Categories
folly too much government

Borrow It Forward

The consequences of borrowing to fund welfare states have been getting more obviously destructive. In the European Union, the fates of governments with still a few years to go to pay the piper are tethered to the fates of even more wildly profligate states.

Yet the solution most EU officials propose, aside from more tax hikes, is to lend and borrow even more. Whole governments go on the welfare roll. The countries delivering the loans in turn “borrow” from their own unwilling citizens.

When will it end?

Maybe never, if the precedent being pondered by the innovative government of Portugal is implemented and gains traction.

A court there has ruled that it’s unconstitutional for Portugal to save money by cutting the salaries of government employees. (Perfectly all right to hike taxes, though.) So the government is thinking of end-running the decision by paying workers part of their salaries in treasury bills instead of the usual funny money.

The logic is stunning. Obviously, we can pay everything we owe just by issuing IOUs! Not since Rumpelstiltskin wove straw into more straw has anybody fashioned something this magical.

Nobody need ever go bankrupt again so long as we all keep issuing IOUs to vendors and creditors. All the bad consequences of bad practices will maybe just disappear through this expedient! Incredible!!!

Maybe I’ll call up my credit-card company to explain how this works. Once I figure it out myself, that is.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets

Good Pogue, Bad Pogue

Reviewer David Pogue knows technology but often botches business ethics. Writing about T-Mobile’s decision to liberalize its cellular contact, he asserts that “the two-year contract” to which T-Mobile is offering an alternative “is an anti-competitive, anti-innovation greed machine.” He gets his dander up:

The Great Cellphone Subsidy Con is indefensible no matter how you slice it — why should you keep paying the carrier for the price of a phone you’ve fully repaid? . . . Those practices should stomp right across your outrage threshold.

Maybe outrage is called for . . . by Pogue’s demand for outrage. It’s outrageous.

Companies need not compete on every level, to every aspect of a service, in order to offer customers a real alternative. And no particular voluntary market arrangement is inherently “anticompetitive,” for it cannot in itself prevent anybody from offering costumers something different. (Only government force, a major factor not discussed by Pogue, can block competitors from competing in particular ways.) Nothing about multi-year cell contracts prevented Tracfone and others from offering prepaid plans. Or prevented T-Mobile from offering its new plan.

Or a different alternate.

Pogue’s accusations of greedy “anti-competitiveness” can be and are made with equal injustice against any successful business. But there is no set amount of revenue greater than a company’s costs beyond which profits suddenly change colors, from moral to immoral.

And nothing is wrong with pursuit of profit per se, just as there is nothing wrong with pursuing an expected benefit by purchasing products and services, popular or un-.

People expect gains when they trade. If they see no benefit, they can just say no.

This is Common Sense. I’m Paul Jacob.

Categories
too much government

Spoiled Sports

Americans get riled up by the slightest things.

As numerous Facebook posts pointed out last week, feminists across the country were incensed that their beloved president complimented a prominent woman on her looks . . . yet remained unfazed by that same presidents’ policy of killing innocent women and children with drone strikes. Amongst conservatives, Fox News host Bill O’Reilly got harsh condemnations for using the phrase “thump the Bible,” despite “The No Spin Zone” host’s long service in defense of what he calls “Judeo-Christian” culture, and his lack of any malign intent. And, in sports news, Rutgers Coach Mike Rice got the pink slip for his violent, offensive treatment of his players . . .

But there’s no “but” with this story, except as identified by Nick Gillespie at Reason.com: “there’s another, more subtle and yet more profound way that Division I college sports is abusing most college students at most schools . . . even if they never suit up for a practice or attend a single varsity competition of any sort.”

What is Gillespie driving at? Subsidy. Particularly, subsidies from government-subsidized student payments:

The vast majority of colleges — public and private — massively subsidize varsity sports directly out of mandatory student fees and other school funds. Despite the ability of top-tier teams to earn a lot of revenue via television contracts, ticket sales, merchandise sales, and other activities, most schools still hit up students in both direct and indirect ways.

Gillespie gives us some disturbing numbers: In 2011, Rutgers siphoned off $9 million in student fees and $19.4 million in general school funds while producing about $23 million in non-donation revenue. George Mason University students pay $12 million a year for sports teams that pulled in much less than a million. Only eight Division I schools balk at subsidizing their athletics departments.

