Archive for November, 2009
Just Say “No” to Competition
The Democrats who still control the Virginia State Senate (which wasn’t on the ballot this week) say they want to work with the new Republican governor.
“I won’t be like the House Republicans were, where anything they propose is bad,” said Senate Majority Leader Richard L. Saslaw (D-Fairfax), who like many Democrats says the GOP-led House obstructed the agenda of Gov. Timothy M. Kaine (D). “If there are areas where we can work things out, I’m ready, willing and able, and so is my caucus.”
But not so fast:
But asked about certain key pieces of McDonnell’s agenda, Saslaw demurred. Selling state-run liquor stores to raise money for transportation, for instance, would sacrifice the annual revenue the stores provide to schools and other purposes, Saslaw said. The Senate’s education committee remains opposed to changing state laws to allow more charter schools, another McDonnell proposal, he said.
No to bipartisan cooperation, no to competition, yes to hoary monopolies. Is that really the rock on which the Democrats want to make their stand as the country’s “implicit libertarian synthesis” yields a “libertarian moment”?
Liberty Most Deer
As a footnote to Chris Moody’s post about Monday’s 20-year anniversary of the fall of the Berlin Wall, I just came across this article about red deer refusing to cross from Germany into the Czech Republic. This, of course, is a border that was the once heavily fortified dividing line between free West Germany and captive Czechoslovakia.
Even deer who weren’t born when barbed wire, watchtowers, and armed guards prevented the natural extension of their happy grazing grounds act as if the Cold War never ended — apparently because they learned their habits from their parents, who learned them from their parents.
Still, as with the new generation of Eastern Europeans who have no memory of Communism, some young deer are starting to break the mold, taking advantage of — and even taking for granted — their newfound freedom. I wonder if the grass (and ferns, and whatever else deer eat) is any greener on the other side of the former Iron Curtain.
Who’s Blogging about Cato
Here’s a round up of bloggers who are writing about Cato research, analysis and commentary:
- Below the Beltway’s Doug Mataconis reviews Gene Healy’s book The Cult of the Presidency.
- Matt Yglesias takes aim at Jeffrey Miron’s critique of government health care. Miron responds.
- PoliticalPolicy.net writes about Cato’s commentary on President Obama’s “Pay Czar” Kenneth Feinberg.
- Libertarian blogger Ryan Jaroncyk mentions Cato in a blog post on the war in Afghanistan.
- Attorney.org highlights Cato on their “Featured Organization” series.
- At Cafe Hayek, Don Boudreaux features a new Cato paper on socialism in India.
Email us to let us know if you’re blogging about Cato.
Weekend Links
- The Democrats’ ingenious plan to disguise the true cost of their health care bills.
- The health care legislation moving through Congress could increase young adults’ premiums by 100 percent.
- Why raising taxes won’t fix the deficit. Just look at California. And Rhode Island. And New York.
- “What profiteth a political party if it gains congressional seats but loseth its soul?” —Michael D. Tanner (Yes, he’s referring to Republicans.)
- Here we go again: The No Child Left Behind Act is up for renewal.
- Podcast: “Ayn Rand’s Affinities and Animosities“
Give Us Your Tired, Your Energetic, Your Poor, Your Rich — Pretty Much Anyone Who’s Not a Criminal or Terrorist
On Wednesday I blogged about how, for the first time in many years — since the last recession — H-1B skilled worker visas remain available despite the hard cap on their number. In other words, even foreigners respond to market incentives: when there are no jobs, there are fewer immigrants.
I’ve gotten some interesting email in response to that little notice, one of which I post below, along with my paragraph-by-paragraph responses.
Just read your blog entry on the H-1b visa. The problem is that this visa has been misused by sponsoring companies, suffering from high rates of fraud. I find it strange that Cato supports (or appears to support) a labor tool that is anything but free market. The H-1b visa is more of an indentured servant visa program than anything else – where employees must be sponsored by an employer. Since employees aren’t free to find new jobs or start their own business, it results in a captive workforce who will do whatever the employee asks, even beyond reason. They won’t bargain for higher wages, quit if mistreated, join unions, or do anything that might result in their immigration status being jeopardized.
Having myself been on H-1Bs with several employers, including Cato, I agree that the program is seriously flawed, in the ways this correpondent describes and in others. Ideally, people would be able to apply for a work permit — their application gaining more “points,” say, for language, youth, skills, the needs of the economy, or whatever other criteria the political process determines are important — and then not be tied to an employer and have an opportunity to receive permanent residence and eventual naturalization if they pay their taxes, stay out of jail, etc. Or, indeed, we could admit all people who want to come here (after screening for security, criminal, and health concerns), and give them the same opportunity. But until we get to that more perfect world, I see no conflict in advocating for a repeal of the H-1B cap or pointing out how this recession shows that immigrants come for jobs, not to leech off our welfare state (if that’s the concern, then wall off the welfare state, not the country) or commit crimes.
