Category Archives: Cato Institute

Will we ever learn from Solyndra or we doomed to keep throwing federal money down the drain?

Will we ever learn from Solyndra or we doomed to keep throwing federal money down the drain?

February 21, 2014 3:54PM

Another $6.5 Billion in DOE Loan Guarantees

            By   Nicole Kaeding

After Solyndra collapsed, the Department of Energy (DOE) should have learned its lesson. Guaranteeing loans for energy and industrial companies is a bad idea. The failures of Beacon Power and Fisker Automotive should have driven home the message. Now, we have further proof that the DOE isn’t paying attention.

Yesterday, DOE Secretary Ernest Moniz traveled to Georgia to announce $6.5 billion in loan guarantees for two new nuclear reactors already under construction.

The loan, like so many others, has the markings of an incredible risky use of taxpayer dollars. According to the Washington Post, the project is already 21 months behind schedule. Additionally, Southern Company, the largest shareholder of the project, had its ratings’ outlook downgraded from “stable” to “negative” by Standard and Poor’s last year, in part because of “cost overruns” at the Georgia facility.

Even more frustrating, the company already had private loans in place to finance construction. Now we, the taxpayers, will save the company $250 million a year in interest costs by bearing the full burden of default.

The company also benefits from $2 billion in other federal tax credits, according to its CEO.

Some deal.

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The Milwaukee school choice program increased academic performance, graduation rates and college enrollment and was half the cost per pupil!

 

The Milwaukee school choice program increased academic performance, graduation rates and college enrollment and was half the cost per pupil!

February 25, 2014 9:01AM

Pounding the Table, Not the Facts, on School Choice

            By   Jason Bedrick

There’s an old legal proverb about how to win a court case: “If the law is on your side, pound the law. If the facts are on your side, pound the facts. If neither is on your side, pound the table.” In this factually-challenged attack on school choice, two lawyers at the UNC Center for Civil Rights do a great deal of table pounding.

Despite mountains of evidence to the contrary, the lawyers charge that school choice programs don’t work and that they increase racial segregation. For example, they claim:

…in states with [school choice] programs, student achievement at the private schools is no better, and often worse, than in the public schools. In fact, in Milwaukee and Cleveland, whose voucher programs are the country’s longest running, traditional public school students outperform voucher students on available proficiency measures.

Even read in the most charitable light, the lawyers misleadingly compare apples and orangutans. Participants in school choice programs are generally more disadvantaged than the general population, so it is absurd to compare their average performance against the general population, which includes all the students in wealthy “public” school districts (where low-income parents have been arrested for trying to enroll their kids). Government school advocates rightly object when someone compares average private school performance to average government school performance. The private schools outperform government schools on average, but because both parents and the private schools select each other, the comparison breaks down. The same is true here.

A meaningful comparison requires a randomized-controlled trial, which is the gold standard of social science research because the process of randomization allows researchers to compare like against like and to isolate the effect of the “treatment” (in this case, the offer of a school choice scholarship). Fortunately, there have been 12 such studies addressing this very question from highly-respected institutions like Harvard University and the Brookings Institution. Eleven found that school choice programs lead to positive student outcomes, including higher academic performance and higher rates of high school graduation and college matriculation. One study found no statistically significant difference and none found a negative impact.

 

These studies include evaluations of the Milwaukee and Cleveland school voucher programs that the lawyers falsely claimed were underperforming vis-a-vis government schools. In fact, a longitudinal study of the Milwaukee program found that it increased academic performance, graduation rates, and college enrollment (and did so at about half the cost per pupil):

“Students enrolled in the Milwaukee voucher program are more likely to graduate from high school and go to college than their public school counterparts, boast significantly improved reading scores, represent a more diverse cross-section of the city, and are improving the results of traditional public school students,” said the study’s press release.

“Among the new findings are that students enrolled in the Milwaukee Parental Choice Program (MPCP)—the nation’s oldest private school choice program currently in operation—not only graduate from high school on time by seven percentage points more than students enrolled in Milwaukee Public Schools (MPS), but they are also more likely to enroll in a four-year college and persist in college.”

In other words, the lawyers’ assertion that the achievement of school choice students is “is no better, and often worse” is flat out false. It’s not possible to state with any certainty where they’re getting their faulty information (quite possibly the usual suspects), but President Obama made similarly false claims in a recent TV interview, prompting prominent researchers including of Paul E. Peterson of Harvard University and Patrick Wolf of the University of Arkansas to correct the record:

The faulty empirical claims about the effectiveness of school choice programs were bad enough, but the lawyers’ greater offense was cynically raising the specter of racial segregation:

We also know the historical links between racism and private schools. In 1964, 83 private schools enrolled approximately 9,500 students in N.C. But from 1968 to 1972 – when advocates and the federal government began to enforce meaningful school desegregation – the state jumped from 174 private schools and 18,000 students, to 263 schools and over 50,000 students. Surging enrollment in non-public schools was often concentrated in areas with high concentrations of African-American students , and the segregative legacy of these private schools and academies continues to this day:

Bertie County is 62 percent African American. Lawrence Academy was founded in Bertie County in 1968. Its student body is 98 percent white.

Halifax County is 53 percent African-American. Halifax Academy and Hobgood Academy were both founded in 1969. Halifax Academy is 98 percent white; Hobgood Academy is 95 percent white.

Hertford County is over 60 percent African-American. Ridgecroft School, founded in 1968, is 97 percent white.

Northampton County is 58 percent African-American, but Northeast Academy, established in 1966, is 99 percent white.

First, it’s absurd to link the history of segregation solely to private schools when the public schools were segregated for over a century. This is especially absurd since inter-district segregation is now higher among government schools than 50 years ago.

Second, these anecdotes tell us absolutely nothing without context. It’s possible that these schools are illegally discriminating on the basis of race, but it’s also possible that this merely reflects the fact that, under the status quo, wealthier whites are better able to afford private school than less wealthy blacks, which is exactly the inequity that NC’s school voucher program seeks to address.

It’s telling that the lawyers refrained from citing any of the empirical evidence on the matter:

Eight empirical studies have examined school choice and racial segregation in schools. Of these, seven find that school choice moves students from more segregated schools into less segregated schools. One finds no net effect on segregation from school choice. No empirical study has found that choice increases racial segregation.

Additionally, a recent study from the Louisiana Department of Education also found that the state’s school voucher program improves racial integration. More than 85 percent of the scholarship recipients in Louisiana are black. Likewise, school choice programs in other states disproportionately benefit minority students, including 81 percent of scholarship students in Milwaukee, Wisconsin, and 78 percent in Florida.

The lawyers concluded that it is “a twisted irony that the leaders of the voucher movement claim a racial justice rationale for their scheme.” In fact, the twisted irony is that an organization with the words “civil rights” in their title would work so hard to deprive minorities of the ability to choose the schools that work best for their own kids. They’re joined by other defenders of the government school monopoly who are suing to block North Carolina’s nascent school choice program. If these self-proclaimed “civil rights” lawyers really cared about racial justice, they would stop standing in the school house door.

 

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Open letter to President Obama (Part 529) Pro-life Atheist Nat Hentoff and the case of Baby Doe

Open letter to President Obama (Part 529)

(Emailed to White House on 6-12-13.)

President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here. I know that you don’t agree with my pro-life views but I wanted to challenge you as a fellow Christian to re-examine your pro-choice view. Although we are both Christians and have the Bible as the basis for our moral views, I did want you to take a close look at the views of the pro-life atheist Nat Hentoff too.  Hentoff became convinced of the pro-life view because of secular evidence that shows that the unborn child is human. I would ask you to consider his evidence and then of course reverse your views on abortion.

