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Accountability folly general freedom incumbents media and media people moral hazard nannyism national politics & policies political challengers porkbarrel politics responsibility too much government

Twirling Towards Freedom?

Does Bernie Sanders remind you of “Citizen Kang”?

Vermont’s [S]ocialist Senator is whipping up a new plan for America: to “guarantee a job with at least a $15-​per-​hour wage and health benefits to every adult American ‘who wants or needs one,’” we are told.

What was it that the slavering alien Kang promised* in The Simpsonseighth season opening episode? Well, we know how that episode ended, with Homer Simpson revealing the ’90s’-era presidential candidates to be aliens in disguise, Kang being elected, humanity enslaved, and Homer uttering the immortal words “Don’t blame me, I voted for Kodos.” 

And then Kodos, in cahoots with Kang, cracking the whip on Homer.

One shouldn’t have to read George Fitzhugh, the antebellum sociologist who attacked the very idea of free markets and free labor, insisting that slavery is a good thing and the very best form of socialism, to know that socialism and slavery go together hand in glove, whip in hand.

In an age of handouts for nothing, at least Sanders’ socialist proposal suggests productivity. But paying for it by nixing corporate “tax breaks”** is absurd. “Republicans have long opposed a federal jobs guarantee,” Fox News tells us, “saying such a plan would be too expensive and impractical.” And it’s productive people who would pay for it, making them de facto slaves to the system … even more than they are now.

But when socialists talk about “jobs,” worry about a more direct form of slavery.

And yes, I can imagine Bernie, with his four houses, flicking the whip.

I won’t be voting for him, if he runs. 

Or for Kodos.

This is Common Sense. I’m Paul Jacob.

 

* Actually, Kang was known not for a promise but for his campaign speech (as Bill Clinton), saying, “[W]e must move forward, not backward; upward, not forward; and always twirling, twirling, twirling towards freedom!” 

** The only funding source mentioned in the reports I read.


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Accountability education and schooling folly general freedom moral hazard nannyism national politics & policies responsibility too much government

Eternally Postponing Responsibility

There is a common sense element to economics. We ignore it at our peril. So let’s take a cue from the Democratic Party’s current and de facto leader, Bernie Sanders. 

Turn to Denmark for a model.

The Nordic state has what Bernie wants: higher education “free for all.” But there are … costs involved. 

It turns out that “some Danes, especially older citizens already in the labor force,” explains Business Insider, “say the extra freedom can eliminate a crucial sense of urgency for 20-​somethings to become adults. The country now deals with ‘eternity students’ — people who stick around at college for six years or more [not to mention advanced degree work] without any plans of graduating, solely because they don’t have any financial incentive to leave.”

Hardly a shock. Young Danes would not be the first to see in college life what satirist Tom Lehrer identified as the prolongation of “adolescence beyond all previous limits.”

Give young people an incentive to suck up resources year after year, and some will certainly take you up on that.

It’s hard to counter, too. The Danish “eternity student” problem remains even after taking policy steps to discourage it. 

Business Insider ends its report by quoting an expert who insists that “motivation to succeed in your studies is in no way linked to whether you’re paying for your tuition or not.”

Yup, that’s what proponents of “free” education keep telling us. But there is more at play here.

Responsibility is on the line. Adulthood is about responsibility. Free tuition is about postponing responsibility.

Do we really want to go further in that direction?

This is Common Sense. I’m Paul Jacob.


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education and schooling free trade & free markets general freedom ideological culture media and media people national politics & policies privacy property rights responsibility too much government U.S. Constitution

According to Economics

“Everywhere you look, economics is despised,” writes Tom Woods in his Tuesday email letter.

You know what isn’t despised? A daily email letter.*

But I digress; back to economics.

“The gimme-​free-​stuff people hate it because they don’t like being told that there might be undesirable side effects from seizing other people’s things.”

Well, true enough. But turn it around: many people demand free stuff at least in part because they do not understand the bigger picture … which Mr. Woods ably provides in his daily podcast and on his weekly Contra Krugman podcast with economist Bob Murphy.

“Politicians hate it, because it imposes logical constraints on what political activity can accomplish.”

True, but, like many in the general public (from whence they come), politicians’ prior lack of economic knowledge also leads, in part, to their hubris.

“Even some folks in the business world hate it, because (1) they’d rather agitate for special privileges than hear the case for free markets, and (2) they’d rather have low interest rates than be warned about the causes of the business cycle.”

Yes, too true. But, again, business people are generally just people, most of whom haven’t even been exposed to something beyond boring and misleading textbook econ, if that. Mr. Woods knows that, since that’s what his mission is, exposing more folks to ideas beyond what he calls “the index card of allowable opinion.”

Well, I’m all about allowing the unallowable — if it’s right!

This is Common Sense. I’m Paul Jacob.

