Free Markets, Free People

Daily Archives: September 2, 2010


The folly of green protectionism

Here’s a formula for you to study:

Green groups want less forestry in the developing world. Industry wants green protectionism to cut the volume of competitive imports. Unions want green protectionism to stop imports to ensure they can keep workers in high-paying jobs.

So using the environment as an excuse, we have these three groups colluding to further their own agendas. Call it “green protectionism”.

In a recent case it has been to keep toilet paper made in foreign countries out of Australia.

That’s right, toilet paper.

Can anyone now figure, based on that formula, what the missing part of the equation might be? The part that is necessary to make such collusion pay off?

Yes, government. Certainly green groups can want less forestry in the developing world, and industry can wish for a way to cut the volume of competitive imports. And unions always hope to ensure high paying jobs.

But only one entity can actually make all those wishes, wants and hopes come true. If government becomes involved it has the power to fulfill the wishes and hopes of these three disparate special interest groups.

That’s what happened in 2008 when two Australian toilet paper manufacturers, Kimberly Clark Australia and SCA Hygiene as well as the Construction Forestry, Mining and Energy Union (CFMEU) and the World Wildlife Fund essentially colluded to keep foreign manufactured toilet paper, primarily from Indonesia and China out of the country. Their ostensible complaint was those countries were “dumping” their product in Australia.

For a short time they succeeded in getting imports restricted by the Australian Customs Service, until, it seems, the ACS did a study to determine the validity of the complaint. Their findings were significant. The Australian Customs Service report calculated that the potential downward pressure of imports could be as high as 42 percent of the price.

In other words, the collusion would cost consumers in Australia 42% more because the competitive pressure that kept prices low would have been removed. In addition, a recent report commissioned by the Australian government found that “illegally logged material” – one of the prime reasons these groups claimed Australia should ban imports of foreign wood products – only comprised 0.32 percent of the materials coming into Australia. In other words, the threat was insignificant.

That’s Australia, but what about here? Well, we’re hearing the same sorts of rumblings concerning “green protectionism”.

Sadly these campaigns appear to be part of a spreading green protectionist disease, where industry, unions and green groups work together. In the United States the disease was brought to life by the Lacey Act, which imposes extra regulation on imported wood and wood products to certify their origin and make them less competitive.

The Lacey Act is actually an update of a 1900 law that banned the import of illegally caught wildlife. It now includes wood products (2008). And that means, since extra steps and cost are incurred by foreign manufacturers, that consumers are stuck with the increased cost.

While the reasons for protectionism may sound good on the surface – save the forests, higher wages, less competition to ensure jobs – it isn’t a good thing. If freedom is defined by the variety of choices, what protectionism does is limit those choices and impose an unofficial tax on consumers. They end up paying the cost of collusive action between government and special interests.

So, each time your government announces that it is doing you the favor of limiting the imports of this commodity or that, based on “green” concerns, hold on to your wallet. Whatever the government is protecting you from, you can rest assured that the price of the domestic variety is headed up, since the other product of government intrusion is limiting competition. Rule of thumb: restricting free trade is rarely a good thing. And the only entity that can do so is government. “Green” is just the newest color in an old and costly game – protectionism.


Sen. Boxer’s Rebellion

[This post originally appeared in the Washington Examiner on August 30, 2010.]

If there is one thing that Congress has proved beyond a shadow of a doubt, it’s that spending other people’s money is easy. What makes it even easier is when they spend it on favored constituents in order to buy votes, even where the product purchased by the government isn’t wanted or needed.

Take the example of the Boeing C-17 Globemaster, a cargo transport aircraft, which is manufactured in Long Beach, California. While the plane is one of the military’s best workhorses (especially for forward deployments), the Air Force insists that it has plenty, more than enough in fact, and would really rather not purchase any more. Sen. Barbara Boxer, however, has other plans:

Locked in a tough re-election campaign, Sen. Barbara Boxer dropped by Boeing’s C-17 plant Friday [August 20, 2010] to pledge continued federal support for one of California’s largest manufacturers.

A crowd of cheering workers greeted Boxer at the site next to Long Beach Airport, where more than 5,000 design, build, market and sell the $250 million jet.

Boxer has remained one of the C-17 Globemaster’s strongest supporters on Capitol Hill since production began in the early 1990s, voting for all of the 223 jets so far ordered for the U.S. Air Force.

[...]

Before departing, Boxer promised the roughly 250 C-17 workers in attendance she would continue supporting the jet in Congress.

“I cannot tell you how proud I am that we have surpassed 200 planes, and that this magnificent aircraft is being built right here in California by American workers,” she said. “The only place the C-17 should ever be built is in California.”

