January 2012

John Barnes at the Washington Policy Center (motto: “Improving Lives Through Market Solutions”) passes on a 3-video series about the fight over healthcare “reform” we’re all part of:

As our government considers a serious overhaul of our health care system and even a public insurance plan, it is essential that the public understands how more government involvement will impact accessibility, affordability, and quality. Under the direction of Dr. Roger Stark, a retired surgeon with over thirty years of medical experience, Washington Policy Center has launched its 2009 Federal Health Care Reform Project.

As part of this project, WPC created these three short, informative health care videos detailing the current state of health care in the U.S., Congress’ proposed reforms, and practical solutions to the health care crisis. Click on the images above to watch the videos. Health care reform is far too important of an issue to be settled outside of the public light.

Watch them here:

The Problem:

The Plan:

The Solution:

Russian President Dmitriy Medvedev has signed into law amendments that will bring increased penalties for price collusion and unfair competition. The new amendments will allow the authorities to bring unscrupulous businessmen and bureaucrats to justice. Government officials will be subject to disqualification and sufficiently large fines if they will restrict the movement of goods across the country. Section 178 contains a very harsh sanction – up to six years imprisonment for committing a crime in the area of restriction of competition. This is unprecedented measure for Russia but it is unlikely to work because of corruption among bureaucrats at all levels of government.

We’ve all heard it before: “Oh, capitalism may be better than some alternatives, but it is still a bad way to go.” This is a commonly held view by many people around the world, that although better than socialism, capitalism is not the best way to promote economic growth.

For advocates of the free market, this can be one of the most annoying things to hear. How could capitalism, the system of free enterprise that has created massive quantities of wealth and brought billions out of illness and poverty, be undesirable? It certainly wasn’t socialism or central planning that devised the Industrial Revolutions.

How then does one respond to those who are unwilling to fully accept that capitalism is the best economic system?

Thankfully, Dr. Peter Leeson, an associate professor at George Mason University, has come up with a great answer in his new paper entitled “Two Cheers for Capitalism”. In the paper Leeson argues that capitalism, as a path toward development, deserves three cheers (not the two that most people reluctantly give it). Professor Leeson, author of the new book The Invisible Hook: The Hidden Economics of Pirates, that capitalism is the best possible path for development for both economic growth and quality of life reasons.

Here is a key quote from the paper:

“My findings are straightforward. The two cheers for capitalism view is wrong. Although
many relationships in the social sciences are unclear, capitalism’s relationship to development
isn’t one of them. Unless one is ashamed of unprecedented increases in income, rising life
expectancy, greater education, and more political freedom, there’s no reason to be a milquetoast
defender of capitalism. This is what sprawling free markets have meant for countries that became
more capitalist over the last quarter century. On the other side, there’s no evidence that countries
that eschewed the global trend toward freer markets and embraced substantially greater state
control performed better on any of these indicators. On the contrary, they performed
demonstrably worse. I also find that the two cheers for capitalism variant that desires markets,
but “within reason,” is wrong. There is no evidence for a Lorenz curve-type relationship between
capitalism and development. Rather, this relationship is linear. Maximal capitalism begets
maximal development.”

While some of the data used isn’t perfect, the arguments put forth by Leeson all strongly suggest that capitalism does indeed deserve three full rousing cheers. Leeson too deserves three cheers as well, both for his highly readable and relevant paper, as well for the fact that today is his birthday. I was lucky enough to take a class of Leeson’s during my time at GMU and I can attest that he is both a gentleman and a scholar. So three cheers for both capitalism and Peter Leeson!

Today, Wall Street Journal reports that a Miami court has set meeting Friday between the IRS and UBS to look at where they are in settlement negotiations over the case of the IRS demanding that the Swiss bank turn over the names of more then 50,000 U.S. citizens alleged to be tax evaders.

As I have said in past posts on this issue (in which I have been admittedly hard on UBS-but with a purpose), and as UBS seems to now be reiterating, turning over those names would be in contradiction of  Switzerland’s banking privacy laws and its legal view of tax evasion.  Banks in Switzerland are not required to ignore their country’s banking secrecy laws simply because another nation requests them to do so.  This is a sticking point for the IRS, who is using the DoJ to try and get after UBS.  Another factor in the fight to get UBS to crack is the growing pressure from other nations and international NGOs like the Organization for Economic Cooperation and Development (OECD) with its agenda, and Financial Action Task Force (FATF) with its “retaliatory measures,” mentioned in earlier posts. These groups are using the straw men of money laundering and terrorism to force Swiss capitulation.  It has reached a point of absurdity.  Aside from the U.S. government’s attempts at intimidation, the German government even suggested placing Switzerland on the international blacklist.  I guess “Everybody Hates Switzerland” now, until they can get their hands on that money.

