Free Markets, Free People

Nanny State


Quote of the Day

Although Herbert Hoover is rarely cited when one thinks of “immortal words”, these few paragraphs from Hoover (from James T. Flynn’s “The Roosevelt Myth”, HT: the Heritage Foundation) should certainly give you pause:

In every single case before the rise of totalitarian governments there had been a period dominated by economic planners. Each of these nations had an era under starry-eyed men who believed that they could plan and force the economic life of the people. They believed that was the way to correct abuse or to meet emergencies in systems of free enterprise. They exalted the state as the solver of all economic problems.

These men thought they were liberals. But they also thought they could have economic dictatorship by bureaucracy and at the same time preserve free speech, orderly justice, and free government.

These men are not Communists or Fascists. But they mixed these ideas into free systems. It is true that Communists and Fascists were round about. They formed popular fronts and gave the applause. These men shifted the relation of government to free enterprise from that of umpire to controller.

Consider the “car czar”. Look at the Chrysler board. Imagine government run health care. Cap-and-trade. Etc.

After that bit of reality from today, read Hoover’s further observations:

Directly or indirectly they politically controlled credit, prices, production or industry, farmer and laborer. They devalued, pump-primed and deflated. They controlled private business by government competition, by regulation and by taxes. They met every failure with demands for more and more power and control … When it was too late they discovered that every time they stretched the arm of government into private enterprise, except to correct abuse, then somehow, somewhere, men’s minds became confused. At once men became fearful and hesitant. Initiative slackened, industry slowed down production.

Look around you and tell me what you see. The future? It’s to be found in Hoover’s words from 1940.

~McQ


Coming Soon …

Dictated by the 5 of 9 Chrysler board members (appointed by the US and Canadian governments) and the UAW board member, Chrysler is pleased to present the 2010 Obamamobile:

Coming to a politically correct dealership near you soon!

Coming to a politically correct dealership near you soon!

Note the standard dual teleprompters. Since this model is run by hot air and not much else, all you have to do to boost power is read the prepared statements on the ‘prompter and zoom, you’re off to the races!

[HT: Brown]

~McQ


Nanny Wants New Credit Card Rules

Why not just wrap us all up in bubble wrap and bottle feed us?

“We like credit cards — they are valuable vehicles for many people,” said Senator Christopher J. Dodd, Democrat of Connecticut, the chairman of the Senate banking committee and author of the measure now being considered by the Senate. “It’s when these vehicles are being abused by the card issuers at the expense of the consumers that we must step in and change the rules.”

Doug Bandow provides the proper pithy reply to Sen. Dodd:

“Abused by the card issuers.” Of course. The very same card issuers who kidnapped people, forced consumers to apply for cards at gunpoint, and convinced merchants to refuse to accept checks or cash in order to force everyone to pull out “plastic.” The poor helpless consumers who had nothing to do with the fact that they wandered amidst America’s cathedrals of consumption buying wiz-bang electronic goods, furniture, CDs, clothes, and more. The stuff just magically showed up in their homes, with a charge being entered against them against their will. It’s all the card issuers’ fault!

Certainly card issuers are raising their rates arbitrarily to very high rates. And, as I did recently, card holders are calling them up and very politely saying “stuff it – and while you’re at it do it with my canceled card”.

Credit cards aren’t a ‘right’, and the fact that someone gets themselves into trouble with them doesn’t make them a ‘victim’ deserving of special legislation to “right a wrong”.

What in the world ever happened to individual responsibility and accepting the consequences for your actions?

~McQ


Drug Czar Wants To Banish Idea US Fighting “War On Drugs”

I don’t know if this is a bit of clever semantics or a real shift in policy, it’s just too early to tell, but if true, it may signal the beginning of a move toward sanity as it concerns drugs:

The Obama administration’s new drug czar says he wants to banish the idea that the U.S. is fighting “a war on drugs,” a move that would underscore a shift favoring treatment over incarceration in trying to reduce illicit drug use.

In his first interview since being confirmed to head the White House Office of National Drug Control Policy, Gil Kerlikowske said Wednesday the bellicose analogy was a barrier to dealing with the nation’s drug issues.

“Regardless of how you try to explain to people it’s a ‘war on drugs’ or a ‘war on a product,’ people see a war as a war on them,” he said. “We’re not at war with people in this country.”

But, of course, that’s precisely what a “war on drugs” has to be – a war on users, suppliers, growers, processors and the supporting network of people who get it from A to B. That’s precisely what we’ve been fighting from its inception and it is a war that’s being lost. It is time to consider the problem again and approach it with a different strategy. After all if input (I) + process(P) = output(O) and you never vary I or P, how can you expect O to ever be any different?

