Archive for the ‘General’ Category
Government Motors Gears Up
Mother Goose and Grimm, by Mike Peters, June 30.
Attention GM Shareholders (That Means You!)
As my colleague Doug Bandow pointed out this morning, today’s Washington Post has an analysis about the uncertain prospects of GM ever making taxpayers whole again. It is a very similar analysis to the one I gave in this L.A. Times Dust-Up installment four weeks ago, although I find prospects unlikely, rather than just uncertain.
If GM emerges from bankruptcy next month in accordance with the pre-packaged Obama plan (as expected), taxpayers will be on the hook for $50 billion. That $50 billion will buy taxpayers a 60 percent stake in the company, which according to the laws of mathematics means that GM has to be worth $83.33 billion for the taxpayers to get their equity back without making a dime in capital gains or interest. In the L.A. Times, I asked:
How and when will that ever happen? At its peak in 2000, GM’s value (based on its market capitalization) stood at $60 billion. Thus, the minimum benchmark for “success” will require a 38% increase in GM’s value from where it was in the heady days of 2000, when Americans were purchasing 16 million vehicles per year. U.S. demand projections for the next few years come in at around 10 million vehicles. Taxpayer ownership of GM is something we should all get used to, and the “investment” is only going to grow larger. Think Amtrak.
Mourning the Loss of a Great American Capitalist
While the big news of the day wouldn’t seem to have a public policy angle, Michael Jackson’s death allows us to remember that such phenomenal career achievements can only be possible in an economic system that rewards and harnesses talent.
The King of Pop’s creativity allowed him and his family to make hundreds of millions of dollars, yes, but it also created thousands of jobs in the music and marketing industries and brought joy to fans around the world. Whatever his personal eccentricities — perhaps, in part, as a result of them — Jackson represents a capitalist success story.
No central planner could have invented him, and no government bureaucracy could have transformed pop music in the way he did.
Cato Health Care Experts Live-Blogging Tonight’s ABC News White House Special
Tonight at 10:00 PM EST, ABC News will broadcast a “special report from the White House” on President Obama’s plan to revamp the nation’s health care system. Cato scholars Michael D. Tanner and Michael F. Cannon will offer live commentary and analysis when the program begins.
Don’t miss this opportunity to hear another voice in the health care debate.
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For more on Cato’s research on health care, visit Healthcare.Cato.org
Who’s Blogging about Cato
Here’s a round-up of bloggers who are writing about Cato commentary, research and analysis:
- Real Clear World blogger Greg Scoblete quotes Justin Logan on how pundits in Washington are handling the protests in Iran.
- Bloggers from The Orange County Register, My Ford Dreams, and The Truth about Cars posted the video of P.J. O’Rourke’s discussion at Cato on the future of the American car.
- In a round-up of commentary about Obama’s health care plan, Liberty Papers blogger Stephen Gordon quotes Michael Tanner’s analysis of Obama’s proposal.
- Colin Grabow writes about Brandon Arnold’s commentary on the effect of taxes on European sports.
- Pete Eyre of The Motorhome Diaries interviews David Boaz on the future of the freedom movement.
- At Liberty Maven, Mike Miller quotes Jim Harper about the movement toward a national ID card.
- Kiran Rao, who blogs about world politics from India, cites Doug Bandow’s commentary on the European Parliamentary elections.
Supporting Free Institutions, a Free Economy, and a Free Society
Obama’s Health Care Speech
In his speech to the American Medical Association today, President Obama repeatedly denied that he supports “socialized medicine” or “government-run” health care.
But what is important is not the terminology, but under the proposal supported by the president, government would control more and more of our health care decisions. Government would compel Americans to purchase health insurance, controlling its content, how much we pay, and the relationships between insurers, doctors, and patients. Government bureaucrats would determine whether Americans receive certain medical services.
There may be no better salesman than Barack Obama, but his product is deeply flawed. The so-called “Public Option,” or government-run plan, that President Obama supports would slowly but inexorably lead to the destruction of the private insurance market and the imposition of a government-controlled single-payer system.
But the problems with Obamacare go well beyond the Public Option, which the AMA opposes. The mandates on businesses and individuals, taxpayer subsidies, insurance regulation, and government interference in private medical decisions pose serious threats to American businesses, taxpayers, and most importantly patients.
That’s bad medicine, no matter what you call it.
