Archive for March, 2010
An Important Defense of Citizens United
M. Todd Henderson of the University of Chicago Law School has a brief but important essay making the case for Citizens United. As they say, read the whole thing.
“Deem and Pass” and TARP
The leaders of the House of Representatives plan to address health care through a “deem and pass” strategy. Professor Michael McConnell believes this strategy violates the Constitution. But put that aside for now. Ms. Pelosi has chosen “deem and pass” because, as she said, “people don’t have to vote on the Senate bill.” The “people” in question are House Democrats whose votes are essential to passing the bill. These members fear voters would penalize them for voting for the Senate bill. As the Washington Post put it, “deem and pass” would “enable House Democrats not to be on record directly as supporting the Senate measure.” A House Democrat running in a tough election will be able to deny voting for the Senate bill if it passes into law. We would then have an odd situation in which a bill became law even though only a minority of House members are willing to take responsibility for having supported it. It would be, as it were, a mystery how the bill became law.
This all reminds me of the TARP legislation. In my recent policy analysis of how Congress performed badly in the TARP case, I found that members of both of chambers were concerned mostly with avoiding responsibility for voting for the bailouts. In the tough cases, and probably many others, Congress does what it can to avoid being held accountable.
Many people inside DC will look at “deem and pass” through the lens of political hardball. If Pelosi can pull it off, she will be praised as tough and shrewd, a risk taker who gets her way by any means necessary.
But there is a larger problem here. The willingness and capacity of Congress to shirk responsibility for its acts suggests deep institutional decline and corruption. That decline implicates more than Congress itself. How can representative democracy work if voters cannot hold their representatives accountable?
Yet. Another. Fraudulent. Cost Estimate.
House Democrats claim that a not-yet-released Congressional Budget Office report puts the cost of their revised health care overhaul at $940 billion over the next 10 years.
Though I have yet to see the CBO score, I’ll bet anyone a fancy lunch that it does not claim the legislation would cost the federal government just $940 billion from 2010 through 2019.
As former Congressional Budget Office director Donald Marron has explained over and over, the figure that Democrats consistently cite for the cost of their bills is only the CBO’s estimate of the cost of federal spending related to the expansion of health insurance coverage. It is not the full cost to the federal government, because each bill also spends taxpayer dollars on other items.
Marron examined the CBO’s March 11 score of the bill that passed the Senate on Christmas Eve, and found an additional $96 billion of spending over 10 years. If the most recent iteration of ObamaCare is similar, then new federal spending in that bill would be approximately $1.036 trillion — pushing the total over the president’s spending target.
Anyone care to take me up on that fancy-lunch wager?
Moreover, the on-budget costs of the legislation probably account for only 40 percent of the total costs. The other 60 percent come from the private-sector mandates. But Democrats have systematically suppressed any estimates of those hidden taxes, probably because such an estimate would reveal the full cost of the legislation to be closer to $2.5 trillion over the next 10 years.
It has been 272 days since Democrats introduced the first complete version of the president’s health plan. We still haven’t seen an honest cost estimate.
To Kill ACORN, Kill the Programs
Last year, when the issue of defunding ACORN was a hot-button issue, I told countless radio talk show audiences that the focus should be on eliminating the underlying fuel that created the organization—the flow of federal subsidies.
Chris Edwards pointed this out in September. If Congress simply stops subsidizing ACORN, its activists will reincorporate under new names and again become eligible for funds. Alas, that’s precisely what ACORN is currently doing.
From FoxNews.com:
One of the latest groups to adopt a new name is ACORN Housing, long one of the best-funded affiliates. Now, the group is calling itself the Affordable Housing Centers of America.
Others changing their names include what were among the largest affiliates: California ACORN is now Alliance of Californians for Community Empowerment, and New York ACORN has become New York Communities for Change. More are expected to follow suit.
A comment from Frederick Hill, a spokesman for Republicans on the U.S. House oversight and government reform committee, doesn’t indicate that the GOP has quite received the message:
To credibly claim a clean break, argued Hill, the new groups should at least have hired directors from outside ACORN.
It appears that for many Republicans, attacking ACORN represented political opportunism, not a statement about the proper role of the federal government.
Further rendering the GOP’s ACORN agenda moot was last week’s ruling by a U.S. District judge that singling out ACORN for defunding is unconstitutional. It truly boggles the mind what passes for constitutional and unconstitutional in this country.
