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free trade & free markets general freedom ideological culture nannyism national politics & policies responsibility

Too Much of a Good Thing

Once upon a time, over-indulgence was considered a sin, a vice.

Not so much, nowadays.

Somewhere along the line, the idea that a little of a good thing was good, that general abundance is good, but that there can be too much of a good thing for any particular person . . . this latter common sense idea got lost.

I was reminded of this while reading the latest from the nation’s most famous investor: “Warren Buffett set himself on a potential collision course with public health campaigners when he said it was ‘quite spurious’ to lay the blame for obesity and diabetes at the door of fizzy drinks companies, such as his part-owned Coca-Cola.”

The octogenarian multi-billionaire Buffet, described as a “renowned Cherry Coke drinker,” defended not only his habit but the company that produced it. He emphasized choice, consumer choice. And he said, “I make a choice to get 700 calories from Coke, I like fudge a lot, too, and peanut brittle and I am a very happy guy.”

It came up because a university study had “linked fizzy drinks to 184,000 deaths annually worldwide.”

Well, name your poison. Some folks over-indulge in alcohol; others, food; others, fizzy drinks. But Buffet limits his Cherry Coke intake, as common sense would indicate.

Gluttony used to be a vice. It was preached against. The morality of common sense held sway in our culture.

At some point hedonism in the unrestrained sense took hold of many consumers, who can pay a heavy price — if not at the grocery, at the doctor’s office.

No new laws or regulations are needed. Let everyone, billionaire or not, add up their costs and choose.

This is Common Sense. I’m Paul Jacob.


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Accountability ideological culture national politics & policies political challengers responsibility

The Most Hated

I’ve been robbed!!!

By Ted Cruz, no less.

Yes, without so much as a passing “Howdy-do,” the Texas senator stole my cherished public mantel, simply waltzed in and snatched what was once my own special place in our nation’s capital.

You’ve heard it on the news, I’m sure. In a speech at Stanford University, former Republican Speaker of the House John Boehner lit into Sen. Ted Cruz, referring to him as “Lucifer in the flesh.” And a “miserable S.O.B.” to boot.

Boehner vowed never to vote for Cruz, adding: “Over my dead body will he be president.”

Back in January, former Kansas Sen. Bob Dole, a 34-year Washington fixture, attacked Cruz, arguing his nomination would lead to “cataclysmic losses,” and that, in Washington, “Nobody likes him.”

Can’t. Ignore. Ugly. Truth. Must. Face. Facts. Unmistakably: Sen. Ted Cruz is today . . . the MOST HATED MAN IN WASHINGTON.

Once upon a time, back in the day, I was hated. A LOT. The most, arguably.

In 1995, I was running U.S. Term Limits, battling Republican congressional leaders (an oxymoron), who were playing games to block term limits. At a news conference, then-House Speaker Newt Gingrich, never a friend of term limits, went on a tirade. One of his more colorful slings was calling us “cannibals.”

Which turned out to be a great name for our softball team.

After the Speaker’s temper tantrum, the late, great Bob Novak told me I was “the most hated man in Washington.”

Now? Well . . . campaigning in Indiana, Sen. Cruz responded to Boehner’s attacks succinctly: “What made John Boehner mad is that I led a movement to hold Washington accountable.”

Yeah, sounds familiar.

This is Common Sense. I’m Paul Jacob.


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folly free trade & free markets meme moral hazard national politics & policies

Trump’s Dangerous Idea

A lot of people were impressed by the reasonableness of Donald Trump’s foreign policy speech yesterday . . . despite the usual hyperbolic promises of “best” and “great” and “beautifully.”

Its general tenor? Refreshing. Rejecting post-Cold War foreign policy for a return to “national interest” and “America first”? Long overdue. Like Trump, I think we should eschew nation building.

But still there is that one big problem: Trump is a mercantilist. He believes in protectionism. He thinks that trade has to be “fair” in order to benefit both participants. He thinks NAFTA and similar trade agreements (which generally promoted trade while still reserving a lot of room for government futzing about) are what hurt American industry. Trump is always blaming the “bad deals” made with Mexico and China, rather than placing the blame where it squarely belongs, on

  • America’s world-high corporate income tax, and
  • chaos of regulatory excess, and
  • impenetrable tax code.

