Friday, July 31, 2009

Who Pays More Income Taxes: The Top 1% or the Bottom 95%?

I've blogged about this before, but here is some updated data from the IRS, via the Tax Foundation, on the topic: Tax Burden of Top 1% Now Exceeds That of Bottom 95%. Not only is that now true about income taxes, but it has been trending this way for some time: from 1987 to 2007, the bottom 95% share's of total income taxes has fallen from 58% to 39.4%, while the share of total income taxes paid by the top 1% has risen from 24.8% to 40.4%. What this means is that the top 1.4 million taxpayers pay a larger share of the income tax burden than all of the bottom 134 million taxpayers combined.

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Friday, July 17, 2009

Don't Wash Those Vegetables, or the Government Will Get You!

Read this ridiculous posting for another story of government regulation's strangling business -- this time your loveable local farmer who sells veggies at a farmer's market. Apparently they aren't allowed to wash the vegetables, even if they don't label or package them in any way that indicates they have been washed. They must be sold dirty, as dirty as they came from the field. Wow.

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Wednesday, June 17, 2009

On Obama's Big Re-Regulation Speech Today

At the risk of redundancy -- since I sent bursts of opinion on this to my Facebook friends and Twitter followers today as well -- here are a few thoughts I had while listening to Obama's big speech today announcing his intentions to re-regulate the financial industry:
  • We'll see how many of his proposals make it through Congress. But one question I have now: how will more regulation lead to less fine-print in mortgages and credit card paperwork? When has more reg ever had that result? Take prescription drugs for instance -- see the magazine ads!
  • Mark calendars for 5 and 10 yrs from today (Obama re-regulating financial industry): did this make things better or worse? and for who? and what "unintended", negative side effects will this produce? There always are some from such sweeeping gov. moves.
  • Really, Mr President? Really no mention of the biggest cause of the bubble and problems that followed: Fed easy money policy. Nope, no one in DC wants to criticize the Fed. Instead, more power begin given to the Fed! (Sigh...)

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Sunday, June 14, 2009

Blame Beyond GM's Management

Alex Epstein has written two good blog posts critical of the notion that the primary blame for GM's problems should be attributed to GM's poor management over the years. See his posts:

In this second posting he recommends the writings (on this subject) of Holman Jenkins of the WSJ. He excerpts the following gems from a recent Jenkins article:

Why don’t the auto makers limit themselves to paying competitive wages and benefits in line with what workers could earn elsewhere? Because, in the 1930s, Congress passed the Wagner Act with the nearly explicit purpose of imposing a labor monopoly on Detroit to keep wages at higher-than-competitive levels.

Why doesn’t Detroit rationalize its musty brand lineups and dealer networks? Because, in the 1950s, legislatures across the country imposed franchising laws, including the federal “dealer day-in-court clause,” to make such rationalization prohibitively expensive.

Why don’t the auto giants do as Whirlpool and other manufacturers have done, and move their production to cheaper offshore locales? Because, in the 1970s, Congress enacted fuel economy rules to penalize homegrown auto makers if they don’t build the lion’s share of their cars in high-wage, UAW-staffed domestic factories.

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Monday, May 25, 2009

Golisano Shrugs

Sound like Atlas Shrugged, anyone? Tom Golisano, one of the richest men in New York, is fed up with the state government and its continuing policy of raising taxes to spend, spend, spend. After many failed attempts to get elected so he could try to reform the state government, he is now fed up... and is leaving. He will take up residence for most of the year in Florida instead of New York, and therefore avoid paying millions to the wasteful NY bureaucracy.

This article at Cato includes Tom's own words on this matter: The Laffer Curve in Action.

I say, good for you Tom! Too bad more of us aren't in a position to make such a move. Maybe if enough businesses and individuals do so, leaders in Albany would start to make some real changes.

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Saturday, May 16, 2009

On Ethanol

I've seen an increase in articles lately critical of Ethanol. Here is a recent one (split into three pages) from BusinessWeek: "The Great Ethanol Scam". This particular article mostly concentrates on the apparent damage that the blend does on some car parts, though there are of course far more fundamental reasons to criticize the ethanol mandates. What the combination of government, environmentalists, and some select corporations have done to push ethanol on us all is is an outrage to say the least.

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Saturday, May 02, 2009

On New York's Taxes

I'm a little late commenting ont his, but there was a really good opinion piece in the April 11 issue of the WSJ: The Tax Capital of the World. The focus is on New York and the proposed increases in taxes. First we learn of the plans to further tax the "rich", who in New York are dwindling at a faster rate than elsewhere in the country given the slam that Wall Street in NYC took late last year. The article also notes that the richest 1% of New Yorkers already pay almost 40% of the income tax, and the top 0.5% pay 30%.

Speaking of State Assembly Speaker Sheldon Silver, the article later ends with these four paragraphs:

Mr. Silver says of the coming tax hikes: "We've done it before. There hasn't been a catastrophe." Oh, really? According to Census Bureau data, over the past decade 1.97 million New Yorkers left the state for greener pastures -- the biggest exodus of any state. New York City has lost more than 75,000 jobs since last August, and many industrial areas upstate are as rundown as Detroit. The American Legislative Exchange Council recently said New York had the worst economic outlook of all 50 states, including Michigan. And that analysis was done before these $4 billion in new taxes. How does Mr. Silver define "catastrophe"?

Oh, and it isn't just high earners who get smacked. The new budget raises another $2 billion or so on top of the $4 billion in income taxes with some 100 new taxes, fees, fines, surcharges and penalties to be paid by all New York residents. There are new charges for cell phone usage, fishing permits, health insurance (the "sick tax"), electric bills, and on bottled water, cigars, beer and wine. A New York Post analysis found that a typical family of four with an income below $100,000 would pay more than $800 a year in higher taxes and fees.

This is advertised as a plan of "shared sacrifice," but the group that is most responsible for New York's budget woes, the all-powerful public employee unions, somehow walk out of this with a 3% pay increase. The state is receiving an estimated $10 billion in federal stimulus money, and Democrats are spending every cent while raising the state budget by 9%. Then they insist with a straight face that taxes are the only way to close the budget deficit.

And so Albany is about to make a gigantic gamble on New York's economic future. The gamble is that the state with the highest cost of doing business can raise taxes on everyone who lives, works, breathes, eats or drinks in the state and not pay a heavy price for it. If they're wrong, New York will enhance its reputation as the Empire in Decline State.


I've lived almost my entire life in New York, and still very much like where I live. But how much further down the road of "spend and tax" can our state go before it becomes unlive-able?

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Henry Waxman's Scary Plans For Us

I find it hard to choose what items to bother mentioning at my blog, because there are just so many worthy items coming out of Washington. There are so many attacks on our rights, proposed schemes that will ruin the economy, and so on... where does one begin? Why mention this horrific idea over any other? I'll continue to somewhat randomly mention the ones that happen to catch my eye... like this item from the April 10th WSJ: Henry Waxman Has a Plan. The list of things his plan would further regulate includes roofing, furnaces, laundry machines, dishwashers, showerheads, faucets, water closets, urinals, jacuzzis, lightbulbs, lamps... and likely a lot more that the article doesn't bother to mention. Another day, another "yikes!".

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Friday, May 01, 2009

Really? Getting a Ticket for Parking In Your Own Driveway?

Radley Balko reports on the latest insanity from Washington, DC: generating revenue by issuing tickets to people for parking their cars in their own driveways!

That is just so bizarre... it really sounds like a fake headline from The Onion. If this is true... one really has to ask... again... what will politicians do next?

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Tuesday, April 28, 2009

Obama and Big Numbers: The Difference Between 100 Million and Several Trillion

Yet another great visualization of the numbers that are being tossed around in Washington these days: Obama Budget Cuts Visualization.

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Thursday, April 23, 2009

On Big Numbers and the Obama Budget

My friend Will Wilkinson's brief article Obama budget adds up to a big problem nicely summarizes many of the points I've been making lately to anyone who will listen. He notes the feebleness of Obama asking each cabinet area to cut $100 million, how such numbers are dwarfed by the number $3.5 trillion, and the obvious long term problem being that we will all have to pay for this spending spree at some point down the road -- through higher taxes or through inflation (a tax on money you already have). Well done Will!

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Saturday, April 04, 2009

Thomas Sowell on One Major Cause of the Housing Crisis

Thomas Sowell recently wrote a good essay focusing on one of the biggest causes of the financial crisis -- the unnecessary and economically damaging government emphasis and programs to try to artificially increase home-ownership. A good read.

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Scary Debt Numbers

As a follow-up to my recent posting "Scary Deficit Numbers", see the graph that accompanies the March 23 WSJ editorial. These are the CBO estimates for the federal debt held by the public as a share of GDP if President Obama's 2010 budget becomes law. Notice it skyrocket from just over 40% to close to 60% in 2009, and then gradually increase to over 80% by 2019. Just yet another visualization of the enormous spending being proposed here!

