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Friday

1

February 2013

No, Defense Spending Decline Not Behind Lackluster Economy

Written by , Posted in Big Government, Economics & the Economy

President Obama has found a new way to blame Republicans for his poor economic record. The government released preliminary GDP numbers for the 4th quarter of last year, and they were not good. The popular spin coming from the White House, his ideological echo chamber and the sycophantic media has been that government spending cuts, namely to defense, are to blame. In other words, it’s the fault of those wascally Wepublicans.

The claims being made are partly true, in that reducing government spending will, at least in the short run, reduce GDP. But that’s a tautology – GDP is defined to produce that result. It tells us nothing about the drivers of economic growth. Where the claims go wrong is in asserting that the same relationship exists between government spending and actual economic health. GDP is just a tool for measuring the economy, and it’s not even the best one. Dan Mitchell explains:

GDP numbers only measure how we spend or allocate our national income. It’s a very indirect way of measuring economic health. Sort of like assessing the status of your household finances by adding together how much you spend on everything from mortgage and groceries to your cable bill and your tab at the local pub.

Wouldn’t it make much more sense to directly measure income? Isn’t the amount of money going into our bank accounts the key variable?

The same principle is true – or should be true – for a country.

That’s why the better variable is gross domestic income (GDI). It measures things such as employee compensation, corporate profits, and small business income.

These numbers are much better gauges of national prosperity.

Consider this. We are being asked to believe that the US economy took a hit because the government spent less on defense. For that to be true, we must accept the flip side that defense spending grows the economy? But is that true? Certainly defense spending, up to a debatable level and excluding waste, has value to society in that it protects us from harm. But that’s not the same as making us wealthier. In fact, we accept that we are sacrificing a bit of wealth to pay for security. But let’s not pretend there’s no sacrifice at all – that we wouldn’t have an even higher standard of living if government wasn’t taking that money in the first place. Of course we would. Every tank is a neighborhood never built, or an office building that couldn’t be funded, or a business that wasn’t be expanded.

Put another way, if defense spending grew the economy, then all it would ever take to end a recession is to increase defense spending. That’s essentially the Keynesian stimulus argument, though for ideological reasons they typically prefer other forms of government spending than defense. But that’s not how the economy works.

The point is that how we measure things can deceive us if we do not differentiate the statistical tool itself from the thing it is measuring. The economy does not grow because government redistributes wealth, it grows when capital accumulated through savings and investment is put to use.

Saturday

26

January 2013

About Those Non-Recess “Recess Appointments”

Written by , Posted in The Courts, Criminal Justice & Tort

The president of the United States, who heads the executive branch, does not have the authority to determine when Congress, the legislative branch, is or is not in session, according to a unanimous DC Circuit Court. Reaching the correct decision, the court found that the administration’s appointments to the NLRB were illegal:

A federal appeals court has unanimously slapped down President Barack Obama’s unprecedented claim that he can decide when the Senate is in session.

“Considering the text, history and structure of the Constitution, these appointments were invalid from their inception,” said the three-judge decision, written by U.S. Circuit Judge David Sentelle.

…The Jan. 25 ruling came after Republican senators filed a case arguing that Obama did not have the power to appoint top-level officials via a “recess appointment” if the Senate says it is in session.

Obama made that claim when he announced the appointment of two people to the National Labor Relations Board in January 2012.

The appointments allowed the board to subsequently issue a series of pro-labor, anti-business decisions. Following the court’s ruling, the board’s decisions are now vulnerable to a series of lawsuits.

The question was whether, for the purpose of recess appointments, the executive could decide what level of activity was necessary for a legislative session to be legitimate. Basically, if Senators wants to sit around all day reading newspapers instead of doing work, that’s their prerogative, and the President has no legitimate power to determine that they aren’t doing enough work to actually be considered in session. The President insisted he could, but the court sided with the view that because Congress sets its own rules, it is the sole authority on whether or not it is in session.

The administration’s political justification – that they were simply responding to Senate reaction – was also faulty. The non-recess “recess appointments” were made in January of 2012, but  2 of the 3 had only been submitted a month prior, and the Senate had not yet received all the required information to begin. As I said at the time:

This line of reasoning renders meaningless the entire concept of Advice and Consent. What is the point of even requiring Senate confirmation if the refusal of the Senate to do so just means that the President should go around them? If the Senate is expected to be nothing more than a rubber stamp, then the whole process is a massive waste of time.

