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free trade & free markets political economy

Unconscionable Greed!

It’s easy to blame others for greed. And when prices rise, I suppose I can imagine being so upset that … well, if not my mind, Bernie Sanders’ mind … would become unhinged:

“Greed. Greed. Greed. While Americans are struggling at the pump,” the senator tweeted on Friday the 13th, “in the first three months of this year, oil and gas companies made over $41 billion in profits, more than double their profits from last year. The problem is not inflation. The problem is corporate greed.”

That’s Bernie Sanders for you. It’s not government profligacy or Federal Reserve monetary policy or the Biden Administration’s anti-​fossil fuels agenda … or supply-​line problems, persisting COVID-​lockdown effects, or anything else.

Just greed.

But is greed somehow cyclical? Why were greedy corporations providing cheap gas a year ago and then able to raise it only under Democrats’ rule?

Alas, Bernie isn’t the only low-​brow demagogue in the Senate. There’s Senator Elizabeth Warren pushing a new “price gouging” bill.

So, just as Bernie never answers “why is greed so successful at gouging now?,” how does Liz answer the burning question “how can we objectively define ‘price-​gouging’?”

As journalist Catherine Rampell observes on Twitter, the senator’s definition in the bill is less than enlightening: “price-​gouging” is “just pricing that is ‘unconscionably excessive.’”

Now that, Senator Warren, is unconscionably vague.

And incidentally, aren’t both senators on the record as demanding higher gas prices to usher in “green energy” to “save the planet”? This all seems unconscionably … deceptive.

This is Common Sense. I’m Paul Jacob.


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News, Bias & Winning

In late February, ABC News suspended a veteran correspondent, David Wright, after Project Veritas released video in which the reporter acknowledged he was a socialist and criticized his network’s political coverage.

“Oh yeah,” Wright responded, when asked if he were a democratic socialist. “More than that I would consider myself a socialist.”

He also critiqued his network: “We don’t hold [Trump] to account. We also don’t give him credit for what things he does do.”

“David Wright has been suspended,” ABC said in a statement, “and to avoid any possible appearance of bias, he will be reassigned away from political coverage when he returns.”

But what if ABC’s removal of the reporter were more about hiding bias than combating it? 

That story came to mind while considering Sen. Bernie Sanders’ suspension of his presidential campaign. I was amazed at how — just when it seemed the Vermont senator might have an actual shot at capturing the Democratic nomination — a whirlwind of harsh media coverage was unleashed. Simultaneously, other candidates rushed to end their campaigns in a coordinated coronation of former Vice-​President Joe Biden.

“Many of Sanders’ allies believe he was inundated with unfair attacks after his Nevada win,” The Boston Globe reported, with “some Democrats and pundits warning he would lose to Trump because he’s too far to the left.”

Meanwhile: “The Biden campaign is expected,” noted The New York Times, “to highlight a series of policy positions that show how he has moved closer to Mr. Sanders on health care and other issues.”

For Democrats and uber-​progressive major media outlets, was Bernie’s problem that he’s a socialist? Or his openness and honesty about it?

Seems winning trumps everything. Pun intended.

This is Common Sense. I’m Paul Jacob.


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Running Interference

When rumor of “Russian interference” in the 2016 presidential election hit the news, my first thought was: electronic/​computerized voting machines — they are known to be insecure, easy to rig.

But when it turned out that folks at CNN and MSNBC were hyperventilating about a very clumsy ad campaign on social media, designed to seed discord more than secure an election for any particular candidate, I rolled my eyes.

I also remembered that the Steele Dossier underpinning the whole bizarre “Russia hacked our elections!” investigation was itself an example of foreign state and private actors seeking to “hack our elections.”

Long story short: when we talk about “hacking elections,” we should worry about compromised vote-​counting systems, not Facebook ads.

Maybe that’s why when I read “These Canadians can’t vote in U.S. elections, but they’re campaigning for Bernie Sanders” I didn’t panic, I chuckled.

And maybe raised an eyebrow.

My generally ho-​hum reaction is the result of my trust in the American people. The voters are in charge, in the end. Sure, young Canadian communists and communitarians and the like cannot vote here, but they sure wish to influence the election.

Interference?

No. Even if they are unwise, and not citizens, let them express their values.

Hey: maybe one reason I am “soft” on “foreign interference in our elections” is that “interfering” in elections is just a nasty way of describing what I do when I petition in Oklahoma or Colorado to help enable citizens to decide an issue, or join a march against totalitarianism in Hong Kong.

The struggle for freedom is worldwide.

Dare to interfere.

This is Common Sense. I’m Paul Jacob.


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The C‑Word Emerges

“We’re not going to throw out capitalism,” declared Michael Bloomberg, the billionaire former New York City mayor now seeking the Democratic Party’s nomination for president. 

“Other countries tried that. It was called communism and it just didn’t work.”

