Quotulatiousness

April 15, 2014

Militarization of the police, pervasive surveillance, incarceration rates, and other police state trappings

Filed under: Government, Liberty, USA — Tags: , , , — Nicholas @ 10:24

An email from Rupert included a link to this infographic illustrating the “progress” of the United States toward a police state:

Click image to see full infographic

Click image to see full infographic

It’s easy to poke fun at people who worry about the ever-growing state involvement in everyday life … well, it used to be fun until the NSA’s incredible list of surveillance programs became known. Now, paranoia is the rational state for anyone concerned with their privacy and freedom of speech. We had Godwin’s Law, which provided a useful rule of thumb for when internet arguments had passed the point of no return. This is a rare example of an argument that meets the condition of Godwin’s Law (in the infographic), yet still remains relevant.

April 13, 2014

Japan does not understand how it is perceived overseas

Filed under: Government, History, Japan — Tags: , , — Nicholas @ 11:02

In The Diplomat, Robert Dujarric explains some of the odd behaviour of some Japanese politicians in dealing with and talking about other nations:

… why are outsiders so worried about Japanese militarism?

First, there is the “sheep in wolf’s clothing” posture of the Abe Cabinet. In barely more than a year it has engaged in an endless stream of symbolic or verbal provocations: pilgrimages to Yasukuni, participation at Takeshima Day rites, Abe-appointed NHK governors denying wartime sexual slavery and the Nanjing Massacre, discussions about revisiting the Kono Statement, and a convoluted speech by Deputy Premier Taro Aso on learning from the Fuehrer.

Second, many Japanese politicians don’t know how the rest of the world thinks. A telling example was the prime minister giving a thumbs up from the cockpit of Japanese Air Self Defense jet with tail number 731. That prompted memories of Imperial Japanese Army Unit 731, which performed gruesome experiments on Chinese, other Asians, Russians and some Westerners (and whose leaders received a “get out of jail card” courtesy of the United States). Yet the premier either didn’t notice the markings or didn’t realize what the impact would be, and then failed to fire his entire advance team afterwards. The “731 photo-op” was not unique. Aso’s trip to Yasukuni just after attending the inauguration of President Park Geun-hye of South Korea was another.

Third, Japan has an excellent but minute corps of diplomats and bureaucrats who excel at interaction with foreigners. Beyond this, though, most of its officialdom, including many in the Foreign Ministry, have not received the necessary training to, as the American expression goes, “make friends and influence people” overseas. The root causes lie in the inward-looking education system. Unfortunately, the government is blind to the requirement to provide extensive multi-year “remedial education” to the graduates it hires to ensure they are capable of functioning in a non-Japanese setting.

Also, Japan’s is a “closed shop.” Most Japanese who grew up overseas or have a parent from another country end up working for foreign companies or governments. Those best suited for interacting between Japan and the world are lost to the Japanese state.

Fourth, most Japanese officials view outsiders who criticize the LDP as hostile to Japan as a nation, which is generally not true. During a recent session with a Japanese diplomat, I mentioned a Western journalist in Tokyo. This reporter, whom I would describe as an open-minded left-winger, is neither a supporter of historical revisionism nor of Koizumi-Takenaka economics. Anyone who cares to read his prose will also notice a deep empathy for the Japanese people, an outstanding knowledge of the country, and a passion for Japanese culture. My Japanese interlocutor, however, saw him as a foe.

April 9, 2014

Amity Shlaes on “progressive” tax rates

Filed under: Government, USA — Tags: , , — Nicholas @ 09:36

The US tax system, like those in many Western countries, incorporates the concept of “progressivity” — the higher the income you earn, the higher the tax you pay on the last dollar. Your income is divided into blocks where each block of dollars is taxed at a different (rising) rate. In other words, the lower your personal income the less tax you pay per dollar of income. Amity Shlaes explains why this mechanism makes reforming or cutting taxes such a challenge:

Over the hundred years intervening, studies have shown that generally people do think that the greater the wealth, the more dollars wealthy people should pay in tax, proportionally. But that is not a progressive rate structure. That is a flat tax. A progressive tax increases rates as you earn more, disproportionally.

