Posts
Plastic Surgery: A Free Society Is a Beautiful Society - Doug French - Mises Daily: "The typical doctor has to devote precious office square footage to files and staff working the phones continuously, dialing for reimbursements and preauthorizations from insurance companies or Medicare, because that's where the doctor receives payment. As a result, the typical doctor's office waiting room is cramped and dingy with tattered, months-old magazines lying about and a TV in the corner turned up too loud so the older patients can hear.
Cosmetic surgeons treat people like they are the ones paying the bills (because they are). The waiting rooms I've been in are clean, roomy, and serene, even though you don't spend as much time there waiting for overbooked physicians as in the paid-from-insurance doctors' offices."
Monday, February 28, 2011
The Political Economy of Government Employee Unions - Thomas J. DiLorenzo - Mises Daily
The Political Economy of Government Employee Unions - Thomas J. DiLorenzo - Mises Daily: "Government-employee unions have vastly more power than do private-sector unions because the entities they work for are typically monopolies.
When the employees of a grocery store, for example, go on strike and shut down the store, consumers can simply shop elsewhere, and the grocery-store management is perfectly free to hire replacement workers. In contrast, when a city teachers' or garbage-truck drivers' union goes on strike, there is no school and no garbage collection as long as the strike goes on. In addition, teachers' tenure (typically after two or three years in government schools) and civil-service regulations make it extremely costly if not virtually impossible to hire replacement workers.
Thus, when government bureaucrats go on strike they have the ability to completely shut down the entire 'industry' they 'work' in indefinitely. The taxpayers will complain bitterly about the absence of schools and garbage collection, forcing the mayor, governor, or city councillors to quickly cave in to the union's demands to avoid risking the loss of their own jobs due to voter dissatisfaction."
"For decades, researchers have noted that the more money that is spent per pupil in the government schools, the worse is the performance of the students. Similar outcomes are prevalent in all other areas of government 'service.' As Milton Friedman once wrote, government bureaucracies — especially unionized ones — are like economic black holes where increased 'inputs' lead to declining 'outputs.' The more that is spent on government schools, the less educated are the students. The more that is spent on welfare, the more poverty there is, and so on. This of course is the exact opposite of normal economic life in the private sector, where increased inputs lead to more products and services, not fewer."
When the employees of a grocery store, for example, go on strike and shut down the store, consumers can simply shop elsewhere, and the grocery-store management is perfectly free to hire replacement workers. In contrast, when a city teachers' or garbage-truck drivers' union goes on strike, there is no school and no garbage collection as long as the strike goes on. In addition, teachers' tenure (typically after two or three years in government schools) and civil-service regulations make it extremely costly if not virtually impossible to hire replacement workers.
Thus, when government bureaucrats go on strike they have the ability to completely shut down the entire 'industry' they 'work' in indefinitely. The taxpayers will complain bitterly about the absence of schools and garbage collection, forcing the mayor, governor, or city councillors to quickly cave in to the union's demands to avoid risking the loss of their own jobs due to voter dissatisfaction."
"For decades, researchers have noted that the more money that is spent per pupil in the government schools, the worse is the performance of the students. Similar outcomes are prevalent in all other areas of government 'service.' As Milton Friedman once wrote, government bureaucracies — especially unionized ones — are like economic black holes where increased 'inputs' lead to declining 'outputs.' The more that is spent on government schools, the less educated are the students. The more that is spent on welfare, the more poverty there is, and so on. This of course is the exact opposite of normal economic life in the private sector, where increased inputs lead to more products and services, not fewer."
Stay Unreasonable | Michael D. Tanner | Cato Institute: Commentary
Stay Unreasonable | Michael D. Tanner | Cato Institute: Commentary: "The spending cuts were a reduction from 2010 spending levels, the same levels that were contained in the 'continuing resolution' that Congress passed in December to fund the government through March 4. In 2010, the federal government spent $3.46 trillion. Assuming a 2010 baseline for this year's budget makes those 'draconian' budget cuts equal to just 1.7 percent of this year's federal spending.
Or look at it another way. The administration just announced that it expects this year's budget deficit to be $1.65 trillion. Thus, the House's budget cuts amounted to 3.6 percent of the deficit. Think about that: Republicans just cut less than 4 percent of the spending that we don't have the money to pay for. Heck, our budget deficit for last month was $48 billion, so apparently we've covered January. Whew!"
"This is like taking a cupcake away from the world's fattest man and having somebody scream that he's starving."
Or look at it another way. The administration just announced that it expects this year's budget deficit to be $1.65 trillion. Thus, the House's budget cuts amounted to 3.6 percent of the deficit. Think about that: Republicans just cut less than 4 percent of the spending that we don't have the money to pay for. Heck, our budget deficit for last month was $48 billion, so apparently we've covered January. Whew!"
"This is like taking a cupcake away from the world's fattest man and having somebody scream that he's starving."
Collective Bargaining is a Fiscal Issue: Part 2 | Scott Walker for Wisconsin Governor
Collective Bargaining is a Fiscal Issue: Part 2 | Scott Walker for Wisconsin Governor: "Because of collecting bargaining, unions have included provisions in employee contracts that have a direct fiscal impact such as not allowing management to schedule workers based on operational needs and requiring notice and approval by the union prior to scheduling changes. As county executive, Walker attempted to reduce work hours based on budget pressures and workload requirements by instituting a 35-hour work week to avoid layoffs, which the union opposed. Additionally, government cannot explore privatization of functions that could save taxpayers money."
Timeline of Union & Senate Democrats Budget Related Events | Scott Walker for Wisconsin Governor
Timeline of Union & Senate Democrats Budget Related Events | Scott Walker for Wisconsin Governor: "24 hours was enough time for them to increase taxes by $1 billion dollars two years ago. Now with more than 17 hours of public testimony and a 5 day vacation to Illinois, Senate Democrats say they need more time."
Foreign Aid, or Foreign Hindrance | Doug Bandow | Cato Institute: Commentary
Foreign Aid, or Foreign Hindrance | Doug Bandow | Cato Institute: Commentary: "But despite Secretary Clinton's extravagant claims, there is little evidence that foreign assistance advances U.S. interests. After all, if America writing checks — more than a trillion dollars worth since the end of World War II — made the world a better place, the globe should be at peace, the poor should be fed, and the Second Coming should be history.