Of course, the average citzen is not concerned about the rights of those who can afford to have swiss bank accounts.  Although they should be.  This not only raises concerns about financial privacy, it also raises concerns about sovereignty, civil rights, and a host of other things.  A person’s financial records should be considered as sacred as their medical records.  However, we may soon be entering an era where both are collected and archived by the government.  Only a person who believes Stalin was an OK guy would think that was a good idea.

[youtube:http://www.youtube.com/watch?v=JQO84UjQ2Fg 285 234]

Four Senators have introduced a bill to ban texting while driving.

Texting while driving is both dumb and dangerous. But making it a crime won’t make people stop doing it. It will merely make more people into criminals. Besides, all you have to do to not get caught is keep your phone below your car’s windows and out of sight. The ban would be unenforceable.

Your host Richard Morrison welcomes back returning guest co-hosts Michelle Minton and Jeremy Lott for Episode 53 of the LibertyWeek podcast. We start with the strings attached to the bailout, Boston’s fight over FiOS, and the dangerous side effects of Obamacare. We then move on to a massive New Jersey corruption scandal, a lemon of a subsidy program and some heavily-armed Olympic News.

It looks like things may be moving – slowly — on the trade front.  The U. S. Trade Representative has published a notice in the Federal Register asking for comments on the pending U.S.-Korea Free Trade Agreement.

The United States Trade Representative (USTR) is assessing how and to what extent the free trade agreement (FTA) between the United States and the Republic of Korea (Korea) signed on June 30, 2007 makes progress in achieving the applicable purposes, policies, priorities, and objectives of the Bipartisan Trade Promotion Authority Act of 2002 (”TPA Act”) (19 U.S.C. 3801 note) as set out in section 2102 of the TPA Act and carries out the provisions of the May 10, 2007 Congressional-Executive Agreement on Trade Policy.

Comments are due September 15, 2009. And, of course, comments have to be compiled and evaluated.  Then, the implementing legislation for Congress to consider has to be submitted.  All this, of course, is happening in an environment of increased skepticism about trade, plus an overloaded Congressional agenda, with massive health care and energy bills, not to mention the restructuring of the financial system.

Here’s some information published by CEI on the U.S. Korea trade agreement.

Obama is backing an imperial presidency in Honduras. When Honduras removed its ex-president and would-be dictator, Obama demanded his reinstatement, even though he was removed on orders of the Honduras Supreme Court and replaced by Honduras’s elected Congress, with the backing of much of Honduran society. Obama argued that elected presidents have a right to continue ruling even if they violate their country’s constitution, and his assistant secretary of state argued that presidents should not be removed without elaborate “judicial process” (an argument at odds with our own Constitution’s provision for legislative impeachment, and Honduras’s constitutional provision automatically stripping presidents of their office if they even propose changes to constitutional term limits).

Now, Obama is showing his poor grasp of civics, constitutional law, and separation of powers by suggesting that Honduran legislators and judges lost their right to hold office when the Honduran ex-president was removed. That’s like saying that after Richard Nixon resigned in Watergate, all of his judicial appointees (including the 4 Supreme Court justices he appointed, such as Harry Blackmun and William Rehnquist) should have automatically lost their posts, and the entire Congress should have resigned. In an effort to intimidate Honduras’s legislature and courts, Obama has now had the state department rescind the visas of a Honduran Supreme Court justice, the leader of Honduras’s Congress, and its human-rights ombudsman, who had criticized human-rights abuses by the ex-president. State Department spokesman Ian Kelly justified the taking away of the visas by saying that “We don’t recognize Roberto Micheletti as the president of Honduras. We recognize Manuel Zelaya.”

But it should be obvious to anyone who knows anything that Congress and the Supreme Court are co-equal branches of government that do not lose their right to hold office merely because the president leaves his office. Presidents are not emperors. They are not the government, but merely part of it. Obama was not taught his bizarre theory of imperial power at Harvard Law School, which he and I both attended.