Nor are many people aware that under a progressive structure the last dollar is taxed at a different rate from the first dollar. The top marginal rate is not necessarily the average rate. In the early 1980s, scholar Karlyn Keene found that many Americans, when interviewed, thought flat taxes fair. Before Keene, Walter Blum and Harry Kalven at the University of Chicago studied attitudes toward progressivity and its functions and came away, despite their liberal predilections, concluding that the case for progressivity is “uneasy.”

[…]

Vanity of two sorts provides answers. Most Americans are unwilling to concede that they may not understand or be comfortable with long formulas and complex economic ideas. So, like the Enron audit committee, they simply nod and go along.

The second vanity involves not intelligence but a kind of Puritan pretension. No American wants to be caught appearing unfair, even if in the most fleeting snapshot. “Progressivity” sounds like “progress.” Nobody wants to be seen opposing progress, even if that progress is regress and unfair to boot.

In any case: That willed American ignorance is the single greatest reason our progressive income-tax rates have moved, at times, into the 90 percent range, up from that original 7 percent.

Worse, the attitude makes progressivity hard to undo. When you cut taxes for all in a progressive rate structure, the rich necessarily get a larger tax break because they pay a greater share of the taxes. But “larger tax breaks for the rich” are impossible to sell. A redistributive corollary: benefits for the poor. This week Paul Ryan is getting scourged because his budget cuts affect the poor more than the rich. That is because the poor get more of the benefits in the first place.

Update, 10 April: Here’s a great example of how much tax rates can increase at higher levels (although this particular example is not an income tax). In New York state, a recent change to estate tax rates can result in a marginal tax of 164%:

On its face, the new law seems like tax relief. Under the previous law, New Yorkers paid estate taxes of 3.06 percent to 16 percent on the value of estates over $1 million. The new law raises that exclusion to $2.062 million this year and gradually increases it to more than $5 million by 2017.

But because the law also phases out certain credits related to federal taxes, people who have estates valued just above the $2 million threshold could get massive estate tax bills. An analysis by U.S. Trust found that a New York resident who dies today with a taxable estate of $2,165,625 could have to pay an estate tax of over $112,050. That represents a tax of over 100 percent on the value of the estate over $2,062,000.

It gets worse in a few years. Matz said that assuming that the exclusion rises to $5,250,000, a New Yorker with a taxable estate of $5,512,500 would have to pay an estate tax of $430,050. That’s a marginal tax rate of 164 percent on the value of the estate above the exclusion.

April 7, 2014

US government data security failures

Filed under: Bureaucracy, Government, Technology — Tags: , , , , — Nicholas @ 09:02

David Gewirtz says that the press has totally mis-reported the scale of government security breaches:

Summary: This is one of those articles that spoils your faith in mankind. Not only are government security incidents fully into holy-cow territory, the press is reporting numbers three magnitudes too low because someone misread a chart and everyone else copied that report.

You might think this was an April Fool’s gag, except it was published on April 2nd, not April 1st.

According to testimony given by Gregory C. Wilshusen [PDF], Director of Information Security Issues for the Government Accountability Office to United States Senate Committee on Homeland Security and Governmental Affairs that, and I quote, “most major federal agencies had weaknesses in major categories of information security controls.”

In other words, some government agency data security functions more like a sieve than a lockbox.

Some of the data the GAO presented was deeply disturbing. For example, the number of successful breaches doubled since 2009. Doubled. There’s also a story inside this story, which I’ll discuss later in the article. Almost all of the press reporting on this testimony got the magnitude of the breach wrong. Most reported that government security incidents numbered in the thousands, when, in fact, they numbered in the millions.