Consider Egypt. Secretary Clinton argued that events in Egypt require Americans to subsidize the new military rulers. For what purpose? The U.S. provided some $30 billion to Egypt over the last three decades but the country remains poor and undemocratic. Indeed, underwriting the corrupt Mubarak dictatorship helped turn Egypt into popular volcano."
"The aid dynamic is similar to that of Pakistan's war against insurgents: as long as the United States is willing to pay Pakistan ever more to eradicate extremists, Pakistan will not decisively defeat them; the graft that counterterrorism aid brings outweighs the political cost of some continuing violence"
"Since the end of World War II the U.S. and other wealthy nations have spent trillions of dollars trying to raise poor nations out of poverty. These outlays have had no discernible impact on Third World economic growth."
"Detailed cross-national studies find neither correlation nor causation between aid and growth. Indeed, generous financial transfers to corrupt dictators often have impeded necessary reforms. Political elites in foreign countries disagree on many things, but all want to preserve their power and position. Observed Flores and Smith: 'Autocratic governments' disregard for public welfare is exacerbated by international relief assistance.'"
"U.S. 'Food for Peace' shipments, used to dump farmers' domestic surpluses, is notorious for ruining local farmers and thus undermining local production. This problem continues in Haiti. On returning from a private aid mission, Don Slesnick, the mayor of Coral Gables, Florida, complained: 'We were saddened to see rice bags travel no more than 20 yards from the gates of the distribution site before ending up in the back of a pickup truck presumably headed for the black market. To our further dismay, we returned home to read news stories that those very same donations were undercutting Haitian rice farmers who needed income to support their own families.'"
"Separately we'd arrived at the conclusion that the relief program was probably killing as many people as it was saving, and the net result was that Somali soldiers were supplementing their income by selling food, while the [insurgent force] — often indistinguishable from the army — was using the food as rations to fuel their attacks into Ethiopia."
"While it's hard to criticize humanitarian aid properly delivered, private money spent by private organizations is the best way to help those in need around the world. Any assistance from Washington should be focused on temporary disasters where the U.S. government has unique logistical advantages — such as using an otherwise unemployed aircraft carrier to assist tsunami victims.
As for development assistance, American officials should focus on accelerating economic growth in America and easing access of other nations to the international marketplace. That means reducing trade barriers.
For instance, the U.S. limits sugar imports from Caribbean. Pakistanis would benefit far more from lower textile tariffs than from additional subsidies to their ineffective government. One of the most important roadblocks to international trade liberalization is American and European agricultural subsidies."
Consider Egypt. Secretary Clinton argued that events in Egypt require Americans to subsidize the new military rulers. For what purpose? The U.S. provided some $30 billion to Egypt over the last three decades but the country remains poor and undemocratic. Indeed, underwriting the corrupt Mubarak dictatorship helped turn Egypt into popular volcano."
"The aid dynamic is similar to that of Pakistan's war against insurgents: as long as the United States is willing to pay Pakistan ever more to eradicate extremists, Pakistan will not decisively defeat them; the graft that counterterrorism aid brings outweighs the political cost of some continuing violence"
"Since the end of World War II the U.S. and other wealthy nations have spent trillions of dollars trying to raise poor nations out of poverty. These outlays have had no discernible impact on Third World economic growth."
"Detailed cross-national studies find neither correlation nor causation between aid and growth. Indeed, generous financial transfers to corrupt dictators often have impeded necessary reforms. Political elites in foreign countries disagree on many things, but all want to preserve their power and position. Observed Flores and Smith: 'Autocratic governments' disregard for public welfare is exacerbated by international relief assistance.'"
"U.S. 'Food for Peace' shipments, used to dump farmers' domestic surpluses, is notorious for ruining local farmers and thus undermining local production. This problem continues in Haiti. On returning from a private aid mission, Don Slesnick, the mayor of Coral Gables, Florida, complained: 'We were saddened to see rice bags travel no more than 20 yards from the gates of the distribution site before ending up in the back of a pickup truck presumably headed for the black market. To our further dismay, we returned home to read news stories that those very same donations were undercutting Haitian rice farmers who needed income to support their own families.'"
"Separately we'd arrived at the conclusion that the relief program was probably killing as many people as it was saving, and the net result was that Somali soldiers were supplementing their income by selling food, while the [insurgent force] — often indistinguishable from the army — was using the food as rations to fuel their attacks into Ethiopia."
"While it's hard to criticize humanitarian aid properly delivered, private money spent by private organizations is the best way to help those in need around the world. Any assistance from Washington should be focused on temporary disasters where the U.S. government has unique logistical advantages — such as using an otherwise unemployed aircraft carrier to assist tsunami victims.
As for development assistance, American officials should focus on accelerating economic growth in America and easing access of other nations to the international marketplace. That means reducing trade barriers.
For instance, the U.S. limits sugar imports from Caribbean. Pakistanis would benefit far more from lower textile tariffs than from additional subsidies to their ineffective government. One of the most important roadblocks to international trade liberalization is American and European agricultural subsidies."
The Myth of Corporate Cash Hoarding | Alan Reynolds | Cato Institute: Commentary
The Myth of Corporate Cash Hoarding | Alan Reynolds | Cato Institute: Commentary: "Point No. 2, about safety cushions, alerts us to the fact that $1.93 trillion of liquid assets would not begin to cover $3.67 trillion of short-term debts, let alone ongoing expenses such as payroll. To describe the liquid assets as 'hoarding' (regardless of debts) is witless. The recession in 2008-09 would have been far less painful if nonfinancial corporations in 2007 had been 'hoarding' more liquid assets (they had $1.53 trillion)."
Fannie, Freddie Lose Relevance | Arnold Kling | Cato Institute: Commentary
Fannie, Freddie Lose Relevance | Arnold Kling | Cato Institute: Commentary: "To achieve this gradual phase-out, the provision of government mortgage support will need to be rationed in some way. It can be rationed by price, with the agencies raising their fees until private firms are able to compete. It can be rationed by quantity, with limits imposed on the market share of the agencies. And it can be rationed by market segment, with the agencies prevented from purchasing certain types of mortgages.
The administration report includes suggestions for all three types of rationing."
