January 2012

I’ve been listening to some of President Obama’s press conference tonight, and ran across an interesting blog, called Doctors On Strike. It’s great for some laughs, but the undertone is serious. It’s not a good idea to make the lives of medical professionals a living hell. Who do politicians think they are, really? I mean, honestly?

What kind of doctors would the Obama administration’s system create? Who will go into medicine in years hence? I’ll certainly advise my children, should they become medically inclined, to be veterinarians, cosmetic surgeons that refuse “insurance” (so-called)–anything but a doctor tethered to the Healthcare Hairball, should it actually be enacted. And the President talked about health insurance companies–as if there would or could actually be such a thing in the corrupted system he intends to impose. What insurance companies? I mean, honestly? Who would ever start an actual health insurance company again?

Doctors went on strike in Ayn Rand’s Atlas Shrugged, and the warning, albeit fictional, bears attention. The fictional brain surgeon in Atlas Shrugged is Dr. Thomas Hendricks. When asked why he went on “strike” against collectivized medicine, answered this way:

I have often wondered at the smugness with which people assert their right to enslave me, to control my work, to force my will, to violate my conscience, to stifle my mind–yet what is it that they expect to depend on, when they lie on an operating table under my hands? Let them discover the kind of doctors that their system will now produce. Let them discover, in their operating rooms and hospital wards, that it is not safe to place their lives in the hands of a man whose life they have throttled. It is not safe, if he is the sort of man who resents it–and still less safe, if he is the sort who doesn’t.

Hank Cox over at the Shopfloor blog at the National Association of Manufacturers reports that we’ve lost the marketing wizard behind WD-40, John Barry

In his latest movie, “Gran Torino,” Clint Eastwood advises a young man of foreign extraction that you can fix anything around the house with duct tape. Well, actually you can fix anything around the house with duct tape — and a can of WD-40.

We almost missed the obituary two weeks ago of John S. Barry, the man who gave us WD-40, the ubiquitous spray found in about 80 percent of American homes with at least 2000 uses – including preventing squirrels from climbing into birdhouses, lubricating tuba valves, cleaning ostrich eggs and freeing tongues stuck to frozen metal.

The product was actually invented by the Rocket Chemical Company in 1953 for the aerospace industry. Barry took over the company in 1969 and proceeded to make WD-40 a household word. He spruced up the packaging, sent 10,000 free samples every month to soldiers in Vietnam to keep their weapons dry, and pushed to get WD-40 in supermarkets, of all places.

John D. Barry, a true marketing genius, was 84 when he died.

Louisiana Governor Bobby Jindal has an op-ed in today’s Wall Street Journal providing a succinct critique of the Democrats’ health care plan and offering recommendations for a more market-oriented approach. Here are the concepts for reform he endorses:

  • Consumer choice guided by transparency – an integrated disease-management system.
  • Consumers’ financially invested in better health decisions.
  • Medical lawsuit reform to reduce need for costly defensive medicine.
  • Insurance reform – for portability, with reinsurance, high-risk pools, and other mechanisms.
  • Pooling for small businesses, the self-employed, churches and others.
  • Payment for performance, not activity – with integrated networks of care.
  • Refundable tax credits for low-income working Americans without health insurance.

While those recommendations are fine, they could go deeper and incorporate more free market suggestions, as outlined by Susanne Lomatch.  Here is a synopsis – heavily truncated – of those:

– Reform or repeal state health insurance mandates.

– Revise or repeal state health compliance and occupational requirements to allow nurse practitioners to perform greater number of physician tasks.

– Comprehensively revise Medicare/Medicaid and private insurance reimbursement policy to focus on catastrophic payouts.

– Review laws that prevent employers or insurance companies from offering low-risk pools.

– Encourage companies through revisions of state laws to consider ‘self-insurance’ for their employee groups.

Jindal has strong credentials in health care and its reform, starting with his thesis as a Rhodes scholar at Oxford, continuing with his early job in taking charge of Louisiana’s health care system, then serving as a top official at the Department of Health and Human Services and on commissions to look at Medicare financing, before getting elected to the U.S. Congress and serving as governor. One would hope he would have some clout on this issue where he has demonstrable expertise and would overcome the effects of his feeble performance for the Republicans in countering Barack Obama’s first address to Congress.

