May 2012

I wonder what Matt Welch means when he accuses Czech President Vaclav Klaus of “resisting most efforts to come to public (let alone legal) terms with the Communist crimes of the past.” Klaus is a strong longtime supporter of the Czech policy known as “lustration,” which, “forbids [communist secret police] StB agents and their informers, as well as senior Communist Party officials, members of paramilitary units and intelligence agents, from holding high government posts.”

That may not be the most democratic policy, and could well be over the top, but branding the Communist regime’s most powerful institutions as criminal organizations hardly strikes me as commie-coddling.

The Cuban Embargo

by Ryan Young on May 28, 2008

Barack Obama says he would keep in place the 47-year old Cuban trade embargo if elected President. CNN says Obama views the trade restrictions as “leverage to push for democratic change on the island.”

Yes, those sanctions have been so effective. Just look at how much freer Cuba has become since the embargo began. (Pardon the sarcasm.)

What can you say about a health care system that treats animals more quickly than humans?  Reports Macleans:

Dr. Danny Joffe is only half joking when he says that if he’d fallen asleep on the last day of vet school in Saskatoon and woken up some two decades later in his current workplace, he would not have believed it was an animal hospital. Joffe is one of 11 specialists at the C.A.R.E. Centre, a 28,000-sq.-foot palace of veterinary medicine built two years ago in Calgary by a consortium that owns 23 vet clinics and animal hospitals across British Columbia and Alberta. It has four operating theatres, a $100,000 CT machine, two ultrasound machines, a digital X-ray unit, an endoscopy centre, a lab and 16 examination rooms. Its intensive care unit boasts 20 cages and eight dog runs, staffed 24/7. “It’s just like an emergency centre at a tertiary care human hospital,” Joffe says.

There is almost no pet illness that can’t be treated here. For eye problems, C.A.R.E. provides ophthalmologists who perform cataract surgery. Orthopaedic surgeons do hip replacements or arthroscopy — minimally invasive surgery on joints. To treat cancer, a surprisingly common disease in dogs and cats, says Joffe, “Our oncologist can offer intricate chemotherapy protocols and our surgeons can do very extreme and elaborate surgeries, including mass removals, amputations and bone transplants from cadaver dogs.” As for MRIs, C.A.R.E. has a standing two appointments a week booked at a private human facility in the city. “For you or I it might be a several-month process,” says Joffe of getting an MRI. “We get it done in a week or less.”

The Washington Examiner has an editorial today titled “Environmentalism is not about the Environment.”  Indeed.  The title says it all.  When most Americans say they are environmentalists, they express the simple desire for clean air, clean water, and an appreciation for wildlife.  But today’s environmental movement is much more focused on expanding government controls and bureaucracy than anything else.  Much of what they advocate unnecessary and needlessly expensive.  The impact on freedom and the economy is far greater than most people realize.  If you doubt that, check out CEI’s research here and here on the topic.  We have also shown that markets are better than the government in providing environmental amenities.  If environmentalists are serious about protecting the environment, they’d begin to advocate free-market environmentalism rather than more government and bureaucracy.

The Washington Examiner has an interesting editorial today called “Environmentalism Isn’t About the Environment.”  It describes how environmental measures expand and metastasize government power in ways that have little to do with protecting the environment.  It points to a wetlands bill pending in Congress that would define every “prairie pothole,” ”sandflat,” or ”isolated basin” in America as a federally-regulated wetland that that cannot be developed or used without approval from federal bureaucrats under the Clean Water Act.

Very often, environmental measures backfire, harming the environment and causing tragedy, as CEI’s Iain Murray explains in detail in his best-seller, “The Really Inconvenient Truths: Seven Environmental Catastrophes Liberals Don’t Want You to Know About–Because They Helped Cause Them.”  

