Posts
Save the Bluefin Tuna through Property Rights - Robert P. Murphy - Mises Daily: "In principle, the problem of overfishing could be easily solved if 'chunks' of ocean were transferred into private property. Rather than having a meeting of 48 governments to determine 'the' quota, the owner(s) of each chunk of ocean could set an individual policy for that chunk.
To be sure, there would be logistical difficulties in privatizing the oceans. For example, if it turned out to be too costly to sink large nets deep enough into the water at the property lines, then the fish could easily swim from one owner's property into another's. The situation would be analogous to one on land before ranchers developed barbed-wire fencing."
"Alternatively, it might make more sense to establish property rights in the sea creatures themselves, analogous to branding of cattle. To track their swimming property, the owners might use radio collars (for whales and large fish) or coat the schools of smaller fish with a harmless radioactive substance."
"in the case of white rhinos in southern Africa, when property rights were introduced — so that the animals were no longer contraband but prized possessions — the turnaround in population figures was astounding."
Thursday, December 30, 2010
There Is Nothing in QE2 Worth Conserving | Mark A. Calabria | Cato Institute: Commentary
There Is Nothing in QE2 Worth Conserving | Mark A. Calabria | Cato Institute: Commentary: "First, the good professor argues that spending is far below trend. That is true enough as it goes, but this trend includes a massive housing bubble, where imaginary wealth fueled spending, aided by massive borrowing from abroad. The objective of our economic policies should not be to get back to the top of the previous bubble. It was this desire to replace the lost wealth of the dot-com crash that contributed to the Fed's juicing of the housing market. All that said, consumption today is higher than at any time during the recent bubble. The primary problem facing our economy is not a lack of demand.
Like Ben Bernanke, Beckworth believes we have had no inflation. Again like the Fed, he arrives at this conclusion by subtracting out of the inflation numbers all the things that real people spend their money on, such as food and energy."
"the good professor fails to consider that households may not be 'hoarding' cash by choice."
"Most market participants, me included, would be happy to put their money into valuable investments. Yet with interest rates near zero, there's little incentive not to hold cash balances, as the opportunity costs are nonexistent."
Like Ben Bernanke, Beckworth believes we have had no inflation. Again like the Fed, he arrives at this conclusion by subtracting out of the inflation numbers all the things that real people spend their money on, such as food and energy."
"the good professor fails to consider that households may not be 'hoarding' cash by choice."
"Most market participants, me included, would be happy to put their money into valuable investments. Yet with interest rates near zero, there's little incentive not to hold cash balances, as the opportunity costs are nonexistent."
The Ultimate Insiders | Richard W. Rahn | Cato Institute: Commentary
The Ultimate Insiders | Richard W. Rahn | Cato Institute: Commentary: "[members of Congress] have prior knowledge about which companies or industries will or will not be 'bailed out,' have their taxes raised or lowered, be subject to costly new regulations or exempted from such regulations, receive government contracts, etc. However, because the members of Congress and their staffs do not obtain their information from employees of the companies affected, they are not considered insiders.
There have been a number of recent news stories about how the average member of Congress showed an increase in net wealth over the past couple of years, while the average American was losing net wealth. The obvious conclusion is that members of Congress knew things the rest of us did not and acted on this knowledge to their own advantage — no surprise."
"The authors of the study, Jiekun Huang and Meng Gao, found that hedge funds connected with lobbyists, relative to non-connected ones, outperform by 1.6 percent to 2.5 percent per month in politically sensitive stocks compared to nonpolitical stocks. These results suggest that hedge-fund managers exploit private information, which can be an important source of their superior performance."
"Time and time again, the U.S. government has shown that it cannot protect sensitive information, from atomic secrets to sensitive financial data held by the Internal Revenue Service. Those who tell us that any information is safe when held by the U.S. government are both supremely arrogant and ignorant of history, including the news of recent weeks."
"The SEC is in the process of trying to find ways to criminalize those who (outside a firm) find better ways of doing research or modeling what they think is going on in a firm, even though they have received no direct, nonpublic information from real insiders. This approach eventually could kill the whole field of securities analysis. Only government employees at the SEC could dream up a scheme to try to keep everyone ignorant and call it 'progress.'"
"the decades of failure at the SEC show that enforcement of insider-trader laws is not feasible and often is counterproductive. Also, there has never been a clear definition of insider trading either from Congress or the SEC."
There have been a number of recent news stories about how the average member of Congress showed an increase in net wealth over the past couple of years, while the average American was losing net wealth. The obvious conclusion is that members of Congress knew things the rest of us did not and acted on this knowledge to their own advantage — no surprise."
"The authors of the study, Jiekun Huang and Meng Gao, found that hedge funds connected with lobbyists, relative to non-connected ones, outperform by 1.6 percent to 2.5 percent per month in politically sensitive stocks compared to nonpolitical stocks. These results suggest that hedge-fund managers exploit private information, which can be an important source of their superior performance."
"Time and time again, the U.S. government has shown that it cannot protect sensitive information, from atomic secrets to sensitive financial data held by the Internal Revenue Service. Those who tell us that any information is safe when held by the U.S. government are both supremely arrogant and ignorant of history, including the news of recent weeks."
"The SEC is in the process of trying to find ways to criminalize those who (outside a firm) find better ways of doing research or modeling what they think is going on in a firm, even though they have received no direct, nonpublic information from real insiders. This approach eventually could kill the whole field of securities analysis. Only government employees at the SEC could dream up a scheme to try to keep everyone ignorant and call it 'progress.'"
"the decades of failure at the SEC show that enforcement of insider-trader laws is not feasible and often is counterproductive. Also, there has never been a clear definition of insider trading either from Congress or the SEC."
What you pay for Medicare won't cover your costs - FoxNews.com
What you pay for Medicare won't cover your costs - FoxNews.com: "Consider an average-wage, two-earner couple together earning $89,000 a year. Upon retiring in 2011, they would have paid $114,000 in Medicare payroll taxes during their careers.
But they can expect to receive medical services — from prescriptions to hospital care — worth $355,000, or about three times what they put in."
"The same hypothetical couple retiring in 2011 will have paid $614,000 in Social Security taxes, and can expect to collect $555,000 in benefits. They will have paid about 10 percent more into the system than they're likely to get back."
But they can expect to receive medical services — from prescriptions to hospital care — worth $355,000, or about three times what they put in."
"The same hypothetical couple retiring in 2011 will have paid $614,000 in Social Security taxes, and can expect to collect $555,000 in benefits. They will have paid about 10 percent more into the system than they're likely to get back."
Not a Government Policy | Michael D. Tanner | Cato Institute: Commentary
Not a Government Policy | Michael D. Tanner | Cato Institute: Commentary: "Income inequality is the wrong focus for government policy. After all, if we doubled the income of every American tomorrow, inequality would actually increase — but we would also lift a lot of Americans out of poverty.
In the context of deficit reduction, that means we should keep this goal in mind: not punishing the rich, but reducing poverty. And we know that in the long run, the best way to reduce poverty is to create more jobs and opportunity. Too many think of the economy as a fixed pie, and the role of government is to divide up the slices of that pie. If one person gets a bigger portion of pie, others of necessity get smaller pieces.
But in reality the size of the pie is not fixed. We can pursue policies that grow a bigger pie, allowing a bigger slice for everyone. Conversely, we can shrink the pie, meaning everyone gets less. And unfortunately, if the pie shrinks, those without skills and connections in society — the poor — are likely to end up with little more than crumbs."
In the context of deficit reduction, that means we should keep this goal in mind: not punishing the rich, but reducing poverty. And we know that in the long run, the best way to reduce poverty is to create more jobs and opportunity. Too many think of the economy as a fixed pie, and the role of government is to divide up the slices of that pie. If one person gets a bigger portion of pie, others of necessity get smaller pieces.
But in reality the size of the pie is not fixed. We can pursue policies that grow a bigger pie, allowing a bigger slice for everyone. Conversely, we can shrink the pie, meaning everyone gets less. And unfortunately, if the pie shrinks, those without skills and connections in society — the poor — are likely to end up with little more than crumbs."
What Threat, China? - Kel Kelly - Mises Daily
What Threat, China? - Kel Kelly - Mises Daily: "A powerful military can come only from a powerful economy. Countries that have little capital and little ability to produce factories, tools, machines, and consumer goods likewise have little ability to produce tanks, missiles, fighter jets, and satellite systems. The lesson for the United States in this case is that we need to do everything possible to promote capital accumulation and increased labor productivity.
But even that consideration misses the real issue at hand. Military threats come only from political leaders, not from individual citizens. Thus, centrally controlled nation-state structures are the problem."
But even that consideration misses the real issue at hand. Military threats come only from political leaders, not from individual citizens. Thus, centrally controlled nation-state structures are the problem."
Real Death Panels Are Coming Our Way | Nat Hentoff | Cato Institute: Commentary
Real Death Panels Are Coming Our Way | Nat Hentoff | Cato Institute: Commentary: "during a discussion on balancing the federal budget against alarming deficits, [Paul Krugman] proclaimed the way to solve this problem is through deeply cost-effective health care rationing.
'Some years down the pike,' he said, 'we're going to get the real solution, which is going to be a combination of death panels and sales taxes.' That would mean the U.S. Debt Reduction Commission 'should have endorsed the panel that was part of the [Obama] health care reform.'"
"[Sarah Palin] was mocked, scorned from sea to shining sea, including by the eminent Paul Krugman for being, he said, among those spreading 'the death penalty lie' as part of 'the lunatic fringe.'"
'Some years down the pike,' he said, 'we're going to get the real solution, which is going to be a combination of death panels and sales taxes.' That would mean the U.S. Debt Reduction Commission 'should have endorsed the panel that was part of the [Obama] health care reform.'"
"[Sarah Palin] was mocked, scorned from sea to shining sea, including by the eminent Paul Krugman for being, he said, among those spreading 'the death penalty lie' as part of 'the lunatic fringe.'"
For Big-Spending Hawks, the U.S. Military's Work Is Never Done | Doug Bandow | Cato Institute: Commentary
For Big-Spending Hawks, the U.S. Military's Work Is Never Done | Doug Bandow | Cato Institute: Commentary: "The Constitution authorizes the national government to act in the 'common defense' — of America, not the rest of the world. None of the founders imagined that the U.S. would become Globocop, busy protecting populous and prosperous allies (international social welfare) and attempting to rebuild failed societies (foreign social engineering)."
Massachusetts Cop Was Killed by Career Criminal Out on Parole Despite Three Life Sentences - FoxNews.com
Massachusetts Cop Was Killed by Career Criminal Out on Parole Despite Three Life Sentences - FoxNews.com: "Cinelli had a lengthy rap sheet filled with armed robberies, assaults and other offenses, had been serving three life sentences since 1976, and had chronic disciplinary problems while in prison including two escapes during which he committed crimes, the Globe reported.
Still, he won the board over by saying the deaths in the family, including his mother's, and drug counseling changed him, the paper reported."
Still, he won the board over by saying the deaths in the family, including his mother's, and drug counseling changed him, the paper reported."
Korean schools welcome more robot teachers | Crave - CNET
Korean schools welcome more robot teachers | Crave - CNET: "state education budgets have been strained by importing thousands of foreign teachers, who are increasingly unwilling to live in remote areas and on islands. I don't think a telepresence robot can really replace a human teacher, but then again I nearly nodded off a few times in class during my teaching stint in Korea. A robot would never do that."
Man Arrested at Miami Airport After Bullet Parts Found in Bag - FoxNews.com
Man Arrested at Miami Airport After Bullet Parts Found in Bag - FoxNews.com: "A 37-year-old man is facing a federal charge after bullet primers [of several hundred] ignited in his bag as it was being unloaded at Miami International Airport from a flight that had just arrived."
They didn't find them on the way in?
They didn't find them on the way in?
Wednesday, December 29, 2010
Politicians' Time Is Not Much More Important Than Ours | Gene Healy | Cato Institute: Commentary
Politicians' Time Is Not Much More Important Than Ours | Gene Healy | Cato Institute: Commentary: "Asked last week whether she would submit to a Transportation Security Administration pat-down, Secretary of State Hillary Clinton snorted: 'Not if I could avoid it, ha, ha, ha! ... Who would?'
As a Cabinet secretary, she can avoid it, as can top congressional leaders. Membership has its privileges."
"In 2006, the Secret Service insisted that the Virginia Department of Transportation shut down all HOV lanes on Interstate 395 for six hours so President Bush could get to a fundraiser"
As a Cabinet secretary, she can avoid it, as can top congressional leaders. Membership has its privileges."
"In 2006, the Secret Service insisted that the Virginia Department of Transportation shut down all HOV lanes on Interstate 395 for six hours so President Bush could get to a fundraiser"
Politicians' Time Is Not Much More Important Than Ours | Gene Healy | Cato Institute: Commentary
Politicians' Time Is Not Much More Important Than Ours | Gene Healy | Cato Institute: Commentary: "Asked last week whether she would submit to a Transportation Security Administration pat-down, Secretary of State Hillary Clinton snorted: 'Not if I could avoid it, ha, ha, ha! ... Who would?'
As a Cabinet secretary, she can avoid it, as can top congressional leaders. Membership has its privileges."
"In 2006, the Secret Service insisted that the Virginia Department of Transportation shut down all HOV lanes on Interstate 395 for six hours so President Bush could get to a fundraiser"
As a Cabinet secretary, she can avoid it, as can top congressional leaders. Membership has its privileges."
"In 2006, the Secret Service insisted that the Virginia Department of Transportation shut down all HOV lanes on Interstate 395 for six hours so President Bush could get to a fundraiser"
New tax law packed with obscure business tax cuts - FoxNews.com
New tax law packed with obscure business tax cuts - FoxNews.com: "The massive new tax bill signed into law by President Barack Obama is filled with all kinds of holiday stocking stuffers for businesses: tax breaks for producing TV shows, grants for putting up windmills, rum subsidies for Puerto Rico and the Virgin Islands.
There is even a tax break for people who buy race horses."
"Most of the business tax breaks — about 50 in all — are part of a package that expires each year, creating uncertainty for tax planners but lots of business for lobbyists."