Week in Review: Health Care Battles, Pay Caps and North Korean Prisoners
Will Obama Raise Middle-Class Taxes to Fund Health Care?
President Obama is promoting an expansion in federal health care spending, and Democratic leaders are scrambling to find ways to pay for it. The plan is expected to cost about $1.5 trillion over the next decade, but the administration has promised that health care legislation won’t add to already huge federal budget deficits. In a new paper, Cato scholars Michael D. Tanner and Chris Edwards argue that expanding government health care will likely involve huge tax increases on the middle class.
Tanner warns of “Obamacare” to come, saying that Obama’s new health care plan will give “government control over one-sixth of the U.S. economy, and over some of the most important, personal, and private decisions in Americans’ lives.” Don’t miss Tanner’s in-depth analysis of the new health care plan that is making its way through Congress, which “would dramatically transform the American health care system in a way that would harm taxpayers, health care providers, and — most importantly — the quality and range of care given to patients.”
A part of the plan would include “public option” (read: government-run) health care, which would allow the government to compete against private health care providers. Tanner says it would be the first step toward wiping out the private insurance market as we know it:
Regardless of how it is structured or administered, such a plan would have an inherent advantage in the marketplace because it would ultimately be subsidized by taxpayers. It could, for instance, keep its premiums artificially low or offer extra benefits, then turn to the U.S. Treasury to cover any shortfalls. Consumers would naturally be attracted to the lower-cost, higher-benefit government program.
…It is unlikely that any significant private insurance market could continue to exist under such circumstances. America would be firmly on the road to a single-payer health care system with all the dangers that presents. That would be a disaster for American taxpayers, physicians, and—most importantly—patients.
Treasury Seeks to Control Executive Pay Across the Private Sector
Fox Business reports, “The Treasury Department on Wednesday took new steps to rein in executive compensation, saying the Obama Administration would introduce legislation that could create stricter limits on pay; it also appointed an official to head up efforts on the issue.”
In a 2008 Policy Analysis Ira T. Kay and Steven Van Putten explain the misconceptions many people have about executive pay, and why the market is a better arbiter than any bureaucrat in Washington:
Such populist sentiments are often based on misunderstandings about the role of corporate executives in the economy and the vigorous competition that exists for these highly skilled leaders. In the past, federal regulatory efforts based on such misunderstandings have generated unintended consequences, which have damaged the economy and hurt the ability of the market for executives to self-regulate over time.
The labor market for executives and the associated pay levels are already subject to high levels of regulation. Indeed, U.S. corporations are subject to more stringent executive pay disclosure requirements than corporations anywhere else in the world. Before additional regulatory and legislative efforts are unleashed, policymakers should examine the rationale for current pay structures and the strong links between executive pay and corporate performance.
In a Washington Times op-ed, Alan Reynolds says efforts to cap executive pay are wholly misguided:
Congressional hearings to barbecue Wall Street executives are as fun as a circus, but with more clowns. Presidential politics is now taking such political distractions to a lower level.
…Most top executives who were actually in charge during the craze of overinvestment in mortgage-backed securities have been fired. Executives who are fired are not in a position to be “giving themselves” anything.
In reality, top executives are mainly paid by accumulating a big stockpile of company stock and stock options. Estimates of annual CEO pay that Congress and the press have been focusing on look as high as they do only because of the high value of restricted stock or stock options at the time.
Writing in 2007 (before the first round of major bailouts), Cato scholars Jerry Taylor and Jagadeesh Gokhale took it a step further: “Pay Bosses More!”:
Excessive executive compensation harms no one but perhaps the stockholders who put up with it. And stockholders put up with it because there’s good reason to believe that sizable CEO compensation packages help — not harm — corporate performance, which redounds to their benefit, and that of the firms’ workers.
Companies pay workers what they must to deliver their products and services to the market, and supply and demand establishes executive compensation packages the same way it establishes consumer prices. Any overcompensation comes out of the firm’s bottom line — at a loss to the shareholders, not the workers.
North Korea Sentences Two U.S. Journalists to 12 Years Hard Labor
Two American journalists were convicted of entering North Korea illegally while on assignment, and exhibiting “hostility toward the Korean people.” This week, a North Korean court sentenced them to 12 years in a labor prison.
