Categories
free trade & free markets too much government

What Not to Blame

You’ve heard the calumny: The current economic debacle is the result of free markets.

This charge — often made with lip-smacking glee — makes no sense.

I’ve discussed some specifics, before. Here are three more points:

1. We haven’t had a free market. We live in a heavily regulated, subsidized, coddled-and-attacked, over-taxed society. If the current debacle proves any system unfeasible, then the one proven wrong is the one we have. It’s the mixed economy that has proven to have worse than mixed results.

2. Many on the left as well as on the right like to pretend that Republican talk of free markets has been effective. Both sides lie. The alleged party of “small-government” and “free markets” pigged out at the government trough, increasing the size and scope of government. To not see growth of regulation and spending and government debt under Republican governance is to not see the corpulent elephant in the room.

3. Blaming free markets is especially galling to actual proponents of free markets for a historical reason, too: Our idea grew up in reaction not to socialism, but to a system of government interference much like what we have today. Adam Smith called it “mercantilism.” Thomas Jefferson called it “Parasite Institutions.”

And it’s the parasite institutions that caused the current mess.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall tax policy

They Call It “De-Brucing”

Colorado’s constitutional amendment dubbed the Taxpayer Bill of Rights, or TABOR, has made it difficult for politicians to tax and spend like they want.

So politicians engage in all sorts of weird strategems.

Take “de-Brucing.” TABOR’s author is Doug Bruce. TABOR allows voters to make exceptions to the law’s basic limits on spending increases and taxes. So all but four of Colorado’s 178 school districts have voted to “de-Bruce” — that is, to allow more spending, more taxes, than TABOR’s formula would otherwise allow.

In this context, Gov. Bill Ritter worked hard promoting a 2007 law to freeze tax rates. This freeze was designed not to limit increasing tax revenues, but to shore up the pre-TABOR rate of increase. It passed.

What the freeze did was de-Bruce the whole state, even those four school districts that had repeatedly and enthusiastically upheld tax rate reductions created by TABOR.

And now the state supreme court has decided that Ritter’s legal maneuver is just hunky dory.

In Colorado, voters engage in lawful constitutional revisions, and politicians react with obvious unconstitutional law . . . and are backed up by the highest court. So much for constitutionality.

If I lived in Colorado, I’d be voting not to “de-Bruce,” but to “de-Ritter” . . . and be thinking about term limits for judges.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies porkbarrel politics

Failure to Lead

Politicians in Washington constantly tell us we’re in a serious crisis. But if it’s as serious as our solons say, surely it’s affected their own behavior, right?

Many CEOs of bailed out companies have sacrificed their normal salaries, accepting pay of only $1 for this year.

Members of Congress? They gave themselves a pay raise.

CEOs have been attacked for using their corporate jets. Heads of Detroit automakers were so browbeaten that they actually drove to Washington to plead for bailouts. On the other hand, after obtaining and reviewing emails between Speaker Nancy Pelosi and the Air Force, Judicial Watch’s Tom Fitton says that “Speaker Pelosi treats the Air Force like her personal airline.”

But what about substance? Faced with tough times ahead and with taxpayers on the hook to pick up trillions in new spending, Congress might stop larding on extra pork, right?

Well, how important to our nation’s survival is a million dollars to study swine odor; $800,000 for oyster rehab; $200,000 for tattoo removal; $4 million to improve a street in Hattiesburg, Mississippi?

Leaders are supposed to lead. But, even in times of crisis, our so-called leaders can only follow their oldest habit: spend.

This is Common Sense. I’m Paul Jacob.

Categories
First Amendment rights general freedom Second Amendment rights

Show-Me Madness

What if you were profiled by the police as a terrorist simply because of your political beliefs?

A new report entitled “The Modern Militia Movement,” prepared for law enforcement agencies by the Missouri Information Analysis Center, threatens just that.

The report doesn’t detail any current criminal activity in Missouri. It does suggest to police, however, that anyone opposing government bailouts, abortion, or the Federal Reserve is a potential militia member, possibly a terrorist, or both.

