President Obama Takes America Back to War in Iraq

Posted on December 2, 2015  Posted to Cato@Liberty

Do Conservatives Only Oppose Big-Government Health Care Schemes When Proposed by Democrats?

Posted on December 2, 2015  Posted to Cato@Liberty

European Defense and America’s National Narcissism

Posted on December 2, 2015  Posted to Cato@Liberty

Douglass North, 1920-2015

Posted on December 2, 2015  Posted to Cato@Liberty

The People Still Want Smaller Government

Most of the headlines about the large new Pew Research Center survey (6,000 interviews) have focused on the continuing decline in Americans’ trust in government, as depicted in the chart below.

Trust in government Pew

But the survey also asks one of my favorite questions:

If you had to choose, would you rather have a smaller government providing fewer services, or a bigger government providing more services?

As shown in the chart below, the number preferring smaller government rose to its highest point during the 1990s, then reached a low point as President Obama was elected in 2008, and has been rising since then. In the latest survey 53 percent of Americans say they prefer a smaller government, while only 38 percent would rather have a bigger government with more services.

But as I’ve written before, I’ve always thought the “smaller government” question is incomplete. It offers respondents a benefit of bigger government–”more services”–but it doesn’t mention that the cost of “bigger government providing more services” is higher taxes. The question ought to give both the cost and the benefit for each option. The Rasmussen poll does often ask the question that way. In one poll about a decade ago, Rasmussen found that 64 percent of voters said that they prefer smaller government with fewer services and lower taxes, while only 22 percent would rather see a more active government with more services and higher taxes. A similar poll around the same time, without the information on taxes, found a margin of 59 to 26 percent. So it’s reasonable to conclude that if you remind respondents that “more services” means higher taxes, the margin by which people prefer smaller government rises by about 9 points. So maybe the margin in this poll would have been something like 58 to 34 if both sides of the question had been presented.

For now, when voters are given only the benefits and not the costs of bigger government, Pew and other pollsters find these results:

Views of smaller government

Posted on November 23, 2015  Posted to Cato@Liberty

Trade Is Not a Trade-Off: The Stronger Case for Free Trade

Too many advocates of trade liberalization don’t really understand the case for free trade. Consider this sympathetic interview by Steve Inskeep of NPR with U.S. Trade Representative Michael Froman, the chief negotiator of the Trans-Pacific Partnership:

INSKEEP: Froman argues the TPP, the Trans-Pacific Partnership, will give U.S. industries more access to foreign markets. Granted, there’s a trade-off. Other nations get more access to the U.S. for their products. Froman contends that, at least, happens slowly as tariffs or import taxes drop.

FROMAN: The tariff on imported trucks from Japan, as an example, won’t go away for 30 years. On apparel and textiles, we worked very closely with the textile manufacturers in the U.S. to come up with an outcome that they could be comfortable with, so that we’ll let in clothes coming that are made Vietnam or made in Malaysia, but they’ve got to use U.S. fabric.

Inskeep refers to the lowering of U.S. tariffs as “a trade-off,” and Froman accepts that characterization. Both operate from the premise that Americans want other countries to reduce their barriers to our exports, and that the “trade-off” for that benefit is that we must reduce our own trade barriers.

That’s backwards. The benefit of trade is that we get access to goods and services that we might get otherwise, or we get to pay lower prices for the goods we want. More broadly, we want free – or at least freer – trade in order to remove the impediments that prevent people from finding the best ways to satisfy their wants. Free trade allows us to benefit from the division of labor, specialization, comparative advantage, and economies of scale.

This is a point that Cato scholars and our Herbert A. Stiefel Center for Trade Policy Studies have been making for years. As Center director Dan Ikenson wrote last year:

Arguably, opening foreign markets should be an aim of trade policy, but real free trade requires liberalization at home. The real benefits of trade are measured by the value of imports that can be purchased with a unit of exports – the so-called terms of trade. Trade barriers at home raise the costs and reduce the amount of imports that can be purchased with a unit of exports, yet holding firm to those domestic barriers while insisting that foreign markets open wider is the U.S. trade negotiating strategy. Indeed, that’s almost every government’s negotiating strategy. It is the crux of reciprocity-based trade negotiations, which, at its core, is a rejection of free trade.

Ikenson and Scott Lincicome made that case at greater length, with specific emphasis on the “central misconception” that “exports are good and imports are bad,” almost five years ago.