Tuesday was the birthday of James Madison, the “Father of the Constitution.” Reflecting upon Madison’s wise words, it’s hard to understand how the federal “community development” programs that have funded ACORN could pass constitutional muster:
“The government of the United States is a definite government, confined to specified objects. It is not like state governments, whose powers are more general. Charity is no part of the legislative duty of the government.”
“[T]he powers of the federal government are enumerated; it can only operate in certain cases; it has legislative powers on defined and limited objects, beyond which it cannot extend its jurisdiction.”
“With respect to the two words “general welfare,” I have always regarded them as qualified by the detail of powers connected with them. To take them in a literal and unlimited sense would be a metamorphosis of the Constitution into a character which there is a host of proofs was not contemplated by its creators.”
“If Congress can do whatever in their discretion can be done by money, and will promote the general welfare, the government is no longer a limited one possessing enumerated powers, but an indefinite one subject to particular exceptions.”
See this essay for reasons why these HUD community development programs should be abolished.
Would ObamaCare Improve Public Health? Probably Not.
George Avery is an assistant professor of public health at Purdue University. In today’s Daily Caller, Avery rebuts claims that the Obama health plan would improve public health:
The idea that health care contributes significantly to population health is both intuitively appealing and untrue….
In fact, federal “reform” often hurts the public health system. Both public health and health care experts have criticized Medicare and Medicaid, enacted by Congress in 1965, for changing the focus of health care practitioners from prevention to treatment….
Requiring all Americans purchase health insurance, which the current bills hope to do, would not address the underlying socio-economic issues at the root of most public health problems….
Indeed, access to health care can help individual patients, but can also aggravate some public health problems…. High rates of surgical intervention increase the risk and spread of drug resistant infections like MRSA.
Avery is the author of the Cato Institute briefing paper, “Scientific Misconduct: The Manipulation of Evidence for Political Advocacy in Health Care and Climate Policy.”
Is Obama Losing David Brooks?
New York Times columnist David Brooks, President Obama’s biggest fan among self-proclaimed conservatives, has been plunged into the depths of despair by the latest machinations of Obama and his congressional allies:
Deem and pass? Are you kidding me? Is this what the Revolutionary War was fought for? Is this what the boys on Normandy beach were trying to defend? Is this where we thought we would end up when Obama was speaking so beautifully in Iowa or promising to put away childish things?
Yes, I know Republicans have used the deem and pass technique. It was terrible then. But those were smallish items. This is the largest piece of legislation in a generation and Pelosi wants to pass it without a vote. It’s unbelievable that people even talk about this with a straight face. Do they really think the American people are going to stand for this? Do they think it will really fool anybody if a Democratic House member goes back to his district and says, “I didn’t vote for the bill. I just voted for the amendments.” Do they think all of America is insane?
A Libertarian View of Urban Sprawl
On Thursday, March 18, John Stossel‘s show on the Fox Business News network will feature a discussion of how taxes and regulation have prevented urban areas like Cleveland from recovering from the decline of the industries that once supported those regions.
While the “stars” of the show were Drew Carey and Reason Magazine’s Nick Gillespie, Stossel spent a few minutes on zoning and land-use regulation. When searching for someone to advocate such land-use regulation, they happened to ask James Kunstler, author of The Geography of Nowhere, a critique of suburbia.
Kunstler’s response was emphatic. First, he called one of Stossel’s other guests (okay, it was me) “a shill for the sprawl-builders.” Then he added, “Please tell Stoessel [sic] he can kiss my ass.” He was so proud of this response that he posted it on his blog (look for it in the archive if it has disappeared from his home page).
Kunstler is biased against mobility and low-density housing, but he must be a good writer because he has lots of fans. As soon as he posted his rude reply, the blogosphere lit up with arguments from progressive, conservative, and even libertarian writers claiming that sprawl is the result of central planning and zoning and therefore libertarians such as Stossel and Cato should support smart-growth policies aimed at containing sprawl.
Sprawl is “mandated by a vast and seemingly intractable network of government regulations, from zoning laws and building codes to street design regulations,” claims conservative Austin Bramwell. As a result, “government planning makes sprawl ubiquitous.”
Anarcho-libertarian Kevin Carson quotes The Geography of Nowhere as the authority for how planners like Robert Moses forced people to live in sprawl. “Local governments have been almost universally dominated by an unholy alliance of real estate developers and other commercial interests” that insisted on urban sprawl, says Carson.