The administration report includes suggestions for all three types of rationing."
A Tortured History Pursues George W. Bush | Nat Hentoff | Cato Institute: Commentary
A Tortured History Pursues George W. Bush | Nat Hentoff | Cato Institute: Commentary: "Switzerland, like the United States, is a signatory to the international Convention Against Torture and Other Cruel, Inhuman or Degrading Treatment or Punishment. And every nation signing this treaty is required to prosecute anyone, including government officials, who have been involved in 'complicity or participation in torture.'
Moreover, the Convention makes it unmistakably clear that 'no exceptional circumstances whatsoever, whether a state of war or a threat of war ... or any other public emergency, may be invoked as a justification of torture.'"
Moreover, the Convention makes it unmistakably clear that 'no exceptional circumstances whatsoever, whether a state of war or a threat of war ... or any other public emergency, may be invoked as a justification of torture.'"
Saturday, February 26, 2011
State and local budget cuts are slowing US economy - FoxNews.com
State and local budget cuts are slowing US economy - FoxNews.com: "Deep spending cuts by state and local governments pose a growing threat to an economy"
Government spending doesn't help the economy -- that has been shown many times.
Government spending doesn't help the economy -- that has been shown many times.
Psst. No shutdown during a 'government shutdown' - FoxNews.com
Psst. No shutdown during a 'government shutdown' - FoxNews.com: "That's the little-known truth about a government shutdown. The government doesn't shut down."
"But from a practical perspective, shutdowns usually aren't that big a deal. They happened every year when Jimmy Carter was president, averaging 11 days each. During President Reagan's two terms, there were six shutdowns, typically of just one or two days apiece"
"Lawmakers, however, typically provide back pay, even for employees who weren't required to work. A repeat of that could raise hackles with some in the tea party-backed House GOP freshman class."
"Many contract workers could be furloughed without pay and not receive lost wages retroactively, especially in an extended shutdown."
"But from a practical perspective, shutdowns usually aren't that big a deal. They happened every year when Jimmy Carter was president, averaging 11 days each. During President Reagan's two terms, there were six shutdowns, typically of just one or two days apiece"
"Lawmakers, however, typically provide back pay, even for employees who weren't required to work. A repeat of that could raise hackles with some in the tea party-backed House GOP freshman class."
"Many contract workers could be furloughed without pay and not receive lost wages retroactively, especially in an extended shutdown."
NR students support local teachers | New Richmond News | New Richmond, Wisconsin
NR students support local teachers | New Richmond News | New Richmond, Wisconsin: "The end of unions not only affects the teachers now, but also the quality of education in the future"
What do unions have to do with quality? I thought unions supported rules that reward based on years of service -- not quality. :-/
What do unions have to do with quality? I thought unions supported rules that reward based on years of service -- not quality. :-/
Discount for foreclosed homes widened in 2010 - FoxNews.com
Discount for foreclosed homes widened in 2010 - FoxNews.com: "Buyers who purchased a foreclosed home last year got, on average, a 28 percent discount to a non-foreclosure sale. That's up from a 27 percent average discount in 2009, RealtyTrac said."
"Generally, about 30 percent of banks' foreclosure inventory is on the market"
"Generally, about 30 percent of banks' foreclosure inventory is on the market"
To invite plug-in cars, cities work on permitting | Green Tech - CNET News
To invite plug-in cars, cities work on permitting | Green Tech - CNET News: "One of the concerns automakers and potential buyers have is long delays in getting these chargers installed since building codes don't always explicitly address them.
In an effort to avoid delays in installations, Oregon last year adjusted its building codes to clarify the situation for electricians. Home charging stations now fall under the same building codes as large appliances, such as electric water heaters."
That shows one problem with government regulation. They often only address common situations.
In an effort to avoid delays in installations, Oregon last year adjusted its building codes to clarify the situation for electricians. Home charging stations now fall under the same building codes as large appliances, such as electric water heaters."
That shows one problem with government regulation. They often only address common situations.
Tuesday, February 22, 2011
With Mubarak gone, Egyptians turn to courts for justice - CSMonitor.com
With Mubarak gone, Egyptians turn to courts for justice - CSMonitor.com: "According to a public prosecutor in the Ministry of Justice who spoke on condition of anonymity, so many corruption cases have been filed at the office of the attorney general recently that his team of specialist investigators expanded fourfold on Saturday."
Commodity Money in Colonial America - Murray N. Rothbard - Mises Daily
Commodity Money in Colonial America - Murray N. Rothbard - Mises Daily: "It is important to realize that gold and silver are international commodities, and that therefore, when not prohibited by government decree, foreign coins are perfectly capable of serving as standard moneys. There is no need to have a national government monopolize the coinage, and indeed foreign gold and silver coins constituted much of the coinage in the United States until Congress outlawed the use of foreign coins in 1857. Thus, if a free market is allowed to prevail in a country, foreign coins will circulate naturally. Silver and gold coins will tend to be valued in proportion to their respective weights, and the ratio between silver and gold will be set by the market in accordance with their relative supply and demand."
Government operations: slow and steady or pick up the pace? | Wide White
Government operations: slow and steady or pick up the pace? | Wide White: "Should the government and Congress operate more quickly and efficiently or should legislation and initiatives take months to push through?"
Monday, February 21, 2011
The Libyan People versus Muammar Gaddafi - Llewellyn H. Rockwell Jr. - Mises Daily
The Libyan People versus Muammar Gaddafi - Llewellyn H. Rockwell Jr. - Mises Daily: "God bless these protesters. They are losing their chains. They are changing the Arab world — and the whole globe — by destabilizing and overthrowing the dictators. They are not only doing it without US help. They are doing it despite US support for the dictators they oppose."
How Marshall Field Succeeded - Orison Swett Marden - Mises Daily
How Marshall Field Succeeded - Orison Swett Marden - Mises Daily: "'May I ask you, Mr. Field, what you consider to have been the turning point in your career — the point after which there was no more danger?'
'Saving the first $5,000 I ever had, when I might just as well have spent the moderate salary I made. Possession of that sum, once I had it, gave me the ability to meet opportunities. That I consider the turning point.'"
That $5,000 would be more like $100,000 now.