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Thursday, April 02, 2009

Scary Deficit Numbers

See this graph from the Washington Post. The White House numbers are scary enough, but the independent CBO numbers are even more frightening. See Paul Hsieh's post at NoodleFood for some further comments on this.

I'd love to re-watch the many quotes -- from Democrats in particular -- the countless times they criticized the now relatively-puny-deficits from the past 8 years (particularly before they took over congress). Those quotes should play on a loop on some cable station me thinks.

And just keep in mind folks -- these numbers are the annual deficit numbers, which means they are cumulative on top of the already existing huge debt.

We'll soon need new adjectives here folks!

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Wednesday, March 25, 2009

How Many Will Choose To Shrug?

Here is an interesting item... apparently a resignation letter from an AIG employee to their CEO. The most disturbing aspect of this is on page 2, where he notes "the only motivation" remaining for AIG employees: fear from politicians "naming and shaming" them. This letter, the events that prompted it... again, this is very reminiscent of Atlas Shrugged. I wonder how many other people -- at AIG or elsewhere -- will be as brave as Jake DeSantis and choose to "shrug"?

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Saturday, March 21, 2009

Coming Next? Make Them Stay at AIG

The blog Titanic Deck Chairs had a nice posting titled AIG Bonuses and Retention Contracts -- A Proposed Solution. Does this seem farfetched? I could see Barney Frank and the others at least suggesting this solution. I'd like to think there would be enough of an outcry from other legislators -- and the "American people" -- to keep it from happening.

Regardless, this was an interesting, provocative post, with a great reference to Directive 10-289, from Atlas Shrugged here!

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Monday, March 16, 2009

Stossel on Bailouts and Bull

John Stossel gave a great 20/20 program on Friday, March 13. He covered a handful of topics, and these are available as separate videos on YouTube as follows:

Good stuff!

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Sunday, March 15, 2009

WSJ Item on Rand's Relevance

I liked Yaron Brook's opinion piece that was published by the Wall Street Journal recently: Is Rand Relevant?

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Saturday, March 14, 2009

Glenn Garvin on Unions and Mortgage Bailout

Here is a good column about the "Orwellianly named Employee Free Choice Act", from Glenn Garvin of the Miami Herald: "No choice in Free Choice Act". This beginning speaks to a change of opinion by primary supporters of the act that I didn't know about:

If consistency is really the hobgoblin of little minds, then Hilda Solis and George Miller must be America's top ghostbusters. They think the secret ballot is the cornerstone of democracy, except for American workers deciding whether to join a labor union.

Miller is the U.S. House's chief sponsor of the Orwellianly named Employee Free Choice Act, a bill much-coveted by labor unions that would do away with secret-ballot voting when they're trying to organize a company workforce. And Solis, a former congresswoman from Southern California who is President Barack Obama's newly confirmed labor secretary, is EFCA's chief cheerleader.

Oddly enough, Miller and Solis used to think secret ballots were the very lifeblood of democracy. In 2001, introducing himself as someone ''deeply concerned with international labor standards,'' Miller wrote Mexican officials urging them to allow workers to vote on unionization with secret ballots.

''The secret ballot is absolutely necessary in order to ensure that workers are not intimidated into voting for a union they might not otherwise choose,'' Miller wrote, adding that the practice ''will help bring real democracy to the Mexican workplace.'' (The American workplace, I guess, is quite another matter.)

That is precious.

I poked around, and found this late February column he wrote on the mortgage bailout plan which was good too: Common sense missing in Obama bailout.

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Sunday, March 08, 2009

What Does $1 Trillion Look Like?

I've seen many images like this lately, and most don't do much for me. But this page's building up of images to show just how large $1 Trillion is... I find this series impressive.

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Saturday, February 21, 2009

Videos Opposing Detroit Bailout and Economic "Stimulus" Plan

Two good videos on YouTube:

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Friday, February 20, 2009

Government Again Pushing Banks to Make Bad Loans?

Bert Ely wrote a nice piece for the Feb. 2 Wall Street Journal titled "Don't Push Banks to Make Bad Loans". As always, Bert writes in a clear, concise fashion -- and makes a strong case that the federal government's recent actions are perpetuating their mistakes of the past.

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Two Economists Against the Massive So-Called "Stimulus" Plan

My friend Will Wilkinson wrote an interesting piece, The Self-Defeating Stimulus, that provides the views of two nobel award winning Economists (Edward Prescott and Edmund Phelps) on the massive so-called "stimulus" plan from the Obama administration and the Democrats in congress. Good stuff!

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Rick Santelli Is Angry About Government's Recent Actions

Rick Santelli of CNBC sparked a revolution of sorts on the floor of the Chicago Board of Trade. Watch the video to see! Pretty cool... also available on YouTube of course.

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Monday, February 16, 2009

How big is 13 Trillion?

I got an email recently from CEI (Competitive Enterprise Institute), that asked the provocative question "How Big is $13 Trillion in Debt?". (I couldn't find the email as a press release or other article at their website, but I did find it reproduced here.) It begins with these interesting numbers:

Regardless of your political party or ideological leanings, the notion of the federal government spending $2 trillion, adding to the national debt of nearly $11 trillion already, should make you stop and consider the staggering size of our national tab.

If the irony of using debt-based spending to solve a problem caused by debt-based spending has escaped you (I doubt it has), perhaps these fun facts will put things into perspective:

  • If you spent $1 every second, you'd have to keep spending for 412,000 years to get to $13 trillion. That means you'd have to start shortly after the time human beings first starting using stone tools and fire to get to $13 trillion today.
  • $13 trillion in one dollar bills weighs 28 million pounds. That's as much as 87 blue whales or 462 Statues of Liberty.
  • If you laid 13 trillion one-dollar bills end-to-end they'd reach from the earth to the sun and back...five times over. That's 946 million miles of greenbacks.

It then continues on to talk a bit about the $2 trillion bailouts figure, and also the big number that amounts to the amount of interest we are all paying on the debt.

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Latest Eminent Domain Disgrace: Seize My Property, Then Sue Me if I Complain

Yikes... this is ridiculous. As if the Kelo decision from the Supreme Court, and the countless similar eminent domain abuses weren't bad enough, this latest twist reported by Forbes magazine is outrageous: Seize someone's property, and if he cries foul, sue him.

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More on Canada's Health Care System

The Feb. 9th issue of the Wall Street Journal had an excellent piece by Nadeem Esmail, titled 'Too Old' for Hip Surgery. This provides several examples of the perils of government-run/national health care systems -- and notably gives horror stories from Canada, one of the countries that politicians love to point to as a system that the US should emulate. Read this brief article and remember its lessons the next time you are told how wonderful such a system would be: where will you go when you are faced with similar wait lists and rationed care here in the US? If every country adopts such a system, there won't be anywhere for folks like those in this story to escape to for timely life-saving care!

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Gary Becker on the Stimulus Plan

In the Feb. 10 issue of the Wall Street Journal, Nobel economist Gary Becker (along with Kevin Murphy) analyzed the stimulus plan working its way through Congress: There's No Stimulus Free Lunch. They consider the plan's effects according to four basic factors -- a good read.

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Thursday, February 12, 2009

BB&T's Allison on how a truly free market could have prevented this

People who are blaming "capitalism" and "free markets" for all of the problems in our banking and financial systems are willfully evading the extent to which our system is not truly free at all. I mean we have how many pages of regulations already? And we have government institutions like Fannie and Freddie, not to mention the Federal Reserve itself?

While the US remains more capitalist and free-market than many other countries, we have been steadily becoming less free since just about day one. Or perhaps "steadily" isn't quite the right word, since our economic history if punctuated by specific government actions that have decreased the level of freedom in our markets... but the general trend has been consistently downard in this regard. The similiarities with some of the events of Ayn Rand's novel Atlas Shrugged are made clear almost every day.

Here is a good writeup (split into six short pages) at TheStreet.com about the views of John Allison, BB&T Chairman and free-market enthusiast: BB&T's Allison: A Free Market Could Have Prevented This. Embedded in the article are several audio clips of an interview with Allison, so don't miss those too.

Here are some good bits from the article:

"This is potentially the worst economic correction that I experienced in my career," he says. "What's unique in this correction was the panic created unfortunately by the Treasury, the Fed and [former President Bush] in October."

Allison takes issue with the government's ability to produce -- "out of the blue" -- $700 billion for the bailout package; the "incredible arbitrariness" of saving some banks and letting others fail; and the lack of consistency within the plan so far, he says.

"Markets hate that kind of stuff," Allison says.

...

"[Allison] established and nurtured a corporate culture of the highest integrity," BB&T lead corporate director James Maynard, who is also the co-founder and chairman of the Golden Corral restaurant chain, said in the August release announcing Allison's retirement. "His leadership is unique and unprecedented in the financial industry. Our company has seen profitable growth for more than 20 years."