Despite the legal preservation of the separation of powers and having the kibosh put on yet another attempted power grab by the executive, the larger problem with the concept of the recess appointment remains. As I also said before:

Although there are legitimate concerns with agencies being left unmanned by Senate inaction, I’m more inclined to view the idea of the recess appointment as the bigger problem here. It made much more sense when originally conceived, as the legislature was a part time body which might be out of session for months at a time. Such is simply not the case anymore. Today we have a full time legislature that rarely recesses for more than a few weeks at a time. There are few if an vacancies that are so critical they would have to be filled before the Senate soon returned to session. And if the Senate refused to do so for poor reasons, that’s a political issue best sorted out by voters at election time.

The last point is worth repeating. If the President feels the Senate is not acting sufficiently fast enough for his tastes, that’s a political matter to be resolved by political means. The public can decide who is right and who should be punished. Doing an end run around the Constitutional arrangement to have the Senate provide Advice and Consent, on the other hand, is not the appropriate response. And now we have confirmation that’s it’s not a legal one, either.

Thursday

24

January 2013

Economic Luddites Blame Obama Economy On Technology

Written by , Posted in Economics & the Economy

Many of us mocked the president when he blamed ATM’s for his poor economy. Now, a pair of Luddites at the AP are working hard to continue the attack on technology as the source of our economic ills, conveniently distracting attention away from the failed policies of the president.

They write that, “The uncomfortable truth is technology is killing jobs with the help of ordinary consumers by enabling them to quickly do tasks that workers used to do full time, for salaries.” The horror! They go on to make sure you understand that your greedy and selfish desire to save time and live a more prosperous life are to blame:

Use a self-checkout lane at the supermarket or drugstore? A worker behind a cash register used to do that.

Buy clothes without visiting a store? You’ve taken work from a salesman.

Click “accept” in an email invitation to attend a meeting? You’ve pushed an office assistant closer to unemployment.

Book your vacation using an online program? You’ve helped lay off a travel agent. Perhaps at American Express Co., which announced this month that it plans to cut 5,400 jobs, mainly in its travel business, as more of its customers shift to online portals to plan trips.

Software is picking out worrisome blots in medical scans, running trains without conductors, driving cars without drivers, spotting profits in stocks trades in milliseconds, analyzing Twitter traffic to tell where to sell certain snacks, sifting through documents for evidence in court cases, recording power usage beamed from digital utility meters at millions of homes, and sorting returned library books.

You see, all your newfangled technology has eliminated jobs! Don’t you feel bad yet?

Of course, if the AP really believes that hiring expensive workers to do what can be done cheaper and better by technology is the way to promote a strong economy, then they should lead by example. I have some suggestions:

  1. Require employees to use a pulled rickshaw instead of cars. How can they morally justify driving when they are depriving someone the opportunity to pull them around wherever they want to go?

    Backward is forward!

  2. Burn all company computers, replace them with typewriters and hire typists to take dictation. It’s not fair for writers to also transcribe their words, depriving someone else of the opportunity to do so. Nor should they benefit from modern conveniences like word processors and spellcheck, which reduce the amount of editors needed.
  3. Ban the pushing of elevator buttons by employees and instead hire operators. It’s unconscionable to take advantage of technology that allows riders to operate elevators when it used to require someone standing on an elevator all day pulling a lever.
  4. Speaking of which, every door must have its own doorman and bathroom its own attendant. Want to open a door or wipe your butt for yourself? You must hate jobs!

On and on it could go. The list of activities made easier, and jobs made obsolete, by technology is nearly endless. And contrary to the new economic luddites, it’s neither new nor alarming.

Great leaps forward in prosperity and standards of living come on the heels of massively disruptive technological advances. It once took the vast majority of available labor just to feed the nation’s population. When technology made farming less labor intensive, the work force was freed up to produce in new ways. The industrial revolution was the result. As advances in manufacturing have over time continuously allowed us to produce more with less, labor has been freed up to engage in other activities. The information revolution soon followed.

But from now on, we are lead to believe, those freed from one task by technology have no other task to tend to. History stops today. There is nothing left to do. We’ve built everything. Invented everything. Provided every service. Created every piece of entertainment.

Does anyone really believe that?

When all is said and done, the only real “evidence” provided in the piece for the end-of-all-new-jobs thesis is that job growth is slow at present. But might not there be other explanations? Just spitballing here, but how about an onerous and recently passed health care law? A cumbersome and destructive tax code? A critical mass of costly regulations?

Or we can just blame the robots.