 

* Historian Woods is now doing what I’ve been doing since 1999, providing a daily common-​sense thought that is short and easy-​to-​read and dropped into your email box every weekday. Mine goes up online at ThisIsCommonSense​.com; I don’t see his on his website … but I do see a lot of books and podcasts!


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Accountability folly free trade & free markets general freedom initiative, referendum, and recall local leaders moral hazard porkbarrel politics responsibility too much government

Go Nats?

Just a few miles away from where I live sits the stadium of the Potomac Nationals. I’m a fan. I’d hate to see the team we call the P‑Nats leave. 

But … Hasta la vista.

The owner of this minor league affiliate of Major League Baseball’s Washington Nationals is demanding a new stadium. He threatens to move out of Prince William County, Virginia, if he does not get it. 

The Prince William County board of supervisors has already expressed interest in floating bonds to raise the $35 million the fancy new stadium would require — with the privately owned team paying the money back, with interest, over the next 30 years. 

Compared to other crony-​ish deals around the country, not such a terrible taxpayer swindle. Still, zillions of wrongs don’t make this right. County taxpayers would be on the hook in case of default. And if the marketplace believed the team could actually make such payments, a bank or other investors would come to the rescue.

Thankfully, a monkey wrench has been thrown into the deal. A county supervisor has proposed that voters should get a chance to decide, via a November referendum. The board of supervisors will consider the referendum tonight. 

Voters should get the final say. But if there is a referendum, as much as I love having the team here, I will vote NO. I don’t cotton to forcing others to pay for my preferred entertainment. 

Government has certain legitimate roles. Subsidizing sports is not one. 

Even if the new stadium would be closer to my home than the old one.

This is Common Sense. I’m Paul Jacob.


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Accountability free trade & free markets initiative, referendum, and recall insider corruption moral hazard national politics & policies porkbarrel politics too much government

A Wall of Separation

Whatever you think of Thomas Jefferson’s letter to the Danbury Baptists, wherein he celebrated the First Amendment for “building a wall of separation between Church & State,” let’s agree that it would have been nice had he penned another letter — to the Waterbury Methodists or someone — urging a wall of separation between Sports and State.

Last week, actor Tom Hanks became another brick in my hoped-​for wall. “It’s a billion-​dollar industry,” Hanks said of the National Football League.

[T]hey have billion-​dollar TV contracts. All the owners are billionaires. And yet when they want to build a stadium they’re going to use for 10 weeks out of the year, they expect the city taxpayers to buy the building.

Hanks is livid. The recent “deal” that lured his beloved Oakland Raiders to Las Vegas included $750 million in public funds to build a $1.9 billion stadium. The Raiders are planning to stay in Oakland for the 2017 and 2018 seasons, while that new stadium is built. “When the Raiders leave,” the beloved star declared, “I am going on an NFL moratorium for two years.”

Unfortunately, Hanks appears more angry that his team is leaving (eventually), than with the principle that taxpayers ought not be ripped off.

Subsidizing businesses is cronyism, not capitalism. It’s even more outrageous when the poor must pay for the rich. 

But how to stop it? In every city where citizens can propose ballot initiatives, let’s petition and pass measures requiring a public vote before any such subsidy.

It may not be the great wall I’d prefer, but it’s a high hurdle providing taxpayers some important protection. 

This is Common Sense. I’m Paul Jacob.

 

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Super-​Subsidize Me

“In American political discourse, those on the side of the sick, poor, and underprivileged tend to favor more federal government intervention,” writes Heartland Institute policy advisor David D’Amato at The Hill. He explains that many “see government as … rather like a charity …”

Sure, government can act charitably, except that its money isn’t given voluntarily, and the recipients are often not so needy.

Earlier this month, the stock price of electric car company Tesla, Inc. rose high enough to overshadow General Motors. That’s great news for billionaire Elon Musk, Tesla’s CEO. But an Investor’s Business Daily editorial noted, “[T]he company is heavily reliant on taxpayer support.”

Who benefits (in addition to Musk)? “A study published by the National Bureau of Economic Research found that 90% of electric car subsidies go to the top 20% of households,” the editorial stated. IBD added that it was “a lot of welfare-​for-​the-​rich for very little environmental benefit.”

In addition to funding advanced technology, American taxpayers have spent $6.7 billion over the last few decades to subsidize stadiums for wealthy sports team owners. The latest? In Clark County, Nevada, taxpayers forked over $750 million ($354 for every resident) to bribe — er, bring — the Oakland Raiders to Las Vegas. 

The ridiculous Minnesota legislation to feed $5 million in state funds to start two shrimp farms almost seems reasonable in comparison. Almost.

“Maybe growing shrimp in Minnesota is a great idea,” admits John Hinderaker of the Center of the American Experiment. “If so, the owners should do what other small businessmen do: either find investors, or get a bank loan.”

Government’s crony capitalism taxes the poor to give to the rich.

This is Common Sense. I’m Paul Jacob.


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