If you ship live animals via the USPS’s Express Mail Service and it takes three days or more, you may be eligible for a refund, according to a new rule on pages 36,116-36,118 of the 2009 Federal Register.

Nicaragua’s corrupt, authoritarian president Daniel Ortega is now pushing a change to his country’s constitution to extend his rule. Ortega is a former communist backed by Venezuela’s anti-American strongman Hugo Chavez. He uses vote fraud, arbitrary arrests, and intimidation to expand and perpetuate his power.

Ortega has been emboldened by the Obama Administration’s demand that neighboring Honduras permit the return of its corrupt, bullying ex-president Mel Zelaya, who was removed for similarly seeking to perpetuate his rule.

Honduras’s Zelaya was lawfully removed from office by soldiers acting on orders of his country’s Supreme Court (and replaced by the speaker of Honduras’s Congress) after he, too, sought to rewrite his country’s constitution to allow him to seek another term in office. (Honduras has had such a problem over the years of corrupt presidents using patronage, fraud, and intimidation to get reelected over and over again that Article 239 of its current Constitution immediately strips presidents of their office if they even propose ending term limits, and Article 272 of its Constitution authorizes the military to remove presidents who seek to evade term limits).

Zelaya used money from Venezuela’s dictator and blackmail to try to extend his rule, illegally cutting off funds to municipalities whose mayors who refused to back his referendum to rewrite Honduras’s Constitution to extend Zelaya’s tenure in office. Zelaya was planning vote fraud on a vast scale.

For Honduras to allow the return of Zelaya would violate Article 239 of its Constitution, which bans would-be term limit violators from holding office, but it may allow his return anyway if his power is reduced, since the Obama Administration is blackmailing Honduras with threats of trade sanctions (America buys most of Honduras’s exports) and aid cut-offs (Honduras is one of the poorest countries in the Western Hemisphere, and its budget is heavily dependent on foreign aid). Never mind that Honduras’s Congress, Supreme Court, church leaders, and other institutions overwhelmingly don’t want him back.

Even liberal legal scholars admit that Zelaya’s removal from office was technically legal, although, strangely, they don’t like it for ideological reasons (they root for Zelaya because he made left-wing speeches and allied himself with Venezuela’s socialist ruler Hugo Chavez; but they ignore the fact that Zelaya, a wealthy landowner, looted his country’s treasury and gave millions to his wealthy landowner cronies). But amazingly enough, they are now demonizing GOP Senators as ignorant hicks for citing the same facts about Honduran law that they did.

The liberal Daily Kos diarist Litho was one of the first people to note that the Honduran military’s removal of Zelaya from office was “legal” in a “technical sense” under Article 272 of the Honduran Constitution. But when 17 U.S. Senators later noted that the removal was seemingly legal (and asked the Obama Administration to stop trying to force Honduras to reinstate its constitution-shredding ex-president), Litho attacked this argument as being “evidence-free.” Apparently, a straightforward description of the law suddenly becomes reactionary nonsense the moment a GOP senator agrees with it. (Many others have explained why the removal was legal, including the prominent Honduran-American appellate lawyer Miguel Estrada, Honduran lawyer Octavio Paz, former assistant Secretary of State Kim Holmes, and me).

Litho now deceptively claims that the removal is now illegal even according to the Honduran military and Supreme Court. But as the stories Litho links to make clear (and Litho knows perfectly well), the military and Supreme Court were saying that the EXILE of Zelaya was illegal, not that his removal from OFFICE was illegal. (Zelaya’s removal from office was perfectly legal, but his subsequent exile may well have been illegal under Article 81 of the Honduras Constitution, much as President Lincoln’s exiling of the pro-slavery Congressman Clem Vallandigham during the Civil War was technically illegal). In short, as Miguel Estrada notes, while Zelaya may have an “immigration beef” with his country, he has no right to resume being president, and Obama has no right to force his return to office.