___________________

Nat Hentoff is an atheist, but he became a pro-life activist because of the scientific evidence that shows that the unborn child is a distinct and separate human being and even has a separate DNA. His perspective is a very intriguing one that I thought you would be interested in. I have shared before many   cases (Bernard Nathanson, Donald Trump, Paul Greenberg, Kathy Ireland)    when other high profile pro-choice leaders have changed their views and this is just another case like those. I have contacted the White House over and over concerning this issue and have even received responses. I am hopeful that people will stop and look even in a secular way (if they are not believers) at this abortion debate and see that the unborn child is deserving of our protection.That is why the writings of Nat Hentoff of the Cato Institute are so crucial.

The Indivisible Fight for Life

by Nat Hentoff. Presented at AUL Forum, 19 October 1986, Chicago. This article is part of no violence period.

I’ll begin by indicating how I became aware, very belatedly, of the “indivisibility of life.” I mention this fragment of autobiography only be cause I think it may be useful to those who are interested in bringing others like me – some people are not interested in making the ranks more heterogeneous, but others are, as I’ve been finding out – to a realization that the “slippery slope” is far more than a metaphor.

When I say “like me,” I suppose in some respects I’m regarded as a “liberal,” although I often stray from that category, and certainly a civil libertarian – though the ACLU and I are in profound disagreement on the matters of abortion, handicapped infants and euthanasia, because I think they have forsaken basic civil liberties in dealing with these issues. I’m considered a liberal except for that unaccountable heresy of recent years that has to do with pro-life matters.

It’s all the more unaccountable to a lot of people because I remain an atheist, a Jewish atheist. (That’s a special branch of the division.) I think the question I’m most often asked from both sides is, “How do you presume to have this kind of moral conception without a belief in God?” And the answer is, “It’s harder.” But it’s not impossible.

For me, this transformation started with the reporting I did on the Babies Doe. While covering the story, I came across a number of physicians, medical writers, staff people in Congress and some members of the House and Senate who were convinced that making it possible for a spina bifida or a Down syndrome infant to die was the equivalent of what they called a “late abortion.” And surely, they felt, there’s nothing wrong with that.

Now, I had not been thinking about abortion at all. I had not thought about it for years. I had what W. H. Auden called in another context a “rehearsed response.” You mentioned abortion and I would say, “Oh yeah, that’s a fundamental part of women’s liberation,” and that was the end of it.

But then I started hearing about “late abortion.” The simple “fact” that the infant had been born, proponents suggest, should not get in the way of mercifully saving him or her from a life hardly worth living. At the same time, the parents are saved from the financial and emotional burden of caring for an imperfect child.

And then I heard the head of the Reproductive Freedom Rights unit of the ACLU saying – this was at the same time as the Baby Jane Doe story was developing on Long Island – at a forum, “I don’t know what all this fuss is about. Dealing with these handicapped infants is really an extension of women’s reproductive freedom rights, women’s right to control their own bodies.”

That stopped me. It seemed to me we were not talking about Roe v. Wade. These infants were born. And having been born, as persons under the Constitution, they were entitled to at least the same rights as people on death row – due process, equal protection of the law. So for the first time, I began to pay attention to the “slippery slope” warnings of pro-lifers I read about or had seen on television. Because abortion had become legal and easily available, that argument ran – as you well know – infanticide would eventually become openly permissible, to be followed by euthanasia for infirm, expensive senior citizens.

And then in the New York Review of Books , I saw the respected, though not by me, Australian bio-ethicist Peter Singer boldly assert that the slope was not slippery at all, but rather a logical throughway once you got on to it. This is what he said – and I’ve heard this in variant forms from many, many people who consider themselves compassionate, concerned with the pow erless and all that.

Singer: “The pro-life groups were right about one thing, the location of the baby inside or outside the womb cannot make much of a moral differ ence. We cannot coherently hold it is alright to kill a fetus a week before birth, but as soon as the baby is born everything must be done to keep it alive. The solution, however,” said Singer, “is not to accept the pro-life view that the fetus is a human being with the same moral status as yours or mine. The solution is the very opposite, to abandon the idea that all human life is of equal worth.” Which, of course, the majority of the Court had already done in Roe v. Wade.

Recently, I was interviewing Dr. Norman Levinsky, Chief of Medicine of Boston University Medical Center and a medical ethicist. He is one of those rare medical ethicists who really is concerned with nurturing life, as contrasted with those of his peers who see death as a form of treatment. He told me that he is much disturbed by the extent to which medical decisions are made according to the patient’s age. He says there are those physicians who believe that life is worth less if you’re over 80 than if you’re 28.

So this is capsulizing an incremental learning process. I was beginning to learn about the indivisibility of life. I began to interview people, to read, and I read Dr. Leo Alexander. Joe Stanton, who must be the greatest single resource of information, at least to beginners – and, I think, non-beginners – in this field, sent me a whole lot of stuff, including Dr. Leo Alexander’s piece in the New England Journal of Medicine in the 1940s. And then I thought of Dr. Alexander when I saw an April 1984 piece in the New England Journal of Medicine by 10 physicians defending the withdrawal of food and water from certain “hopelessly ill” patients. And I found out that Dr. Alexander was still alive then but didn’t have much longer to live. And he said to Patrick Duff, who is a professor of philosophy at Clarke University and who testified in the Brophy case, about that article, “It is much like Germany in the 20s and 30s. The barriers against killing are coming down.”

Nearly two years later, as you know, the seven member judicial council of the American Medical Association ruled unanimously that it is ethical for doctors to withhold “all means of life-prolonging medical treatment” in cluding food and water, if the patient is in a coma that is “beyond doubt irreversible” and “there are adequate safeguards to confirm the accuracy of the diagnosis.” Now keep in mind “beyond doubt irreversible” and “adequate safeguards to confirm the accuracy of the diagnosis.” Death, to begin with, may not be imminent for food and water to be stopped, according to the AMA.

Then Dr. Nancy Dickey, who is chairman of the council that made that ruling, noted that there is no medical definition of”adequate safeguards,” no checklist that doctors would have to fill out in each case. The decision would be up to each doctor.

Aside from the ethics of this, for the moment, I would point out that the New England Journal of Medicine, or at least the editor, Dr. Arnold Relman, said fairly recently that there are at least 40,000 incompetent physicians in the United States – incompetent or impaired. At least.

Back to Dr. Norman Levinsky. This is all part of this learning process. It is not a huge step, he said, from stopping the feeding to giving the patient a little more morphine to speed his end. I mean it is not a big step from passive to active euthanasia.

Well, in time, a rather short period of time, I became pro-life across the board, which led to certain social problems, starting at home. My wife’s most recurrent attack begins with, “You are creating social mischief,” and there are people at my paper who do not speak to me anymore. In most cases, that’s no loss.

And I began to find out, in a different way, how the stereotypes about pro-lifers work. When you’re one of them and you read about the stereotypes, you get a sort of different perspective.

There’s a magazine called the Progressive. It’s published in Madison, Wisconsin. It comes out of the progressive movement of Senator Lafolette, in the early part of this century. It is very liberal. Its staff, the last I knew, was without exception pro-abortion. But its editor is a rare editor in that he believes not only that his readers can stand opinions contrary to what they’d like to hear, but that it’s good for them. His name is Erwin Knoll and he published a long piece by Mary Meehan, who is one of my favorite authors, which pointed out that for the left, of all groups of society, not to understand that the most helpless members of this society are the preborn – a word that I picked up today, better than unborn – is strange, to say the least.

The article by Meehan produced an avalanche of letters. I have not seen such vitriol since Richard Nixon was president – and he deserved it. One of the infuriated readers said pro-life is only a code word representing the kind of neo-fascist, absolutist thinking that is the antithesis to the goals of the left. What, exactly, are the anti-abortionists for? School prayer, a strong national defense, the traditional family characterized by patriarchal dominance. And what are they against? School busing, homosexuals, divorce, sex education, the ERA, welfare, contraception and birth control. I read that over five or six times and none of those applied to me.