Even when environmentalists recognize rather than ignore the perverse consequences of government meddling in the name of the environment, it’s often too late to do anything about them.  Environmental groups now recognize that ethanol subsidies are causing devastating harm to the environment, and that past support for such subsidies by politicians aligned with environment groups, like Al Gore, was a huge mistake.  But those subsidies are now so-well entrenched, thanks to a legion of lobbyists, that they continue, despite mounting evidence that they are driving up food prices and thus contributing to worldwide hunger, starvation, riots, and political unrest, and rising criticism from poor countries.

In the Washington Examiner, Daniel Ballon and Lawrence McQuillan criticize a bill pending in Congress that would lead to credit card companies reducing their rebates to credit card holders.  It would restrict the fees the companies can contractually charge retailers to process payments from their cardholders, leaving them with less margin to pass on to consumers.  Right now, I receive up to 5 percent in rebates from my credit cards for the purchases I make, but if this bill passes, those rebates will surely fall, costing me more for gas and groceries.  Ballon and McQuillan point out that if the bill passes, it “will result in fewer cards, higher annual fees, rising interest rates and the end of rewards programs.”  CEI’s Ryan Radia discussed this bill earlier.

In the National Review, Timothy Lynch explains how Texas’s Child Protective Services ignored state law and common sense in seizing 465 children from members of a strange religious sect that advocates polygamy (FLDS).  Texas’s CPS, he says, overreached in many ways, treating lawful teenage marriages as sexual abuse, parents as guilty until proven innocent, and the sect’s religious teachings as emotional abuse per se.  CPS also interfered with parents’ right to counsel, he says.  As he notes, “A Texas appeals court ruled Thursday that Texas’s Child Protective Services (CPS) failed to justify the seizure of the very young children and teenage boys. The Court said there was simply ‘no evidence’ of immediate danger to them.”  Law professor Eugene Volokh gives the highlights of the court’s ruling and summarizes it here.

I earlier explained how Texas CPS violated the Constitution by seizing children without any showing of imminent harm.  In the absence of a serious risk of imminent harm, parents are entitled to a full judicial hearing at which the government must prove them guilty of abuse or neglect, before the government can seize their children.  That includes first giving parents an opportunity to present evidence defending themselves against abuse charges.

Allowing children to be seized even temporarily based on unfounded abuse allegations can have lasting consequences.  One court refused to return a child to her parents based heavily on the bond she  developed with her foster parents, even after the abuse allegation that triggered the seizure turned out to be false.  Moreover, even when parents later get their child back, the child may continue to experience devastating, long-lasting psychological harm as a result of abusive treatment in foster care and the trauma of separation from her parents. 

The federal government massively subsidizes corn-based ethanol production, even though it consumes as much energy as it generates, thus doing nothing to cut greenhouse gas emissions.  Yet the federal government imposes a tariff on imported ethanol that prevents costly ethanol mandates from being satisfied by less wasteful forms of ethanol production overseas.  In today’s Washington Post, Paul O’Connell criticizes the “U.S. tariff of 54 cents a gallon” that keeps imported sugar ethanol, which has a better “energy savings ratio” than corn ethanol, out of the U.S.   Environmental advocates like New York Mayor Michael Bloomberg have long made the same point, noting that ”corn ethanol does not yield more energy than it takes to produce, transport and use it,” unlike ethanol from some other sources, and that turning an essential food product like corn into fuel “will cause in increase in global food prices and lead to starvation deaths worldwide.”  Indeed, ethanol subsidies have already caused hunger, starvation, riots, and political unrest around the world, as well as considerable damage to the environment, such as soil erosion and deforestation.

Mose Americans realize that Washington is dysfunctional and perverse.  So is Washington, D.C.  The city has long been unfriendly to business, encouraging enterprises to locate in the suburbs.  Now the city fathers are upping business costs again by mandating paid family leave.  Such a policy is unfair to all employees except those who take leave, since it shifts rather than expands benefits.  And the law will further discourage job creation in the city.