"There is a generous tax break for banks and insurance companies that invest overseas, a tax credit for railroad track maintenance, more generous write-offs for upgrading motorsport race tracks, and increased deductions for businesses that donate books and computers to public schools and libraries."
There is even a tax break for people who buy race horses."
"Most of the business tax breaks — about 50 in all — are part of a package that expires each year, creating uncertainty for tax planners but lots of business for lobbyists."
"There is a generous tax break for banks and insurance companies that invest overseas, a tax credit for railroad track maintenance, more generous write-offs for upgrading motorsport race tracks, and increased deductions for businesses that donate books and computers to public schools and libraries."
Thursday, December 23, 2010
Negative rights vs. Positive rights | Cranach: The Blog of Veith
Negative rights vs. Positive rights | Cranach: The Blog of Veith: "The problem is that elevating benefits to the level of rights confers an unlimited grant of power to the government. In the legislative process, laudable sentiments too often emerge as programs with unconstrained costs — or, in the case of the personal mandate in Obamacare, policies that rely on coercion. . . .
From government’s point of view, positive rights are marching orders. Heaven and earth must be moved to deliver the promises. The state grows rapidly and ultimately it outruns the capacity of the tax base to pay for it all, endangering the financial security of everyone.
Thirty years ago, Portugal’s government cost its taxpayers about 20 percent of GDP. Then a new constitution was written, chock full of positive rights — the right to housing, education, health, social security. The size of government doubled. Portugal’s borrowing costs, like that of Greece and Ireland, have ballooned."
From government’s point of view, positive rights are marching orders. Heaven and earth must be moved to deliver the promises. The state grows rapidly and ultimately it outruns the capacity of the tax base to pay for it all, endangering the financial security of everyone.
Thirty years ago, Portugal’s government cost its taxpayers about 20 percent of GDP. Then a new constitution was written, chock full of positive rights — the right to housing, education, health, social security. The size of government doubled. Portugal’s borrowing costs, like that of Greece and Ireland, have ballooned."
Obama cites Steve Jobs' wealth, product success | Nanotech - The Circuits Blog - CNET News
Obama cites Steve Jobs' wealth, product success | Nanotech - The Circuits Blog - CNET News: Obama said "We expect that person to be rich, and that's a good thing. We want that incentive. That's part of the free market,"
That doesn't seem to match with his comment that “I do think at a certain point you’ve made enough money”
That doesn't seem to match with his comment that “I do think at a certain point you’ve made enough money”
Wednesday, December 22, 2010
Feds Should Flunk out of Education | Neal McCluskey | Cato Institute: Commentary
Feds Should Flunk out of Education | Neal McCluskey | Cato Institute: Commentary: "On a per-pupil basis, the Digest reports an inflation-adjusted rise from $435 in 1970 to $1,015 in 2006"
"The problem is that politicians say lots of things, and, unlike when you pay more for a car to get better safety or mileage, when politicians spend money it's often not to get better education. No, it's to curry favor with teacher unions, administrator associations or other special interests whose members get paid with increased federal funding and will raise hell for politicians who don't push it. So spending goes up, up, up, but achievement stays down, down, down."
"The problem is that politicians say lots of things, and, unlike when you pay more for a car to get better safety or mileage, when politicians spend money it's often not to get better education. No, it's to curry favor with teacher unions, administrator associations or other special interests whose members get paid with increased federal funding and will raise hell for politicians who don't push it. So spending goes up, up, up, but achievement stays down, down, down."
TSA Searches, Bomb Risk Near Zero | Jim Harper | Cato Institute: Commentary
TSA Searches, Bomb Risk Near Zero | Jim Harper | Cato Institute: Commentary: "In 99 million domestic flights over the past decade, transporting seven billion U.S. travelers, there have been zero bombs snuck on to planes and detonated. (The one failed attempt came from overseas.) Common sense calls that a risk that's near zero."
"Air travel will never be 100 percent safe. But it would take a lot of successful attacks to make it more dangerous, for example, than driving."
"Air travel will never be 100 percent safe. But it would take a lot of successful attacks to make it more dangerous, for example, than driving."
On Air Security, We Are the Ones We've Been Waiting For | David Rittgers | Cato Institute: Commentary
On Air Security, We Are the Ones We've Been Waiting For | David Rittgers | Cato Institute: Commentary: "Passengers have been holding their own as a check on terrorists quite admirably ever since the traveling public learned that the rules of the hijacking game had changed.
The passengers on United Airlines Flight 93 immediately took action on Sept. 11, 2001, storming the cockpit and stopping another terrorist attack at the cost of their own lives. Three months later, two flight attendants and a defensive line of international travelers sacked would-be shoe bomber Richard Reid before he could score.
Homeland Security Secretary Janet Napolitano was right when she said that 'the system worked' after a Dutch filmmaker tackled the would-be Christmas Day 2009 bomber Umar Farouk Abdulmutallab. The system did work, if you count the passengers as part of 'the system.'"
The passengers on United Airlines Flight 93 immediately took action on Sept. 11, 2001, storming the cockpit and stopping another terrorist attack at the cost of their own lives. Three months later, two flight attendants and a defensive line of international travelers sacked would-be shoe bomber Richard Reid before he could score.
Homeland Security Secretary Janet Napolitano was right when she said that 'the system worked' after a Dutch filmmaker tackled the would-be Christmas Day 2009 bomber Umar Farouk Abdulmutallab. The system did work, if you count the passengers as part of 'the system.'"
Tuesday, December 21, 2010
The TSA's False Tradeoff - Robert P. Murphy - Mises Daily
The TSA's False Tradeoff - Robert P. Murphy - Mises Daily: "In fact, no matter what procedures are implemented, it's always possible that wily terrorists will still manage to beat the system. In real life, we can never guarantee safety. This is why so many pundits' discussions of airline travel miss the mark completely: they assume that there is some objective answer of 'the right' amount of security, when this is a complex economic question."
"Only in a truly free market — where different airlines are free to try different approaches to safety — could we approach a sensible solution to these difficult questions. Passengers who don't mind invasive scanning or sensitive inspections could patronize airlines offering these (cheap) techniques — assuming they were really necessary to achieve adequate safety. On the other hand, passengers who objected to these techniques could pay higher ticket prices in order to fly on airlines that hired teams of bomb-sniffing dogs, or set up very secure prescreening procedures (perhaps with retinal IDing in order to board a flight), or implemented some as-yet-undreamt-of method to keep their flights safe, without resorting to methods that their customers found humiliating."
"One possibility is that the legal system would hold airlines strictly accountable for such property damage, and that the airlines would need to purchase massive insurance policies before obtaining permission to send giant steel containers full of jet fuel hurtling over skyscrapers and shopping malls."
"Only in a truly free market — where different airlines are free to try different approaches to safety — could we approach a sensible solution to these difficult questions. Passengers who don't mind invasive scanning or sensitive inspections could patronize airlines offering these (cheap) techniques — assuming they were really necessary to achieve adequate safety. On the other hand, passengers who objected to these techniques could pay higher ticket prices in order to fly on airlines that hired teams of bomb-sniffing dogs, or set up very secure prescreening procedures (perhaps with retinal IDing in order to board a flight), or implemented some as-yet-undreamt-of method to keep their flights safe, without resorting to methods that their customers found humiliating."
"One possibility is that the legal system would hold airlines strictly accountable for such property damage, and that the airlines would need to purchase massive insurance policies before obtaining permission to send giant steel containers full of jet fuel hurtling over skyscrapers and shopping malls."
End the IMF - Henry Hazlitt - Mises Daily
End the IMF - Henry Hazlitt - Mises Daily: "If there were no IMF, governments whose currencies were shaky as a result of their reckless fiscal and monetary policies would be forced to go to private bankers or investors to extricate them, and private investors would insist on guarantees of fiscal and monetary discipline as a condition of such help. But Keynes insured that a nation's 'domestic' inflationary policies 'shall be immune from criticism by the Fund.' He provided for automatic borrowing rights, and left any aid conditions to the necessarily political decisions of other governments through their representatives on the IMF."
A Tale of Two Colonies - Gary Galles - Mises Daily
A Tale of Two Colonies - Gary Galles - Mises Daily: "The change from communal- to private-property rights dramatically increased the Pilgrims' productivity. The beginnings of that productivity led to the bounty celebrated at Plymouth's famous 1623 Thanksgiving. And as historian Russell Kirk reported, 'never again were the Pilgrims short of food.'"
Monday, December 20, 2010
Thoughtless Taxation | Richard W. Rahn | Cato Institute: Commentary
Thoughtless Taxation | Richard W. Rahn | Cato Institute: Commentary: "Many Democrats, including many lame ducks, are still demanding that tax rates for entrepreneurs be increased under the absurd claim that not to do so will 'cost' the government 'almost $2 trillion over the 2011-20 period' in lost tax revenues. To believe these bogus numbers that the Joint Tax Committee staff and the administration put out about the revenue loss, one needs to believe that upper-income people will not alter their behavior when faced with higher tax rates, that high marginal tax rates on capital (the seed corn of the economy) and double taxation of it do not damage economic growth and job creation, and that the government is smaller than its optimum size to maximize the general welfare. The empirical evidence as well as good economic theory demonstrate that none of the above is true — but to those politicians, mainstream media sorts and left-wing economists who cannot understand the difference between variables and constants, facts don't matter.
The Wall Street Journal reported this past week, 'Some of the nation's largest banks are exiting or scaling back their dealings with foreign embassies and missions because of the burden of complying with money-laundering regulations.' The head of the Angolan mission to the United States said, 'Bank account closures strain relations with the U.S. ... Without bank accounts, we find it very difficult to function.' Surprise, surprise. Most people (other than members of Congress and government bureaucrats) can figure out not to take an action if the costs outweigh the benefits. U.S. government financial regulations on banks have reached the point where it is no longer profitable for banks to engage in many normal and necessary banking operations, particularly with foreigners. Not a good way to make friends.
In March, Congress passed the 'HIRE Act' which has had the unintended — but not unforeseen by many of us — consequence of causing foreign banks to withdraw from investing in the United States because of the costs and uncertain liabilities of dealing with U.S. government regulations. Thus, the United States may lose a trillion or more dollars in foreign investment under the guise of picking up a few billion dollars in tax-avoidance revenue."
"Both plans recognize that tax increases have adverse economic consequences and are far more damaging than spending cuts, but both plans endorse major tax increases. Neither plan seems to have asked the fundamental question, which is: Why do we need to have a government bigger than the revenue the tax code now produces? The simple answer is that we don't.
Government is growing faster than the private sector, and thus it is an arithmetic fact that no amount of tax increases can solve this spending problem. When a politician promises a spending 'entitlement' to one person, that politician is also making the normally unstated promise to make someone else a tax slave to pay for the entitlement."
The Wall Street Journal reported this past week, 'Some of the nation's largest banks are exiting or scaling back their dealings with foreign embassies and missions because of the burden of complying with money-laundering regulations.' The head of the Angolan mission to the United States said, 'Bank account closures strain relations with the U.S. ... Without bank accounts, we find it very difficult to function.' Surprise, surprise. Most people (other than members of Congress and government bureaucrats) can figure out not to take an action if the costs outweigh the benefits. U.S. government financial regulations on banks have reached the point where it is no longer profitable for banks to engage in many normal and necessary banking operations, particularly with foreigners. Not a good way to make friends.
In March, Congress passed the 'HIRE Act' which has had the unintended — but not unforeseen by many of us — consequence of causing foreign banks to withdraw from investing in the United States because of the costs and uncertain liabilities of dealing with U.S. government regulations. Thus, the United States may lose a trillion or more dollars in foreign investment under the guise of picking up a few billion dollars in tax-avoidance revenue."
"Both plans recognize that tax increases have adverse economic consequences and are far more damaging than spending cuts, but both plans endorse major tax increases. Neither plan seems to have asked the fundamental question, which is: Why do we need to have a government bigger than the revenue the tax code now produces? The simple answer is that we don't.
Government is growing faster than the private sector, and thus it is an arithmetic fact that no amount of tax increases can solve this spending problem. When a politician promises a spending 'entitlement' to one person, that politician is also making the normally unstated promise to make someone else a tax slave to pay for the entitlement."
Conservatives Share Blame for TSA's 'Freedom Fondle' | Gene Healy | Cato Institute: Commentary
Conservatives Share Blame for TSA's 'Freedom Fondle' | Gene Healy | Cato Institute: Commentary: "But when every bungled attack — no matter how inept — gets the screeching siren treatment on Drudge, what do you expect that political dynamic to produce? Sober, sensible policy?"
"when prominent conservatives brush off constitutional concerns with the bromide 'the Constitution is not a suicide pact,' (or, as Mitt Romney put it in 2007, 'Our most basic civil liberty is the right to be kept alive') is it so surprising that liberty and dignity get sent to the back of the line?
Like it or not, we live in the world the alarmists have made.
Yet, in reality, we're remarkably safe. In 2009, terrorists caused just 25 U.S. noncombatant fatalities worldwide. That's 25 too many, but 'existential,' it's not.
My colleague Jim Harper points out that, since 9/11, 'in 99 million domestic flights, transporting 7 billion people, precisely zero domestic travelers have snuck an underpants bomb onto a plane. (The one that we have seen — which did not work — came from overseas.)'
Surely the existence of the TSA — hapless and bureaucratic as they are — deters some potential bombers. Even so, the agency won't — likely can't — identify a single genuine terrorist they've caught, and it's not at all clear, according to the Government Accountability Office, that even the nude machine would have exposed the Christmas bomber.
We're safe — but not perfectly safe. Hyping and politicizing the terrorist threat won't deliver us perfect safety. Nothing can. But, as we're learning, it can put us on the path toward a society that no longer looks like America — one where you're endlessly prodded and poked — and ordered not to joke about the poking."
"when prominent conservatives brush off constitutional concerns with the bromide 'the Constitution is not a suicide pact,' (or, as Mitt Romney put it in 2007, 'Our most basic civil liberty is the right to be kept alive') is it so surprising that liberty and dignity get sent to the back of the line?
Like it or not, we live in the world the alarmists have made.