The report tells police how to recognize militia members. Look for literature that is “derogatory” toward the IRS, ATF, the CIA, and the like. And look also for people who support minor party presidential candidates, or one sitting Republican congressman.

Tim Neal told the Associated Press that he has become nervous about his Ron Paul bumpersticker. Hearing a litany of the tell-tale signs that a person is in a militia, he said he “was going down the list and thinking, ‘Check, that’s me.'”

Remember, it’s perfectly legal — and peaceful — to wear fatigues.

It is also legal to train, military-style, on private property. So is paintball. And both probably qualify as good preparation for all sorts of emergencies.

Governments focusing investigations and gathering “intelligence” on citizens on the basis of peaceful, perfectly legal political viewpoints is far more dangerous. And that’s happening right now in the Show-Me state.

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption national politics & policies

A Suicide-Inducing Congress?

Say you are president. You thunder about how your predecessor’s bailouts let corporate execs keep big bonuses at taxpayer expense. That won’t happen on your watch!

And then it does. AIG bigwigs take $165 million.

So you are angry at yourself, for signing that stimulus bill with its specific language permitting TARP recipients to pay bonuses if bonuses were part of contracts made before February of ’09.

Maybe somebody should have read the legislation. So who has that job? Besides you . . . I mean the president himself. Why, Congress, of course!

Iowa Sen. Charles Grassley said he would at least “feel better” were AIG executives to apologize and then either “resign or go commit suicide.”

Connecticut Sen. Christopher Dodd and New York Sen. Chuck Schumer advocate passing a special tax to confiscate all the bonus money ex post facto.

Dodd didn’t mention that he had authored the provision specifically permitting the AIG bonuses. He has now said he’ll return the $280,000 in donations he’s received from AIG executives. Schumer was mum about his $112,000 from those same execs.

Minnesota Sen. Amy Klobuchar said, “We’ve got to do whatever it takes to make sure people that basically ripped off the American people weren’t able to profit from it.”

So is she talking about AIG . . . or Congress?

This is Common Sense. I’m Paul Jacob.

Categories
insider corruption

Modern Disabilities

You expect politicians to game the system and rip off taxpayers for their own benefit. But not our police.

In Montgomery County, Maryland, 41 percent of retiring police officers now receive disability payments, and requests for disability pay have jumped an incredible 300 percent in the last year.

In nearby Fairfax County, Virginia, on the other hand, only 3 percent of retirees receive disability.

Of course, police work is often dangerous, and when officers are disabled on the job they ought to be compensated properly. Still, something is way out of whack in Montgomery County.

Former county officers receiving extra disability retirement pay have been discovered working other very physically demanding jobs — like flying commercial aircraft, or breaking up fights as a high school security guard, or serving in the army reserve.

Thomas Evans, a former county police chief, calls snagging extra disability pay “almost as easy as signing your name on the application.”

Now the feds are investigating. That’s good, but how does a system get so far out of whack?

Two factors are at work: (1) a unionized police force means constant pressure for more outlandish benefits, and (2) politicians negotiate these deals with securing the political support of the union in mind, not fulfilling their fiscal responsibility to taxpayers.

Or maybe it’s just proximity to Washington, D.C.

This is Common Sense. I’m Paul Jacob.

Categories
initiative, referendum, and recall

Scooby-Doo, Where Are You?

Remember Scooby-Doo? Debuting in 1969, the plot to every one of the cartoons is the same: Bad guy pretends to be a ghost or monster to steal something. Then he gets caught by the title Great Dane and teenagers Shaggy, Velma, Fred and Daphne. The crook then cries out, “I would’ve got away with it, if it wasn’t for those pesky kids!”

When it comes to politicians and their scary schemes, Texas voters perform the same service as “those pesky kids.”

Last year, Austin citizens voted on a measure that would have stopped the city from giving away millions in subsidies to the Domain shopping center. It failed, though, after a big campaign by city officials arguing the deal was already done and, if altered, taxpayers would be liable for millions of dollars in legal fees.

