Category: folly

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Accountability crime and punishment folly moral hazard nannyism national politics & policies Popular responsibility too much government U.S. Constitution

Where the Beef Is

cheese, law suit, justice, McDonald's, hamburger, Florida, class action

In South Florida, two McDonald’s customers are suing the fast food behemoth for charging them for cheese they say they do not want.

“According to a class-action lawsuit filed in Fort Lauderdale federal court on May 8,” informs the Miami Herald, “Cynthia Kissner, of Broward County, and Leonard Werner, of Miami-Dade, say they have had to pay for cheese they don’t want on their Quarter Pounder sandwiches.”

Before you upchuck every last greasy, chemical-infused/extra-beef morsel of this story, let’s look at the facts:

The Quarter Pounder went national in 1973.

The fast-food franchise used to charge extra for the cheese.

But “at some point” the junk food purveyor stopped “separately displaying these products for purchase on menus.” These days, only the Quarter Pounder with Cheese and the Double Quarter Pounder with Cheese are listed.

McDonald’s joints in Florida, at least, provide no discount for removing the cheese.

Rip-off, say these two customers. How big? A $5 million injury!

That’s what they are suing for.

It’s mad. The lawsuit, that is. You are not entitled to set the pricing and menu policies of stores you do not own.

In a celebrated analysis of loyalty in markets, an economist revealed that consumers have a continuum of options, including “voice” and “exit.”

“Voice” is what you express when you argue your case in a family or a democracy — and fast food provisioners. Decent people will, if disgruntled, choose “exit,” driving down the street to a Wendy’s.

McDonald’s could rightly charge extra for withholding the cheese.

That it doesn’t do so? Chalk it up to savvy.

This is Common Sense. I’m Paul Jacob.

 

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Accountability crime and punishment folly free trade & free markets insider corruption media and media people moral hazard national politics & policies porkbarrel politics property rights responsibility too much government

Déjà vu All Over Again

housing, bust, financial, meltdown, Government-Backed Mortgages, jail, punishment, cause

One of the stand-bys of the post-2008 mortgage finance bust, at least from left-of-center policy mavens, has been to ask: why has no banker gone to prison? They played a game of fraud and got rich. What a protected class — Cronyism! Plutocracy! Capitalism!

The why is much easier to understand if you read up on Round Two of the aughts’ boom-bust scenario, as in Prashant Gopal’s coverage in Bloomberg, “Getting Rich on Government-Backed Mortgages.” Gopal spotlights a non-bank mortgage broker, Angelo Christian, who is making a killing selling houses to people with horrible credit, just as happened before 2008.

“Christian can do this kind of deal because he is, in effect, making the loan on behalf of the federal government through its most important affordable housing program,” Gopal writes. “It’s a sweet deal: He gets his nearly risk-free commission. [His client] puts no money down. If things go south, the government ultimately bears the risk.”

So, should he go to jail?

Not really. He’s merely doing Congress’s bidding.

Gopal notes that it is not banks that dominate this round. They are under too much scrutiny. But non-banking loan intermediaries like Mr. Christian are swarming like flies on a cow’s behind.

There’s a problem in Gopal’s account though. “No one is saying the system is close to another collapse.”

Well, plenty of people are saying that.

The Cassandras are just not being heeded.

Of course, they don’t know when the bust will happen.

They just know it will.

This is Common Sense. I’m Paul Jacob.

 

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Photo by Images Money on Flickr.

 

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Accountability crime and punishment folly general freedom ideological culture media and media people moral hazard nannyism privacy property rights responsibility tax policy too much government U.S. Constitution

Brave New Paternalism

Michael Bloomberg, tax, policy, nanny state, vice, social engineering, statist, technocrat

Michael Bloomberg is rich. He’s also in politics — a public health crusader.

And, for years, he “has personally funded and promoted all sorts of regressive taxes and regulations in an attempt to push people around,” the folks at Americans for Tax Reform tell us. “He uses the coercive power of the government to force people to live their lives as he sees fit.”

Onstage at a globalist event, One-on-One with Christine Lagarde — who is managing director of the International Monetary Fund — Bloomberg blurts out his approach to government policy regarding what he calls “those people.”

“If you raise taxes on full sugary drinks,” he says, “they will drink less and there’s just no question that full sugar drinks are one of the major contributors to obesity and obesity is one of the major contributors to heart disease and cancer and a variety of other things.”

Against the charge often made that such taxes fall heaviest upon the poor, he is forthright. Regressive? “That’s the good thing about them because the problem is in people that don’t have a lot of money.”

Notice that he is not talking about a public service campaign to help people learn how to drink (and eat) better. And he is not talking about removing all the government policies that have encouraged bad eating and drinking habits (as well as lethargy) — the government programs to encourage the overuse of high fructose corn syrup; the welfare state’s poverty trap that stifles life at the lower incomes; the subsidized consumption of food and drink — he wants to add another government program.

He can only see betterment by increased governmental bullying.

This is Common Sense. I’m Paul Jacob.