Cato scholar Doug Bandow comments:
Washington should publicly downplay the controversy and present the issue to the Kim regime as a humanitarian matter. The Obama administration should indicate its willingness to open a broader dialogue with North Korea, but indicate that positive results will be possible only if Pyongyang responds with cooperation instead of confrontation. Releasing the two journalists obviously would provide evidence of the former.
Regrettably, Laura Ling and Euna Lee are political pawns. As such, Washington’s best strategy to achieve their release is to simultaneously reduce their perceived value to Pyongyang and ease tensions between the U.S. and North Korea. Patience may be the Obama administration’s highest virtue and Ling’s and Lee’s greatest hope.
In a Cato Daily Podcast, Bandow discusses what can be done for the American prisoners, and how the U.S. government should react.
P.J. O’Rourke, Driving Like Crazy
What do automobiles and American founding principles have in common?
At a Cato forum Tuesday, P.J. O’Rourke, author of the new book Driving Like Crazy, said well, plenty.
“Cars fulfilled the Americans’ founding fathers’ dream and ideal,” said O’Rourke. “Of all the truths that we hold to be self evident, of all the unalienable rights with which we are endowed, what is the most important to the American dream? It is right there, front and center…freedom to leave…freedom to get the hell out of town.”
Indeed, the American automobile as many have known it is fading fast. After years of government incentives to build certain types of cars, tax credits to buy smaller ones, higher gasoline tax proposals, and the government takeover of General Motors, the cars that so represented American freedom and individualism won’t last long, he said.
“Pity the poor American car when Congress and the White House get through with it,” he said. “A light-weight vehicle with a small carbon footprint using alternative energy and renewable resources to operate in a sustainable way– When I was a kid, we called it a Schwinn.”
O’Rourke said that going after the automobile is just a way for bureaucrats in Washington to take control over another part of Americans’ lives.
“I’m old enough to realize that freedom is always under attack,” he said. “This is a never ending struggle.”
You can watch his entire speech, or listen in on a Cato special podcast below.
Photo credit: Kelly Anne Creazzo
Week in Review: A Speech in Cairo, an Anniversary in China and a U.S. Bankruptcy
Obama Speaks to the Muslim World
In Cairo on Thursday, President Obama asked for a “new beginning between the United States and Muslims around the world,” and spoke at some length on the Israeli-Palestinian conflict, Iran, Iraq, and Afghanistan. Cato scholar Christopher Preble comments, “At times, it sounded like a state of the union address, with a litany of promises intended to appeal to particular interest groups. …That said, I thought the president hit the essential points without overpromising.”
Preble goes on to say:
He did not ignore that which divides the United States from the world at large, and many Muslims in particular, nor was he afraid to address squarely the lies and distortions — including the implication that 9/11 never happened, or was not the product of al Qaeda — that have made the situation worse than it should be. He stressed the common interests that should draw people to support U.S. policies rather than oppose them: these include our opposition to the use of violence against innocents; our support for democracy and self-government; and our hostility toward racial, ethnic or religious intolerance. All good.
David Boaz contends that there are a number of other nations the president could have chosen to deliver his address:
Americans forget that the Muslim world and the Arab world are not synonymous. In fact, only 15 to 20 percent of Muslims live in Arab countries, barely more than the number in Indonesia alone and far fewer than the number in the Indian subcontinent. It seems to me that Obama would be better off delivering his message to the Muslim world somewhere closer to where most Muslims live. Perhaps even in his own childhood home of Indonesia.
Not only are there more Muslims in Asia than in the Middle East, the Muslim countries of south and southeast Asia have done a better job of integrating Islam and modern democratic capitalism…. Egypt is a fine place for a speech on the Arab-Israeli conflict. But in Indonesia, Malaysia, India, or Pakistan he could give a speech on America and the Muslim world surrounded by rival political leaders in a democratic country and by internationally recognized business leaders. It would be good for the president to draw attention to this more moderate version of Islam.
Tiananmen Square: 20 Years Later
It has been 20 years since the tragic deaths of pro-democracy protesters in Tiananmen Square in June 1989, and 30 years since Deng Xiaoping embarked on economic reform in China. Cato scholar James A. Dorn comments, “After 20 years China has made substantial economic progress, but the ghosts of Tiananmen are restless and will continue to be so until the Goddess of Liberty is restored.”
In Thursday’s Cato Daily Podcast, Dorn discusses the perception of human rights in China since the Tiananmen Square massacre, saying that many young people are beginning to accept the existence of human rights independent of the state.