It’s difficult to say whether Obama is just being ignorant — as he was when he claimed in 2008 that America has 57 states — or whether he is willfully misreading the law in claiming that Honduras acted illegally, the way he has deceived the public through a long line of broken promises, such as his pledge to enact a “net spending cut,” which he broke on a big way with proposed budgets that will explode the national debt through $9.3 trillion in massively increased deficit spending.

Obama’s demand that Obama reinstate its would-be dictator has emboldened other elected leaders in Latin America to try to make themselves dictators. (Even the liberal Washington Post, which has not endorsed a Republican for president since 1952, admits that Obama has shown a “willful disregard of political oppression” by left-wing dictators in Latin America).

Obama state-department employees have called Honduras’s removal of its president a “coup,” and members of the press corps, who overwhelmingly voted for Obama, have mindlessly parroted this claim ever since without ever bothering to confront the reality that his removal was justified under stringent provisions of Honduras’s Constitution, such as Article 239, which bans presidents from serving if they even propose an end to term limits, and Article 272, which vests enforcement powers in the military to remove overreaching presidents (as many commentators have pointed out, including attorneys Octavio Sanchez, Miguel Estrada, and Dan Miller, former Assistant Secretary of State Kim Holmes, and the Wall Street Journal’s Mary Anastasia O’Grady).

But there was no “coup.” A coup is defined as the sudden, illegal removal of a legitimate government by a small group. The removal of Honduras’s president was supported by the entire Honduran Supreme Court, an almost unanimous Honduran Congress, and much of Honduran society. Honduras did not lose its government, but merely replaced an illegitimate part of it: its constitution-shredding president. And his removal from office (as opposed to his subsequent exile) was clearly legally justified.

The fact that Honduran soldiers carried out a court order to remove the president does not make it a “military coup.” The ex-president was replaced by a civilian, the Congressional speaker. The soldiers merely played the same role in enforcing a court order that U.S. marshals might in the United States (Honduras does not have such marshalls, and it is the military — not court bailiffs or marshals — which is vested with enforcement powers under Article 272 of the Honduras Constitution). (Even in the U.S., troops can end up enforcing court orders against powerful officials, such as the 1957 court order desegregating Little Rock’s public schools, which was defied by Arkansas’ racist governor).

While engaging in unjustified meddling overseas, Obama is trying to push through an ill-conceived health-care overhaul at home which one of his own advisers says will harm people with insurance while raising their taxes. CNN says Obamacare will take away 5 freedoms. It will also destroy many affordable health-care plans while breaking Obama’s campaign promises.

Statements of Ryan Young and Wayne Crews

Washington, D.C., July 29, 2009 – Today, Microsoft and Yahoo announced a ten-year partnership of their search businesses in order to better compete against Google. The Department of Justice, citing antitrust concerns, is likely to investigate the deal before allowing it to go through. Competitive Enterprise Institute technology policy experts Wayne Crews and Ryan Young argue that regulators can best serve consumer interests by leaving well enough alone.

Ryan Young, Fellow in Regulatory Studies:

“What is there to investigate? Microsoft and Yahoo are trying to outcompete Google. To succeed, they will need to put together the best search engine they can. The firms believe their announced partnership will help them achieve that goal. They should be allowed to try – their own money is at stake if they fail. Either way, Internet users stand to benefit. Bing and Yahoo Search should improve from the proposed partnership, which will also force Google to make its own search engine better, lest it be left behind. This is how a competitive, contestable market works. The goal of antitrust policy is to benefit consumer welfare, but there is nothing regulators can do to make an already fiercely competitive market even more so.”

Wayne Crews, Vice President for Policy and Director of Technology Studies:

“This administration is already suspicious of allegedly ‘dominant’ firms in the high tech sector – but consumers are better off when regulators let markets evolve naturally, rather than guiding them from above. The Microsoft-Yahoo alliance has the potential to offer great value to consumers. The dangers of arbitrarily blocking such voluntary business arrangements, or needlessly delaying them, are severe. Regulatory intervention in the high-tech sector thwarts the natural evolution of the market. Worse, it distorts the response of competitors. Antitrust investigations steer the market in unnatural directions, creating instabilities in entire industry sectors.

“Consumers have more to fear from government bureaucracies that have the power to stop progress cold than they do from free enterprise looking to create the next big thing. Should the Microsoft-Yahoo partnership not pan out, rivals, partners, consumers, investors, advertisers, and even global competitors are perfectly capable of dealing with any challenges to competition. Consumers stand to lose if Washington gets involved.”