Tag: Cato

Categories
First Amendment rights free trade & free markets general freedom initiative, referendum, and recall nannyism national politics & policies privacy property rights Second Amendment rights Tenth Amendment federalism too much government U.S. Constitution

Winning Too Much?

The Human Freedom Index for 2017, CATO, Fraser Institute, and the Liberales Institut at the Friedrich Naumann Foundation for Freedom Switzerland, US, United States

“We’re Number 17!!!”

This lacks a certain triumphant note.

It is nothing like the “We’re Number 1!” the Swiss are now hollering as they pump their arms into the air, waving giant #1 foam fingers against the backdrop of snow-​covered Alps. 

Actually, knowing the Swiss, they are probably a bit more restrained. Still, you get the point.

Number 1 in what, you ask? Creamy, delicious chocolate, perhaps? Banking? Skiing?

Freedom.

The Human Freedom Index 2017, jointly published by the institutes Cato, Fraser, and Liberales, is hot off the presses. The report ranks the countries of the world on “personal, civil, and economic freedom.”

This year, Switzerland switched places with Hong Kong, which had come in first the year before. The U.S. moved up from 23rd place in 2016, but down from 2008, when we were challenging Top 10 status at Number 11.

“Weak areas [for the U.S.] include rule of law, size of government, the legal system and property rights,” according to a Cato video.

Let’s compare Switzerland to the United States. The 1848 Swiss Constitution creates 26 sovereign cantons (states), greatly influenced by our system of federalism. In the 20th century, Americans in 26 states and most localities borrowed from the Swiss, establishing a system of direct democratic checks on government — what we call ballot initiatives and referendums.

Both countries have constitutional limits on government, protecting individual rights — even from fully democratic tyranny. But in the freest nation in the world, Switzerland, citizens possess a powerful direct democratic check on their government at all levels … while we do not.

After all, we’re Number 17.

This is Common Sense. I’m Paul Jacob.

PDF for printing

 

Categories
Accountability insider corruption moral hazard national politics & policies porkbarrel politics too much government

Cronyism Pays

CATO, FEE, crony, cronyism, Washington, corruption, elites, lobbyist, politicians, privilege, power

Daniel Mitchell, a senior fellow in fiscal policy at the Cato Institute, is a nice guy. But he’s sort of depressing, too.

Weeks ago, writing for the Foundation for Economic Education (FEE), Mitchell offered that “The Washington, DC Gilded Class Is Thriving.” He even provided a “depressing chart” graphing “median inflation-​adjusted household income for the entire nation and for the District of Columbia.”

There is a graphic divide: while “the nation’s capital used to be somewhat similar to the rest of the nation … over the past 10 years, DC residents have become an economic elite, with a representative household ‘earning’ almost $14,000 more than the national average.”

Dan Mitchell highlights that “the entire region is prospering at the expense of the rest of the nation.” Among the nation’s counties, the top four wealthiest are in suburban Washington, D.C. The nation’s capital region boasts nine of the country’s top 20 richest counties. 

Now Mitchell’s back with another FEE column exclaiming more bad news: “The ROI for Cronyism is Huge.” (ROI is “return on investment.”)

Mitchell cites a study entitled, “All the President’s Friends: Political Access and Firm Value,” conducted by University of Illinois professors Jeffrey R. Brown and Jiekun Huang. “Using novel data on White House visitors from 2009 through 2015,” they explain, “we find that corporate executives’ meetings with key policymakers are associated with positive abnormal stock returns.…”

The authors find a lot evidence showing that “political access is of significant value to corporations.”

None of this should surprise. Cronyism pays, and it sticks close to power, even geographically.

This is Common Sense. I’m Paul Jacob.

Printable PDF

 

Categories
media and media people national politics & policies

Border Problems, Solutions?

Bill Maher began the panel segment of his latest Real Time with Bill Maher episode taking on the “children at the border” problem. He identified the underlying cause: drug cartels.

His solution? Legalize all psychoactive drugs, particularly cocaine.

Wait a minute. The best response to a border crisis is to legalize drugs?

Seems orthogonal to the issue. “Out of left field.”

Which is not to say I don’t support legalizing drugs. But I try not to bring it up every discussion. Could Maher have drugs a tad too much on his brain?

Be that as it may or may not, for the facts I then turned to … Cato Institute.

Only to have the good folks at Cato back up Maher’s assertions.

On July 8, Ted Galen Carpenter, a Cato senior fellow, pinpointed the growth in drug cartels’ power in Central America as central to the whole issue. The drug cartels are “driving vulnerable populations northward to the United States to enhance their own profits.”