A few days before the anniversary, social media Web sites like Twitter and YouTube were blocked in China. Cato scholar Jim Harper says that it’s going to take a lot more than tanks to shut down the message of freedom in today’s online world:
In 1989, when a nascent pro-democracy movement wanted to communicate its vitality and prepare to take on the state, meeting en masse was vital. But that made it fairly easy for the CCP to roll in and crush the dream of democracy.
Twenty years later, the Internet is the place where mass movements for liberty can take root. While the CCP is attempting to use the electronic equivalent of an armored division to prevent change, reform today is a question of when, not if. Shutting down open dialogue will only slow the democratic transition to freedom, which the Chinese government cannot ultimately prevent.
Taxpayers Acquire Failing Auto Company
After billions of dollars were spent over the course of two presidential administrations to keep General Motors afloat, the American car company filed for bankruptcy this week anyway.
Last year Cato trade expert Daniel J. Ikenson appeared on dozens of radio and television programs and wrote op-eds in newspapers and magazines explaining why automakers should file for bankruptcy—before spending billions in taxpayer dollars.
Which leaves Ikenson asking one very important question: “What was the point of that?”
In November, GM turned to the federal government for a bailout loan — the one final alternative to bankruptcy. After a lot of discussion and some rich debate, Congress voted against a bailout, seemingly foreclosing all options except bankruptcy. But before GM could avail itself of bankruptcy protection, President Bush took the fateful decision of circumventing Congress and diverting $15.4 billion from Troubled Asset Relief Program funds to GM (in the chummy spirit of avoiding tough news around the holidays).
That was the original sin. George W. Bush is very much complicit in the nationalization of GM and the cascade of similar interventions that may follow. Had Bush not funded GM in December (under questionable authority, no less), the company probably would have filed for bankruptcy on Jan. 1, at which point prospective buyers, both foreign and domestic, would have surfaced and made bids for spin-off assets or equity stakes in the “New GM,” just as is happening now.
Meanwhile, the government takeover of GM puts the fate of Ford Motors, a company that didn’t take any bailout money, into question:
Thus, what’s going to happen to Ford? With the public aware that the administration will go to bat for GM, who will want to own Ford stock? Who will lend Ford money (particularly in light of the way GM’s and Chrysler’s bondholders were treated). Who wants to compete against an entity backed by an unrestrained national treasury?
Ultimately, if I’m a member of Ford management or a large shareholder, I’m thinking that my biggest competitors, who’ve made terrible business decisions over the years, just got their debts erased and their downsides covered. Thus, even if my balance sheet is healthy enough to go it alone, why bother? And that calculation presents the specter of another taxpayer bailout to the tunes of tens of billions of dollars, and another government-run auto company.
America’s Power Problem
Numerous polls show that Americans want to reduce our military presence abroad, allowing our allies and other nations to assume greater responsibility both for their own defense and for enforcing security in their respective regions.
But why haven’t we done so?
In his new book, The Power Problem, Christopher A. Preble contends that the vast military strength of the United States has induced policymakers in Washington to broaden the perception of the “national interest,” and ultimately to commit ourselves to the impossible task of maintaining global order.
Preble holds that the core national interest — preserving American security — is easily defined and largely immutable. In his view, military power is purely instrumental: if it advances U.S. security, then it is fulfilling its essential role.
Preble spoke at Cato about what we views as the proper role of the United States in the world.
The GOP Is Not Serious about Cutting Down Spending
A month ago, President Obama issued a list of proposed spending cuts that I dismissed as “unserious” due to the fact that they were trivial when compared to his proposed spending and debt increases. Today, the House Republican leadership released a list of proposed spending cuts.
I’d love to say I’m impressed, but I can’t.
Both proposals indicate that neither side of the aisle grasps the severity of the country’s ugly fiscal situation, or at least has the guts to do anything concrete about it.
The GOP proposal claims savings of more than $375 billion over five years, the bulk of which ($317 billion) would come from holding non-defense discretionary spending increases to no more than inflation over the next five years.
First, it should be cut — period. Second, non-defense discretionary spending only amounts to about 17% of all the money the federal government spends in a year, so singling out this pot of money misses the bigger picture. At least, defense spending, which is almost entirely discretionary, should be included in any cap. But it has become an article of faith in the Republican Party that reining in defense spending is tantamount to putting a white flag in the Statue of Liberty’s hand.