But protectionism makes sense to a lot of people. They are incredulous when they hear the (well-established) idea that free trade — even unilateral free trade — is a benefit to the people who live under it.

Surely, they snort, when you target aid or protection to some industries, you are doing good, right?

Wrong. Oh, yeah, of course protectionism protects the chosen few, the advantaged. That’s what it obviously does. But it doesn’t protect the general interest – consumers pay more and producers allocate resources to less valued uses.

You have to look beyond the obvious (“the seen”) to get the full picture (“the unseen”).

Trump’s at his most dangerous right here — forget his loose talk — by continuing to pretend that protectionism helps America.

We cannot afford another Smoot-Hawley.

This is Common Sense. I’m Paul Jacob.


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ideological culture media and media people moral hazard nannyism national politics & policies

Austan Antic, Hey!

The other day, Fox News Network’s Bill O’Reilly asked University of Chicago economist Austan Goolsbee a question.  The subject was the socialistic gimme-gimme attitude of youthful Bernie Sanders supporters. The previous segment, “Watters’ World,” had paraded interviews with a handful of college students, asking them to clarify just how much free stuff they wanted.

It was a funny segment, if you think young people talking foolishly about government is funny.

Calling Sanders “the Giveaway King,” O’Reilly asked Goolsbee his general impression of the gimme-gimme attitude. It was the softest of softball questions. “What do you think about that?”

Talk about open-ended. Any response given thus says a lot about the interviewee, seeing how broad he may answer.

“Well, look, I’ve told you I’ve never been a big fan of socialism,” spake President Obama’s famed advisor. “I’m an economics professor.” Chuckling, he went on. “I’ve got the sense you don’t want these people getting free air to breathe. You’d like them to mail in their checks to make sure they work for it.”

Goolsbee could have started off as sensibly as he ended: “I’m against free stuff. Socialism doesn’t work. . . .

He didn’t. He immediately reduced O’Reilly’s position to that of a straw man, using the reductio ad absurdum.

Why? For levity’s sake? Well, both O’Reilly and Goolsbee were jovial. . . .

But his nasty quip fulfilled a purpose, making sure that ideologues on the left continued to have license to think the worst about their opponents.

Thus Austan Goolsbee, despite his protests, carried water for crazed socialism.

This is Common Sense. I’m Paul Jacob.


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Accountability folly free trade & free markets general freedom moral hazard nannyism national politics & policies

Bailed — Before Bailout

Last Wednesday, UnitedHealthcare Group Incorporated (UNH) announced that it will drop coverage of plans under Obamacare in all but a few states by 2017.

The market signaled a thumb’s up: UNH stock prices shot up over 2 percent.

The company, described in the news, somewhat vaguely, as the country’s largest insurer, is sending us a signal: the Affordable Health Care Act and its “Obamacare”?

Not affordable.

An insurance policy must make sense to both parties, the insured and the insurer. The insured gets peace of mind . . . and coverage when the rare events insured-for take place. The insurer has written enough insurance contracts out there, prices based on actuarial risk, to allow it to make a profit even with payouts.

The problem with the ACA is that it raised costs (in part by forcing insurers to take on patients with pre-existing conditions) while regulating terms of policies offered . . . and prices, too.

Plus, face it: the idea that one should insure for regular checkups is just one of the many absurdities built into the system.

It’s just too much meddling to work, in the long run. Bailouts and subsidies of those insurance companies that stick with the plan will then make the program unaffordable . . . for America’s taxpayers.

Over-regulated and over-subsidized, Obamacare suffers from the preposterous idea that a bird’s eye view of the economy from the politicians’ perch gives enough information to run complex systems servicing millions of people with diverse needs.

Expect more big stories with tags lines ballyhooing a “serious blow to Obamacare.”

This is Common Sense. I’m Paul Jacob.