 

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Michael Bloomberg, tax, policy, nanny state, vice, social engineering, statist, technocrat

Photo by Center for American Progress

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Accountability folly general freedom media and media people national politics & policies

The Ex-Explosion

Margaret Sanger, population, progressivism, panic, birth rate,

When I was a kid, the trendy worry was “the population bomb.” Now we are supposed to worry about a population . . . fizzle?

“The U.S. birth rate has hit a new record low,” writes Peter Dockrill in Science Alert, “with women in nearly every age group giving birth to fewer babies than a year ago.” Titled “U.S. Fertility Rates Have Plummeted Into Uncharted Territory, And Nobody Knows Why,” Dockrill’s article fails to mention that diminishing population by reduced reproduction is an old worry.

It fanned the flames of eugenics and racism in Europe and America in the first half of the 20th century. Progressivism was full of this concern, in its heyday.*

As societies get wealthier, reproduction rates decrease. Economist Theodore W. Schultz called it the swapping of “quantity of children” for “quality of children.” This appears to be a natural, voluntary sort of eugenics — which scares actual eugenicists.

The study that Science Alert focused on fingered a different cause: lead in the environment. Over at Reason, Ronald Bailey sees some plausibility in this Lead Poison Theory. But mostly, Bailey writes, population rates in America (and elsewhere) are declining “largely because Americans are choosing to have fewer children.”

Is this really a problem?

Well, for Big Government it is.** German’s demographic collapse appears to have been one factor prodding Angela Merkel to open the doors to millions of refugees — whom Europe seems to have more trouble assimilating than does America.

I like kids — both making and rearing them. But to each his or her own, of course. Still, maybe if people freaked out less about population explosions, the implosion would prove less serious.

This is Common Sense. I’m Paul Jacob.

 

* Before progressivism changed its name to “liberalism.” And now back. Oh, and note that the Nazis’ more famous eugenic programs were not identical to progressives.

** Ponzi-based safety-net pension systems worldwide were designed for growing populations. Oops!

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(Illustration from Margaret Sanger’s “Birth Control Review” from 1918.)

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Accountability folly general freedom ideological culture moral hazard responsibility U.S. Constitution

China Marks Marx Anniversary

Karl Marx, communism, socialism, death, failure, China, Chinese, German city of Trier

The Chinese government has sought to honor the birth of Karl Marx (1818-1883) by giving a giant bronze statue of the social philosopher and pseudo-economist to the German city of Trier, his birthplace.

Agreeing that Trier and Marx should be thus honored, local officials shamefully accepted the donation.

Marx was a bad guy. His willfully destructive anti-capitalist theorizing and polemics have been enlisted to enslave and murder many millions of people in the Soviet Union, China, Cambodia, Cuba and elsewhere. The story is told in works like Modern Times and The Black Book of Communism. One effective critique of Marxian ideas may be found in the second volume of Murray Rothbard’s History of Economic Thought.

We often hear that Communist implementation of Marxian theory poorly translates “real” communism/socialism/collectivism. No government unswervingly enacts all the ideas and prescriptions of a single intellectual founding father. But there is much in Marx’s volumes that openly demands the razing of the division of labor, profit-seeking, and other requirements of civilization.

In one article, Marx scribbled that “there is only one way in which the murderous death agonies of the old society and the bloody birth throes of the new society can be shortened, simplified and concentrated, and that way is revolutionary terror.” There’s plenty more where this came from.

When a major nation-state gives a town a statue, it’s hard to say no. But one needn’t accept it at face value. Install it on a base that lists the separate bouts of Marx-inspired mass murder. Or use it as a target in paintball tournaments.

Or just place it in the local cemetery. Where deadly ideologies should go.   

This is Common Sense. I’m Paul Jacob.

 

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Accountability folly general freedom media and media people Second Amendment rights too much government

Simplistically Wrong

guns, cars, regulations, meme, gun control, second amendment

A clever “meme” made the rounds earlier this year showing, in two columns, what it would be like were guns regulated like cars.

How reasonable that would be!

“Title and tag at each point of sale”; “Driver training”/“Gun training”; Liability insurance on each vehicle/gun”; etc. It seems sound, no?

No.

The memester failed to address a context: our car and driver regulations apply to vehicles and drivers on government-run roads. On your own property you can drive all sorts of vehicles, unregulated. And it is on their own property that most gun owners’ firearms stay most of the time.

So, treating “guns like cars” would put government deeper into our private affairs.*

The meme came into an economist’s view packaged under the slogan “doing nothing means more people die.” He saw problems. For example, “someone might propose that each person above the age of 10 years old be interned in a mental-health camp, until and unless experts appointed by the state certified that he or she was not a danger to society.”

Same logic — we cannot do nothing, can we?

Another economist dubbed the problem we have identified here as “a simplistic model of public policy.” Policy advocates tend to assume that if you change a policy we get only one effect. Not true.  

A third economist (I’m going for a trifecta!) discovered that even adding safety features to cars comes at a cost in human life: feeling safer, drivers compensate . . . and it is non-drivers who suffer. More drivers hit more pedestrians.

Be cautious when you drive, sure. Be cautious when you shoot, of course.

But be cautious, especially, when you prescribe new laws.

This is Common Sense. I’m Paul Jacob.

 

* Not to mention that gun rights are specifically enshrined in the Constitution and vehicle rights . . . not so much.

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