BrianGarst.com

Malo periculosam, libertatem quam quietam servitutem.

Author Archive

Thursday

8

October 2015

0

COMMENTS

Getting Better All The Time

Written by , Posted in Economics & the Economy, Free Markets

You wouldn’t know it from the popularity of Thomas Piketty’s anti-capitalism treatise, or the Pope’s routine railing against free markets, but the world is getting ever more prosperous. The dramatic decline in global poverty in the last few decades is nothing short of remarkable.

According to a recent World Bank report, extreme poverty is expected to fall below 10% by the end of 2015, which will be a first in human history. I mentioned a few other improvements in a recent EveryJoe column chastising the Pope for spreading economic ignorance:

Across a variety of metrics, life continues to get better and better. Extreme poverty – measuring those living on $2 per day or less – has been cut in half since 1981 and will be all but eliminated by 2030. Global GDP per person has never been higher. Pick a measure of human wellbeing and it’s virtually the same story over and over again: life expectancy is up, infant mortality rates have plummeted, women are better represented in governments than ever before, etc. etc.

The world is simply not the horrible place the pope describes. It is better than it ever has been and we have precisely those institutions that he savages to thank for it.

Over at Cato, Ian Vásquez ties the decline in global poverty to the spread of economic freedom:

w9iSjkutgZ1UwAAAABJRU5ErkJggg==

Using updated methodology, the World Bank recalculated poverty figures back to 1990. The new data track closely with previous Bank figures, which I use in the graph to show the fall in poverty since the early 1980s when 43 percent of the world’s population was extremely poor…The drop in poverty also coincides with a significant increase in global economic freedom, beginning with China’s reforms some 35 years ago and the globalization that followed the collapse of central planning in the late 1980s and early 1990s.

Much more could be said on that point, but there are any number of examples demonstrated the superiority of market freedom when it comes to producing wealth (Argentina versus Chile, Venezuela versus Singapore, etc.). Yet the more things get better, the more we seem to worry that they’re not. As the totality of social problems decreases, we devote more energy to those that remain. Which in many ways is healthy. A benefit of being better off overall is that we need not tolerate things which we had no choice but to accept in the past.

But we must be careful not to lose perspective. Exaggerating current problems can lead to poor policy choices if it causes us to disregard the means by which we achieved our current prosperity in the first place.

Saturday

15

August 2015

0

COMMENTS

Third Time Won’t Be the Charm in Greece

Written by , Posted in Big Government, Economics & the Economy, Foreign Affairs & Policy, Free Markets, Taxes

Greece is getting bailed out for the third time in just five years, proving yet again that lessons from political mistakes are rarely heeded. As I wrote last month in a column for EveryJoe:

The simple explanation is that Greece tried socialism and it predictably failed, as socialism is wont to do… More specifically, Greece has saddled its economy and its people with heavy taxes to fund a corrupt government weighed down by excessive pensions for their bloated workforce. A byzantine and oppressive regulatory system further stifles growth and prevents the economy from keeping up.

To put some numbers on the problem, Greek debt exceeds 177 percent of its GDP. That means Greeks would have to work almost two years to produce an equivalent amount of goods and services. It’s unfunded future liabilities, which includes generous pensions, tops 875 percent of GDP! Its yearly spending on pensions alone accounts for a whopping 16 percent of Greece’s GDP, and overall the government spends upwards of 50 percent.

If all this proves that Greece is suicidal, it was its entrance into the European Union that gave it the rope needed to hang itself. When it joined the EU, Greece suddenly had access to levels of credit it never had before thanks to the implicit backing of stronger EU economies like Germany. Creditors determined – correctly, apparently – that if Greece couldn’t pay its debt then they would be bailed out by the larger economies. And like a kid that got his hands on his parent’s credit card for the first time, Greece went nuts. In economic terms that’s called a moral hazard, and the latest bailout has only reinforced it.