I began to wonder if Meehan and I were the only pro-life people who came from the left. Meehan has a long background in civil rights work. And by the way, she said in the piece, “It is out of characterfor the left to neglect the weak and helpless. The traditional mark of the left has been its protection of the underdog, the weak and the poor. The unborn child is the most helpless form of humanity, even more in need of protection than the poor tenant farmer or the mental patient. The basic instinct of the left is to aid those who cannot aid themselves. And that instinct is absolutely sound. It’s what keeps the human proposition going.”

I’ll give you a quick footnote on the Progressive. Erwin Knoll got a series of ads, tiny ads because they couldn’t pay very much even at the magazine’s rates, from a group called Feminists for Life or America – a group, by the way, that is anti-nuclear weapons and is also very pro-life in terms of being anti-abortion. And the ads ran. There is a group called the Funding Exchange which is made up of foundations which are put into operation and headed by the scions of the rich. These are children who are trying to atone for their parents’ rapaciousness by doing good. The children are liberals. The Funding Exchange was so horrified to see those three tiny ads that even though the Progressive is soundly pro-abortion, the Funding Exchange not only dropped the grant they had given the Progressive, but they made a point of telling Erwin Knoll that they were going to make sure that other foundations didn’t give them any money either. I’m always in trigued at how few people understand that free speech encompasses a little more than the speech you like.

Well eventually, in addition to Mary Meehan, I found that there were a number of other pro-lifers who also do not cherish the MX missile, William Bradford Reynolds, or Ronald Reagan. And one of them is Juli Loesch, who writes and speaks against both war and abortion. She is the founder of Pro-lifers for Survival, which describes itself as a network of women and men supporting alternatives to abortion and nuclear arms. She’s rather rare, I find in my limited experience, among combatants on all sides of this question because she is unfailingly lucid – and she has a good sense of humor. In an interview in the U.S. Catholic she said that combining her various pro-life preoccupations “was the most fun I’ve ever had in my life. It’s great because you always have common ground with someone. For example, if you’re talking to pro-lifers you can always warmup the crowd, so to speak, by saying a lot of anti-abortion stuff. After you’ve got everybody celebrating the principles they all hold dear, you apply those principles to the nuclear arms issue. For instance, I’ll say ‘this nuclear radiation is going to destroy the unborn in the womb all over the world.’ And then I always lay a quote by the late Herman Kahn on them. He pointed out that about 100 million embryonic deaths would result from limited nuclear war. One hundred million embryonic deaths is of limited significance, he said, because human fecundity being what it is, the slight reduction in fecundity should not be a matter of serious concern even to individuals. Tell that to a pro-life group,” she says, “and their response will be, ‘That guy’s an abortionist.’ Well what he was was a nuclear strategist.”

I found other allies as a result of having been interviewed on National Public Radio as the curiosity of the month. Letters came in from around the country, most of them saying essentially what a woman from Illinois wrote:

“I feel as you do, that it is ethically, not to mention logically, inconsistent to oppose capital punishment and nuclear armament while supporting abortion and/or euthanasia.”

The most surprising letters were two from members of the boards of two state affiliates of the ACLU. Now I’m a former member of the national board and I was on the New York board for 17 years, and I well know the devotion of the vast number of the rank and file, let alone the leadership, to abortion. rights. So I was surprised to get these letters. One board member from Maryland said we had a board meeting where we approved with only one dissent (his) the decision of the national board to put the right to abortion at the top of its priorities – the top of its priorities. Forget the First Amendment and the Fourth, let Edwin Meese take care of those. There was no discussion, he said, of the relation of abortion to capital punishment.

The most interesting letter was from Barry Nakell, who is a law profes sor at the University of North Carolina. He is one of the founders of the affiliate of the ACLU there. And he gave me a copy of a speech he made in 1985 at the annual meeting in Chapel Hill of the North Carolina Civil Liberties Union. He reminded the members that the principle of respect for the dignity of life was the basis for the paramount issue on the North Carolina Civil Liberties Union agenda since its founding. That group was founded because of their opposition to capital punishment. Yet, he said, supporting Roe v. Wade, these civil libertarians were agreeing that the Constitution protects the right to take life. The situation is a little backward, Nakell told his brothers and sisters. In the classical position, the Constitu tion would be interpreted to protect the right to life, and pro-abortion advocates would be pressing to relax that constitutional guarantee. In Roe v. Wade, the Supreme Court turned that position upside down and the ACLU went along, taking the decidedly odd civil libertarian position that some lives are less worthy of protection than other lives. I asked Nakell how his heresy had been received. Apparently they’re much more polite down there than they are in New York. “With civility,” he said. As a matter of fact, he added, there were several members of the board who had been troubled for some time, but it’s interesting, they didn’t quite want to come out and say they were worried about Roe v. Wade,that they were worried about abortion. But Nakell took the first step. He’s an optimist by temperament and he tells me he expects to make more progress. And then he told me about a bumper sticker he had seen recently in North Carolina- “Equal Rights for Unborn Women.”

For several years now I’ve been researching a profile of Cardinal O’Connor of New York, which will be a book eventually. And in the course of that I came across Cardinal Bernardin’s “seamless garment” concept. It’s a phrase he does not use any more because of internal political reasons. It is now called the “consistent ethic of life,” which is fine by me. I miss “seamless garment” though, because there’s a nice literary flavor to it. But I’ll accept “consistent ethic of life.” Bernardin said, in a speech at Fordham that has won him considerable plaudits and considerable dissonance, “[N]uclear war threatens life on a previously unimaginable scale. Abortion takes life daily on a horrendous scale. Public executions are fast becoming weekly events in the most advanced technological society in history, and euthanasia is now openly discussed and even advocated. Each of these assaults on life has its own meaning and morality. They cannot be collapsed into one problem, but they must be confronted as pieces of a larger pattern.”

That had a profound effect on me. It’s not new. As a matter of fact, Juli Loesch thought of it before he did, as did the people at The Catholic Worker who got it, of course, from Dorothy Day. And it goes further back into the centuries. But there was something about the way Bernardin put it that hit me very hard.

So I decided by now, because I was considered by some people to be a reliable pro-lifer, I decided to go out to Columbus, Ohio, where I had been asked to speak at the annual Right to Life convention. And, I thought, I’m going to bring them the word, if they haven’t heard it before from Cardinal Bernardin. At first they were delighted to see me, but that didn’t last very long. Jack Willke and Mrs. Willke were there, and they can attest to the fact that in some respects I’m lucky to be here. I pointed out that pro-lifers – maybe this is chutzpah, telling people who have been in this all their lives what you’ve discovered in 20 minutes – that pro-lifers ought to be opposing capital punishment and nuclear armament and the Reagan budget with its dedicated care for missiles as it cuts funds for the Women/Infant/Children Program that provides diet supplements and medical checkups for mothers in poverty. Surely, I said, they should not emulate the President in these matters – and here I stole a line from Congressman Barney Frank – they should not emulate the President in being pro-life only up to the moment of birth. Well the faces before me began to close, and from the middle and the back of the dining room there were shouts. I couldn’t make out the words, but they were not approving. As I went on, there were more shouts as well as growls and table-thumping of an insistence that indicated a tumbrel awaited outside. I finally ended my speech to a chorus of howls, and several of the diners rushed toward the dais. I did not remember ever intending to die for this cause, but as it turned out the attacks were all verbal. Most of the disappointed listeners, once they caught their breath, charitably ascribed my failure to understand the total unrelatedness of nuclear arms and abortion to my not yet having found God.

But I discovered in other places that I didn’t have to bring them the news of the consistent ethic of life. I talked at the Catholic church outside Stamford, Connecticut last week, and they – including the pastor – understood the “consistent ethic of life” agreat deal better than I did. So I see some real hope for my point of view.