Thirty years ago in the Cato Journal, the economist Ronald Krieger explained the difference between the economist’s and the non-economist’s views of trade. The economist believes that “The purpose of economic activity is to enhance the wellbeing of individual consumers and households.” And, therefore, “Imports are the benefit for which exports are the cost.” Imports are the things we want—clothing, televisions, cars, software, ideas—and exports are what we have to trade in order to get them.

And I wrote more about this persistent misunderstanding in The Libertarian Mind (buy it now!):

Politicians just don’t seem to get this. President Obama’s official [2010] statement on “Promoting U.S. Jobs by Increasing Trade and Exports” mentions exports more than forty times; imports, not once. His Republican critics agree: Senator Rob Portman says that a trade agreement “is vital to increasing American exports.” More colorfully, during his 1996 presidential campaign, Pat Buchanan stood at the Port of Baltimore and said, “This harbor in Baltimore is one of the biggest and busiest in the nation. There needs to be more American goods going out.” That’s fundamentally mistaken. We don’t want to send any more of our wealth overseas than we have to in order to acquire goods from overseas. If Saudi Arabia would give us oil for free, or if South Korea would give us televisions for free, Americans would be better off. The people and capital that used to produce televisions—or used to produce things that were traded for televisions—could then shift to producing other goods. Unfortunately for us, we don’t get those goods from other countries for free. But if we can get them cheaper than it would cost us to produce them ourselves, we’re better off.

Sometimes international trade is seen in terms of competition between nations. We should view it, instead, like domestic trade, as a form of cooperation. By trading, people in both countries can prosper. And we should remember that goods are produced by individuals and businesses, not by nation-states. “South Korea” doesn’t produce televisions; “the United States” doesn’t produce the world’s most popular entertainment. Individuals, organized into partnerships and corporations in each country, produce and exchange. In any case, today’s economy is so globally integrated that it’s not clear even what a “Japanese” or “Dutch” company is. If Apple Inc. produces iPads in China and sells them in Europe, which “country” is racking up points on the international scoreboard? The immediate winners would seem to be investors and engineers in the United States, workers in China, and consumers in Europe; but of course the broader benefits of international trade will accrue to investors, workers, and consumers in all those areas.

The benefit of international trade to consumers is clear: We can buy goods produced in other countries if we find them better or cheaper. There are other benefits as well. First, it allows the division of labor to work on a broader scale, enabling the people in each country to produce the goods at which they have a comparative advantage. As Mises put it, “The inhabitants of [Switzerland] prefer to manufacture watches instead of growing wheat. Watchmaking is for them the cheapest way to acquire wheat. On the other hand the growing of wheat is the cheapest way for the Canadian farmer to acquire watches.”

I hope that USTR Froman, Senate Finance Committee chair Orrin Hatch, and other advocates of trade liberalization will come to understand and to advocate the strong case for free trade, which economists have understood since Adam Smith in 1776.

Posted on November 16, 2015  Posted to Cato@Liberty

GOP Candidates Suck Up to Hatemongers

Sometimes I think Republicans get a bad rap from mainstream journalists, who tend to be more sympathetic to liberals and Democrats. The problem may be particularly acute when it comes to social conservatives, whose views seem especially unpopular among journalists.

But right now three conservative Republican presidential candidates are mostly getting a free pass from the media on their appalling judgment over the weekend.

Ted Cruz, Bobby Jindal, and Mike Huckabee fete a man who thinks the Bible says we should execute gays.”

Ted Cruz, Bobby Jindal, and Mike Huckabee spoke at a conference in Des Moines called “Freedom 2015: National Religious Liberties Conference,” a two-day event that began last Friday. Now, that doesn’t sound so bad. In fact, my colleagues at the Cato Institute and I have recently defended the rights of Hobby Lobby, the Little Sisters of the Poor, and the bakers and photographers who don’t want to participate in same-sex weddings

But this conference was about something far different from liberty, although you wouldn’t know that from bland media coverage like this CBS News article. So it’s a good thing that The Daily Beast and Rachel Maddow of MSNBC picked up the story, with video from People for the American Way’s RightWingWatch.

The conference was organized by Kevin P. Swanson, a minister in Colorado and host of the Generations Radio Show. Swanson is part of the Orthodox Presbyterian Church and the far-right fundamentalist Christian Reconstructionism movement, which author Walter Olson wrote about at length in 1998. Swanson gave the conference’s opening and closing talks and interviewed Cruz, Jindal, and Huckabee. And in his closing keynote address, Swanson ranted at length about topics that would hardly be characterized as religious liberty:

YES! Leviticus 20:13 calls for the death penalty for homosexuals. YES! Romans Chapter 1, Verse 32, the Apostle Paul does say that homosexuals are worthy of death. His words, not mine!  And I am not ashamed of the Gospel of Jesus Christ. And I am not ashamed of the truth of the word of God. And I am willing to go to  jail for standing on the truth of the word of God.