The real basis of Litho’s — and Obama’s — desire to reinstate Zelaya is the belief that Honduras’s Constitution is an outdated “artifact” and thus simply should not be followed when it conflicts with the latest ideological fads. Much as some liberal legal scholars argue that certain constitutional provisions should be ignored because they were drafted by dead white males, Litho argues that even though the Honduran “Congress, the courts, and the Armed Forces behaved in ways that are in fact constitutional,” the “Honduran constitution” should be ignored because it conflicts with “the norms of the international community.” The irony is that the same arguments could be made against the U.S. Constitution, which is almost 200 years older than the 1982 Honduran Constitution. The U.S. Constitution contains many provisions that are historical “artifacts,” such as its electoral college system for selecting presidents, which conflicts with the international norm of selecting political leaders purely by popular vote. Much of Britain’s system of government was fashioned by a Parliament that was once elected by a tiny percentage of its population (only wealthy male landowners and merchants could vote).

To justify meddling in Honduras, the Obama Administration has made radical arguments at odds with our own constitution, like claiming that a “universal principle” gives presidents the right to keep ruling even if they violate the Constitution (explain that to Richard Nixon), and that government officials have a right to extensive “judicial process” before removal (explain that to the many elected officials who can be recalled from office at any time, like California’s governor, or who can be impeached by Congress without judicial intervention, like the President).

At the same time, Obama has deliberately ignored violations of democracy and constitutional rights by left-wing dictators in Latin America, leading even the liberal Washington Post, which has not endorsed a Republican for president since 1952, to accuse Obama of showing a “willful disregard of political oppression” by left-wing dictators.

In response to Obama’s pressure on Honduras to put Zelaya back in power, Senator Jim DeMint has placed a temporary hold on the nomination of Arturo Valenzuela to be Assistant Secretary of State for Western Hemispheric Affairs. Valenzuela has a soft-spot for Anti-American dictators, reflecting his reputation as a loud defender of Venezuelan dictator Chavez’s terrible record on freedom of the press.

The wire services like CNN and Reuters (whose reporters have long romanticized left-wing dictators overseas) continually refer to Honduras’s removal of its president as a “coup,” even while noting that his removal was ordered by the country’s supreme court. But if it was constitutional, it was by definition not a coup. As Wikipedia notes, “A coup d’état . . . or coup for short, is the sudden, unconstitutional deposition of a legitimate government, by a small group of the State Establishment — usually the military — to replace the deposed government with another, either civil or military.”

Honduras’s president was constitutionally removed pursuant to Articles 239 and 272 of the Honduras Constitution. Moreover, he was removed not by a “small group,” but with the unanimous support of the Honduras Supreme Court, the almost-unanimous support of Honduras’s Congress, and “much of Honduran society. For each of these separate reasons, it was not a coup.

The fact that soldiers removed him on orders from the supreme court does not make it a “coup” anymore than the English Parliament’s use of soldiers to replace and exile King James II made that a coup. The use of soldiers to enforce court orders is not unknown even in the U.S., where troops were used to enforce a court’s desegregation order in 1957 in Little Rock, Arkansas, against the state’s governor. In Honduras, troops perform many functions performed by civil police in the U.S., like safeguarding the polls. And Honduras does not have the kind of court police who might carry out court orders in the U.S., like U.S. Marshalls. (Even in the U.S., if a president were impeached and refused to leave office, the military would probably be needed to dislodge him. The more powerful the official, the more powerful the force needed to remove him, and it is absurd to expect a president’s removal to be enforced by a couple of pot-bellied U.S. marshalls).

Obama is repeating the foreign policy mistakes of the Carter Administration, which likewise meddled in the internal affairs of foreign countries to promote left-wing dictators and strongmen, like Zimbabwe’s Robert Mugabe. Mugabe blocked international assistance to his malnourished subjects, who died in droves in a cholera epidemic that Mugabe concealed and claimed did not exist.

