Obama’s State of the Union: You’re just part of his “blueprint”

This originally was published in the Boulder Daily Camera on Saturday, January 28, 2012.

For refutations of the President’s flawed claims and statist economic plans, see the Cato Institute‘s website, blog, and YouTube channel.  Regarding Obama’s “Buffett tax” on millionaires, the Associated Press explains that the wealthiest Americans already “pay a lot more taxes than the middle class,” including secretaries

To understand Obama’s statist fervor, ask yourself: Are you a machine cog?  Surely not. But like many politicians, Obama disagrees, at least tacitly. How? Linguist George Lakoff explains how metaphors are key to understanding political discourse.  In his speech, the President expressed his desire to “lay out a blueprint for an economy.”  At least twice he’s mentioned starting a health care “system” from “scratch.” This speaks volumes.

“The economy” refers to people producing and exchanging goods and services. In a freed economy, government respects people’s right to trade voluntarily. But Obama sees the economy as a machine to be manufactured, or a cake to be baked.

Obama has the same conceit that better economists have warned about for centuries. Describing the “man of system,” Adam Smith wrote: “He seems to imagine that he can arrange … members of a great society with as much ease as the hand arranges … pieces upon a chess-board.” “Socialists look upon people as raw material to be formed into social combinations,” wrote French economist Frederic Bastiat in 1853. Or, as 1974 Nobel laureate F.A. Hayek wrote, “The curious task of economics is to demonstrate to men how little they really know about what they imagine they can design.”

Boulder’s “Climate Action Plan”: inefficient, ineffective

This was printed in the Boulder Daily Camera on Saturday, January 14, 2012.

The Boulder City Council’s website touts a “Climate Action Plan” as one of its primary goals. “The current goal is equivalent to the Kyoto Protocol target – to reduce emissions to a level seven percent below 1990 levels by 2012,” it says. With the city’s carbon tax set to end early next year, it’s worth asking: Is reducing carbon dioxide emissions the best way to respond to global warming?

Reviewing analysis by retired NCAR Senior Scientist Tom Wigley, Boulder’s University Corporation for Atmospheric Research (UCAR) states that even if the “industrialized and nearly industrialized countries called upon to reduce greenhouse gas emissions in the protocol … continued to abide by Kyoto’s limits” through 2100, global average temperatures would be at most 0.38 degrees Fahrenheit less than midpoint warming projections. Put in perspective, global temperatures decreased by this amount between 1900 and 1910, according to NASA.

Given this tiny effect, I’m not surprised that expert climate economists commissioned by the Copenhagen Consensus Center ranked emission reductions last among cost-effective responses to climate change. More efficient methods, listed at FixTheClimate.com, include adaptation, climate engineering, and carbon storage technologies.

With or without global warming, people — especially those in developing nations –face threats from extreme temperature, coastal flooding, hurricanes, malaria, poverty, starvation, and water stress. While global warming may increase these risks, scholars including Indur Goklany and Bjorn Lomborg convincingly argue that directly reducing these threats and promoting prosperity save more lives at lower cost than attempts involving emissions reductions.

Tim Tebow: Fans should thank home school equal access laws

This article was printed in the Boulder Daily Camera on December 17, 2011.

No one would be talking about Tim Tebow’s football excellence had the Florida legislature acted differently when Tebow was nine years old. In 1996 the legislature allowed home-schooled students like Tebow to participate in local public school sports programs.

In high school, Pro Bowl line-backer Jason Taylor also benefited from such home-school friendly policies. But in college the NCAA revoked Taylor’s football scholarship for reasons related to his home schooling. In 1994 he successfully challenged the decision and regained the scholarship. After this case, reports ESPN, the NCAA streamlined eligibility requirements for home-schooled athletes.

In a 2007 ESPN interview, Taylor spoke out in support equal access for home-schooled athletes: “It’s important to let the kids know, and the people who are holding the kids back know, that there’s a lot of kids with a lot of potential.  … They just need a chance. … It’s a problem when you have sixteen states in our country that say it’s OK to play and the other 34 still have a problem with it. … Look, the parents are still paying tax dollars. If [the students] can’t play in the school system, then give the tax money back.”