Yet, in reality, we're remarkably safe. In 2009, terrorists caused just 25 U.S. noncombatant fatalities worldwide. That's 25 too many, but 'existential,' it's not.
My colleague Jim Harper points out that, since 9/11, 'in 99 million domestic flights, transporting 7 billion people, precisely zero domestic travelers have snuck an underpants bomb onto a plane. (The one that we have seen — which did not work — came from overseas.)'
Surely the existence of the TSA — hapless and bureaucratic as they are — deters some potential bombers. Even so, the agency won't — likely can't — identify a single genuine terrorist they've caught, and it's not at all clear, according to the Government Accountability Office, that even the nude machine would have exposed the Christmas bomber.
We're safe — but not perfectly safe. Hyping and politicizing the terrorist threat won't deliver us perfect safety. Nothing can. But, as we're learning, it can put us on the path toward a society that no longer looks like America — one where you're endlessly prodded and poked — and ordered not to joke about the poking."
A Public Display of BMA Ignorance | Patrick Basham and John Luik | Cato Institute: Commentary
A Public Display of BMA Ignorance | Patrick Basham and John Luik | Cato Institute: Commentary: "proponents usually argue that the sole aim of tobacco display bans is to reduce youth smoking. So why does the BMA's statement suggest that other goals are being promoted, too? Why is Ireland now held up as a tobacco control nirvana? Most importantly, why does the BMA ignore a plethora of contrary economic evidence on the effects of such bans?
Until very recently, tobacco-control advocates campaigned for a display ban because it would lead to reduced youth smoking, full stop. But the evidence from various jurisdictions that have implemented a display ban suggests that smoking prevalence, especially among adolescents, is at best unaffected by such a ban. Indeed, there is evidence in some places that display bans have coincided with an increase in smoking.
Consequently, ban advocates are quietly and subtly moving the empirical goalposts. They are replacing youth smoking levels as the test of success with a measurement of how many young people perceive that their peers are smoking and then propagating a lower score as 'evidence' of the display ban's effectiveness. It is an intellectually dubious tactic, but left unchallenged it may do the trick, politically."
Until very recently, tobacco-control advocates campaigned for a display ban because it would lead to reduced youth smoking, full stop. But the evidence from various jurisdictions that have implemented a display ban suggests that smoking prevalence, especially among adolescents, is at best unaffected by such a ban. Indeed, there is evidence in some places that display bans have coincided with an increase in smoking.
Consequently, ban advocates are quietly and subtly moving the empirical goalposts. They are replacing youth smoking levels as the test of success with a measurement of how many young people perceive that their peers are smoking and then propagating a lower score as 'evidence' of the display ban's effectiveness. It is an intellectually dubious tactic, but left unchallenged it may do the trick, politically."
Friday, December 17, 2010
Almost no oil recovered from sand berms - FoxNews.com
Almost no oil recovered from sand berms - FoxNews.com: "The government has said that much of the crude that spewed from BP's well following the April 20 rig explosion was skimmed, burned, collected or dispersed. E-mails, internal reports and a log of oil sightings obtained by AP confirm that very little of the estimated 200 million gallons that gushed from the bottom of the sea has been seen on or recovered from the berms."
Hindsight is 20/20. At the time, was it a reasonable precaution given the uncertainty?
Hindsight is 20/20. At the time, was it a reasonable precaution given the uncertainty?
Wednesday, December 15, 2010
Search warrants and online data: Getting real | Privacy Inc. - CNET News
Search warrants and online data: Getting real | Privacy Inc. - CNET News: "Law enforcement agencies have long argued that users who store data with third parties cannot reasonably expect such data to be protected by the Fourth Amendment. The Sixth Circuit disagreed. The judges explicitly rejected the view that since most terms-of-service agreements include provisions that allow an ISP to inspect or audit the user's information, users cannot reasonably expect that their data is private, once stored in the cloud."
Tuesday, December 14, 2010
LinkedIn disables passwords in wake of Gawker attack | InSecurity Complex - CNET News
LinkedIn disables passwords in wake of Gawker attack | InSecurity Complex - CNET News: "LinkedIn is disabling passwords of users whose e-mail addresses were included in the customer data that was exposed in an attack on the Gawker blog sites."
A smart move!
A smart move!
Israel repatriates 150 Sudanese in broader effort to discourage African influx - CSMonitor.com
Israel repatriates 150 Sudanese in broader effort to discourage African influx - CSMonitor.com: "'What does voluntary mean? Systematically, the government is forcing them to go because they aren't providing them assistance,'' says Yohannes Bayu"
How does not providing assistance mean that they are forcing them to leave?
How does not providing assistance mean that they are forcing them to leave?
Production, Enterprise, and Service to Society - Ludwig von Mises - Mises Daily
Production, Enterprise, and Service to Society - Ludwig von Mises - Mises Daily: "In the capitalistic economy, it is consumer demand that determines the pattern and direction of production, precisely because entrepreneurs and capitalists must consider the profitability of their enterprises."
"Entrepreneurs try to produce those goods the sale of which offers them the highest possible gain. They expand production of any particular item up to the point at which it ceases to be profitable. If the entrepreneur produces only those goods whose sale gives promise of yielding a profit, this means that they are producing no commodities for the manufacture of which labor and capital goods must be used which are needed for the manufacture of other commodities more urgently desired by consumers."
"By shifting the height of wages, the market directs workers into those branches of production in which they are most urgently needed. Thus the market supplies to each type of employment that quality and quantity of labor needed to satisfy consumer wants in the best possible way."
"In the capitalistic society, men become rich — directly as the producer of consumers' goods, or indirectly as the producer of raw materials and semiproduced factors of production — by serving consumers in large numbers. This means that men who become rich in the capitalistic society are serving the people. The capitalistic market economy is a democracy in which every penny constitutes a vote. The wealth of the successful businessman is the result of a consumer plebiscite. Wealth, once acquired, can be preserved only by those who keep on earning it anew by satisfying the wishes of consumers."
"Directly or indirectly, capitalistic production serves primarily the consumption of the masses."
"Entrepreneurs try to produce those goods the sale of which offers them the highest possible gain. They expand production of any particular item up to the point at which it ceases to be profitable. If the entrepreneur produces only those goods whose sale gives promise of yielding a profit, this means that they are producing no commodities for the manufacture of which labor and capital goods must be used which are needed for the manufacture of other commodities more urgently desired by consumers."
"By shifting the height of wages, the market directs workers into those branches of production in which they are most urgently needed. Thus the market supplies to each type of employment that quality and quantity of labor needed to satisfy consumer wants in the best possible way."
"In the capitalistic society, men become rich — directly as the producer of consumers' goods, or indirectly as the producer of raw materials and semiproduced factors of production — by serving consumers in large numbers. This means that men who become rich in the capitalistic society are serving the people. The capitalistic market economy is a democracy in which every penny constitutes a vote. The wealth of the successful businessman is the result of a consumer plebiscite. Wealth, once acquired, can be preserved only by those who keep on earning it anew by satisfying the wishes of consumers."
"Directly or indirectly, capitalistic production serves primarily the consumption of the masses."
A U.S. Defense Budget Worthy of Its Name | Christopher Preble and Benjamin H. Friedman | Cato Institute: Commentary
A U.S. Defense Budget Worthy of Its Name | Christopher Preble and Benjamin H. Friedman | Cato Institute: Commentary: "the best hedge against an uncertain future is a prosperous and innovative economy supporting a capable military that can be expanded to meet rivals should they arise."
Indian start-up strikes deal to combat counterfeiting of medicine - CSMonitor.com
Indian start-up strikes deal to combat counterfeiting of medicine - CSMonitor.com: "The company will print a random code on up to 70 million pill packets, which customers can then text message to a phone number linked to a database. Computers look up the code, cross it off, and send back the expiration date and batch number to the customer."
A Republican Agenda of Real Change | Doug Bandow | Cato Institute: Commentary
A Republican Agenda of Real Change | Doug Bandow | Cato Institute: Commentary: "The Republican Party is resurgent. But the last two periods of GOP dominance ended in political disaster. Unless Republicans promote real change — namely limited, constitutional government — they are likely to be sent back to political oblivion again. And deservedly so.
Today Republican candidates are capitalizing on the wave of popular anger over excessive federal spending. Yet they are as responsible as Democrats for America's financial and constitutional crises."
"Republicans constantly cite the founders, but imagine what those who backed the Bill of Rights would have thought of the claim that the president could order the arrest of an American citizen on American soil and have him be held in solitary confinement — potentially forever. And what the original revolutionaries would have thought of the GOP suggestion that there was no constitutional, congressional, or judicial limit to the president's war-time powers? Which, given the fact that the 'War on Terrorism' may go on forever and that the chief battlefield is the American homeland, means that the president has the powers of an elective dictator if he chooses to wield them."
"the only welfare that the federal government should consider supplying is for the poor. No more corporate welfare. No more pork-barrel hand-outs to local voters, campaign supporters, and influential interests. And no more middle-class welfare, benefits for Americans who can afford to care for themselves. This means directly confronting Medicare and Social Security, ending benefits for the well-to-do and allowing younger people to opt out of the programs."
"Most of what Washington does today has nothing to do with protecting America. The big U.S. commitments are simply a form of international welfare. The Europeans don't need defending: after all, collectively they have a bigger population and economy than America. South Korea has huge advantages over North Korea. Japan has much at stake in a stable international economic order, yet devotes less than one-fourth as much effort to defense as we do.
It is bad enough when the Republican Party forces U.S. taxpayers to pay for an American welfare state. But why should the GOP make working Americans subsidize even more lavish European welfare states?"
Today Republican candidates are capitalizing on the wave of popular anger over excessive federal spending. Yet they are as responsible as Democrats for America's financial and constitutional crises."
"Republicans constantly cite the founders, but imagine what those who backed the Bill of Rights would have thought of the claim that the president could order the arrest of an American citizen on American soil and have him be held in solitary confinement — potentially forever. And what the original revolutionaries would have thought of the GOP suggestion that there was no constitutional, congressional, or judicial limit to the president's war-time powers? Which, given the fact that the 'War on Terrorism' may go on forever and that the chief battlefield is the American homeland, means that the president has the powers of an elective dictator if he chooses to wield them."
"the only welfare that the federal government should consider supplying is for the poor. No more corporate welfare. No more pork-barrel hand-outs to local voters, campaign supporters, and influential interests. And no more middle-class welfare, benefits for Americans who can afford to care for themselves. This means directly confronting Medicare and Social Security, ending benefits for the well-to-do and allowing younger people to opt out of the programs."
"Most of what Washington does today has nothing to do with protecting America. The big U.S. commitments are simply a form of international welfare. The Europeans don't need defending: after all, collectively they have a bigger population and economy than America. South Korea has huge advantages over North Korea. Japan has much at stake in a stable international economic order, yet devotes less than one-fourth as much effort to defense as we do.
It is bad enough when the Republican Party forces U.S. taxpayers to pay for an American welfare state. But why should the GOP make working Americans subsidize even more lavish European welfare states?"
Nobel Laureate Diamond Is Unqualified for Fed | Mark A. Calabria | Cato Institute: Commentary
Nobel Laureate Diamond Is Unqualified for Fed | Mark A. Calabria | Cato Institute: Commentary: "According to Section 10-1 of the Federal Reserve Act, the next member of the Board of Governors may not come from a Fed district that already has representation on the board. As both common sense and his Senate paperwork confirm, Diamond is from Massachusetts. So is Fed Governor Dan Tarullo. Unless Tarullo is resigning, Diamond is ineligible.
To get around this quandary, the White House says Diamond is actually from Chicago. The basis of this claim is that he has lectured at Northwestern University. To believe that giving a lecture at the school, located in Evanston, Illinois, makes one 'from' Chicago displays contempt for the law that is unique even for this administration."
"In fact, we largely had price stability in the days when the Fed board lacked academics.
If anything, this era of a 'scientific' Fed has been characterized by rampant inflation. That shouldn't be surprising since it was academics who came up with the notion that you can debase your way to prosperity."
To get around this quandary, the White House says Diamond is actually from Chicago. The basis of this claim is that he has lectured at Northwestern University. To believe that giving a lecture at the school, located in Evanston, Illinois, makes one 'from' Chicago displays contempt for the law that is unique even for this administration."
"In fact, we largely had price stability in the days when the Fed board lacked academics.
If anything, this era of a 'scientific' Fed has been characterized by rampant inflation. That shouldn't be surprising since it was academics who came up with the notion that you can debase your way to prosperity."
Why New York Shouldn't Mourn Earmarks | Tad DeHaven | Cato Institute: Commentary
Why New York Shouldn't Mourn Earmarks | Tad DeHaven | Cato Institute: Commentary: "Federal administration costs are about 5% of the value of CDBG grants, with local and state governments taking a 17% and 8% cut, respectively."
Who Was R.C. Hoiles? - Jeff Riggenbach - Mises Daily
Who Was R.C. Hoiles? - Jeff Riggenbach - Mises Daily: "Hoiles found, he said, that while his
"'The most harmful error most honest people make,' he wrote in an editorial in the Santa Ana Register,
"As Hoiles himself put it, 'Any time a man has to pay for something he does not want because of the initiating of force by the government, he is, to that degree, a slave.'"
school texts exposed the political 'error' of the divine right of kings … they never explained the error in the divine right of the majority. [They] simply substituted the divine right of the majority for the divine right of kings."
"'The most harmful error most honest people make,' he wrote in an editorial in the Santa Ana Register,
is the belief that a group or a government can do things that would be harmful and wicked if done by an individual and produce results that are not harmful, unjust and wicked. It is the belief that a number of people doing a thing that is wrong for an individual to do, can make it right and just."
"As Hoiles himself put it, 'Any time a man has to pay for something he does not want because of the initiating of force by the government, he is, to that degree, a slave.'"
Monday, December 13, 2010
What Drives Profits? - Kel Kelly - Mises Daily
What Drives Profits? - Kel Kelly - Mises Daily: "Paradoxical as it might sound, lower profits and lower prices — not higher profits and higher prices — are what result from economic progress. All taxes applied to profits, interest, inheritance, etc. — taxes paid with funds that would otherwise support productive processes — reduce economic growth."