The Obama administration is likely to deal with drugs as a matter of public health rather than criminal justice alone, with treatment’s role growing relative to incarceration, Mr. Kerlikowske said.

Drugs are only a “criminal justice” problem because government chose prohibition – a policy that had been tried and failed miserably decades before – over a more rational and sane approach to drug use. There is no reason that a program that is much less of a threat to all of our freedoms and liberty shouldn’t be tried in the face of the miserable failure of the “war on drugs”. Perhaps then we’d see the violence inherent in the market created by government prohibition, as well as world record incarceration rates, subside dramatically. We can do this much, much better than we’re doing now.

~McQ


Someone Has To Pay For Health Care “Reform”

Today’s “Health Care Reform” day.

One of the myths Democrats are going to try to continue to promote is that 95% of Americans are getting a tax cut. Of course that means they’re politically prohibited from raising income taxes. But that certainly doesn’t mean that they must refrain from other taxes and fees which will impact 100% of Americans and, by the way, if they’re like the following, will be highly regressive:

The Center for Science in the Public Interest, a Washington-based watchdog group that pressures food companies to make healthier products, plans to propose a federal excise tax on soda, certain fruit drinks, energy drinks, sports drinks and ready-to-drink teas. It would not include most diet beverages. Excise taxes are levied on goods and manufacturers typically pass them on to consumers.

The proposal is also being touted as something which will help pay for “health care reform”:

The Congressional Budget Office, which is providing lawmakers with cost estimates for each potential change in the health overhaul, included the option in a broad report on health-system financing in December. The office estimated that adding a tax of three cents per 12-ounce serving to these types of sweetened drinks would generate $24 billion over the next four years.

Of course the article goes on to state that lawmakers aren’t considering the tax at present, but then the vast majority of our legislators don’t write or read the legislation they pass so saying they’re not considering it doesn’t mean it isn’t being considered by those who will write it (like the CSPI) or won’t be in legislation.

This sort of tax is also seen as a means of modifying behavior because a certain group considers the product it wants taxed as “unhealthy”.

Proponents of the tax cite research showing that consuming sugar-sweetened drinks can lead to obesity, diabetes and other ailments. They say the tax would lower consumption, reduce health problems and save medical costs. At least a dozen states already have some type of taxes on sugary beverages, said Michael Jacobson, executive director of the Center for Science in the Public Interest.

“Soda is clearly one of the most harmful products in the food supply, and it’s something government should discourage the consumption of,” Mr. Jacobson said.

Given that government is now seeking entry into the health care arena in a much bigger way than at present, and its stated goal is to make health care less costly, this fits supports the goal and gives the argument credibility that it wouldn’t otherwise enjoy. Note the phrase I’ve put in bold – it should send shivers down your spine. What sort of precedent would that set? And, what would be next?

Well, here you go:

Health advocates are floating other so-called sin tax proposals and food regulations as part of the government’s health-care overhaul. Mr. Jacobson also plans to propose Tuesday that the government sharply raise taxes on alcohol, move to largely eliminate artificial trans fat from food and move to reduce the sodium content in packaged and restaurant food.

And that’s the proverbial tip of the iceberg. The premise that it is the job of government to modify behavior through taxation (especially if it saves money) has obviously been swallowed whole.

Back to the original point about the myth of the tax cuts for 95% of Americans:

The beverage tax is just one of hundreds of ideas that lawmakers are weighing to finance the health-care plans. They’re expected to narrow the list in coming weeks.

But you can bet that the list won’t be too narrow – someone has got to pay for this. And, with mommy government deciding what you can and can’t eat, you might actually lose some weight. Not because you are necessarily eating healthy food, but because you can’t afford as much anymore. That’s because the one thing you can count on is your wallet will definitely lose weight as this “health care reform” abomination moves forward.

~McQ


This Is “Rich”

I‘m still amazed that many people who put their support behind Obama in the presidential election, are suddenly discovering things about him they don’t like.

Really? Now they discover Obama is a class warrior? It comes as no surprise for those of us who took the time to assess where he came from and what (little) he’d done.

Suddenly, the rich are concerned that the guy they backed may not be what they hoped he was (notice that’s the correct context in which “hope” should be used when “hope and change” is spoken):

Some of Barack Obama’s richest supporters fear they have elected a “class warrior” to the White House, who will turn America’s freewheeling capitalism into a more regulated European system

Ya think? What was your first clue – his remarks about “spreading the wealth” to Joe the Plumber or the thousands of other things he said which might imply such a tendency?