The Tebow family has lent their name to TimTebowBIll.com, which advocates legislation “to allow homeschooled students equal access to sports and extracurricular activities” in Alabama. According to the site, Colorado is among 24 states that now allow equal access, while 15 have introduced legislation.

Jared Polis on U.S. Postal Service: end its “monopolistic protections and special treatment”

This originally appeared in the Boulder Daily Camera on December 3, 2011 in response to this question: The United States Postal Service is facing major financial constraints, and it is forecasting a record $14.1 billion loss for fiscal 2012. … What do you think the USPS should do?

Break free, USPS! Leave your over-protective and controlling parent: the U.S. government. Yes, the perks are nice. The Feds grant you monopolies on mail delivery and mailbox access. They exempt you from costs such as vehicle licensing, parking tickets, threats of antitrust suits, and taxes on sales, income, and property. The fifteen billion dollar U.S Treasury credit line is nice, too.

But Federal controls cripple you. The Feds make you deliver mail almost everywhere, six days a week, while restricting your ability to increase prices. Freedom to adjust prices and deliver on fewer days would save billions annually. Three of four Post Offices lose money. But U.S. Code prohibits closing them “solely for operating at a deficit,” and Congress must approve any layoffs.

Further, you must pre-fund your retirees’ health benefits, which your Postmaster General says is “effectively bankrupting” you. Yes, USPS retirees get health benefits! As your website says, “federal statutes hamper [your] ability to craft a market-based benefits package.” Indeed. DownsizingGovernment.org describes how your employees enjoy a “postal pay premium” between 20% and 35% compared to comparable private-sector employees.

USPS, listen to what Rep. Jared Polis, D-Boulder, wrote ten years ago. Ending “monopolistic protections and special treatment enjoyed by USPS” would “benefit … postal customers, postal employees, and businesses in the delivery sector. … Unless we unshackle USPS and allow it to leverage its infrastructure effectively as a normal privately owned company, then USPS will sadly fade away as it becomes increasingly irrelevant in the marketplace.”

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Thanks to Ari Armstrong for the Jared Polis reference.

Romney is lame, young Rs like Ron Paul equally, might like Gary Johnson more if he got any press

This article originally appeared in the Boulder Daily Camera on October 22, 2011.

“Unlike the incumbent, I won’t make the economy worse, I won’t keep spending us to the brink of fiscal catastrophe, and I won’t lie to you.” That’s what a Republican candidate should declare to defeat Barack Obama, writes Reason magazine’s editor-in-chief.  Can the GOP front-runner Mitt Romney assert this credibly?

Like a typical Republican politician, Romney talks a good game about effectively reforming costly fraud-ridden government dependency programs. But he opposes cuts to the military’s bloated budget. He claims to support repealing ObamaCare, but still defends the failing state-level version of Obamacare that he signed into law in Massachusetts. Worse yet, in 2007, Romney said that for national health care policy, “What you have to do is what we did in Massachusetts.”

Compare Romney’s proposals to the bold fiscal plan of candidate Ron Paul, who tied Romney for first in a Reason-Rupe survey of young Republicans. Paul’s plan would eliminate the budget deficit in three years by cutting government jobs, spending, and taxes, while eliminating foreign “aid,” corporate subsidies, burdensome regulations, five unconstitutional federal departments, and the dollar’s money monopoly.

More than Ron Paul, many young voters might prefer former New Mexico Governor Gary Johnson. His fiscal policy resembles Paul’s, while he is more pro-liberty on gay marriage and immigration. But TV networks have unjustly excluded Johnson from polls and debates despite his strong polling relative to invited candidates. The “Gary Johnson rule,” says the campaign website, is to continuously shift debate eligibility criteria to exclude candidates named Gary Johnson.

Paul Krugman’s space aliens won’t create jobs, repealing health control law will

This article was printed in the Boulder Daily Camera on September 10, 2011 in response to this question:

What do you think will help decrease unemployment and underemployment? What role do you think the government can, or should, play in encouraging job growth?