Emphasis mine. Here are the actual numbers:

Incidents involving personal identifying information grew from about 10.5 million in 2009 to over 25 million last year. By the way, some press reports on this misread the GAO’s charts. For example, the Washington Free Beacon wrote about this, claiming “25,566 incidents of lost taxpayer data, Social Security numbers, patient health information.” What they missed was the little notation on the chart that says “in thousands,” so when they reported 25,566 incidents, what that really reads as is 25,566 x 1000 incidents.

2014 GAO analysis of security breaches

This is an example of how the Internet echo chamber can get information very, very wrong. The Chicago Tribune, via Reuters reported the same incorrect statistic. So did InformationWeek. So did FierceHealthIT. Business Insider picked up the Reuters report and happily repeated the same statistic — which was three orders of magnitude incorrect.

This is why I always try to go to the original source material [PDF] and not just repeat the crap other writers are parroting. It’s more work, but it means the difference between reporting 25 thousand government breaches and 25 million government breaches. 25 thousand is disturbing. 25 million is horrifying.

April 6, 2014

Obamacare, viewed from a distance

Filed under: Government, Health, Politics, USA — Tags: , , , — Nicholas @ 09:16

Peggy Noonan attempts to look at Obamacare apart from the daily battles over details:

As I say, put aside the argument, step back and view the thing at a distance. Support it or not, you cannot look at ObamaCare and call it anything but a huge, historic mess. It is also utterly unique in the annals of American lawmaking and government administration.

Its biggest proponent in Congress, the Democratic speaker of the House, literally said — blithely, mindlessly, but in a way forthcomingly — that we have to pass the bill to find out what’s in it. It is a cliché to note this. But really, Nancy Pelosi’s statement was a historic admission that she was fighting hard for something she herself didn’t understand, but she had every confidence regulators and bureaucratic interpreters would tell her in time what she’d done. This is how we make laws now.

Her comments alarmed congressional Republicans but inspired Democrats, who for the next three years would carry on like blithering idiots making believe they’d read the bill and understood its implications. They were later taken aback by complaints from their constituents. The White House, on the other hand, seems to have understood what the bill would do, and lied in a way so specific it showed they knew exactly what to spin and how. “If you like your health-care plan, you can keep your health-care plan, period.” “If you like your doctor, you can keep your doctor, period.” That of course was the president, misrepresenting the facts of his signature legislative effort. That was historic, too. If you liked your doctor, your plan, your network, your coverage, your deductible you could not keep it. Your existing policy had to pass muster with the administration, which would fight to the death to ensure that 60-year-old women have pediatric dental coverage.

[…]

The program is unique in that the bill that was signed four years ago, on March 23, 2010, is not the law, or rather program, that now exists. Parts of it have been changed or delayed 30 times. It is telling that the president rebuffed Congress when it asked to work with him on alterations, but had no qualms about doing them by executive fiat. The program today, which affects a sixth of the U.S. economy, is not what was passed by the U.S. Congress. On Wednesday Robert Gibbs, who helped elect the president in 2008 and served as his first press secretary, predicted more changes to come. He told a business group in Colorado that the employer mandate would likely be scrapped entirely. He added that the program needed an “additional layer” or “cheaper” coverage and admitted he wasn’t sure the individual mandate had been the right way to go.

Finally, the program’s supporters have gone on quite a rhetorical journey, from “This is an excellent bill, and opponents hate the needy” to “People will love it once they have it” to “We may need some changes” to “I’ve co-sponsored a bill to make needed alternations” to “This will be seen by posterity as an advance in human freedom.”

April 2, 2014

People are less inclined to shop or bank online after NSA surveillance reports

Filed under: Business, Government, Technology — Tags: , , , , , — Nicholas @ 08:46

Among the side-effects of government surveillance revelations, ordinary people are deciding to be a bit less involved in online activities, according to a new Harris Poll:

Online banking and shopping in America are being negatively impacted by ongoing revelations about the National Security Agency’s digital surveillance activities. That is the clear implication of a recent ESET-commissioned Harris poll which asked more than 2,000 U.S. adults ages 18 and older whether or not, given the news about the NSA’s activities, they have changed their approach to online activity.

