ReasonTV
Published on 12 Mar 2018The president’s first year of slowing down regulations shattered previous records. But will politics and legislative inaction stall things from here?
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With his tariffs on aluminum and steel, family-separating crackdowns on nonviolent illegal immigrants, and authoritarian musings about executing drug dealers, President Donald Trump can be a libertarian’s nightmare.Except when it comes to regulatory reform.
The Competitive Enterprise Institute (CEI), a Washington, D.C.-based free market think tank that focuses on the administrative state, tallied up the number of regulations in Trump’s first year in office and found, “This is the lowest count since records began being kept in the mid-1970s.” CEI Vice President for Policy Clyde Wayne Crews told Reason that, “I haven’t seen personally anything like the regulatory reductions that have taken place.”
What’s producing these results? In part, the president’s early executive orders mandating that with every new regulation two old ones get killed, and that the net imposed regulatory cost of each agency and department be zero. Trump has also appointed some real reformers to change the way the executive branch does business: Scott Gottlieb at the Food and Drug Administration (FDA), Ajit Pai at the Federal Communications Commission, Betsy DeVos at the Department of Education, and Rick Perry at the Department of Energy.
Chief among the anti-bureaucratic bureaucrats is Neomi Rao, administrator of the obscure-sounding but important Office for Regulatory Affairs (OIRA), which applies cost-benefit analyses to proposed regulation while making sure it still aligns with legislative intent. Rao, who came to the administration after founding the Center for the Study of the Administrative State at George Mason University’s Antonin Scalia Law School, tells Reason that, “We have done more in our first year than any president since we’ve been keeping records, which is back to Reagan.”
President Trump appears genuinely enthusiastic about this push, talking up FDA reforms in both of his State of the Union addresses, and crowing at a December red-tape-cutting ceremony that, “The never-ending growth of red tape in America has come to a sudden screeching and beautiful halt.”
But Crews warns that a midterm will be much harder for Trump to navigate than the comparative honeymoon of 2017. “I think in 2018, he’s going to have a much tougher time meeting the goal,” Crews said. “When you’re acting alone as president and you can’t make law on your own, the barrier that you run into is you run out of low-hanging fruit.”
Produced by Matt Welch and Alexis Garcia. Camera by Todd Krainin, Ian Keyser, Mark McDaniel, and Jim Epstein.
March 13, 2018
Trump Is ‘Destroying’ Regulations
The economic argument for carbon taxes
Tim Worstall explains what a carbon tax is supposed to do, as opposed to what many environmental activists want it to do:
The essential economic analysis is that carbon emissions are an “externality.” There are costs to third parties of the freely chosen activities of consenting adults. If there aren’t such third party costs then the adults get to consent – as long as your bedroom contains only those freely consenting adults then what goes on there is up to you. But if there are those third party costs – say, the noise from the enjoyments causes lost sleep among the neighbours – then some societal power to force an adjustment seems reasonable enough.
Again, economics analyses here by suggesting that we’ll get too much, or too many, of those third party costs if people aren’t paying for them. If we’ve not got to pay to soundproof the orgy then we’ll have more orgies than if we do. It’s fair that we insist upon such soundproofing perhaps. But sometimes we cannot insist upon such direct actions – then we’ve got to try and change the price system. Which is what the carbon tax does.
There are benefits to using fossil fuels – transport, heat, cooking and so on. Given current technological levels immediate banning would mean billions die – commonly thought to be a Bad Thing. But there are those costs imposed upon others as well in the climate change the emissions cause. The answer is that we look to that greatest good of the greatest number, the utilitarian answer. Where emissions produce more value than the damage they cause – including over time – then we want them to continue. Where they don’t then we want them to stop. That way we get the maximum possible value being created and thus all humans – over time – are as rich as we can be given current technologies.
Calculating what this number is, this tax rate, is also known as determining the social cost of carbon emissions. The Stern Review may or may not have exactly the right number but it’s a good enough starting point, $80 per tonne CO2. Say 50 cents or so per gallon of gas. Slap that tax on and we’ve corrected the price system. People who use gas are now paying the environmental costs of their use. So, anything they use it for must create greater value than the damage being caused. We’re copacetic at this point, we’ve the optimal level of emissions.
Note that this logic still works whatever you think of the rate. 1 cent or $100 a gallon, the logic is still the same, we’re only arguing over what is that social cost of carbon. Stick a tax on of whatever it is and we’re done.
Even if climate change isn’t a problem, or isn’t happening, we do still need some tax revenues somewhere. It’s also better to tax consumption than incomes or capital, better to tax things inelastic in demand with respect to price than those elastic. Fossil fuel consumption taxation is a consumption tax and the demand for fossil fuels is, in the short to medium term at least, inelastic. We’re fine with fuel taxation therefore.
For a quick backgrounder on the concept of externalities, MR University did a video on this a few years back. For reasons to worry that your government might not be quite as revenue-neutral in imposing a Pigouvian tax, Warren Meyer also has doubts.