'Saving the first $5,000 I ever had, when I might just as well have spent the moderate salary I made. Possession of that sum, once I had it, gave me the ability to meet opportunities. That I consider the turning point.'"
That $5,000 would be more like $100,000 now.
Ac-cent-tchu-ate the Positive: The New Accounting at the Fed - Robert P. Murphy - Mises Daily
Ac-cent-tchu-ate the Positive: The New Accounting at the Fed - Robert P. Murphy - Mises Daily: "it would have been very awkward for the Fed to become insolvent. The financial community would have seen just how nihilistic fiat-money central banking really is.
But never fear, that awkward possibility has been eliminated. It is now mathematically impossible for the Fed to become insolvent, through the magic of 'negative liabilities.' There is nothing to hinder Bernanke's inflationary spree now, except public backlash against rising prices."
But never fear, that awkward possibility has been eliminated. It is now mathematically impossible for the Fed to become insolvent, through the magic of 'negative liabilities.' There is nothing to hinder Bernanke's inflationary spree now, except public backlash against rising prices."
Commerce Is a People's Revolution, Daily - Doug French - Mises Daily
Commerce Is a People's Revolution, Daily - Doug French - Mises Daily: "What Kessler recognizes is that, while Zuckerberg has made himself extraordinarily wealthy, at the same time the Facebook founder has made us all better off. The author would like each of us to create new products and services that raise everyone's standard of living — not by exploiting some governmental privilege, but by creating something from nothing."
"Once you figure out what's scalable, you 'waste what's abundant to make up for what's scarce.' Prices dictate this. Ultimately, Kessler's drinking buddy George Gilder tells him, 'The scarce resource is time, which always becomes scarce as other things become more abundant, and the human genius that can transcend the scarcity of time.'
Kessler advises that vertical business structures are doomed and that entrepreneurs should 'get horizontal.' Horizontal works better because 'it harnesses separate layers of innovation,' Kessler writes, 'something the vertical model makes almost impossible.' Kessler also grasps the point made by Austrians that actual market prices are needed to provide the proper profit signals. Internal, phony pricing only provides false indicators."
"If anyone wonders why employers still use college degrees as a screening device for hiring, Kessler gives us a sobering story about Duke Power being sued under Title VII (and losing) for using an aptitude test as a part of their job application process. 'Corporations have no legal way of testing just how smart you are, so they rely on colleges and universities to do their screening for them.' Colleges and universities can get away with using SAT scores to determine who gets in; businesses aren't allowed the same luxury."
"Once you figure out what's scalable, you 'waste what's abundant to make up for what's scarce.' Prices dictate this. Ultimately, Kessler's drinking buddy George Gilder tells him, 'The scarce resource is time, which always becomes scarce as other things become more abundant, and the human genius that can transcend the scarcity of time.'
Kessler advises that vertical business structures are doomed and that entrepreneurs should 'get horizontal.' Horizontal works better because 'it harnesses separate layers of innovation,' Kessler writes, 'something the vertical model makes almost impossible.' Kessler also grasps the point made by Austrians that actual market prices are needed to provide the proper profit signals. Internal, phony pricing only provides false indicators."
"If anyone wonders why employers still use college degrees as a screening device for hiring, Kessler gives us a sobering story about Duke Power being sued under Title VII (and losing) for using an aptitude test as a part of their job application process. 'Corporations have no legal way of testing just how smart you are, so they rely on colleges and universities to do their screening for them.' Colleges and universities can get away with using SAT scores to determine who gets in; businesses aren't allowed the same luxury."
Friday, February 18, 2011
Walmart Employees Fired for Helping to Capture Alleged Criminal - FoxNews.com
Walmart Employees Fired for Helping to Capture Alleged Criminal - FoxNews.com: "They then escorted the man to an office inside the store, where Longton allegedly grabbed one of the employees and shoved a gun in his back.
Store management fired the employees for the violating the company’s “Investigation and Detention of Shoplifters Policy,” which states that employees should retreat if an individual reveals a weapon."
Retreat isn't an option when there is a gun in your back. Plus that puts everyone else there at higher risk. Better to be fired from a job then fired at from a gun!
Store management fired the employees for the violating the company’s “Investigation and Detention of Shoplifters Policy,” which states that employees should retreat if an individual reveals a weapon."
Retreat isn't an option when there is a gun in your back. Plus that puts everyone else there at higher risk. Better to be fired from a job then fired at from a gun!
U.S. Government Shuts Down 84,000 Websites, ‘By Mistake’ | TorrentFreak
U.S. Government Shuts Down 84,000 Websites, ‘By Mistake’ | TorrentFreak: "In a press release that went out a few hours ago the authorities were clearly proud of themselves for taking down 10 domain names.
However, DHS conveniently failed to mention that 84,000 websites were wrongfully taken down in the process, shaming thousands of people in the process."
"The above failure again shows that the seizure process is a flawed one, as has been shown several times before in earlier copyright infringement sweeps. If the Government would only allow for due process to take place, this and other mistakes wouldn’t have been made."
However, DHS conveniently failed to mention that 84,000 websites were wrongfully taken down in the process, shaming thousands of people in the process."
"The above failure again shows that the seizure process is a flawed one, as has been shown several times before in earlier copyright infringement sweeps. If the Government would only allow for due process to take place, this and other mistakes wouldn’t have been made."
Conservatives versus Freedom - Llewellyn H. Rockwell Jr. - Mises Daily
Conservatives versus Freedom - Llewellyn H. Rockwell Jr. - Mises Daily: "It is true that freedom is not certain to bloom in the postprotest world. Sometimes freedom comes in stages. Sometimes a worse regime can replace a bad one. But it is always an occasion to celebrate when the tyrant is overthrown. It is always a blow for liberty — no matter that the brutal state in question is officially supported by the US government."
Conservatives versus Freedom - Llewellyn H. Rockwell Jr. - Mises Daily
Conservatives versus Freedom - Llewellyn H. Rockwell Jr. - Mises Daily: "It is true that freedom is not certain to bloom in the postprotest world. Sometimes freedom comes in stages. Sometimes a worse regime can replace a bad one. But it is always an occasion to celebrate when the tyrant is overthrown. It is always a blow for liberty — no matter that the brutal state in question is officially supported by the US government."
