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judiciary national politics & policies regulation

Regulatory Pressure?

Should government regulators be able to urge financial institutions to cancel clients that regulators dislike for political reasons? Such as oil companies and groups advocating Second Amendment rights?

Although a court of appeals has said Yes, the Supreme Court has just said Maybe No in a case involving the National Rifle Association (NRA v. Vullo).

The NRA hasn’t won final victory. But the court is unanimously letting it proceed with its lawsuit, which argues that by pressuring banks and insurance companies to cancel their business with the NRA, New York regulator Maria Vullo violated its freedom of speech.

The Supreme Court seems to accept an artificial distinction, though, between a regulator’s “persuading” an organization to hurt a client and “forcing” it to do so.

An official with power over a company who seeks as a government official to “persuade” that company to do something is engaging in coercion. The implicit threat is: “I have the power to hurt you if you don’t do this little favor for me.”

Moreover, in sending the case back to the lower court, the Supreme Court has also said that it may consider whether Ms. Vullo is protected by qualified immunity, the get-away-with-anything card that government officials are too often able to rely on when they commit wrongdoing.

So this decision is hardly a final, definitive victory for the NRA and other victims of thug-regulators. But at least the NRA can keep fighting — for itself and the rest of us.

This is Common Sense. I’m Paul Jacob.


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free trade & free markets ideological culture political economy too much government

Sweden’s Electric Sense

Common sense in Sweden! Energy in Sweden!

Under the policy of Sweden’s current government, the Swedish people are to be allowed to illuminate and heat their homes and do all the other things they use electricity for. The Swedish parliament has formally relinquished the government’s former target of somehow reaching “net-zero” renewable energy by 2045.

Such unreliable means of generating power as erratic wind and erratic sunshine just don’t cut it, says Finance Minister Elisabeth Svantesson.

“We need more electricity production, we need clean electricity, and we need a stable energy system. In substantial industrialized economies . . . only a gas-to-nuclear pathway is viable to remain industrialized and competitive.”

The new energy policy is an about-face for Sweden, which decided in the ’80s to nuke nuclear power and pursue 100 percent “renewable” energy.

Sweden is now following the lead of Finland. After Finland’s latest nuclear power plant went on line in April, reports Peta Credlin, “wholesale power prices dropped 75%, almost overnight. The Olkiluoto 3 plant is . . . delivering 15 percent of the country’s power needs. Nuclear now provides around half of the country’s total electricity generation.”

Nuclear power has gotten a bad rap in many countries, including the United States. But if societies and governments are rightly or wrongly determined to retreat from reliance on fossil fuels while also not pulling the plug on industrial civilization, a steady supply of electricity has to be obtained somehow or other.

Nuclear power is one major way to do the job.

This is Common Sense. I’m Paul Jacob.


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free trade & free markets general freedom too much government

Exemptions, Not Repeal

If you light the fuse of a bomb, after warnings that this will cause it to explode, you should not be surprised at the explosion.

California’s lawmakers and governor recently imposed super-high minimum wages for workers in fast-food restaurants ($20 an hour) and workers in healthcare facilities ($25 an hour). When the legislation was in process, the impact on companies, customers, and job applicants was deemed irrelevant. What mattered was appeasing the labor lobby.

Governor Newsom is suddenly “realizing” (he’d been warned) that these new costs will also burden the state government, currently facing a $45 billion budget deficit.

But this isn’t causing him to seek repeal.

No. Instead, he has signed legislation granting an exception to the new minimum for fast-food restaurants that are on government land. “Democrats don’t want the mandate interfering with government concession licenses,” The Wall Street Journal observes.

And Newsom also wants to defer the kick-in of the new minimum wage for workers in healthcare facilities — which he projects would cost the state $4 billion more annually because of the impact on Medicaid and state-paid health workers — until state revenue is in better shape. He would also permanently exempt state-owned facilities from having to pay the new minimum.

Carveouts and minor delays are as far as the governor and lawmakers are willing to go. Whatever gets them past the uncomfortable present — the next moment and the one after are things to worry about later. With any luck, with time the voters will have forgotten the issue, and who caused what.

Exemptions are the order of the day for politicians and bureaucrats. Private sector businesses must remain on the rack.

This is Common Sense. I’m Paul Jacob.


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crime and punishment First Amendment rights general freedom regulation

Criminal Discrimination?

It’s okay.

