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?"

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."