Unlike larger, in-state rivals like BofA and Wachovia, which was acquired by Wells Fargo (WFC Quote - Cramer on WFC - Stock Picks) at the end of last year, BB&T has remained profitable, mostly due to its conservative lending standards and the discipline that Allison and his team followed.

...

Allison says the roots of this downturn were laid out by years of easy credit and misguided policies from the Fed and Republican and Democratic administrations.

For one, the aggressively low interest-rate management by former Fed Alan Greenspan created the "illusion of low risk" in the economy that caused consumers and investors to "save less" and "make more risky investments," he says. From the early 1990s through 2007, "we didn't have a meaningful correction," he says.

...

Allison says the creation of the Federal Deposit Insurance Corp. in the 1930s provided a "lack of discipline" at financial institutions seeking to grow their deposit bases. Most importantly, he took issue with the Clinton administration's affordable housing policy objectives, which ultimately led to the solidification of government-sponsored enterprises Fannie Mae and Freddie Mac as major players in the mortgage market.

"Homeownership is a good thing in a broad context, but encouraging people to buy homes they can't afford is not a good thing," he says. "If you want to look at the proximate cause for this mess you got to focus on Fannie Mae and Freddie Mac. They would have never existed in the free market. They drove the mortgage market."

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Saturday, January 31, 2009

Video On the So-Called Stimulus Bill

Here is a good video on YouTube about the so-called "Stimulus" plan going through Congress right now. Only 7 minutes long, and very easy to understand, it is well worth a viewing.

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The FDA and Health Care's Future

The Dec. 30th issue of the Wall Street Journal had two excellent opinion pieces about health care in the US:
The first gives a good summary of what we are likely to see coming soon in the US, given the selection of Tom Daschle as a key part of Obama's health care reform team. The second is yet another indictment of the horrible FDA, and yet more reason that the organization should be significantly reformed and preferably dismantled altogether.

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Monday, January 19, 2009

On Property Taxes in New York

The top story in my local Rochester newspaper today described the results of a recent report from the Tax Foundation. I new that New York had really high property tax rates, the worst in the country. But in terms of property tax burden as a percentage of home values -- a useful statistic I think -- New York amazingly has 19 of the top 20 counties in the entire US. My home county, Monroe is fifth highest in the country, with a 2.8% rating. The highest is Orleans county in New York, which is at 3.0%. (The only county to crack the top 20 that is not from New York, in case you are curious, is Fort Bend, Texas.)

This is pretty depressing, since politicans talk about this issue all the time, but little is ever done about it. They just note the rising costs of this or that service, the hefty mandates imposed by the State government, and on and on. No one ever talks about the proper role of government, and about truly cutting back what the state does in a radical way -- even radical cuts spread out of a period of a decade to ease the transition. Until the people demand this, the politicians likely won't put forth such a radical plan. We'll just keep slowly leaking talented people out of the state, people who are fed up with our outrageous property taxes.

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Saturday, January 17, 2009

On Time People Spend Looking For Work

I don't recall ever thinking about this question before: How much time does the average unemployed person spend, in minutes and on average, each day? Well, an article in the Jan. 3 issue of the Economist magazine, A Safety Net in Need of Repair, provides the stats for a few countries.

See the graph that goes with the article. It seems that in the US the average unemployed person spends a little over 40 minutes a day "looking for work". That struck me as quite low. There are of course many important things one could be doing while umemployed in addition to looking for work aggressively: going back to school or getting more work training to better enable you to find a job in the future is one obvious example. Or if you have young children, then their needs -- in light of your inability to afford childcare now -- would also take up a lot of your time.

But still, it strikes me that 40 minutes a day is quite low. But what is quite interesting is that the other countries in the graph are all significantly lower on this metric! France is under 30 minutes a day, Spain just over 20, Germany about 10, and Britain and Sweden under 10! Yikes. The article I think rightly notes that this is largely because those countries have stronger UI programs and hence individuals have less incentive to aggressively look for work.

The article itself was arguing in favor of overhauling the unemployed insurance system in the US, presumably to give more benefits in light of the recession. I won't go into my views on this here, I'll just note that I hope that the congress and new administration take this intuitive, and apparently empirically-validated fact into consideration.

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Friday, January 09, 2009

IRS Battles Over Pennies

Check out this story from a few days ago: 9-cent IRS Dilemma Leaves Lawyer Confused. This is definitely one of those stories that falls into my category of "Nearly a laugh, but really a cry".

Talk about "bigger fish to fry"... can't the IRS have software in place so that anything below, say, a few dollars gets ignored, or better yet, just considered settled? It obviously is a waste of government tax-payer dollars, not to mention this poor guy's time and money, to mess around with taxes for 4 cents or 9 cents or whatnot.

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Tuesday, December 30, 2008

We need to get rid of the Electoral College

See this good Dec. 14th opinion piece from the WSJ, It's Time to Junk the Electoral College. Here Jonathan Soros gives a brief history of the Electoral College, and mentions many of downsides of it. For instance, our current system allows for a candidate who wins the national popular vote -- to actually lose the election (this happened to Al Gore in 2000). It also leads to politicians disproportionately focusing on the "battleground" states -- the ones that aren't guaranteed "red" or "blue" on the electoral map. A better approach would truly treat everyone's vote as equal.

The article then goes on to describe an approach to doing away with the Electoral College that does NOT involve a constitutional ammendment. I've read about this approach before, but didn't quite understand how it would realistically work. But this is a very good explanation, and I'm now in favor of this:

To understand how the proposal works, one needs to understand two basic principles. First, that state legislatures are basically unfettered in how they choose to appoint electors. And second, that groups of states can enter into binding agreements with one another in the form of so-called interstate compacts. There are many examples of such compacts, including the Port Authority of New York and New Jersey and the interstate agreement that guarantees a driver points on a Virginia driver license when he or she speeds in Maryland.

Under the proposed National Popular Vote compact, state legislatures would agree to choose electors who promise to support the winner of the nationwide popular vote. For example, if a Republican were to win the overall national popular vote, even if New Yorkers favored the Democrat, New York's Electoral College votes would go to the Republican. The compact will go into force when states representing 271 Electoral College votes have entered into it to guarantee that the winner of the popular vote will become president.

It is ironic that the most common objection to the National Popular Vote compact is the suggestion that it is antifederalist. In fact, interstate compacts lie at the very core of federalism: individual states combining their powers to solve a problem. In this case, they would be joining forces to allow their citizens to act as one nation in the selection of their president.

The National Popular Vote compact has already been enacted by four trailblazing states -- Maryland, New Jersey, Illinois and Hawaii -- and has been introduced in 41 others. It's time that the rest of them got on board.

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A Step in the Right Direction for Organ Donation?

See the Dec. 17th WSJ opinion piece Wait-Listed to Death. This article discusses the work Arlen Specter (R, Pa.) is doing to re-write the provision of the 1984 National Organ Transplant Act that bans any incentives for people to donate bodily organs.

I'd much rather see us make more dramatic changes than what Specter is pushing for -- such as creating a market for organs to really boost supply and save many lives and improve the quality of life for so many more. But short of that, I think what Specter is pushing for is a good first step. There are many unintended consequences of the currently law, such as this:
The impact of the federal statute is as appalling as it is ironic. Kidney transplant recipient Sally Satel has noted that burial and cremation expenses can be provided when a body is donated to science -- as long as it isn't used to save the life of a current patient.
Even if you don't agree with me that people's families should be able to be paid in order to encourage organ donation upon death, or that people should be able to be paid in exchange for donating a kidney while alive, who could argue with changing the law to end the above ridiculous situation? In that case, the benefit only covers some of the costs of the death -- burial and cremation expenses -- it doesn't provide any additional benefit to the surviving family. So even a desperate poor person wouldn't think of suicide to aid his family, because this revised law wouldn't receive any real financial benefits from it -- they just wouldn't have the added cost of burial/cremation brought about by the suicide.

This is a no-brainer, and it could help increase the number of people who agree to be organ donors upon their death -- something the thousands of people dying and suffering on organ waiting lists desperately need!

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Sunday, December 14, 2008

Unintended Consequences, Again: Campaign Finance Reform

October brought another good report from John Stossel, this one on campaign finance reform and some unintended consequences it has brought.

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Sunday, November 23, 2008

George Will on The Big Three

George Will wrote a good column a few days ago on why Congress should let the big three American automakers go into bankruptcy: In Detroit, Failure's a Done Deal. (It is also available at RealClearPolitics here.)

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Monday, October 20, 2008

The Mortgage-Mess Fable

The Sept. 22 Wall Street Journal had a good opinion piece titled "A Mortgage Fable" that begins with a bit of humor, but then gives a nice overview of the key people and institutions at fault -- as they describe it, "Let us take the roll of political cause and financial effect". Included are: The Federal Reserve, Fannie Mae and Freddie Mac, A credit-rating oligopoly, Banking regulators, The Bear Stearns rescue, and The Community Reinvestment Act.