German Tactics For 1918 Spring Offensive I THE GREAT WAR Special
The Great War
Published on 12 Mar 2018The German Spring Offensive in 1918, the so called Kaiserschlacht or Operation Michael, was the biggest German offensive of World War 1 and Quartermaster-general Erich Ludendorff prepared his troops for this battle by incorporating everything the German Army had learned in this war until now. Hutier Infiltration Tactics, Georg Bruchmüller’s artillery targeting and more lessons from the Eastern Front mean the Entente was facing a different army than before.
From slavery to Jim Crow to the civil rights movement
In the latest Libertarian Enterprise, Sean Gabb discusses the role of international affairs in reducing racial inequality in the United States from 1877 to 1981:
The year 1877 is significant in America history, as this was the year in which the Federal Government ceased to interfere in the affairs of its Southern States, and these States began to construct the system of white racial supremacy known as “Jim Crow.” It is also a useful starting point for charting the rise of America to world supremacy. In the years before 1914, the Americans regarded opposition to European colonial rule as a prime foreign policy objective. They resented British/Indian control of the far East and they were strongly opposed to any division of China between the European colonial powers. They preached an ’Open Door Policy’ for China in which none of the white powers would have political control.
Again, this concern for the independence and self-determination of others was inconsistent with their own internal policies. As put by Paul Gilroy in the introduction of The Autobiography of Malcolm X, “the American civil war did not end in 1865.” Until the 1960s and even later blacks remained systematically at a legal and social and economic disadvantage in America. In most of the Southern States, blacks were not allowed to vote or to sit on juries, public and most private services were racially segregated, racial intermarriage was made illegal.
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In the end America did not sign the treaty of Versailles and did not join the League of Nations. American domestic affairs remained insulated from foreign affairs. Wilson himself did much to keep them so. The early twentieth century saw a grown of racial consciousness among American blacks, and a number of charismatic leaders emerged to press the case for black equality. These included intellectual activist W. E. B. Du Bois, entrepreneur C. J. Walker, National Equal Rights League founder William Monroe Trotter, and activist Wells-Barnett, and Marcus Garvey, founder of The Universal Negro Improvement Association. These men wanted to attend and address the Paris Peace Conference in 1919. Wilson ensured that they were kept out.
By the 1930s, we see a growing realisation of the conflict between foreign and domestic policy. Look, for example, at chapter 26 of Harper Lee’s classic novel To Kill A Mockingbird. It is the 1930s and a teacher in the protagonists’ school denounces Nazi mistreatment of the Jews in Germany. She seems completely unaware that the Nuremburg decrees may have compared rather well with the ‘Jim Crow’ system in which she lived.
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What matters about the Cold war for America is that its race relations became a serious embarrassment to its foreign policy. In order to oppose Communism the Americans had to preach their own versions of human rights which included all the usual liberal freedoms – i.e. freedom of speech, freedom of association, equality before the law, and so forth. It also needed the cooperation of an increasing number of non-white post-colonial governments. At every opportunity the Soviets tried to embarrass the Americans by drawing attention to their internal race relations.
Take, for example, the memorandum written in June 1963 by Thomas Hughes, Assistant Secretary of State for Intelligence and Research at the State Department. He summarises some of the main themes of Soviet broadcasts to the Third World: Capitalism provides a natural environment for racism, which will never end so long as the American system needs cheap labour; the federal government’s policy of limited intervention in Southern conflicts is tantamount to support of Southern racism; the United States cannot claim to be the leader of the free world while hypocritically refusing to support civil rights within its own borders.
Hughes adds that, most politically damaging, Soviet broadcasters were arguing that American domestic policy toward its black citizens was ‘indicative of its policy toward peoples of color throughout the world.’ Emerging African, Asian, and South American nations, in other words, should not count on Americans to support their independence.
The journalist Walter Lippmann had noted in 1957 that
the work of the American propagandist is not at present a happy one…. [Segregation] mocks us and haunts us whenever we become eloquent and indignant in the United Nations…The caste system in this country, particularly when as in Little Rock it is maintained by troops, is an enormous, indeed an almost insuperable, obstacle to our leadership in the cause of freedom and human equality.
We can write the history of the American civil rights movement purely in terms of domestic politics. We can for example write about the Brown decision and ’Massive Resistance’ and the crisis in Little Rock. Of course this is entirely legitimate. The struggle for racial equality has deep roots in American history and may well have triumphed even had there been no other countries in the world. However it does seem reasonable to see an international dimension in the rapid progress of racial equality after the 1940s.
The Queen of Lesbos – Poetess Sappho l THE HISTORY OF SEX
IT’S HISTORY
Published on 16 Sep 2015The Greek poetess Sappho from the Isle of Lesbos is the most important female lyricist of the classical age. She worshipped women and often addressed her work to beautiful ladies. Although her definite sexuality will remain a mystery, it is almost as widely discussed as her work itself. The constant myth that Sappho was gay remains which is why the term “lesbian” dates back to Sappho’s erotic poetry. Learn all about the great Sappho and what the term “doing it like the ladies of Lesbos” actually means, on IT’S HISTORY.