It was Jimmy Carter who paved the way for Mugabe’s blood-soaked dictatorship, which turned Zimbabwe, once a prosperous breadbasket, into one of the world’s poorest and hungriest countries. Dissidents’ wives and children are tortured and murdered, orphans are beaten, schools are turned into torture chambers, aid agencies that once fed thousands of starving people were kicked out of the country, and a cholera epidemic rages across the country, where life expectancy has plunged from around 60 years to less than 40.

When Zimbabwean voters overwhelmingly elected a racial-reconciliation government headed by the black bishop Abel Muzorewa in 1979, to replace the white-only regime that had governed the country, the U.S. Senate unanimously voted to recommend an end to international sanctions against the new government, which was starved of funds and facing a bloody guerilla war led by Marxists like Mugabe, who was supported by North Korea. Carter ignored the vote, maintained sanctions against the new government, and supported Mugabe. His U.N. Ambassador, Andrew Young, effusively praised Mugabe, who had killed people simply for voting, saying that the only thing that bothered him about Mugabe was that he was “so damn incorruptible.”

Aided by U.S. sanctions, Mugabe soon took over the country, jailing Bishop Muzorewa. His North Korean-trained security forces then killed perhaps 25,000 members of the minority Ndebele tribe, forcing torture victims to sing praises to Mugabe even as they were savagely tortured, and forcing people to torture their own family members, sometimes to death. Guilty white liberals, who had lionized Mugabe as a saintly opponent of racism and representative of black Zimbabweans, did not know what to make of this, and either remained silent, or kept praising him. Mugabe’s government received billions of dollars in aid, which finally stopped after Mugabe destroyed his country’s economy by seizing the country’s white-owned commercial farms and giving them to his incompetent political cronies. More recently, Mugabe so mismanaged his country’s crumbling economy and infrastructure that an easily-preventable cholera epidemic broke out, killing thousands.

During his presidency, Carter was blind to Mugabe’s faults because he saw Mugabe through a prism of racial guilt, seeing a Third-World post-colonial conflict as a reenactment of the U.S. civil-rights movement.

Obama made a mistake of the same kind when he went to Kenya in 2006 to campaign for the unscrupulous left-wing demagogue Raila Odinga against the pro-Western, democratically-elected government of President Mwai Kibaki. Odinga, a Luo tribesman, fanned the flames of ethnic hatred by milking the resentment of many of Kenya’s tribes against President Kibaki’s relatively-prosperous Kikuyu tribe. (The tribes did have legitimate grievances over the corruption of the Kibaki government, which continued many of the corrupt practices of his precedessor).

(The subsequent election, which Kibaki was declared to have won after likely election fraud, led to a violent ethnic conflict, including ethnic cleansing by Odinga supporters, that ended only when Kibaki appointed Odinga Prime Minister and ceded to him much of his presidential powers. Today, Kibaki and Odinga are jointly looting the Kenyan treasury to enrich themselves and their supporters).

Obama apparently saw his meddling in the politics of another country as righting past racial wrongs, since Kibaki’s Kikuyu have historically fared better than Odinga’s economically-backward Luo tribe, which counted Obama’s father as a member. But Kenya is not America during the civil-rights movement, and it was foolhardy for Obama to meddle in African politics, just as it was foolhardy for Carter to do so three decades earlier in Zimbabawe. Fortunately, the man Obama supported in Kenya (Odinga) does not appear to be as evil as the man Carter supported (Mugabe).

More restraint is in order when it comes to the Obama administrations intent to escalate “antitrust” enforcement against business and enterprise in America.

A skeptical interpretation of antitrust’s realities—up to and including recent campaigns targeting Intel, Google, XM-Sirius; and earlier campaigns against Microsoft and the AOL Time Warner merger, as well as rejected mergers like Echostar/DirecTV—is that antitrust often advances the well being of various species of political predators rather than consumers.

Antitrust is a form of economic regulation. And like all economic regulation, it transfers wealth from somebody to somebody else, often in response to special-interest urging. Partly in recognition of such shortcomings, many economic sectors like transportation and telecommunications were (partly) deregulated and liberalized during the last quarter of the 20th century. But antitrust regulation typically gets a pass. Even in the “new economy,” this century-old smokestack era law is used to justify constraints and conditions imposed on vigorously competitive modern companies. Antitrust is wrongly seen as being in the public interest, as having a superior role to play in policing markets relative to the alternatives.