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Sunday, October 05, 2008

Bizarre Pork Along For the Ride

The "new and improved" (LOL) bailout (errr.... rescue) plan that was finally agreed to by Congress and the President naturally includes plenty of "pork" spending. A lot of this comes by means of bizarre, very specific tax exemptions. This USA article describes this, but I got a groan-laugh from the sidebar content that lists "some tax breaks in the current bill":
  • Bicycle commuters. Provides employees who commute by bicycle limited benefits to offset commuting costs. Estimated cost: $10 million over 10 years.
  • Children's wooden practice arrows. Exempts wooden practice arrows from excise tax, currently 39 cents. Estimated cost: $2 million over 10 years.
  • Film and television productions. Allows more film and television show production companies to use the domestic production deduction. Estimated cost: $397 million over 10 years.
  • Commercial fishermen. Allows commercial fishermen and others affected by the Exxon Valdez oil spill to average any settlement or judgment-related income over three years. Estimated cost: $49 million over 10 years.
  • Motorsports complexes. Extends seven-year cost-recovery period to the end of 2009 for land improvement and support facilities placed in service after Dec. 31, 2007. Estimated cost: $100 million over 10 years.

Sigh... Think about the waste in our system of government, such as the time and money spent by lobbiests on these issues, some perhaps over many years. And then think about how none of these things have anything to do with the bailout plan being voted on -- other than the specific congresspeople who wanted these earmark items, do the others even know they were tacked on for the ride? Probably not. How pathetic. Something like the Read the Bills Act might help with this craziness. But of course, to really fix things much more dramatic changes in our government would be needed: greatly limiting the federal government, indeed all government, to its proper functions -- protecting our individual rights. That would do away with all "pork" spending, lobbying for money, etc. Obviously... I'm not holding my breath for such a principled change in the US anytime soon.

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Wednesday, August 27, 2008

Political Videos from The Onion

There are some funny US Politics videos these days at The Onion, including:

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Saturday, August 23, 2008

On Fannie Mae and Freddie Mac

A month ago Paul Gigot wrote a great opinion piece for the Wall Street Journal: "The Fannie Mae Gang". If your only somewhat familiar with the history of Fannie Mae and Freddie Mac, then I encourage you to read this article. I really liked the ending of the article, and I've bolded a key paragraph:

Fan and Fred also couldn't prosper for as long as they have without the support of the political left, both in Congress and the intellectual class. This includes Mr. Frank and Sen. Chuck Schumer (D., N.Y.) on Capitol Hill, as well as Mr. Krugman and the Washington Post's Steven Pearlstein in the press. Their claim is that the companies are essential for homeownership.

Yet as studies have shown, about half of the implicit taxpayer subsidy for Fan and Fred is pocketed by shareholders and management. According to the Federal Reserve, the half that goes to homeowners adds up to a mere seven basis points on mortgages. In return for this, Fannie was able to pay no fewer than 21 of its executives more than $1 million in 2002, and in 2003 Mr. Raines pocketed more than $20 million. Fannie's left-wing defenders are underwriters of crony capitalism, not affordable housing.

So here we are this week, with the House and Senate preparing to commit taxpayer money to save Fannie and Freddie. The implicit taxpayer guarantee that Messrs. Gray and Raines and so many others said didn't exist has become explicit. Taxpayers may end up having to inject capital into the companies, in addition to guaranteeing their debt.

The abiding lesson here is what happens when you combine private profit with government power. You create political monsters that are protected both by journalists on the left and pseudo-capitalists on Wall Street, by liberal Democrats and country-club Republicans. Even now, after all of their dishonesty and failure, Fannie and Freddie could emerge from this taxpayer rescue more powerful than ever. Campaigning to spare taxpayers from that result would represent genuine "change," not that either presidential candidate seems interested.


Ugh. Clearly these "institutions" need to end up being privatized somehow (if you need to first nationalize them, I'd be open to at least considering that, as long as the end goal was privatizing). Indeed, Fannie and Freddie should never have been created in the first place. The government should not be in the housing loan business, risky ones or otherwise. Why? The proper role of government is the protection of individual rights. There is no individual right to own a home, pure and simple. So the government shouldn't be involved, not directly and not through half-government proxies like Freddie and Fannie.

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Sunday, August 03, 2008

Krauthammer on Pelosi on Drilling

Charles Krauthammer's Washington Post column this past week was pretty good: "Pelosi: Save the Planet, Let Someone Else Drill". He does a great job stating the unintended consequences of Pelosi's resistance to allowing for off-shore drilling and drilling in a very, very small amount of the ANWR. Here is snippet, but I encourage you to read his entire column:
Does Pelosi imagine that with so much of America declared off-limits, the planet is less injured as drilling shifts to Kazakhstan and Venezuela and Equatorial Guinea? That Russia will be more environmentally scrupulous than we in drilling in its Arctic?

The net environmental effect of Pelosi's no-drilling willfulness is negative. Outsourcing U.S. oil production does nothing to lessen worldwide environmental despoliation. It simply exports it to more corrupt, less efficient, more unstable parts of the world -- thereby increasing net planetary damage.

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Sunday, July 27, 2008

Of Onions and Oil

The July 8 WSJ had an interesting opinion piece titled "The Onion Ringer". It notes the effects from a ban on futures trading in onions, and argues that the same negative effects could occur if congress continues to demonize, and eventually bans, oil speculators.

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Saturday, July 26, 2008

On the Electoral College

I'm against retaining the Electoral College process in the US. On this issue I am open to debate though, so I was interested to read arguments in favor of the current system in the WSJ opinion piece titled "Don't Mess With the Electoral College". But I was very disappointed by the weak points made by its author, David Lewis Schaefer.

First, he focuses on the "National Popular Vote" scheme, which wouldn't get rid of the Electoral College system as such (as that would require a Constitutional amendment), but would rather have states designate their electoral votes to whoever won the national popular vote. For me then, he is arguing against a straw man.

But even his specific arguments seem weak to me. He seems to think it a good thing that the current system "favors the two party approach". Why not give third parties a chance? He writes:


Today voters have little incentive to vote for candidates nominated by minor parties such as the Libertarians, the Greens or Ross Perot's 1992 Reform Party. Since winning even 30% of the vote nationwide is likely to yield very few (if any) electoral votes, most voters wind up choosing one of the two major-party candidates.

Those who think that fact a vice should consider the alternative. Under NPV, states commit their electoral votes to the winner of the national popular vote, regardless of how small a percentage of the overall vote that candidate wins. Thus a candidate whom a large majority of Americans finds highly unacceptable might become the next president. That's because the NPV would encourage more minor-party or "insurgent" candidates who'd been denied the nomination of one of the major parties.


At most, this is an argument against the NPV approach. Ditching the Electoral College could be done in various ways, including a system that demanded a first round followed by a run-off between the top two or three candidates. Also, it seems unlikely that many third-parties would find greast success overnight, as the Electoral College is only one part of the process that is rigged against them. Odds are, for the foreseeable future, the Dems and Reps would continue to dominate the scene.

He also asserts that "It also ensures that the winner will have geographically broad (rather than merely sectional) support, and will be at least acceptable to the vast majority of the electorate." So what? Why does it matter that the winner have "geographically broad support"? If more people prefer another candidate, then that other candidate should be the winner. Period.

Another of his arguments:

Another problem: If vote totals are close, the losing candidate has a strong incentive to demand recounts or challenge voting procedures in every state, regardless of how badly he lost. After all, "every vote counts." Imagine the Florida debacle of 2000 spread across dozens of states, every four years.

This is exaggeration. "Every four years"? You prefaced this with "If vote totals are close...", and that doesn't happen every time. But besides that, if it took vote recounts, even across the entire nation, to get it right, then so be it. The alternative is the person who gets less votes winning the race. How is that better?

Then he adds this nonsensical closing:

Is there really any need to abolish the existing system, just because candidates who "lose" the popular vote by a small margin sometimes come out on top in the electoral vote? The true purpose of an electoral system is not to ensure that the presidential candidate preferred by 51% of the electorate is chosen. Rather, it is to choose an effective leader whom even most supporters of the losing major-party candidate will regard as tolerable -- so that the government is perceived as representing the people as a whole, not just victorious partisans. That's why leading-party candidates typically "run toward the middle" during the general election campaign. In a two-party race, you can't win an election without demonstrating your acceptability to a large swath of the public.

Huh? "...just because candidates lose the popular vote by small margin"? Why are in favor of arbitrarily elevating the loser to the status of winner? His answer is ridiculous: "Rather, it is to choose an effective leader whom even most supporters of the losing major-party candidate will regard as tolerable -- so that the government is perceived as representing the people as a whole, not just victorious partisans." It would seem that, in the abstract, if the person who gets 49% of the vote is "tolerable" by your standards, then so would the person who got 51% of the vote. So by what reason do you still go for the one with 49%? And lastly, candidates "run to the middle", not because of the Electoral College, but because that is where the biggest votes are. The same would be true if we had a straight popularity majority vote system, or one with stages/runoff rounds.