To borrow a certain, infamous turn-of-phrase, they told me if I voted for John McCain I would be supporting the Military Industrial Complex, and they were right!

Well, that’s not entirely fair since, in reality, the Obama administration has been quite adamant that they’ve had quite enough C-17’s, thank you very much, and really don’t want anymore.

[In the end of June], the Obama Administration C-17 Challengers, led by Secretary of Defense Robert M. Gates, continued to land blow after blow in the annual boxing match over the fate of the C-17 and the 5,000 Long Beach workers who assemble the big jets. The Obama Administration wants to end production after the 223 which are already in service or in the pipeline. Boeing, its friends in congress and everywhere else are doing everything they can to continue building the profitable four engine advanced airlifters.

In order to force the sale on the Air Force, Congress is threatening to include provisions ending the “don’t ask, don’t tell” policy in the appropriation bill, forcing a painful veto decision on the White House. That does not seem to be changing the administration’s mind, however:

On Sunday [June 20, 2010], Gates was asked about the C-17 in an interview on Fox News by CHRIS WALLACE, ANCHOR. Here are the relevant excerpts:

WALLACE: As part of your new drive to try to cut the budget for non- combat operations, has the president agreed to veto any bill that would include continued funding for the C-17 cargo plane or an alternative engine for the Joint Strike Fighter, even if that legislation also included repeal of “don’t ask, don’t tell?”

GATES: Well, as I told the Senate Appropriations Committee, the defense subcommittee, this week, it would be a very serious mistake to believe that the president would not veto a bill that has the C-17 or the alternative engine in it just because it had other provisions that the president and the administration want.

WALLACE: Have you been given an assurance by the president that he will enforce his feelings, your feelings, about the budget even at the expense of social policy?

GATES: Well, I think the White House has put out a very strong statement in support. I would also just say that I don’t go way out on a limb without looking back to make sure nobody’s back there with a saw.

WALLACE: So you think that they veto the bill even with repeal of “don’t ask, don’t tell?”

GATES: I think so.

The Obama administration has repeated its promise to veto any bill purchasing more C-17’s since then. Nevertheless, Sen. Boxer keeps pushing for the purchase despite the fact that, according to a defense industry insider, the Air Force already has more of the aircraft than it needs (223 purchased vs. 205 or less required, which is backed up by this 2008 GAO report), and may have a cheaper alternative in modernization of the complementary C-5 Galaxy aircraft manufactured by Lockheed Martin.

Whatever the merits of the C-5 vs. the C-17, the Air Force and Department of Defense have been quite clear that they no longer want purchase the C-17, and the GAO concluded in 2008 that the C-17 program would have to end in the near term (slated to being next month), regardless of what some in Congress wanted.

The real story here is that leaders such as Sen. Boxer continue to be oblivious to what their duties actually are. She and her congressional colleagues persist in using taxpayer money to fund projects intended to keep them in power, but which add nothing to general welfare of the country. Will purchasing more C-17’s save jobs in Long Beach? Yes, but only for a little while, and only at the expense of more productive uses of the workers’ time (i.e. creating something that is actually wanted and needed). Meanwhile the appropriation costs taxpayers plenty and they get no benefit from it.

So long as our leaders in Washington continue to spend our money for their own benefit, and that of their friends, we will have ballooning deficits and a decreasingly productive economy. judging from the growing clamor of voices, such as in the Tea Party movement, the electorate gets that. Our tax dollars are not for keeping the already powerful entrenched. The real question is, when will Sen. Boxer and her friends in Washington finally figure it out?


Damn violent right – eco-terrorism at the Discovery Channel

In this summer of heated political debate, Tea Party gatherings and Beck rallies, all with a background of the left tossing out warnings about possible right-wing violence, does it strike anyone as ironic that a militant lefty eco-whacko commits violence to further his cause?

James J. Lee, a long time protester outside the Discovery Channel building who’d been arrested and sentenced to 6 months supervised parole for an incident in March 2008, was shot by police after taking 3 hostages in the building.  He was carrying weapons and some allegedly homemade explosive devices.  It is reported one of the explosive devices detonated when he was shot.  The hostages escaped unharmed.

How far out there was this guy?  Well, human filth – because that’s what he thought of you – you may want to familiarize yourself with his demands.  Some samples:

1. The Discovery Channel and it’s affiliate channels MUST have daily television programs at prime time slots based on Daniel Quinn’s "My Ishmael" pages 207-212 where solutions to save the planet would be done in the same way as the Industrial Revolution was done, by people building on each other’s inventive ideas. Focus must be given on how people can live WITHOUT giving birth to more filthy human children since those new additions continue pollution and are pollution. A game show format contest would be in order. Perhaps also forums of leading scientists who understand and agree with the Malthus-Darwin science and the problem of human overpopulation. Do both. Do all until something WORKS and the natural world starts improving and human civilization building STOPS and is reversed! MAKE IT INTERESTING SO PEOPLE WATCH AND APPLY SOLUTIONS!!!!