In antitrust cases the targeted company’s rivals have a direct financial, as opposed to spiritual, interest in the outcome. Appeals to antitrust as a public interest law do not change the fact that private motives of rivals, and even ambitious enforcers, are not simply lurking in the background, but running the show. The idea that antitrust helps consumers and that it has a role to play in the new economy deserves reexamination and challenge.

Under antitrust law, a laundry list of business practices (tying, bundling, discrimination, exclusive deals, and so on) are regarded suspiciously, some outlawed altogether. But business transactions are fundamentally voluntary, non-coercive dealings—unlike the forced antitrust interventions that rivals often seek. From this fresh perspective, one finds that even the most “despised” business behaviors—even collusion and mega-mergers—can be pro-competitive and pro-consumer. To the extent antitrust regulation strikes down practices that have misunderstood or ignored efficiency justifications, especially in an information-based economy, individuals and society are made unnecessarily poorer.

The list of vilified business practices is long, but needn’t be, and we often try to explain why. If anyone cares about economic recovery and jobs, today’s aim should be to “deregulate to stimulate,” so a list of vilified trustbuster practices woould be far more advantageous to consumers.

There’s a great column in today’s Washington Times by economist Richard Rahn on the destructive culture that makes Washingtonians sell out their principles in order to be “accepted” by those in powers:

“Washingtonosis(n): a disease most often found in people working within three miles of the U.S. Capitol building in Washington, … It tends to infect elected officials, government bureaucrats, those working in the media, “government relations specialists,” association executives and even top corporate executives.
Symptoms include an overwhelming desire to associate and be seen with those in power or those perceived to have power and/or fame. Those infected tend to lose judgment, values, principles and sense of honesty as well as common sense. They say silly things like, ‘I will vote for (or support) this (1,000-page) bill because it is absolutely necessary to protect the American people and we must do it now’ — having never read the bill, having only a vague idea of its provisions, having no idea whether it will do more good or harm and having no idea of what a billion dollars is, let alone a trillion dollars.”

This explains, says Rahn, why groups like the American Medical Association have endorsed the House health care reform bill and why, back in 1993, the U.S. Chamber of Commerce endorsed the Clinton health reform plan, despite the strong opposition of both organizations’ members.  The Washington representatives hired “to help protect” businesses and other organizations “from destructive government actions,” try to befriend those in power, but then too often find it “easier and more psychologically comfortable to pressure the business to accept the policies of those in government rather than vice versa.”

It’s definitely worth reading the whole article.

Alexander Hamilton and the doctrine of discretionary powers triumphed during the Constitution’s ratification debates (cemented by the “necessary and proper” clause), and over time that’s bestowed upon us a central government that does pretty well what it pleases. Today that means unbounded spending and “stimulus,” proposed “cap and tax” on the precious energy we need, and, most immediately, demands for centrally managed health care. So much for the “silken bands of mild government” envisioned during the U.S. colonial era.

NY Governor George Clinton, appealing to the public as “Cato” on October 11, 1787, wrote the passage below in opposition to Alexander Hamilton’s vision of centralized government and the arrogance of the Federalists. Hamilton had written earlier under the unfortunate pseudonym “Caesar.”

Is not your indignation roused at this absolute, imperious style? For what did you open the veins of your citizens and expend their treasure? For what did you throw off the yoke of Britain and call yourselves independent? Was it from a disposition fond of change, or to procure new masters?—if those were your motives, you have reward before you—go, retire into silent obscurity, and kiss the rod that scourges you, bury the prospects you had in store, that you and your posterity would participate in the blessings of freedom, and the employments of your country—let the rich and insolent alone be your rulers. …. But if you had nobler views, …are you now to be derided and insulted? Is the power of thinking, on the only subject important to you, to be taken away? And if per chance you should happen to differ from Caesar, are you to have Caesar’s principles crammed down your throats with an army? God forbid!

Wonder what he’d write today.

