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Common
Sense, by Paul Jacob
July 15, 2005
Cure for
Poverty
Bob Geldorf and the superstars who recently held
Live 8 concerts across the globe made a lot of
noise. Live 8, the sequel to Live Aid, sought to
enlist our support in pressuring the G-8 nations to
spend whatever it takes to end poverty in
Africa.
But the quiet truth rarely got much notice. You
see, a cure for poverty has already been found.
Yes, a cure!
Freedom.
And by freedom I mean the rights to private
property, to buy and sell, to compete for business.
Free markets and free individuals -- speaking,
trading, praying, working, with maximum freedom and
minimum regulation from their government.
Unfortunately, the cure is too rarely
prescribed. In the cruel history of our species,
those wielding political power commonly doctor up
the laws favoring themselves rather than the
general interest of the people.
Africa is such a place, sadly . . . poor
precisely because of the many despots in
power.
The Live 8 campaigners are right to demand
western governments end the agricultural subsidies
that hurt African farming. But the rest of the Live
8 agenda rehashes the same old snake oil: the West,
they say, with wealth produced by our free market
economy, must bail out countries in Africa, where
government corruption and tyranny make progress
impossible.
Giving more aid to tyrants will never end
poverty. Africa needs freedom, pure and simple.
Next campaign? Call it Liber 8.
This is Common Sense. I'm Paul
Jacob.
July 8, 2005
The
Betting Heats Up
I'm not a gambler. At cards, I'd rather bet with
matchsticks than real money. But I do make
investments. That's my sort of gamble.
This came home to me while reading a strange
piece by Ronald Bailey, on Reason Online. He wrote
about a bet that an MIT climatologist made. This
Richard Lindzen -- a pretty smart fellow -- has
caused quite a stir. He bet that in 20 years global
average temperatures would be lower than they are
now. Then James Annan of the Frontier Research
Center for Global Change challenged Lindzen to put
real money into the bet. Unfortunately, the two
couldn't quite come to terms on the odds.
Bailey likes these bets. More scientists in the
public prediction biz should put their money where
their mouths are, he thinks. James Annan agrees,
citing "the famous bet" between eco-doomsayer Paul
Ehrlich and savvy economist Julian Simon. Simon bet
Erhlich that a bundle of commodities of Ehrlich's
choosing would decrease rather than increase in
price over a given time. Simon won.
It'll be interesting to follow the global
warming debate as it hits the odds makers.
But I bet we can do better than this kind of
betting. It seems to me, if you believe that the
globe is going to warm significantly, and that the
oceans are going to rise, you'd be buying up hills
and mountains -- and not invest in Florida, the
least elevated state of the union.
So, I'll be really worried about global warming
when I hear that the price of high ground is
steeply rising while beach prices drop.
This is Common Sense. I'm Paul
Jacob.
July 1, 2005
Dying
for Medical Freedom
Canada is not a communist country. Really, it's
not -- except when it comes to medical care.
Canada is the only industrialized country that
prohibits citizens from privately contracting for
medical care. In other words, no matter how much
money you can afford to pay -- no matter how much
you've saved, no matter how much you might be
willing to pay for private insurance -- you're
stuck in the public health care system waiting and
waiting and waiting for care. (Or coming to the
U.S.)
How long are the waits?
In mid-June, in a case brought by a doctor and a
patient, Canada's Supreme Court found that the
evidence "shows that delays in the public health
care system are widespread, and that, in some
serious cases, patients die as a result of waiting
lists for public health care."
The court thus concluded that Canada's invasive,
idiotic, and communistic outlawing of private
medical care is unconstitutional. Thus far, the
ruling only applies in the province of Quebec, but
it will likely be expanded through other lawsuits
in other provinces. As the doctor that sued asked,
"How could you imagine that Quebeckers may live and
the English Canadian has to die?"
Enter Prime Minister Paul Martin, who sees it
differently. He said the ruling only shows how
urgent it is "to strengthen the public health care
system."
He added, "We are not going to have a two-tier
health care system in this country. Nobody wants
that."
Well, nobody except the people dying for lack of
care . . . or almost any Canadian with a lick of
sense.
This is Common Sense. I'm Paul
Jacob.
June 24, 2005
Fewer
Roads for More People
What do Beijing, China, and Portland, Oregon,
have in common? Urban congestion. It's much worse
in Beijing . . . but Portland's traffic congestion
isn't getting better.
Both in Beijing and in Portland, the culprit is
easy to see: economic progress. People getting
richer, building new homes, adding to the city
population and the number of automobiles. In
Beijing, no one wants to stop the progress. Can't
say that about Portland, though.