The second biggest chunk of savings would come from directing $45 billion in repaid TARP funds to deficit reduction instead of allowing the money to be used for further bailing out. That’s a sound idea as far it goes, but I can’t help but point out that the signatories to the document, House Republican Leader John Boehner and Minority Whip Eric Cantor, voted for the original $700 billion TARP bailout. Proposing to rescind the Treasury’s power to release the remaining funds, about $300 billion I believe, should have been included.
According to the proposal, the rest of the cuts and savings comes out to around $25 billion over five years. Like the specific cuts in the president’s proposal, they’re all good cuts. But the president detailed $17 billion in cuts for one year and I generously called it “measly.” What am I to call the House Republican leadership specifying $5 billion a year in cuts?
Tiananmen Square: 20 Years Later
After 20 years China has made substantial economic progress, but the ghosts of Tiananmen are restless and will continue to be so until the Goddess of Liberty is restored.
The Chinese Communist Party’s “Human Rights Action Plan” (2009–10) addresses several human rights abuses, but it fails to establish a well-defined boundary between the individual and the state that protects rights to life, liberty, and property.
Until China limits the power of the CCP and allows people to exercise their natural rights, there will be corruption, and the goal of “social harmony” will be elusive. The lesson of Tiananmen is that the principle of nonintervention (wu wei) is superior to the heavy hand of the state as a way to bring about true harmony.
More on the Tiananmen Square massacre below.
The Quiet War against School Choice
First, the Democrats in Washington for all intents and purposes killed the District of Columbia’s proven voucher program, but did it with Ninja-like stealth. The weapons: Nearly impossible reauthorization requirements, late Friday announcements, and politically expedient promises to keep kids currently attending good schools from being very publicly booted.
Now it’s Milwaukee’s turn. The new Democratic majority in Madison is on its way to cutting the value of individual vouchers while raising public school per-pupil expenditures, and even worse, is larding new regulations on private schools participating in the choice program. Perhaps the most ridiculous proposed reg: Requiring all participating private schools with student bodies that are more than 10 percent limited English proficient to provide a “bilingual-bicultural education program.” As if one of the major benefits of choice isn’t that parents can choose such programs if they think they are best for their kids, and can select something else if they don’t! But, of course, political decisions aren’t primarily about what parents want and kids need.
Thankfully, there is a resistance forming to the assault in Milwaukee, with choice advocates now refusing to remain quiet after naively doing so when they were told that fighting back would only make things worse. The choice-supporting national media is also speaking up. But one can’t help but fear that it may be too little, too late.
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- James A. Dorn discusses “Socialism- U.S. Style” in the South China Morning Post.
- In The Washington Examiner, Gene Healy explains why voters are the true cause of America’s fiscal mess.
- In The American Spectator, Doug Bandow discusses why the outcome of India’s recent election is good news for religious minorities.
- On CNBC, Dan Mitchell discusses America’s debt problem, and how we can get out of it.
- In Wednesday’s Cato Daily Podcast, Daniel J. Ikenson asks, “What about Ford, Toyota, Honda, Nissan, BMW, Volkswagen and Kia?”
Obama’s Energy Reading
The Washington Post writes about how President Obama became obsessed with grabbing our complex energy systems by the scruff of the neck and shaking them into something more appealing to Ivy League planners. I was struck by this vignette:
But even before the late-night session in July, Obama had begun to educate himself about energy and climate and to use those issues to define himself as a politician, say people who have advised him. He read a three-part New Yorker series on climate change, for instance, and mentioned it in three speeches.
It’s great that he read a three-part series in the New Yorker. But has the president ever actually read anything by a climate change skeptic? Actually, a better term would be “a climate change moderate.” Leading “skeptic” Patrick J. Michaels, for instance, of Cato and the University of Virginia, isn’t skeptical about the reality of global warming. His summary article in the Cato Handbook for Policymakers begins:
Global warming is indeed real, and human activity has been a contributor since 1975.
But he also notes that climate change is complex, and its policy implications are at best unclear. “Although there are many different legislative proposals for substantial reductions in carbon dioxide emissions, there is no operational or tested suite of technologies that can accomplish the goals of such legislation.” The flawed computer models on which activists rely cannot reliably predict the future course of world temperatures. The apocalyptic visions that dominate the media are not based on sound science. The best guess is that over the next century there will be very slight warming, without serious implications for our environment our society. Michaels’s closing appeal to members of Congress would also apply to President Obama and his advisers:
Members of Congress need to ask difficult questions about global warming.
