Category: property rights

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Accountability crime and punishment folly general freedom government transparency local leaders moral hazard nannyism porkbarrel politics privacy property rights responsibility tax policy too much government

Progress, DC-​Style

gentrification, renewall, Washington D.C., corruption, crony capitalism, housing, dirigisme

Is the black, Democratic mayor of Washington, D.C., actually a “racist”? What about the city council, which is 46 percent African-​American, 85 percent Democrat, and 100 percent liberal/​progressive?

That’s what a lawsuit argues — the DC ‘powers that be’ are racist in their development and housing policies. Filed on behalf of several African-​American DC residents, it alleges that Mayor Muriel Bowser and the council have been striving mightily, as the Washington Post reported, “to ‘lighten’ African American neighborhoods and break up long-​established communities.”

“Every city planning agency,” states the complaint, “. . . conspired to make D.C. very welcoming for preferred residents and sought to displace residents inimical to the creative economy.”

Nothing that a billion dollars couldn’t make right, of course — for which the plaintiffs ask. 

But is gentrification a crime?

As American University professor Derek Hyra told the Post, “Developers want to maximize their return. This is not a conspiracy. This is capitalism.”

But no, this certainly isn’t laissez faire “capitalism.” It could be described as dirigisme — or “state capitalism” or “crony capitalism” or just a bad old-​fashioned mercantilism, revised to work at the city level, where governments partner up with particular groups to extract as much wealth for the insiders as they can. Professor Hyra acknowledges that Bowser and the council were “providing subsidies” to bring in richer citizens and push out poorer ones. 

Most importantly, we discover yet again that the power politicians claim they need to help the poor, is used to help the rich. 

Way to go, “progressives.”

This is Common Sense. I’m Paul Jacob.

 

Note: The mayor is a Democrat and the 13-​member council is composed of eleven (11) Democrats and two (2) independents. There are no Republicans.

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crime and punishment free trade & free markets general freedom ideological culture media and media people moral hazard national politics & policies privacy property rights responsibility U.S. Constitution

Wouldn’t Freedom Be … Easier?

cake, gay rights, Supreme Court, freedom of association, discrimination, law. nanny state

To bake or not to bake, that is the question.

Actually, the question was may a state discriminate against Christians in regulating “public accommodations”? The Supreme Court has decided, in a supermajority 7 – 2 ruling, that the Colorado Civil Rights Commission wrongly prosecuted a Christian baker who would not make a special wedding cake for a gay couple — while the Commission shrugged when it came to bakers who wouldn’t bake Bible verse cakes.

The ruling came down along the lines I suspected in December: Equal protection. This narrow ruling focused “on what the court described as anti-​religious bias on the Colorado Civil Rights Commission when it ruled against baker Jack Phillips,” Fox News informs us.

In his majority opinion, Justice Anthony Kennedy censured the “Commission’s hostility” to Phillips. And Kennedy recognized the root problem, the “difficult questions as to the proper reconciliation of at least two principles”:

  1. “the authority of a State and its governmental entities to protect the rights and dignity of gay persons”;
  2. “fundamental freedoms under the First Amendment, as applied to the States through the Fourteenth Amendment.”

Ah, discrimination. Has picking at this, like a scab, really increased comity? It sure would be easier were we to stick to freedom of association. 

Wouldn’t that dredge up less animus?

States should not engage in invidious discrimination. Sure. Vital.

But businesses? Must they serve anyone and everyone? Even when it requires the baker or florist to create something custom — or the pianist to perform? Especially when customers can easily go to a competitor? 

Besides, in Colorado, anti-​discrimination laws were used by government to persecute Christians. 

This is Common Sense. I’m Paul Jacob. 

 

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Accountability crime and punishment folly free trade & free markets insider corruption media and media people moral hazard national politics & policies porkbarrel politics property rights responsibility too much government

Déjà vu All Over Again

housing, bust, financial, meltdown, Government-Backed Mortgages, jail, punishment, cause

One of the stand-​bys of the post-​2008 mortgage finance bust, at least from left-​of-​center policy mavens, has been to ask: why has no banker gone to prison? They played a game of fraud and got rich. What a protected class — Cronyism! Plutocracy! Capitalism!

The why is much easier to understand if you read up on Round Two of the aughts’ boom-​bust scenario, as in Prashant Gopal’s coverage in Bloomberg, “Getting Rich on Government-​Backed Mortgages.” Gopal spotlights a non-​bank mortgage broker, Angelo Christian, who is making a killing selling houses to people with horrible credit, just as happened before 2008.

“Christian can do this kind of deal because he is, in effect, making the loan on behalf of the federal government through its most important affordable housing program,” Gopal writes. “It’s a sweet deal: He gets his nearly risk-​free commission. [His client] puts no money down. If things go south, the government ultimately bears the risk.”

So, should he go to jail?

Not really. He’s merely doing Congress’s bidding. 

Gopal notes that it is not banks that dominate this round. They are under too much scrutiny. But non-​banking loan intermediaries like Mr. Christian are swarming like flies on a cow’s behind.

There’s a problem in Gopal’s account though. “No one is saying the system is close to another collapse.” 

Well, plenty of people are saying that.

The Cassandras are just not being heeded.