Whoppers with Sleaze | Walter Olson | Cato Institute: Commentary
Whoppers with Sleaze | Walter Olson | Cato Institute: Commentary: "Staffers at the Health Department were sharply divided about whether the proposed ads went beyond the available science in demonizing sweet drinks. The city's health commissioner, Dr. Thomas A. Farley, overruled three subordinates, including his chief nutritionist, to push things forward.
• 'The scientists, [the city's nutritionist] said, 'will make mincemeat of us.' ' 'Basic premise doesn't work,' said a Columbia professor of pediatrics and clinical medicine whom the city consulted."
"Incredibly, New York City's latest ad, on salt in processed foods, is even worse. It shows a can of soup bursting at the seams with table salt, whole mounds and piles of it. The city's underlying point is not 100 percent off-base — healthful in most other ways, conventional canned soup is a relatively salty food — but the actual amount of salt in a can is more like 1 teaspoon, not the third of a cup or more depicted in the city's ridiculously exaggerated photo. Not to put too fine a point on it, but the Bloomberg soup ad is built on a visual lie.
What would happen if a private advertiser tried to get away with imagery as misleading as this? Well, in 1970, in a case still taught in business schools, Campbell's got caught manipulating the soup pictures in its ads; its photographers had put marbles at the bottom of the bowl so that the pleasing vegetables would be more visible on top. The Federal Trade Commission filed a deceptive-advertising complaint to make the company stop."
• 'The scientists, [the city's nutritionist] said, 'will make mincemeat of us.' ' 'Basic premise doesn't work,' said a Columbia professor of pediatrics and clinical medicine whom the city consulted."
"Incredibly, New York City's latest ad, on salt in processed foods, is even worse. It shows a can of soup bursting at the seams with table salt, whole mounds and piles of it. The city's underlying point is not 100 percent off-base — healthful in most other ways, conventional canned soup is a relatively salty food — but the actual amount of salt in a can is more like 1 teaspoon, not the third of a cup or more depicted in the city's ridiculously exaggerated photo. Not to put too fine a point on it, but the Bloomberg soup ad is built on a visual lie.
What would happen if a private advertiser tried to get away with imagery as misleading as this? Well, in 1970, in a case still taught in business schools, Campbell's got caught manipulating the soup pictures in its ads; its photographers had put marbles at the bottom of the bowl so that the pleasing vegetables would be more visible on top. The Federal Trade Commission filed a deceptive-advertising complaint to make the company stop."
The GOP's Budget Cowardice | Michael D. Tanner | Cato Institute: Commentary
The GOP's Budget Cowardice | Michael D. Tanner | Cato Institute: Commentary: "It's time to face some hard facts: To actually bring the budget into balance by 2019 will require as much as a 20 percent reduction in spending relative to the level to which it would otherwise grow with inflation. That's total spending, not just domestic discretionary spending. To truly roll back the size of government — to, say, the 18 percent of GDP it consumed during the Clinton presidency — would require even bigger cuts. How does the GOP pretend that we can get there simply by cutting 'waste, fraud, and abuse,' and without putting entitlements or defense on the table?"
Body Scanners: The Naked Truth | David Rittgers | Cato Institute: Commentary
Body Scanners: The Naked Truth | David Rittgers | Cato Institute: Commentary: "the scanners fare poorly against low-density materials such as thin plastics, gels and liquids. Care to guess what Abdulmutallab's bomb was made of? The Government Accountability Office reported in March that it's not clear that a scanner would've detected that device.
Even if the scanners did work against low-density materials, the same group linked to the Christmas bomb, Al Qaeda in the Arabian Peninsula, has already found another way to defeat the technology: hiding bombs inside the human body: A would-be AQAP assassin tried to kill a senior Saudi counterterrorism official with a bomb hidden where only a proctologist would find it.
That bomb wound up killing only its carrier. But a more enterprising terrorist could go to the plane bathroom to remove bomb components hidden in a body cavity, then place them against the aircraft hull — and the results would be far different.
Terrorists already know how to beat body scanners with low-tech (really, no-tech) techniques, but the federal government still spends billions on this gadget."
"An army of executives for scanner-producing corporations — mostly former high-ranking Homeland Security officials — successfully lobbied Congress into spending $300 million in stimulus money to buy the scanners. But running them will cost another $340 million each year. Operating them means 5,000 added TSA personnel, growing the screener workforce by 10 percent. This, when the federal debt commission is saying that we must cut federal employment rolls, including some FBI agents, just to keep spending sustainable.
Why cut funding for the people who actually catch terrorists to add more pointless hassles at the airport?"
Even if the scanners did work against low-density materials, the same group linked to the Christmas bomb, Al Qaeda in the Arabian Peninsula, has already found another way to defeat the technology: hiding bombs inside the human body: A would-be AQAP assassin tried to kill a senior Saudi counterterrorism official with a bomb hidden where only a proctologist would find it.
That bomb wound up killing only its carrier. But a more enterprising terrorist could go to the plane bathroom to remove bomb components hidden in a body cavity, then place them against the aircraft hull — and the results would be far different.
Terrorists already know how to beat body scanners with low-tech (really, no-tech) techniques, but the federal government still spends billions on this gadget."
"An army of executives for scanner-producing corporations — mostly former high-ranking Homeland Security officials — successfully lobbied Congress into spending $300 million in stimulus money to buy the scanners. But running them will cost another $340 million each year. Operating them means 5,000 added TSA personnel, growing the screener workforce by 10 percent. This, when the federal debt commission is saying that we must cut federal employment rolls, including some FBI agents, just to keep spending sustainable.
Why cut funding for the people who actually catch terrorists to add more pointless hassles at the airport?"
Sunday, December 12, 2010
You and Your Neighbor's Pork | Brandon Arnold | Cato Institute: Commentary
You and Your Neighbor's Pork | Brandon Arnold | Cato Institute: Commentary: "Earmark advocates love to brag about their newest project and are pretty good at making constituents believe they're particularly adept at this practice. However, most members of Congress are bringing home such a small piece of the earmark pie that their constituents would be far better off if they never sent their tax dollars to Washington in the first place.
Thirty-four states and the District of Columbia are 'earmark donor states.' Their citizens receive only a small percentage of earmarks relative to the share of taxes they send to Washington. Yet 90 percent of the U.S. population lives in these donor states."
Thirty-four states and the District of Columbia are 'earmark donor states.' Their citizens receive only a small percentage of earmarks relative to the share of taxes they send to Washington. Yet 90 percent of the U.S. population lives in these donor states."
Saturday, December 11, 2010
Congress Average Salary: Is It Too High? - PayScale Resources
Congress Average Salary: Is It Too High? - PayScale Resources: "According to PayScale.com, the median earnings for people in the US between the ages of 55-64 (which is the median age of US Congress and Cabinet members) who hold at least a bachelor's degree and work full-time is $73,700. This income is far below what Congress and Cabinet members earn. Perhaps a congressional campaign would be a smart next career move."
Friday, December 10, 2010
How do you find an effective teacher? Ask a kid - FoxNews.com
How do you find an effective teacher? Ask a kid - FoxNews.com: "— The average student knows effective teaching when he or she experiences it.
— In every grade and every subject, a teacher's past success in raising student achievement on state tests is one of the strongest predictors of his or her ability to do so again.
— The teachers with the highest value-added scores on state tests, which show improvement by individual students during the time they were in their classroom, are also the teachers who do the best job helping their students understand math concepts or demonstrate reading comprehension through writing.
— Valid feedback does not need to come from test scores alone. Other data can give teachers the information they need to improve, including student opinions of how organized and effective a teacher is."
— In every grade and every subject, a teacher's past success in raising student achievement on state tests is one of the strongest predictors of his or her ability to do so again.
— The teachers with the highest value-added scores on state tests, which show improvement by individual students during the time they were in their classroom, are also the teachers who do the best job helping their students understand math concepts or demonstrate reading comprehension through writing.
— Valid feedback does not need to come from test scores alone. Other data can give teachers the information they need to improve, including student opinions of how organized and effective a teacher is."
Obamanomics Leaving World Nervous | Daniel J. Mitchell | Cato Institute: Commentary
Obamanomics Leaving World Nervous | Daniel J. Mitchell | Cato Institute: Commentary: "When I was growing up, China's Communist leaders would attack the United States as 'capitalist running dogs.' How the world has changed: Chinese leaders now publicly fret about America's reliance on 'outmoded central planning.'"
"Ironically, the rest of the world has learned that easy money and deficit spending are a bad recipe, yet the White House somehow thinks that going back to Jimmy Carter's policies is the right approach for America."
"Ironically, the rest of the world has learned that easy money and deficit spending are a bad recipe, yet the White House somehow thinks that going back to Jimmy Carter's policies is the right approach for America."
Top GM exec says federal pay limits hurt company - FoxNews.com
Top GM exec says federal pay limits hurt company - FoxNews.com: "The top executive at General Motors said Friday that the automaker's attempt to rebound from its bankruptcy is being hindered by salary limits the government has clamped on executives at companies that accepted federal bailouts."
If you choose to receive special gifts from the government, you can't complain when their rules hurt you.
If you choose to receive special gifts from the government, you can't complain when their rules hurt you.
Thursday, December 09, 2010
High-speed rail in Wisconsin off track? | New Richmond News | New Richmond, Wisconsin
High-speed rail in Wisconsin off track? | New Richmond News | New Richmond, Wisconsin: "Had the Milwaukee to Madison line gone through, Walker said, taxpayers would have been 'on the hook' for as much as $7.5 million in annual operating subsidies to keep the line operational."
Wednesday, December 08, 2010
The Fantasy of Wealth Redistribution - Lorenz Kraus - Mises Daily
The Fantasy of Wealth Redistribution - Lorenz Kraus - Mises Daily: "you cannot chop to pieces and spread among the people an oven — and still have a working oven. You must respect the integrity of all capital goods for them to function. A power plant would have to be ground up into atoms and divided into baggies to get equality.
By their nature, capital goods cannot be redistributed among the people in any sense that results in equality and wealth. The redistribution of wealth, if taken seriously, necessarily means the complete and utter destruction of wealth. Socialism is nihilism, the destruction of values.
Communists never successfully distributed wealth equally. This is inherent in the nature of wealth. Because wealth cannot be subdivided (only rights to wealth can) to the masses, they seized wealth for their own clique. Everyone else starved. This is how the integrity of wealth asserts itself when seized. Socialists do not fight over air; their infighting is over this radio station, that printing press, these tanks, or this bit of rancid meat."
"hundreds of millions of people have thought that redistribution of wealth will lead to personal gain. Obama's redistribution of wealth brought economic destruction."
"Where in socialism do you, oh peasant, lay claim to your part of the public schools, the postal service, or the prisons? There is no similar mechanism to illustrate your ownership of the nationalized steel mill, auto company, coal mine, bank, or national park — and there is not much of a mine or mill left after it is nationalized or burned down.
Take out private-property rights and wealth vanishes. We revert to the ravaging of the commons and to mutually assured destitution."
By their nature, capital goods cannot be redistributed among the people in any sense that results in equality and wealth. The redistribution of wealth, if taken seriously, necessarily means the complete and utter destruction of wealth. Socialism is nihilism, the destruction of values.
Communists never successfully distributed wealth equally. This is inherent in the nature of wealth. Because wealth cannot be subdivided (only rights to wealth can) to the masses, they seized wealth for their own clique. Everyone else starved. This is how the integrity of wealth asserts itself when seized. Socialists do not fight over air; their infighting is over this radio station, that printing press, these tanks, or this bit of rancid meat."
"hundreds of millions of people have thought that redistribution of wealth will lead to personal gain. Obama's redistribution of wealth brought economic destruction."
"Where in socialism do you, oh peasant, lay claim to your part of the public schools, the postal service, or the prisons? There is no similar mechanism to illustrate your ownership of the nationalized steel mill, auto company, coal mine, bank, or national park — and there is not much of a mine or mill left after it is nationalized or burned down.
Take out private-property rights and wealth vanishes. We revert to the ravaging of the commons and to mutually assured destitution."
Monday, December 06, 2010
Feds block workers from WikiLeaks, mirror sites | Privacy Inc. - CNET News
Feds block workers from WikiLeaks, mirror sites | Privacy Inc. - CNET News: "Mark Leininger, Fermilab's computer security manager, wrote in an internal newsletter that WikiLeaks' Web site was being blocked because workers at the Batavia, Ill.-based lab could be at risk if they view classified information without being specifically approved for it."
Reminds me of an ostrich sticking its head in the ground.
Reminds me of an ostrich sticking its head in the ground.
FoxNews.com - Ben Bernanke Says Congress Should Not Cut Spending or Boost Taxes
FoxNews.com - Ben Bernanke Says Congress Should Not Cut Spending or Boost Taxes: "Lou Crandall, chief economist at Wrightson ICAP, said Bernanke is right that the Fed's purchases won't significantly change the amount of money circulating in the economy. That's mainly because banks aren't lending most of the money they already hold in reserve. When the Fed buys Treasurys, it increases the reserves in the banking system. For those reserves to actually 'create' money, the banks would have to lend it."
So it only sows the seeds for inflation.
So it only sows the seeds for inflation.
Friday, December 03, 2010
Botched execution survivor stays on Ohio death row - FoxNews.com
Botched execution survivor stays on Ohio death row - FoxNews.com: "Broom has said he was stuck with needles at least 18 times, with pain so intense that he cried and screamed.
He was sentenced to die for the 1984 rape and slaying of 14-year-old Tryna Middleton"
Tryna Middleton probably cried and screamed too!
He was sentenced to die for the 1984 rape and slaying of 14-year-old Tryna Middleton"
Tryna Middleton probably cried and screamed too!
Thursday, December 02, 2010
Campaign For Liberty — Waterboy
Campaign For Liberty — Waterboy: "David Axelrod argued the lie again today when he said we can't afford to spend our money on a tax cut for the rich when there are more important things to spend it on. Where to begin....a) leaving rates alone is not a cut, b) keeping your money is not spending, and c) it is not our money, it belongs to whoever earned it. But these are the liberal talking points, repeated over and over and over again, as if the quantity of repetition might improve the quality of the argument. It won't.
