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free trade & free markets general freedom national politics & policies

Why Protectionism

Why do so many people (especially politicians) favor high tariffs, “managed trade,” embargoes and domestic subsidies, all of which — first as “mercantilism” and then as “protectionism” — have been debunked, repeatedly (demonstrated as ineffective economic policy), since Adam Smith’s famous 1776 attack?

Economist Donald Boudreaux, in an excellent defense of economic principles, explains why the Bernie Sanderses and Donald Trumps of this world support anti-free trade nostrums — out of sheer ignorance:

The typical politician opposes free trade because he . . . doesn’t understand that the purpose of trade — any trade — is to enrich people as consumers and not to enrich people as producers. He doesn’t understand that exports are a cost and that imports are a benefit; he thinks that it’s the other way ’round. He doesn’t understand that the specific jobs lost to imports are not the only employment consequences of trade; he doesn’t understand that trade also “creates” jobs in the domestic economy. . . . He, in short, doesn’t understand the first damn thing about the economics of trade.

But what protectionists do understand are direct appeals to “good results” (like more and better high-paying jobs). The fact that their proposals throw a monkey wrench into the diverse mechanisms of trade, yielding worse results?

They just don’t see them.

Why? Because real economies are complex, and protectionists lack the science that would help them trace the consequences of their policies.

The fact that they’ve focused their whole attention on the business of “governing,” and making simplistic, direct appeals to people who are also uneducated in economic principles, doesn’t help.

This is Common Sense. I’m Paul Jacob.


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Donald Trump, Bernie Sanders, economics, free trade, collage, photomontage, Jim Gill, Paul Jacob, Common Sense

 

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crime and punishment folly free trade & free markets general freedom tax policy

Gold Leaf

The experiment in legalized marijuana begun by citizens in the states of Washington and Colorado has, from the beginning, faced a huge obstacle: marijuana is still illegal, federally. State nullification of federal law is not merely “problematic,” it’s hard to “get away with.”

Take Colorado’s experience. The Centennial State, which has made the swiftest and most extensive progress regarding marijuana retail sales, has come up to an inevitable problem with the federal government.

Over banking.

Interesting Reason reporting tells us that “Marijuana-related businesses in Colorado are so profitable that the government doesn’t know what to do with all of the tax revenue they’re generating. But business owners face a more immediate problem: Where to stash their own profits when banks won’t take it.”

Congress has been very active making banking less and less private and less and less free for decades now, in part because of the War on Drugs. Existing banks refused to take new cannabis clients.

So a new credit union was formed, to handle the cash.

And now, NBC News tells us, our central bank, the Federal Reserve (dubbed by NBC “the guardian of the U.S. banking system”), said “that it doesn’t intend to accept a penny connected to the sale of pot because the drug remains illegal under federal law.” Which makes modern banking difficult, even for a credit union, apparently.

What are “weed” businesses to do . . . other than what they are doing, hiring security guards for all the cash?

Maybe Bitcoin will step in. Or old gold-warehouse banking, as was not unheard of even in the 19th century.

Or, maybe, the federal government will cease its over-reach?

This is Common Sense. I’m Paul Jacob.


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cannabis, marijuana, legalization, tax, taxes, federal, Colorado, illustration, Jim Gill, Paul Jacob, Common sense

 

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Common Sense crime and punishment free trade & free markets general freedom judiciary nannyism national politics & policies too much government

Legalize, But Prohibit?

Last week, I warned of marijuana legalization.

Not that I’m against it. But how much will actual freedom be increased?

Note: I’m not bemoaning, as one activist friend argued, that “if you can’t toke up and celebrate in public when it passes, it’s not legalization.”

One cannot now legally smoke tobacco in most public buildings (meaning those open for business as well as government-owned structures) or drink a beer in most public parks or while navigating sidewalks. But you can smoke and drink at home or on certain types of private property.

Ending the drug war and treating newly legalized marijuana pretty much as we treat alcohol and tobacco seems like a long overdo common sense approach.

There’s also the freedom of home cultivation. I have friends who make wine at home, for private consumption. It’s legal; it’s proper. It should also be legal to grow cannabis at home. Yet, many a politician thinks otherwise.

And they are inspired, in a sense, by the popular legalization mantra, “legalize, tax and regulate.” That sends an ominous signal: in order to maximize revenues, politicians see the revenue advantage in forbidding hard-to-tax home cultivation — cultivation that is, let’s face it, a traditional freedom, a right “retained by the people.”

The excuse for this continued prohibition could be “think of the children.” But it’s probably just greed for revenue . . . and the even more hidden enticements of “crony capitalism,” which plagues almost all industry.

You should be able to grow a plant. And self-medicate. These are basic human rights, and the state should work around those.

