Tag: Tim Cavanaugh

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First Amendment rights

Speech Results

You often hear people who support campaign finance laws say that the First Amendment isn’t about money, “just speech.” These folks despise the Citizens United decision that forbade, under the First Amendment, regulation of groups of people (“corporations,” profit or non-​profit) pooling money to advertise and promote ideas and arguments and slogans and such.

Though many are First Amendment extremists on other matters, desiring no government interference of protests or movies or the Internet, when it comes to politics they fear “Big Money.” So they want to censor speech that some groups would push near elections.

It turns out, of course, that the effects of the Citizens United decision have been mostly beneficial, as Tim Cavanaugh points out in Reason. As a result of that infamous decision, local political races have been “shaken up”; the decision “guaranteed ‘big laughs’” in many humorous political commercials that were all-​too-​rare before; interest groups have been freed of the old yoke of the major parties; the GOP presidential nomination process has been made far more competitive; and even President Obama, the Citizens United critic-​in-​chief, has raised millions under the auspices of the organizations the decision allowed to operate — so he apparently likes it, too.

The blessings of “more speech” are pretty obvious — if one looks for them. But for those with a prohibitionist mindset, who fear a wide open public discussion, they’ll no doubt hate actual free speech. As protected by the Citizens United decision.

This is Common Sense. I’m Paul Jacob.

Categories
free trade & free markets national politics & policies too much government

Ups and Downs

Inflationism is the ideology of increasing the money supply to spur economic activity and “growth.” In the 19th century, economists were generally against it, though certain “innovators” (cranks) thought that increasing the supply of money would “increase aggregate demand” with no bad repercussions. “Cross of gold” kind of nonsense; “free silver” idiocy.

In the 20th century, alas, inflationism went mainstream.

Today, a few respectable economists — high-​profilers like the New York Times’s Paul Krugman and U.C. Berkeley’s Brad DeLong, for example — embrace inflationism. Occasionally their arguments sound sophisticated, but all are just warmed-​over rehashes of very old errors.

It’s the economic equivalent of the “perpetual motion machine”: the eternal quest to get something for nothing, progress on the cheap. It inevitably fails — but only after fooling people by “working” for a while.

Reason’s Tim Cavanaugh, discussing declining housing prices, notes that “it’s becoming harder for the Fed, HUD, the Treasury Department and the National Association of Realtors to pretend the 25-​year real estate inflation was anything but a $15 trillion rip-​off.” He welcomes the deflation of housing prices. The idea that one’s house should increase in value by always increasing in price — that’s really just a recipe for social disaster. It endured as long as it did only “through government subsidized debt.”

Thank Congress; thank their Fannie and their Freddie; thank the inflationist Fed.

“Creating” money and loosening credit tends to nudge up prices … but not all prices equally. It signals people to over-​invest in certain sectors, often real estate. This creates a sector boom … that then must “bust.”

The alternative? The honesty of sound money.

This is Common Sense. I’m Paul Jacob.