I'm still not convinced that retaining the Electoral College is the right thing to do. I would argue we should not have it, and that we should have either a majority vote system or a plurality vote system with one or two runoff rounds if a certain threshold percentage of votes is not obtained. The benefits of this would be at least the following:

  • Third parties might finally have a chance to be heard (at least this one hurdle would be removed for them.)
  • It would mean we never have someone who loses the popular vote being elected president.
  • It would mean every vote would count equally. Right now, I know my vote in NY doesn't matter because the Democrat will easily win the state and hence get all of NY's (rather sizeable) electoral votes.
  • It would reduce or eliminate all of the silliness of the news coverage and debates on a state by state basis. Stop wasting time and money -- just count the votes.

The only semi-plausible argument I've heard against this approach is one of the original arguments in favor of the Electoral College -- that it helps preserve the importance of smaller states. That is, it encourages candidates to visit and campaign in more states, rather than just focus on the biggest states and cities. But the EC system actually has perverse effects in this regard, as it encourages candidates to relatively ignore very large states that are undoubtedly going to go their way (like NY for Democrats). How is that fair? And it also leads to candidates spending more time on issues of interest to just particular states that are "in play". Presidential candidates aren't running to be "President of the states that are up for grabs", they are running to be President of the entire country.

And even if this was a valid point in the early days of the country, when almost all campaign-relations were local, it has almost no weight today. Most people get most of their input on who to vote for from newspapers, magazines, TV, the Internet, etc. -- not from the silly hand-shaking, baby-kissing events if and when the candidate happens by our village square. Save all that money wasted criss-crossing the nation, and put it to better use on other aspects of campaigning. The inefficiencies due to unintended consequences of the EC system are astounding.

Oh, and while I'm on this general topic, can we also please get rid of the silly system of having some states hold political primaries significantly before others? How is that fair? What gives people in Iowa and New Hampshire the right to effectively rule out some party candidates before the rest of us have had our say? All states should hold political primaries on the same day, or at least the same week, so that this negative effect is eliminated. Again, if you are an egalitarian when it comes to political rights, then this is the only fair approach to take.

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On Offshore Drilling

The July 12/13 WSJ had an interesting opinion piece titled "Environmentalists Say Yes to Offshore Drilling". The part of the story supporting the provocative title was of some interest to me, but even better were the numbers reported that indicate the different sources of oil spillage into the oceans. Guess what? Offshore drilling is not a major source at all, and still wouldn't be even if US government restrictions were loosened. Here are the numbers from a joint study by NASA and the Smithsonian Institute (amounts are per year):
  • 363 million gallons -- runoff from dry land (cities, roads, industrial sites, etc.)
  • 137 million gallons -- routine ship maintenance
  • 62 million gallons -- natural seepage from underwater oil deposits
  • 40 million gallons -- tanker spills (approximate estimate -- this figure wasn't given directly in the article, but I think I did the math right based on what was said)
  • 15 million gallons -- offshore drilling
Here are the three paragraphs where the above numbers come from:

A joint study by NASA and the Smithsonian Institution, examining several decades' worth of data, found that more oil seeps into the ocean naturally than from accidents involving tankers and offshore drilling. Natural seepage from underwater oil deposits leaks an average of 62 million gallons a year; offshore drilling, on the other hand, accounted for only 15 million gallons, the smallest source of oil leaking into the oceans.

The vast majority of the oil that finds its way into the sea comes from dry land, NASA found. Runoff from cities, roads, industrial sites and garages deposits 363 million gallons into the sea, making runoff by far the single largest source of oil pollution in the oceans. "Every year oily road runoff from a city of 5 million could contain as much oil as one large tanker spill," notes the Smithsonian exhibit, "Ocean Planet."

The second-largest source of ocean oil pollution was routine ship maintenance, accountable for 137 million gallons a year, NASA found -- more than 2.5 times the amount that comes from tanker spills and offshore drilling combined. But no one is proposing that we ban cargo and cruise ships.

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Monday, March 10, 2008

Spitzer Bombshell Apparently a Minor Story

Today the huge story about NY Governor Elliot Spitzer and his involvement with a prostitution ring came to light. I was curious how some of the media would cover this. For some reason I was particularly curious to see what Keith Olbermann would do with it on his often-raving-loud one-hour show from 8-9 EST. Well... it was quite interesting... I missed the first two minutes of his show, so likely he did mention it briefly then. However, he then went on and on about relatively minor Hillary vs. Obama drama items... for about 30 minutes! He didn't really cover the Spitzer bomb until after the half-way point in the show. I think it was big-story #3 on his program, and he only spent about 5-7 minutes on it. Doesn't this strike anyone else as strange?

I'll also note that the Atlas Society was quick to send out a brief blurb on this news, noting correctly:

It is ironic that New York Democrat Governor Eliot Spitzer has had his undeserved reputation for high moral standards tarnished by his sexual escapades which, while perhaps sleazy, did not harm any of us. In fact he deserved our moral scorn for his assault on productive individuals and flaunting of the rule of law when he was New York attorney general, done arrogantly in the name of "morality."

I had the exact same thoughts while watching the coverage tonight.

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Sunday, January 06, 2008

Scary New York Numbers

I regularly read or hear statistics about New York State that indicate it is below average or near the bottom among the 50 states in a wide range of categories. Most of the time, these stats are talking about high taxes or other economic figures.

Columnist Jay Gallagher has done us all a great favor by gathering together many such statistics into one column, New York's Numbers are Numbing. Not all of these numbers are bad for New York -- a few are actually pretty good (low crime), and many are middle-of-the-pack (so not that bad at least relative to other states). But ouch... so many of these numbers place New York at or near the bottom.

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Monday, December 31, 2007

An Update on the Government Spending Numbers

Here is a nice column from Jacob Sullum, Entitlement Mentality, that covers all the earmarks in the recent spending bill, and also reminds us of the ridiculous economic crisis that the big three entitlement programs represent.

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Government Should Not Promote Home Ownership

Government should not have policies that "promote home ownership". The very idea implies interference in the free market. Yaron Brook wrote a very good piece, Predatory Legislating, for Forbes in December, attacking the ridiculous "Mortgage Reform and Anti-Predatory Lending Act of 2007", legislation passed in the House in response to the "subprime mortgage crisis". The entire commentary is worth reading, but here are the two paragraphs on the fundamental point that is so often missed in the press when folks are talking about how the subprime mess arose:
The government does not need to crack down on lenders. It does need to take responsibility for its role in promoting irresponsible lending and borrowing practices through its myriad interventionist programs to "promote homeownership." The very concept of the government having such a goal means that it facilitates borrowing and lending that would not occur on the free market--i.e., a market in which people are held fully responsible for their decisions.

One example of this is the Community Reinvestment Act, which literally forces banks to lend to people with high credit risk. Another is the Federal Reserve's policy of creating artificially low interest rates, which encouraged financial institutions to lend out more money for mortgages than they otherwise would have--and which helped artificially bid up housing prices and fed the fervor that buying a home at any price is a can't-miss investment that all Americans should make. The government's promotion of home-buying was a recipe for irresponsibility--and that's exactly what it produced.

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Thursday, December 27, 2007

On Ron Paul

The rise of Ron Paul during this 2008 presidential primary season has been a fascinating phenomenon to watch. As someone who believes in small government, there obviously are moments when I find myself in agreement with his positions and views. He is more of a "Libertarian" than a typical "Republican" -- indeed, a couple of decades ago he ran for president on the Libertarian Party ticket.

That said, I don't support Ron Paul for president. I don't support him for many of the same reasons I don't call myself a "libertarian": that word is both too vague and generally represents a position that starts at the political level --rather than more fundamental philosophical levels. And then not surprisingly, I disagree with the views of "libertarians" on many specific and important issues of the day (while agreeing on a superficial level on some issues).

My friend Shawn Klein has summarized why he doesn't support Ron Paul, on an issue-by-issue basis, drawing on Paul's own campaign website. See also his followup to clarifiy non-interventionism points, I generally agree with Shawn's assessments. Apparently, since he wrote that post, the Paul site has been changed and now lists 16 issues, so I hope that Shawn can offer his views on the new ones sometime. If I find time and inclination, I might take a closer look at the current "isseus" section at Paul's site and comment as well.

For now, as an aside, I'll note that I find it particularly odd that the 16 issues include what I would generally consider "big issues" -- except one of them is "No taxes on tips", which is about exactly what it sounds like, the position that "tips" such as waitressing tips should not be taxed. I agree with Paul on that, but is that really worth mentioning on the same level as "Education" and "Health Care"? Obviously not. I wonder if the webmaster for the Paul campaign works as a waiter/waitress in his/her spare time, and got this issue inserted as part of their pay for work on the site? LOL

Robert Bidinotto has also done some good blogging on the Paul candidacy, focused mostly on the foreign policy area. Check out his post Ron Paul's "non-interventionism" fraud. And then the magazine Robert is the editor of, The New Individualist, has a cover story about Ron Paul (here is Robert's blog post about this issue of the magazine, with provacative cover scan).