There are a lot of people like me out there who are troubled by abortion. That should not stop them from joining at least one of the more possibly compatible groups, but it does. They are unwilling to join what they consider to be the forces of Reagan, Rambo and Rehnquist. But there are beginning to be pro-life forces that they can in conscience – they have consciences too – join. One of them is Pro-lifers for Survival, another is Feminists for Life of America. And there is something that just started that I find very interesting. It’s very small now. It’s the first consistent-ethic-of-life political action committee, and it’s called JustLife. The people who started it were some what dismayed that anti-abortionists like Jerry Falwell, Pat Robertson, Jimmy Swaggart and other such household names were giving the impres sion that if Christ were in the Senate, he’d vote for Star Wars. The founders of JustLife thought that a new assembly of Christians – most of them, by the way, theologically conservative evangelicals and Catholics – ought, there fore, to start the political action committee.

What they aim to show is that there is another Christian perspective on these matters. JustLife is supporting candidates who advocate what it calls, again, a “consistent ethic of life.” A candidate does not have to be a Christian to get help from this PAC, but he or she does have to oppose abortion. Another requirement is a determination to end, rather than further institutionalize, the nuclear arms race. They’re against the MX missile. They’re against Star Wars. Now I think you see that the nuclear part of their program is mild. I’m a disciple of A. J. Muste. He was a Christian pacifist. The new PAC does not go so far as Muste or Dorothy Day. Instead, it urges verifiable multi-lateral disarmament. Everybody’s for that, except when you get to the negotiating table. One board member, Kathleen Hayes, who is managing editor of the Christian magazine, The Other Side, told the Catholic Register that she believes that unilateral disarmament is ultimately what the gospel would call us to. But the aim of JustLife is to pick up votes, and there’s a much more powerful gospel if you want to pick up votes, and that’s called deterrence.

The third basic criterion the candidate has to meet to get money from JustLife, is that he or she must recognize that there are actual poor people out there – not just freeloaders, as the Attorney General has suggested. Once the poor are seen as three dimensional, a JustLife candidate has to show that he or she would work to get them health care, housing and food. For as it was said, “Blessed are the hungry, for they shall be filled.” Distilling its tripartite credo in its first fundraising letter, JustLife em phasizes, “[W]e support an unborn child’s right to life. We also support that child’s right to adequate nutrition, housing, education and health care. We support that child’s right to live in a safe world.”

Now this political witness by Christians going contrary to the politics of most other pro-life groups – that is, those pro-life groups that have political agenda- is obviously well within the rights of free speech and assembly. Yet another interesting thing, and I find this dismaying, is that while a number of Catholic bishops agree with the thrust of JustLife – in fact one of them was originally on the board, and a consistent ethic of life is now an official position of the National Conference of Catholic Bishops as of last November – there are no Catholic bishops on the board of JustLife. The main reason is that there is a current lawsuit brought by Larry Lader, the pro-abortionist, challenging the tax-exempt status of the Catholic church on the charge that it has been engaged in political campaigning and in lobbying against abortion. Because of the length of that suit, its cost and its still uncertain outcome, the bishops are experiencing a chilling effect. And I’ve seen no editorials about that from people who would ordinarily be concerned with the First Amend ment.

Meanwhile, JustLife, having announced publicly its existence in June, has raised $45,000 from 1,300 contributors, expects to reach $60,000 by the end of the year and is gearing up for 1988. I’ll show you how it works in one state, because this could eventually happen elsewhere. In Nevada, the Pro-Family Coalition has endorsed Republican James Santini, but since Santini is against both the nuclear freeze and funding for poverty programs, JustLife is on the side of Congressman Harry Reid, who votes to fill the hungry, slim down the Pentagon and is also against abortion. They’re both against abortion, but only one, says JustLife, keeps on caring for life after birth. I would like to see this group grow, and other groups do the same thing or similar things. [Reid won in November.]

On Sunday October 25th, Cardinal O’Connor had a letter read at all masses at all parishes in the Archdiocese of New York. It was Respect Life Sunday. And this is how the letter began: “I am frightened and chilled by the continuing destruction of unborn human life, and now we are seeing precisely what we have been predicting all along. Once the victory seemed to be won on legalizing the killing of the unborn, attention was turned to the terminally ill. Now we are hearing a clamor thoughout the United States for legislation that will lift any regulations whatsoever in regard to sustaining the life of a terminally ill patient. Indeed the move is toward authorizing the deliberate speeding up of the deaths of vulnerable patients by starvation or dehydration. It all goes together. What is permitted today is often demanded tomorrow. If the current contempt for the unborn continues, in my judgment we will soon see required genetic screening programs, with public health authorities urging mothers to abort babies that may be born with defects. I’ve been reading that this summer the state of California has introduced a program which moves precisely in that direction. I plead with you to reflect with utmost urgency on what is happening. Do not think that your life, or your aging parents’ lives, or the lives of the handicapped, the cancerous, the so-called ‘useless,’ are secure if the proponents of euthanasia have their way.”

Finally, with that in mind, back in 1971, two years before Roe v. Wade, in the state of New York, the legislature, after much pressure, decided to decriminalize abortion and make it a good deal easier. At the time, a significant editorial was delivered on the local CBS station by Sherri Henry, who has since become a big-time talk show host. And she wrote then, “[A]bortion is no longer illegal in New York. It is nothing to be ashamed of, nothing to fear. It is one sensible method of dealing with such problems as overpopulation, illegitimacy, and possible birth defects. It is one way of fighting the rising welfare rolls and the increasing number of child abuse cases.

Very simple. When there are no children, they can’t be abused. When there are no severely handicapped children or adults, we will all save money. When everyone in failing health has to die by a certain age, how much more aesthetic our society will be.

Most people will begin to understand the lethal logic of the abortionists, the advocates of euthanasia, and the AMA, if this logic is presented lucidly, persistently and on the basis of the indivisibility of all life. All life.

__________________

In the past I have spent most of my time looking at this issue from the spiritual side. In the film series “WHATEVER HAPPENED TO THE HUMAN RACE?” the arguments are presented  against abortion (Episode 1),  infanticide (Episode 2),   euthanasia (Episode 3), and then there is a discussion of the Christian versus Humanist worldview concerning the issue of “the basis for human dignity” in Episode 4 and then in the last episode a close look at the truth claims of the Bible.

Francis Schaeffer

__________________________

I truly believe that many of the problems we have today in the USA are due to the advancement of humanism in the last few decades in our society. Ronald Reagan appointed the evangelical Dr. C. Everett Koop to the position of Surgeon General in his administration. He partnered with Dr. Francis Schaeffer in making the video below. It is very valuable information for Christians to have.  Actually I have included a video below that includes comments from him on this subject.

Francis Schaeffer: How Should We Then Live? (Full-Length Documentary)

Francis Schaeffer Whatever Happened to the Human Race (Episode 1) ABORTION

 

______________________________________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband. Now after presenting the secular approach of Nat Hentoff I wanted to make some comments concerning our shared Christian faith.  I  respect you for putting your faith in Christ for your eternal life. I am pleading to you on the basis of the Bible to please review your religious views concerning abortion. It was the Bible that caused the abolition movement of the 1800’s and it also was the basis for Martin Luther King’s movement for civil rights and it also is the basis for recognizing the unborn children.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

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Francis Schaeffer’s “How should we then live?” Video and outline of episode 7 “The Age of Non-Reason” (Schaeffer Sundays)

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By Everette Hatcher III | Posted in Francis Schaeffer | Edit | Comments (0)

“Friedman Friday” Milton Friedman warned the computer industry!!!

Milton Friedman was a man of common sense and great foresight. What he said in 1999 has come to pass and the Cato Institute article on 1-28-13 pointed that out.  

  • Updated January 28, 2013, 1:05 a.m. ET

Silicon Valley’s ‘Suicide Impulse’

The industry’s affection for Washington keeps growing. Facebook had 38 lobbyists working in 2012.