The no-tax-increase-is-spending argument is absurd on its face. If not raising taxes is the same as spending, then is electing not to steal money from a church the same as making a contribution? Do you think the IRS will let me deduct all the money I was going to steal from charities but then decided to let them keep?"
The no-tax-increase-is-spending argument is absurd on its face. If not raising taxes is the same as spending, then is electing not to steal money from a church the same as making a contribution? Do you think the IRS will let me deduct all the money I was going to steal from charities but then decided to let them keep?"
More Gridlock, Please | Michael D. Tanner | Cato Institute: Commentary
More Gridlock, Please | Michael D. Tanner | Cato Institute: Commentary: "We know from history that during periods of divided government, which tends to lead to gridlock, government spending increases by an average of less than 2% annually. In contrast, under unified government with cooperation rather than gridlock, spending grows by an average of more than 5%."
Wednesday, December 01, 2010
Ben Bernanke's Impossible Dream | Alan Reynolds | Cato Institute: Commentary
Ben Bernanke's Impossible Dream | Alan Reynolds | Cato Institute: Commentary: "This whole scheme raises nagging questions. Why would domestic investors accept a lower yield on bonds if they expect higher inflation? And why would foreign investors accept a lower yield on U.S. bonds if they expect exchange rate losses on dollar-denominated securities? Why wouldn't intelligent people shift their investments toward commodities or related stocks (such as mining and related machinery) and either shun, or sell short, long-term Treasurys? And if they did that, how could it possibly help the economy?"
"There is ample evidence from commodity and foreign-exchange markets that world investors are indeed confident the Fed will raise inflation. However, the growing interest in shorting long-term Treasury bonds shows that the market does not believe higher inflation is consistent with lower long-term interest rates.
In other words, Mr. Bernanke and his FOMC allies are risking higher interest rates and inflated commodity costs in the pursuit of the contradictory objectives of higher inflation and lower bond yields, seemingly oblivious to all the evidence that they are pursuing an impossible dream."
"There is ample evidence from commodity and foreign-exchange markets that world investors are indeed confident the Fed will raise inflation. However, the growing interest in shorting long-term Treasury bonds shows that the market does not believe higher inflation is consistent with lower long-term interest rates.
In other words, Mr. Bernanke and his FOMC allies are risking higher interest rates and inflated commodity costs in the pursuit of the contradictory objectives of higher inflation and lower bond yields, seemingly oblivious to all the evidence that they are pursuing an impossible dream."
Lost natural gas costs gov't $23M per year - FoxNews.com
Lost natural gas costs gov't $23M per year - FoxNews.com: "The government is losing tens of millions of dollars in potential royalties from energy companies that let immense volumes of natural gas escape into the atmosphere, congressional investigators said in a new report."
"The lost gas is equivalent to the annual greenhouse gas emissions of more than 3 million cars."
"Rusco said technology to capture the escaping gas is available and economical. He faulted the Interior Department for lax regulations on the issue and said the agency had greatly underestimated how much gas escapes from storage tanks and leaking equipment."
"The lost gas is equivalent to the annual greenhouse gas emissions of more than 3 million cars."
"Rusco said technology to capture the escaping gas is available and economical. He faulted the Interior Department for lax regulations on the issue and said the agency had greatly underestimated how much gas escapes from storage tanks and leaking equipment."
Tuesday, November 30, 2010
Colo. postal worker sentenced for swiping packages - FoxNews.com
Colo. postal worker sentenced for swiping packages - FoxNews.com: "A former Denver-area postal worker who pleaded guilty to stealing more than 11,000 packages and then selling their contents has been sentenced to 2.5 years in federal prison."
"The Postal Service estimates the losses at $283,913, but say there's no way to know how much was stolen."
That seems like a light sentence.
"The Postal Service estimates the losses at $283,913, but say there's no way to know how much was stolen."
That seems like a light sentence.
What Republicans Can -- And Can't -- Do about ObamaCare | Michael D. Tanner | Cato Institute: Commentary
What Republicans Can -- And Can't -- Do about ObamaCare | Michael D. Tanner | Cato Institute: Commentary: "Democratic Senator Ron Wyden of Oregon had asked for his state to be exempted from many of the law's provisions, including the individual mandate. Republicans should push to give it to him, and encourage other states to apply as well.
Republicans should also start laying out their own positive alternatives. It's not enough to simply repeal ObamaCare. Republicans will have to show that they have their own proposals for dealing with health care costs and the uninsured. They had a number of good ideas during the debate over reform, ranging from allowing the purchase of insurance across state lines to changing the tax treatment of individually owned insurance, but those ideas couldn't get much of a hearing while the president controlled the agenda. Now they can.
Finally, Republicans in the House now control the power of the purse. They should refuse to fund implementation of the bill. For example, the IRS says it will need to hire as many as 13,500 additional IRS agents to administer the law's unpopular individual mandate. Congress should refuse to appropriate the money to do so."
Republicans should also start laying out their own positive alternatives. It's not enough to simply repeal ObamaCare. Republicans will have to show that they have their own proposals for dealing with health care costs and the uninsured. They had a number of good ideas during the debate over reform, ranging from allowing the purchase of insurance across state lines to changing the tax treatment of individually owned insurance, but those ideas couldn't get much of a hearing while the president controlled the agenda. Now they can.
Finally, Republicans in the House now control the power of the purse. They should refuse to fund implementation of the bill. For example, the IRS says it will need to hire as many as 13,500 additional IRS agents to administer the law's unpopular individual mandate. Congress should refuse to appropriate the money to do so."
Monday, November 29, 2010
NJ school district: No D-grades policy a success - FoxNews.com
NJ school district: No D-grades policy a success - FoxNews.com: "Reynolds had proposed the policy last summer, saying he was tired of kids getting credit for not learning."
Tax break for employer health plans a target again - FoxNews.com
Tax break for employer health plans a target again - FoxNews.com: "The idea isn't to just raise revenue, economists say, but finally to turn Americans into frugal health care consumers by having them face the full costs of their medical decisions."
Taking the employer out of the health care picture has many benefits: More plan choices, better plan fit, cost savings.
Taking the employer out of the health care picture has many benefits: More plan choices, better plan fit, cost savings.
State workers will pay into pension fund | Hudson Star-Observer | Hudson, Wisconsin
State workers will pay into pension fund | Hudson Star-Observer | Hudson, Wisconsin: "Right now the state pays the entire employee contribution to the pensions of most state and university workers. That will change in January 2011, if only in a small way.
Most state workers will have to pay 2/10 of one percent of their retirement contributions. For an employee making about $40,000, that amounts to about $80 each year."
Did you see that? The state pays the "employee" portion!
Most state workers will have to pay 2/10 of one percent of their retirement contributions. For an employee making about $40,000, that amounts to about $80 each year."
Did you see that? The state pays the "employee" portion!
New at Reason: Mike Flynn, Shikha Dalmia, and Terry Colon on America's Absurd Immigration Waiting Line - Hit & Run : Reason Magazine
New at Reason: Mike Flynn, Shikha Dalmia, and Terry Colon on America's Absurd Immigration Waiting Line - Hit & Run : Reason Magazine: "From our October issue, Mike Flynn, Shikha Dalmia, and Terry Colon show what it takes to legally immigrate to America. Click on the image below to see a larger version. Click again to expand it.
Help Reason celebrate its next 40 years. Donate Now!"
Help Reason celebrate its next 40 years. Donate Now!"
Wednesday, November 24, 2010
Bernanke's Solutions Are the Problem - Mark Thornton - Mises Daily
Bernanke's Solutions Are the Problem - Mark Thornton - Mises Daily: "Historically, deflation was a common feature of the American economy, particularly before the establishment of the Federal Reserve. The one time that there was significant deflation and economic decline was the Great Depression.
Two economists published a study in the American Economic Review in 2004 that examined the association of deflation with depression. They looked at 17 countries and over 100 years of data and concluded that 'beyond the Great Depression, the notion that deflation and depression are linked virtually disappears."
"Possibly the worst of Bernanke's statements occurred in 2006, near the zenith of the housing bubble and at a time when all the exotic mortgage manipulations were in their 'prime.' This was the era of the subprime mortgage, the interest-only mortgage, the no-documentation loan, and the heyday of mortgage-backed securities. At the time, the new Fed chairman admitted the possibility of 'slower growth in house prices,' but confidently declared that if this did happen he would just lower interest rates.
Bernanke stated in 2006 that he believed that the mortgage market was more stable than in the past. He noted in particular that 'our examiners tell us that lending standards are generally sound and are not comparable to the standards that contributed to broad problems in the banking industry two decades ago. In particular, real-estate appraisal practices have improved.'[4] This is the equivalent of the Federal Reserve seal of approval being applied to mortgage lending at the pinnacle of the housing bubble."
"He denied there was a housing bubble in 2005, he denied that housing prices could decrease substantively in 2005 and that it would affect the real economy and employment in 2006, and he tried to calm fears about the subprime-mortgage market. He stated that he expected reasonable growth and strength in the economy in 2007, and that the problem in the subprime market (which had then become apparent) would not impact the overall mortgage market or the market in general.
In mid-2007 he declared the global economy strong and predicted a quick return to normal growth in the United States."
"Austrians were writing about the housing bubble, its cause, and the probable outcomes as early as 2003. Bernanke and others have denied that you can predict bubbles and crises"
Two economists published a study in the American Economic Review in 2004 that examined the association of deflation with depression. They looked at 17 countries and over 100 years of data and concluded that 'beyond the Great Depression, the notion that deflation and depression are linked virtually disappears."
"Possibly the worst of Bernanke's statements occurred in 2006, near the zenith of the housing bubble and at a time when all the exotic mortgage manipulations were in their 'prime.' This was the era of the subprime mortgage, the interest-only mortgage, the no-documentation loan, and the heyday of mortgage-backed securities. At the time, the new Fed chairman admitted the possibility of 'slower growth in house prices,' but confidently declared that if this did happen he would just lower interest rates.
Bernanke stated in 2006 that he believed that the mortgage market was more stable than in the past. He noted in particular that 'our examiners tell us that lending standards are generally sound and are not comparable to the standards that contributed to broad problems in the banking industry two decades ago. In particular, real-estate appraisal practices have improved.'[4] This is the equivalent of the Federal Reserve seal of approval being applied to mortgage lending at the pinnacle of the housing bubble."
"He denied there was a housing bubble in 2005, he denied that housing prices could decrease substantively in 2005 and that it would affect the real economy and employment in 2006, and he tried to calm fears about the subprime-mortgage market. He stated that he expected reasonable growth and strength in the economy in 2007, and that the problem in the subprime market (which had then become apparent) would not impact the overall mortgage market or the market in general.
In mid-2007 he declared the global economy strong and predicted a quick return to normal growth in the United States."
"Austrians were writing about the housing bubble, its cause, and the probable outcomes as early as 2003. Bernanke and others have denied that you can predict bubbles and crises"
Tuesday, November 23, 2010
Soak-the-Rich Taxes: Fail! - Robert P. Murphy - Mises Daily
Soak-the-Rich Taxes: Fail! - Robert P. Murphy - Mises Daily: "But with a progressive (or graduated) tax code, the revenues flowing into state coffers increase more than proportionally. This is because the average taxpayer is earning a higher income and is paying a higher proportion of it in taxes.
On the other hand, revenues tend to crash much harder during recessions in those states that rely on steeply graduated income taxes. Not only are taxpayers in the state earning a lower income, but many of them slip into lower brackets and hence pay a lower percentage as well.
Democratic governments are notoriously short-term in their planning. During the boom times, when state coffers are overflowing with revenues, the state legislatures ramp up spending programs. When the bottom falls out during the next slump, the legislatures are caught in a difficult position. It is no coincidence that California and New York — states with very progressive income-tax codes — also have recurring difficulties in balancing their budgets."
"Back when the federal income tax was instituted in 1913, Americans were also promised that it would forevermore remain a slight irritant to the super wealthy. Initially it imposed a mere 1 percent tax on those making under $20,000, and a top rate of 7 percent on those making more than $500,000 — a fantastic sum in those days.
Yet in 1917, a mere four years later, the bottom rate had doubled from 1 percent to 2 percent. Someone in the $500,000 bracket now faced a tax rate of 54 percent. And the highest bracket, applicable to incomes exceeding $2 million, faced a tax rate of 67 percent. (The history of federal income-tax rates is available here.) Needless to say, Americans would not have agreed to a federal income tax in 1913 had they realized what the politicians would do with it."
On the other hand, revenues tend to crash much harder during recessions in those states that rely on steeply graduated income taxes. Not only are taxpayers in the state earning a lower income, but many of them slip into lower brackets and hence pay a lower percentage as well.
Democratic governments are notoriously short-term in their planning. During the boom times, when state coffers are overflowing with revenues, the state legislatures ramp up spending programs. When the bottom falls out during the next slump, the legislatures are caught in a difficult position. It is no coincidence that California and New York — states with very progressive income-tax codes — also have recurring difficulties in balancing their budgets."
"Back when the federal income tax was instituted in 1913, Americans were also promised that it would forevermore remain a slight irritant to the super wealthy. Initially it imposed a mere 1 percent tax on those making under $20,000, and a top rate of 7 percent on those making more than $500,000 — a fantastic sum in those days.
Yet in 1917, a mere four years later, the bottom rate had doubled from 1 percent to 2 percent. Someone in the $500,000 bracket now faced a tax rate of 54 percent. And the highest bracket, applicable to incomes exceeding $2 million, faced a tax rate of 67 percent. (The history of federal income-tax rates is available here.) Needless to say, Americans would not have agreed to a federal income tax in 1913 had they realized what the politicians would do with it."
Put Department of Education in Timeout | Richard W. Rahn | Cato Institute: Commentary
Put Department of Education in Timeout | Richard W. Rahn | Cato Institute: Commentary: "Suppose Congress said to the department, 'We are going to cut your budget and payroll by 20 percent per year until test scores start improving, and if they have not substantially improved within five years, the department will be dust.' What do you think would happen to test scores?"