And as an aside, America’s capitalism is about as “freewheeling” as a modern waterslide is “death defying”.

Chris Edwards of the Cato Institute, a free enterprise think tank, said Democrats in Congress were unnerved by the president’s latest plan to raise $210 billion over 10 years from multinational corporations.

The money is needed to pay for a national debt that will double over the next five years; and triple over the next 10 years to $17.3 trillion. But the crackdown already faces fierce Democratic resistance.

“These big companies are based in New York Boston, Seattle and Silicon Valley, where Democrats dominate,” Mr Edwards said. “Obama’s tax plan is already cleaving him from his big corporate supporters,” he said.

The good news in this, of course, is that Congress has to pass the legislation that enables this, and per Edwards, they’re getting cold feet. The reason is also obvious – any “cleaving” of Obama from “big corporate sponsors” also means the rest of the Democrats suffer the same fate.

The level of taxation necessary to pay for the profligate spending now taking place will have to be massive as anyone with a 5th grade education understands. But the Dems also understand that any taxation that takes place must be other than income taxes because it is important to maintain the mirage that “95% of all Americans” are getting tax cuts. That leaves “the rich”, corporations and smoke and mirrors.

The rich have been identified ($250k or more), corporations are on the block with much higher taxation in the offing. So the investor class and the engine of the economy are under assault. The smoke and mirrors show? Wait until health care and cap and tax trade hit. 100% of Americans will be paying large sums for both.

But back to the point – the deeper we get into the Obama administration, the more we come to understand how gullible a good portion of the American public appears to be. There is a certain level of satisfaction with the buyer’s remorse being seen among many of his supporters as they see what their vote has actually bought. I sure hope they don’t shop for other important items as badly as they apparently shop for presidents.

~McQ


About Your Illegal Yard Sale

One of the things I try to consistently feature here at QandO is the depth of intrusion of the federal government into our daily lives. Talk about “mission creep”. There’s little that we do any more that doesn’t seem to involve the government looking over our shoulder and I, frankly, don’t welcome that sort of monitoring or intrusion.

The latest? The Consumer Product Safety Commission has issued a 28 page pamphlet which outlines the result of a recent law (Consumer Product Safety Improvement Act) and its impact.

So if you’re planning on selling your kids old books (or anything else that a kid under 12 might use) and they haven’t been “tested” first, you’re liable to a $100,000 fine. Now I know you’re reading this and saying, “no way. Our government would be that intrusive”.

I guess the best way to counter that is with the CPSC’s own words:

This handbook will help sellers of used products identify types of potentially hazardous products that could harm children or others. CPSC’s laws and regulations apply to anyone who sells or distributes consumer products. This includes thrift stores, consignment stores, charities, and individuals holding yard sales and flea markets.

The next line of defense for those who support this level of intrusion, once that level of intrusion has been exposed in the government’s own words, is “well, how would they enforce it”?

It’s not a bad argument (the answer is selectively), but it misses the real point.

Obviously, it’s unlikely the CPSA goons are going to bust up your yard sale. But putting out a detailed booklet that reserves the right to do so is hardly encouraging about where the implementation of this legislation is heading.

It is about precedent. And, it’s about acceptance. When both are established, it doesn’t require much in the way of the imagination to realize that like any entity which seeks to increase its power, government will soon attempt to stretch the envelope just a little further (further precedent/acceptance).

Wash, rinse, repeat.

~McQ


“Health Care” – Government Will Decide When Enough Is Enough

As you may or may not know, I just sent the last week touring the houses of Thomas Jefferson, James Madison and James Monroe – three of this nation’s founding fathers. So when I glanced through the following interview with Barack Obama I tried to picture any of these three men ever contemplating this question or a role for government in the context of the question and frankly, it’s unimaginable.

The only vision I could even begin to imagine is the three of them looking on sadly and shaking their heads “no” in unison as they tried to grasp the size of government and the depth of its intrusion into the lives of citizens the questions and answers indicated. I’m sure they’d also be trying to figure out where it all went wrong. The questions have to do with “end of life care”:

Q:…where it’s $20,000 for an extra week of life.

THE PRESIDENT: Exactly. And I just recently went through this. I mean, I’ve told this story, maybe not publicly, but when my grandmother got very ill during the campaign, she got cancer; it was determined to be terminal. And about two or three weeks after her diagnosis she fell, broke her hip. It was determined that she might have had a mild stroke, which is what had precipitated the fall.