It’s a measure of how far Silicon Valley has strayed from its entrepreneurial roots that a top regulator is calling on technology companies to do less lobbying and more competing.In a letter to the editor responding to a report in this column on how Google GOOG -0.39%spent $25 million lobbying to stop an antitrust case against it, Federal Trade Commission Chairman Jon Leibowitz wrote that companies should not draw the lesson that lobbying pays. Instead, he urged: “Stop! Invest your money in expansion and innovation.” Mr. Leibowitz asserted in his letter, published Jan. 18, that “Google’s lobbying expenses had no effect on the care, diligence or analysis of the agency’s incredibly hard-working staff or the decisions reached by any of the FTC’s five commissioners.”Whatever the effect of Google’s big-ticket lobbying, regulators deserve much of the blame for companies calculating that lobbying is a good investment. Still, Mr. Leibowitz has a point: Tech executives should think twice before again lobbying government to get involved in their industry.

The precedent for the potential antitrust case against Google was the massive prosecution in the 1990s of Microsoft, MSFT +0.14%the giant of the desktop era. Competitors such as Netscape, Oracle ORCL +0.45%and Sun Microsystems lobbied hard to get regulators to bring the case that did end up paralyzing Microsoft.

Getty ImagesMilton Friedman, a model of prescience regarding tech-industry lobbying.

In 1999, economist Milton Friedman issued a warning to technology executives at a Cato Institute conference: “Is it really in the self-interest of Silicon Valley to set the government on Microsoft? Your industry, the computer industry, moves so much more rapidly than the legal process that by the time this suit is over, who knows what the shape of the industry will be? Never mind the fact that the human energy and the money that will be spent in hiring my fellow economists, as well as in other ways, would be much more productively employed in improving your products. It’s a waste!”

He predicted: “You will rue the day when you called in the government. From now on, the computer industry, which has been very fortunate in that it has been relatively free of government intrusion, will experience a continuous increase in government regulation. Antitrust very quickly becomes regulation. Here again is a case that seems to me to illustrate the suicide impulse of the business community.”

Friedman was right. The Internet undermined Microsoft’s market power years before the litigation ended. Alas, his warning fell on deaf ears—and ironically, it was Microsoft that led the recent lobbying to investigate Google’s dominance of the search industry. Microsoft funded lobbyists under names such as FairSearch.org.

The FTC hired outside lawyers to prepare a case, but after a lengthy investigation concluded what was obvious from the start: There was no case against Google’s practice of delivering answers as well as just links in its search results. It may harm Google’s competitors, but it benefits consumers, whom the antitrust laws are supposed to protect.

Silicon Valley has long prided itself on avoiding the lumbering relationship between big government and most industries, but somehow it has become one of the top lobbyists in Washington. The Center for Responsive Politics reported last year: “Tech firms have doled out more and more lobbying money even as the amount spent on lobbying by all industries has decreased since 2010.”

Google has a former congresswoman, Susan Molinari, running its Washington office. Facebook FB +2.92%employed 38 lobbyists last year, up from 23 in 2011. Over the past few years, Microsoft, Apple, Google and Intel have all hired former top FTC staffers, spinning the revolving door that fuels the growth of lobbying.

The growth in tech lobbying reflects the eagerness of the Obama administration and its regulators to get involved in the industry. FTC and Justice Department investigations into antitrust cases are just part of the problem. The FTC has also involved itself in the core business operations of the Internet.

During the past few years, the FTC has extracted consent decrees from Google, Facebook and Twitter on how they generate advertising revenues by using information about their visitors. These decrees include vague standards such as that the companies must have “privacy controls and procedures appropriate to respondent’s size and complexity, the nature and scope of respondent’s activities, and the sensitivity of the covered information.”

Under this broad privacy umbrella, the FTC thus oversees the key revenue stream for several of the largest companies on the Internet. These consent decrees apply for 20 years, an absurd length of time in the fast-changing technology industry. Internet companies staffed up their Washington offices in part to fend off regulations that would undermine the ad-supported services they provide to consumers.

Rather than lobby government to go after one another, Silicon Valley lobbyists should unite to go after overreaching government. Instead of the “suicide impulse” of lobbying for more regulation, Silicon Valley should seek deregulation and a long-overdue freedom to return to its entrepreneurial roots.

A version of this article appeared January 28, 2013, on page A13 in the U.S. edition of The Wall Street Journal, with the headline: Silicon Valley’s ‘Suicide Impulse’.

National Flood Insurance Program (NFIP) has encouraged people to build in flood-prone areas!

 

National Flood Insurance Program (NFIP) has encouraged people to build in flood-prone areas! This is a program that needs to be eliminated.

February 26, 2014 11:29AM

Folly of Federal Flood Insurance

            By   Chris Edwards

Subsidized flood insurance is one of the many federal programs that is counter to both sound economic policy and sound environmental policy. Congress created the National Flood Insurance Program (NFIP) in 1968 to help homeowners in flood-prone areas purchase insurance. The FEMA-run program covers floods from river surges and storms on the seacoasts.

In recent years, the NFIP has gone hugely into debt and it may be bailed-out by taxpayers at some point. The program has encouraged people to build homes in areas that are too hazardous to safely occupy. It has encouraged towns to expand development in flood-prone areas. And the program undermines constitutional federalism by prompting the federal government to reach its regulatory tentacles into local zoning issues.

The NFIP subsidizes wealthy people with multiple payouts after their homes on the seacoasts are repeatedly destroyed. The program is very bad policy—a seemingly good idea to policymakers in the 1960s that has ended up creating growing distortions.

When I started reading about the NFIP recently, I was surprised to learn that Congress made sensible reforms to it in 2012 under the Biggert-Waters Act. The best reform would be a complete repeal of the NFIP, but in the meantime the 2012 law was a good start at reducing the program’s costs and distortions.

Alas, the prospect of Congress staying on a pro-market, pro-environment reform path was apparently too good to be true. No sooner had the ink dried on the 2012 law than members of Congress began trying to reverse the reforms.

This week, Congress will be voting on a bill that backtracks on the 2012 reforms. I have not studied the details of the new bill, but Diane Katz at the Heritage Foundation has penned a nice overview.

 

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Open letter to President Obama (Part 526) If the increase in food stamps was just because of the recession then why did the spending go from $19.8 billion in 2000 to $37.9 billion in 2007?

Open letter to President Obama (Part 526)

(Emailed to White House on 6-6-13.)

President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500

Dear Mr. President,

I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what is going on out here.

I have been writing on my blog for over two years now concerning the disturbing trend of more and more people becoming dependent on the federal government for more of their income than ever before. This encourages laziness in my view and in the case of the food stamp system many people find themselves in what Milton Friedman calls the “Welfare Trap.”  (Much of this trend started under President Bush and had Republican support.) I wanted to point out that we should cut back on government spending and let the private economy do it’s magic.

If the increase in food stamps was just because of the recession then why did the spending go from $19.8 billion in 2000 to $37.9 billion in 2007?

 and 

May 27, 2013 at 12:00 pm

(7)

Newscom

Newscom

A recent US News & World Report article set out to unveil the “facts” about food stamps.

What are the so-called “facts”?

For one, the article claims that the food stamps program is not “bloated,” but rather, the surge in participation and spending is a result of the program “doing what it’s supposed to do.”

But what is it “supposed to do”?

Food stamps (or the Supplemental Nutrition Assistance Program (SNAP), as it is now called) were designed to ensure that Americans without the ability to provide for themselves are able to receive basic nutrition. However, application loopholes and policy changes over the past decade or so have allowed recipients to bypass income and asset tests, meaning many people are receiving food stamps who would not have been eligible under the program’s original purposes.

One of the changes in eligibility requirements is “broad-based categorical eligibility.” This type of eligibility means that an individual who receives any service under another welfare program, such as Temporary Assistance for Needy Families (TANF)—even something as small as a TANF brochure—can be deemed eligible for food stamps. A full 50 percent of all food stamp recipients now enroll in the program through this broad-based categorical eligibility procedure. As Heritage welfare experts Robert Rector and Kiki Bradley write:

In states using this loophole, a middle-class family with one earner who becomes unemployed for one or two months can receive $668 per month in food stamps even if the family has $20,000 in cash sitting in the bank. Because of this, food stamps has been transformed from a program for the truly needy to a routine bonus payment stacked on top of conventional unemployment benefits.