Space aliens attack!  Nobel laureate economist Paul Krugman says we need scientists to “fake an alien threat.”   ”A massive buildup to counter” the threat, real or not, would end the economic slump “in eighteen months,” he said. Dr. Krugman unwittingly shows how loony Keynesian economic “stimulus” schemes are.

As an EconStories rap explains: “If every worker was staffed in the army and fleet, we’d have full employment and nothing to eat. Jobs are a means, not the ends in themselves. People work to live better, to put food on the shelves. Real growth means production of what people demand. That’s entrepreneurship not your central plan.”

Repealing parts or all of last year’s health control law [HR 3590] would encourage real growth. One-third of small business owners sited the law’s requirements as the greatest or second greatest “obstacle to hiring more employees,” reports a recent U.S. Chamber of Commerce survey. Three of four business owners “somewhat agreed” that the law “makes it harder … to hire more employees.”

For example, the law compels employers to buy insurance for full-time employees.  In response, half of surveyed employers said they would “change their workforce strategy so that fewer employees work 30 hours or more a week,” reports Mercer consultants.

Is it merely coincidence that private-sector jobs growth stalled after health “reform” passed?  Economist James Sherk shows that in the fifteen months before “reform,” average monthly job growth exceeded 67,000 jobs. Since then, it has plummeted to around 6,500 jobs per month. Don’t blame alien abductions.

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Thanks to Grace-Marie Turner for her article: Repealing Health Care Legislation Will Create Jobs. That’s where I first read about a few of the health care bill references above.

 

My advice to college students

This article was printed in the Boulder Daily Camera on August 27 2011 in response to the question:

What advice would you offer to today’s college freshmen, or college-aged young people? What words of advice do you wish you would have received at that age?

My friend Alex thought he wanted to be a software engineer. As a CU-Boulder student, he majored in computer science.  Since loved philosophy, he majored in that, too.

With computer science, Alex ensured he would graduate with marketable job skills. This may sounds obvious but apparently many students don’t share this view. According to economist Richard Vedder, “30 percent of the working college graduates in the U.S. … have jobs that do not require a college degree.”

By his senior year, Alex realized that instead of becoming a software engineer, he preferred a career in academia as a philosopher. He is currently completing his philosophy PhD at a top-ranked philosophy department.

So what’s my advice?  Choose an enjoyable “money” major that gives you marketable skill. If you’re most passionate about this major, great.  But if you’re more passionate about a less job-oriented field, make this your “fun” major or minor.

Pursue your “money” major as a backup, but also explore how to create a career doing what you love. Know who your heroes: people you admire, be they entrepreneurs, scholars, or artists. Learn their career paths. Talk to professors and alumni to figure out the next step toward emulating your heroes.

You might end up choosing a profession based on the “money” major while remaining a weekend amateur in your “fun” major.  But so long as it’s a conscious choice, rather than “doing what’s practical,” you won’t regret it. “Amateur” derives from the Latin “to love,” after all.

Debt ceiling & reducing deficit without raising taxes

The Daily Camera asks: Lawmakers in Washington continue to be divided about raising the $14.3 trillion debt ceiling, which faces a deadline of Aug. 2, the day the Treasury Department says it will lose borrowing authority. Meanwhile budget talks regarding possible tax increases and debt reduction continue. What do you think?

My response:

Debt ceiling? What debt ceiling?  ”In the last 10 years, Congress has raised the debt ceiling 10 times,” notes economist Veronique de Rugy.

The real problem is excessive government spending that has created the huge debt. Spending has increased more than 60% in the past ten years.  ”43 cents of every dollar spent is borrowed,” de Rugy estimates.  According to USDebtClock.org, the federal debt exceeds $46,000 per U.S. citizen.

This spending is unsustainable and hazardous. The Congressional Budget Office warns of ” lower income growth” and risk of a “sudden fiscal crisis” that requires “spending cuts or tax increases more drastic and painful than those that would have been necessary had the adjustments come sooner.”  Taxation and government borrowing crowds out investment in private capital. This diverts “resources that could be used more productively. … U.S. companies are less likely to build new plants, conduct research, and hire people,” de Rugy explains.

