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crime and punishment general freedom regulation

Monopoly vs. Monopoly

The Biden Administration makes much of its pro-​consumer actions. President Sleepy Joe never tires of boasting about how his regulations favor consumers over credit card companies. Considering the massive taxation that his administration supports, however, saving a few bucks on overdraft fees looks a bit absurd in context.

As does the administration’s ramped-​up anti-​trust actions.

The federal government has now attacked Apple. On anti-​trust grounds. For being a monopoly.

The humor in this was noted by anti-​intellectual property theorist Stephan Kinsella, tweeting on X: “‘U.S. Sues Apple, Accusing It of Maintaining an iPhone Monopoly’ We grant you patent and copyright monopoly privileges and you use them to build up a monopoly? How dare you!”

Jeffrey A. Tucker of the Brownstone Institute was less amused, and less concerned with Apple’s reliance upon intellectual property, which he claims is secondary to the company’s useful products: “The very notion that the government is trying to protect consumers in this case is preposterous. Apple is a success not because they are exploitative but because they make products that users like, and they like them so much that they buy ever more.”

At issue is how Apple products work so well together but not so well with other manufacturers’ products. “The Justice Department calls this anticompetitive even though competing is exactly the source of Apple’s market strength,” insists Tucker.

Maybe it’s really about this principle: the government giveth; the government taketh away: blessed be the name of the Biden.

In full disclosure, I have an iPhone, which I hate, and a Microsoft Surface Book, which I also hate. I’m open to any of their competitors, which I might hate less.

This is Common Sense. I’m Paul Jacob.


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ideological culture subsidy

Race-​Based Handouts?

The decision won’t be the end of the matter, but it’s a good sign.

U.S. District Judge Mark Pittman has ruled that a federal agency established to give subsidies to businesses, in its current form called the Minority Business Development Agency, may no longer use race or ethnicity as a criterion for distributing benefits.

The ruling comes in response to a lawsuit filed by the Wisconsin Institute for Law & Liberty on behalf of three business owners who weren’t allowed to apply for help from the MBDA because they’re white. The plaintiffs argue that the Agency violates the constitutional requirement of equal treatment under the law.

According to Judge Pittman, although “the Agency may intend to serve listed groups, not punish unlisted groups, the very design of its presumption punishes those who are not presumptively entitled to MBDA benefits.”

Supporting rights-​based governance, I’m no fan of any welfare programs. As long as we have them, though, why should the handouts or the ability to apply for them be determined by race?

Government-​imposed racial discrimination is unjust on its face. It should be extirpated wherever it exists. The Minority Business Development Agency is one of those places.

If Pittman’s ruling is allowed to stand, it may have a salutary effect on many other agencies and programs. 

The MBDA’s name presents a problem, however. 

I guess it won’t be too hard to remove the word “Minority” and call the agency the Business Development Agency. 

Or just shut it down.

This is Common Sense. I’m Paul Jacob.


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free trade & free markets political economy subsidy

When the CHIPS Are Weighed Down

Has DEI “killed the CHIPS Act”?

The CHIPS and Science Act of 2022 created a giant package of subsidies that shouldn’t exist to begin with and is made even worse by all the strings attached.

The Act authorizes giving $52 billion of taxpayer money to microchip manufacturers to make chips in the U.S. The boost to domestic production will supposedly help us if China invades Taiwan and disrupts Taiwan’s globe-​leading microchip industry.

But chipmakers eligible for the largesse are recoiling from all the embedded DEI mandates. “DEI” means “diversity, equity, and inclusion.” It’s a collectivist mantra and ideology designed to make employers fret about racial and gender quotas and DEI indoctrination at the expense of hiring qualified people and making high-​quality microchips.

According to Matt Cole and Chris Nicholson, writing for The Hill, nineteen sections of the Act are devoted to DEI. One gives the Department of Commerce a mission that Commerce describes as “strengthening the U.S. semiconductor ecosystem” by ensuring “significant investments to create opportunities for Americans from historically underserved communities.”

The authors believe that CHIPS is “so loaded with DEI pork that it can’t move.” Worse, it’s making it hard for chipmakers to move, forced to focus away from making microchips and, instead, onto the wasteful exercise of appeasing regulators.

Now that they are finally about to get CHIPS funding, Intel and others are delaying announced factories and foundries on U.S. sites and instead going ahead with more overseas plants.

I guess they want to get stuff done.

This is Common Sense. I’m Paul Jacob.


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free trade & free markets regulation too much government

The AB5 Agenda

AB5 is the code name for legislation passed in California a few years ago to kill freelance work. 

