest it in production processes that they hope will yield goods that consumers in the future will spend money on.

So, private investment depends on positive expectations, a kind of rational hope.

What could government do?

Provide less reason for fear by putting a halt to doing things that elicit rational fear instead of rational hope.

Saner government, more productive economy.

This is Common Sense. I’m Paul Jacob.

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

Ride the Market Express

What’s the biggest expense for people in the lowest income bracket? Housing? Food? Medical care?

No.

It’s transportation.

Across all income levels, transportation comes in as the second largest expenditure. It’s a big deal.

Places to go; people to see. Often, it’s business to do. Our way of life depends on moving things and people around.

The Washington Post headlined a recent story, “Infrastructure is a priority, survey shows, but paying for it isn’t.” The implication? Americans want a free lunch.

That’s bad. But not true.

The Post should have made it clear that people are specifically skeptical about “paying for it” through higher taxes. The Rockefeller Foundation Infrastructure Survey found that over 70 percent of us oppose raising the gas tax, 64 percent are against adding tolls to existing highways, and 58 percent aghast at the thought of a tax on each mile driven.

However, the survey’s most interesting number was 78 — that’s the overwhelming percentage of Americans who want private sector investment in transportation projects. As consumers, we know we’re not responsible for all the costs and cost overruns involved in bringing most products or services to market. When we decide to purchase something we do pay some of these costs, but not before. Privatizing transportation would allow market forces like “price” and “consumer demand” to get better transportation to market, with investors — not consumers — taking the bulk of the risk.

Or we could let politicians and bureaucrats continue to make things worse.

This is Common Sense. I’m Paul Jacob.

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national politics & policies too much government

Brew Stronger Tea

The Tea Party’s House Republicans have begun work, outlining a “plan to attack the federal deficit. The result: A proposal to cut $100 billion,” which amounts, in the words of Tom Mullen, on LewRockwell.com, to a mere “[s]even percent of the deficit.”

Disappointing. But wait, Mullen goes on, “if history has taught us anything, it is that this isn’t ‘just the beginning,’ with more substantial cuts to follow. This will be the high water mark as far as reduction in government spending is concerned.”

Mullen then offers an alternative venue: The states should unite in defiance of Washington, authorizing and defending citizens who withhold income tax payments until Congress balances the budget. He calls this “interposition.”

Radical, yes. But it will prove even less effective than our first House’s first foray.

Why? Many of the states are in just as bad a financial shape — or worse — than the federal union, and are presumably right now primping for federal bailouts.

What to do?

Brew stronger tea.

And throw it at Congress.

No state bailouts. The only thing the House can do, alone, is prevent more debt. Don’t raise the debt ceiling, and force President Obama and Democrats in the Senate to take budget cuts seriously — big budget cuts — now.

As I wrote a few days ago, let’s put the federal government onto a cash, pay-as-you go finance plan immediately. This would require, certainly, no small amount of courage from House Republicans.

Brew stronger tea.

This is Common Sense. I’m Paul Jacob.

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national politics & policies too much government

Help Us Help Ourselves

Hopeful about the innovations transpiring in various small sectors of fields like medicine or education?

Atlantic Monthly blogger Megan McArdle isn’t.

According to McArdle, the history of “social science” — society? — is “littered with exciting programs that promised to both significantly improve the lives of the targeted populations, and to save money.” Yet average costs of education and health care keep going up.

Gee willikers, why?

Scalability. McArdle suggests that successful but small-scale experiments have expertise and enthusiasm going for them that can’t be readily replicated on very large scales. The positive effects of the small programs tend to disappear when people who don’t want to change their ways have to sign off.

She says that this isn’t a medical or educational problem but a social one.

What kind of social problem? McArdle doesn’t say.

But compare and contrast. Do small-scale innovations in electronics and computers, for example, tend to dissolve into puddles of social lethargy and recalcitrance even if they achieve substantial improvements at lower cost? Apparently not. So what’s the difference? Well, hardware and software firms may be taxed and regulated by government, but they’re burdened with nowhere near the level of bureaucracy that swaddles schooling and medicine.

In free markets, bad solutions don’t get entrenched. Good ones don’t either, unless they prove economically viable over time.

So how about removing the shackles and just letting us function as free people — in every realm of human endeavor?

This is Common Sense. I’m Paul Jacob.

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national politics & policies too much government

A Fearsome, Fiery Cliché

Senator Chuck Schumer insists that it would be the height of irresponsibility either to freeze the federal government’s debt ceiling or “shut down the government.” Either action would risk “the credit markets losing some confidence in the United States Treasury” — tantamount to “Playing with fire.”

The opposite of his point appears closer to the truth.  Michael Tanner explains that “If the debt ceiling is not increased, the Treasury can prioritize interest and debt payment to avoid a default and essentially put the government on a stringent pay-as-you-go basis.” Economist Robert Murphy adds that “even if the debt ceiling weren’t increased, the Treasury could still roll over its debt as existing bonds matured. The only thing the Treasury couldn’t do would be to issue more debt.”

The truth behind Schumer’s clichéd metaphor is this: He and his cronies have been “playing with fire” for a long time. And it’s worth noting that forcing the Treasury to switch to pay-as-you-go would likely have the opposite effect on credit markets than he contends: When prodigal spenders cut up their credit cards and continue to pay existing bills, creditors tend to breathe a little easier.

But expect no such acumen from Schumer, who, in that same exhortation, lists the “three branches of government”: The House, the Senate, and the president. Apparently, he hopes to gain authority for his contentions by piling factual error upon cliché.

This is Common Sense. I’m Paul Jacob.

