Budget Bravado

In a letter to lawmakers, the president’s budget director, Rob Portman, …accused Democrats of doing little to rein in “the unsustainable growth in entitlement spending” on Social Security, Medicaid and Medicare [reports the Washington Post].

Well, they did almost all oppose the trillion-dollar expansion of Medicare in 2003 that then-Rep. Portman voted for and that President Bush bludgeoned reluctant Republicans into supporting.

Posted on May 12, 2007  Posted to Budget & Tax Policy,Cato@Liberty,General,Government & Politics

The Heckler’s Veto in France

Two days before the French presidential election, Socialist candidate Segolene Royal warned that there would be riots if her opponent, conservative Nicolas Sarkozy, was elected. She told a radio interviewer:

“Choosing Nicolas Sarkozy would be a dangerous choice,” Royal told RTL radio.

“It is my responsibility today to alert people to the risk of (his) candidature with regards to the violence and brutality that would be unleashed in the country (if he won),” she said.

Pressed on whether there would actually be violence, Royal said: “I think so, I think so,” referring specifically to France’s volatile suburbs hit by widespread rioting in 2005.

Then the Washington Post casually reported, in an article on Sarkozy’s plans, that “While he seeks the strong majority that will be crucial for pursuing the ambitious agenda he has promised, it is unlikely he will risk tackling any tough issues that could spark social unrest or street protests.”

“The question he will have to ask himself first is: What are the reforms he should implement to show politically that he sticks to what he announced ” said Dominique Reynié, a political analyst at the Institute for Political Sciences’ Political Research Center. “And the second question is: What are the reforms he can implement without creating riots ”

And indeed, according to Time, there have been riots since the election. But the rioters aren’t the disaffected immigrant youth of the suburbs. Instead, “the participants are mostly white, educated and relatively comfortable middle class adherents of extreme-left and anti-globalization ideologies.” Some 500 cars were burned each night, up from the routine 100 cars set afire in la belle France every night.

It was outrageous for Royal to suggest that the French people should choose their leader on the basis of fear and threats. We talk about a “heckler’s veto” in which the government presents someone from speaking in order in order to avoid a violent reaction from his critics. How much worse it would be for a great nation to choose its president because of a “rioters’ veto.” How appalling for the leader of a French political party ostensibly committed to the Declaration of the Rights of Man and of the Citizen to encourage a rioters’ veto. Journalists should think twice about casually reporting that elected leaders will make their decisions out of fear of rioters.

And people on the left who are committed to democracy and peace should speak up against the use of such political violence by others on the left. Nobody warned that the French bourgeoisie would riot if Royal was elected. And they wouldn’t have, so no journalist would be reporting that President-elect Royal would have to avoid “tackling touch issues that could spark social unrest.”

Posted on May 9, 2007  Posted to Cato@Liberty,Foreign Policy,General,Government & Politics

The Same Old K Street

Jeff Birnbaum, who covers lobbying for the Washington Post, which is sort of like covering the Pope for the Vatican Observer, writes about “the other K Street” in a lengthy article. “K Street,” of course, is shorthand–or if you believe Wikipedia, metonym–for the lobbying industry.

According to Birnbaum, “the other K Street” is a building along K Street that has become home to a dozen or so well-funded left-Democratic lobbies–Campaign for America’s Future, Americans United for Change, Progressive Majority, Ballot Initiative Strategy Center, USAction, MoveOn.org Political Action, etc. So that’s very different from the usual corporate lobbyists, right

Well, let’s see. What K Street is really about is using political influence and the power of government to transfer resources from those who produced them to yourself or your clients. It’s about milking the taxpayers. It’s about using your political connections to impose your own agenda on the unorganized masses.

And by that definition, “the other K Street” fits right in with the corporate K Street. Special interests give them buckets of money, and they manipulate the political process on behalf of partisan, ideological, and interest-driven agendas–just like the corporate and right-wing lobbyists.

Michael Barone reminds us that it was Franklin D. Roosevelt’s aides who originally created “K Street” when they left the White House and went into business for themselves. They happily lobbied the permanent Democratic majority in Washington for the next 60 years or so. Now the taxpayers’ pinata is available to everybody.

Posted on May 8, 2007  Posted to Cato@Liberty,Government & Politics

Time for Taxpayers to Sing the Blues

Blue corn isn’t subsidized like white and yellow corn, and that’s just not right. Or so say the blue corn growers. Cindy Skrzycki’s “Regulators” column in the Washington Post today is the sort of thing that ought to make you a libertarian. So many lawyers writing so many regulations, with clauses and sub-clauses. And it’s all nonsense.