Open Carry Victory
As I previously noted, one of the areas where enforcement of the right to keep and bear arms will impact states and localities is in the carrying of handguns, either open or concealed. Until then, handgun carry proponents will be forced to comply with state laws that mandate open carry where concealed handgun permits are not issued or are only issued to those who happen to have fame, money, or political connections.
Wisconsin is one of two states with no provision for concealed carry (Illinois is the other). Frank Hannon-Rock, a member of Wisconsin Carry, a pro-gun rights organization, was arrested for open carrying on his front porch. He filed suit and was recently awarded $10,000 by a federal district court.
This parallels (but does not equal) the experience of Danladi Moore, an open carry advocate in Virginia who has been harassed repeatedly by Norfolk police. Moore’s case is worse; he is black, and police behavior took a predictable turn:
Danladi Moore – whom the city paid $10,000 in July to avoid litigation after being stopped by police for suspected weapons violations – was charged with trespassing at the downtown entertainment complex Tuesday night…
Moore said a friend who was with him at Waterside also was carrying a gun and also had challenged police when asked to leave. He said his friend, who is white, was not charged.
Given the racist origins of gun control and the positive role that firearms played in the civil rights movement, you would think that this sort of thing would be frowned upon.
Wednesday Links
- Busy with an ambitious domestic agenda, the Obama administration has put trade issues on the back burner. Let’s hope it stays that way.
- A little lesson on how government works. (As opposed to how it’s supposed to work.)
- There has been talk that House Democrats are planning to “deem” the health care bill into law without calling for a vote. If you’re not sure how that process works, read this.
- Contrary to a growing belief in Washington, revaluing China’s currency will not cure the trade deficit.
- Podcast: “ObamaCare Threatens Innovation” featuring Michael F. Cannon.
David Goldhill: “A Democrat’s Case For ‘No’”
David Goldhill has done it again.
You may recall his article, “How American Health Care Killed My Father,” from the September 2009 issue of The Atlantic.
Now, at HuffingtonPost, he comments on the health care legislation that may soon face a final vote (of some sort) in the House:
[C]ontinuing our Party’s almost unquestioned conflation of health insurance with health care, the central feature of the proposed “reform” is further extension of our flawed insurance-based system…[D]espite the Administration’s recent heated rhetoric, most of the entrenched health industry interests are quietly or openly in favor of this bill. Should the bill become law, I suspect we will look back at it as an industry bailout…
How…can Democrats in the depths of a recession support a massive tax increase on middle-class job creation…? How…could we justify diverting even more of middle class income to support our broken system of care, further starving families of funds for all their other needs? Most uninsured Americans lack insurance only temporarily; how many of them would trade lesser lifetime job prospects and lower disposable income for the short-term retention of health insurance?…
If the legislation had any real prospect of controlling health care spending, would the pharmaceutical industry be funding the “yes” campaign?
As a former Democrat who hung door knockers for Michael Dukakis in 1988, I know the heavy heart with which he writes. Read the whole thing.
Watch the video to hear Goldhill’s story:
Moody’s Caves In to Political Pressure on Municipal Bonds
Moody’s has announced that it will change its methods for rating debt issued by state and local governments. Politicians have argued that its current ratings ignore the historically low default rate of municipal bonds, resulting in higher interest rates being paid on muni debt, or so argue the politicians.
First this argument ignores that the market determines the cost of borrowing, not the rating. And while ratings are considered by market participants, one can easily find similarly rated bonds that trade at different yields.
Second, while ratings should give some weight to historical performance, far more weight should be given to expected future performance. Regardless of how say California-issued debt has performed in the past, does anyone doubt that California, or many other municipalities, are in fiscal straights right now?
Last and not least, politicians have no business telling rating agencies how to handle different types of investments. We’ve been down this road before with Fannie Mae and Freddie Mac. During drafting of GSE reform bills in the past, politicians put constant pressure on the rating agencies to maintain Fannie and Freddie’s AAA status.
The gaming over muni ratings illustrates all the more why we need to end the rating agencies govt created monopoly. As long as govt has imposed a system protecting the rating agencies from market pressures, those agencies will bend to the will of politicians in order to protect that status. As Fannie and Freddie have demonstrated, it ends up being the taxpayers and the investors who ultimately pay for this political meddling.
Will More Centralization Improve Education Standards?
Matt Ladner of the Goldwater Institute takes a good long look at national education standards on the Jay Greene blog. What, he asks, can we learn from the 1990s welfare policy debate and its outcomes?
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