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general freedom incumbents local leaders moral hazard national politics & policies responsibility too much government

Democracy — or Too Much Government?

The Democratic Party’s Unity Reform Commission met last week to concoct measures to pull the party from the brink of madness and oblivion.

The commission’s main recommendation? Limit the role of “superdelegates” in the nomination process.

Great — a first step I’ve long advocated. But the whole system needs more serious reform.

Jay Cost covered some of the problems associated with the parties’ candidate selection processes, yesterday, in the online pages of the National Review. Unfortunately, he went off the rails about an alleged “trend toward an unadulterated democratic nomination process,” which he regarded as a “major mistake.”

He misdiagnosed both the problem and the Democrats’ proposed cure. Neither is “too much democracy.”

America’s partisan voters keep selecting bad candidates because the major party duopoly is a rigged game — designed and regulated by incumbents for incumbents to solidify a protected class of insiders.

Which voters understandably seek to overthrow on a regular basis.

The problem is the whole primary process, which is faux-democratic, a clever ruse to prevent real challengers from emerging, forcing effective politicians through the two-party mill.

To make things more democratic — to add effective citizen checks on power and privilege — the parties need to be completely divorced from official elections. That is, junk the whole primary system, making the parties bear fully the costs of their own selection processes. Further, the general elections should be thrown open to a wider variety of parties and candidates, with the voting system itself reformed to avoid the sub-optimal results of our first-past-the-post system.

The problem with our politics isn’t “too much democracy” so much as “too much partisan government.”

This is Common Sense. I’m Paul Jacob.


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crime and punishment First Amendment rights general freedom moral hazard property rights too much government

A Cakewalk Case?

The Justices seem split — on the “gay cake” case.

A Christian baker had no trouble selling a gay couple a pre-made cake, out of his showcase, but balked at selling a custom wedding cake of any kind. According to NPR’s Nina Totenberg, the couple understood that requesting a “gay” themed cake would go too far. But the baker’s refusal to decorate any wedding cake seemed unacceptable.

In Colorado, where the cake didn’t get made, there is a public accommodations law that says businesses must serve all customers regardless of race, religion, or sexual orientation. So Colorado went after the baker, the baker hired a lawyer, and Masterpiece Cakeshop v. Colorado Civil Rights Commission was heard by the Supreme Court this week.

Commonly billed as a conflict between First Amendment-guaranteed religious freedom* and the civil rights of citizens as defined and protected by a state law, it almost defies easy solution.

One could argue that the First Amendment right to freely associate (including the right not to associate) should extend to business. But that goes against legislation built up since the 1964 Civil Rights Act, which in many places ended an often violent racial segregation** no one wants back. However, a custom-made wedding cake is also expressive and therefore speech.

One could decide for Colorado on federalist grounds. And the late Justice Antonin Scalia, Ms. Totenberg tells us, argued that a general law not directed at a religion does not allow a specifically religious defense.

But one defense of the baker may work. The Colorado Civil Rights Commission has not applied its rulings equally. It sided with non-Christian bakers who refused to make cakes for Christians requesting Bible-verse cakes.

And that “takes the cake.”

This is Common Sense. I’m Paul Jacob

 

* In this regard, Justice Kennedy stated from the bench that it seemed to him “that the state in its position here has been neither tolerant nor respectful of Mr. Phillips’ religious beliefs.” Kennedy will likely be the swing vote.

** No small amount of this violence, segregation and discrimination was coerced by state laws in defiance of the Fourteenth Amendment and the Bill of Rights.


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folly free trade & free markets general freedom moral hazard nannyism national politics & policies property rights responsibility too much government

What’s the Big Deal?

Big news: in a $69 billion deal, CVS Health Corp. plans to buy Aetna Inc. The AP story by James F. Peltz says the move “would shake up healthcare industry.”

Should we worry?

Because corporations aren’t cancerous, growth and consolidation are not to be feared as such.

But speaking of cancerous growths . . . the federal government will not likely take the news of the merger with the tranquility of a Taoist sage.

Over at Forbes, last month, Bruce Japsen predicted that the deal wouldn’t go through, arguing that “a full-blown merger of the healthcare giants would be complicated and unlikely given recent antitrust scrutiny in the sector and given that the drugstore chain is already going into business with an Aetna rival, Anthem.”

Government antitrust to the rescue?

No. We may have been schooled to believe that antitrust “protects competition,” but it has always limited competition, instead. Antitrust was always about fear — of bigness. It was definitely not designed to help consumers. The classic case is the infamous break-up of Standard Oil, which produced more fuel while lowering prices — even as it grew humongous.* Standard Oil grew because it satisfied consumer demand. Which is what businesses are for.

And yet government broke it to pieces, using antitrust rationales, for the benefit of some producers, some businesses.

Think of it as crony capitalism in action.

So, my remaining question runs like this: is the CVS/Aetna merger a response to pure market demand, or as a way to wiggle around insane state and federal regulations?

Health care in America is sick. The merger is not likely the cure. But it would not kill the patient.

We have government for that.