Madison Protest: Unions Are Angry -- but Wisconsin Should Go Even Further | Chris Edwards | Cato Institute: Commentary
Madison Protest: Unions Are Angry -- but Wisconsin Should Go Even Further | Chris Edwards | Cato Institute: Commentary: "Unionism seems to coincide with poor state government management. States with higher public sector union shares tend to have higher levels of government debt. And the states with higher union shares do more poorly on grading by the Pew Center regarding the quality of public sector management."
"Unions certainly have free speech rights to voice their opinions about public policy. But collective bargaining gives unions the exclusive right to speak for covered workers, many of whom may disagree with the views of the monopoly union. Thus, collective bargaining is inconsistent with the right to freedom of association.
In states such as Virginia, teachers and other government workers may form voluntary associations and lobby the government, which is fine. But collective bargaining — or monopoly unionism — gives a privileged position in our democracy to government insiders who focus on expanding the public sector to own their personal benefit."
"Unions certainly have free speech rights to voice their opinions about public policy. But collective bargaining gives unions the exclusive right to speak for covered workers, many of whom may disagree with the views of the monopoly union. Thus, collective bargaining is inconsistent with the right to freedom of association.
In states such as Virginia, teachers and other government workers may form voluntary associations and lobby the government, which is fine. But collective bargaining — or monopoly unionism — gives a privileged position in our democracy to government insiders who focus on expanding the public sector to own their personal benefit."
Empty Words from Both Sides on the Debt | Michael D. Tanner | Cato Institute: Commentary
Empty Words from Both Sides on the Debt | Michael D. Tanner | Cato Institute: Commentary: "Last month the Congressional Budget Office reported that Social Security had begun running permanent budget deficits. Medicare is facing future budget shortfalls larger than the entire budgets of most countries.
In response to this looming crisis, President Barack Obama's 2012 budget proposes to ... talk about it.
This gave Republicans an opportunity to seize control of the agenda and demonstrate that their new-found commitment to fiscal discipline was more than simple hostility to Planned Parenthood or the Corporation for Public Broadcasting.
Given this chance, Republicans chose to ... talk about it."
"America is drowning in a sea of red ink. Recent discussion has focused on our $1.65 trillion budget deficit and $14.3 trillion national debt."
"In fact, if the unfunded liabilities of entitlement programs were to be included in our national debt figures, our total future indebtedness could top $127.5 trillion."
In response to this looming crisis, President Barack Obama's 2012 budget proposes to ... talk about it.
This gave Republicans an opportunity to seize control of the agenda and demonstrate that their new-found commitment to fiscal discipline was more than simple hostility to Planned Parenthood or the Corporation for Public Broadcasting.
Given this chance, Republicans chose to ... talk about it."
"America is drowning in a sea of red ink. Recent discussion has focused on our $1.65 trillion budget deficit and $14.3 trillion national debt."
"In fact, if the unfunded liabilities of entitlement programs were to be included in our national debt figures, our total future indebtedness could top $127.5 trillion."
Money, Power, and Old Age - Jan Iwanik - Mises Daily
Money, Power, and Old Age - Jan Iwanik - Mises Daily: "Accumulation of capital, knowledge, and political connections takes decades. As a result, political power tends to rest in the hands of older people. The average age of the USSR's general secretaries was 62 years, for European monarchs it is 70, for voting Roman Catholic cardinals 73, and for US senators 62.
In the long run, changes in national retirement systems will probably reinforce democratic gerontocracies around the world. People of working age will continue being economic slaves of the pensioners. But living half of one's life as a slave and half as the master is not the same as being free."
In the long run, changes in national retirement systems will probably reinforce democratic gerontocracies around the world. People of working age will continue being economic slaves of the pensioners. But living half of one's life as a slave and half as the master is not the same as being free."
Highlights of $1.2 trillion GOP spending bill - FoxNews.com
Highlights of $1.2 trillion GOP spending bill - FoxNews.com: "Republicans controlling the House are advancing a $1.2 trillion omnibus spending bill to wrap up the unfinished 2011 spending bills they inherited from Democrats. The measure cuts $61 billion from the 2010 bills endorsed by President Barak Obama"
They are only cutting 5%?!?
They are only cutting 5%?!?
What to make of Wisconsin Governor Scott Walker's "budget repair bill" | Wide White
What to make of Wisconsin Governor Scott Walker's "budget repair bill" | Wide White: "By now I'm sure you've heard about the proposed 'budget repair bill' proposed by newly-elected Wisconsin Governor Scott Walker."
The linked article does an excellent job of describing the issue.
The linked article does an excellent job of describing the issue.
Thursday, February 17, 2011
'Zero Tolerance' Criminalizing Kids | Nat Hentoff | Cato Institute: Commentary
'Zero Tolerance' Criminalizing Kids | Nat Hentoff | Cato Institute: Commentary: "In a recent case, at Spotsylvania High School in Virginia, 14-year-old Andrew Mikel, an honor student, active in the ROTC as well as in his church, has been expelled for the rest of the school year for violent criminal conduct and possession of a weapon.
Following the lead of the school officials, the Spotsylvania County School Board referred the ninth-grader to local law enforcement, resulting in his now being involved in juvenile criminal proceedings for assault."
"in the school hallway during lunch period, kidding around, he was using the body of a pen to blow 'spit wads' at some of his fellow students."
Following the lead of the school officials, the Spotsylvania County School Board referred the ninth-grader to local law enforcement, resulting in his now being involved in juvenile criminal proceedings for assault."
"in the school hallway during lunch period, kidding around, he was using the body of a pen to blow 'spit wads' at some of his fellow students."
Wednesday, February 16, 2011
The Healthcare Herring - Charlie Virgo - Mises Daily
The Healthcare Herring - Charlie Virgo - Mises Daily: "Even if we assume that the statistics are accurate and the opinions are valid, what evidence have they provided that more government is the answer? Simply announcing that 50 million Americans are uninsured doesn't mean a government-run healthcare system is necessary, because it could have been our government's involvement that has led to the current situation."
Shrinking Government | Richard W. Rahn | Cato Institute: Commentary
Shrinking Government | Richard W. Rahn | Cato Institute: Commentary: "This is a $300 billion increase in the deficit in this year of claimed 'economic recovery.' The House Republicans are trying to come up with a proposal to 'cut' $100 billion from this year's budget, and the White House says it is too much. To restate: The White House just increased its estimate of the budget deficit for this year by an amount much larger than the House Republicans are trying to save."