In Dallas, a measure on this May’s ballot would prohibit the city from owning a convention center. Now a group called Dallas Right to Vote has collected enough signatures to place another measure before voters allowing a public vote on any city giveaway of $1 million or more.

Even Scoob could figure the bad guys’ next move. State Sen. Jeff Wentworth has introduced Senate Bill 690 to double the number of signatures citizens must gather to put these local initiatives on the ballot.

Call Senator Wentworth at (512) 463-0125. Tell him you support those pesky kids — er, voters.

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies porkbarrel politics too much government

Homeless Red Ink

I have a prediction.

Even though President Obama insists that all of the trillions in so-called “stimulus” spending will be expertly managed and masterfully allocated — of course, to only the most deserving and stimulating beneficiaries — lots of the hastily cobbled new spending will end up being wasted.

I’m afraid I cheated with this prediction. I already have an example in hand. The town of Union, New York, is slated to receive almost $600,000 from the Department of Housing and Urban Development. Why? To combat homelessness.

Problem? There isn’t one — that is, there isn’t a homeless problem in Union. Which is why the town does not have any programs for dealing with the homeless and it has no means of administering the money that’s been flung at it. Nor did the town request the funds. Town supervisor John Bernardo says, “We were surprised. We’ve never been a recipient before.”

A less honest man would have trucked in some homeless guys and warbled, “Thank goodness we’re finally getting these funds.” But what Union lacks, Washington provides: A HUD spokesman says the new grant recipients should employ “creative strategies” in figuring out how to spend the money.

So that more than half-million dollars will find a home somewhere — anywhere but the wallets it came from.

You see why I shake my head and say, “I could have predicted this.” This isn’t change. It’s more — way more — of the same.

This is Common Sense. I’m Paul Jacob.

Categories
education and schooling

Educational Snow Flakes

Up north, it snows enough that schools can’t just close every time a few flakes fall. But I live in Virginia, just outside Washington, DC, and it doesn’t snow that much here.

Weeks ago it snowed eight inches, a lot for us. The schools in my county — and throughout the region — closed.

But in Washington, DC, the schools stayed open. And controversy ensued.

Was opening the schools unsafe? Was it a waste of money, since only a small percentage of students and teachers showed up? Or was a school day too valuable to lose?

For me, that’s all beside the point. I think a day having fun in the snow is more valuable than a yet another day in class.

This came to mind again when I listened to President Obama’s recent speech about public education. Obama wants our kids to attend school more days and longer hours. Apparently, children in South Korea go to school more and score better on tests.

Not only am I skeptical about such comparisons, and those tests, I’m totally uninterested in educating my kids to best the Russians or the Germans or the Japanese or anybody else.

To me, education is all about encouraging my kids to love learning, and then facilitating their very personal pursuit of their own dreams. It’s not an international competition demanding ever-more hours of drudgery.

So, let it snow.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets national politics & policies

Our Fairy-Tale Economy

Everybody seems to hanker to get something for nothing. Because of that universal desire, and our inability to satisfy it, we have all these fairy tales about the tragic costs of magic.

Yes, the cost of something-for-nothing can be shockingly high. In some savvy tales, audacious hopefuls wind up giving away first-born children to pay for their something-for-nothing.

For half a year, our leaders have gone on a something-for-nothing binge, throwing money at a downturned economy. Lots of money. Trillions.

Where does it come from?

Magic?

Not exactly. Politicians and financiers use complicated tricky maneuvers to gain money they don’t have.

With the help of the Federal Reserve, they can sorta create money. But that creation has costs. It makes the money less valuable. We don’t always see this right away. Right now people are switching away from spending, so a lot of new money goes into savings. When people start spending again, though, prices will rise and money’s value will plunge. Gold into lead.

Politicians also get money by borrowing. But that also comes at a cost: It must be paid back. Here, politicians play an old fairy tale game, not exactly giving up their first-born, but saddling our children and grandchildren with debt. It’s a mean, wicked stepmother kind of policy.

Maybe we should be reading more fairy tales these days. For the realism.

This is Common Sense. I’m Paul Jacob.