Everyone in Beijing knows that the solution is
more roads. In Portland, lots of influential people
think roads are the wrong way to go. Portland
politicians want, instead, to go back to what
Beijing once was: a centralized city with buses and
bikes and pedestrians. They see cars and more roads
and decentralized sprawl as the enemy.
Fortunately, at least one Portland group, the
Cascade Policy Institute, fights the nonsense
that's making Oregon less and less livable.
Institute president John A. Charles, Jr., sets the
record straight. "Urban planners," he writes, "have
long claimed that you 'can't build your way out of
congestion,' but the data clearly show that new
roads make a difference." A new study, Charles
explains, "divided cities into three categories:
those with low, medium and high levels of
road-building relative to increases in daily miles
traveled. Only the cities that aggressively built
roads during the past 20 years were able to keep
congestion levels down."
Beijing's new drivers are saddled with a corrupt
bureaucracy that steals money instead of building
roads. In Portland, it's maybe worse. They're stuck
with ideologues who think their job is more
congestion.
This is Common Sense. I'm Paul
Jacob.
June 17, 2005
Speaking
of Pork
House Speaker Dennis Hastert and I have
something in common. We were both born in Illinois
-- he in Aurora and I in Evergreen Park.
These days, non-profit groups in Aurora are
probably glad it worked out this way. Since 1999,
when Hastert became Speaker, they've been showered
with federal dollars. Hastert's district has gotten
seven times what the average congressional district
would get in earmarked spending. I haven't steered
one federal dollar to Evergreen Park.
John D. Scofield, a spokesman for the House
Appropriations Committee, defends congressional
earmarks for local projects, saying that
congressmen "know the needs on the ground." He
didn't say it, but they also know their own
political "needs" in the district, and pork
spending wins them friends -- and votes.
The trouble with pork is not that the recipients
can't use the money. It's how the money gets there
-- through Congress.
Scott Lilly, a former Democratic chief of staff
on the House Appropriations Committee, complains
that "the big hogs" -- such as Hastert -- "are
getting a disproportionate share" of the
pork.
That's the usual battle in Washington: which
bandit will make off with the most.
Our system of citizen control of government has
been turned on its head. We are taxed most by the
politicians furthest away from us. Then they use
our tax money to root and slop around in our local
affairs.
The answer is for Washington to take a lot less.
Then let Aurora, lock, stock, and pork-less barrel
pay its own way.
That goes for every other city, including
Evergreen Pork. I mean Park.
This is Common Sense. I'm Paul
Jacob
June 10, 2005
Beating
the Blob
Remember that old Steve McQueen movie, "The
Blob"? Well, government is like the Blob. It grows
and grows, gobbling up everything in its
path.
Truth is, our inability to control government
growth is more frightening than any scary movie.
The consequences can be disastrous for our
pocketbooks and for our freedoms.
Just as there was an antidote for the Blob,
there is an antidote for ever-expanding government.
It's called the Taxpayers Bill of Rights, or TABOR
for short. Colorado voters put TABOR in place in
1992, and it has kept government spending from
mushrooming out of control there while returning
billions of tax dollars to the people.
But now the legislature has placed Referendum C
on this November's ballot, asking for a $3 billion
dollar tax increase. Politicians of both major
parties and a cabal of special interests will try
to convince voters that government spending going
up 7 percent is just not enough. I doubt that
Colorado voters will fall for it.
Meanwhile, other states have noticed TABOR's
benefits. Ohio activists are petitioning to place a
similar measure on their ballot this November.
Unfortunately, in Nevada, Senate Joint Resolution
5, modeled after the Colorado Taxpayers Bill of
Rights, was defeated.
The Las Vegas Review-Journal
editorialized that TABOR represents "a modest
effort to handcuff the metastasizing Nevada
bureaucracy at a time when lawmakers routinely
approve budgets that increase state spending by
more than 20 percent every two years." The
editorial went on to advise Nevadans to use the
initiative to put it on the ballot.
Good advice.
This is Common Sense. I'm Paul
Jacob.
June 1, 2005
Not Even
Sporting
In sports, it would be a scandal were one team
(let's call them the Incumbents) to write the rules
under which they and their opponents (say, the
Challengers) played. It would be even worse if the
Incumbents, after each season, went back to re-
rigging those rules.
Yet, that's American politics today . . . now
that the First Amendment has been nullified by
Congress's Bipartisan Campaign Reform Act, commonly
known as McCain-Feingold.