In addition, the U.S. Department of Agriculture (USDA) has operated substantial outreach programs to pull more people onto the food stamp rolls. Some states have gone so far as to hire food stamp recruiters, tasked with filling a monthly quota of new food stamp enrollees.

Another “fact,” according to the author, is that much of the growth in food stamp costs is due to the recession and is temporary.

That’s partially true. Food stamp spending has roughly doubled in the past four years, and part of this is clearly due to the recession. However, food stamp spending has been on an upward climb since the program began back in the 1960s. In the decade prior to the recession, total government food stamp spending nearly doubled, from $19.8 billion in 2000 to $37.9 trillion in 2007.

Bfoodstampreform2012chart1

Moreover, according to Obama’s budget plans, food stamp spending will not return to pre-recession levels when the economy improves. “For most of the next decade, food stamp spending, adjusted for inflation and population growth, would remain at nearly twice the levels seen during the non-recessionary periods under President Bill Clinton,” note Rector and Bradley.

What’s more, food stamps are just one of roughly 80 federally funded means-tested welfare programs. The total cost of government welfare spending has been on a nearly continual climb over the past five decades and has increased 16-fold, to nearly $1 trillion annually, since the 1960s. Welfare is the fastest growing part of government spending, and under Obama’s fiscal year 2013 budget, total welfare spending will permanently increase from 4.5 percent of gross domestic product (GDP) to 6 percent of GDP.

US News & World Report also suggests as a “fact” that most food stamp recipients work.

However, a significant portion of able-bodied recipients of food stamps perform little to no work. Of the roughly 10.5 million households receiving food stamps containing an able-bodied, non-elderly adult (there are approximately 20 million households receiving food stamps total), more than half—5.5 million—performed no work during a given month in 2010. Another 1.5 million to 2 million performed fewer than 30 hours of work per week. This isn’t unique to the recession, but is typical even during good economic times.

The food stamp program is just one of dozens that comprise the complex system of federal means-tested welfare programs. Instead of continuing to pour more dollars into these programs, which have failed to promote self-sufficiency, policymakers should roll back aggregate spending on means-tested welfare to pre-recession levels when employment recovers. Likewise, programs like food stamps should be reformed to promote self-reliance through work, empowering individuals and families to become free from government dependence.

 

_______________________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

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Milton Friedman’s negative income tax explained by Friedman in 1968: We need to cut back on the Food Stamp program and not try to increase it. What really upsets me is that when the government gets involved in welfare there is a welfare trap created for those who become dependent on the program. Once they […]

400% increase in food stamps since 2000

Welfare Can And Must Be Reformed Uploaded by HeritageFoundation on Jun 29, 2010 If America does not get welfare reform under control, it will bankrupt America. But the Heritage Foundation’s Robert Rector has a five-step plan to reform welfare while protecting our most vulnerable. __________________________ If welfare increases as much as it has in the […]

Food stamp spending has doubled under the Obama Administration

The sad fact is that Food stamp spending has doubled under the Obama Administration. A Bumper Crop of Food Stamps Amy Payne May 21, 2013 at 7:01 am Tweet this Where do food stamps come from? They come from taxpayers—certainly not from family farms. Yet the “farm” bill, a recurring subsidy-fest in Congress, is actually […]

Which states are the leaders in food stamp consumption?

I am glad that my state of Arkansas is not the leader in food stamps!!! Mirror, Mirror, on the Wall, Which State Has the Highest Food Stamp Usage of All? March 19, 2013 by Dan Mitchell The food stamp program seems to be a breeding ground of waste, fraud, and abuse. Some of the horror stories […]

Why not cancel the foodstamp program and let the churches step in?

Government Must Cut Spending Uploaded by HeritageFoundation on Dec 2, 2010 The government can cut roughly $343 billion from the federal budget and they can do so immediately. __________ We are becoming a country filled with people that dependent on the federal government when we should be growing our economy by lowering taxes and putting […]

Food Stamp Program is constantly ripped off and should be discontinued

Uploaded by oversightandreform on Mar 6, 2012 Learn More athttp://oversight.house.gov The Oversight Committee is examining reports of food stamp merchants previously disqualified who continue to defraud the program. According to a Scripps Howard News Service report, food stamp fraud costs taxpayers hundreds of millions every year. Watch the Oversight hearing live tomorrow at 930 […]

Open letter to President Obama (Part 326)

(This letter was emailed to White House on 11-21-11.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse […]

Welfare state may drag England down the tubes!!!!

Welfare state may drag England down the tubes!!!! Very Funny but Very Un-PC British Video on Welfare and Immigration May 19, 2013 by Dan Mitchell I’ve shared this bit of political incorrect terrorism humor from England, as well asthis somewhat un-PC bit of tax humor. But perhaps motivated by the scandal of giving welfare to terrorists, this new video is […]

Will Republicans defeat Obamacare in Arkansas?

 

________

Will Republicans defeat Obamacare in Arkansas?

February 21, 2014 4:24PM

Spending Restraint in Arkansas

For the fourth day in a row, the Arkansas House of Representatives has refused to approve the yearly appropriation for its Medicaid program, dubbed the “private-option.” If the legislature continues this refusal and reverses its decision to expand Medicaid under Obamacare, state and federal taxpayers will save billions of dollars, making the Little Rock legislative battle the most important spending fight in the country.

Last spring, Arkansas made headlines for adopting a “free-market” alternative to Medicaid expansion. Instead of expanding using the traditional Medicaid model in which the federal and state government would directly fund enrollees’ care, Arkansas decided to provide subsidies to 250,000 new enrollees, so that they could purchase private health insurance through the bureaucratic exchanges created under Obamacare. By using private insurance, supporters claimed, Arkansas would be able to provide individuals with insurance coverage and protect them from the broken Medicaid system that fails to provide “significant improvements” to enrollees’ health.

Medicaid expansion will cost the federal government $800 billion over the next 10 years if all states expand their qualification thresholds for the program as Obamacare’s architects want. (Currently, only half of the states have obliged.)

Arkansas’ expansion is actually even more expensive than the traditional expansion model envisioned by President Obama and Health and Human Services Secretary Kathleen Sebelius. According to the Congressional Budget Office, private insurance actually costs 50 percent more than traditional Medicaid coverage. Earlier this month, Arkansas Gov. Mike Beebe, a supporter of the private option plan, acknowledged that the plan costs the federal government—read taxpayers—more. Under the conservative estimates from the state, Arkansas’ expansion will cost $20 billion over the next 10 years.

Arkansas’ actions could affect other states. Following its expansion last year, Iowa, Michigan, and Pennsylvania expanded their Medicaid programs using a private-option model costing federal taxpayers billions more. Defunding Medicaid expansion in Arkansas would likely stop the wave of expansion, saving even more public dollars.

If opponents of the private option are successful, Arkansas will do far more to help federal taxpayers this month than anything coming from Washington.