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Categories
general freedom ideological culture national politics & policies too much government

The Drinking Gourd

By now, most people are probably OK with Treasury’s plan to oust Andrew Jackson off the face of the $20 Federal Reserve Note and replace him with Harriet Tubman.

I certainly am. Ms. Tubman was a great hero of freedom. President Jackson has a more . . . mixed legacy.

The original plan to rotate Alexander Hamilton off the ten spot met with pushback as a result of his rising popularity from the Broadway play, Hamilton. Besides, Hamilton deserves blame—er, placement on the nation’s official paper money. Hamilton devised the first national banking system. Andrew Jackson, decades after Hamilton’s death, nixed that insider-mercantile scheme by refusing to re-authorize the central bank of the day, setting up a very different system for the Treasury and America’s banks.

Less than a century later, Hamilton’s idea was revived in the form of the Federal Reserve. Which we benefit/suffer from to this very day.

But in a bizarre twist, Jackson was not simply replaced. He was demoted. Tubman is to be placed on the note’s obverse, and Jackson moved to the back of the bus, er, note. The reverse.

I would have preferred to revive Old Hickory years from now, after the Federal Reserve dissolved, to be featured on a private bank’s note. After all, private banks did that for years between Jackson’s time and the modern period.

Bank notes don’t need the imprimatur of government.

That would allow us to place, on the flip side of the sawbuck, a more suitable image — of the Big Dipper, which served escaped slaves as a direction, to go north: “follow the Drinking Gourd.”

Additionally, the Big Dipper suggests bailouts, doesn’t it?

We’ll have plenty more before the system is changed.

This is Common Sense. I’m Paul Jacob.


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$20, currency, twenty dollar, Jackson, Hamilton, Tubman, illustration

 


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Accountability crime and punishment folly ideological culture media and media people national politics & policies

Story, Story, Story

David Brooks has a story to tell you.

His New York Times op-ed, yesterday, “The Danger of Single Story,” builds on a good premise: “each individual life contains a heterogeneous compilation of stories. If you reduce people to one, you’re taking away their humanity.”

Brooks puts a political edge on what otherwise might sound like a lesson in manners with his next sentence: “American politics has always been prone to single storyism — candidates reducing complex issues to simple fables. This year the problem is acute because Donald Trump and Bernie Sanders are the giants of Single Storyism.”

Brooks then asserts that Trump and Sanders share a similar story that they beat to death, “the alien invader story.”

You can see how it applies to Trump, a staunch opponent of illegal immigration. Aliens invade!

But Brooks recognizes that Sanders’s story is about “the evil entity called ‘the banks.’” Not exactly alien. This menace is home-grown.

Then our pundit moves on to issues not in the single-story vein of Trump and Sanders, and how what seem to be opposite stories (incarceration prevents crime; too much incarceration is a moral horror) can both be true.

Crime is low right now, but Brooks devotes most of this putative paean to multiple crime stories. The third Bernie story he takes a bite of, the $15 minimum wage, belies the Single Storyism charge. That is, the point of his essay.

Way to go, sophisticate.

He also draws a complete non sequitur: “Raising the minimum wage to $15 may make sense in rich areas.” Nothing he wrote gives any credibility to that. At best the hike would do nothing.

This is Common Sense. I’m Paul Jacob.


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Accountability moral hazard national politics & policies political challengers responsibility

Obscene Amounts

Actor George Clooney, star of the current Coen brothers picture, Hail Caesar!, is a major fundraiser for Hillary Clinton. When asked on NBC’s Meet the Press if the $353,000 per couple dinner he organized last Friday constituted an “obscene amount of money,” he answered, simply, “yes.”

Clooney went on to explain, “It’s ridiculous that we should have this amount of money in politics.”

He’s an advocate for campaign finance reform. He is, specifically, “against” Citizens United, though he doesn’t know that it isn’t a law but a Supreme Court case that overturned previously passed legislation that regulated what people and corporations could do to support or oppose (or mention) candidates in elections. The government, authorized by the campaign finance legislation, had suppressed a movie.

Interestingly, that movie was a polemical documentary against . . . Hillary Clinton.