This week’s announcement of yet another bailout will only exacerbate the moral hazard, and demonstrates the continued folly of the EU’s grand experiment with a common currency without a common fiscal policy.

Continuing to prop up Greece’s bloated government will not solve the problem. There are no good solutions, but the least bad option is for them to go bankrupt and solve the root of their problem, which is excessive government spending.

Instead, Germany and the rich EU nations are offering yet another loan to the demonstrably irresponsible, on condition that they raise taxes and cut spending. Unfortunately, only one of those conditions will help while the other will prove counterproductive. Leftist bleating about ‘austerity’ conflates tax hikes with spending cuts, but the former is bad for growth and saps the political will for belt tightening, while the latter is a proven path toward fiscal solvency.

What Greece needs is to tear down its bloated bureaucracy and insane regulatory regime, but that won’t happen so long as the EU continues acting as enabler.

Tuesday

30

June 2015

0

COMMENTS

Don’t Cry Wolf on Religious Liberty Infringements

Written by , Posted in Culture & Society, Liberty & Limited Government

Respect for religious freedom has deep roots in American society. Many of those who came to America did so to escape religious persecution, and they brought with them a profound understanding of the importance of protecting such personal rights from oppressive rule, be it by the hand of monarchy or democratic majority. Thus why Constitutional protections for religious freedom were included in the First Amendment.

Yet many areas where religious freedom is said to be under attack are actually examples of a different sort of problem. No one should be forced to make a gay wedding cake, for instance, simply because they make their living as a baker (assuming they are their own employer). The idea that one must sell to all in order to sell to any contradicts basic Constitutional tenets, yet is an idea that has wormed its way into Constitutional doctrine thanks to the misguided idea of “public accommodations” in non-discrimination law, and long eviscerated protections for economic liberty. Focusing on the subset of cases where objections are made on the grounds of religious sensibilities misses the larger issue, which is that the freedom of association and basic liberty should allow all the right to choose with whom they do or do not engage in commercial exchange – for any reason, be it religiously motivated or not, that the individual sees fit.

But there are also ways in which religious freedoms are actually in danger of being undermined today. Under the direction of Houston’s first openly gay mayor, Annise Parker, the city last year subpoenaed sermons and other pastoral communication from local churches. They were ordered to turn over any communication relating to a contentious local non-discrimination law, as well as “all speeches and sermons related to Mayor Annise Parker, homosexuality and gender identity.” She backed down after national uproar over the flagrant abuse of power, but the episode is both illuminating and disturbing.

Religious concerns from the fallout of Obergefell are also not without merit, as admitted by U.S. Solicitor General Donald Verrili when he acknowledged during oral arguments that tax-exempt status “is going to be an issue” with the Court’s potential (and now real) ruling that the exclusion of same-sex couples from marriage (rightly) violates Constitutional protections. The ACLU has also decided that it’s no longer on board with the whole religious freedom thing now that Christians might be the ones in need of legal protections. And given the proven vindictiveness of today’s cultural winners, more attacks ought to be expected.

Which is all the more reason why it’s a shame that some Republicans, along with the Texas Attorney General, are insisting that county clerks in Texas or elsewhere ought to be able to be able to “opt out” of issuing same-sex marriage licenses if they have religious objections. This is a misapplication of religious liberty.

Look, we’re not talking about clergy or non-state wedding officiators here, who like bakers ought to be able to decide whether they wish to take part in a same-sex wedding or not. These are people whose job it is to process paperwork and issue wedding licenses. County Clerks are municipal employees, be they elected or appointed, and therefore agents of the state. And agents of the state don’t get to dictate actions of the state based on personal whims. If they won’t or can’t do the job required of them and fulfill their duties as public servants then they ought to resign.

Individuals have every right to not work at a place that requires issuing same-sex marriage licenses, but what they don’t have is the right to insist that they not be replaced by someone who will do the entire job and not just part of it. Anyone with true convictions should understand that sometimes upholding those beliefs means making sacrifices, including not working at places that as a fundamental part of the job necessitate violating those beliefs.