Monday, February 14, 2011
CrazyAuntPurl: That's so funky
CrazyAuntPurl: That's so funky: "according to the USDA, the term 'beef' can be only be used on products containing at least 40% beef.
Now that gave me pause. Shouldn't something called 'beef' be required to contain at least 50% of its namesake?"
"That is like saying I am 'tall' because I am at least 40% of the height of a supermodel."
Now that gave me pause. Shouldn't something called 'beef' be required to contain at least 50% of its namesake?"
"That is like saying I am 'tall' because I am at least 40% of the height of a supermodel."
What Should U.S. Do about Egypt? Very Little | Ted Galen Carpenter | Cato Institute: Commentary
What Should U.S. Do about Egypt? Very Little | Ted Galen Carpenter | Cato Institute: Commentary: "To most people residing in the Kremlin's empire, the Soviet Union was a meddling, imperialist oppressor. America's moral support was welcomed because they saw the U.S. as the USSR's principal adversary. Even if America had not been a beacon of freedom and democracy, there would have been positive feelings toward the avowed enemy of their imperial overlord.
The situation in the Middle East is vastly — and depressingly — different. Populations in that part of the world generally view the U.S. with great suspicion. Indeed, all too many Middle Easterners regard Washington as the meddling, imperialist power that is responsible for their unsatisfactory lot in life. A succession of U.S administrations has reinforced that negative image by backing corrupt, authoritarian regimes that looted and brutalized their people.
The result is a deep reservoir of hostility toward Washington. A June 2010 poll conducted by the Pew Research Center found that 82% of respondents in Egypt had an unfavorable view of the United States, and 79% in Jordan did so. That negative assessment is not confined to the Arab portion of the Muslim world. In Pakistan, the unfavorable rating was 68%, and in Turkey 74%.
Such pervasive animosity makes it difficult, perhaps impossible, for Washington to play a major constructive role in the political transition that we're now beginning to witness in the Middle East. Put bluntly, even if U.S. officials profess to support the goals of democracy and liberty, those statements have very little credibility with populations in that part of the world."
"embracing secular factions could easily backfire. Anti-American factions would almost certainly cite such support as evidence that Washington is continuing to meddle in their country's internal affairs, and they would use it to discredit their secular opponents."
The situation in the Middle East is vastly — and depressingly — different. Populations in that part of the world generally view the U.S. with great suspicion. Indeed, all too many Middle Easterners regard Washington as the meddling, imperialist power that is responsible for their unsatisfactory lot in life. A succession of U.S administrations has reinforced that negative image by backing corrupt, authoritarian regimes that looted and brutalized their people.
The result is a deep reservoir of hostility toward Washington. A June 2010 poll conducted by the Pew Research Center found that 82% of respondents in Egypt had an unfavorable view of the United States, and 79% in Jordan did so. That negative assessment is not confined to the Arab portion of the Muslim world. In Pakistan, the unfavorable rating was 68%, and in Turkey 74%.
Such pervasive animosity makes it difficult, perhaps impossible, for Washington to play a major constructive role in the political transition that we're now beginning to witness in the Middle East. Put bluntly, even if U.S. officials profess to support the goals of democracy and liberty, those statements have very little credibility with populations in that part of the world."
"embracing secular factions could easily backfire. Anti-American factions would almost certainly cite such support as evidence that Washington is continuing to meddle in their country's internal affairs, and they would use it to discredit their secular opponents."
What Can the Law of Diminishing Marginal Utility Teach Us? - Thorsten Polleit - Mises Daily
What Can the Law of Diminishing Marginal Utility Teach Us? - Thorsten Polleit - Mises Daily: "A monetary policy of increasing the money supply is therefore never 'neutral': It necessarily lowers the exchange value of the money unit, and it necessarily benefits some people (namely the first receivers of the new money) at the expense of others (namely the late receivers of the new money)."
"If government intervenes in the time market — by, for instance, increasing the supply of bank circulation credit and fiat money — it necessarily causes a deviation of the market interest rate from the pure interest rate (namely pushing the market interest rate below the pure market interest rate), which subsequently must lead to malinvestment and boom-and-bust."
"Violations of individual property rights (for instance through government taxation, regulations, etc.)" "thus raise peoples' time preference, increasing consumption at the expense of savings and investment, thereby reducing (or even reverting) the pace of capital accumulation. An interventionist-socialist societal order will therefore necessarily lead to impoverishment relative to a free market societal order, in which there are no systematic violations of individuals' property rights."
"If government intervenes in the time market — by, for instance, increasing the supply of bank circulation credit and fiat money — it necessarily causes a deviation of the market interest rate from the pure interest rate (namely pushing the market interest rate below the pure market interest rate), which subsequently must lead to malinvestment and boom-and-bust."
"Violations of individual property rights (for instance through government taxation, regulations, etc.)" "thus raise peoples' time preference, increasing consumption at the expense of savings and investment, thereby reducing (or even reverting) the pace of capital accumulation. An interventionist-socialist societal order will therefore necessarily lead to impoverishment relative to a free market societal order, in which there are no systematic violations of individuals' property rights."
Friday, February 11, 2011
Investors Finally Fear the Inflation Precipice - Robert P. Murphy - Mises Daily
Investors Finally Fear the Inflation Precipice - Robert P. Murphy - Mises Daily: "It is true that Bernanke could reverse course before things are too late, as far as the purchasing power of the dollar is concerned. But this would entail devastating pain to the banking sector, since the Fed would have to reverse the policies that bailed out the overleveraged titans in the first place. If Bernanke has to choose between saving rich bankers or the dollar, I am confident he will choose the former."
"By the same token, there are all sorts of scenarios where the natural 'unwinding' of the Fed's extraordinary policies won't work as planned. In particular, if even official CPI inflation starts creeping above 4 and 5 percent on an annual basis, while unemployment remains above (say) 8 percent, then it will become apparent that Bernanke's 'exit strategy' leads into a brick wall."
