David Boaz

President Obama’s real czar, “pay czar” Ken Feinberg, who has real power, brushes aside such claims even as he prepares to issue his Gosplan-style edicts on future and even past pay agreements:

The Obama administration’s pay czar says negotiations over executive compensation with the seven companies that received the biggest federal bailouts have been “a consensual process’’ – not a matter of forcing decisions on them.

“I’m hoping I won’t be required to simply make a determination over company objections,’’ veteran Washington attorney Kenneth Feinberg told the Chicago Bar Association in a speech.

But note: he’s “hoping” he won’t have to impose his own view. He’s hoping the companies will accede to his power without complaining. But the fact remains, he doesn’t have to get their consent. He “has sole discretion to set compensation for the top 25 employees of each of those companies,” and his decisions “won’t be subject to appeal.” Or, as Feinberg himself puts it,

The statute provides these guideposts, but the statute ultimately says I have discretion to decide what it is that these people should make and that my determination will be final. The officials can’t run to the Secretary of Treasury. The officials can’t run to the court house or a local court. My decision is final on those individuals.

That’s power. So where is Doonesbury? We need him to update his classic 1970s “energy czar” strips.

In a profile of Virginia Democratic gubernatorial hopeful Creigh Deeds, the Washington Post tells us about the grandfather from whom he got his unusual first name — and his interest in political power:

Creigh Tyree mattered. While serving as chairman of the Bath County Democrats, during the Depression, Tyree’s house was the first private home in the county to receive electricity from the federal Rural Electrification Act, proof of the power of government, he told his grandson.

Or at least proof of the practice of government. And that is in fact the lesson that young Creigh learned:

Watching the elderly man work the circuit of county shops and farms, the boy saw the power of political maneuvering, the influence it brought a man, the way it enabled the well-connected to pick up a phone and get something previously ungettable. Young Deeds started telling elementary school teachers that he wanted to be, would be, governor someday, and then president.

Using political connections to get things other people can’t get — that’s the lesson young Creigh Deeds learned from his granddad’s experience with the New Deal.

In a story earlier this week, the Post made it clear that that’s still the way politics works:

Sen. Thad Cochran’s most recent reelection campaign collected more than $10,000 from University of Southern Mississippi professors and staff members, including three who work at the school’s center for research on polymers. To a defense spending bill slated to be on the Senate floor Tuesday, the Mississippi Republican has added $10.8 million in military grants earmarked for the school’s polymer research.

Cochran, the ranking Republican on the Appropriations subcommittee on defense, also added $12 million in earmarked spending for Raytheon Corp., whose officials have contributed $10,000 to his campaign since 2007. He earmarked nearly $6 million in military funding for Circadence Corp., whose officers — including a former Cochran campaign aide — contributed $10,000 in the same period.

In total, the spending bill for 2010 includes $132 million for Cochran’s campaign donors, helping to make him the sponsor of more earmarked military spending than any other senator this year, according to an analysis by the nonprofit group Taxpayers for Common Sense.

Cochran says his proposals are based only on “national security interests,” not campaign cash. But in providing money for projects that the Defense Department says it did not request and does not want, he has joined a host of other senators on both sides of the aisle. The proposed $636 billion Senate bill includes $2.65 billion in earmarks….

The bill, however, would add $1.7 billion for an extra destroyer the Defense Department did not request and $2.5 billion for 10 C-17 cargo planes it did not want, at the behest of lawmakers representing the states where those items would be built. Although the White House said the administration “strongly objects” to the extra C-17s and to the Senate’s proposed shift of more than $3 billion from operations and maintenance accounts to projects the Pentagon did not request, no veto was threatened over those provisions….

Sen. Daniel K. Inouye (D-Hawaii), chairman of the Senate Appropriations Committee, ran a close second to Cochran’s $212 million in earmarks this year, having added 37 earmarks of his own worth $208 million, according to the tally by Taxpayers for Common Sense.

Almost all of Inouye’s earmarks are for programs in his home state, and 18 of the provisions — totaling $68 million — are for entities that have donated $340,000 to his campaign since 2007. His earmarks included $24 million for a Hawaiian health-care network, $20 million for Boeing’s operation of the Maui Space Surveillance System and $20 million for a civic education center named after the late senator Edward M. Kennedy….

In Cochran’s case, the proposed earmarks would benefit at least two entities that hired his former aides.

Folks, this is the way government works. If you think the programs of the New Deal or the stimulus bill or federal highway programs are necessary, fine — and certainly a defense bill is necessary — but understand that all such government programs involve taking money by force from people who didn’t offer it up voluntarily and then distributing it to others, in many cases to people with more political clout. People in the reality-based community should recognize this reality.

For more on this, see chapter 9 of Libertarianism: A Primer, “What Big Government Is All About.”