But the whole picture is more complicated.

A month earlier, Alex Nowrasteh, Cato’s immigration policy analyst, focused on two American border policies that “likely” and “unintentionally” incentivized “some of the migration and the smugglers that carry many of the migrants,” leading to the current debacle of thousands of unaccompanied minors now being housed — in poor conditions — in detainee centers.

True to form, Nowrasteh notes that “some American politicians who blame American law for the surge actually voted for that American law in the past.”

Which is more horrifying: The idea that politicians make things worse? Or that comedians make more sense than our elected representatives?

This is Common Sense. I’m Paul Jacob.

Categories
national politics & policies political challengers too much government

Losing with Obamacare

Democrats and their many shills in the major media decry Republican intransigence and “absolutism” on the “settled matter” (un)popularly known as Obamacare. Yesterday, rather than give an inch to the House Republicans they accuse of intransigence, Senate Democrats voted to uphold the Affordable Care Act, including their own special exemption from it.

The House majority had been demanding the defunding of Obamacare as the price for keeping the government funded overall, but dropped that demand when Senate Democrats shook their heads No. Perhaps Republicans backpedalled because they surmised that they, not Democrats, would likely be blamed for the shut-​down … Sen. Ted Cruz’s valiant efforts to re-​define the debate notwithstanding.

Then Republicans downshifted, demanding a one-​year delay in the implementation of Obamacare — granting to regular citizens, as Cruz puts it, the same solicitude Democrats have shown to big corporations — plus the deletion of a widely unpopular tax on medical devices and the repossession of Congress’s “Get-​Out-​of-​Obamacare-​Free” card.

Senate Democrats took less than half an hour to thumb their noses at the House, nixing all three provisions and leaving the federal government liable to partial shut-​down. Obamacare, at least for the un-​politically-​connected, starts in earnest today!

Comedian Bill Maher is not alone in chiding Republicans for “refusing to admit” they “lost.”

Republicans, for their part, predict utter devastation from the reform bill’s implementation, and don’t see why the country should suffer from the Democrats’ intransigence.

If Tea Party-​inclined Republicans do lose this battle and Obamacare’s bad results do pile up — increasing unemployment and depression, skyrocketing insurance rates, diminished private medical insurance rolls — would the Democrats concede that they’ve lost?

Or would they continue to think they’ve won?

This is Common Sense. I’m Paul Jacob.

Categories
video

Video: Decentralize the Schools

Too many people want to push America’s schools in the wrong direction. Neal McCluskey, of the Cato Institute, isn’t one of them:

Categories
free trade & free markets general freedom U.S. Constitution

Equally Unequal

Two court cases come to our attention, courtesy of Cato’s Ilya Shapiro. Both involve the favoring of members of one group over another.

The Sixth Circuit ruled that a voter-​approved amendment to the Michigan state constitution outlawing racial preferences in college admissions would violate the U.S. Constitution’s equal protection clause. The amendment states in part that Michigan public colleges and universities shall “not discriminate against, or grant preferential treatment to, any individual or group on the basis of race, sex, color, ethnicity, or national origin.…”

In his dissent, Judge Richard Griffin writes: “The post-​Civil War amendment that guarantees equal protection to persons of all races has now been construed as barring a state from prohibiting discrimination on the basis of race.” Shapiro calls the decision Orwellian.

The other case involves California law banning sellers of eyewear who are not state-​licensed optometrists and ophthalmologists from conducting eye exams and selling glasses at the same place of business. The law prevents national eyewear chains from competing effectively in California (since customers prefer to get their glasses and eye exams in one shop).

Cato joins an amicus brief urging the Supreme Court to take up the California case. Shapiro also says that because there are two conflicting lower-​court decisions on the Michigan question, the Supreme Court is likely to add that case to its docket.

Let’s hope all further rulings are based on a clear-​sighted respect for equal rights under the law.

This is Common Sense. I’m Paul Jacob.

Categories
judiciary property rights

Pest Control for Pesky Evidence

Should courts be outlawed from thwarting outlaws?

The Environmental Protection Agency has acted to unilaterally ban a pesticide in use for decades. Writing for the Cato Institute’s blog, Ilya Shapiro notes that the agency’s move exemplifies “a growing trend among federal agencies and courts to incrementally expand the government’s enforcement power by adopting statutory interpretations that go beyond their plain meaning and intent.”

