Categories
too much government

UNkindest Cut of All

One of the sad truths about trying to help folks in far, distant lands, is that so much of the aid gets soaked up in overhead.

But if you think it’s bad with charities, prepare to wince at the United Nation’s Haitian peacekeeping efforts. It turns out that only 4.6 percent of the $495.8 million the UN spends on salaries, hazard pay, and the like goes to “national staff” on the ground in Haiti. The rest goes to support staff at some remove from the island nation’s devastation. 

So does $461.9 million out of $495.8 million seem like a good cut for overhead?

Seems steep to me.

The entire budget is well over $700 million. Nearly $200 million of that comes from U.S. taxpayers.

The Fox News story from which I harvested these figures goes on to discuss the boats used to house some personnel. $112,500 per day. One of the boats is nicknamed “The Love Boat.” I don’t think I want to know more.

This should be a big story, except that, in context of today’s typical government operations, it’s not out of the ordinary. These days, operations often get judged not by the good done but by the number of people and dollars associated with it.

People in Haiti suffer. So we naturally don’t want to complain about money spent helping them. But, like so much else in government, efficiency is out of the question.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets

High Tech versus Disaster

Amidst all the tragedy dealt by the earthquake in Haiti, there have also been inspiring tales of coping and survival — some occasioned by the wonders of modern technology.

Consider the cell phone and its muscular cousin, Apple’s versatile iPhone.

The iPhone was the star of Dan Woolley’s self-​rescue effort. Woolley, an American filmmaker, was in Haiti when the earthquake buried him in rubble. Help would not arrive until three days later. So he consulted an iPhone application to learn how to make a tourniquet for his leg and bandage his own head wound. Without the software, Woolley might not have survived.

Few in Haiti have iPhones, but many have access to some kind of cell phone. For weeks after the earthquake, electricity was out. Landlines were dead too. But in a patchy way the cellular network was up within days. Voice calls remained iffy, but you could easily send text messages.

Without electricity, though, how to power up a drained cell phone and contact a loved one? That’s where street-​corner entrepreneurs came in, hooking up power strips to car batteries and charging 40 cents or so to charge a cell.

We often take technology for granted. But the high-​tech that makes life easier in normal times can also help us contend with disaster. As do the markets that make the technology and its maintenance possible. 

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets too much government

Disaster Economics 101

Could House Speaker Nancy Pelosi have spilled the beans, laid bare her party’s vision of economic growth in one offhand utterance?

A terrible tragedy in impoverished Haiti. An earthquake. The scope of the damage staggers the imagination … and spurs outpourings of charitable aid from America, and across the globe.

And this is where Mrs. Pelosi chimes in. As if she had never heard of the Broken Window Fallacy, she just blurted it out, hazarding that Haiti “can leap-​frog over its past challenges, economically, politically, and demographically in terms of the rich and the poor and the rest there, and have a new — just a new, fresh start.”

Over 70,000 dead, Haiti in ruins, and she’s talking about hope for a “real boom economy.” 

Now, I know, politicians like to spend money. They think it does a lot of good — though in Haiti’s case, the billions spent, previously, have sure fizzled. But Pelosi isn’t just arguing that the aid is going to remake an impoverished country. She thinks that scurrying about rebuilding is a net positive. 

If you wonder why politicians so like economic booms, even the most artificial ones, look no further. They cannot distinguish between real progress and the frenzy of making up for disaster.

Perhaps that’s why they are so nonchalant about the disasters their own taxes and regulations so often cause. 

This is Common Sense. I’m Paul Jacob.

Categories
media and media people

Haiti on the Hot Seat

Television theologian Pat Robertson attributes Haiti’s current woes to a two-​century-​old pact:

[S]omething happened a long time ago in Haiti.… They were under the heel of the French. You know, Napoleon III and whatever. And they got together and swore a pact to the devil. They said, “We will serve you if you will get us free from the French.” True story. And so, the devil said, “OK, it’s a deal.” … Ever since they have been cursed by one thing after the other.…

Pact with the devil? True story??

The Haitians threw off the French long before the rule of Napoleon III … but, whatever. It is doubtful that any amount of thumbing through an encyclopedia before going on air would have saved Pat.

Soon after the Robertson clip we got the clip from actor Danny Glover. Glover says climate change caused the earthquake. Apparently, he was mad about the failed summit. “They’re all in peril because of global warming … because of climate change.… When we did what we did at the climate summit in Copenhagen, this is the response, this is what happens.…”

Hey, why not? “Global warming” causes everything! Maybe even the heated hectoring of Pat and Danny.

Where’s the common sense? 

Oh, here: This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets general freedom too much government

How Not to Help Haiti

Haiti has suffered horrific devastation. It didn’t have to.

There was no way to prevent the 7.0 earthquake itself. But estimates of as many as 200,000 dead? That didn’t have to happen.

Economist Donald Boudreaux recalls that in 1989, an equally powerful quake hit the San Francisco Bay area. It caused lots of trouble but killed fewer than 70 people. But Haiti is a much poorer country than the U.S., with weaker buildings and roads, for starters.

Why so poor? 

Haiti is not a free society. It’s had one corrupt tyrant after another, recently emerged from the terrorizing rule of Jean-​Bertrand Aristide, who was sent packing in 2004.

Many pundits are saying that the way to strengthen Haitian society over the long haul is torrents of foreign aid. Economist Jeffrey Sachs wants Washington to spend billions on a five-​year development plan, which he says it should fund by taxing Wall Street bonuses.

Charity and rescue efforts are wonderful. Government-​to-​government foreign aid, not so much. Haiti has remained desperately poor despite the massive flow of foreign aid, which, over the years, has mainly subsidized corruption. What Haiti needs is stability. The ability to attract investment. Less propping up of corrupt politicians. Less foreign aid, more freedom. 

But a free society is something Haitians will have to build themselves.

This is Common Sense. I’m Paul Jacob.