As a remedy, Reason magazine suggests a “19 Percent Solution,” which refers to typical levels of tax revenue relative to GDP. The plan would balance the budget without raising taxes by reducing spending by less than 4% annually for ten years.

Since entitlement programs drive much of federal spending, these cuts will be unlikely so long as people see the programs as moral. But as forced charity, these entitlement programs are immoral. Charity can be virtuous, but there’s no virtue in being forced to donate to a charity, or empowering politicians to force others to do so.

This was originally published in the Boulder Daily Camera on July 16 2011.

Red-light cameras can blame drivers for poor traffic engineering

A movement against red light traffic cameras “appears to [be] gaining traction across the country,” reported MSNBC last week. Boulder officials want to add more red light cameras. Is this a good idea?

Say an intersection has an abnormally high rate of red light violations. Using red-light cameras puts blame on the drivers. But this seems unfair, as the same drivers also use safer intersections nearby. It’s more reasonable to first look for deficiencies in signal timing, visibility of signals, signs, and lane markings.

To encourage such solutions, the National Motorists Association offers a “$10,000 Ticket Camera Challenge” for intersections with high red light violations. The NMA guarantees “a minimum 50-percent reduction in red-light violations through the application of engineering solutions” or it will “pay the community $10,000 [for] any traffic safety program or project it chooses.”

Traffic cameras are also legally questionable, as defendants cannot confront their accuser.  A California Superior Court Judge recently struck down eight cases of alleged red light running for these reasons. “Defendants here are entitled to be confronted with the testifying witness at trial,” she wrote.

As for effectiveness, data from the Boulder’s Transportation division shows decreased accidents at intersections after camera installations. But other factors could have been relevant. For example, changes in signal timing, all-red durations, and traffic volume. Further, there was no mention of how accident rates changed at intersections without cameras.

These shortcomings are typical of red light traffic camera studies showing benefits.  A report by the Transportation Research Board states: “In many cases, the flaw in the analysis was the lack of a proper control group.”  In some cities, traffic accidents increased after the addition of cameras, as the NMA’s website documents.

A version of this article was printed in the Boulder Daily Camera on July 2, 2011.

Boulder & Denver bike-share: boon or boondoggle?

B-cycle is Boulder’s new bike share program. Denver’s B-cycle program is a year old. Does “B” stand for boon or boondoggle?  The Boulder program’s start-up costs included half a million dollars taken from taxpayers: half collected by the City of Boulder, half from federal “stimulus” funds.  Denver B-cycle received $210,000 from the “stimulus.”  Yes, B-cycle’s bikes and technologies do sound impressive. But if it’s a true boon, then it should have been able to raise sufficient start-up funds from investors, sponsors, and donors.

Some might argue that private funding could not have built B-cycle. But as economist Henry Hazlitt would say, B-Cycle “has in fact been built by private capital – the capital that was expropriated in taxes.”  We won’t see the goods, services, and non-profit ventures that never materialize because governments took money by force from people who would have spent it differently.

Potentially expensive bike maintenance may deter private investors from investing in bike-share ventures. As law professor Steve Clowney describes: “No individual bears a significant portion of the costs if they damage a bicycle … users have little incentive to take care of the bikes.”  The New York Times reports that sustaining Paris’s bike-share requires the repairing “some 1,500 bicycles a day,” or seven percent of its fleet.

Or maybe Montreal’s experience deterred investors. Because of high start-up costs, “the non-profit agency that runs the city’s bike-rental program … is running a $31.7 million deficit,” reported the CBC.

Voluntary donations, sponsorships, and investments should fund B-cycle. It should be a revenue source for Boulder and Denver, not an expenditure of taxpayers’ money. For example, they could charge B-cycle for placing “B-stations” on city-owned land.

A version of this article was published in the Boulder Daily Camera on May 21, 2011.

Thanks to Marc Scribner at the Competitive Enterprise Institute for his post on Washington DC’s bike-share program.

The Henry Hazlitt quote is from his excellent book, Economics in One Lesson, which the Foundation for Economics Education has put on-line.