Almost half of respondents (47%) said that they have changed their online behavior and think more carefully about where they go, what they say, and what they do online.

When it comes to specific Internet activities, such as email or online banking, this change in behavior translates into a worrying trend for the online economy: over one quarter of respondents (26%) said that, based on what they have learned about secret government surveillance, they are now doing less banking online and less online shopping. This shift in behavior is not good news for companies that rely on sustained or increased use of the Internet for their business model.

[…]

Whether or not we have seen the full extent of the public’s reaction to state-sponsored mass surveillance is hard to predict, but based on this survey and the one we did last year, I would say that, if the NSA revelations continue – and I am sure they will – and if government reassurances fail to impress the public, then it is possible that the trends in behavior we are seeing right now will continue. For example, I do not see many people finding reassurance in President Obama’s recently announced plan to transfer the storage of millions of telephone records from the government to private phone companies. As we will document in our next installment of survey findings, data gathering by companies is even more of a privacy concern for some Americans than government surveillance.

And in case anyone is tempted to think that this is a narrow issue of concern only to news junkies and security geeks, let me be clear: according to this latest survey, 85% of adult Americans are now at least somewhat familiar with the news about secret government surveillance of private citizens’ phone calls, emails, online activity, and so on.

Comparing scandals – Toyota’s phantom acceleration and GM’s ignition switches

Filed under: Business, Government, USA — Tags: , , , , , — Nicholas @ 08:10

David Harsanyi offers this comparison and says it’s another reason governments shouldn’t own businesses:

In February 2010, the Obama Administration’s Transportation Secretary Ray LaHood told America, without a shred of evidence, that Toyota automobiles were dangerous to drive. LaHood offered the remarks in front of the House Appropriations subcommittee that was investigating reports of unintended-acceleration crashes. “My advice is, if anybody owns one of these vehicles, stop driving it,” he said, sending the company’s stock into a nosedive.

Even at the time, LaHood’s comments were reckless at best. Assailing the competition reeks of political opportunism and cronyism. It also illustrates one of the unavoidable predicaments of the state owning a corporation in a competitive marketplace. And when we put LaHood’s comment into perspective today, it’s actually a lot worse. Not only did the Obama administration have the power and ideological motive to damage the largely non-unionized competition, it was busy propping up a company that was causing preventable deaths.

[…]

The National Highway Traffic Safety Administration’s acting chief David Friedman testified that GM never told them that faulty switches were at the root of the airbag problem. Fine. Before plowing billions of tax dollars into saving the United Automobile Workers, did the Car Czar or any other Obama officials take extra care to review DOT records to insure that taxpayers would not be funding the preventable deaths of American citizens? Would DOT or Holder exhibit the same zealousness for safety when it came to GM as they did when it came to Toyota? In the midst of the bailout debate and subsequent “turnaround,” news of a coverup and major recall would have been a political disaster.

So it’s difficult to understand why this isn’t a huge scandal. If every obtuse utterance by an obscure Republican congressman gets the media juices flowing, surely the possibility of this kind of negligence is worth a look. Can anyone with access to the administration ask some of these questions? Because if you take credit for “saving” a company (actually, an “industry,” as no one would ever driven again if Obama hadn’t saved the day) you also get credit for “saving” the real-life unscrupulous version of the company. “I placed my bet on American workers,” Obama told union workers in 2012. “And I’d make that same bet again any day of the week. And now, three years later that bet is paying off.” Betting $80 billion of someone else’s money to prop up sympathetic labor unions isn’t exactly fraught with political risk. Unless it turns out that your administration was less concerned about the safety defects of the company you owned than the company you disliked. That would be corruption.