There are real threats to religious freedoms, and those who might wish to meet those threats with robust Constitutional protections shouldn’t try to expand the concept to its breaking point. I’m sure it’s not easy to have to choose between honoring ones principles or performing a duty that one currently under obligation to perform, but there’s no Constitutional right to not have to make tough choices.

Saturday

18

April 2015

0

COMMENTS

Everyone Wants a Simpler Tax Code, Right?

Written by , Posted in General/Misc.

It seems obvious. The tax code is a complicated mess that everyone agrees should be simplified. Yet it doesn’t happen. Why not?

As it turns out, quite a few people don’t want to be rid of the current code, as I explain in this recent column at EveryJoe.

Sadly, tax code opacity and complexity is seen as a feature by the ruling class. The problem has been understood for decades yet only ever gets worse. Nothing gets done about it because politicians and the parasite class benefit tremendously from the complexity of the tax code, and as far as they are concerned, the less that you know is being taken from your wallet, the better.

First and foremost, a complex tax system makes it easier for politicians to reward their friends and allies by auctioning off loopholes in exchange for campaign dollars. K Street is filled with lobbyists that make a mint off of securing favorable tax treatment for special interests. These deals only work because no one on the outside can possibly track what any particular change to an obscure section of the byzantine tax code means in the real world.

Another significant political benefit of the withholding system is that it reduces the taxpayer anger toward Washington that would otherwise be felt during tax season. Paradoxically, some taxpayers even look forward to tax day because they will get a refund! What’s not great about getting money, right? Nevermind that it was money they worked for in the first place, and that by overpaying the IRS throughout the year they’ve effectively reduced the value of their earnings (there’s no interest from forced loans to the IRS). Yet taxpayers still perceive the influx as a positive event, and that’s good for politicians who like to tax and spend.

Find the rest of the piece here.

Thursday

19

March 2015

0

COMMENTS

Shut Up and Give Me My Coffee

Written by , Posted in General/Misc.

Would you like that with cream, sugar, or a lecture on race relations? The Starbucks CEO seems to think his customers are clamoring for the latter, as that’s what he’s offering with a campaign called ‘Race Together:’

In a video message, Schultz urges “partners” to write the phrase on their paper cups “to facilitate a conversation between you and our customers.” A USA Today supplement, set to be published March 20, includes a number of “conversation starters,” including the fill-in-the-blank question: “In the past year, I have been to the home of someone of a different race ___ times.”

Here’s a thought, how about you just shut up and give me my coffee.

That’s probably giving too much credit to the impact this PR-aimed initiative will have on most customers, but do we really need yet another conversation on race that goes nowhere? How many of these unproductive conversations must we have before it begins to sink in that obsessing over race at all times is part (though just a part) of the problem?

And must every economic transaction come attached with social and moral grandstanding, as is the current trend (with Starbucks being a prolific offender)?

One of the great values of the free market is that the incentives are toward tolerance. At times in the past that incentive has been overwhelmed by stronger social prejudices, but trade still promotes tolerance. And that’s because it allows people to interact that otherwise don’t like one another (for whatever reason). Trade strips transactions down to their core of value for value and thereby reduces social conflict.

Americans disagree with their peers on a lot of issues, and yet in most contexts it doesn’t matter. But if every economic transaction must be accompanied with exchanges of social and political values, some of those exchanges will inevitably result in unnecessary conflict. Society would become more fractured, not less.

On the other hand, here we all are talking about Starbucks. Even if it’s just to slam their CEO’s ham-fisted attempt at playing white savior, I suppose that’s an advertising win.