This is Common Sense. I’m Paul Jacob.

 

* For background, consult the studies of economist Dominick T. Armentano.


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folly government transparency media and media people national politics & policies too much government U.S. Constitution

Peel Back the Onion

Yesterday, an Onion title caught my attention: “Hooded Members of Congress Drown Another Love Child in the Potomac to Prevent Affair from Getting Out.” This is not funny because it is true, but because it is so close to the truth. Too close for comfort.

A similar story, the day before, sported a title so sublime that you do not really need to read further: “Al Franken Tearfully Announces Intention To Step Down From Role As Harasser Of Women.” The week before that, another satire gave us this extravaganza: “Paul Ryan Announces New Congress Sexual Harassment Training Will Create Safe Work Atmosphere, Plausible Deniability.

But sex scandals are easy. If The Onion were seriously in the satire biz, the farcical-on-the-surface nonsense of the Consumer Financial Protection Bureau brouhaha that I wrote about on Tuesday would get incisive treatment as well.

My advice to Onion writers? Don’t go halfway into the problem, like David A. Graham does in The Atlantic: “The Fight Over the CFPB Reveals the Broken State of American Politics.” Sure, that’s true. But concluding that “neither party sees the political process as effective in resolving these basic issues is worrying” hardly goes far enough, and the next line — “the fact that they might both be right is worse still” — shies from the full extent of the predicament.

The Constitution was designed to avoid problems like the CFPB nonsense. Start there. Something like this comes close: “Politicians Shocked, Shocked to Discover That an Un-Constitutional, Partisan Bureau Becomes Subject to Constitutional Dispute Along Partisan Lines.”

I have confidence that, if The Onion went there, it’d be funnier.

Even without a sex angle.

This is Common Sense. I’m Paul Jacob.


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Accountability free trade & free markets insider corruption moral hazard national politics & policies porkbarrel politics responsibility too much government

Cry Me an Amazon

My idea of a “free market” is not our politicians’. Their idea is to give away free stuff to their new and old business buddies . . . at everyone else’s expense.

That sort of “crony capitalism” has been writ large per Amazon’s search for a location for a second headquarters (HQ2). The world’s biggest retailer — valued higher on the market than all other major retailers combined — announced it would spend $5 billion and bestow 50,000 new jobs on HQ2’s locale. Subsequently, 238 cities, states and provinces in the U.S., Canada, and Mexico offered to take from their current citizenry to give unfairly to Amazon.

Chicago’s proposal would allow Amazon to keep the income taxes their employees pay. Seriously. This “personal income-tax diversion” would add up to over a billion dollars for the company.

New Jersey state government offered a cool $7 billion in subsidies should Amazon choose to locate in Newark.

Seattle Times columnist Danny Westneat described this sorry spectacle of subsidy as not so much a corporate “takeover” as a government “surrender.”

The most egregious example, though, has to be Fresno, California, where the city “promises to funnel 85 percent of all taxes and fees generated by Amazon into a special fund. . . . overseen by a board, half made up of Amazon officers . . . supposed to spend the money on housing, roads and parks in and around Amazon.”

“Rather than the money disappearing into a civic black hole,” explained Larry Westurland, Fresno’s economic development director, “Amazon would have a say on where it would go.”

Selling out the taxpayers? Moolah in the millions. Referring to a normal city budget as a “black hole”? Priceless.

This is Common Sense. I’m Paul Jacob.


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Categories
Accountability general freedom government transparency ideological culture insider corruption moral hazard nannyism national politics & policies responsibility too much government U.S. Constitution

Invulnerable Government

As of this week, there are two heads of the Consumer Financial Protection Bureau.

Two claimants to the throne, so to speak.

The bureau’s previous director, Richard Cordray, resigned last week, and as he left he appointed a deputy director, Leandra English. Ms. English sent out a nice Thanksgiving email, billing herself as “Acting Director.”

Meanwhile, in advance of Cordray’s exit, President Trump appointed Mick Mulvaney to fill the role. Mulvaney showed up at work yesterday and took possession of the director’s office. He ordered a hiring freeze . . . and brought donuts.

It gets juicier. English has filed suit against the president and his appointee, claiming to be, herself, the directorship’s rightful heir. She cites the enabling legislation, which allowed for deputization by the director. And she cites her commitment to the agency’s mission, of which Mulvaney and Trump have none.

Republicans generally regard the agency as having gone rogue.

And the squabble over the directorship sure seems to validate that charge.

The legality? Presumably, the legislation that established the agency — which deliberately insulated the CFPB from oversight by funding it from the Federal Reserve — does not void an established law, the Vacancies Act, which does allows the president to fill vacated posts.

Sen. Elizabeth Warren has taken up English’s side in the dispute, because she believes in the agency’s mission.

Now, I get it: to make government as impregnable as a high mountain fortress is an idea that many folks flirt with, from time to time. But the results are always the same: government secure from democratic checks and constitutional balance.

Come on, Democrats! Give democracy a chance.

This is Common Sense. I’m Paul Jacob.


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