March 31, 2014

Trust is the key to civilization

Filed under: Government, Liberty, Media, Politics, USA — Tags: , , , , — Nicholas @ 00:01

Victor Davis Hanson explains why the drop in trust — specifically the peoples’ trust in government — is on a steep downward trajectory:

Transparency and truth are the fuels that run sophisticated civilizations. Without them, the state grinds to a halt. Lack of trust — not barbarians on the frontier, global warming or cooling, or even epidemics — doomed civilizations of the past, from imperial Rome to the former Soviet Union.

The United States can withstand the untruth of a particular presidential administration if the permanent government itself is honest. Dwight Eisenhower lied about the downed U-2 spy plane inside the Soviet Union. Almost nothing Richard Nixon said about Watergate was true. Intelligence reports of vast stockpiles of WMD in Iraq proved as accurate as Bill Clinton’s assertion that he never had sexual relations with Monica Lewinsky.

Presidents fib. The nation gets outraged. The independent media dig out the truth. And so the system of trust repairs itself.

What distinguishes democracies from tinhorn dictatorships and totalitarian monstrosities are our permanent meritocratic government bureaus that remain nonpartisan and honestly report the truth.

The Benghazi, Associated Press, and National Security Agency scandals are scary, but not as disturbing as growing doubts about the honesty of permanent government itself.

March 29, 2014

Surveillance of Canadian telecommunications channels

Filed under: Cancon, Government, Law, Media — Tags: , , , , , — Nicholas @ 00:01

The University of Toronto’s Munk School of Global Affairs looks at how the Canadian security establishment operates:

The issue of lawful access has repeatedly arisen on the Canadian federal agenda. Every time that the legislation has been introduced Canadians have opposed the notion of authorities gaining warrantless access to subscriber data, to the point where the most recent version of the lawful access legislation dropped this provision. It would seem, however, that the real motivation for dropping the provision may follow from the facts on the ground: Canadian authorities already routinely and massively collect subscriber data without significant pushback by Canada’s service providers. And whereas the prior iteration of the lawful access legislation (i.e. C–30) would have required authorities to report on their access to this data the current iteration of the legislation (i.e. C–13) lacks this accountability safeguard.

In March 2014, MP Charmaine Borg received responses from federal agencies (.pdf) concerning the agencies’ requests for subscriber-related information from telecommunications service providers (TSPs). Those responses demonstrate extensive and unaccountable federal government surveillance of Canadians. I begin this post by discussing the political significance of MP Borg’s questions and then proceed to granularly identify major findings from the federal agencies’ respective responses. After providing these empirical details and discussing their significance, I conclude by arguing that the ‘subscriber information loophole’ urgently needs to be closed and that federal agencies must be made accountable to their masters, the Canadian public.

[…]

The government’s responses to MP Borg’s questions were returned on March 24, 2014. In what follows I identify the major findings from these responses. I first discuss the Communications Security Establishment Canada (CSEC), Canadian Security Intelligence Service (CSIS), Royal Canadian Mounted Police (RCMP), and Canadian Border Service Agency (CBSA). These agencies provided particularly valuable information in response to MP Borg’s questions. I then move to discuss some of the ‘minor findings’ related to the Canadian Revenue Agency (CRA), Competition Bureau, Statistics Canada, and the Transportation Safety Board (TSB).

March 23, 2014

Isn’t it Ironic: Government Surveillance Version (with Remy)

Filed under: Government, Humour, Liberty, Media — Tags: , , , — Nicholas @ 00:01

Published on 20 Mar 2014

Remy updates the Alanis Morissette hit for a certain senior senator from California.

Approximately 2 minutes.

Written by Remy. Video and animation by Meredith Bragg. Music performed, produced, recorded, mixed and mastered by Ben Karlstrom.

For full text, links, downloadable versions and more, go to: http://reason.com/reasontv/2014/03/20/remy-isnt-it-ironic.

Lyrics:
A Senator lady
Got the news one day
The country’s being spied on
by the NSA

So she went out defending
on each TV set
but when she found out she’d been snooped on
she got all upset

And isn’t it ironic?
I mean, don’t you think?