Of course, they don’t know when the bust will happen.

They just know it will.

This is Common Sense. I’m Paul Jacob.

 

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Photo by Images Money on Flickr.

 

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Accountability crime and punishment folly general freedom ideological culture media and media people moral hazard nannyism privacy property rights responsibility tax policy too much government U.S. Constitution

Brave New Paternalism

Michael Bloomberg, tax, policy, nanny state, vice, social engineering, statist, technocrat

Michael Bloomberg is rich. He’s also in politics — a public health crusader.

And, for years, he “has personally funded and promoted all sorts of regressive taxes and regulations in an attempt to push people around,” the folks at Americans for Tax Reform tell us. “He uses the coercive power of the government to force people to live their lives as he sees fit.”

Onstage at a globalist event, One-​on-​One with Christine Lagarde — who is managing director of the International Monetary Fund — Bloomberg blurts out his approach to government policy regarding what he calls “those people.”

“If you raise taxes on full sugary drinks,” he says, “they will drink less and there’s just no question that full sugar drinks are one of the major contributors to obesity and obesity is one of the major contributors to heart disease and cancer and a variety of other things.”

Against the charge often made that such taxes fall heaviest upon the poor, he is forthright. Regressive? “That’s the good thing about them because the problem is in people that don’t have a lot of money.”

Notice that he is not talking about a public service campaign to help people learn how to drink (and eat) better. And he is not talking about removing all the government policies that have encouraged bad eating and drinking habits (as well as lethargy) — the government programs to encourage the overuse of high fructose corn syrup; the welfare state’s poverty trap that stifles life at the lower incomes; the subsidized consumption of food and drink — he wants to add another government program.

He can only see betterment by increased governmental bullying. 

This is Common Sense. I’m Paul Jacob.

 

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Michael Bloomberg, tax, policy, nanny state, vice, social engineering, statist, technocrat

Photo by Center for American Progress

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Accountability folly free trade & free markets ideological culture local leaders moral hazard nannyism property rights too much government

Amazon’s Jeff Bezos Is …

Jeff Bezos, Amazon, Seattle, taxes, homeless tax, business

A half a year ago, when trying to make sense of the much-​publicized search for Amazon’s “HQ2” — a second headquarters city, away from Seattle — I concentrated on the subsidies that cities and metro areas were apparently throwing at Amazon.

It all seemed desperate, indecent.

But there was a story behind the story. Amazon has every reason to be looking for an escape route from the Evergreen State’s biggest city. 

The city’s leadership is nuts. 

“Seattle City Council members have finally released draft legislation,” the Seattle Times’ Daniel Beekman wrote last month, “for a new tax on large employers that would raise $75 million next year to address homelessness.”

The council blames the big companies for enticing workers into the city, thereby driving up rental costs and housing prices.

The tax would be on employee hours, would go into effect next year, and “in 2021, it would be replaced by a 0.7 percent payroll tax on the same category of companies,” explains the Seattle Times.

Now, if you tax something you discourage that something. That’s why progressives like sin taxes on sodas and fast foods. To discourage consumption. 

So when progressives seek to tax big producers, they are apparently trying to tax away the housing crunch by driving away big business.

Amazon reacted. It put a halt to an expansion project.

“Jeff Bezos is a bully,” said Kshama Sawant, the confessed socialist, speaking for the council. “I think we are in broad agreement on that.”

If that is her attitude, and that of the council — and the consensus of the city’s denizens — then what Amazon’s Jeff Bezos really is?

A “good businessman.”

This is Common Sense. I’m Paul Jacob.

 

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Photo by JD Lasica

 

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crime and punishment general freedom ideological culture initiative, referendum, and recall local leaders national politics & policies political challengers property rights Regulating Protest too much government

A Sanctuary from Centralization

decentralize, centralize, federal and state and county, power, nullification, distributed

Defiance … nullification. It is a trend.

I take it as a sign of our contentious times that we now witness states in open rebellion against centralized control from the Imperial City of Washington, D.C., while cities and counties are also rattling the chains set by their respective state capitals.

The sweep of marijuana decriminalization and legalization is only the most obvious. The rise of “sanctuary cities” defying federal government immigration laws — often backed up by state legislatures — has been a contentious issue, with progressives supporting this sort of nullification and conservatives opposing it.

But the latest development does not hail from the left.

In Illinois, a number of rural governments have taken a cue from the immigration debate by “declaring themselves sanctuary counties for gun owners,” we learn from the AP’s Don Babwin, writing in the Chicago Tribune. “The resolutions are meant to put the Democratic-​controlled Legislature on notice that if it passes a host of gun bills … the counties might bar their employees from enforcing the new laws.”

An Effingham County Board Member calls “sanctuary” an attention-​getting “buzzword,” reporting that “at least 20 Illinois counties and local officials in Oregon and Washington have asked for copies of Effingham County’s resolution.”

Now, cities and counties do not have an analogous relationship to their state governments as do states to the federal government: the states created the “United States of America,” while cities and counties are also state creations.

Yet this move is important. It shows a growing recognition of the tyrannical nature of centralized power.

And the usefulness of decentralization.

This is Common Sense. I’m Paul Jacob.

 

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