Does the most recent science and climate data argue for precipitous action? (No.) Is there a suite of technologies that can dramatically cut emissions by, say, 2050? (No.) Would such actions take away capital, in a futile attempt to stop warming, that would best be invested in the future? (Yes.) Finally, do we not have the responsibility to communicate this information to our citizens, despite disconnections between perceptions of climate change and climate reality? The answer is surely yes. If not the U.S. Congress, then whom? If not now, when? After we have committed to expensive policies that do not work in response to a misperception of global warming?
Please, President Obama — in addition to the lyrical magazine articles on the apocalyptic vision that you read, please read at least one article by a moderate and widely published climatologist before rushing into disastrously expensive policies.
No Longer among the “Usual Left-Right Battles”
Christopher J. Christie just decisively won New Jersey’s Republican gubernatorial primary, but had to veer away from his middle-of-the-road plan and venture into some traditionally conservative territory to do it, according to news accounts. Will that be a problem for him in the general election? Not necessarily. As NorthJersey.com’s Charles Stile observes, Christie’s ardent support for private school choice is not the polarizing stance it once was: these programs “once championed by conservative ideologues, are being embraced by urban Democrats.”
As we’ve been saying at the Center for Educational Freedom for some time now, the post-partisan age of school choice is well within sight, and draws closer every day. The last politicos to see that will find themselves on the wrong side of history, and the wrong side of voters in both parties.
Haywood v. Drown
The Supreme Court ruling in Haywood v. Drown got lost in the news last week, but it was an important constitutional case involving the principle of federalism. The issue concerned the extent to which the central government can commandeer state judicial systems. Unfortunately, by a narrow 5-4 vote, the Court gave the central government a green light.
Justice Clarence Thomas filed another one of his sober, scholarly opinions in dissent and I think he makes the case rather well. Excerpt:
The Court holds that New York Correction Law Annotated §24, which divests New York’s state courts of subject-matter jurisdiction over suits seeking money damages from correction officers, violates the Supremacy Clause ofthe Constitution, Art. VI, cl. 2, because it requires the dismissal of federal actions brought in state court under42 U. S. C. §1983. I disagree. Because neither the Constitution nor our precedent requires New York to open its courts to §1983 federal actions, I respectfully dissent.
Although the majority decides this case on the basis of the Supremacy Clause, see ante, at 5–13, the proper starting point is Article III of the Constitution. Article III, §1, provides that “[t]he judicial Power of the United States, shall be vested in one supreme Court, and in such inferior Courts as the Congress may from time to time ordain and establish.” The history of the drafting and ratification of this Article establishes that it leaves untouched the States’ plenary authority to decide whether their local courts will have subject-matter jurisdiction over federal causes of action.
Until this setback, the Court’s conservatives were doing well in this corner of the law. In New York v. United States (1992), the Court ruled that state legislatures were not subject to federal direction. In Printz v. United States (1997), the Court ruled that state executive officers were not subject to federal direction. This case stood for the proposition that state courts are not subject to federal direction. Alas, Justice Anthony Kennedy joined the liberals to subordinate the states to federal control.
Here’s a practical example to illustrate the problem. It’s bad enough when Congress wants to pass a law like the Americans with Disabilities Act (pdf)–a law that will create a flood of litigation. But what if Congress goes a step further and writes the law in such as way as to say ”take all those time-consuming lawsuits to the state courts. Federal judges and personnel can’t be bothered with that stuff!” So state courts get clogged or state lawmakers must raise taxes to alleviate the added burden, which blurs accountability. That’s what is likely to happen. Or, to be precise, continue to happen with increasing frequency. The feds have permission to foist costs on to the states.
But, to be clear, the main issue here is the proper division of federal and state authority. Even if Congress were to get around the problem of unfunded mandates by throwing money at the states, each state should retain control over its judiciary. As Justice Thomas notes, the issue of federal supremacy is too often distorted by liberals. Within its proper sphere, the feds are supreme. Liberals want supremacy and federal authority that is plenary. Wrong. Obama’s Supreme Court nominee should be asked about federalism and the doctrine of enumerated powers at the confirmation hearings.