So now she’s in the hospital, and the doctor says, Look, you’ve got about — maybe you have three months, maybe you have six months, maybe you have nine months to live. Because of the weakness of your heart, if you have an operation on your hip there are certain risks that — you know, your heart can’t take it. On the other hand, if you just sit there with your hip like this, you’re just going to waste away and your quality of life will be terrible.

And she elected to get the hip replacement and was fine for about two weeks after the hip replacement, and then suddenly just — you know, things fell apart.

I don’t know how much that hip replacement cost. I would have paid out of pocket for that hip replacement just because she’s my grandmother. Whether, sort of in the aggregate, society making those decisions to give my grandmother, or everybody else’s aging grandparents or parents, a hip replacement when they’re terminally ill is a sustainable model, is a very difficult question. If somebody told me that my grandmother couldn’t have a hip replacement and she had to lie there in misery in the waning days of her life — that would be pretty upsetting.

“…society making those decisions to give my grandmother … a hip replacment?” Above that he points to a doctor giving who that choice?

His grandmother.

Below that who is Obama talking about making that decision or having that choice? Well it isn’t his grandmother. And although he uses the term ‘society’, he means government. Note he says that if someone had told him no he’d be upset, but he’s setting up the table to be ‘upset’. This is an old Obama trick – acknowledge the downside in a very personal way while still pushing for that downside.

Q: And it’s going to be hard for people who don’t have the option of paying for it.

THE PRESIDENT: So that’s where I think you just get into some very difficult moral issues. But that’s also a huge driver of cost, right?

I mean, the chronically ill and those toward the end of their lives are accounting for potentially 80 percent of the total health care bill out here.

Anyone who hasn’t quite figured out the rationing model Obama is talking about with his answers to these two questions needs to take a remedial reading course. Anyone – where does he see the opportunity to “cut costs” in the medical field?

And, how will he do it. Unless you’re still hungover from celebrating Guinesses’ 250th birthday, he is talking about denial of service especially to the elderly. Government will determine whether or not you’re worth that $20,000 operation. And the “moral issue” he’s talking about is all wrapped up in egalitarianism. What he’s implying may be “immoral” is allowing those who can pay access to the service while those who can’t pay (and for whom government won’t pay) are denied it.

Again, contemplate the model Obama talks about – reducing the cost of health care – and tell me which way that “moral issue” would be decided? Got the money? Too bad – it would be “immoral” to let you buy the service others are denied.

Q: So how do you — how do we deal with it?

THE PRESIDENT: Well, I think that there is going to have to be a conversation that is guided by doctors, scientists, ethicists. And then there is going to have to be a very difficult democratic conversation that takes place. It is very difficult to imagine the country making those decisions just through the normal political channels. And that’s part of why you have to have some independent group that can give you guidance. It’s not determinative, but I think has to be able to give you some guidance. And that’s part of what I suspect you’ll see emerging out of the various health care conversations that are taking place on the Hill right now.

What a question. The assumption is swallowed whole. Where was the question “what if ‘we’ don’t want others making those decisions?”

And apparently you guys in fly-over country are too emotionally involved to make that sort of a decision through “normal political channels” so government have some unelected outside group develop the “guidance.” Only the elite can answer these questions properly.

Three questions, stunning in their implications. Three answers which should make the skin of all lovers of liberty crawl. I’m again left imagining Jefferson, Madison and Monroe listening in on this with unbelieving looks of horror on their faces. The irony is, their opposition to this incredible power grab by government would again leave them in the category of “radical”.

~McQ


Survey Finds Some Americans Not Averse To Price Controls

Very interesting opinion survey from the Center For Consumer Freedom. Essentially it’s about price control. Check out the first three questions and the responses:

B1 Do you think Congress should cap the interest and fees charged on short-term loans at 75 cents a week for a $100 loan?

* YES 56%
* NO 36%
* DON’T KNOW 8%

B2 Cell phones and other mobile devices can be expensive. Would you support a bill in Congress to cap the costs of cell phone service so that lower income families are able to afford these products?

* YES 57%
* NO 41%
* DON’T KNOW 2%

B3 AUTOMOBILES have risen in price dramatically over the PAST TEN YEARS. Inexpensive, high-quality vehicles are harder to find.

Would you support a bill in Congress to cap the costs of certain kinds of cars so that more families can purchase a safe, reliable vehicle?