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Sunday, December 23, 2007

The Need for an Organ Market

I meant to blog about this weeks back, but it slipped through the cracks. A great letter to the editor was published in the Chicago Tribune in November about the need for a market for organ donors. It doesn't get much more succinct and powerful than this:

Thousands have died through the years waiting for transplants because the National Organ Transplant Act forbids the sale of human organs. To significantly decrease the shortage of organs, this murderous law must be repealed and the trade in organs decriminalized. If the law recognizes our right to give away an organ, it should also recognize our right to sell an organ. And if the law recognizes our right to pay for a life-saving medical treatment, it should also recognize our right to pay for a life-saving organ for transplant.

Those able to pay for organs would benefit at no one's expense but their own. Those unable to pay would still rely on charity, as they have done to this day. Moreover, those able to buy organs would drop out of the waiting list, increasing the chances of those remaining to obtain the organs they need.

If the legitimate rights of potential buyers and sellers of organs were protected, many of the 95,000 people waiting for organs would be spared much suffering and escape an early death. How many? Let's find out.

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Sunday, October 28, 2007

Daniel Boone and the Nanny State

The Orange County Register recently published an interesting satirical piece: Daniel Boone vs. the Nanny State. While I certainly want to live in Daniel Boone's time, this essay makes many great points.

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Sunday, October 21, 2007

Romney On the United Nations

Since he's a conservative Republican, there are many things that I disagree with Mitt Romney about. But there are some areas of agreement too, and his recent statements about the United Nations seem to be on the right track. See Romney Calls UN an 'Extraordinary Failure'.

I agree that the UN has been a huge failure over the years, on many dimensions. Not that it hasn't done any good for anyone at any time -- surely it has here and there. But overall, I think it has done far more harm than good. And I don't just mean the obvious, direct harms -- such as UN workers raping women in the Congo, or massive corruption schemes like Oil for Food, or the many other items that have grabbed headlines.

I'm also talking about the apparently less obvious harms that arise from actually having a body that is composed half of democratic, relatively rights-respecting nations, and the other half literally populated by criminals. And make no mistake, that is what nations run by dictators, tyrants, monarchs, communists/socialists, and so on are -- they are nations run by criminals. Such statist regimes deny individual rights by their very nature -- some worse than others, but all to such a degree that they are different in kind than the relatively-free nations of the world like the USA, Britain, Canada, and so on.

So I'm glad to hear a Presidential candidate in the US call for "a coalition of 'free nations' as an alternative to the UN." Good for Mitt. Much of the news on this story centered around the UN's Human Rights Council, which the US has boycotted from the perspective of diplomacy and membership, because it insanely allows countries with horrible human rights records to be members.

But the HRC is not the core problem -- the UN as a whole is. I mean, what sense does it make to invite practically all nations of the world to gather to discuss issues, when so many of these nations are ruled by criminals? Do our police sit down a big table with known criminals to discuss issues in our cities? Uh, no. Too simplistic of an analogy? I don't think so.

One other thing to note about the MSNBC article linked above in particular, as it includes the following: "The comments highlighted the deep mistrust of the UN among many US conservatives, who view the organisation as an obstacle to US interests and a constraint on US power." While there might be some "conservatives" who bemoan obstacles and constraints to US interests and power in the world, this is a misunderstanding -- or blatant misrepresentation -- of the complaint that most conservatives, libertarians, Objectivists, and others have about the UN.

The primary complaint about the UN is not because it lessens US interests, but because it is inherently corrupt and does more harm than good -- objectively speaking. The UN is rotten at its core, because it allows nations ruled by criminals -- tyrants, dictators, monarchs, and so on -- to have seats at the table, chairs on the Human Rights Council, and positions from which to negotiate with the relatively free, rights-respecting nations of the world. That is the issue, and that is why the UN should be abandoned, and if any organization is created to replace it (debatable), it should be formed with far higher standards of admission.

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Monday, September 10, 2007

FDA: Definitely not "First, Do No Harm"

A vital phrase for those in the medical profession, "First, do no harm", goes back to the ancient Greeks (though, contrary to popular belief, it is not found in the Hippocratic Oath).

The following paragraph from the Wikipedia entry for this phrase (Primum non nocere) does a nice job summarizing its importance:
It is one of the principal precepts all medical students are taught in medical school. It reminds a physician that he or she must consider the possible harm that any intervention might do. It is most often mentioned when debating use of an intervention with an obvious chance of harm but a less certain chance of benefit.
I mention this important precept in relation to the WashingtonPost story, Teen Suicides Up Sharply For First Time In Years. (Thanks to John Enright for the link.) And what is the speculated reason in this news story as to the likely cause (or the biggest reason) for this increase in teen suicides? The actions of the FDA.

How so? Well, remember several years ago when the FDA got wind of studies that indicated that some anti-depressant medications (e.g., SSRIs) could have increased rates of suicides in the young, especially during the first few weeks of taking the medications as the body and mind adjusted to them? Their reaction to this was to further regulate such medications, and do so in scare-tactic fashion, by forcing the companies producing them to put big black box suicide warnings on them, targeted at teenagers specifically.

So what happened? Well, surprise, surprise: use of such medications declined dramatically amongst teens. But it is exactly these medications that are credited with helping to reduce the rate of suicide for many years previous. I mean, the biggest cause of suicide is no doubt severe depression, right? And what do people take for depression? Anti-depressant medications. So scaring people away from the medication that will help them... real bright, FDA, real bright.

Did the FDA factor this inevitable outcome into their decision process? I suspect not, or at least not well enough. The FDA has a pattern of reflexively regulating drugs based on studies (particularly big noise-making ones) that show or suggest (more or less well) negative side-effects from taking those drugs. After all, history in the US has thus far shown that no one will get fired at the FDA, nor will budgets be slashed, when thousands or millions of people die because the latest life-saving drugs are held up by FDA rules, regulations, and bureaucracy. But failing to regulate something when there is a shred of evidence that some people might have a negative side-effect -- they can't let that happen!

And this is not something the FDA can simply tweak and get better at doing. The FDA, or any such regulating body, simply can't do a very good job of weighing the personal benefits of new drugs against the possible personal negative side-effects for those same people or others. The benefits are too personal: each individual would have a different value hierarchy, meaning for one person it might worth the increased risk of heart attack to be rid of some other ailment they have, but for someone else it would not. A drug that could save millions from one killer ailment, is held up because it might increase the risk of some other ailment for those same people or others. Rather than leave it alone, regulation keeps the drug from the people who need it and want it. By what moral right does the FDA do this, by what moral right do they get to make these value decisions?

In the current case of the teen-suicide warnings, did the FDA consider the externalities of this decision? Did they weigh the harm that such a policy would do against the supposed good it could do? At first glance, one might see nothing wrong with informing people about studies on a drug that indicate a greater statistical chance of suicide amongst a population. But in addition to the above points, there is a crucial difference that complicates this case that doesn't complicate other drug studies. Unlike medications that cure one ailment but might lead to increased heart-attack risk, here we are talking about suicide -- so free will comes into play. Even if full free-will is somewhat inhibited when severe depression develops, this greatly complicates any studies in this area (in a way that doesn't arise for studies on the pancreas), making studies and aggregate statistical analysis far more difficult.

All of that said, and while I'm no expert on this, as I have said before (see my posting on this) I am prima facie doubtful of the studies indicating increased suicide as an effect of using SSRIs or other anti-depressants. Often people start taking these medications after their first visit to a doctor for depression, and because they take a while to take effect, the depression can continue to get worse before the medications help the people help themselves and begin to get better. But this is not the fault of the medication! The person was likely going to keep trending downward for a while regardless, and if they had waited until they pretty bad off before seeing the doctor, well, they might be suicidal or nearly so already.

Further, a person might become increasingly depressed when they first start trying an SSRI and don't see immediate results -- especially if their doctor didn't impress on them how the drugs work (the time needed, etc.). They might conclude "This isn't even helping? So nothing will, and I can't bear it!". But again, this is not the fault of the medication!

Do the studies the FDA relied on to require the warning boxes for teens take into account all of these kinds of points? I wonder. I don't know either way, but I wonder.

What is obvious about the track record of SSRIs and other anti-depressants (from what I gather from this article and elsewhere) is that they have been a major factor in decreasing suicide rates. Until, that is, the FDA got involved, scared teens (and their doctors) away from the medications, and the rates apparently went sharply up again. Take away a major weapon in one's battle against depression, and surprise, surprise, more people will become increasingly depressed and commit suicide. That should have been obvious to FDA regulators, but apparently it wasn't.