When Samuel Johnson said that ”patriotism is the last refuge of a scoundrel,” he overlooked the value of the word “reform.” (I didn’t say this first, but I can’t discover who did.) Webster’s says that “reform” means “to put or change into an improved form or condition [or] to amend or improve by change of form or removal of faults or abuses.” So in political terms, a reform is a change for the better. But whether a particular policy change would actually improve things is often controversial. Unfortunately, the mainstream media typically use the word “reform” to mean “change in a liberal direction.”

It’s bad enough that they constantly use the phrase “campaign finance reform” to refer to laws that restrict individuals’ ability to spend their money to advance their political ideas. And of course every day we hear and read the term “health care reform” used to mean new subsidies, mandates, regulations, taxes, and restrictions on how health care is provided. Needless to say, there’s heated debate in the country as to whether such laws would constitute reform.

And now the Washington Post gives us this prominent headline (page 3, upper right):

450 Mayors Petition Obama
To Adopt Broad Gun Reform

The story makes clear that what the mayors want is what used to be called “gun control” — more power for the Bureau of Alcohol, Tobacco, and Firearms, the creation of an “Interstate Firearms Trafficking Unit,” more restrictions on gun shows, more data collection on individuals.  No doubt anti-gun strategists have discovered that “gun control” is an unpopular term, so they advise advocates to use terms like “gun reform”; and reporters, headline writers, and editors at the Post go along with it.

Now try to imagine this story in the Washington Post:

450 Mayors Petition Obama
To Adopt Broad Media Reform

A new report from a national coalition of mayors urges President Obama to adopt dozens of reforms to help curb media excesses, including steps to crack down on problems with unauthorized leaks, the creation of a federal interstate media monitoring unit, new rules on media concentration, a federal database of people who use hateful language in letters to the editor and online comments.

Hard to imagine the Post would blithely accept the term “reform” in that case, isn’t it? And I don’t think the Post and other mainstream media called President Reagan’s tax cuts “tax reform.” (They did use the term “tax reform” when the proposed policy involved eliminating loopholes and thus taxing more activities, along with a reduction of rates.) Nor, I think, did they call President Bush’s proposed Social Security private accounts “Social Security reform.” They should be equally careful when liberal activists dub their proposals “reform.”

Meanwhile, kudos to Mara Liasson of NPR, who in this story from Friday uses the terms “health care legislation” and “health care overhaul,” but never “health care reform.” I hope that was a conscious choice, in recognition of the fact that about half of Americans don’t think the current subsidy-regulation-mandate legislation is in fact reform.

“A Michigan woman who lives in front of a school bus stop says the state is threatening her with fines and possibly jail time for babysitting her neighbors’ kids until the bus comes,” CNN reports.

Lisa Snyder of Middleville, Mich., says she takes no money for watching the three children for 15-40 minutes each day so that the neighbors can get to work on time.

The Department of Human Services, acting on a complaint that Snyder was operating an illegal child care home, demanded she either get a license, stop watching the kids or face the consequences, WZZM says.

Snyder calls the whole thing “ridiculous” and tells the Grand Rapids TV station that “we are friends helping friends!”

A DHS spokesperson tells the station that it has no choice but to comply with state law, which is designed to protect Michigan children.

She’s not getting paid. She’s possibly not even letting the neighbor kids into her house. The kids are waiting for a school bus in front of her house, and she’s told her neighbors she’ll keep an eye on their kids. And the government wants her to get a license. (Something similar is happening in Britain.)  This is what people mean when they warn that an ever-expanding government threatens the values of neighborliness and community. When the government provides services for free, or when it erects obstacles to individuals’ providing those services, it reduces private provision and simultaneously increases the demand for government services. If you make it illegal for neighbors to watch one another’s kids, you weaken ties of neighborhood and community.

Our nanny-state government not only wants to take care of us from cradle to pre-K to K-12 to homebuying to medical care to retirement to grave, it not only considers adult Americans “just like your teenage kids, [not] acting in a way that they should act,” it not only wants to “nudge” us into acting the way it thinks we should, now it thinks that neighbors should have to get a license to keep an eye on the kids congregating in front of their homes. It’s enough to make you think we have too much government.

I wrote in Libertarianism: A Primer, “One difference between libertarianism and socialism is that a socialist society can’t tolerate groups of people practicing freedom, but a libertarian society can comfortably allow people to choose voluntary socialism.” (In the final section, “Toward a Framework for Utopia.”)