Saturday

19

January 2013

Overgovernment: Terrorist Tots Edition

Written by , Posted in Big Government

The fine folks in Pennsylvania’s Mount Carmel Area School District are at the front lines in the fight against terrorism, uncovering a budding young terrorists in our midst:

Talking with a friend about a pink toy bubble gun got a five-year-old kindergarten girl in the Mount Carmel Area School District labeled as a terrorist threat, according to an attorney.

The incident occurred Jan. 10 while the girl was waiting in line for a school bus, said Robin Ficker, the Maryland lawyer retained by the girl’s family. He would not identify the girl or her parents, but gave this version of events:

Talking with a friend, the girl said something to the effect “I’m going to shoot you and I will shoot myself” in reference to the device that shoots out bubbles. The girl did not have the bubble gun with her and has never shot a real gun in her life, Ficker said.

Elementary school officials learned of the conversation and questioned the girls the next day, Fickler said. He said the girl did not have a parent present during the 30 minutes of questioning.

The result, he said, was that the student was labeled a “terrorist threat” and suspended for 10 days, Ficker said. The school also required her to be evaluated by a psychologist, Ficker said.

The sentence was later reduced to two-days suspension, and the terrorist label dropped in exchange for “threat to harm another student.”

But even if the bleeding hearts are now going easy on this dangerous five-year-old kindergarten student, it’s good to know our government is ever vigilant against the threat of terrorism. For the children.

Saturday

5

January 2013

Cash For Clunkers – As Bad For The Environment As It Was The Economy

Written by , Posted in Big Government, Economics & the Economy

The economic failure of the Cash for Clunkers program are well understood, despite the administrations insistence it would function as economic stimulus. But the administration also trumpeted environmental concerns as a reason for instituting the subsidy program. So how did it do on that front? Miserably:

According to E Magazine, the “Clunkers” program, which is officially known as the Car Allowance Rebates System (CARS), produced tons of unnecessary waste while doing little to curb greenhouse gas emissions.

The program’s first mistake seems to have been its focus on car shredding, instead of car recycling. With 690,000 vehicles traded in, that’s a pretty big mistake.

According to the Automotive Recyclers Association (ARA), automobiles are almost completely recyclable, down to their engine oil and brake fluid. But many of the “Cash for Clunkers” cars were never sent to recycling facilities. The agency reports that the cars’ engines were instead destroyed by federal mandate, in order to prevent dealers from illicitly reselling the vehicles later.

The remaining parts of each car could then be put up for auction, but program guidelines also required that after 180 days, no matter how much of the car was left, the parts would be sent to a junkyard and shredded.

Shredding vehicles results in its own environmental nightmare. For each ton of metal produced by a shredding facility, roughly 500 pounds of “shredding residue” is also produced, which includes polyurethane foams, metal oxides, glass and dirt. All totaled, about 4.5 million tons of that residue is already produced on average every year. Where does it go? Right into a landfill.

Another terrific showing by central planners.

Thursday

27

December 2012

Why Are New York Gun Permits Public Information?

Written by , Posted in Gun Rights, Liberty & Limited Government

There’s been significant uproar since a New York newspaper published a database of permit holders for handguns within its readership area. The decision to treat gun owners as sex-offenders is indeed worthy of criticism, and there’s no valid public benefit for exposing the privacy of citizens in such fashion. But it seems to me the bulk of the criticism ought to be directed at another target – the government of New York. They should not have ever made this information available in the first place.

The newspaper in question merely collected and put into easily accessible form information that was already publicly available by Freedom of Information Act request. They had no valid reason to do even this beyond cheap sensationalism, but it ought to be the government that is held most responsible. The information was none of the newspaper’s business and never should have been available to it in any form.

People must be free to exercise their rights without undue fear of intimidation tactics by intolerant political opponents. It is for this reason that we have secret ballots. If the government is going to require permits for the exercise of particular rights, a highly dubious and questionable practice to begin with, we ought to all at least agree that they will keep the information to themselves.

Some states, like Florida and Illinois, exempt such information from FOIA requests. New York and any other state that has not yet enacted the same protections to ensure the privacy of law-abiding citizens must immediately do the same. It is simply not the place of government to track and make public the lawful activities of the people.

Friday

21

December 2012

Michael Moore Admits Guns Don't Cause Crime

Written by , Posted in Gun Rights

A shocking thing happened today – Michael Moore acknowledged guns don’t cause violence. He doesn’t realize it, but he did it nonetheless.