It’s like you’re at Chris Brown’s
and there’s punch in the fridge
or if The Bachelor
passed a geography quiz

Learning Ted Kennedy
happened to be good at bridge.
And who would have thought?
It figures.

Senator, this may surprise you
and the irony bites
but Congresspeople ain’t the only ones
with 4th Amendment rights

It’s like a minimalist
who does their laundry
with All
or if Woody Allen liked to watch
Kids in the Hall

it’s like FDR
got locked in a Honda Accord
a cheap healthcare plan
that you just can’t afford

If Oscar Pistorius
really hated The Doors
and who would have thought?
It figures.

I heard the government
is sneaking up on you.
Life has a funny, funny way
of calling you out
calling you out.

March 22, 2014

Turkish Twitter users work to circumvent the government’s ban

Filed under: Europe, Government, Media — Tags: , , , — Nicholas @ 10:00

In the Guardian, Constanze Letsch reports from Istanbul as users of Twitter actively flout the government’s peevish ban of the online service:

Turkish users of Twitter, including the country’s president, have flouted a block on the social media platform by using text messaging services or disguising the location of their computers to continue posting messages on the site.

In what many Twitter users in Turkey called a “digital coup”, Telecom regulators enforced four court orders to restrict access to Twitter on Thursday night, just hours after the prime minister, Recep Tayyip Erdogan, vowed to “eradicate” the microblogging platform in an election speech.

The disruption followed previous government threats to clamp down on the social media and caused widespread outrage inside and outside Turkey. In a first reaction to the ban, Neelie Kroes, vice-president of the European commission, tweeted: “The Twitter ban in #Turkey is groundless, pointless, cowardly. Turkish people and intl community will see this as censorship. It is.”

Štefan Füle, EU commissioner for Enlargement and European Neighbourhood Policy, said in a statement: “The ban on the social platform Twitter.com in Turkey raises grave concerns and casts doubt on Turkey’s stated commitment to European values and standards.”

The hashtag #TwitterisblockedinTurkey quickly rose to the top trending term globally. According to social media agency We Are Social the number of tweets sent from Turkey went up 138% following the ban.

March 20, 2014

Jim Flaherty’s legacy

Filed under: Cancon, Economics, Government — Tags: , , — Nicholas @ 10:10

The federal finance minister announced his resignation the other day. This had been rumoured for quite some time, as Jim Flaherty had been having health issues for the last couple of years. He’s at least for the time being remaining as my local MP (full disclosure: I coached two of his sons in soccer several years ago). He wasn’t going to be my MP in the next parliament, as my village is being moved to a different riding under the new boundaries. At Gods of the Copybook Headings, Richard Anderson tries to find the right words to say goodbye:

Writing valedictory posts is always a bit tricky. You have to strike a balance between showing the bad that is the obvious at the moment with the good that might be visible only in hindsight. It be must admitted that Jim Flaherty was not a bad finance minister, a minister who surrendered to every short-term political demand of the cabinet. Nor was he a great one charting a new course for Canada. He didn’t shift the goal posts, like Michael Wilson did for Brian Mulroney or Paul Martin did for Jean Chrétien. Big Jim minded the shop better than the other guys would have. Among midgets he was a giant.

The Flaherty years consisted of digging a gigantic hole and then carefully filling it back in. Modest surpluses, massive deficits and then a projected modest surplus. To quote the old poem: “Always he led us back to where we were before.” The net result is that we have a somewhat larger national debt than if we’d balanced the books for eight straight years. Not good but not too bad either.

[…]

As for Big Jim? Well he was one of the best Liberal finances minister of the last hundred years.

Such a well-placed barb. So artistically planted. And so true.