To be sure, he did say that “civil leaders” should not apply the death penalty today, not until the culture has changed and gays have been put on notice that they must repent or be put to death. Thanks for small favors, I suppose. But it’s also worth noting that at least two other speakers at the conference likewise have advocated the death penalty for gay people.

And as Maddow notes, this is not just something that the conference host has said in the past, though he had said it plenty of times, as a Google search would have revealed. This is what he said in the keynote address at the conference attended by three candidates for president. 

That wasn’t the full extent of the crazy at the conference. As the gay website Towleroad reported:

Swanson has also said that the government should put gay people to death, warned that the Girl Scouts and the movie “Frozen” turn girls into lesbians and blamed natural disasters on gay people and women who wear pants. Swanson has also said that churches accepting gay couples will lead to the persecution, imprisonment and murder of Christians, and wished for the good ole days when country singer Kacey Musgraves would have been hanged for her pro-gay lyrics.

Jake Tapper asked Cruz about his attendance at the conference, and Cruz responded that he did not “know what this gentleman has said” but that religious liberty is a very important issue. Would Cruz accept that answer from a presidential candidate who spoke at a conference where the host and keynoter yelled “God damn America” or said that Christians should be executed? I doubt it. He should be asked about his participation again, as should Jindal and Huckabee.

And American conservatives should be asked if they find all this acceptable. Can you actually support presidential candidates who stand on such a stage, answering questions from such a person?

If the three Democratic presidential candidates accepted the invitation of, and answered the questions of, an equally extreme leftist, a person who advocated the execution of peaceful people he disliked, conservatives everywhere would be outraged. I hope they start holding their own candidates to the same standard.

Posted on November 12, 2015  Posted to Cato@Liberty

David Boaz discusses libertarianism.org guides on WTAN’s Freedom Works with Paul Malloy

Posted on November 11, 2015  Posted to Cato@Liberty

David Boaz discusses the relationship between the Republican candidates and the media on CBS WUSA’s Capital Download

Posted on November 8, 2015  Posted to Cato@Liberty

Rush Limbaugh Is Half-Right: Liberals Offer Poorly Thought Out, Emotional Solutions. And So Do Conservatives

Friday afternoon Rush Limbaugh took a call from a conservative teenager who wanted to know how to help his generation “realize what’s happening in our nation.” Rush offered some thoughts, beginning with this:

Liberalism is so easy.  All you have to do is see some suffering and tell everybody that you see it, and that it really bothers you. Right there, you are given great credit for having great compassion, and people will say great things about you.  All you have to do is notice it.  You don’t have to offer a solution.  If you do offer a solution, say, “The government ought to do something,” then they’ll really, really love you. Liberalism’s easy. 

That’s why a lot of people end up going there, is no resistance to it. It doesn’t take any kind of thought because it’s all based in emotion, and thinking is harder than feeling.  Thinking’s an applied process. 

That’s a good point. It is indeed easy to see a problem and say “the government ought to do something.” People don’t make enough money? Raise the minimum wage. Don’t think about what the effects of that might be. Or just increase welfare. And again, don’t think through the long-term effects. IBM is too big? Break it up, even as new competition is about to leave IBM in the dust. Part of the problem here is taking a snapshot view of the world – which at any point will be full of inefficiencies and inequalities— rather than a dynamic view. The world is constantly changing. Economic growth is a process. Things that are first bought only by the rich become cheaper and more available to the middle class and then to everyone. And centralized, compulsory “solutions” to immediate problems may impede growth, improvement, and progress.

But Rush might have mentioned that sometimes “conservatism” is easy, too. All you have to do is see a problem and demand a government program. Some people get in trouble with drugs? Ban ’em. The Middle East is in chaos? Bomb some more countries. Russia is assertive? Stand up to ’em! “It doesn’t take any kind of thought because it’s all based in emotion, and thinking is harder than feeling.  Thinking’s an applied process.” And when you think about it, you might realize that prohibition introduces all sorts of new problems, that the United States can’t control the whole world any more than it can control the American economy, that threatening war with a nuclear-armed Russia might have disastrous consequences.

Yes, thinking is harder than feeling. It’s easy to say, “The government ought to do something.” And both liberals and conservatives default too easily to such easy answers.

Posted on November 7, 2015  Posted to Cato@Liberty

About David Boaz

Click here to learn more.

Follow

Commentator

Search