Filed under: General; Government and Politics; Law and Civil Liberties; Regulatory Studies
Who’s Blogging about Cato
Here’s your weekly roundup of bloggers who are writing about Cato research and commentary:
- Liberty Maven blogger Mike Miller cites Jim Harper in a post about the effort to impose a national ID card on American citizens.
- W.E. Messamore, AKA The Humble Libertarian, interviews Cato health analyst Michael D. Tanner about Obama’s plan to overhaul the health care system.
- Insider Online blogger Alex Adrianson covers Cato’s standoff with Hugo Chavez supporters and government agents during a pro-free market conference in Venezuela.
- Writing for Real Clear World’s Compass blog,
- At Red State, Ryan Ellis uses Michael Cannon’s research in a post about a market-based alternative to government-run health care.
- Blogging for Young Americans for Liberty, Jeff Hubbard and Elliot Engstrom write about Cato University and Ilya Shapiro’s CNN commentary on Sonia Sotomayor.
- Blogger David Kirkpatrick cites Daniel J. Ikenson’s analysis of the GM bankruptcy.
Let us know if you’re blogging about Cato via email or Twitter.
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- Marian Tupy examines the failure of government-to-government aid to Africa in The Financial Times.
- In The Wall Street Journal, John Hasnas asks whether “compassion and empathy” are really characteristics we want in a judge.
- In the South China Morning Post, Ted Galen Carpenter examines why North Korea ignores international calls for nuclear disarmament.
- Richard W. Rahn reports on the extreme changes about to occur in the British government in The Washington Times.
- In Monday’s Cato Daily Podcast, Mark Calabria weighs in on “shadow banking” and the effort to regulate it.
Chavez Tries to Shut Down Pro-Free Market Educational Conference
The Cato Institute media department sent this press release to media outlets in Latin America, after the Venezuelan government tried to shut down a Cato-sponsored conference this week:
CAUCAGUA, VENEZUELA—A Cato Institute educational seminar fell victim to an attempt by the Venezuelan government to shut it down for expressing ideas critical of the Chavez regime.
Numerous Venezuelan government agencies harassed the Cato Institute event, called Universidad El Cato-CEDICE, or “Cato University,” which took place in Caucagua, Venezuela May 24-26. The event is co-sponsored by the Venezuelan free-market think tank Centro de Divulgación del Conocimiento Económico por la Libertad (CEDICE) and was organized to teach and promote the classical liberal principles of limited government, individual liberty, free markets and peace.
During the course of the event on Monday, the National Guard, state television and a state representative from a ministry of higher education interrupted the seminar, demanding that the seminar be shut down on the grounds that the event organizers did not have permission to establish a university in Venezuela. When the authorities were told that neither Cato nor CEDICE was establishing a university and that the Cato Institute has long sponsored student seminars called Cato Universities, the authorities then insisted that the seminar was in violation of Venezuelan law for false advertising.
After two hours of groundless accusations, the Chavez representatives left but their harassment has continued. One of the speakers at the seminar, Peruvian intellectual Alvaro Vargas Llosa, was detained by airport authorities Monday afternoon for three hours for no apparent reason. He was released and told that he could stay in the country as long as he did not express political opinions in Venezuela.
“The government’s attacks on freedom of speech are part of a worrying pattern of abuse of power in Hugo Chavez’s Venezuela,” said Ian Vasquez, director of Cato’s Center for Global Liberty and Prosperity, from Caucagua. “But they have so far not managed to alter the plans of the Cato Institute here, and will hopefully not do so, as we continue to participate in further meetings the rest of this week.”
For more information about Cato programs in Latin America, visit www.ElCato.org.
UPDATE (5/27, 2:30 PM EST) : Cato just received word from scholar Ian Vásquez that “Chavistas are gathering in front of the conference hotel now…Cato is all over state TV.”
Vásquez snapped this photo of people carrying anti-Cato signs and protesting the conference.
Filed under: General; International Economics and Development; Political Philosophy
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- At CNN.com, Ilya Shapiro says that the nomination of Sonia Sotomayor for the Supreme Court shows that identity politics matter to President Obama more than merit.
- In the Washington Examiner, Gene Healy makes the case for downsizing the imperial vice presidency.
- In Reason Magazine, Brink Lindsey discusses what he calls “Nostalgianomics,” and how liberal economists pine for days no liberal should want to revisit.