* YES 55%
* NO 42%
* DON’T KNOW 2%

So, when it comes to items which are expensive and (and I’m guessing here) the public identifies as an industry which makes too much profit (or has been vilified as such), they’re all for capping the price on them (apparently never watching TV and seeing the competing commercials for all of this, indicating market competition has most likely pared those profits down considerably).

Speaking of TVs, and coffee as well, suddenly the public isn’t so hot on capping prices:

B4 COFFEE prices have risen dramatically over the PAST DECADE, with many locations charging more than $3.00 for a basic cup of coffee.

Would you support a bill in Congress to cap the costs of coffee and other hot beverages to a more reasonable level?

* YES 39%
* NO 59%

B5 The price of televisions has risen in the past few years. The government should cap the price that electronics companies can charge for new televisions, since many new technology changes require a new television. Would you say you strongly agree, somewhat agree, somewhat disagree or strongly disagree with this statement?
[RECORD ONE ANSWER]

1. STRONGLY AGREE 18%
2. SOMEWHAT AGREE 21%
3. SOMEWHAT DISAGREE 24%
4. STRONGLY DISAGREE 32%

56% disagree that TVs should have prices capped. And 59% say “no” to capping the cost on a cup of coffee.

I would love to see the reasoning behind the answers given on this survey, because it would appear that if you believe that government should be controlling prices, you wouldn’t differentiate between cell phones and coffee, and certainly not between TVs and cars.

I have to go with my first inclination here – the public is more likely to call for price controls on the products of industries which have been vilified by the press and government. Banks (loans), auto makers and telecommunications have all suffered from various levels of vilification rencently and in the recent past.

Coffee, however, is still “Juan Valdez”.

Unfortunately, even if true, it means that a majority of Americans have no problem with government price controls – it just means they require the industry to be out of favor before they do. And industry “vilification”, as we’ve witnessed lately, that’s certainly something this administration is more than willing to do. Above are your results.

~McQ


Government and Markets

This story typifies, at least to me, the problem we can expect in the health care field if government becomes even more involved than it is now:

Obama administration officials, alarmed at doctor shortages, are looking for ways to increase the supply of physicians to meet the needs of an aging population and millions of uninsured people who would gain coverage under legislation championed by the president.

The officials said they were particularly concerned about shortages of primary care providers who are the main source of health care for most Americans.

One proposal — to increase Medicare payments to general practitioners, at the expense of high-paid specialists — has touched off a lobbying fight.

Family doctors and internists are pressing Congress for an increase in their Medicare payments. But medical specialists are lobbying against any change that would cut their reimbursements. Congress, the specialists say, should find additional money to pay for primary care and should not redistribute dollars among doctors — a difficult argument at a time of huge budget deficits.

The trend for years has been away from general practice and toward specialties. Part of that stems from the fact that specialists are paid more than generalists.

Most of us understand that most of our medical care will take place in our latter years with the obvious exception of certain genetic and chronic diseases which afflict a portion of the younger population. So Medicare, which kicks in at 65 whether you want it or not, is a major payer (and player) to family practice doctors who care for older Americans that make up the bulk of their practice.

With that being the case, we’re seeing fewer and fewer medical students option to become family practitioners, preferring the more lucrative pay specialists earn. The consequent result of low pay, huge patient loads and little recourse for changing that has seen family practice numbers in medical universities drop alarmingly. Why spend all that time and money learning a particular craft when the rewards aren’t as great as you want?

So here we have the market for family practitioners reacting to a distortion in the market created by the government refusing to pay at what the doctors feel is an adequate rate for the treatment of the majority of their patients. The market’s feedback mechanism sends the signal to the potential doctor to look at areas which would be more lucrative than family practice to receive adequate compensation. That area is specialization.

The reason I bring this particular example up is the competing proposals. One say, “hey, if you want more family practitioners, pay them more – that provide the incentive to become a generalist”. On the other hand, there’s a proposal to do that, but to accomplish that increase at the expense of specialists who take medicare.

How do you suppose specialists will react? Well if they do as two of mine have, they’ll simply say, “sorry, we don’t treat Medicare patients”.

And how do you suppose such a decision would effect the number of family practitioners. Well, that would depend on how much they’re willing to increase payments to them.

In the era of massive budget cuts and the promise by government to “decrease” the costs of health care, any increase in my estimation, would by minimal and not enough to change the tide concerning family practice. But taking that increase out of what is paid specialists certainly might be the tipping point for many of them to declare they’ll no longer treat Medicare patients.

Certainly our old friend the Law of Unintended Consequences again at work.

~McQ