"Most of the increase in spending has gone to education bureaucrats — including more and more layers of 'administrators' (assistant principals, deputy assistant principals, and on and on) — and much of it is needless overhead. So, as those in Congress cut back the department's funding, they must be smart about it — both for the sake of the students and for their own political protection. They need to insist that the funds be reduced for the middlemen and not the classroom teachers."
"Most of the increase in spending has gone to education bureaucrats — including more and more layers of 'administrators' (assistant principals, deputy assistant principals, and on and on) — and much of it is needless overhead. So, as those in Congress cut back the department's funding, they must be smart about it — both for the sake of the students and for their own political protection. They need to insist that the funds be reduced for the middlemen and not the classroom teachers."
Some gov't officials to skip airport security - FoxNews.com
Some gov't officials to skip airport security - FoxNews.com: "'Government officials traveling with approved federal law enforcement security details are not required to undergo security screening,' TSA spokesman Nicholas Kimball said, speaking about checkpoint security at airports. 'TSA follows a specialized screening protocol for federal law enforcement officers and those under their control, which includes identity verification.'
The TSA would not explain why it makes these exceptions. But many of the exempted government officials have gone through several levels of security clearances, including FBI background checks, and travel with armed law enforcement, eliminating the need for an additional layer of security at airports."
"Gainer added that members 'with sworn protection' are able to avoid security because 'their secure posture is affirmed by the law enforcement process established by TSA.'"
The TSA would not explain why it makes these exceptions. But many of the exempted government officials have gone through several levels of security clearances, including FBI background checks, and travel with armed law enforcement, eliminating the need for an additional layer of security at airports."
"Gainer added that members 'with sworn protection' are able to avoid security because 'their secure posture is affirmed by the law enforcement process established by TSA.'"
Gore: U.S. corn ethanol 'was not a good policy' | Green Tech - CNET News
Gore: U.S. corn ethanol 'was not a good policy' | Green Tech - CNET News: "'First-generation ethanol, I think, was a mistake. The energy conversion ratios are at best very small,' he said 'It's hard once such a program is put in place to deal with the lobbies that keep it going.'
He explained his own support for the original program on his presidential ambitions.
'One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president.'"
He explained his own support for the original program on his presidential ambitions.
'One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president.'"
Gore: U.S. corn ethanol 'was not a good policy' | Green Tech - CNET News
Gore: U.S. corn ethanol 'was not a good policy' | Green Tech - CNET News: "'First-generation ethanol, I think, was a mistake. The energy conversion ratios are at best very small,' he said 'It's hard once such a program is put in place to deal with the lobbies that keep it going.'
He explained his own support for the original program on his presidential ambitions.
'One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president.'"
He explained his own support for the original program on his presidential ambitions.
'One of the reasons I made that mistake is that I paid particular attention to the farmers in my home state of Tennessee, and I had a certain fondness for the farmers in the state of Iowa because I was about to run for president.'"
Monday, November 22, 2010
How an Economy Grows - George F. Smith - Mises Daily
How an Economy Grows - George F. Smith - Mises Daily: "the economy didn't grow because they consumed more. They consumed more because the economy grew"
"As productivity increased, prices fell, benefiting the producer as well as his customers. Falling prices induce people to save, which swells the amount of capital available for loans. The Keynesian fear of falling prices was yet unknown."
"As productivity increased, prices fell, benefiting the producer as well as his customers. Falling prices induce people to save, which swells the amount of capital available for loans. The Keynesian fear of falling prices was yet unknown."
Economists want to stop teachers' degree bonuses - FoxNews.com
Economists want to stop teachers' degree bonuses - FoxNews.com: "Every year, American schools pay more than $8.6 billion in bonuses to teachers with master's degrees, even though the idea that a higher degree makes a teacher more effective has been mostly debunked.
Despite more than a decade of research showing the money has little impact on student achievement, state lawmakers and other officials have been reluctant to tackle this popular way for teachers to earn more money."
Despite more than a decade of research showing the money has little impact on student achievement, state lawmakers and other officials have been reluctant to tackle this popular way for teachers to earn more money."
Cybersecurity bill gives DHS power to punish tech firms | Politics and Law - CNET News
Cybersecurity bill gives DHS power to punish tech firms | Politics and Law - CNET News: "Section 224 of HSCPIPA hands DHS explicit legal 'authorities for securing private sector' computers. A cybersecurity chief to be appointed by Napolitano would be given the power to 'establish and enforce' cybersecurity requirements."
Will computers with anti-government info be considered "unsecure"?
"Those requirements include presenting 'cybersecurity plans' to the agency, which has the power to 'approve or disapprove' each of them."
Will those plans need to include sensitive info that DHS might accidentally leak and increase security risks?
Will computers with anti-government info be considered "unsecure"?
"Those requirements include presenting 'cybersecurity plans' to the agency, which has the power to 'approve or disapprove' each of them."
Will those plans need to include sensitive info that DHS might accidentally leak and increase security risks?
Friday, November 19, 2010
Bernanke hits back at critics of bond-buying plan - FoxNews.com
Bernanke hits back at critics of bond-buying plan - FoxNews.com: "Without more stimulus, high unemployment could persist for years, he said."
We've heard that before and the forecast wasn't accurate.
We've heard that before and the forecast wasn't accurate.
Mom Panicked After Social Worker Picked Up Wrong Kids From Alaska School - FoxNews.com
Mom Panicked After Social Worker Picked Up Wrong Kids From Alaska School - FoxNews.com: "Kimberly Booth told The Anchorage Daily News that when she went to pick up her daughters Wednesday at Muldoon Elementary the staff told her a children's service worker had taken them. But when she called the Office of Children's Services she was told it didn't have the kids and didn't know what the school was talking about.
It turns out a social worker did pick up the girls, ages 6 and 8, because of a name mix up. The children were away from school about 45 minutes before the worker realized the mistake, brought them back to school and apologized."
It turns out a social worker did pick up the girls, ages 6 and 8, because of a name mix up. The children were away from school about 45 minutes before the worker realized the mistake, brought them back to school and apologized."
Tuesday, November 16, 2010
Driver In Fatal Conn. Crash Sues Victim's Parents for Letting Son Bike Without Helmet - FoxNews.com
Driver In Fatal Conn. Crash Sues Victim's Parents for Letting Son Bike Without Helmet - FoxNews.com: "Matthew Kenney's parents, Stephen and Joanne, sued 48-year-old driver David Weaving shortly after he was sentenced last year to 10 years in prison, accusing him in Waterbury Superior Court of negligence and seeking more than $15,000 in damages.
Weaving, who has a history of drunken driving convictions, responded months later with a handwritten countersuit accusing the Kenneys of 'contributory negligence.' He's also seeking more than $15,000 in damages, saying he's endured 'great mental and emotional pain and suffering,' wrongful conviction and imprisonment, and the loss of his 'capacity to carry on in life's activities.'
'It drags the pain on,' said Joanne Kenney, a stay-at-home mom with two other children, ages 2 and 13. 'It's a constant reminder. Enough is enough. Can you just leave us alone and serve your time?'"
Weaving, who has a history of drunken driving convictions, responded months later with a handwritten countersuit accusing the Kenneys of 'contributory negligence.' He's also seeking more than $15,000 in damages, saying he's endured 'great mental and emotional pain and suffering,' wrongful conviction and imprisonment, and the loss of his 'capacity to carry on in life's activities.'
'It drags the pain on,' said Joanne Kenney, a stay-at-home mom with two other children, ages 2 and 13. 'It's a constant reminder. Enough is enough. Can you just leave us alone and serve your time?'"
Friday, November 12, 2010
Johnson adhering to watchdog pledge | thenorthwestern.com | Oshkosh Northwestern
Johnson adhering to watchdog pledge | thenorthwestern.com | Oshkosh Northwestern: "Johnson is co-sponsoring a proposal DeMint intends to put on the table next week that would bar Senate Republicans from seeking earmarks for two years. The proposal puts old-guard Republicans and McConnell on the spot.
House Republicans already have an earmark ban and are expected to extend it when they caucus next week."
House Republicans already have an earmark ban and are expected to extend it when they caucus next week."
Thursday, November 11, 2010
Banks Are Lending More (to the Government) | Alan Reynolds | Cato Institute: Commentary
Banks Are Lending More (to the Government) | Alan Reynolds | Cato Institute: Commentary: "Talk of 'quantitative' easing makes it sound as if there will be a larger quantity of credit available to somebody somewhere. But the Fed is offering more credit only to Fannie Mae, Freddie Mac, and the U.S. Treasury."
"The next time you hear politicians or government officials complaining that banks are not lending enough to consumers or small businesses, just remind them that banks are much too busy lending tens of billions — to the U.S. government."
"The next time you hear politicians or government officials complaining that banks are not lending enough to consumers or small businesses, just remind them that banks are much too busy lending tens of billions — to the U.S. government."
Private Social Security Accounts: Still a Good Idea | William Shipman and Peter Ferrara | Cato Institute: Commentary
Private Social Security Accounts: Still a Good Idea | William Shipman and Peter Ferrara | Cato Institute: Commentary: "They were unfortunate to retire just one year after the worst 10-year stock market performance since 1926. Yet their account, having earned a 6.75% return annually from 1965 to 2009, would still pay them about 75% more than Social Security would have."
"It is a mathematical fact that the least expensive way to provide for an almost certain future liability is to save and invest in capital markets prior to the onset of the liability. That's why state and local pension funds, corporate pension plans, federal employee retirement plans and Chile's successful Social Security personal accounts (since copied by other countries) do so. It is sound practice.
And it's why Mr. Obama is wrong to assert that personal Social Security accounts are 'ill-conceived,' and why each of us should have the liberty to opt into one."
"It is a mathematical fact that the least expensive way to provide for an almost certain future liability is to save and invest in capital markets prior to the onset of the liability. That's why state and local pension funds, corporate pension plans, federal employee retirement plans and Chile's successful Social Security personal accounts (since copied by other countries) do so. It is sound practice.
And it's why Mr. Obama is wrong to assert that personal Social Security accounts are 'ill-conceived,' and why each of us should have the liberty to opt into one."
Blockading with Trade Restrictions | Jim Powell | Cato Institute: Commentary
Blockading with Trade Restrictions | Jim Powell | Cato Institute: Commentary: "He realized that if tariffs were really good, then civilization would have begun where people were cut off from the outside world by mountains, oceans, deserts and other natural barriers. But, he explained, 'it is where trade could best be carried on that we find wealth first accumulating and civilization beginning. It is on accessible harbors, navigable rivers and highways that we find cities arising and the arts and sciences developing.'
George wrote Protection or Free Trade because he hated monopolies. They could be maintained only if there were government-enforced restrictions that prevented people from dealing with alternative suppliers. He concluded that the most effective antitrust policy was free trade — consumers and businesses able to shop the world for the best values.
He explained why trade restrictions mainly harm nations that impose them: 'Every tariff that raises prices for the encouragement of one industry must operate to discourage all other industries into which the products of that industry enter. A tariff that raises the price of lumber necessarily discourages the industries which make use of lumber, from those connected with the building of houses and ships to those engaged in the making of matches and wooden toothpicks; a tariff that raises the price of salt discourages the dairyman and the fisherman; a tariff that raises the price of sugar discourages the fruit-preserver, the maker of syrups, and so on.'
George observed that nations try to prevent adversaries from trading, and a blockade is considered an act of war."
"George's most famous lines: 'Protective tariffs are as much applications of force as are blockading squadrons, and their object is the same — to prevent trade. The difference between the two is that blockading squadrons are a means whereby nations attempt to prevent their enemies from trading. Protective tariffs are a means whereby nations attempt to prevent their own people from trading. What protection teaches us is to do to ourselves in time of peace what enemies seek to do to us in time of war.'"
George wrote Protection or Free Trade because he hated monopolies. They could be maintained only if there were government-enforced restrictions that prevented people from dealing with alternative suppliers. He concluded that the most effective antitrust policy was free trade — consumers and businesses able to shop the world for the best values.
He explained why trade restrictions mainly harm nations that impose them: 'Every tariff that raises prices for the encouragement of one industry must operate to discourage all other industries into which the products of that industry enter. A tariff that raises the price of lumber necessarily discourages the industries which make use of lumber, from those connected with the building of houses and ships to those engaged in the making of matches and wooden toothpicks; a tariff that raises the price of salt discourages the dairyman and the fisherman; a tariff that raises the price of sugar discourages the fruit-preserver, the maker of syrups, and so on.'
George observed that nations try to prevent adversaries from trading, and a blockade is considered an act of war."
"George's most famous lines: 'Protective tariffs are as much applications of force as are blockading squadrons, and their object is the same — to prevent trade. The difference between the two is that blockading squadrons are a means whereby nations attempt to prevent their enemies from trading. Protective tariffs are a means whereby nations attempt to prevent their own people from trading. What protection teaches us is to do to ourselves in time of peace what enemies seek to do to us in time of war.'"
Wednesday, November 10, 2010
After November 2 | Michael D. Tanner | Cato Institute: Commentary
After November 2 | Michael D. Tanner | Cato Institute: Commentary: "Therefore, if this election is going to be the start of a long-term trend and not a one-time blip, the new Republican-dominated Congress is going to have to deliver. In particular, Republicans are going to have to follow through on their promises to reduce government spending and the deficit."
Highlights of deficit reduction proposals - FoxNews.com
Highlights of deficit reduction proposals - FoxNews.com: "Highlights of proposals by leaders of President Barack Obama's bipartisan deficit commission:"
"— Increase the Social Security retirement age by one month every two years after it reaches 67 under current law. It would reach 68 around 2050 and 69 around 2075."
"— Overhaul individual income taxes and corporate taxes. For individuals and families, eliminate a host of popular tax credits and deductions, including the child tax credit and the mortgage interest deduction. Significantly reduce income tax rates, with the top rate dropping to 23 percent from 35 percent.
— Reduce the corporate income tax rate to 26 percent from 35 percent, and stop taxing the overseas profits of U.S.-based multinational corporations."
"— Reduce congressional and White House budgets by 15 percent, freeze federal compensation at non-defense agencies for three years, cut the federal work force by 10 percent, eliminate 250,000 non-defense contractors and end money for commercial space flight.