"in the 2nd quarter of 2009, the Fed's absorption of Treasury debt amounted to 48 percent of the new debt issued in that period. And ZeroHedge posted the following chart showing that the Fed is currently the world's largest single holder of Treasury securities, surpassing China:"
"By the same token, there are all sorts of scenarios where the natural 'unwinding' of the Fed's extraordinary policies won't work as planned. In particular, if even official CPI inflation starts creeping above 4 and 5 percent on an annual basis, while unemployment remains above (say) 8 percent, then it will become apparent that Bernanke's 'exit strategy' leads into a brick wall."
"in the 2nd quarter of 2009, the Fed's absorption of Treasury debt amounted to 48 percent of the new debt issued in that period. And ZeroHedge posted the following chart showing that the Fed is currently the world's largest single holder of Treasury securities, surpassing China:"
Cutting Spending to Revive Federalism | Chris Edwards | Cato Institute: Commentary
Cutting Spending to Revive Federalism | Chris Edwards | Cato Institute: Commentary: "• Every dollar of federal aid sent to the states is taken from federal taxpayers who live in the 50 states. Sending all that money to Washington and back again creates a huge administrative burden in tracking the funding flows and dealing with all the regulations attached to each of 1,122 programs.
• Federal aid reduces state policy innovation because it comes with top-down rules that mandate conformity. State governments can't be 'laboratories of democracy' if they operate under one-size-fits-all rules from Congress.
• Aid programs spur overspending by every level of government, since politicians can appease special interests with the spending while imposing part of the funding costs on other levels of government. State politicians over-expand Medicaid, for example, because the feds kick in more than $1 for every $2 in new benefits.
• Liberals imagine that federal experts can rationally distribute aid to the neediest local activities. The reality is that politics determines the activities and congressional districts that receive the most aid. Even if politics were taken out of it, the federal government does not have the knowledge to efficiently allocate local funding across a diverse nation of 308 million people.
• The huge scope of the aid system means that federal politicians spend much of their time on local issues. Rather than focusing on national defense, they are busy fixing potholes in their districts. Pres. Calvin Coolidge was prescient in warning that state aid was 'encumbering the national government beyond its wisdom to comprehend, or its ability to administer' its proper roles.
• The three levels of government would work better if they resembled a tidy layer cake with separate functions, rather than a marble cake with jumbled lines of responsibility. The failure of our marble-cake government was evident in the disastrous lead-up to, and aftermath of, Hurricane Katrina."
• Federal aid reduces state policy innovation because it comes with top-down rules that mandate conformity. State governments can't be 'laboratories of democracy' if they operate under one-size-fits-all rules from Congress.
• Aid programs spur overspending by every level of government, since politicians can appease special interests with the spending while imposing part of the funding costs on other levels of government. State politicians over-expand Medicaid, for example, because the feds kick in more than $1 for every $2 in new benefits.
• Liberals imagine that federal experts can rationally distribute aid to the neediest local activities. The reality is that politics determines the activities and congressional districts that receive the most aid. Even if politics were taken out of it, the federal government does not have the knowledge to efficiently allocate local funding across a diverse nation of 308 million people.
• The huge scope of the aid system means that federal politicians spend much of their time on local issues. Rather than focusing on national defense, they are busy fixing potholes in their districts. Pres. Calvin Coolidge was prescient in warning that state aid was 'encumbering the national government beyond its wisdom to comprehend, or its ability to administer' its proper roles.
• The three levels of government would work better if they resembled a tidy layer cake with separate functions, rather than a marble cake with jumbled lines of responsibility. The failure of our marble-cake government was evident in the disastrous lead-up to, and aftermath of, Hurricane Katrina."
Woman Loses Home to Foreclosure for Being Unable to Pay Attorney Fees - FoxNews.com
Woman Loses Home to Foreclosure for Being Unable to Pay Attorney Fees - FoxNews.com: "someone lost a house that she owned outright for less than a $1,000 in legal fees"
Wednesday, February 09, 2011
Rand Paul Is Right about Israel | Benjamin H. Friedman | Cato Institute: Commentary
Rand Paul Is Right about Israel | Benjamin H. Friedman | Cato Institute: Commentary: "Being pro-Israel does not require arming it with our tax dollars forever. Israel can now defend itself and then some."
Republicans Are Weak on Farm Subsidies | Michael D. Tanner | Cato Institute: Commentary
Republicans Are Weak on Farm Subsidies | Michael D. Tanner | Cato Institute: Commentary: "The level of hypocrisy is breathtaking. For example, conservatives rightly denounced government subsidies to business when the auto industry was at issue. Why, then, are subsidies a good idea when directed to, say, Archer Daniels Midland?"
"And it is hard to see how anyone can claim to be a fiscal conservative while supporting $15 – 35 billion per year in government spending that largely goes to a group of people with incomes above the national average. Farm income for 2010 exceeded $92.5 billion. That's a 34 percent increase from 2009, and — even if you subtract payments from the government — 28.8 percent above the previous ten-year average. While conservatives often mythologize small farms, most farm subsidies go to large and corporate farms. In fact, the largest 10 percent of recipients receive 73 percent of all subsidy payments."
"It is always easier to cut the other guy's subsidy. And some of the most deeply 'red' states are among the biggest collectors of federal largess. In 2010, solidly Republican states such as Alaska, Kansas, North Dakota, South Dakota, and Virginia were among the largest recipients of per capita federal spending. That means any serious attempt to cut federal spending is going to require Republicans to take on their own constituencies."
"And it is hard to see how anyone can claim to be a fiscal conservative while supporting $15 – 35 billion per year in government spending that largely goes to a group of people with incomes above the national average. Farm income for 2010 exceeded $92.5 billion. That's a 34 percent increase from 2009, and — even if you subtract payments from the government — 28.8 percent above the previous ten-year average. While conservatives often mythologize small farms, most farm subsidies go to large and corporate farms. In fact, the largest 10 percent of recipients receive 73 percent of all subsidy payments."
"It is always easier to cut the other guy's subsidy. And some of the most deeply 'red' states are among the biggest collectors of federal largess. In 2010, solidly Republican states such as Alaska, Kansas, North Dakota, South Dakota, and Virginia were among the largest recipients of per capita federal spending. That means any serious attempt to cut federal spending is going to require Republicans to take on their own constituencies."