A lot of folks are focusing on Moore’s claim that Americans own guns because they are racist. Certainly it was a stupid thing to say, but I also found it rather mundane in its predictability. What I found more interesting was his acknowledgment that there is little violence in areas where guns are most prolific. Here’s what he said, with the key section in bold:

“I think we’re a very frightened people. I think we’ve been frightened ever since we landed on these shores. …

And I was fascinated in that subject when making ‘Bowling for Columbine,’ of how fear is used to the point where everybody feels like they’ve got to have a gun in the house. Now, not every house has a gun but we’ve got over a quarter-billion guns in people’s homes. And they’re mostly in the suburbs and rural areas where there is virtually no crime and no murder. So why is that? What are they really afraid of? What do they think of — who’s going to break into the house? Do they think it’s little freckled-face Jimmy down the street? I don’t think so. I don’t think that’s who they’re afraid of. And it cuts down to the heart of our race problem that we still haven’t resolved. And I thought it would be interesting to take a look at that in the movie.”

So, “there is virtually no crime and no murder” where there is the most guns? Doesn’t that kind of blow up the whole premise of gun control?

Thursday

20

December 2012

Stop and Think Before Acting

Written by , Posted in Culture & Society, Gun Rights

At times of mass hysteria, rational voices must speak up and urge calm. And what we are seeing now in the wake of the Sandy Hook Elementary massacre can safely be described as mass hysteria.

The media’s anti-gun agenda is clear, and is entirely out of proportion with the facts. For instance, there have been almost 500 murders in (gun-free) Chicago this year, or the equivalent of approximately 19 Sandy Hook massacres. But that gets little to no coverage. The reality is that mass shootings of the type that occurred in Newtown, CT, as shocking as they are, amount to a negligible risk, and are dwarfed by other kinds of violence and more mundane causes of mortality (traffic fatalities in the US last year equaled approximately 1,245 Sandy Hook shootings). It’s not just the leftists in media, either. Joe Scarborough has basically lost his mind and is eagerly throwing freedom under the bus to pander to his audience.

But the media isn’t the only source of hysteria at the moment. Lawmakers, who actually have the power to produce real damage with their overreactions, are throwing around a host of awful ideas. It’s not just the usual and pointless effort to ban scary looking guns – so-called “assault weapons” that are distinguishable from other guns only by cosmetic features – though they want to do that too. The most moronic and hysterical idea I’ve seen to date comes courtesy of Sen. Boxer, who wants to deploy the national guard to schools.

The last time the nation collectively freaked out and made policy in response to an incredibly low likelihood event the result was the TSA – an ineffective and costly bureaucracy that seemingly finds new ways to violate our rights with each passing day.

Schools are, statistically speaking, one of the safest places for children to be. We don’t need armed troops parading the halls. We don’t need to wall them up and turn them into prisons. For God’s sake people, calm down.

Here, have some more perspective:

After spikes in the 1990s and 2000s, both in the number of deadly shootings and victims, mass public shootings have followed no discernible trend. The number of shootings rose in the early 1990s, then dropped just as precipitously. A decade later, it happened again.

In spite of high-profile cases of the past few weeks, there hasn’t been an uptick in mass shootings this year, said James Alan Fox, a professor of criminology, law and public policy at Northeastern University. Fox tracks mass murders dating back to 1976 and said most occur inside places such as homes and workplaces. But he said public shootings in restaurants and malls are nothing new.

“It’s awful,” Fox said. “Yet this is not an epidemic and we’re not seeing a new upward trend.”

In schools, where public angst over shootings is often highest, the truth is actually more definitive: Deadly shootings are rare and getting rarer.

School shootings have declined dramatically over the past few decades, even as attacks such as those at Columbine High School in Colorado in 1999 and Scotland’s Dunblane Primary School in 1996 have loomed large in our imaginations. The early 1990s were among the worst years for school killings, as gang-related incidents “spilled over into schools,” Fox said.

After reaching a high of 63 deaths in the 2006-2007 school year, the number of people killed in “school-associated” incidents dropped to 33 in 2009-2010 – the lowest in two decades, according to the U.S. Department of Education.

While a few dozen children are killed each year in school, statistically speaking it remains the safest place a child will likely ever be, with the lowest chance of being killed. “When you consider the fact that there are over 50 million schoolchildren in America, the chances are over 1 in 2 million, not a high probability,” Fox said. “And most cases that do occur are in high schools and less so in middle schools – and hardly ever in elementary schools.”