One thing not correct in your blog is that H-1b visa holders cannot get a green-card. They can, unfortunately most of the workers are from India so it is difficult for those workers to get the green-card because of how, numerically, green-cards are issued. The H-1b visa is a “dual intent” visa meaning there is a path to permanent residence and after 6 years on the visa holders can extend 1 year until their green-card is processed. Indian workers call it the “green carrot” and relate it to the picture of where the mule driver holds a carrot on a stick in front of the mule to keep him moving. No matter how hard the mule tries, the carrot gets no closer.
The H-1B’s “dual intent” provision is categorically not a path to a green card. All it does is, as the correspondent points out, allow the worker to stay in the country during the green card application process. That process, however, and the substantive requirements for obtaining a green card, is no different for H-1B holders than it is for anyone else. Indeed, spending five or six years on an H-1B with one employer can be a detriment, inasmuch as that employer’s sponsorship application cannot take into account the skills gained during that time of employment. And yes, the nationality-based restrictions are also obnoxious.
Government of Continual Failure
The Washington Post is full of so many stories about government failure these days, it’s hard to keep up.
Today, on page A19 we learn about a Small Business Administration subsidy program that has a 60-percent default rate. On the same page, we learn that the U.S. Postal Service will lose $7 billion this year.
Flipping over to page A20, we learn that former New York City Police Commissioner Bernard Kerik is a liar, a tax cheat, and thoroughly corrupt.
Then flip back to A15, and columnist Steve Pearlstein rightly lambastes the latest stimulus scheme from Congress: ”This $10 billion boondoggle is nothing more than a giveaway to the real estate industrial complex.”
Finally, on A14, we’ve got government-owned Fannie Mae losing a colossal $19 billion this year and asking the Treasury for another $15 billion taxpayer hand-out.
The federal government is a mess. Policymakers have no idea what the effects will be when they spend billions on scheme after scheme. Most of them don’t read the legislation, they don’t understand economics, and they never admit mistakes when their schemes almost inevitably fail. Fully 40 percent of the vast federal budget will be debt-fueled this year, but few policymakers seem to care. And public corruption seems never-ending.
Isn’t it time to give libertarianism a chance?
Correction: The CoC Does Not Endorse Carbon Tariffs
Following on from my earlier post, I was delighted to receive a call from Bradley Peck at the U.S. Chamber of Commerce just now, clarifying that they do not in fact endorse the idea of carbon tariffs. Here’s a blog entry, posted a few minutes ago on the Chamber’s blog, clarifying their position.
The Week in Government Failure
Over at Downsizing Government, we focused on failures in the following departments this week:
- Commerce: corporate welfare in Ohio
- Defense: cost overruns in the Pentagon’s space programs
- Energy: central planners gamble with taxpayer money
- HUD: subsidizing private firms to operate public housing isn’t a solution
Also, dubious stimulus projects point to a need to return to fiscal federalism.
This Cannot Last
This morning, Politico Arena asks:
Will the House pass healthcare this weekend — or not
My response:
In his post below, my colleague Michael Cannon links to his devastating analysis of the way House Democrats have buried the true cost of their healthcare scheme. This is legerdemain of the first order, but it is business as usual here in Washington. Here we have a Congress that cannot fix Medicare, which will go broke even before Social Security does, a Congress that still hasn’t met the October 1 budget deadline for the ninth year in a row, and it wants to fundamentally reorder healthcare in America with a scheme that no one understands and no one knows how to fund. Any private business that ran its affairs that way would long have been out of business.
Given this record of insanity, therefore, it is impossible to say whether the House this weekend will pass this 1,990-page monstrosity of a bill — whether enough sanity will come to enough members to kill the bill. One datum does loom large, however: Speaker Pelosi can afford to lose no more than 40 members of her caucus. Combine that, after Tuesday’s election results, with another datum — there are 49 House Democrats who sit in districts that John McCain carried — and one has to ask whether the insanity we see before us reaches to political suicide.
Yet whatever happens tomorrow, or in the Senate down the road, this cannot go on, simply because the money isn’t there to allow it to go on. On Tuesday at the polls and yesterday with the huge demonstration in front of the Capitol we are seeing what Charles Krauthammer this morning rightly calls the demolition of “the great realignment myth of 2008.” America is not a suicidal nation. The Founders and Framers gave us institutions that have endured for over two centuries and are the envy of the world. Whatever happens tomorrow, the seeds of sanity are in the American soil and soon will be springing forth.
As it Turns Out, There Are Limits on Congress’s Power
In 2006, Congress passed the Adam Walsh Child Protection and Safety Act. One provision of the law authorizes the federal government to civilly commit anyone in the custody of the Bureau of Prisons whom the attorney general certifies to be “sexually dangerous.” The effect of such an action is to continue the certified person’s confinement after the expiration of his prison term, without proof of a new criminal violation.