So here’s the problem:

Under the regulatory system that determines which crops qualify for inclusion in Department of Agriculture support programs, blue corn is an orphan. According to the department rulebook, it isn’t even considered corn because it’s not yellow or white, the only versions of the food that are eligible for federal agricultural loans and crop payments.

This means that farmers who grow blue corn, which is made into the blue-corn tortilla chips that many of us love to dip into a nice salsa, aren’t growing “real” corn, so they don’t qualify for loan or other support programs, according to the government.

Now you might think this is no big deal since blue corn sells for about twice what white and yellow corn do. But the growers feel hurt and victimized and, you know, invisibilized. They want to be an official government-recognized crop. And, you know, get the loans and subsidies. Like popcorn got in 2003.

But fear not. Rep. Dennis Cardoza (D-Calif.), chairman of the House subcommittee on horticulture and organic agriculture (seriously), is listening. He’s promised the blue-corn growers that he’ll try to address their needs in the current farm bill.

And then taxpayers can subsidize premium organic blue corn, lest this great nation ever run out of blue-corn tortilla chips in a national emergency.

Posted on May 8, 2007  Posted to Budget & Tax Policy,Cato@Liberty,General,Government & Politics

Property Tax Revolt: The First Time Was Only a Warning

It looks like a property tax revolt is brewing across the country, perhaps the biggest one since the era of Proposition 13, in the late 1970s. The Christian Science Monitor reports today that “legislative proposals, citizen initiatives, and lawsuits are on the agenda in at least 20 states.”

It’s no surprise why. Rising home values have meant rising assessments in many parts of the country. Rising home values are great if you’re selling; but if you’re not planning to sell your house, the increase can just mean higher taxes. And now, as Dennis Cauchon pointed out in USA Today, house prices are falling in some places but assessments haven’t yet been adjusted.

More importantly, cities and counties gleefully increased spending as the tax revenue rolled in during a decade or so of rising prices. But now that the revenue increases are slowing, local governments don’t want to cut back. Instead, they want to raise rates to keep the good times rolling—for governments if not for taxpayers.

The Wall Street Journal reports that more and more taxpayers are protesting their assessments. That’s one form of rebellion. Another is tax protests and calls for political action, and the Journal reports that those are happening, too, from Florida to Minnesota.

Back in 1978, the college newspaper cartoonist Berke Breathed (later famous for “Bloom County” and “Opus”) drew a brilliant cartoon about Proposition 13. For the benefit of our younger readers, I’ll explain: Proposition 13, which slashed property taxes in California, was spearheaded by Howard Jarvis. And it passed in June 1978, about the time the movie The Omen II came out, with its tagline “The first time was only a warning.” And Breathed was right: Prop 13 was a warning to the political class that taxpayers were fed up. After Proposition 13, the Democratic Congress cut the capital gains tax rate. Massachusetts passed Proposition 2-1/2 in 1980. More than a dozen other states put constitutional limits on taxes in the next few years. Ronald Reagan ran for president on a tax-cutting platform; he defeated incumbent Jimmy Carter, swept in a Republican Senate, and cut the top marginal income tax rate from 70 percent to 50 and then to 28 percent.

From earmarks to entitlements to local assessments, it’s time for taxpayers to give the political class another warning.

Posted on May 7, 2007  Posted to Budget & Tax Policy,Cato@Liberty,Government & Politics

May Day in Latin America

This Tuesday, May 1, Venezuelan ruler Hugo Chavez will take control “of Venezuela’s last remaining privately run oil projects.” The symbolism is obvious: the socialist May Day. Last year, Bolivian president Evo Morales sent his soldiers to occupy the gas fields in his country on May Day.

So I’m reminded, as I was last year, that May 1 is also the anniversary of the institution of private retirement accounts in Chile. Since then Chile has been a great economic success story.

Perhaps 25 or 50 years from now, we will know whether Chile’s privatization or Bolivia’s and Venezuela’s nationalizations brought a higher standard of living to their citizens.

Posted on April 30, 2007  Posted to Cato@Liberty,Economics & Economic Philosophy,Int'l Economics & Development

Barney Frank, the Occasional Libertarian

Rep. Barney Frank, chairman of the House Committee on Financial Services, gave a resoundingly libertarian interview to NPR’s “All Things Considered” Friday evening. Frank has introduced a bill to repeal last year’s ban on online gambling. As he did in this 2003 Cato Policy Forum, he made his argument in libertarian terms. From the Nexis transcript:

ROBERT SIEGEL: First of all, what is your motive here Is it libertarian Is it to achieve more revenues for the government by taxing activity What is it

Rep. FRANK: It’s libertarian. I am appalled at the notion that the government tells adults that they cannot do certain things with their own money on their own time in ways that do not harm anybody else because other people disapproved of them. …

But my motive is overwhelmingly that I just don’t want to see the government telling people what to do….