This is Common Sense. I’m Paul Jacob.


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Pot Pot, legalization, collage, photo-montage, Paul Jacob, Jim Gill

 

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Common Sense folly free trade & free markets general freedom too much government

Despotic Denver?

In what sort of place does the government get to determine whether you can open a restaurant at an airport, according to whether your political beliefs line up with the politicians in power?

Iran? North Korea? Egypt? China? Cuba? The old Soviet Union? Russia today?

Actually, over far too much of our beautiful globe the marketplace is not anywhere close to free. Instead, it’s maniacally manipulated of, by and for those wielding political power.

Including in Denver, Colorado.

“Chick-fil-A’s reputation as an opponent of same-sex marriage has imperiled the fast-food chain’s potential return to Denver International Airport,” reports The Denver Post, “with several City Council members this week passionately questioning a proposed concession agreement.”

The article notes that the “normally routine process of approving an airport concession deal has taken a rare political turn. The Business Development Committee . . . stalled the seven-year deal with a new franchisee of the popular chain for two weeks.”

Popular?

Yes, extremely popular . . . with customers. A senior airport concessions executive said the restaurant was “the second-most sought-after quick service brand at the airport” in a 2013 survey.

Not popular among politicians, however, who claim concern about DIA’s “reputation.”

That’s about it, really. The company itself isn’t accused of any form of illegal or politically incorrect discrimination. It is merely that the company’s ownership and management have expressed disreputable (to some) opinions. And might donate a portion of its profits to political causes that politicians on the Denver City Council don’t approve of.

In a foreign country, with an unfamiliar cause, almost no one would hesitate to call this what it is: despotic.

This is Common Sense. I’m Paul Jacob.


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Chicken Politburo, politics, photomontage, Paul Jacob, James Gill, collage

 

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Common Sense crime and punishment free trade & free markets general freedom nannyism responsibility too much government

Must the War Go On and On?

I was still a kid, but I remember: as the Vietnam War dragged on, and on, we Americans continued to receive hopeful missives about how the next assault, or regroup, or dedication of manpower and weaponry, would lead to better results.

That’s what came to mind as I read the latest dispatch from the War on Drugs, in the Los Angeles Times. “White House announces push to combat growing heroin epidemic,” ran the headline.

So, it’s growing again? Haven’t I read this about a thousand times?

Talk about a familiar story:

The path to heroin addiction and overdoses can begin when patients are legally prescribed drugs containing opium, said Dr. Walter Ling, professor of psychiatry and founding director of the Integrated Substance Abuse Program at UCLA. . . .

“Once they get hooked they find out it’s very expensive to get these medicines and it’s much cheaper on the street. . . . That leads to street heroin abuse, which leads to the increase in opium overdoses,” Ling said.

But the rest of the story? Not reported.

Oh, sure: we were regaled with how dangerous the cheap street drugs are, because of how they are diluted. What we are not told, though, is that this is not a characteristic of heroin, as such, but of illegal heroin.

Decriminalize it. Let the legitimate market do what black markets cannot: provide responsible information that would discourage accidental overdoses.

Instead, we have a new and futile $1.3 million plan.

We’re overdosing on government. The cure is to cut down government to the proper dose.

This is Common Sense. I’m Paul Jacob.


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Addiction

 

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free trade & free markets general freedom individual achievement

Call for Great Communicators

Money can’t buy me love. So, the $10,000 first prize in the Second Annual Great Communicators Tournament doesn’t matter to me at all. Nor does the $5,000 second prize entice me, and certainly not the $2,500 for third place.

You, however, may be fond of money.

And if you can effectively communicate the freedom message, this contest is well worth joining. But the deadline — THIS FRIDAY, August 7 — is fast approaching.

The tournament’s “goal is to identify . . . and promote individuals who can effectively and persuasively discuss and defend the free market and the founding principles.”

It’s the brainchild of the folks at Think Freely Media — the good souls who sponsor this Common Sense program. They know that liberty advocates must take the moral high-ground in making the case for freedom, and not merely argue by empirical analysis.

The competition is easy to enter. No later than midnight this Friday provide a 1-3 minute video of yourself addressing one of several issues listed on the contest website.

“Videos should be . . . clear and concise, make sure . . . that you use moral, not material, arguments,” contestants are informed. “We’re looking for solid arguments and messages, not flashy production value.”

Your video will be posted, so a combination of public voting and deliberations by the Think Freely staff and judges will identify twelve semi-finalists. These twelve will then compete in person for the top prizes at the State Policy Network’s Annual Meeting in Grand Rapids, Michigan, in September.

Why not see just how talented a communicator you are? And perhaps get even better . . . at growing liberty.

This is Common Sense. I’m Paul McCart . . . er, Paul Jacob.


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Great Communicators Tournament