— Eliminate noncompetitive spending bills known as 'earmarks.'
— End grants to large and medium-sized hub airports; require airports to fund a larger portion of the cost of aviation security.
— Cut funding for the public broadcasting."
Those sounds like good ideas.
"— Increase the Social Security retirement age by one month every two years after it reaches 67 under current law. It would reach 68 around 2050 and 69 around 2075."
"— Overhaul individual income taxes and corporate taxes. For individuals and families, eliminate a host of popular tax credits and deductions, including the child tax credit and the mortgage interest deduction. Significantly reduce income tax rates, with the top rate dropping to 23 percent from 35 percent.
— Reduce the corporate income tax rate to 26 percent from 35 percent, and stop taxing the overseas profits of U.S.-based multinational corporations."
"— Reduce congressional and White House budgets by 15 percent, freeze federal compensation at non-defense agencies for three years, cut the federal work force by 10 percent, eliminate 250,000 non-defense contractors and end money for commercial space flight.
— Eliminate noncompetitive spending bills known as 'earmarks.'
— End grants to large and medium-sized hub airports; require airports to fund a larger portion of the cost of aviation security.
— Cut funding for the public broadcasting."
Those sounds like good ideas.
Shipping Out Jobs | Daniel Griswold | Cato Institute: Commentary
Shipping Out Jobs | Daniel Griswold | Cato Institute: Commentary: "In 2008, US companies sold more than $6 trillion worth of goods and services through overseas affiliates — three times what US companies exported from America. And, no, those affiliates aren't mainly 'export platforms,' set up to ship goods back to the United States: Almost 90 percent of what they produce abroad is sold abroad.
It's not about access to 'cheap labor,' either: More than three-quarters of outward US manufacturing investment goes to other rich, developed economies like Canada and the European Union. That's where they find the wealthy customers, skilled workers, open markets, efficient infrastructure and political stability to operate profitably.
Indeed, US manufacturing companies invest a modest $2 billion a year in China, compared to $30 billion a year in Europe.
Nor do jobs created by those investments come at the expense of American workers. In fact, the more workers US multinationals hire abroad, the more they tend to hire at their parent operations in America."
It's not about access to 'cheap labor,' either: More than three-quarters of outward US manufacturing investment goes to other rich, developed economies like Canada and the European Union. That's where they find the wealthy customers, skilled workers, open markets, efficient infrastructure and political stability to operate profitably.
Indeed, US manufacturing companies invest a modest $2 billion a year in China, compared to $30 billion a year in Europe.
Nor do jobs created by those investments come at the expense of American workers. In fact, the more workers US multinationals hire abroad, the more they tend to hire at their parent operations in America."
Obama's Imaginary Tax Cuts | Richard W. Rahn | Cato Institute: Commentary
Obama's Imaginary Tax Cuts | Richard W. Rahn | Cato Institute: Commentary: "The tax increase of $725.7 billion dwarfs the tax cuts of $373 billion, leaving a net tax increase of $352 billion. But it gets worse. Just $107.6 billion of the tax cuts are permanent — the rest are temporary — but all of the $725.7 billion increases are permanent."
"The vast majority of these tax increases fall on middle- and lower-income people."
"'If Democrats are being truthful, why did they not enact the tax cuts before adjourning to campaign for re-election, when such an act would have been to their political advantage?' The answer is that they did not have a majority of Democrats who could agree on any specific tax-cut measure.
Remember, the lame-duck Congress will contain the same members who have been serving, even though, perhaps, 50 or 60 of them will have lost the election. What incentive do they have at that point to agree suddenly to tax cuts they previously opposed? Yes, the people might have spoken in favor of the cuts through the electoral process, but many of these defeated members will be more interested in returning home well before Christmas rather than spending time in Washington, debating tax-cut legislation. They also would be beholden to the president for appointments to new jobs."
"The vast majority of these tax increases fall on middle- and lower-income people."
"'If Democrats are being truthful, why did they not enact the tax cuts before adjourning to campaign for re-election, when such an act would have been to their political advantage?' The answer is that they did not have a majority of Democrats who could agree on any specific tax-cut measure.
Remember, the lame-duck Congress will contain the same members who have been serving, even though, perhaps, 50 or 60 of them will have lost the election. What incentive do they have at that point to agree suddenly to tax cuts they previously opposed? Yes, the people might have spoken in favor of the cuts through the electoral process, but many of these defeated members will be more interested in returning home well before Christmas rather than spending time in Washington, debating tax-cut legislation. They also would be beholden to the president for appointments to new jobs."
Monday, November 08, 2010
Mindless Partisanship Gets in the Way of Fighting Big Government | Gene Healy | Cato Institute: Commentary
Mindless Partisanship Gets in the Way of Fighting Big Government | Gene Healy | Cato Institute: Commentary: "In a 1988 survey, over half of self-identified 'strong Democrats' believed inflation had increased under President Reagan, when it had actually come down nearly 10 points. Half of the Republicans in a 1996 poll believed Bill Clinton had increased the deficit, though it dropped steadily during his tenure. Political scientist Adam J. Berinsky puts it starkly: 'In the battle between facts and partisanship, partisanship always wins.'
In 2004, psychologist Drew Westen took a look at the partisan mind through an MRI scanner. He presented 15 'strong Democrats' and 15 'strong Republicans' with negative statements about their favored candidates and watched which parts of their brains lit up.
'None of the circuits involved in conscious reasoning were particularly engaged,' Dr. Westen reported — it appeared 'as if partisans twirl the cognitive kaleidoscope until they get the conclusions they want.'"
In 2004, psychologist Drew Westen took a look at the partisan mind through an MRI scanner. He presented 15 'strong Democrats' and 15 'strong Republicans' with negative statements about their favored candidates and watched which parts of their brains lit up.
'None of the circuits involved in conscious reasoning were particularly engaged,' Dr. Westen reported — it appeared 'as if partisans twirl the cognitive kaleidoscope until they get the conclusions they want.'"
The Tempting Path of Protectionism | Jim Powell | Cato Institute: Commentary
The Tempting Path of Protectionism | Jim Powell | Cato Institute: Commentary: "By inflaming nationalist sentiment against the United States, Smoot-Hawley encouraged many governments to retaliate by enacting exchange controls that further throttled trade. By 1935, there were exchange controls in Afghanistan, Argentina, Austria, Bolivia, Brazil, Chile, China, Colombia, Costa Rica, Cuba, Czechoslovakia, Danzig, Ecuador, El Salvador, Finland, Germany, Greece, Hong Kong, Hungary, Iceland, Japan, Latvia, Lithuania, Luxembourg, Mexico, Netherlands, New Zealand, Nicaragua, Paraguay, Poland, Romania, Uruguay, Venezuela and Yugoslavia.
American farmers, who had lobbied hard for Smoot-Hawley, were among the biggest losers from all this. They saw their exports plunge from $1.8 billion in 1929 before Smoot Hawley to $590 million just four years later."
American farmers, who had lobbied hard for Smoot-Hawley, were among the biggest losers from all this. They saw their exports plunge from $1.8 billion in 1929 before Smoot Hawley to $590 million just four years later."
Rethinking Intellectual Property: History, Theory, and Economics - Stephan Kinsella - Mises Daily
Rethinking Intellectual Property: History, Theory, and Economics - Stephan Kinsella - Mises Daily: "Patent law finds its origins in mercantilist monopoly grants, and even legalized plunder — letters patent were used to legalize piracy in the 16th century — making it ironic for IP to be used against modern-day 'pirates' who are not real pirates at all."
A Better Way Than the VA? | Michael D. Tanner | Cato Institute: Commentary
A Better Way Than the VA? | Michael D. Tanner | Cato Institute: Commentary: "Democrats seem more concerned about preserving 'the system' than about results. The idea of giving people a private choice rather than keeping them confined to a government system is regarded as 'radical' and 'extreme.' You see it on issues ranging from education to Social Security. Apparently, the VA system has now become another such sacred cow."
The Fallacy of "Child-Labor-Free" - Rod Rojas - Mises Daily
The Fallacy of "Child-Labor-Free" - Rod Rojas - Mises Daily: "economic development is the precursor of all things good and humane. This sometimes even includes tangible expressions of parental love — a parent who puts a child behind a loom for ten hours a day does so, not out of callous greed, but because this is what brings food to the table.
Any ban or boycott on oriental rugs, or any other product of child labor, is utterly counterproductive and potentially life-threatening to the very people we are trying to protect. Only economic development can improve the lives of these children, and nothing short of unrestricted free trade will do."
Any ban or boycott on oriental rugs, or any other product of child labor, is utterly counterproductive and potentially life-threatening to the very people we are trying to protect. Only economic development can improve the lives of these children, and nothing short of unrestricted free trade will do."
The Real Reason for FDR's Popularity - Mark Thornton - Mises Daily
The Real Reason for FDR's Popularity - Mark Thornton - Mises Daily: "December 5, 1933, was the day of final liberation [from Prohibition], following nine months of frenzy and excitement. FDR successfully claimed credit for this, achieving a reputation as a great liberator. His popularity reached astounding heights. The glow never left."
Things Are Better Than You Imagine | Jason Kuznicki | Cato Institute: Commentary
Things Are Better Than You Imagine | Jason Kuznicki | Cato Institute: Commentary: "When asked what how much an average U.S. corporation's profits were as a percentage of sales, the students gave wild overestimates — the median student guessed corporate profits were 30% of sales; the upper quartile said more than 60%. The reality? More like 4%.
Goffe's students also thought inflation for the previous year (2008) had been about 11%. The Consumer Price Index, our best measure of inflation, rose by a mere .09% during that time, a small enough change that we could plausibly dismiss it as a measuring error.
Ordinary Americans make more money, too – the median student said that 35% of all workers earned the minimum wage. The real number is more like 1.7%.
And things are improving more than they imagine. When asked how much inflation-adjusted income had risen since 1950, the median student said 25%. Really, it's more like 248%.
Finally, our economy is freer than most of them imagine – when asked, the median student believed that the government sets 40% of market prices. Numbers for this one are harder to come by, but I asked some economist friends of mine, and it's certainly nowhere near that high. Governments do set prices on state-school tuitions, on Medicaid and Medicare-financed health spending, on cigarettes, and on a few others — but in all, prices are pretty free nowadays. Formerly, the federal and local governments had regulated airfare, trucking prices, and the prices of major consumer products like gasoline and apartment rents (there are still a few rent-controlled apartments, but good luck finding them!)."
Goffe's students also thought inflation for the previous year (2008) had been about 11%. The Consumer Price Index, our best measure of inflation, rose by a mere .09% during that time, a small enough change that we could plausibly dismiss it as a measuring error.
Ordinary Americans make more money, too – the median student said that 35% of all workers earned the minimum wage. The real number is more like 1.7%.
And things are improving more than they imagine. When asked how much inflation-adjusted income had risen since 1950, the median student said 25%. Really, it's more like 248%.
Finally, our economy is freer than most of them imagine – when asked, the median student believed that the government sets 40% of market prices. Numbers for this one are harder to come by, but I asked some economist friends of mine, and it's certainly nowhere near that high. Governments do set prices on state-school tuitions, on Medicaid and Medicare-financed health spending, on cigarettes, and on a few others — but in all, prices are pretty free nowadays. Formerly, the federal and local governments had regulated airfare, trucking prices, and the prices of major consumer products like gasoline and apartment rents (there are still a few rent-controlled apartments, but good luck finding them!)."
Hiding the Cost of Government Leads to Bigger Government | Christopher J. Conover | Cato Institute: Commentary
Hiding the Cost of Government Leads to Bigger Government | Christopher J. Conover | Cato Institute: Commentary: "When the federal government takes an additional dollar from taxpayers, the actual cost to society is generally $1.44. That extra 44 cents represents the deadweight loss of taxation. Every time Congress shifts another dollar from Peter to Paul, it leaves society 44 cents poorer.
The deadweight loss of taxation can be much higher, though. For example, if Congress allows income-tax rates to rise in January, as current law provides, it will cost society $1.50 for every dollar of new tax revenue. Feldstein estimates that each dollar of new income-tax revenue could cost society $2.65!"
"University of Chicago economist Harald Uhlig estimates that federal borrowing carries a much higher deadweight loss, such that every $1 of deficit spending ultimately costs society $4.40."
"The Office of Management and Budget already directs federal agencies to include the deadweight costs of federal taxes when doing cost-benefit analyses of federal spending. Congress should do the same."
The deadweight loss of taxation can be much higher, though. For example, if Congress allows income-tax rates to rise in January, as current law provides, it will cost society $1.50 for every dollar of new tax revenue. Feldstein estimates that each dollar of new income-tax revenue could cost society $2.65!"
"University of Chicago economist Harald Uhlig estimates that federal borrowing carries a much higher deadweight loss, such that every $1 of deficit spending ultimately costs society $4.40."
"The Office of Management and Budget already directs federal agencies to include the deadweight costs of federal taxes when doing cost-benefit analyses of federal spending. Congress should do the same."
Keeping the Poor in Poverty | Michael D. Tanner | Cato Institute: Commentary
Keeping the Poor in Poverty | Michael D. Tanner | Cato Institute: Commentary: "For example, few things are as important in helping people escape poverty as education."
"Yet Obama and the Democrats, in thrall to the teachers' unions, steadfastly resist proposals to give parents more control over their children's education. Washington, D.C., has a public-school system that, despite spending more per child than almost any other system in the nation, still has a dropout rate of more than 50 percent. Yet one of the first actions of the president and congressional Democrats was to kill the Opportunity Scholarship Program, which offered vouchers to permit poor children to opt out of the city's rotten public schools.
Across the country, efforts to increase parental choice are met with a wall of Democratic obstructionism. Choice, we are told, is a threat to the 'education system.' But which is really more important, the 'education system' or poor children?
And, of course, nothing is more important in fighting poverty than jobs. Yet the Obama administration is overtly hostile to the entrepreneurs and job creators in our economy. The wealthy are demonized rhetorically."