2. All programs on Discovery Health-TLC must stop encouraging the birth of any more parasitic human infants and the false heroics behind those actions. In those programs’ places, programs encouraging human sterilization and infertility must be pushed. All former pro-birth programs must now push in the direction of stopping human birth, not encouraging it.

So when you go home and hug your filthy and parasitic human children tonight, remember that Mr. Lee would as soon bury them as anything. After all, it’s all about the "wildlife".

Lee on civilization and morality:

4. Civilization must be exposed for the filth it is. That, and all its disgusting religious-cultural roots and greed. Broadcast this message until the pollution in the planet is reversed and the human population goes down! This is your obligation. If you think it isn’t, then get hell off the planet! Breathe Oil! It is the moral obligation of everyone living otherwise what good are they?? Apparently no good at all. Notice the implication of violence unless "the pollution on the planet is reversed". It’s your moral obligation.

The man holding hostages at gunpoint and threatening them with harm is spouting off about “moral obligations”?  A bit like the Obama’s calling for shared sacrifice over a lobster dinner while vacationing on Martha’s Vinyard.

As for immigration, Mr. Lee advances a new name for "anchor babies" – "pollution babies", because, you know, that’s all babies do – pollute:

5. Immigration: Programs must be developed to find solutions to stopping ALL immigration pollution and the anchor baby filth that follows that. Find solutions to stopping it. Call for people in the world to develop solutions to stop it completely and permanently. Find solutions FOR these countries so they stop sending their breeding populations to the US and the world to seek jobs and therefore breed more unwanted pollution babies. FIND SOLUTIONS FOR THEM TO STOP THEIR HUMAN GROWTH AND THE EXPORTATION OF THAT DISGUSTING FILTH! (The first world is feeding the population growth of the Third World and those human families are going to where the food is! They must stop procreating new humans looking for nonexistant jobs!)

And "global warming"?

6. Find solutions for Global Warming, Automotive pollution, International Trade, factory pollution, and the whole blasted human economy. Find ways so that people don’t build more housing pollution which destroys the environment to make way for more human filth! Find solutions so that people stop breeding as well as stopping using Oil in order to REVERSE Global warming and the destruction of the planet!

Lee wanted the Discovery Channel to air programs that supported his agenda. In a nutshell, it was eliminate humans via dismantling their economies and discouraging birth of more "filth". Strangely he opposed war which has successfully removed many humans over the last century or so. He apparently prefered disease and famine do the job.

Because:

Humans are the most destructive, filthy, pollutive creatures around and are wrecking what’s left of the planet with their false morals and breeding culture. For every human born, ACRES of wildlife forests must be turned into farmland in order to feed that new addition over the course of 60 to 100 YEARS of that new human’s lifespan! THIS IS AT THE EXPENSE OF THE FOREST CREATURES!!!! All human procreation and farming must cease! It is the responsiblity of everyone to preserve the planet they live on by not breeding any more children who will continue their filthy practices.

Children represent FUTURE catastrophic pollution whereas their parents are current pollution. NO MORE BABIES! Population growth is a real crisis. Even one child born in the US will use 30 to a thousand times more resources than a Third World child. It’s like a couple are having 30 babies even though it’s just one! If the US goes in this direction maybe other countries will too!

There you go – I looked, but couldn’t find anything that blamed Bush, but I’m sure it’s buried in there somewhere. Instead, the blame belongs to another:

Lee said at the time that he experienced an ‘‘awakening” when he watched former Vice President Al Gore’s environmental documentary ‘‘An Inconvenient Truth.”

Another in a long line of lefty whack jobs who haven’t figured out that humans too are a natural part of this earth.

No one questions the need for good stewardship of the earth and its resources. However, eco-terrorists like this don’t find our attempts sufficient or worthy. In fact many don’t find us – human beings – worthy of further survival. It’s hard to imagine where they think they would fit in this brave new world (other than ridding it of the rest of us).

This isn’t something new, just something that has risen high enough to catch our attention for a day or two. Eco-terrorism has been an ongoing problem for quite some time.  At the extremes of the eco movement are any number of James J. Lees who would, if given the opportunity and the power, remove all humans and their “filthy children” from this earth.

And it is my contention that they’re a bigger threat for violence than any “right-wing militia” out there.  I wonder what the Southern Poverty Law Center and Janet Napolitano will have to say about this?

~McQ