Tag: Cato

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.