Here’s a letter I recently sent to The Wall Street Journal:

July 20, 2009

Editor, The Wall Street Journal
200 Liberty Street
New York, NY 10281

To the Editor:

Amy Schatz’s article “New FCC Chairman’s Agenda Includes Broader Internet Access, More Transparency” (Corporate News, July 20) is most revealing. Chairman Genachowski seems to believe that forcing companies to share proprietary networks with their competitors would not reduce the incentive to build and improve such networks.

Just as puzzling, AT&T’s exclusive deal to provide service for Apple’s iPhone has come under scrutiny on anti-competitive grounds. This exclusive arrangement has encouraged competitors to come up with new and better devices of their own; thirty attempts have already hit the market. Competition is alive and well.

Chairman Genachowski is right that the Internet has been “the most successful driver of economic growth” in recent years. Why, then, pursue an agenda that would discourage investment in wired and wireless networks?

Ryan Young
Fellow in Regulatory Studies
Competitive Enterprise Institute
Washington

Listening to President Barack Obama and other top Democrats on the subject of health care, one could be forgiven for thinking commercial medicine itself is on the verge of collapse, and that most of us soon will be completely unable to access decent medical treatment.  In response to criticisms from GOP lawmakers and gloomy CBO projections, Obama re-emphasized what he insists is a need for immediate, drastic reform.  He dismissed the illumination of the fiscal insanity of his prized health care plan as the “politics of delay and defeat” and “politics of the moment” and said, “The need for reform is urgent and it is indisputable.”

It is impossible to arrive at the conclusions Obama apparently has reached on health care reform without blanking out reality and ignoring a host of contradictions.  Sure, health care is expensive.  How did it get so costly?  Blank-out.  Whose responsibility is it to provide health insurance?  Blank-out.  Who will pay for this massive overhaul?  Blank-out.  How will this legislation accomplish its stated goals?  Blank-out.  How have similar programs in other countries fared?  Blank-out.  What incentives does government have to provide and maintain quality health care?  Blank-out.  Whose “need” is really served by this behemoth of a bill?  Blank-out.  What does the bill even say?  Blank-out.

Still, even Obama recognizes that time is against him.  With his approval ratings falling, his stimulus package failing, the ugly details of the bill leaking out, and the economy already suffering enough, he knows that it’s now or never.  That is why he is determined to convince the country that without major action by the great and glorious State, health care costs will climb forever, eventually pricing everyone out of affordable care.  Never mind the fact that costs cannot rise out of consumers’ reach without bankrupting service providers.  Blank that out, too.

Former President George W. Bush was roundly criticized for employing the “politics of fear” to expand the police powers of the executive branch.  During his administration, terrorism was the great goblin to be fended off by our benevolent bureaucracy.  If the government did not get greater surveillance and detention powers, it was reasoned, terrorists could execute another massive attack, killing thousands or even millions of Americans.  We were urged to be vigilant and trust increasingly powerful law enforcement authorities to guard against evil outsiders sneaking in and attacking us once again.  Stand with your country, or the terrorists will win.

The politics of fear are even more pronounced under the new administration, and arguably more insidious.  Our sworn enemy during the Bush years at least was tangible and defined, and fighting it was basically a matter of fulfilling one of the few proper functions of government:  defending the homeland.  In the age of Obama, the enemy is privation itself–invisible, yet ever-present; undefined, yet understood and feared by all; not a prescribed province of government activity, yet action on which is demanded and welcomed by a fear-stricken populace.  To fight this enemy, we are presented with an ultimatum:  turn choice in health care over to the government, or risk losing medical coverage for our families.  We are asked to grant the state a new level of authority, the gravity of which is surpassed only by its ambiguity.  A 1,018-page bill, rammed through with little debate and against all informed judgment?  So much for that transparency we were promised.

The urgency Obama conveys in his push for universal health care coverage reflects his own concerns about his dwindling political capital, not the dangers of rising health care costs.  He knows as well as Congress does that the more time we have to examine the bill and consider the veracity of the claims made to justify it, the more likely we are to hold him accountable for the unprecedented and unacceptable power grab this really is.