Ex-​freelancers hate AB5; employers who can’t afford to convert contractors into regular employees hate AB5. 

Unions, on the other hand, love AB5; lawmakers also love AB5.

A California citizen initiative partly reversed it. Then the Ninth Circuit at least temporarily reversed the reversal.

Though Democrats have made several attempts to bring it to the federal level, Congress has not passed a federal version of AB5. But now the Department of Labor is acting to impose a rule to challenge the status of many independent contractors, scheduled to take effect March 11. This AB5-​like rule enunciates six criteria determining whether contract work may still be called contract work.

This affects what I do. One of my dozen jobs is citizen-​initiative work. Various state governments have done all they can apart from comprehensive AB5-​like rules to impede my ability to collaborate with petitioners to get citizen initiatives on the ballot. It is most efficient to pay these contractors per thing they do instead of earning a fixed salary or getting paid an hourly wage. 

Politicians and bureaucrats know this.

If the Labor Department’s new rule takes effect, will contractors working with me pass the test? Or will we all be thrown into chaos and confusion?

It is being challenged in court. 

Many voters — who are, after all, wage-​earners or salaried employees — may not care very much; it may seem irrelevant to them. But it is time for them to inquire why some politicians and union bosses want to destroy the ability of freelancers to freely work for outfits short of becoming full-​time employees.

For the ramifications will reach far beyond my niche “industry.”

This is Common Sense. I’m Paul Jacob.


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free trade & free markets regulation too much government

SAD Regulators

Americans are getting sicker and fatter on government-​approved, corporate-​made foodstuffs, yet government continues to crack down on the sale of natural and home-​made foods.

The classic case is raw, whole milk. I’ve talked about this before. The most recent case is from Amish country, where the State of Pennsylvania raided a farm “on suspicion of selling ‘illegal milk,’ among other products,” explains The Epoch Times, and the farm “is being sued by the Pennsylvania Office of the Attorney General and Pennsylvania Department of Agriculture.” 

The Amish farm “has been ordered to halt all sales of its dairy products, inspiring widespread anger over what critics have called a blatant example of government overreach.”

At issue is government interference in farmers and customers freely choosing to skip the major grocery outlets multinational companies and dealing with each other on a local, free-​market basis. “Capitalist acts between consenting adults,” as Robert Nozick put it.

But it’s especially galling when placed in the wider context of the FDA’s and USDA’s obvious failure to produce a healthier populace. Though the state’s attorney general insists that “we cannot ignore the illnesses and further potential harm posed by [the] distribution of these unregulated products,” the illnesses caused by what many call the Standard America Diet (SAD) go unnoticed and unregistered as such. 

One standard for “the market,” another for the regulators.

Meanwhile, the State of Wisconsin is pushing a new bill to impose a $20,000 annual sales cap on participants in the state’s cottage food industry, “one of the most restrictive in the nation,” explains Suranjan Sen, an attorney at the Institute for Justice — a legal aid outfit often mentioned in these pages.

The very point of the law is to protect brick-​and-​mortar grocery and baked-​goods stores — not the health of consumers. It has the backing of powerful lobbyists.

Looking for healthier foods and healthier economies? Don’t look to government.

This is Common Sense. I’m Paul Jacob.


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First Amendment rights regulation

Again Allowed

Retired engineer Wayne Nutt wants to be able to speak freely about engineering problems.

North Carolina, in the form of its Board of Examiners for Engineers and Surveyors, disagrees. The Board sought to prohibit his speech unless he obtained a professional license, and it threatened him with sanctions.

As Institute for Justice puts it, the Board ordered Nutt “to stop talking about math in public.”

In response, Nutt sued, with IJ’s help.

Nutt often writes letters or speaks at public meetings to discuss problems with the designs of buildings and other structures. He also testified in court about flooding of a housing development. This is what caught the attention of the Board, which claims that for Nutt to utter such testimony or any public statements enlisting his specialized knowledge is illegal, amounting to practicing engineering without a license.

“I like the freedom to be able to speak up,” Nutt says.

I sympathize with this desire, as did the Founders who gave us the First Amendment to protect freedom of speech. Fortunately, so does Chief Judge Richard Myers of North Carolina’s Eastern District. He has just issued a favorable ruling in the case.

“This is a win for more than just me,” Nutt says. “There are a lot of people in the same situation — people who have expertise that they’ve been blocked from talking about. This decision is an affirmation that the First Amendment protects all of our rights to share what we know.”

This is Common Sense. I’m Paul Jacob.


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