Btw, I've written a few posts on the FDA here at Philosopher Stone. Check them out!

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Sunday, September 09, 2007

Early Punditry on the Iraq War

This is a nice collection of mostly Republicans early during the Iraq war mess. I think the worst one here is from Fred Barnes, because for our military it was obvious that winning the initial "war" was going to be the easy part, not the hard part. Jeez... (Thanks to Radley Balko for the link.)

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Thursday, September 06, 2007

More on the Terrorism/Drug War Connection

Jacob Sullum wrote a nice column on the continuing connection between the Taliban and America's drug war policies, America's Taliban-Support Program. Nothing new for me here, except some updated numbers. But this is an important item to read if you are a supporter of the "drug war" policies in the USA.

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Saturday, August 25, 2007

Revolutionary Guard Not the Real Problem

Here is an interesting posting, The Bush Administration's Latest Deadly Evasion, on the topic of labelling the Iranian Republican Guard as a terrorist organization. The author is critical of this, though not for reasons that others are. The analogy here to the Mafia hitmen and Navy of the Nazis, is one I hadn't heard elsewhere. And then here is a question from a reader and response from the author.

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Wednesday, August 15, 2007

Hillsdale Says No Thanks to State Aid

A few weeks ago I wrote about Hillsdale College, the school that refuses federal aid on principle. Now, as the CHE reports (see also the news item from Hillsdale itself), they are going to cease taking state aid as well. It doesn't seem like their students were using a lot of it anyway, nor was the state of Michigan interfering with the college. But the important point here is one of principle, so again I congratulate Hillsdale for taking this stand.

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Saturday, August 11, 2007

A Possible Future: Prescription Drug Disaster

I recently blogged about how generic drug prices are soaring in Canada.

The flip-side of this is that brand-name drugs are of course cheaper in other countries like Canada. Here is a great ARI item that explains why that is. The crucial question is "Why?" and the answer is price controls in such countries. But the only reason this doesn't cripple the R&D efforts of drug companies -- and hence their ability to create new, life-improving and life-saving drugs -- is that people in countries like Canada free-ride on the prices paid by Americans. Creating drugs is extremely expensive: not only is the R&D rightly expensive and time-consuming, but it is made much worse because of the onerous regulation of the FDA and other government bodies. Other major costs include advertising/marketing to get the word out about new or improved drugs to doctors and patients.

This ARI item gives voice to a pro-consumer argument that you will hear almost nowhere else, as it ends as follows:
It is only because the American market is free from price controls that drug companies are able to recoup their enormous R&D costs, and thus find it profitable to sell additional units of the drugs at a lower cost in other, price-controlled countries. Should America impose price controls either directly or by proxy, the house of cards will collapse. We should protect the rights of pharmaceutical companies--and the welfare of consumers--and demand an end to price controls, direct and indirect.

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The FDA Ranges from Annoying to Deadly

My local Rochester paper yesterday ran a brief AP story titled "FDA Checks 2 Popular Heartburn Drugs". Here is a link to a slightly longer version of the same article at the LA Times, and here is the item on this from the FDA website. The story is that some new data might indicate a connection between using two AstraZeneca heartburn drugs (Nexium and Prilosec) might increase serious heart-related problems. The new data doesn't seem to add up to much, as the FDA's position is "At this time, FDA's preliminary conclusion is that collectively these data do not suggest an increased risk of heart problems," and also "Therefore, FDA does not believe that healthcare providers or patients should change either their prescribing practices or their use of these products at this time."

So such downplaying makes me wonder a bit why this is a story worthy of being in the newspaper. But then you have to wait till the end of the article for this:
A higher number of patients taking either one of the drugs suffered heart attacks, heart failure or sudden heart-related death, the FDA said. But the studies involved only a few hundred patients, a relatively small number, and larger research studies showed no indication of heart problems.

So why is this news? Sounds like at best it is some counter-evidence to larger studies that indicate no such cause-and-effect problems for heart-attack, etc. for these drugs.

While that was the last paragraph in the article in my Rochester paper, the LA times version adds this final paragraph:
In the study involving Prilosec, 17 patients taking the medication had serious heart problems, compared with eight in the group that had surgery, AstraZeneca said. However, the Prilosec patients appeared to have been in poorer health to begin with. Six of the Prilosec patients had had previous heart attacks, compared with none in the group that had surgery.

Well, that makes it even worse! So the studies in question are not only smaller than the others, but they seem to have rather important problems with how they were conducted, factors that weren't ruled out, and so on.

All of that is bad enough -- a seeming waste of our taxpayer money chasing down unlikely side-effects based on small, poorly conducted studies. But that is merely annoying compared with the truly deadly effects of the FDA's and other federal regulations on drugs and health care. First, see my recent post about two articles from the Economist that explains the often hidden costs of such regulation. Then see the recent ARI press release, The Deadly FDA, which really puts a sting into the FDA. It begins:
The Court of Appeals for the District of Columbia Circuit recently ruled that terminally ill patients do not have a right to take medicines that have not been approved by the FDA.

"Barring individuals from choosing what medicines to take is immoral and destructive," said Dr. Yaron Brook, executive director of the Ayn Rand Institute.

"The decision about what drugs to put in one's body rightfully belongs to each individual, not to FDA bureaucrats. To deny individuals this right is to impose a death sentence on those who, in the face of certain death, would rationally choose to accept the risks of an experimental treatment, but are barred from doing so until the urgently needed drug completes the FDA's onerous, years-long approval process. Indeed, this case was initiated by a group founded by the father of a girl who died after she was denied access to an experimental anti-cancer drug the FDA later approved.

"Individuals, in consultation with their doctors, should be free to assess the evidence of a drug's effectiveness and safety, taking into account their own personal context (such as their unique risk factors, or the fact that they are certain to die without the treatment). Some people may take ineffective or harmful drugs, but FDA approval does not eliminate such risks. The individual always assumes some level of risk when deciding on a course of treatment, and it is capricious--and too often deadly--for the FDA to usurp the individual's right to decide which risks it is in his interest to accept.

The rest of the press release is just as damning of the FDA as the above, and also gives brief responses to objections to this kind of view of drug regulation.

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Tuesday, August 07, 2007

Sowell on Neglected Infrastructure

Thomas Sowell has written a good column, A Bridge Too Far Gone, on some of the neglected infrastructure in the US. This is of course written in the wake of the bridge collapse in Minnesota, and the inevitable questions about similar bridges and other infrastructure issues around the country.
Some people claim that the problem is how much money it would take to properly maintain bridges, highways, dams and other infrastructure. But money is found for other things, including things far less urgent and some things that are even counterproductive.

The real problem is that the political incentives are to spend the taxpayers' money on things that will enhance politicians' chances of getting re-elected.

There may be enough money available to maintain bridges and other infrastructure but that same money can have a bigger political pay-off if spent building something new instead of maintaining and repairing existing structures.

When money is spent building a new community center, a golf course, or anything that will be newsworthy, there will be ribbon-cutting ceremonies and the politicians who cut the ribbons can expect to see their pictures in the newspapers and on TV.

All that keeps their name before the public in a positive role and therefore enhances their prospects of being re-elected.

But there are no ribbon-cutting ceremonies when bridges are being repaired or pot-holes are being filled in. These latter activities may be more valuable than a community center or a golf course, but they are not nearly a photogenic.

He then goes on to note that this incentive problem has existed for centuries, and that the situation will not improve until incentives are changed. He then makes a brief case for doing exactly that -- by privatizing bridges and other aspects of our infrastructure.
A company that has to get the money to build and maintain bridges or other infrastructure through the voluntary actions of people in the financial markets, instead of being able to extract money from the taxpayers, is going to find financiers a lot more finicky about what is being done with their money.

People who are putting their own money on the line are going to want to have their own experts taking a look under the bridges they finance, to see where there are rust, cracks or crumbling supports.

When people know that the lawsuits that are sure to follow after a bridge collapses are going to drain millions of dollars of their own money — not the taxpayers' money — that keeps the mind focussed.

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Government as a Cause of Subprime Follies

Thomas Sowell has written a column, Sub-Prime Politicians, that describes the mutliple ways that bad government policies are causes of the subprime mortgage mess. Government restrictions on building in certain times and places have been shown to be a major factor, as has the more obvious and direct government interference of pressuring lenders to give loans to people with risky credit to encourage more home ownership. He concludes his column as follows:
Yet with all the finger-pointing in the media and in government, seldom is a finger pointed at the politicians at local, state and national levels who have played a key role in setting up the conditions that led to financial disasters for individual home buyers and for those who lent to them.

While financial markets are painfully adjusting and both lenders and borrowers are becoming less likely to take on so much risky "creative" financing in the future, politicians show no sign of changing.

Why should they, when they have largely escaped blame for the disasters that their policies fostered?