 

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  (Emailed to White House on 3-20-13.) President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them every day. I really do respect you for trying to get a pulse on what […]

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Great article by Michael Cannon on Arkansas Medicaid expansion plan

CATO Institute Michael Cannon on the OReilly Factor Published on Mar 19, 2013 The CATO Institute’s Michael Cannon spoke at the Arkansas Conservative Caucus on Tuesday March 19th. Several conservatives were present. Cannon talked about how to defeat Obamacare in Arkansas & how the states can stop Obamacare on a national level. __________________ CATO Institute […]

Michael Cannon of Cato Institute speaks to Arkansas Senators (Part 3 includes editorial cartoon)

Jacque Martin asks CATO Institute Michael Cannon about Obamacare Published on Mar 19, 2013 The CATO Institute’s Michael Cannon spoke at the Arkansas Conservative Caucus on Tuesday March 19th. Several conservatives were present. Cannon talked about how to defeat Obamacare in Arkansas & how the states can stop Obamacare on a national level. Jacque Martin […]

After visit to Arkansas Cato’s Michael Cannon puts out new article

  After a visit to Arkansas on March 19, 2013 the Cato Institute’s Michael Cannon published another article claiming that “To date, 34 states, accounting for roughly two-thirds of the U.S. population, have refused to create Exchanges. Under the statute, this shields employers in those states from a $2,000 per worker tax that will apply […]

Michael Cannon of Cato Institute speaks to Arkansas Senators (Part 2 includes editorial cartoon)

Representative Doug House asks CATO Institute Michael Cannon about Obamacare Published on Mar 19, 2013 The CATO Institute’s Michael Cannon spoke at the Arkansas Conservative Caucus on Tuesday March 19th. Several conservatives were present. Cannon talked about how to defeat Obamacare in Arkansas & how the states can stop Obamacare on a national level. Representative […]

Michael Cannon on Obamacare (editorial cartoons on Judge Roberts and Obamacare)

Representative Bollinger asks CATO Institute Michael Cannon about Obamacare Published on Mar 19, 2013 The CATO Institute’s Michael Cannon spoke at the Arkansas Conservative Caucus on Tuesday March 19th. Several conservatives were present. Cannon talked about how to defeat Obamacare in Arkansas & how the states can stop Obamacare on a national level. Representative Bollinger […]

Michael Cannon of Cato Institute speaks to Arkansas Senators (Part 1, includes editorial cartoon)

An ObamaCare Debate Challenge (Michael F. Cannon) CATO Institute Michael Cannon at the Arkansas Conservative Caucus Published on Mar 19, 2013 The CATO Institute’s Michael Cannon spoke at the Arkansas Conservative Caucus on Tuesday March 19th. Several conservatives were present. Cannon talked about how to defeat Obamacare in Arkansas & how the states can stop […]

An ObamaCare Debate Challenge by Michael F. Cannon (editorial cartoon)

Obamacare is a poorly written and because of that the majority of states may never have to put into practice.   February 28, 2013 2:13PM ObamaCare Debate Challenge: Lawrence Wasden Edition By Michael F. Cannon Share Tweet Like Google+1 Congress empowered states to block major provisions of ObamaCare, including its subsidies and employer mandate. All […]

Milton Friedman in 1999 interview, “The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A, the way I can take a $20 bill hand it over to you and then there’s no record of where it came from”

_______

Milton Friedman in 1999 interview, “The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A, the way I can take a $20 bill hand it over to you and then there’s no record of where it came from”

February 20, 2014 2:35PM

Friedman and Hanke on Bitcoin

In 2008, Bitcoin was mysteriously introduced to the world in an obscure, technical paper written under the pseudonym Satoshi Nakamoto. By late 2013, the financial press was filled with reportage on Bitcoin and its dramatic price increase.

Well ahead of Satoshi Nakamoto, Nobelist Milton Friedman, champion of free market economics and noted expert on money and banking, anticipated the coming of digital currencies, and foresaw the potential impacts that they would have on finance and economics.

In a 1999 interview, Prof. Friedman concluded:

I think that the Internet is going to be one of the major forces for reducing the role of government. The one thing that’s missing, but that will soon be developed, is a reliable e-cash, a method whereby on the Internet you can transfer funds from A to B without A knowing B or B knowing A. The way I can take a $20 bill hand it over to you and then there’s no record of where it came from.

You may get that without knowing who I am. That kind of thing will develop on the Internet and that will make it even easier for people using the Internet. Of course, it has its negative side. It means the gangsters, the people who are engaged in illegal transactions, will also have an easier way to carry on their business.

Prof. Friedman’s anticipation of Bitcoin is truly remarkable. He even understood the concept well enough to anticipate something like the Silk Road scandal involving illegal Bitcoin transactions.

In April 2013, Nathaniel Popper of The New York Times reported on Bitcoin in an article titled “Digital Money is Gaining Champions in the Real World”. In his reportage, Popper asked me if I thought Bitcoin had the makings of a speculative mania like the 17th century Dutch tulip bulb frenzy. My response was clear and unambiguous: “To say highly speculative would be the understatement of the century.”

Subsequently, the price action in Bitcoin confirms my diagnosis (see the following chart). In January 2013, one could buy a Bitcoin for about $13. By late November, one Bitcoin would have set a buyer back over $1100. And what about Bitcoin’s price volatility? As shown in the chart, Bitcoin’s volatility is truly fantastic.

While the price currently fluctuates around $600, Bitcoin remains far from secure. Serious discrepancies in price exist even between exchanges. For example, the price of a Bitcoin on the Mt. Gox exchange has fallen by over 50% in the past week, while the price of the exact same Bitcoin on the BitStamp exchange has fallen by only 3% in the same time period.

 

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“How to Cure Inflation” in Milton Friedman’s FREE TO CHOOSE Part 6 of 7 “Here we go into a period of still higher unemployment later on and have it to do all over again. That’s the only choice we face. And when the public at large recognizes that, they will then elect people to Congress, and a President to office who is committed to less government spending and to less government printing of money and until that happens we will not cure inflation”

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“How to Cure Inflation” in Milton Friedman’s FREE TO CHOOSE Part 5 of 7 There is no Congressman, no Senator, who will come out and say, “I am in favor of inflation.” There is not a single one who will say, “I am in favor of big deficits.” They’ll all say we want to balance the budget, we want to hold down spending, we want an economical government. How do you explain the difference between performance and talk on the side of Congress?

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At some point we will have too many people dependent on the government to turn back our fate!!!

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At some point we will have too many people dependent on the government to turn back our fate!!!

When I give speeches around the country, I often get asked whether it’s time to give up.

More specifically, has America reached a tipping point, with too many people riding in the wagon of government dependency and too few people creating wealth and pulling the wagon in the right direction?

These questions don’t surprise me, particularly since my speeches frequently include very grim BIS, OECD, and IMF data showing that the long-run fiscal problem in the United States is larger than it is in some nations that already are facing fiscal crisis.

But that doesn’t mean I have a good answer. I think there is a tipping point, to be sure, but I’m not sure whether there’s a single variable that tells us when we’ve reached the point of no return.

Is it when government spending consumes 50 percent of economic output? That would be a very bad development if the burden of government spending reached that level, but it’s not necessarily fatal. Back in the early 1990s, the public sector was that big in Canada, yet policy makers in that country were able to restrain budgetary growth and put the country on a positive path. Sweden is another nation that has turned the corner. Government spending peaked at 67 percent of GDP in the early 1990s, but is now down to 47 percent of GDP after years of free-market reforms.

Is it when a majority of households are getting government handouts? That’s also a worrisome development, especially if those folks see the state as a means of living off their fellow citizens. But taking a check from Uncle Sam doesn’t automatically mean a statist mindset. As one of my favorite people opined, “some government beneficiaries – such as Social Security recipients – spent their lives in the private sector and are taking benefits simply because they had no choice but to participate in the system.”

Is it when a majority of people no longer pay income taxes, leaving a shrinking minority to bear all the burden of financing government? It’s not healthy for society when most people think government is “free,” particularly if they perceive an incentive to impose even higher burdens on those who do pay. And there’s no question that the overwhelming majority of the tax burden is borne by the top 10 percent. There’s little evidence, though, that the rest of the population thinks there’s no cost to government – perhaps because many of them pay heavy payroll taxes.

I explore these issues in this interview with Charles Payne.

Dan Mitchell Discussing the Tipping Point when America Becomes a Failed Welfare State

The main takeaway from the interview is that the tipping point is not a number, but a state of mind. It’s the health of the nation’s “social capital.”

So for what it’s worth, the country will be in deep trouble if and when the spirit of self-reliance becomes a minority viewpoint. And the bad news is that we’re heading in that direction.

The good news is that we’re not close to the point of no return. There is some polling data, for instance, showing that Americans still have a much stronger belief in liberty than their European counterparts.

And we’ve even made a small bit of progress against big government in the past few years.