Explains Carrie Lukas of the Independent Women’s Forum:

For the nation’s capital, it’s one step forward, another step back. D.C. has long been recognized as one of the nation’s least friendly business climates, but in recent years, officials have attempted to lure employers into the city limits. The results can be seen around the city. The latest evidence is Columbia Heights’s D.C. USA shopping complex, which features prominent retailing chains such as Target, Bed, Bath & Beyond, and Best Buy. These businesses not only bring new shopping opportunities to the neighborhood, but an estimated 1,200 new jobs, more than half of which will be filled by D.C. residents.

Yet while area residents were celebrating the opening of this new consumer paradise, the D.C. Council was busy discouraging other businesses from following D.C. USA’s lead. In March, the D.C. Council passed and the Mayor signed the Accrued Sick and Safe Leave Act, legislation to force employers to provide workers paid sick leave. Businesses with twenty-four or fewer employees will have to provide three days of paid sick leave, while those with more than one hundred employees will have to offer seven days.

 Most people naturally respond to this news by cheering the D.C. government: after all, who doesn’t recognize the need for workers to take time off due to illness? The problem with this reaction, however, is that it focuses solely on the recipients of the new benefit without considering the other side of the ledger: those who bear the costs and suffer from the mandate’s unintended consequences.

Consider what happens to a business if an employee uses paid leave. The job that person was hired to perform will go undone, another employee will have to pick up the slack, or the business will have to hire a temporary replacement worker. In any case, the employer’s costs will go up or productivity will go down. Smaller businesses, which tend to be more financially vulnerable than larger ones, are particularly affected. Large employers may shift work with relative ease, but a store with a handful of employees often cannot function when one worker doesn’t show up. The owner will have to hire a replacement while still paying the leave taker’s salary. Those additional costs will have to be made up for somewhere: prices may rise for consumers or perhaps employees will receive lower pay.

Many advocates of these types of mandates also lament stagnating wages. Yet mandated benefits contribute to slow growth in wages since they raise the total cost of employment. As of 2006, more than 30 percent of the average worker’s total compensation was paid as benefits.
 

 

If the last seven years have proved anything on Capitol Hill, it is that there are no fiscal conservatives in Washington.  The bipartisan desire to spend is overwhelming.

Consider the Farm Bill. It’s not obvious why farmers–and not, say writers or engineers–deserve to be subsidized by Uncle Sam.  But it’s crazy to raise crop supports when prices are rising.  Yet that’s what our spendthrift legislators are doing.

Editorializes the Wall Street Journal:

Since the last farm bill in 2002, the price of cotton is up 105%, soybeans 164%, corn 169% and wheat 256%. Yet when Mr. Bush proposed the genuine change of limiting farm welfare to those earning less than $200,000 a year, he was laughed out of town. The bill purports to limit subsidies to those earning a mere $750,000, but loopholes and spousal qualifications make it closer to $2.5 million. As Barack Obama likes to say, it’s time Washington worked for “the middle class,” which apparently includes millionaire corn and sugar farmers.

Another purported change is the arrival of “fiscal discipline,” in Nancy Pelosi’s favorite phrase from the 2006 campaign. Yet it turns out this farm extravaganza may bust federal budget targets even more than we thought a week ago. That’s because the new price supports — the guaranteed floor payments farmers receive for their crops — have been raised to match this year’s record prices.

The USDA reports that if crop prices fall from these highs to their norm over the next five years, farm payments will surge. For example, if corn prices return to $3.25 a bushel from today’s $6, farmers would get $10 billion a year in support payments. If bean prices fall to their norm, they’d get $4 billion. Thus, if farm prices stay high, consumers face higher grocery bills and farmers get rich. If farm prices fall, taxpayers kick in the difference and farmers still get rich.

Sugar producers also make out like Beltway bandits, receiving the difference between the world price of sugar, which is now $12 per pound, and the guaranteed price of about $21 per pound. That’s a roughly 75% subsidy for already wealthy cane growers and a nice payoff for the $3 million they contribute to House candidates each year.

It’s not clear why Congress even bothers debating legislation like this.  Why not simply give the keys to the Treasury to farmers and let them cart off as much money as they can carry?  Cut out the legislative middlemen!