Wednesday

18

March 2015

0

COMMENTS

Obama’s Warped Perspective

Written by , Posted in Big Government

President Obama is calling on young people to have some perspective about this whole marijuana business. When asked in an interview with Vice about marijuana legalization, their audience’s “number one question,” he went into lecture mode:

First of all it shouldn’t be young people’s biggest priority. Let’s put it in perspective. Young people, I understand this is important to you. But you should be thinking about climate change, the economy, jobs. War and peace. Maybe way at the bottom you should be thinking about marijuana.

So Obama wants to focus on issues where (he thinks) the public supports more power and control for government, and not an area where it clearly and in growing numbers wants less. Is anyone really surprised?

You have to give it to him. He is a committed ideologue. Nothing is more important than expanding the state.

Friday

6

March 2015

0

COMMENTS

Rule of Law on Trial in King v. Burwell

Written by , Posted in Health Care, Welfare & Entitlements, Liberty & Limited Government, Taxes, The Courts, Criminal Justice & Tort

You might think King v. Burwell is just about Obamacare. To be sure, the ruling could profoundly impact the law if nothing else is done. Though depending on how legislators react, even a finding in favor of the challengers could be made to have no real impact at all.

But what will certainly have an impact is a finding in favor of the government. Endorsing their position would be a huge blow against a most basic tenet of our representative system. I wrote about this in my latest column for EveryJoe.

…If the court rules in favor of the government, it will mean that the executive branch is free to rewrite legislation despite the clear meaning of a law if they can plausibly argue that the consequences for not doing so would be negative. It is, at its core, a case about who gets to write the law.

It’s true that Congress typically gives the Treasury department more latitude than typical because of the complexity of the tax code. But where Congress has not said to fill in the blanks, Treasury must follow the law, as must any other agency within the executive branch. To allow otherwise would undermine a fundamental principle of our government: that we are a nation of laws, which are created by elected representatives.

As an example of what to expect if the court allows for erosion of the separation of powers, consider the current call by Sen. Bernie Sanders – self-described socialist – for the White House to rewrite the tax code without Congress.

He wants Obama to declare by fiat the elimination of certain “loopholes.” But what are commonly referred to as “loopholes” are really just particular policy choices made by elected leaders. They can be either good, such as those which alleviate double taxation, or bad, such as those which provide special handouts for politically favored businesses. Regardless, they are part of the tax code which Congress has created, as is their legal prerogative. If they don’t like it they should legislate a new tax code, and if we don’t like it we can vote them out of office.

…This White House has been open about its desire and willingness to rewrite the law as Obama sees fit in order to advance his agenda. And his spokesman responded favorably to Sen. Sanders suggestion, saying that Obama is “very interested” in unilaterally hiking taxes. If the court rejects the latest challenge to Obamacare and finds in favor of the government, it will only serve to embolden his efforts to unconstitutionally transform the nation.

The whole piece is available here.

Sunday

22

February 2015

0

COMMENTS

Safety is Overrated

Written by , Posted in Big Government, Culture & Society, The Nanny State & A Regulated Society

Modern obsession with risk avoidance is threatening our liberty and harming the development of future generations. I explain in my most recent column at EveryJoe:

Society overrates the prevalence of criminal and physical dangers to children, so parents fail to realize that it is the relative safety of their own children in their day-to-day activities that even allows them to obsess about the smallest of dangers. The playground equipment that many of us grew up on and survived just fine, for instance, is being torn down or cemented into place by panicked governments, and replaced with safety-first boregrounds that no child wants to use.

Aggressively trying to eliminate all risk that children face is likely to create more problems than it solves. Overzealous government bureaucrats and helicopter parents that refuse to grant their children any independence are doing the next generation a disservice. Obsessing over even tiny risks leads to decisions that deprive children not only of fun, but of opportunities to learn independence, confidence, and self-reliance.

It’s not just little kids we’re coddling, either. Universities – once a bastion for free wheeling debate, intellectual confrontation, and experimentation – are increasingly stifling debate and insulating students from any difficult experience by insisting on so-called “safe spaces.”