The pesticide is carbofuran, used to protect crops since 1969. What is the evidence that carbofuran poses a hitherto un-​comprehended threat to human well-​being? Federal law requires EPA to provide for a “notice and comment” period before altering an established legal threshold for pesticide residues on food. If “material issues of fact” are then raised, the agency must conduct a public evidentiary hearing. National Corn Growers indeed raised “material issues of fact” regarding the alleged hazards of carbofuran. So an evidentiary hearing is mandatory.

The DC Circuit ruled, however, that scientific disagreements are insufficient to trigger judicial review and that decisions about new residue tolerances should be left entirely to the EPA. If upheld, the decision means the agency could determine all by itself whether its regulatory actions are consistent with law. Even when they obviously aren’t.

Along with the National Corn Growers and other industry groups, the Cato Institute and Pacific Legal Foundation are challenging this latest assault on property rights and the rule of law — an assault you might even call a pestilence.

This is Common Sense. I’m Paul Jacob.

Categories
responsibility too much government

Fiasco Economics

Every time a financial fiasco hits, politicians readily expand regulations. But what’s the point of adding to the regulatory barrage if it’s all just for show?

They studiously avoid asking the right questions:

  1. What previous regulations caused (or helped cause) the fiasco?
  2. What previous regulations that could have prevented the fiasco weren’t enforced?

Economist Gerald O’Driscoll, Jr., writing in the Wall Street Journal, adds a few notes of caution to the current regulation madness. Most regulatory bodies get “captured” by the businesses they regulate. A huge amount of research shows how supposedly anti-​business regulations serve the interests of some businesses at the expense of their competitors. 

It’s the crony capitalist equivalent to politicians making it harder for challengers using “campaign finance” regulations. Same game, different venue.

O’Driscoll also explains which regulations weren’t enforced prior to the recent meltdown — those against fraud. This form of regulation is not like the regs politicians usually propose. It’s basic rule of law, the government’s first responsibility. 

And regarding Lehman Brothers, Goldman Sachs, and Bernie Madoff, government failed. 

O’Driscoll argues that multiplying rules and regulations is not merely the wrong response, but a sorry repeat of the last century’s “great intellectual failure.” Pity, then, to see the current administration push just that. 

Following this path will just lead to the same old recycling of the boom and bust cycle. Freedom and responsibility — where criminal fraud is actually fought by government, not encouraged — work better. 

This is Common Sense. I’m Paul Jacob.

Categories
too much government

Where to Cut, and How

State and local governments have been hard hit by the current depression. What to do?

Cut.

But where?

Well, legislatures could simply repeal all increases and programs starting with the most recent, going back month by month, year by year to nix spending until total spending dips below current revenue. Legislatures around the country should go into sessions of repeal.

Or they could target endemic over-​spending. According to a January Cato Institute Tax & Budget Bulletin, one area of over-​spending in need of tackling is “Employee Compensation in State and Local Governments.”

According to the bulletin’s author, Chris Edwards, there are several distinct indicators that demonstrate that government workers are generally overpaid. 

Comparisons of compensation between state and local workers and private sector workers show a 1.45 ratio, with government workers garnering nearly half again as much as private sector workers.

The percentage of government employees to receive benefit packages over salary is also significantly higher than private sector laborers.

Further, Edwards notes, “data show that the average quit rate in the state and local workforce is just one-​third the rate in the private sector. This suggests that state and local pay is higher than needed to attract qualified workers.”

So, rational employers — that is, the citizenry — would start there, first by freezing wages and new hires, then by decreasing benefits and reining in profligate promises in retirement packages.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets

A Cato Alert

President Obama suggests that all economists agree that the best way to dig the economy out of its giant hole is to dig that hole faster and harder. Too much debt? Pile on more. Consumers not “buying enough”? Tax and borrow more to spend more to subsidize more buying.

I don’t get it. Were I Robinson Crusoe on a desert island I sure would want to consume. Berries and bananas, fish, maybe deer.

But I’d also want to produce. I’d make tools to help me to gather and hunt, and to prepare and store food. Desiring shelter, I’d realize that I can’t live in a hut unless I first build the hut.

On Crusoe’s island, there would be no politicians around to tax me to death before I could finish the hut. But here in our mixed economy, there sure is.

The Cato Institute, a D.C.-based think tank, has been spreading the word that not all economists believe that the best way to improve the economy is to nuke taxpayers and producers. At Cato​.org I’ve heard economists insist that bailouts have NEVER worked to stimulate the economy. Further, Cato has taken out a full-​page ad in major newspapers, like the Washington Post and the New York Times, disputing the notion that the solution to the recession is a massive government spending spree.

The Cato statement is signed by hundreds of economists. Many more signed it after the ad was published.

Will it help? I have the audacity to hope.

This is Common Sense. I’m Paul Jacob.