Campaign finance regulation has been shown to help incumbents. Not unexpectedly, since the regulations are written by sitting legislators against their competitors.

But “getting money out of politics” would advantage other groups, too. For example, one consequence of limiting political donations would be to nudge challengers to (a) be rich and mostly self-funding (like Trump is said to be), and (b) be more demagogic, leveraging the “free” publicity from major media.

More demagogues aren’t needed.

But then, the whole issue is demagogic, appealing to the knee-jerk reaction of everyday people who are, indeed, often nonplused by how others spend their money.

As for Clooney, he’d like not to have to spend money for his candidate.

We’d all like the important things in life to just happen. But it turns out we have to work for what we want.

This is Common Sense. I’m Paul Jacob.


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Accountability general freedom government transparency moral hazard national politics & policies political challengers responsibility

Big-Dollar Impact

Last Saturday, The Washington Post’s top-of-the-front-page headline blared, “50 donors with outside impact.”

If that doesn’t curdle your blood, readers were further warned of a new “Gilded Age.” Yes, in concentrated fundraising the Post heard “echoes of the end of the 19th century, when wealthy interests spent millions to help put former Ohio governor William McKinley in the White House.”

McKinley. The horror. The echoes.

Hopefully, self-immolations can be kept to a bare minimum as Americans discover the report’s main (only) thrust: 41 percent of $607 million contributed to 2,300 super PACs this election cycle has come from just 50 donors . . . at least, if you also aggregate gifts from the relatives of these 50 folks and their business interests as well.

Isn’t that terrifying? Destructive of democracy? Are our elections simply being bought by the billionaires?

No. No. And no.

Any common sense analysis of this year’s presidential contests, both Republican and Democrat, must acknowledge that big money did not trump. Pun intended. Sen. Bernie Sanders is now outraising Hillary Clinton with millions of small donations — not “millionaires and billionaires.” Jeb Bush’s massive financial warchest made no discernible difference.  Even the Post concedes “the mixed impact that big-money groups have had on the presidential contest so far.”

Mixed? Name a single state where “big spending” determined the outcome.

Ideas matter. And securing the resources to advance and advertise ideas obviously matters, too. Same goes for candidates — and their ideas.

More money, more campaign spending, means more ideas and candidacies can reach the political marketplace. That’s where voters, not big donors, do the deciding.

This is Common Sense. I’m Paul Jacob.


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Accountability folly government transparency ideological culture moral hazard national politics & policies

Money Means Nothing to Her

Campaign finance reform is surely dead . . . if Hillary Clinton is elected president.

Which would be good.

Not Clinton being elected, mind you. What would be good is the death of so-called campaign finance reform — the kind supported by Democrats, including Sen. Bernie Sanders and Hillary Clinton. They insist on a constitutional amendment to partially repeal the First Amendment’s freedom of speech protection and give Congress awesome new powers to regulate their own and their opponents’ campaigns.

But wait — if Mrs. Clinton supports campaign finance reform, why would her election kill this seriously bad proposal?

Well, Hillary Clinton made it abundantly clear at last week’s Democratic presidential debate, as I explained this weekend at Townhall: large campaign contributions do not influence her in any way. Even a fat $15 million from Wall Street interests to her super PAC — or $225,000 a pop speeches paid by Goldman Sachs and their ilk — registers no corrupting effect whatsoever.

And those millions deposited in Clinton Foundation accounts from foreign governments?

They couldn’t possibly sway the steady former Secretary of State. Not even the smallest smidgen.

Just like there has never been corruption at the IRS.

Don’t believe Hillary? Then trust President Obama, who also gobbled up major Wall Street funding when he ran in 2008 and 2012. But again, according to her, “President Obama was not at all influenced when he made the decision to pass and sign Dodd-Frank, the toughest regulations on Wall Street in many a year.”

Not. At. All.

So the solution to government corruption is simply to elect trustworthy, incorruptible candidates . . . like Hillary Clinton.

Well, call her half right.

This is Common Sense. I’m Paul Jacob.


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