SIEGEL: How much money would taxing Internet gambling bring in to the federal government

Rep. FRANK: Well, in the bill I am – not a lot – I really want to make it very clear, that’s not my major focal point here. Potentially this could be a useful source of revenue just like any other business. But I do want to stress, my main motivation here is that I do think I should mind my own business and I want to deal with the environment, and I want to deal with economic problems, and I want to deal with poverty and all these other things. But I spend a lot of energy trying to protect people from other people. I have none left for protecting people from themselves.

In between those segments, Frank said that we allow lots of things over the Internet–like wine sales–that are appropriate for adults but not for children. And he said that conservatives want to ban things they think are immoral, and liberals want to ban things they think are “just tacky.”

It’s good to hear an elected official use the word libertarian, and use it correctly, and apply it to issues. Would that more of his colleagues would do so. I’m reminded that seven years ago I did a libertarian rating of Congress. Frank did better than most Democrats, and indeed better than most Republicans (including 7 of the 11 members of the Republican Liberty Caucus Advisory Board). But he voted to restrict steel imports, restrict gun sales and gun shows, and implement the restrictive “Know Your Customer” bank regulations, and he opposed a tax cut. So his commitment to not telling what people to do with their own lives and their own money seems limited.

This year, as Financial Services chairman, he’s demonstrating his interventionist tendencies as well as his sometime libertarian instincts. He wants to push all workers into government health care, to regulate corporate decisions about executive compensation, to put more obstacles in the way of free trade across national borders, to keep Wal-Mart from creating an internal bank clearinghouse to hold down its costs. Not to mention expanding anti-discrimination rules to include gay, lesbian, bisexual and transgender people.

Frank told another journalist:

“In a number of areas, I am a libertarian,” Frank said. “I think that John Stuart Mill’s ‘On Liberty’ is a great statement, and I was just rereading it.

“I believe that people should be allowed to read and gamble and ride motorcycles and do a lot of things that other people might not want to let them do.”

Would that the Republicans who once took Congress on the promise of “the end of government that is too big, too intrusive, and too easy with the public’s money” also reread (or read) “On Liberty” and take its message to heart. And would that Barney Frank come to realize that adults should also be free to spend the money they earn as they choose and to decide what contracts, with foreign businesses or local job applicants, they will enter into.

Posted on April 30, 2007  Posted to Cato@Liberty,Civil Liberties,Government & Politics,Libertarian Philosophy

This Is a Republic (2)

At an appearance in Iowa this month, the Washington Post reports, Sen. John McCain went out of his way to declare his support for President Bush:

“There’s only one commander in chief of the United States, and that’s George W. Bush,” he told the crowd.

No, senator. This is a constitutional republic, and we don’t have a commander in chief. According to Article II of the Constitution, “The President shall be Commander in Chief of the Army and Navy of the United States.”

That’s an important distinction, and it’s disturbing that any candidate for the presidency would miss it. If McCain wants to be commander in chief of the whole country, of you and me, and to direct us the way the president directs the officers and soldiers of the armed forces, he needs to propose an amendment to the Constitution–an amendment that would effectively make the rest of the Constitution irrelevant, since it was designed as a Constitution for a limited government of a free people.

Next McCain will want us to bow and curtsy.

Posted on April 29, 2007  Posted to Cato@Liberty,Constitutional Studies,General,Government & Politics

This Is a Republic

Queen Elizabeth II is coming to Washington and Jamestown, and the Washington Post offers advice in case you should happen to meet her.

You don’t have to curtsy or bow. That requirement went out a generation ago.

Um, actually, the United States is a republic. (”And to the republic for which it stands.”) That requirement went out in 1776.

Posted on April 28, 2007  Posted to Cato@Liberty,General

Media Bias 2?

The Politico has a story about Congress and gun control. The online headline is “Congress slow to respond to shootings with legislation.” The print headline is even stronger: “All Talk, No Progress on Gun Control in Wake of V-Tech.”

This is a standard trope of perhaps unconscious bias. “Progress” is a good thing; if Congress has made “No Progress on Gun Control,” then that’s a bad thing. It’s like the frequent media lead “Congress failed today to pass national health insurance (or an increase in the minimum wage, or global warming restrictions, or campaign finance restrictions).”

Does one ever hear “Congress failed today to reduce taxes” “No Progress on Deregulation” I don’t think so. Journalists unconsciously assume that Congress should Do the Right Thing. When it doesn’t, that’s “failure” or “no progress.” Journalists and headline writers should try to find neutral language to describe Congress’s actions.

Posted on April 27, 2007  Posted to Cato@Liberty,Government & Politics

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