The First Amendment reads, "Congress shall make
no law . . . abridging the freedom of speech, or of
the press. . . ." But today, incumbents in Congress
decide by law how much individuals may give to
candidates. And how much Political Action
Committees may give. And how much you may give to a
PAC. And whether non-profit groups may mention a
candidate's name or even show the bum's likeness
anywhere close to an election. (They may not.)
Further, Congress takes upon itself supposedly
"tricky" issues like how to silence 527s, or
whether blogs should be regulated. Or churches.
Of course, money and speech -- like water -- are
known to find their way. Thus, the congressional
assaults on political speech can never cease, and
Congress never rest. Which is why the high court
actually encouraged the incumbents in Congress not
to stop with McCain-Feingold, but continually to
tinker with the election laws to drive out any
"outside" or "unregulated" new money or speech that
makes it through the current maze.
In sports, this would be a scandal. An outraged
Congress would even hold hearings!
In politics, it is business as usual.
This is Common Sense. Im Paul
Jacob.
May 27, 2005
Fossil
and Fuels
Have you noticed all the news stories about
dinosaurs and fossils and new species and
all?
With increasing frequency scientists are
unearthing new species, both living and dead. Not
long ago we read about a new kind of monkey. I
recall a shrimp found living in the deserts of
Idaho, of all places. Skeletons of a recently
extinct hominid line were discovered in
Indonesia.
And now Utah has a new dinosaur. They found
hundreds of fossil skeletons of this new long-
deceased species.
I haven't read the paper today -- there may be a
new discovery.
But these discoveries got me thinking. According
to prominent scientific prophets back in the '70s,
we were supposed to have run out of fossil fuel oil
some time ago. And yet we haven't. New sources are
being found. Further, I recently came across
something that knocked my socks off. In Russia,
scientists have been long developing a very old
theory of the origin of petrol: the abiotic theory.
Petroleum, this body of scholarship insists, is not
formed from decaying biomass. It is, instead, a
natural product of the earth's mantle, not a
"fossil fuel" at all.
This is so "out there" that it could just fizzle
as another junk science heresy. Or it could
explode, making the creation/evolution controversy
seem like my kids' squabbles at breakfast. What if
major petroleum source discoveries were reported as
often as dinosaur digs? What if our biggest problem
became too much oil, not too little?
In any case, let's keep reading the Science
section of the paper.
This is Common Sense. I'm Paul
Jacob.
May 22, 2005
No
Small-Scale Change
The most serious problem facing South Carolina
Governor Mark Sanford is a school system that ranks
near the bottom nationally in virtually every
educational category. So Governor Sanford put
forward a bold plan, called "Put Parents in
Charge," to enable universal school
choice.
The plan encourages more private investment in
education and allows parents throughout the state,
of all economic means, to have greater choice about
their kids' education. While 66 percent of citizens
support the idea, it has been opposed from day one
by the state's education establishment. So last
week legislators killed the bill for this session,
siding with the politically powerful education
establishment rather than the people.
A Greenville News editorial summed up what many
legislators were arguing: "South Carolina needs a
small-scale school choice initiative." This is par
for the course. If you can't argue against the
reform, just try to weaken and marginalize
it.
But the Governor will be back -- and not with
some small-scale window dressing. Undaunted by the
House vote, Sanford stated, "School choice has
proven to work everywhere it's been implemented,
providing opportunity for kids who take advantage
of it and improving public school performance at
the same time . . . Despite a lot of accusations
from folks who would rather things stay as they
are, at no time during this discussion was anybody
able to refute that. We're going to keep
pushing."
You can't keep a good man down -- or his bold
plan to "Put Parents in Charge."
This is Common Sense. I'm Paul
Jacob.
May 13, 2005
The Man
vs. the Business
How dangerous is big business? How effective can
small government be?
Take the case of college student David Zamos. He
bought the latest upgrades to Microsoft's Windows
and Office software from his university's computer
store. But he soon realized he'd have to reformat
his hard drive to install the software. That seemed
a bother. So he returned the software
unopened.
Unfortunately, the store wouldn't take it back,
and later on, Microsoft itself refused to give a
refund. So Zamos offered the unused merchandise for
sale on eBay. And then got sued. By Microsoft. For
copyright infringement.
The gist of the long story? Thirty-seven
filings, back and forth, between four lawyers from
the multibillion dollar company and a student whose
income that year was less than four thousand
dollars. Microsoft scored a high point in absurdity
by accusing Zamos of unfair competition, saying
that his $143.50 eBay profits forced the company to
sustain "substantial impact." Zamos did his
research and fought back.