Now Ira Stoll notes the irony that it was very successful capitalists who put up the money that allowed Michael Moore to make his anti-market screed Capitalism: A Love Story:

The funniest moments of all in the movie, though, may just be in the opening and closing credits. We see that the movie is presented by “Paramount Vantage” in association with the Weinstein Company. Bob and Harvey Weinstein are listed as executive producers. If Mr. Moore appreciates any of the irony here he sure doesn’t share it with viewers, but for those members of the audience who are in on the secret it’s all kind of amusing. Paramount Vantage, after all, is controlled by Viacom, on whose board sit none other than Sumner Redstone and former Bear Stearns executive Ace Greenberg, who aren’t exactly socialists. The Weinstein Company announced it was funded with a $490 million private placement in which Goldman Sachs advised. The press release announcing the deal quoted a Goldman spokesman saying, “We are very pleased to be a part of this exciting new venture and look forward to an ongoing relationship with The Weinstein Company.”

So maybe I should add a corollary to my claim:

One difference between libertarianism and socialism is that a socialist society won’t put up the money for people to make libertarian movies, but in a capitalist/libertarian society the capitalists are happy to put up the money for anti-capitalist movies.

And if you doubt that a socialist society would discriminate against anti-socialist movies, you can either observe socialism in practice — in Cuba, China, the Soviet Union, East Germany, etc. — or read the chilling words of bestselling economist Robert Heilbroner in Dissent:

Read more…

With Gov. Deval Patrick’s appointment of longtime Kennedy courtier Paul Kirk to Sen. Edward M. Kennedy’s seat in the U.S. Senate, there are now at least three close aides holding on to Senate seats while their states go through the formality of an election. The governor of Delaware appointed Joe Biden’s longtime friend and former chief of staff to fill the rest of his term in the Senate. Can you name him? It is generally thought that he is obligingly holding on to the seat until Biden’s son Beau gets back from National Guard service and is able to run to succeed his father. And in Florida, Gov. Charlie Crist named his former chief of staff to fill the seat of retiring Sen. Mel Martinez until the 2010 election in which Crist is running for the seat. There are more seat-fillers in the Senate than at the Oscars.

Of course, Kennedy himself took his seat when he attained the age of 30, after it was kept warm for him by family retainer Benjamin A. Smith III.

Meanwhile, as of 2005 there were 18 senators who gained office at least partly through their family ties — sons, daughters, wives, nephews of former senators, governors, presidents, and so on.

The Founders envisioned the Senate as an assembly of wise and accomplished men, chosen for their experience and judiciousness. Political campaigns that favor the handsome, the glib, the panderers, and the best fundraisers are bad enough. But a Senate full of legacies and seat-warmers is especially unfortunate.

Stimulus sparks growth in government

—USA Today, front page, old-fashioned paper edition

Wouldn’t it save time if the Massachusetts legislature would just pass a law saying that if the governor is a Democrat, he fills any Senate vacancy, while if the governor is a Republican, a special election must be held?

Will Saletan writes that he and his colleagues at Slate seem to be increasingly engaged in libertarian sallies at the food police and other nanny statists. “Are we becoming conservative?” he worries, wringing his hands. Not quite:

We’re what we were five or 10 years ago: skeptics and fact-mongers with a bias for personal freedom. It’s the left that’s turning conservative. Well, not conservative, but pushy. Weisberg put his finger on the underlying trend: “Because Democrats hold power at the moment, they face the greater peril of paternalistic overreaching.” Today’s morality cops are less interested in your bedroom than your refrigerator. They’re more likely to berate you for outdoor smoking than for outdoor necking. It isn’t God who hates fags. It’s Michael Bloomberg.

Yes, that’s the same Jacob Weisberg who wrote In Defense of Government and blamed libertarians for the financial collapse. Older and wiser every day.

When Saletan takes on the stretches that the fat-tax advocates have to make to justify government regulation of what we eat, he would have done well to cite Glen Whitman’s Cato paper on paternalism.

And as genuine liberals recoil in horror at the actions of liberals with power, it’s a good time to read Damon Root’s new Cato Policy Report cover story on liberals who fled “right” from the economic and constitutional malfeasance of the New Deal. Let’s hope Saletan’s “new Whiskey Rebellion” spreads beyond the pages of Slate.

HT: Jacob Grier.

“My critics say that I’m taking over every sector of the economy,” President Obama sighed to George Stephanopoulos during his Sunday media blitz.

Not every sector. Just

• health care
• energy
• local schools
• banks
• insurance companies
• automobile companies
• compensation at financial firms
• newspapers
• the internet

This president and his Ivy League advisers believe that they know how an economy should develop better than hundreds of millions of market participants spending their own money every day. That is what F. A. Hayek called the “fatal conceit,” the idea that smart people can design a real economy on the basis of their abstract ideas.

This is not quite socialism. In most of these cases, President Obama doesn’t propose to actually nationalize the means of production. (In the case of the automobile companies, he clearly did.) He just wants to use government money and government regulations to extend political control over all these sectors of the economy. And the more political control achieves, the more we can expect political favoritism, corruption, uneconomic decisions, and slower economic growth.