Today, any time an event features a speaker that doesn’t toe the politically correct, “progressive” line, it faces ritual denunciation by students and faculty alike. Assuming a speaker is not outright disinvited, the event may be accompanied by school administered “safe spaces” and counseling services for student traumatized by the mere presence of different views, as happened last year at Brown when a debate participant had the audacity to oppose the dubious rape culture narrative.

You can read the rest here.

Wednesday

4

February 2015

0

COMMENTS

Is Government Sanctioned Theft on the Chopping Block?

Written by , Posted in General/Misc.

The government gets away with a lot that clearly violates the rights of the people. My most recent column at EveryJoe considers whether it might be getting away with a little bit less in the near future.

First, the good news. The Supreme Court agreed to hear a case that could have significant impact on property rights. It’s brought by California raisin farmers who were fined massive amounts by the government simply for selling their crop. You see, in America – the land of the free and the home of the brave – it’s rarely ever true that you can juts make a product and sell it. You must jump through hopes to produce your goods, then jump through more to sell them.

…Raisin farmers were promised a return on their forced contributions, but over time saw ever dwindling returns. In 2003 the government confiscated 47% of their crops and provided zero compensation. Let me say that again. The government stole nearly half of all raisins produced without compensating farmers at all.

…When it hears the case later this year, the Supreme Court has the opportunity to breathe life back into the Takings Clause and make clear that the law does not allow for such blatant government theft.

The other bit of positive news comes from an unexpected source. As one of his last acts as Attorney General, Eric Holder recently announced new restrictions on civil asset forfeiture, which allows police and prosecutors to take money and property from citizens never convicted of a crime if they can plausibly argue a tangential relation of the property to a suspected crime. It is then put on the citizen to prove their innocence, or more specifically, the innocence of their property. And I kid you not, the government actually “charges” the property in question, which results in bizarre case names like United States v. $124,700 in U.S. Currency or Nebraska v. One 1970 2-Door Sedan Rambler (Gremlin).

…In apparent response to this growing awareness, Holder’s order declared that “Federal adoption of property seized by state or local law enforcement under state law is prohibited.

But there are some important caveats to both pieces of news, which you can find out by reading the whole thing here.

Thursday

29

January 2015

0

COMMENTS

The Carbon Tax Schism

Written by , Posted in Taxes

The center-right tends to be united on issues of taxes. We’re against them. But there’s a push from some among this coalition – like the R Street Institute, and the newly formed Niskanen Center – to put a tax on carbon. Do they think Americans need to be taxed more? Have they been bought out? Have they suddenly gone insane? The answer to all three is absolutely not. Their arguments are based on the presumption that burdens can be shifted from economically destructive taxes like those on income and capital and put on far less destructive, and perhaps even beneficial, taxes like those on carbon. In theory I agree, but political reality must be taken into consideration.

The economics are sound. The politics are not. The problem is that any gains would only last until the next Democratic majority, which would raise the income/capital taxes right back to their previous level or higher. Then we’ll have our current taxes plus a carbon tax. And that’s a step back, not forward, for advocates of limited government.

I explain more in depth in my recent column for EveryJoe:

To understand where they go wrong, we must first consider the case for a carbon tax. Obviously, supporters start from the assumption that carbon is bad and that we want less of it; if they thought otherwise we wouldn’t be having this discussion. In economic parlance, they identify carbon production as a negative externality, meaning it places costs on those not involved in the economic transaction from which it was produced…

The most market-friendly solution … is the Pigovian tax. Simply put, by taxing activities responsible for negative externalities, market participants are forced to price in its full costs, thereby reducing supply and correcting a market inefficiency.

…After carbon taxes are collected, conservative supporters argue they can be used to reduce other, more destructive taxes. As mentioned, when you tax something, you get less of it. This means that taxes on things that are good – like work, savings or investment – are particularly harmful to the economy. Replacing taxes on good things with taxes on bad things thus makes a lot of economic sense. Unfortunately, it’s just not that simple.

You can read the rest here.