It seems that Microsoft routinely sues all sorts
of people for this kind of thing; most simply cave.
But Zamos knew he was in the right. Further, he
wasn't greedy. He just asked for an apology -- and
the costs of all of his Xeroxes. Microsoft
privately settled rather than make a public
apology.
This story underscores the need and
effectiveness of a rule of law. It wasn't big
government that stopped a big company's over-reach.
It was just one innocent man and a simple court of
law in Akron, Ohio.
This is Common Sense. I'm Paul
Jacob.
May 7, 2005
A Crisis
You'll Never Notice
The Internet is amazing. It's an elaborate
network based on a few rules and protocols. And
it's growing far faster than the productivity of
any nation on the planet. Or even the growth of
government under our spendthrift united government
in America.
That's some growth.
So, how is the Net's growth managed?
Well, piecemeal, for the most part. There's no
over- arching plan.
But the rules need updating every now and then.
In a fascinating article on the BBC's website,
readers can learn how a scarcity of something
called IP numbers might be a problem. But the good
people at the Internet Engineering Task Force have
a solution, a new protocol called IPv6, which will
not have any limit on the lengths of IP addresses
that each computer on the Net has. So the 4 billion
limit under the current system will become, under
IPv6, no limit at all.
The BBC describes the task force as "a large
international community of network designers,
operators, vendors, and researchers working on the
evolution of the net's architecture and the way
this information is sent and received." The article
doesn't mention government once. Apparently, this
crucial group doesn't need a big role for
government.
Which is good, because our government is having
some really big problems coordinating to balance
budgets, or keep Social Security solvent. It's good
to know that the amazing Internet will continue to
grow, and meet its next crisis without most
netizens even noticing that there was ever a
problem.
Go, IPv6!
This is Common Sense. I'm Paul
Jacob.
May 1, 2005
The
Death-to-Small-Business Tax
The death tax is a live issue. The Small
Business and Entrepreneurship Council is just one
group fighting it. Citizens can go to sbecouncil.org
and sign an online petition.
From that site one learns that the current death
tax is slated to expire in 2010. But, like the mad
slasher in a teenage horror flick, the tax is fated
to rise again the very next year.
The House has passed a repeal bill. Let's hope
the Senate kills it once and for all.
Now, some people deem the death tax the best
tax. What rights to property can the dead have? Why
build up a class of inheritors who can coast
through life without working?
Ignore the rather ugly class envy, here. Ask,
instead, why the general community deserves an
individual's wealth, after his or her death, and
not that person's selected inheritors. Wealth is
usually the result of hard work and intelligence
that the community had little to do with, though
community boosters often like to usurp credit. The
most important things the community and its
government can give a business -- peace and
security and a legal system -- are nothing more
than what any person deserves. There's no special
claim.
As for class, well, consider what the death tax
does. It forces many inheritors to sell off family
businesses to pay off the tax. This penalizes
privately held businesses, giving yet another
advantage to public stock companies. In a world
where people worry about mom and pop businesses,
supporting the death tax makes no sense.
It's also called an inheritance tax, but there's
a better term: the death-to-small-business
tax.
This is Common Sense. I'm Paul
Jacob.
April 15, 2005
Unintended
but Predictable
There's a so-called Law of Unintended
Consequences that describes the negative results of
well-meaning interventions in the affairs of men.
However, If you know whats going to happen, can
consequences ever be unintended?
I think we all know the basics: if you punish a
behavior, you discourage it, and if you reward a
behavior, you encourage it.
I'll tell you what made me put on my economics
hat today. A new European Union regulation is
forcing airlines to pay passengers if a flight is
delayed. Just delayed. Not as a matter of agreement
between customer and vendor but as a matter of law.
A single flight delay can now cost an airline
hundreds of thousands of dollars.
Now, delays usually have causes, including
safety- related causes. So this regulation punishes
airlines for safeguarding passengers.
You can predict what the consequences will be.
Recently a British Airways plane was in the news
after its pilot decided to fly across the Atlantic
with a busted engine. Otherwise the airline would
have had to pay over the $280,000 to compensate the
passengers. I'm not saying the pilot shouldn't be
blamed for making a bad decision here. But a
regulatory regime that punishes businesses for
exercising reasonable diligence bears blame
too.
And there's another unintended consequence to
this over-regulation. This, of course, is just the
sort of "innovative" rule that an American
politician would look at and say, "Hey, why aren't
we doing what the sophisticated Europeans are doing
here? We have flight delays!"
It sounds like crash and burn to me.
This is Common Sense. I'm Paul
Jacob.
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