Six days before the scheduled release of Graydon Comstock — who had been sentenced to 37 months in jail for receiving child pornography — the attorney general certified Comstock as sexually dangerous. Three years later, Comstock thus remains confined in a medium security prison, as do more than 60 other similarly situated men in the Eastern District of North Carolina alone.
Comstock and several others challenged their confinements as going beyond Congress’s constitutional authority and won in both the district and appellate courts. The United States successfully petitioned the Supreme Court to review the case.
Cato, joined by Georgetown law professor (and Cato senior fellow) Randy Barnett, filed a brief opposing the government. We argue that the use of federal power here is unconstitutional because it is not tied to any of Congress’s limited and enumerated powers. The government’s reliance on the Necessary and Proper Clause of Article I, Section 8, is misplaced because that clause grants no independent power but merely “carries into execution” the powers enumerated elsewhere in that section. The commitment of prisoners after their terms simply is not one of the enumerated powers.
While the government justifies its actions by invoking its implied power “to establish a federal penal system” — itself a necessary and proper auxiliary to certain enumerated powers — civil commitment is unrelated to creating or maintaining a penal system (let alone any enumerated power). Nor can the law at issue fall under the Commerce Clause, because civil commitment involves non-economic intrastate activity.
As the Supreme Court recognized almost 150 years ago in Ex Parte Milligan, “[n]o graver question was ever considered by this court, nor one which more nearly concerns the rights of the whole,” than the government’s unconstitutional assertion of power against its own citizens. In this spirit, the Court should affirm the Fourth Circuit’s rejection of this blatant government overreach.
United States v. Comstock will be argued on January 12. You can read Cato’s brief here.
Chamber of Commerce Endorses Carbon Tariffs?
Even though the climate change summit in Copenhagen next month is likely to yield very little, domestic shenanigans continue. The Senate Committee on Environment and Public Works passed a bill on Thursday amid controversy, and the farmers’ friends in the Senate (notably Sen. Debbie Stabenow, D. Mich) are looking to send goodies their way by filing an amendment that would pay farmers for not cutting down trees, not farming, and will likely see states such as — well, how about that! — Michigan “cashing in” (see here).
Meanwhile, those concerned about the cost of climate change regulations may have lost an ally. Often, but not always, one can depend on the U.S. Chamber of Commerce to defend free enterprise, or at least free trade. On climate change, however, they are a little more ambiguous. If anything, they appear to be getting more sympathetic to climate change legislation. Nothing to do with membership defections, they assure us, just good business practice. Maybe it is. I’m not a member of the Chamber so their strategy is not really any of my business.
What concerns me is the apparent shift in their position toward so-called carbon tariffs (also called “border adjustment measures,” and often spoken of in terms of “international competitiveness,” “negotiating leverage” and other terms that should raise the alarm). My friend, and former Catoite, Scott Lincicome does an excellent job here of parsing through the Chamber’s recent public letter in support of the Kerry-Graham “framework” (outlined in this New York Times op-ed) and their strange silence on the framework’s inclusion of the need for carbon tariffs, so I won’t repeat his analysis here. Suffice to say, their non-comment on the issue of carbon tariffs is worrying. As Scott points out, they appear to endorse the concept, if in a coded manner.
Back in June, the Chamber explicitly opposed Waxman-Markey, in part because “It would also impose carbon tariffs on goods imported into the U.S., a move that would almost certainly spur retaliation from global trading partners.” (See here.) I would feel a lot more comfortable if a similarly explicit statement had been repeated in their letter.
The House Health Care Bill — Transparent or Not?
The House health care bill is reportedly coming to the floor this weekend, and House Speaker Pelosi committed in September to a 72-hour delay between the time the bill is posted online and a final vote.
Is that 72-hour delay happening? Some say yes. Some say no.
On the “yes” side are some folks at the Sunlight Foundation. John Wonderlich wrote a post last Sunday called “72 Hours is Now.” He hailed the posting of the health care bill well in advance of a vote.
“Public outcry, partisan pressure, and rising expectations are forcing Congress’s hand,” he wrote, ”and it’s now (apparently) taken as a matter of course that this bill is online for a long weekend before its final consideration.”
Paul Blumenthal followed that up mid-week, sounding slightly more cautious notes but hailing the posting of the “final manager’s amendment.” His post restarted the 72-hour clock.
Which brings us to the folks who say no.
On the Weekly Standard blog, John McCormack says that Speaker Pelosi plans to violate the promise to post the health care bill online for 72 hours.
House members are still negotiating important issues in the bill — whether it will provide taxpayer-funding for abortions, for example. Pelosi is pushing for a Saturday House vote, and a number of big changes will be introduced, likely less than 24 hours before the vote takes place (if in fact it does).
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