You don’t have to associate with criminals. You don’t have to employ them and worry how they’ll act on the job. It’s not your duty to give criminals or persons with a criminal record access to your life or property and hope for the best.

If only we could leave it at that. 

That’s not our world though. In our world, our government, working hard to rip America apart in every way possible, is suing the Sheetz chain of convenience stores because it doesn’t hire applicants with a criminal record.

The “problem” is that too many such failed applicants are nonwhite.

The Equal Employment Opportunity Commission accuses Sheetz of “disproportionately screening out Black, Native American/Alaska Native and multiracial applicants.” The agency babbles that “employment practices causing a disparate impact because of race or other protected classifications must be shown by the employer to be necessary to ensure the safe and efficient performance of the particular jobs at issue.”

Of course, the “disparate impact” exists not because of these classifications but because the denied applicants have criminal records. Sheetz didn’t decline these applicants because of their skin colors.

Nevertheless, Sheetz is supposed to have somehow “shown” that refusing to hire applicants with criminal records reduces Sheetz’s own risks and the risks for customers.

Elon Musk, commenting on this story, has it right: “You know The Joker is running things when the law-abiding are being prosecuted by the government for not hiring criminals!”

These days Uncle Sam and The Joker do look alarmingly similar.

This is Common Sense. I’m Paul Jacob.


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Supermarket Slavery

How to sue supermarkets for shutting down:

One. Move to San Francisco.

Two. Support a proposed ordinance “amending the Police Code to require large supermarkets to provide six months notice to their customers and the City before permanently closing, and to explore ways to allow for the continued sale of groceries at the location.”

Three. If the ordinance passes, wait for a large supermarket to go out of business without having known six months in advance that it would need to do so.

Four. Sue.

That the proposed law would amend the police code is perversely apt. The idea is use the state’s police power to penalize ending an activity that as a free man, not a slave, you have no obligation to continue.

Ending any project may inconvenience people who benefit from what you’re doing. But unless you are bound by contract, these other people have no right to your further efforts. 

Not for six months, not for six seconds.

The San Francisco ordinance would exempt supermarkets that must close because of a natural disaster or other circumstance not “reasonable foreseeable.” These exemptions don’t solve the problems that the ordinance could cause for innocent businessmen. As Reason magazine notes, any stores that closes “without providing the proper notice” could still be sued for damages, supposedly exempted or not.

In the 1980s, when this notion was originally proposed (unsuccessfully), supermarket executives argued that making it harder for them to shut down would also discourage them from opening a store to begin with.

True. But that’s just common sense.

I’m Paul Jacob.


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Common Sense national politics & policies regulation subsidy

Electric Class Warfare

Star Trek may have adversely affected American politics. Its techno-communist utopian militarism was one thing, its attitude towards engineering? Perhaps worse.

In how many episodes did Captain Kirk demand that Scotty push the warp drives further, or decrease the time required for a task — arbitrarily according to his need, not actual possibility?

And, because television: presto, it was done; just in time for the finale!

We see that in the push for electric vehicles (EVs). 

The EV mandates, explains The Epoch Times, “will likely cause a sizable wealth transfer from rural red regions of the United States to urban blue sections, and to wealthy Democrats who reside in them. . . .”

For while Democrats say they’re trying to “save the planet” from an increase in atmospheric carbon, really, analyst Robert Bryce counters, “it’s a type of class warfare that will prevent low- and middle-income consumers from being able to afford new cars.”

How? The EPA’s new “rules are the strictest in history and will effectively force carmakers to have one-third of new car sales be plug-in EVs by 2027 and more than two-thirds by 2032.” But according to the Texas Public Policy Foundation, “as much as $48,000 of the cost of the average EV sold in the United States is paid not by the owner but in the form of ‘socialized costs’ that are spread out among taxpayers and electricity consumers over a 10-year period.”

So the new rules will reduce the supply of gas-powered vehicles, driving up costs. And the increased number of already-subsidized vehicles will also be paid by taxpayers at large, while the benefits go to . . . mostly Democrats in the bluest counties of the bluest states, as statistics show.

In recent years, Democrats have prided themselves that their “blue states” subsidize “red states,” mocking the “rugged individualist” pretensions of the hapless bubbas in flyover country. But now such boasts ring hollow. 

This is the far-flung future? 

Subsidy and regulation spoil the Star Trek promise.

This is Common Sense. I’m Paul Jacob.


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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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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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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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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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