I love college sports. It’s sad to think that they are corrupting academic economies, just as pro sports corrupt city and metropolitan economics around the country. All by reliance upon subsidy . . . that sports programs can do without.

This is Common Sense. I’m Paul Jacob.

Categories
Thought

Douglas Adams

If it looks like a duck, and quacks like a duck, we have at least to consider the possibility that we have a small aquatic bird of the family Anatidae on our hands.

Categories
Thought

Douglas Adams

We don’t have to save the world. The world is big enough to look after itself. What we have to be concerned about is whether or not the world we live in will be capable of sustaining us in it.

Categories
links

Townhall: Chicago, Baquba, and a Massacre Near You

This weekend’s Common Sense column essays the ground of violence. Sneak on over to Townhall.com and then rush back here for a few more citations.

Categories
folly video

Video: Bernanke, the Most Dangerous Man

David Stockman has always sported a rather strict and gloomy view of the world. But even if you have not agreed with him in the past, the world may have caught up with him. Could it be that his vision of the near future is more likely than ever?

Categories
initiative, referendum, and recall

Know Your Rights

Last year, Angela McCaskill, the Chief Diversity Officer at Gallaudet University, was placed on leave from her job for simply signing a petition.

That was a violation of her rights, plain and simple.

Well, someone in Wisconsin just lost his job for signing a petition. But there is a difference.

On Tuesday, Circuit Judge Tom Wolfgram in Ozaukee County, Wisconsin, was defeated by a better than 20 point margin in his bid for re-election. Never before had Wolfgram, a three-term, eighteen-year incumbent, even faced opposition.

But then he signed the petition to recall Governor Scott Walker.

The petition successfully triggered a recall election, but proved unsuccessful in removing Gov. Walker.

But because petition signatories are a matter of public record, Wisconsinites (and the known universe) discovered that Judge Wolfgram had signed that petition to put a recall of the governor on the ballot.

The petition, or at least Wolfgram’s signature on it, triggered Wolfgram’s opponent, attorney Joe Voiland, to launch a campaign for the judicial post by attacking Wolfgram for lack of impartiality . . . for signing the Walker Recall.

Some argue that those calling to put a measure on the ballot must do so fully under the public lens. Others fear retribution to signers, equating the signing of a petition with the casting of a vote.

I fall into the latter camp. While opponents must have the access necessary to make any reasonable challenge to the validity of the signatures, that can be accomplished without allowing full public disclosure of all the personal data of those who have signed.

However, as in this case, once the public has the information, repercussions at the ballot box can hardly be prevented.

This is Common Sense. I’m Paul Jacob.

Categories
Thought

Jean-Baptiste Say

The United States will have the honour of proving experimentally, that true policy goes hand in hand with moderation and humanity.

Categories
general freedom national politics & policies too much government

Flight to Freedom

One of the more inspiring perennial stories of my youth were of defectors, people who left their Communist-controlled countries to reach freedom . . . on American soil.

Many, many Soviet and Eastern bloc subjects smuggled themselves out of their countries, or “jumped ship” while visiting the U.S. or other Western nations. The list of freedom seekers is long, impressive, and inspiring.

And this isn’t just “ancient history.”

After an international tour, seven members of Cuba’s National Ballet were confirmed by homeland sources as “not having returned.” And a Cuban exile website has informed us that six of the defectors are now in the U.S., while the seventh remains in Mexico, where the troupe had broken free:

“We were intent on seeking a better artistic life and economic well-being for our families,” Cafe Fuerte quoted one of the group, Annie Ruiz Diaz, as saying.

Correspondents say Cuba’s National Ballet has suffered from a number of high-profile defections over the years, as performers stay abroad in search of greater creative and economic opportunities.

But this is only the tip of the proverbial floating mass of frozen water. In truth, thousands of people defect to the United States every year. Leaving their countries of origin, they flee poverty, tyranny, reckless government and outrageous criminality (too often these latter are the same thing), seeking the comparatively peaceful life found under a nation run by the rule of law.

Alas, defection is going the other way, too, as more and more Americans attempt to escape from increasingly burdensome taxation, oppressive regulations, and selective enforcement of innumerable laws.

We honor the heroic defectors from Cuba only by making the U.S. a place that fewer and fewer peaceful folks would be tempted to flee from.

This is Common Sense. I’m Paul Jacob.