Obama on Auto-Defrosting Refrigerators - Jeffrey A. Tucker - Mises Daily
Obama on Auto-Defrosting Refrigerators - Jeffrey A. Tucker - Mises Daily: "All evidence suggest that the truth is precisely the opposite of what Obama claimed. Frost-free freezers came about in the normal market way. A company found a way to package it as a luxury good available in some markets. Another company saw the advance and emulated it, offering it to still other markets (though the process was likely slowed by the government regulation called the patent). Other companies saw the potential for solving a monstrous household problem and began making them more cheaply and more efficiently, as the target market gradually went from luxury to mainstream. Over time, the improved product was ubiquitous."
Tuesday, February 08, 2011
It's Time to End Amtrak Funding | Randal O'Toole | Cato Institute: Commentary
It's Time to End Amtrak Funding | Randal O'Toole | Cato Institute: Commentary: "Train travel has declined for good reason: Trains are slower than flying, less convenient than driving, and far more expensive than either.
Per passenger mile, Amtrak fares average twice as much as airfares or the cost of intercity driving."
"The round-trip subsidy to each New York-to-Orlando train passenger is close to $500." "Taxpayer subsidies to someone driving or flying between New York City and Florida are less than $25 round trip."
"Amtrak's diesels use as much energy and emit as much pollution as cars in intercity travel."
Per passenger mile, Amtrak fares average twice as much as airfares or the cost of intercity driving."
"The round-trip subsidy to each New York-to-Orlando train passenger is close to $500." "Taxpayer subsidies to someone driving or flying between New York City and Florida are less than $25 round trip."
"Amtrak's diesels use as much energy and emit as much pollution as cars in intercity travel."
Destructive Economic Myths | Richard W. Rahn | Cato Institute: Commentary
Destructive Economic Myths | Richard W. Rahn | Cato Institute: Commentary: "If the debt ceiling is not raised, government officials will have a choice to default on the interest payments (less than 10 percent of the government's total income) or cut spending. Sen. Pat Toomey, Pennsylvania Republican, has introduced the Full Faith and Credit Act (S.163), which would require the Treasury to make interest payments on U.S. government debt its first priority if the debt ceiling is not raised. This legislation would require the federal government to reduce spending on other activities and/or sell assets, as any business or family would need to do when faced with a similar problem."
"Spending would only have to be reduced to roughly the 2006 level to avoid an ongoing deficit."
"If government spending could bring about full employment, the socialist countries would have been great successes rather than basket cases. Remember, the money government spends on "creating" jobs comes from either taxing or borrowing — both of which take money and jobs out of the more productive private sector — thus reducing the total number of jobs."
"Spending would only have to be reduced to roughly the 2006 level to avoid an ongoing deficit."
"If government spending could bring about full employment, the socialist countries would have been great successes rather than basket cases. Remember, the money government spends on "creating" jobs comes from either taxing or borrowing — both of which take money and jobs out of the more productive private sector — thus reducing the total number of jobs."
Monday, February 07, 2011
U.S. seeks veto powers over new domain names | Privacy Inc. - CNET News
U.S. seeks veto powers over new domain names | Privacy Inc. - CNET News: "The Obama administration is quietly seeking the power for it and other governments to veto future top-level domain names, a move that raises questions about free expression, national sovereignty, and the role of states in shaping the future of the Internet."
House Republicans slash agencies, nick themselves - FoxNews.com
House Republicans slash agencies, nick themselves - FoxNews.com: "When Democrats took over Congress in 2007, they inherited a $3.8 billion budget for Congress. That includes money for members' and leadership offices, House and Senate committees, and support agencies such as the Capitol Police and the Congressional Budget Office, which crunches numbers for lawmakers as they consider legislation.
Since then, that budget has risen to $4.7 billion, a 23 percent increase over four years."
Since then, that budget has risen to $4.7 billion, a 23 percent increase over four years."
Phony Solutions for Real Social Ills | David Boaz | Cato Institute: Commentary
Phony Solutions for Real Social Ills | David Boaz | Cato Institute: Commentary: "Reducing the incidence of unwed motherhood, divorce, fatherlessness, welfare and crime would be a good thing. So why the focus on issues that would do nothing to solve the 'breakdown of the basic family structure' and the resulting 'high cost of a dysfunctional society'? Well, solving the problems of divorce and unwed motherhood is hard. And lots of Republican and conservative voters have been divorced. A constitutional amendment to ban divorce wouldn't go over very well, even with the social conservatives. Far better to pick on a small group, a group not perceived to be part of the Republican constituency, and blame it for social breakdown and its associated costs."
Friday, February 04, 2011
The Trouble with Economic Statistics - Robert Higgs - Mises Daily
The Trouble with Economic Statistics - Robert Higgs - Mises Daily: "Because they are ill-defined conceptually, many official economic statistics fail to capture what they purport to measure. Figures on 'poverty,' for instance, are notorious in this regard. Is poverty an absolute or a relative condition? If the latter, what is the proper standard of comparison?
Obviously, the living conditions of many Americans below the 'poverty line' must seem affluent to billions of submerged denizens of the Third World. Apart from international comparisons, many Americans now classified as poor would have seemed well-to-do in the eyes of, say, their grandparents. Above a certain absolute income, 'poverty' becomes less a definite condition than a staging area from which armies of redistributionists launch their attacks on higher-income people."
Obviously, the living conditions of many Americans below the 'poverty line' must seem affluent to billions of submerged denizens of the Third World. Apart from international comparisons, many Americans now classified as poor would have seemed well-to-do in the eyes of, say, their grandparents. Above a certain absolute income, 'poverty' becomes less a definite condition than a staging area from which armies of redistributionists launch their attacks on higher-income people."
Wednesday, February 02, 2011
Internet 'kill switch'--help or hindrance? (poll) | Privacy Inc. - CNET News
Internet 'kill switch'--help or hindrance? (poll) | Privacy Inc. - CNET News: "'It's difficult for the US to criticize an autocrat like Hosni Mubarak for shutting down the Internet if we give our own president similarly sweeping powers,' says Berin Szoka of the TechFreedom think tank in Washington, D.C. 'Even if that never, ever happens here, our having such laws on the books certainly makes it more likely other governments will gain, and abuse, such powers.'"
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