- At TheNextRight.com, Roger Pilon explains why the Sotomajor confirmation hearings are an opportunity for Republicans to reestablish their identity.
- In Wednesday’s Cato Daily Podcast, Tim Lynch says that hate crime laws sacrifice key constitutional protections.
A Correction
In a previous post, I offered my impressions on the Coburn-Burr-Ryan-Nunes health care reform bill, based on my reading of the bill summary prepared by their staff. The very next day, I had a friendly discussion with those staffers about the legislation. (They were most gracious; many thanks to them.) It turns out some of the things I wrote were inaccurate. So I’d like to make the following corrections.
Based on my reading of the bill summary and my discussions with staff, my previous post ought to have read that the Coburn et al. bill would:
- Mandate that Offer federal subsidies to states that create a new regulatory bureaucracy called a “State Health Insurance Exchange,”
- Mandate Require that all plans offered through those exchanges meet federal regulatory standards,
- Mandate Require “guaranteed issue” in those exchanges,
- Mandate Create “uniform and reliable measures by which to report quality and price information,”
- Impose price controls on those plans by prohibiting risk-rating,
- Launch a government takeover of the “insurance” part of health insurance, by means of a “risk-adjustment” program intended to cope with the problems created by price controls, and Require that states creating an exchange also create some mechanism for providing coverage to people with high-cost illnesses, including but not limited to risk-adjustment, risk pools, or reinsurance, and
- Fall just short of an individual mandate by setting up (mandating?) Require that states creating an exchange take steps to facilitate enrollment, which may include automatic enrollment in exchange plans at “places of employment, emergency rooms, the DMV, etc.” — essentially, trying to achieve universal coverage by nagging Americans their residents to death.
My description of the legislation as a “Mandate-Price-Control Bill”? Not accurate. My claim that the bill involves tax increases? Based on my erroneous impression that the bill would impose price controls on insurance premiums. The bill may lead to some tax increases (it proposes new categories of federal spending after all), but for the moment I take staff at their word that on net the bill would not increase taxes or government spending.
Filed under: Cato Publications; General; Health, Welfare & Entitlements
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- In USA Today, Jerry Taylor argues that Obama’s plan to require new vehicles sold in 2016 to get an average of 39 miles per gallon or better is likely to result in all cost no benefit.
- Will Wilkinson documents the rise of collectivist conservatives in the newest edition of The Week.
- In The American Spectator, Doug Bandow says that while it is important for the U.S. to encourage dialogue with Muslim nations, we must not shy away from serious discussions about religious persecution.
- Randal O’Toole argues in USA Today that Obama’s plan for high-speed rail will cost taxpayers billions of dollars and do little to reduce traffic congestion or improve the environment.
- In The Washington Examiner, Gene Healy discusses why President Obama’s approach to terrorism is virtually identical to Bush/Cheney’s.
- In today’s Cato Daily Podcast, James Bartholomew argues that the welfare state in Britain has resulted in a generation of badly educated citizens and has undermined its original intent.
When Democracy Fails, Let Bureaucracy Manage Your Health Care!
Sen. Jay Rockefeller (D-WV) admits that Congress is not competent to set medical prices and payment systems for America’s seniors:
It’s not pretty; it’s not quality; it’s not American medicine the way it should be.
His solution: give that power to an unaccountable government board.
Who’s Blogging about Cato
Here’s a weekly round up bloggers who are writing about Cato research, commentary and analysis:
- Stephen Littau from The Liberty Papers and Michael Todd at The Classic Liberal write about the Citizens United v. FEC case that is soon to be decided Supreme Court.
- At the Legal History Blog, “Brother, Can You Spare a Trillion? Lessons from the New Deal and the Great Depression.”
- Joshua Bardwell discusses the Cato study, Overkill: The Rise of Paramilitary Police Raids in America, at his blog, Jack-Booted Liberal.
- QandO’s Bruce McQuain cites Doug Bandow’s commentary on Obama’s new credit card legislation.
- At the Reason Foundation blog, Anthony Randazzo writes about Cato research showing that there is a significant pay gap between government and private workers.
- Blogger David Kirkpatrick makes note of the Cato Weekly Dispatch, which reported the Obama administration is scrapping the term “War on Drugs.”
- At the RealClearWorld.com Compass blog, Ben Friedman’s analysis of the Pakistani nuclear program.
Let us know if you’re blogging about Cato by emailing us or send us a message on Twitter.
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