Bloomberg was responding to a question by MSNBC’s Hallie Jackson at Wednesday night’s Las Vegas debate regarding his thoughts on Sen. Bernie Sanders’ proposal to “require all large companies to turn over up to 20 percent of their ownership to employees over time.”

“Let’s talk about democratic socialism, Mr. Bloomberg,” countered Sanders. “Not communism — that’s a cheap shot!”

But is it? 

The Vermont Senator has a long history of offering effusive praise for repressive socialist and communist regimes, including the Soviet Union, Cuba, and Nicaragua. After lauding the late Fidel Castro for providing healthcare and education and “totally transform[ing] the society” — while ignoring Castro’s complete disregard for human rights — Bernie judiciously added, “Not to say that Fidel Castro or Cuba are perfect, they are certainly not.”

Sanders has also called for “public ownership of the major means of production.” Unlike Karl Marx, I guess Bernie doesn’t sweat the small stuff.

“What a wonderful country we have. The best-​known socialist in the country,” offered Bloomberg, referring to Sanders, “happens to be a millionaire with three houses! 

“What did I miss?”

Asserting a need for a second residence, the Vermont senator replied, “Well, you missed that I work in Washington.” 

“That’s the first problem,” Bloomberg interjected.

The first of many.

This is Common Sense. I’m Paul Jacob.


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Reality TV 2020

It shocked some, surprised virtually all — save Scott Adams — when mega-​branding braggart, businessman, and reality TV star Donald “You’re Fired!” Trump slapped his way to a trifecta, winning in decades-​long bastions of blue — Michigan, Pennsylvania, Wisconsin — en route to his “landslide” Electoral College win.

How could a candidate viewed negatively by 61 percent of voters mere days before the election possibly win? 

Well, consider the alternative: Hillary Clinton’s negatives were 52 percent in that same poll. Moreover, two-​thirds of voters harboreddoubts about her trustworthiness.” 

Entering Trump Year IV, the president’s approval rating remains under water, and, following the House impeachment, he’s being tried in absentia in the Senate. Plus, the Democrats get to choose a low-​negatives/​high-​positives candidate to run against him.

What could go wrong?

Everything.

Except for promising to give away free stuff to everyone, it’s all very unsettled. Even The New York Times, “in a break with convention,” if not reality, has endorsed two candidates: Senators Elizabeth Warren and Amy Klobuchar.

Klobuchar? She’s stuck in seventh place in New Hampshire. 

Four candidates vie for the lead two weeks before Iowa and three weeks before New Hampshire: former Vice-​President Joe Biden, South Bend Mayor Pete Buttigieg, Senators Sanders and Warren. “Sleepy Joe” tops the latest Iowa poll while self-​declared socialist Bernie leads in New Hampshire — and pushes ahead of Biden nationally

And to meet Sanders’ surge? 

Mrs. Clinton. 

Being lovable. 

As always.

Of the current Democratic front-​runner, “Nobody likes him,” Hillary sniped, channeling her inner Mean Girl. “Nobody wants to work with him, he’s got nothing done. He was a career politician. It’s all just baloney and I feel so bad that people got sucked into it.”

Cluster-​yuck 2020 is Reality TV at its best. 

This is Common Sense. I’m Paul Jacob.


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Revolutionaries for Bernie

It seems like just last week we were arguing about how it is not OK to go around “punching Nazis.” 

Now we have a Bernie Sanders campaign employee fuming about putting people he disagrees with into “re-​education camps.”

“The only thing that fascists understand is violence,” said a Field Manager in the campaign’s Iowa office, as caught on all-​too-​candid camera by Project Veritas. “So, the only way you can confront them is with violence.”

It is one thing to get called a “fascist!” or “Nazi!” by a leftist for disagreeing with a leftist, it is another thing to be sucker-​punched by a leftist for disagreeing with a leftist — and something far, far worse to be put into a concentration camp for expressing non-​leftist-​approved views.

His name is Kyle Jurek. Project Veritas has certainly not dubbed him a typical Bernie voter. His views are described as “extreme left-​wing fringe,” and the utility of the clandestine recordings, taken over months, said to lie in the insight they provide “into the mentality of many Sanders staffers and what they truly believe.”

Jurek’s beliefs include extra-​legal violence and Soviet Gulag revisionism, expressed with f‑bombs and mf-​barrages. “You want to fight against the revolution, you’re going to die for it, mother — ” Jurek lashes out at “fellow” Democrats … and MSNBC … and Trump voters. He talks about setting Milwaukee afire. And not rhetorically.

 We’ve long worried about the Vermont senator, who has defended horrific Soviet and Cuban rule throughout his long history of communist apologia.

I guess the real test is how Jurek’s comrades — er, fellow Sanders supporters — react to the revelations. 

This is Common Sense. I’m Paul Jacob.


