Your host Richard Morrison welcomes returning guest co-host Jeremy Lott of the Capital Research Center and special guest Sean Higgins of Investor’s Business Daily for Episode 58 of the LibertyWeek podcast. We begin with a revolt against congressional incumbency, wicked and foolish climate policy and a political sea change in the land of the rising sun. We continue with a technology news interview with Ryan Radia and finish with some fiscally sound Olympic News.
January 2012
One of the oddities of U.S. history is that Herbert Hoover is regarded as a free-market president. He grew federal spending by 52% in just four years. Engaged in massive deficit spending. Created the Federal Home Loan Bank. And the Reconstruction Finance Corporation. Signed the Smoot-Hawley tariffs into law. And the Agricultural Marketing Act. And so on. Free-market, he was not.
The Hoover myth is showing some cracks, fortunately. Where most civics textbooks would blame Hoover’s laissez-faire policies for the Great Depression, a new paper by UCLA’s Lee Ohanian fingers Hoover’s labor market interventions.
I’m personally convinced the Depression was more of a monetary phenomenon than a fiscal one. But Ohanian is surely right that Hoover’s dictating to companies what wages shall pay their workers was a net negative for the economy.
It’s certainly possible to blame Hoover’s policies for the Great Depression. Just not on the grounds that those policies were free-market. People shouldn’t have to read obscure academic journals to find that out.
A politician wasting taxpayers’ money is generally not surprising. A congressman spending nearly $13,000 on a telephone town hall meeting, though, certainly is.
Last week Representative Ron Klein (D-Fla.) spent $12,964 of federal money to hold a town hall meeting on health care reform by way of a conference call. The Palm Beach Post reported that the call lasted approximately 70 minutes and had 6,350 listeners. Some have suggested that one of the reasons that Klein held the meeting over the phone was to avoid anti-socialized health care crashers.
This isn’t the first time Klein’s wasteful spending has graced the pages of CEI. Rep. Klein is famous for his co-sponsoring of the Homeowners’ Defense Act, a bill that would promise federal money for state-run insurers in the event of catastrophes like hurricanes. CEI’s Center for Risk, Regulation, and Markets refers to the bill as the Beach House Bailout bill, saying that the legislation would make the whole country pay to subsidize the insurance of those living in riskier areas like Florida.
In Virginia, state law requires hearing aids to be calibrated at least annually. Records must be kept for three years.
CEI Weekly is a compilation of articles and blog posts from CEI’s fellows and associates sent out via e-mail every Friday. Also included in the Weekly newsletter is a brief description of CEI’s weekly podcast and a feature on a major CEI breakthrough made during the week. To sign up for CEI Weekly, go to http://cei.org/newsletters.
>CEI Weekly
August 28, 2009
>>EPA contemplates shutting down the NCEE, where whistleblower, Alan Carlin, worked.
>Upon learning of the news, CEI published a news release and Sam Kazman wrote a blog emphasizing the need for NCEE
>A Detroit News editorial recaps on the EPA cover-up of Carlin’s report.
>An editorial in the Washington Times writes on the contradiction that will be created by the Obama Administration if it marginalizes the NCEE because of Carlin’s whistle blowing.
>>Shaping the Debate
Labeling Won’t Make Water Safer
Angela Logomasini’s Op-ed in the Detroit News
Nanotechnology: Innovation vs. Corporate Welfare
Ryan Young’s Article in the Washington Examiner Opinion Zone
NFL Should Stop Cracking Down on Sports Betting
Michelle Minton’s Letter in USA Today
Anger Over UK Quango’s Global Green Campaign
Iain Murray’s Quotation in the Daily Mail
FCC Votes to Assess Wireless Innovation and Competition
Ryan Radia’s Quotation in TWICE.com
>>Best of the Blogs
Ted Kennedy’s Deregulatory Legacy on Airlines and Trucking
by John Berlau
For a brief, shining moment, in the mid to late 1970s, Kennedy viewed smaller government as the most compassionate answer in one area of economic life: transportation. Kennedy was the prime mover in Congress behind the airline and trucking deregulation bills that were signed by President Jimmy Carter.
Regulation of the Day 41: The Color of Beer Cans
by Ryan Young
“Having already solved all of the country’s economic problems, the Federal Trade Commission now has time to threaten to step in and stop Budweiser from selling cans of Bud Light with college sports team colors on the labels.”