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Saturday, August 04, 2007

Repugnance Shouldn't Be a Standard

Over the past several years I've read more and more from bioethicists and others who argue against some regulation, policy, or law based primarily on the grounds of "repugnance". I've read this on the issues of stem cell research, cloning, euthanasia, and others.

This is absurd. One's subjective emotional responses -- whether discomfort, repugnance, apprehension, joy, elation -- are not a proper grounding for moral evaluation of an action, or a prospective regulation, policy, or law.

And yet this charge of "repugnance" surfaces time and again, perhaps most commonly in connection with the dire situation with the lack of kidneys available for transplant. There are no where near enough donors relative to the number of those who need a kidney -- people are suffering for years for lack of a kidney, and many die waiting for one.

And yet this problem could be solved in a relatively short time if a market for kidneys were allowed to develop and flourish. In such a market, individuals could be given cash payments for one of their healthy kidneys, or their beneficiaries could be given cash payment in exchange for kidney donation after death. The former is what would really fix the shortage, but even the latter (which seems like a no-brainer) would help. But neither of these are allowed today in the US. Although regulation of a market, generally speaking, interferes with that market and creates a suboptimal result, even a regulated market is better than no legal market at all. So in this case, as with many other non-violent acts that are currently prohibited, I definitely support a move from prohibition to a regulated market for kidneys.

The BBC recently did a special on this subject. This summary, after mentioning the "repugnance" or "disgust" viewpoint (I won't even call it an argument), quotes a Bishop whose position is that cash payment for a kidney negates the act's moral worth. His position apparently is that simply donating a kidney to a stranger or loved one is a good thing, but not if you are paid for doing so. This is, in part, the common ethical bias against money, commercial exchange, and best put -- the trading of a value for a value. This is a basic -- and common -- ethical error the Bishop is making here.

Here is a great clip from this article:

Yet others argue that what really counts here is not the motive, but the results.

American writer Virginia Postrel has been campaigning for it to be legal in the US to pay cash for a kidney from a live donor.

She said: "People want to keep it as a heroic, uncompensated act because it makes them feel good.

"Never mind that tens of thousands of people are dying for your right to feel good about other people's heroic acts."

Postrel's criticism sounds cynical, but she isn't the cynic she appears to be. She donated a kidney to a sick friend, became interested in the idea of a market for kidneys because of her experience with donation.

"The reaction is completely disproportionate to the actual risks involved. People do act like you're completely nuts."

Italics mine... what a great line!

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Monday, July 30, 2007

Hillsdale College: Flourishing Without Government Funds

A recent issue of Imprimis, a monthly one-article publication from Hillsdale College with a wide distribution and readership, gave a very readable history of the college. As an atheist I really have no interest in the school's religious aspects (it was formed by Freewill Baptists in 1844, though has been "non-denominational" since its inception). But what I find praiseworthy and remarkable about the school is its refusal to accept government funding -- neither direct federal aid or even indirect aid in the form of student aid from the government. As a result, it remains free of government interference as well. This proves that it is possible to do: always has been possible and remains possible today. This article in Imprimis tells their tale nicely... keep up this principled stand Hillsdale!

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Saturday, July 28, 2007

John Stossel Responds to Michael Moore

Several recent columns by John Stossel refer to an interview he had with Michael Moore for an upcoming 20/20 piece on health care. In these columns Stossel responds to several of Moore's claims and views, and as always he makes some great points and does so in an enlightening way. The three columns are: Live and Let Live, Freedom and Benevolence Go Together, and Michael and Me. All three are good reads. I'll quote a just a few bits here:
Michael Moore may not have thought about it, but there are only two ways to get people to do things: force or persuasion. Government is all about force. Government has nothing it hasn't first expropriated from some productive person.

In contrast, the private sector -- whether nonprofit or a greedy business -- must work through persuasion and consent. No matter how rich Bill Gates gets, he cannot force us to buy his software. Outside government, actions are voluntary, and voluntary is better because it reflects the free judgment of creative, productive people.
The italics there are mine... what a great line that is! This was from the first column linked above, which doesn't actually spend much time responding to Moore. This is from the second column linked above:

Moore added, "I watch your show and I know where you are coming from. ..."

He knows I defend limited government, so he tried to explain why I was wrong. He began in a revealing way: "I gotta believe that, even though I know you're very much for the individual determining his own destiny, you also have a heart."

Notice his smuggled premise in the words "even though." In Moore's mind, someone who favors individual freedom doesn't care about his fellow human beings. If I have a heart, it's in spite of my belief in freedom and autonomy for everyone.

Doesn't it stand to reason that someone who wants everyone to be free of tyranny does so partly because he cares about others? Wishing freedom to one's fellow human beings strikes me as a sign of benevolence. But Moore and the left don't see it that way.

Moore thinks respecting others' freedom means refusing to help the less fortunate. But where's the connection? All it means is that the [advocate of capitalism] refuses to sanction the use of physical force (which is what government is) to help others. Peaceful methods -- like voluntary charity -- are the only morally consistent methods. I give about a quarter of my income to charities because I've seen that private charity helps the needy far better than government does


That was a good catch by Stossel... the smuggling use of "even though". Stossel continues on, and catches Moore with another smuggled premise:

Surprisingly, he did show an understanding of the importance of the libertarian philosophy to America. "John, your way of thinking actually was great for this country. I mean it; it helped to found the country. It helped build us into one of the greatest nations, perhaps the greatest nation, that the earth has ever seen. Limited government, pull yourself up by your bootstraps, every man for himself, forward movement, pioneer spirit. That's why a lot of people in these other countries really admire us, because there's this American get up and go."

I interrupt here to point out another smuggled premise. Did you catch that "every man for himself" line? America was never about every man for himself. A free society is about voluntary communities cooperating through the division of labor. [A free society] is far from "every man for himself."

After acknowledging that limited government helped make America great, Moore went on to say, "But I don't think that what you believe is what's going to allow us to survive."

He means that if government does not assure people health care and food, our society will disintegrate.

But why would a philosophy that was good enough to build a successful society be unsuited to sustaining that society? Individual freedom, with minimal government, made it possible for masses of people to cooperate for mutual advantage. As a result, society could be rich and peaceful. As the great economist Ludwig von Mises wrote, "What makes friendly relations between human beings possible is the higher productivity of the division of labor. . . . A preeminent common interest, the preservation and further intensification of social cooperation, becomes paramount and obliterates all essential collisions."

Freedom and benevolence go hand in hand.


And then the third column includes this excellent bit of Moore-refutation as well:

America's medical system has problems, but profit is the least of it. Government mandates, overregulation and a tax code that pushes employer-paid health insurance prevent the free market from performing its efficient miracles. Six out of seven health-care dollars are spent by third parties. That kills the market. Patients rarely shop around, and doctors rarely compete on price or service.

Moore told me, "Government can do things right. ... My dad gets his Social Security check every month. Comes not only every month, it comes on the same day through the so-called 'dilapidated' U.S. mail. ... [A]sk your grandparents what they think of Medicare. Although it has its flaws, although it may be underfunded, it's a much better program than the HMO that somebody has."

Underfunded? Medicare has a 75-year $34 trillion unfunded liability! Its costs are growing faster than inflation.

Social Security has a 75-year $5 trillion unfunded liability. These are Ponzi schemes that will be bankrupt before Moore reaches retirement age. The U.S. mail manages to deliver his dad's checks, but compare its performance to FedEx or UPS. The Post Office said it wasn't possible to deliver packages overnight.

I want FedEx health care: innovation, new cancer treatments, hip replacements and pain relief. We get that from private-sector competition, not government lethargy.

Moore said, "You don't introduce profit into your city water department."

He's wrong about that, too. As I wrote in "Give Me a Break", Jersey City, New Jersey's water tasted foul and failed safety tests. City workers said there wasn't much they could do. In fact, water prices would have to be raised ... just to maintain the lousy service they had.

So Jersey City turned its water system over to a for-profit company. Within months it had fixed the pipes government workers said couldn't be fixed, and for the first time in years, Jersey City's water met the highest cleanliness standard. Taxpayers saved $35 million.

The private company could do it better and cheaper because their skills were honed by constant competition.

Private competitors innovate or die. Government workers do what they did last year. That's why I want the private sector to provide my health care. Pursuit of profit will give us our best medicines and medical devices.


I love the very specific New Jersey water example here, as that is a direct response to Moore's rhetorical jab. And then the comparison between the private sector and government employees, which I've marked with italics, is a nice line too.

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Saturday, July 07, 2007

RIP: JFK Assassination Conspiracy Theories

The Q&A piece in the June 11 issue of US News and World Report is titled "The Final Verdict" and is a brief interview with Vincent Bugliosi, author of a new and massive book about the Kennedy assassination titled Reclaiming History. This interview summarizes his views on the matter, and really does seem convincing. Assuming the 1,696 pages of his book fully backup his views, it seems there can really be no question here. Not that this will silence all the conspiracy theorists (since likely nothing will!).

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