So lawmakers, please stop and think before acting. For the rest of you, calm down and don’t encourage foolish lawmakers with knee-jerk demands to “do something.”

Friday

14

December 2012

Easy Answers Rarely the Best

Written by , Posted in Culture & Society, Gun Rights

An awful, horrific thing happened today – the mass murder of innocent children.

The response to the tragedy is predictably one of mourning. Some people process such traumatic events by reflecting, others by lashing out in anger at the perceived cause. All are understandable methods for dealing with such an horrific event, but we shouldn’t let our immediate emotions lead us to knee-jerks demands to limit freedom.

Many of those reacting to today’s shooting at an elementary school in Newtown, Connecticut want us to finally have that debate about gun control. But since we’ve been debating gun control nonstop for decades, I assume what they actually mean is that we should stop debating gun control and start doing gun control, implementing whatever happens to be their preferred level of restrictions. Forgive me for not immediately jumping on board that train without first actually discussing the matter.

But perhaps before we begin yet another discussion about guns with all the same arguments,  we can start with a discussion of what problem(s) today’s event actually exposed. I wonder, is the presence of a gun really the biggest problem people see with what happened today? What about the society that birthed and raised the person who could do such a thing? Can we perhaps spend a little time talking about that? Or given reports that the shooter may have a mental illness, perhaps we should look at how we deal with such people. It seems to me that the polarizing issue of guns has obscured so many other, perhaps more important, factors at work.

Guns provide an easy answer, but not a particularly good one when actual evidence is considered. Focusing on access to weapons furthermore doesn’t require any self-reflection. It requires no questioning of just what we are all capable and how social pressures work to restrain our impulses in ways that allow us to live together as a community, much less where they have seemingly gone wrong. It’s far easier to avoid all of that mess and just demand new gun control laws. But doesn’t the evidence suggest that there are other factors at play?

We might want to consider, and I know this will be hard for many to accept, that there is no easy public policy solution. Not every social ill can be solved with government legislation. I don’t have all the answers, but I can’t help but feel that the proliferation of moral relativism, replacement of civil society institutions with less personal government institutions, and the general erosion of social cohesion – perhaps related to technologically driven changes in human interaction – are possibly playing a part in the seemingly increasing frequency with which young, disaffected males are committing mass atrocities (as it turns out, guns are not the only relevant commonality). These are just some of the possibilities that immediately come to mind, and I’m sure others can contribute many more possibilities than I, so perhaps we should first identify all the problems before demanding that somebody do something.

We would also do well to keep some perspective, perhaps by remembering that despite recent events violent crime in the US is on a 40-year long decline, and that gun crime in particular is at a 45-year low.

If and when we are eventually ready to talk about potential solutions we must weigh without excessive emotion the costs and benefits of taking any particular action. After all, life is not and cannot be made to be risk free. So we must ask: should we really sacrifice some of our freedoms to enhance our security, or the illusion thereof? Will the intended goals of any action actually achieve those goals, or does the evidence suggest it is merely wishful thinking? We should also be cognizant of the fact that laws born out of emotional demands to do something tend to have the worst unintended consequences. Finally, what if anything can we do as members of society that doesn’t necessarily involve the force of government?

Today’s shooting represents the worst of human capabilities, but it also serves to remind all of us of our inherent vulnerability and, we can hope, our shared humanity.

Tuesday

11

December 2012

Reuters Doesn’t Understand What a Right Is

Written by , Posted in Labor Unions

For the title of dishonest headline of the day I submit this gem from Reuters: “Michigan votes to restrict union rights.”

And how did Michigan “restrict union rights”? By telling people they don’t have to join a union if they don’t want to?

In reality, what Michigan’s new Right to Work law does is enhance individual rights – in particular the rights to earn a living and free association, which both protects our right to associate with others and our right not to associate with others however we may see fit. The law ends the long-standing political handout to unions of forced membership by protecting true individual rights.

Unions should be allowed to exist in a free society just like any other voluntary group, but they should have to earn their membership by providing a worthwhile service, not through forced conscription. The legal system should not weight the system in their favor as it has done, and correcting that distortion is not a “restriction” on union rights, as the Reuters spinmeisters would have us believe.

Now that unions will have to actually work to get new members and keep their existing ones, they might be more accountable and actually spend more than just a tiny share of their dues on representing their members – the supposed reason unions exist – rather than primarily on cushy union salaries and lining the pockets of politicians.