I speculated in the interview that we probably have a couple of decades to save the country, but it will become increasingly difficult to make the necessary changes – such as entitlement reform and welfare decentralization – as we get closer to 2020 and 2030.

Welfare State Wagon CartoonsAnd if those changes don’t occur…?

That’s a very grim subject. I fully understand why some Americans are thinking about the steps they should take to protect their families if reforms don’t occur and a crisis occurs.

Indeed, this to me is one of the most compelling arguments against gun control. If America begins to suffer the chaos and disarray that we’ve seen in nations such as Greece, it’s better to well-armed.

Though maybe there will be some nations that remain stable as the world’s welfare states collapse. And if emigration is your preferred option, I’d bet on Australia.

But wouldn’t it be better to fix what’s wrong and stay in America?

 

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Rand Paul rightly notes, “The Fourth Amendment requires an individualized warrant based on probable cause before the government can search phone records and e-mails”

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Big government means overpaid bureaucrats who loaf and it encourages dishonesty!!!!

Many people that wok in the government are decent people, but also there is another side to this story too. Big government means overpaid bureaucrats who loaf and it encourages dishonesty!!!! Are Government Bureaucrats Corrupt and Dishonest? January 25, 2014 by Dan Mitchell I don’t like government bureaucrats. Actually, let me re-phrase that statement. I know lots of […]

 

Liberals hate tax deductions even if they are legitimate!!!

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One of my favorite groups growing up was ABBA. Here are some of my favorite songs:

Liberals hate tax deductions even if they are legitimate!!!

The tax code is a complicated nightmare, particularly for businesses.

Some people may think this is because of multiple tax rates, which definitely is an issue for all the non-corporate businesses that file “Schedule C” forms using the personal income tax.

A discriminatory rate structure adds to complexity, to be sure, but the main reason for a convoluted business tax system (for large and small companies) is that politicians don’t allow firms to use the simple and logical (and theoretically sound) approach of cash-flow taxation.

Here’s how a sensible business tax would work.

Total Revenue – Total Cost = Profit

And it would be wonderful if our tax system was this simple, and that’s basically how the business portion of the flat tax operates, but that’s not how the current tax code works.

We have about 76,000 pages of tax rules in large part because politicians and bureaucrats have decided that the “cash flow” approach doesn’t give them enough money.

So they’ve created all sorts of rules that in many cases prevent businesses from properly subtracting (or deducting) their costs when calculating their profits.

One of the worst examples is depreciation, which deals with the tax treatment of business investment expenses. You might think lawmakers would like investment since that boosts productivity, wage, and competitiveness, but you would be wrong. The tax code rarely allows companies to fully deduct investment expenses (factories, machines, etc) in the year they occur. Instead, they have to deduct (or depreciate) those costs over many years. In some cases, even decades.

But rather than write about the boring topic of depreciation to make my point about legitimate tax deductions, I’m going to venture into the world of popular culture.

Though since I’m a middle-aged curmudgeon, my example of popular culture is a band that was big about 30 years ago.

The UK-based Guardian is reporting on the supposed scandal of ABBA’s tax deductions. Here are the relevant passages.

The glittering hotpants, sequined jumpsuits and platform heels that Abba wore at the peak of their fame were designed not just for the four band members to stand out – but also for tax efficiency, according to claims over the weekend. Abba…And the reason for their bold fashion choices lay not just in the pop glamour of the late 70s and early 80s, but also in the Swedish tax code. According to Abba: The Official Photo Book, published to mark 40 years since they won Eurovision with Waterloo, the band’s style was influenced in part by laws that allowed the cost of outfits to be deducted against tax – so long as the costumes were so outrageous they could not possibly be worn on the street.

When I read the story, I kept waiting to get to the scandalous part.

But then I realized that the scandal – according to our statist friends – is that ABBA could have paid even more in tax if they wore regular street clothes for their performances.

In other words, this is not a scandal at all. It’s simply the latest iteration of the left-wing campaign (bolstered by tax-free bureaucrats at the Paris-based OECD) to de-legitimize normal and proper tax deductions.

So I guess this means that the New York Yankees should play in t-shirts and gym shorts since getting rid of the pinstripes would increase the team’s taxable income.

And companies should set their thermostats at 60 degrees in the winter since that also would lead to more taxable income.

Or, returning to the example of ABBA, perhaps they should have used these outfits since there wouldn’t be much cost to deduct and that would have boosted taxable income.

Shifting to the individual income tax, another potential revenue raiser is for households to follow this example from Monty Python and sell their kids for medical experiments. That would eliminate personal exemptions and lead to more taxable income.

Heck, maybe our friends on the left should pass a law mandating weekend jobs so we could have more income for them to tax.

Though I’m not sure how that would work since the statists are now saying Obamacare is a good thing because it “liberates” millions of people from having to work.

I’m not sure how they square that circle, but I’m sure the answer is more class-warfare tax policy.

P.S. If you want to a simple rule to determine what’s a legitimate tax deduction, just remember that economic activity should be taxed equally (and at the lowest possible rate). That’s why businesses should have a cash-flow tax, and it’s why households should have a neutral system like a flat tax or national sales tax.

P.P.S. Though it would be nice if we had the very limited government envisioned by the Founding Fathers. In that case, we wouldn’t need any broad-based tax whatsoever.

P.P.P.S. A very low tax rate is the best way of encouraging taxpayers to declare income and minimize deductions. Sweden Individual Income tax ratesWhen ABBA first became famous, the top personal tax rate in Sweden was at the confiscatory level of about 80 percent and the corporate tax rate was about 55 percent. With rates so high, that meant taxpayers had big incentives to reduce taxable income and little reason to control costs.

After all, a krona of deductible expense only reduced income by about 20 öre for individual taxpayers.

Corporate taxpayers weren’t treated as badly, but a rate of 55 percent still meant that a krona of deductible expense only reduced after-tax income by 45 öre.

But if the rate was very modest, say 20 percent, then taxpayers might be far more frugal about costs (whether the cost of uniforms or anything else) because a krona of deductible expense would reduce income by 80 öre.

By the way, the United States conducted an experiment of this type in the 1980s and the rich wound up declaring far more income to the IRS.

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It is sad that we are heading to where Sweden used to be and they are heading to where we used to be. Here is a great article from the Heritage Foundation:

Anthony B. Kim

April 16, 2012 at 5:30 pm

Sweden is known for, among other things, Swedish meatballs, the pop group ABBA, and IKEA.

Well, here is another thing that Sweden should be recognized for: tax cuts. Yes, you heard right: tax cuts.

Sweden used to tax corporations at a 60 percent rate. Now that has come down to 26.3 percent. As noted in a recent article by the U.K.-based Spectator magazine, Sweden’s finance minister, Anders Borg, who was named the most effective finance minister in Europe by the Financial Times, got something awfully right.

Since becoming Sweden’s finance minister, [Borg’s] mission has been to pare back government. His “stimulus” was a permanent tax cut. To critics, this was fiscal lunacy—the so-called “punk tax cutting” agenda. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result.… Three years on, it’s pretty clear who was right. “Look at Spain, Portugal or the UK, whose governments were arguing for large temporary stimulus,” he says. “Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.” Tax-cutting Sweden, by contrast, had the fastest growth in Europe last year, when it also celebrated the abolition of its deficit.… He continued to cut taxes and cut welfare-spending to pay for it; he even cut property taxes for the rich to lure entrepreneurs back to Sweden. The last bit was the most unpopular, but for Borg, economic recovery starts with entrepreneurs.

The tax cuts, combined with Sweden’s highly efficient regulatory system, have raised the Swedish economy to 21st place in the 2012 Index of Economic Freedom. By sharp contrast, the regulation-loving “Yes, We Can” U.S. Administration has driven down our economic freedom ranking over the past three years and is steering our economy into “Taxmageddon.

Maybe it is time for President Obama to sit down with Sweden’s finance minister for a lesson on how to achieve economic recovery.

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