N.B. As this commentary posts, the only official response has come from the Iowa state director for the Sanders campaign, Misty Rebik, who dismissed the video, saying, “The hundreds of thousands of Iowans we’ve talked to this caucus season don’t care about political gossip …” Jurek has not been dismissed. A search of the Washington Post and New York Times websites show neither paper has reported on the story.

The Babylon Bee made the obvious “democratic gulag” joke.

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Bernie and Economic Law

One of the things Vermont Senator Bernie Sanders is known for is his push for a $15 per hour “living wage.” But this is politics — a policy position is never complete until its advocates demonstrate just how idiotic the policy actually is.

As Bernie just did.

His presidential campaign has been embroiled in labor union negotiations and a mini-scandal.

Some staffers have been paid a flat salary, not according to a per-​hour contract, making Bernie’s “living wage” commitment a bit murky. You see, these salaried employees worked longer hours than a typical 40-​hour work week (as is common in political campaigns), dipping their wage breakdown below the $15/​hour “minimum.” 

Now, no one is more deserving of this bit of policy blowback than resplendent millionaire Bernie Sanders.

Yet, it’s his campaign’s response that is especially droll: reduced hours!

So, while in one sense staffers got a pay raise, they did not get more money. Which is, as Matthew Yglesias acknowledged at Vox, “exactly the point that opponents of minimum wage increases are always making — if you force employers to pay more, they’re going to respond by cutting back elsewhere.” 

Ryan McMaken, at mises​.org, dug deeper, noting that there are a number of ways that the new union deal could amount to cuts in real wages. By “cutting worker hours, the Sanders campaign elected to provide fewer ‘services’ in the form of campaign activities. In practice, this will likely mean fewer rallies, less travel, or fewer television ads.” Less chance for growth. And decreased likelihood for increased employment of other workers.

Not exactly shocking. But a lesson. A terrible way to run a business.

Or a campaign. 

Perhaps we should say, “Thanks, Bernie!”

This is Common Sense. I’m Paul Jacob.


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Are You Truly Free?

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free trade & free markets ideological culture national politics & policies

Pick a Number

Is the number 15 “magical”?

The “democratic socialists” now dominating the Democratic Party first went for the $15 national minimum wage notion. Now it’s a cap on consumer credit interest rates, at 15 percent.

What’s next, 15 mph speed limits? Age 15 allowed to vote? 

Fifteen men on a dead man’s chest?

At Reason, Peter Suderman explains why “Bernie Sanders’ New Plan Will Make It Tougher for Poor People to Get Credit Cards.” The arguments proffered by Senator Sanders and his House co-​sponsor, Rep. Alexandria Ocasio-​Cortez, more than “suggest that people who choose to use payday loans don’t, and perhaps can’t, understand the choices they are making.… It is a form of benevolent condescension built on the belief that poor people can’t count.”

Now, it may be that, generally, poor people do not figure their finances as well as better-​off people. In fact, that’s demonstrated in the literature. But is that really the point?

The problem is, the methods they choose to help the poor make the poor less well-​off. Because they take away options: “What Sanders is actually bragging about is eliminating choices,” Suderman explains. “In essence, Sanders is proud of having eliminated useful financial tools for the poor.”

What’s really going on here is the magic of persuasion. Fifteen is a “sticky number.” It will be used again and again as self-​described socialists push for more and more unworkable government.

A bit of enchantment that just so happens to make one persuader a three-​house millionaire … and a bartender from the Bronx the talk of the nation.

This is Common Sense. I’m Paul Jacob.


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Just Like That!

“We will do that,” he said.

Do what?

“We will look at the average costs of prescription drugs in Canada, the UK, Germany, Japan and France,” says Sen. Bernie Sanders (I/​D‑Vt.), “which are 50 percent lower than they are in the United States,” he told Margaret Brennan on Face the Nation

And Sanders promises: “if I am elected president I’m going to cut prescription drug costs in this country by 50 percent so that we are not paying any more than other major countries are paying. Maybe we can do better than that.” 

When Ms. Brennan asked how, he replied as above — looking at “average costs” as directly priced to consumers (patients) —  and then … “we will do that.”

Socialism is so easy!

Why have we waited so long for utopia?

Well, saying is not the same as doing. We must think “beyond Stage One,” as Thomas Sowell advises. For if “Medicare for All” tells a company it will pay only so much for a drug, that company cannot just sell that drug and all others below cost. No wonder that in socialized medicine schemes around the world, not all drugs are even available.

The world prescription drug market is set up … peculiarly. Americans in effect pay more (because of patents and trade agreements) thereby covering development costs. If we pay less, others may have to pay more (which would be an odd thing for a “socialist” to want) and we would all come to get even less.

Bernie is no wizard, and socialism has no magic wand with which to wave away scarcity.

This is Common Sense. I’m Paul Jacob.


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