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First Amendment rights general freedom national politics & policies too much government

The Kill Switch for Freedom

The Egyptian government — or perhaps a mysterious inter-dimensional vortex, we’re not sure which — has shut down some 99 percent of the Internet within Egypt as protests mount demanding that President Hosni Mubarak step down. Mubarak has ruled autocratically for three decades and the protesters are fed up. Facebook, Twitter, YouTube and other cyber-tools have played a part in their protest, helping them document Egyptians’ clashes with authorities in word and image.

Declan McCullough, a veteran reporter on privacy and the Internet, observes that the Egyptian government is “conducting a high-profile experiment in what happens when a country with a $500 billion GDP, one that’s home to the pyramids and the Suez Canal, decides that Internet access should be restricted to a trickle.”

Meanwhile, back at the ranch, U.S. pols like Senator Joseph Lieberman are again pushing a bill to give the president authority to “declare a cybersecurity emergency” in the event of a crisis and shut down major portions of the Internet. For our own good, of course. No judicial review would be necessary before the executive branch could snap the cyber-spine.

Perhaps American politicians who advocate letting the president throw a so-called kill switch for the Internet in case of emergency would deny any tyrannical intentions. And perhaps their motives are indeed pure . . . in some aesthetic sense. But once you give government new authority to exercise destructive control over us, there is, of course, the temptation to use it.

This is Common Sense. I’m Paul Jacob.

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ideological culture national politics & policies too much government

Tyrants Are Not Our Friends

Last month, an upset apple cart led to political revolution.

On December 17, Tunisian government agents tried to confiscate Mohamed Bouazizi’s livelihood. When he refused to hand over his produce, he was slapped by a female inspector and then beaten by two of her colleagues, who took his scale. When he went to the municipal building to get his property back, he was beaten again.

Later that day in the public square, Bouazizi doused himself with lighter fluid and set himself on fire. He died weeks later, but not before demonstrations erupted in his home town and spread throughout Tunisia.

Tunisians had long labored under the repressive dictatorship of Zine el-Abidine Ben Ali, who repressed both political speech and commerce. No longer. He’s been ousted.

So do our leaders celebrate with the Tunisian people? No. The New York Times reports that Ben Ali was “an important ally of the United States.” He’s now in exile in Saudi Arabia, another dictatorship allied with the United States.

Protest has spread further, most notably to Egypt, yet another repressive government supported by America’s State Department . . . and taxpayers.

Secretary of State Hillary Clinton reassures us that, “the Egyptian government is stable and is looking for ways to respond to the legitimate needs and interests of the Egyptian people.”

That response? To imprison and torture bloggers and opposition political leaders.

Our most effective aid to Africa would be to stop subsidizing repressive regimes and pretending that slavery is freedom.

This is Common Sense. I’m Paul Jacob.

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free trade & free markets ideological culture media and media people national politics & policies too much government

What Gets Lost in Washington

The current battle over “health care reform” is a great example of why representative government frustrates.

It’s not just that the vast majority of Americans who oppose the Democrats’ bill didn’t get their way. It’s that the proponents of socialized medicine (and that’s the real goal, here: The eventual complete government takeover of medicine) are playing a sort of obstacle-course race . . . as I argued yesterday.

Meanwhile, how the anti-Obamacare message hits Washington vexes, too.

Some partisan pundits and pollsters go so far as to say that the Democrats’ reform legislation suffers because it lacks a good name. “The Patient Protection and Affordable Care Act” is not a catchy moniker. “Obamacare,” used primarily by its opponents, is super-catchy. And the Republicans repeal effort is pretty clever: “Repealing the Job-Killing Health Care Law Act.”

Though “job-killing” may reference a hot, current topic, it is far from the most salient thing one might say against the Democrats’ rushed-through plan.

Standard politics: Even when politicians do the right thing, they push it for the wrong reason.

Media folk are now beginning to spin the popular opposition to Obamacare. Carefully worded polls “prove” that Americans aren’t overwhelmingly against the plan.

Which misses the real point: Incredulity. Democrats ballyhooed the notion that further government intervention into medicine would reduce costs. Nonsense, of course. And Americans know it.

That common-sense skepticism is precisely what gets lost in all the politics.

This is Common Sense. I’m Paul Jacob.

Categories
ideological culture national politics & policies too much government

The Ratchet Still Holds

Government grows by a ratchet effect.

When Democrats gained unified control over Congress and the Executive Branch in 2009 they understandably moved to increase the size and scope of government, rather than, say, swiftly follow through with President Obama’s various promises to withdraw from foreign interventions. Adding new stuff? More politic.

Thus the legislation called (by opponents) “Obamacare.”

Democrats hoped that the wide number of people who would bear the initial costs would soon forget about them (the reform is already causing substantial increases in private insurance rates) while the smaller group of people who make obvious gains in services would solidly rank behind the reforms.

A slight miscalculation. Americans reacted against Obamacare immediately, and gave control of the House back to the Republicans.

Who, yesterday, voted to repeal Obamacare.

But since Democrats control the Senate, the bill will die there. If by some miracle it passed, the president will veto.

In the ratchet they trust.

Hoping dispersed costs will eventually be lost sight of, and feeling certain that the concentrated effects will indeed nurture a voting bloc, progressive Democrats see a bright future for ever-expanding government incursion into medicine. As with most government encroachments, if it doesn’t work as advertised, more intrusiveness will be the next proposal for “reform.”

So far Democrats have plied their obvious advantage, reducing the repeal effort to symbolic action. Let’s hope Republicans can muster something more.

This is Common Sense. I’m Paul Jacob.