Elaine Chao: Union Transparency “More Important than Beck;” EFCA “Terrible”
by Ivan Osorio
Former Labor Secretary Elaine Chao described the union transparency requirements introduced during the Bush administration as “more important than Beck.”. . . Under Beck, workers who are required to pay for union representation may reclaim the portion of their dues that are not used for representation purposes.
>>LibertyWeek Podcast
Episode 57: The Scandal That Wouldn’t Die
In episode 57, we start with Blue Dogs and health care legislation, cash for clunkers running on fumes, and AT&T’s response to an iPhone controversy. We continue on with the scandal that wouldn’t die and the architectural historian’s version of Olympic News.
>>Support CEI
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Charles Huang
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Competitive Enterprise Institute
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This story just hit the Drudge Report’s front page. Declan McCullagh at CNET writes today about the latest revision of S.773, a bill that would give the president “emergency control” of the internet in case of a “cybersecurity emergency.” Wayne Crews, CEI Vice President for Policy, released a statement on the naming of the cybersecurity chief and wrote an article on this back in May. See an excerpt below:
Policy makers should avoid collectivizing and centralizing risk management, especially in frontier industries like information technology. Yes, we need government-backed “police forces” to protect private networks and infrastructure, but we also need the “barbed wire” and “door locks” which private companies continuously compete with each other to improve. When government overrules market competition for information/electronic security, it creates barriers to innovative private security solutions. We become less secure, not more.
Some reports indicate that the administration and Congress are seeking government authority over private networks-like power grids and computer networks-in the event of breaches. The very term “cyber” at once means everything and therefore nothing: American telecommunications, the power grid; virtually anything networked to some other computer is fair game to a new czar. The dominant tenor of the cybersecurity debate today is toward greater federal control over private infrastructure.
Washington has a proper role. It entails protecting government’s own networks and setting internal security standards, not regulating private networks. It involves arresting computer criminals and avoiding creating threats to data security in the form of data retention mandates, national ID schemes, proposals to re-regulate encryption, and czars that set terms for all they survey.
Security is an industry, and industries-and abstract concepts like “technology”-do not need czars in Washington. Innovation in information security and privacy protection do not flow from D.C. Rather, a government tech czar would likely grow in “stature” as a target for lobbyists. A federal technology chief could all too easily become an agent for establishing government authority over frontier technologies.
Both suppliers and customers increasingly demand better security from all firms. Improving private incentives for information sharing is at least as important as greater government coordination to ensure security and critical infrastructure protection. That job will entail liberalizing critical infrastructure assets-like telecommunications and electricity networks-and relaxing antitrust constraints so firms can enhance reliability through the kind of “partial mergers” that are anathema to today’s antitrust enforcers.
Private cybersecurity initiatives will gradually move us toward thriving liability and insurance markets for cutting-edge sectors. Heavy-handed cyber-czar gestures and legislation cannot address the lack of authentication and inability to exclude bad actors that is at the root of today’s cybersecurity problems.
Like everything else in the market, security technologies-from biometric identifiers to firewalls to encrypted databases-and cybersecurity services-from consulting to liability insurance to network monitoring-benefit from competition. Corporate information and security officers deal with cybersecurity concerns every day. It’s not clear what government could really fix-but it could break a lot.
See the statement release here.
The EPA whistleblower saga took a new turn this week with a report that EPA was considering shutting down the agency unit in which Dr. Alan Carlin works. Dr. Carlin is the senior EPA analyst who authored a 100-page study last March, which severely criticized the scientific basis for the agency’s position on global warming. CEI broke the story in late June, when it unveiled a series of emails to Dr. Carlin from his boss, stating that his study would not be disclosed, and that Dr. Carlin was to stop working on global warming issues, because criticizing EPA’s position would only cause trouble.
Dr. Carlin works in EPA’s National Center for Environmental Economics (NCEE), whose function is, in its words, “analyzing the economic and health impacts of environmental regulations and policies, and … informing important policy decisions with sound economics and other sciences.” EPA has long been criticized for the tunnel-vision, cost-be-damned nature of many of its policies. (See, for example, Supreme Court Justice Stephen Breyer’s 1995 book, Breaking the Vicious Circle: Toward Effective Risk Regulation, written before he joined the court.) Economists are the most likely professionals within EPA to examine the real-world effects of its policies. For that reason, the NCEE is potentially a major restraining force on the agency’s out-of-this-world regulatory ambitions. Wouldn’t it be great for EPA to get this office out of the way?
Hopefully, the publicity and scrutiny that Dr. Carlin’s report has received since it became public will carry over to EPA’s plans for NCEE, and this agency, with its hollow commitment to scientific integrity and transparency, won’t get its wish.