"We can't expect to create more jobs if we punish the type of activity that creates jobs. That means that if we wish to fight poverty, we must end those government policies — high taxes and regulatory excess — that inhibit growth and job creation. We must protect capital investment and give people the opportunity to start new businesses.
Along similar lines, one of the great advantages to reforming Social Security with personal accounts is that it would enable low-income Americans to save and accumulate wealth. But don't count on Democrats to lessen their opposition to the idea."
"Compassion is more than talking about the plight of the poor or giving them just enough money to make poverty a bit more comfortable. Real compassion is about creating the conditions that will enable the poor to get out of poverty."
"Yet Obama and the Democrats, in thrall to the teachers' unions, steadfastly resist proposals to give parents more control over their children's education. Washington, D.C., has a public-school system that, despite spending more per child than almost any other system in the nation, still has a dropout rate of more than 50 percent. Yet one of the first actions of the president and congressional Democrats was to kill the Opportunity Scholarship Program, which offered vouchers to permit poor children to opt out of the city's rotten public schools.
Across the country, efforts to increase parental choice are met with a wall of Democratic obstructionism. Choice, we are told, is a threat to the 'education system.' But which is really more important, the 'education system' or poor children?
And, of course, nothing is more important in fighting poverty than jobs. Yet the Obama administration is overtly hostile to the entrepreneurs and job creators in our economy. The wealthy are demonized rhetorically."
"We can't expect to create more jobs if we punish the type of activity that creates jobs. That means that if we wish to fight poverty, we must end those government policies — high taxes and regulatory excess — that inhibit growth and job creation. We must protect capital investment and give people the opportunity to start new businesses.
Along similar lines, one of the great advantages to reforming Social Security with personal accounts is that it would enable low-income Americans to save and accumulate wealth. But don't count on Democrats to lessen their opposition to the idea."
"Compassion is more than talking about the plight of the poor or giving them just enough money to make poverty a bit more comfortable. Real compassion is about creating the conditions that will enable the poor to get out of poverty."
For Orderly Dissolution of the Fed, before It Does Us Even More Harm | Jim Powell | Cato Institute: Commentary
For Orderly Dissolution of the Fed, before It Does Us Even More Harm | Jim Powell | Cato Institute: Commentary: "The Fed was established 97 years ago, and Fed officials were given considerable power over the economy as if they knew what they were doing, but they didn't. They're still winging it today.
The Fed failed its first big test in 1920 when the end of World War I was followed by the sharpest depression on record. Wholesale prices plunged more than 50%, the economy contracted by almost 24%, and unemployment doubled to 11%. This was the kind of crisis the Fed was supposed to prevent."
"in 2002, Ben Bernanke, then a Fed governor, acknowledged the Fed's role in these calamities: 'We did it. We're very sorry. We won't do it again.'"
"Intended to save our economy, the Fed has turned out to be perhaps the biggest single source of economic instability. It's the big pig at the trough, and it's unpredictable. It doesn't follow any rules consistently. When it moves, everyone else can be badly knocked around.
The very unpredictability of the Fed causes uncertainty that discourages investors and employers from making commitments for the future — an important reason why we're experiencing a sluggish, jobless recovery now.
Theoretically, the Fed might be able to work if there were perfect people, but there don't seem to be any of those around. After almost a century of the Fed's often violent roller-coaster rides, it's hard to see what might be accomplished with one more bit of tinkering such as with interest-rate targets.
It's time to begin planning for an orderly dissolution of the Fed before it does us any more harm."
The Fed failed its first big test in 1920 when the end of World War I was followed by the sharpest depression on record. Wholesale prices plunged more than 50%, the economy contracted by almost 24%, and unemployment doubled to 11%. This was the kind of crisis the Fed was supposed to prevent."
"in 2002, Ben Bernanke, then a Fed governor, acknowledged the Fed's role in these calamities: 'We did it. We're very sorry. We won't do it again.'"
"Intended to save our economy, the Fed has turned out to be perhaps the biggest single source of economic instability. It's the big pig at the trough, and it's unpredictable. It doesn't follow any rules consistently. When it moves, everyone else can be badly knocked around.
The very unpredictability of the Fed causes uncertainty that discourages investors and employers from making commitments for the future — an important reason why we're experiencing a sluggish, jobless recovery now.
Theoretically, the Fed might be able to work if there were perfect people, but there don't seem to be any of those around. After almost a century of the Fed's often violent roller-coaster rides, it's hard to see what might be accomplished with one more bit of tinkering such as with interest-rate targets.
It's time to begin planning for an orderly dissolution of the Fed before it does us any more harm."
No More Waiting for Superman | Neal McCluskey | Cato Institute: Commentary
No More Waiting for Superman | Neal McCluskey | Cato Institute: Commentary: "the ruin wreaked by socialized education is everywhere. Our best students do poorly compared to children in other developed nations — countries which, by the way, often embrace school choice. Worse, poor children are frequently locked into intellectual dungeons because their families are unable to afford a private school, or a house in a better district."
"Where we let freedom work, we have affordable abundance: from food, to iPods to automobiles. To get access to a decent school, in contrast, we force children to swarm around Bingo hoppers and pray that theirs will be among the few numbers called."
"Where we let freedom work, we have affordable abundance: from food, to iPods to automobiles. To get access to a decent school, in contrast, we force children to swarm around Bingo hoppers and pray that theirs will be among the few numbers called."
Tariffs Benefit Few, at Cost to All | Daniel J. Ikenson | Cato Institute: Commentary
Tariffs Benefit Few, at Cost to All | Daniel J. Ikenson | Cato Institute: Commentary: "A steel tariff of 20 per cent, for example, might enable domestic producers, through higher prices and greater market share, to increase profits by an aggregate $100 million a year. However, the typically larger costs associated with a steel tariff are borne by a mostly unwitting public, whose incentives to lobby against the tariffs are muted by the fact that those large costs are spread across millions of consumers. These costs include: higher prices for automobiles, appliances, housing, and transportation; lost export sales on account of foreigners having fewer exchange dollars or because of trade retaliation; and forgone opportunities to grow businesses that require affordable steel."
Homeowners say loan mods led them to foreclosure - FoxNews.com
Homeowners say loan mods led them to foreclosure - FoxNews.com: "the loan modification disputes are a legacy of the federal government's rush to stem the flow of foreclosures before it had adequate plans in place.
'These policymakers said, just go out and do this and don't let us worry about the details,' he said. 'These details are now what are coming to the fore in these modification cases.'
Laurie Maggiano, policy director at the Treasury Department's Homeownership Preservation Office, said banks were encouraged to offer trial modifications based on interviews with borrowers about their incomes and expenses while they sorted out the paperwork to qualify for permanently reduced payments."
"Casco said his monthly mortgage payments to Washington Mutual Inc. went up to $2,765 when he refinanced his home in 2006 to pay for a new a meat counter at his store in the industrial Los Angeles suburb of South Gate.
Chase was in the process of acquiring Washington Mutual in January 2009 when Casco said it sent a note telling him he qualified for a lower forbearance rate. The El Salvador native sent the tax returns and business documents the bank was requesting.
His payment was reduced to $1,250, where it remained for several months until Chase told him to apply for a trial loan modification.
Again, Casco said, he sent Chase the documentation they requested. His payment rose to $2,363 in June, then returned to the forbearance rate in October.
Casco said he continued paying what he was asked until August 2010, when Chase told his family that they were $50,000 behind on their payments and put them into foreclosure."
'These policymakers said, just go out and do this and don't let us worry about the details,' he said. 'These details are now what are coming to the fore in these modification cases.'
Laurie Maggiano, policy director at the Treasury Department's Homeownership Preservation Office, said banks were encouraged to offer trial modifications based on interviews with borrowers about their incomes and expenses while they sorted out the paperwork to qualify for permanently reduced payments."
"Casco said his monthly mortgage payments to Washington Mutual Inc. went up to $2,765 when he refinanced his home in 2006 to pay for a new a meat counter at his store in the industrial Los Angeles suburb of South Gate.
Chase was in the process of acquiring Washington Mutual in January 2009 when Casco said it sent a note telling him he qualified for a lower forbearance rate. The El Salvador native sent the tax returns and business documents the bank was requesting.
His payment was reduced to $1,250, where it remained for several months until Chase told him to apply for a trial loan modification.
Again, Casco said, he sent Chase the documentation they requested. His payment rose to $2,363 in June, then returned to the forbearance rate in October.
Casco said he continued paying what he was asked until August 2010, when Chase told his family that they were $50,000 behind on their payments and put them into foreclosure."
Saturday, November 06, 2010
The Impossibility of an Informed Electorate - D.W. MacKenzie - Mises Daily
The Impossibility of an Informed Electorate - D.W. MacKenzie - Mises Daily: "However, even those who follow politics very closely do not understand the implications of changes in public policy. The lesson here is that efforts to incrementally reform government policies and programs through the democratic process are futile. To the extent that we vote at all, rational people should vote to depoliticize the economy."
Kind slips past Kapanke to retain seat
Kind slips past Kapanke to retain seat: "Kapanke said it was easier to lose on a night when his party regained control of the U.S. House as well as both chambers of the state legislature.
“It was never about me,” he said. “The country’s in better hands. The state is in better hands.”"
"Outside interest groups targeted the largely agricultural district with an unprecedented level of spending — almost exclusively on the right — bankrolling attacks on Kind."
According to http://www.opensecrets.org/races/summary.php?cycle=2010&id=WI03 Kind received over $1,000,000 in PAC money (compared to $55,000 for Kapanke) -- that doesn't count "soft money" but it sounds like Kind got a lot of money from "Outside interest groups".
“It was never about me,” he said. “The country’s in better hands. The state is in better hands.”"
"Outside interest groups targeted the largely agricultural district with an unprecedented level of spending — almost exclusively on the right — bankrolling attacks on Kind."
According to http://www.opensecrets.org/races/summary.php?cycle=2010&id=WI03 Kind received over $1,000,000 in PAC money (compared to $55,000 for Kapanke) -- that doesn't count "soft money" but it sounds like Kind got a lot of money from "Outside interest groups".
Friday, November 05, 2010
The GOP Must Fight Earmarks | Michael D. Tanner | Cato Institute: Commentary
The GOP Must Fight Earmarks | Michael D. Tanner | Cato Institute: Commentary: "It is worth remembering that Ronald Reagan once vetoed a highway bill because it contained 152 earmarks, which he called 'a textbook example of special-interest politics at work.' Twenty years later, Republicans managed to put together a highway bill that contained 6,371."
"Many of the scandals that beset the last GOP Congress were the result of earmarks."
"earmarks are part and parcel of the deal-making and horse-trading that greases the skids for so much bad legislation in Washington. Vote against the leadership's pet legislation and your earmark gets cut off; vote for it and your district gets some delicious pork. And nothing helps an otherwise terrible bill gather votes better than stuffing it full of earmarked goodies for wavering lawmakers. Therefore, even a very small earmark can be used to leverage far more costly government spending."
"earmarks crowd out local private-capital investment and research-and-development spending, thereby slowing economic growth."
"If Republicans can't end earmarks, how can we expect them to make hard decisions when it comes to something like entitlements?"
"Many of the scandals that beset the last GOP Congress were the result of earmarks."
"earmarks are part and parcel of the deal-making and horse-trading that greases the skids for so much bad legislation in Washington. Vote against the leadership's pet legislation and your earmark gets cut off; vote for it and your district gets some delicious pork. And nothing helps an otherwise terrible bill gather votes better than stuffing it full of earmarked goodies for wavering lawmakers. Therefore, even a very small earmark can be used to leverage far more costly government spending."
"earmarks crowd out local private-capital investment and research-and-development spending, thereby slowing economic growth."
"If Republicans can't end earmarks, how can we expect them to make hard decisions when it comes to something like entitlements?"
Postal Bankruptcy | Doug Bandow | Cato Institute: Commentary
Postal Bankruptcy | Doug Bandow | Cato Institute: Commentary: "The USPS is in crisis. It is locked in a declining market. It can only survive with indirect taxpayer subsidies and a ban on private competition. Instead of forcing Americans to pay more for less service, Congress should open mail delivery to all comers.
The Constitution authorizes Congress "To establish Post Offices." But Congress is not required to institute government mail delivery, let alone a public mail monopoly. Today there is competition only in packages and urgent delivery. For regular mail, you must use the USPS, or else."
"the post office threatened to sue Boy Scouts who proposed delivering Christmas cards during the holidays. When the USPS learned of companies sending international mail abroad with traveling employees, it demanded payment for services not rendered."
"Years ago Australia, Germany, Finland, the Netherlands, New Zealand, and Sweden liberalized their postal regimes. The result, reported the OECD, was 'quality of service improvements, increases in profitability, increases in employment and real reductions in prices.' Since then the European Union has pushed continent-wide liberalization, especially by reducing the forms of mail "reserved" to government operations."
"the system remained bounded by regulations, cushioned by subsidies, and protected by its monopoly. In particular, USPS is exempt from taxes, regulations, and even parking tickets. Nevertheless, since 1971 the post office has lost money in 24 of 38 years."
"The average USPS salary is $83,500, which makes postal employees among the highest paid semi-skilled workers around."
The Constitution authorizes Congress "To establish Post Offices." But Congress is not required to institute government mail delivery, let alone a public mail monopoly. Today there is competition only in packages and urgent delivery. For regular mail, you must use the USPS, or else."
"the post office threatened to sue Boy Scouts who proposed delivering Christmas cards during the holidays. When the USPS learned of companies sending international mail abroad with traveling employees, it demanded payment for services not rendered."
"Years ago Australia, Germany, Finland, the Netherlands, New Zealand, and Sweden liberalized their postal regimes. The result, reported the OECD, was 'quality of service improvements, increases in profitability, increases in employment and real reductions in prices.' Since then the European Union has pushed continent-wide liberalization, especially by reducing the forms of mail "reserved" to government operations."
"the system remained bounded by regulations, cushioned by subsidies, and protected by its monopoly. In particular, USPS is exempt from taxes, regulations, and even parking tickets. Nevertheless, since 1971 the post office has lost money in 24 of 38 years."
"The average USPS salary is $83,500, which makes postal employees among the highest paid semi-skilled workers around."
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