Alberta Premier resigns (just ahead of the party lynch mob)

Filed under: Cancon, Government, Politics — Tags: , , , — Nicholas @ 07:36

Colby Cosh on the resignation of Alberta’s Alison Redford:

It was a tearful surrender for Alison Redford Wednesday night as she gave a curiously backward resignation speech, grocery-listing the accomplishments of her government’s two years in power before announcing that she will step aside as Premier of Alberta on Sunday. Among these accomplishments, Redford trumpeted a “fully balanced” 2014 budget, which is “balanced” in an unusual sense of that term meaning “expenditures far exceed revenues, but in a nice way.”

That sort of cynical language was, it must be said, part of her problem with voters. The Alberta budget became more cryptic under Redford, and the usual accounting fictions have been stressed to the breaking point, with revenues assigned hugger-mugger to “operating” and “capital” purposes with no very clear line of demarcation between. If you think Albertans don’t pay attention to that sort of thing, you don’t know us too well.

There will be a temptation to sum up Redford’s ouster by citing her clownishly expensive December trip to South Africa to attend the funeral of Nelson Mandela. Redford, in truth, had almost literally every kind of problem you can imagine a Westminsterian political leader having, all of them chronically. Her relationship with her caucus was dire, as became obvious to the news-reading public in the last fortnight. Any defenders she might have had were keeping pretty quiet, and no one seemed to expend much effort reading from an orchestral score of talking points. Few MLAs ventured beyond muttering “She needs to make some changes.” From some of these, it was pretty obvious that the change they had in mind was the one that happened tonight.

[…]

Redford’s resignation completes the transition of the Alberta Progressive Conservative Party from unstoppable electoral force to the Sick Man of Canadian Politics. Sick men have risen from their deathbeds before, and the opposition Wildrose Party may not be ready to complete a journey to power that is following the Reform Party model. (You will recall that this involved negotiating quite a few twists and turns and a couple of avalanches and volcanos.)

March 17, 2014

Current US government programs actually increase income inequality

Filed under: Bureaucracy, Government, USA — Tags: , , , , — Nicholas @ 09:32

In the Washington Post, George Will says that we’ve learned nothing about helping the poor since Daniel Patrick Moynihan’s day:

Between 2000, when 17 million received food stamps, and 2006, food stamp spending doubled, even though unemployment averaged just 5.1 percent. A few states have food stamp recruiters. An award was given to a state agency for a plan to cure “mountain pride” that afflicts “those who wished not to rely on others.”

Nearly two-thirds of households receiving food stamps qualify under “categorical eligibility” because they receive transportation assistance or certain other welfare services. We spend $1 trillion annually on federal welfare programs, decades after Daniel Patrick Moynihan said that if one-third of the money for poverty programs was given directly to the poor, there would be no poor. But there also would be no unionized poverty bureaucrats prospering and paying dues that fund the campaigns of Democratic politicians theatrically heartsick about inequality.

The welfare state, primarily devoted to pensions and medical care for the elderly, aggravates inequality. Young people just starting up the earnings ladder and families in the child-rearing, tuition-paying years subsidize the elderly, who have had lifetimes of accumulation. Households headed by people age 75 and older have the highest median net worth of any age group.

In this sixth year of near-zero interest rates, the government’s monetary policy breeds inequality. Low rates are intended to drive liquidity into the stock market in search of higher yields. The resulting boom in equity markets — up 30 percent last year alone — has primarily benefited the 10 percent who own 80 percent of all directly owned stocks.

March 14, 2014

QotD: The nature of government

Filed under: Government, Quotations — Tags: , , — Nicholas @ 06:53

All government, in its essence, is a conspiracy against the superior man: Its one permanent object is to police him and cripple him. If it be aristocratic in organization, then it seeks to protect the man who is superior only in law against the man who is superior in fact; if it be democratic, then it seeks to protect the man who is inferior in every way against both. Thus one of its primary functions is to regiment men by force, to make them as much alike as possible and as dependent upon one another as possible, to search out and combat originality among them. All it can see in an original idea is potential change, and hence an invasion of its prerogatives.

H.L. Mencken, “Le Contrat Social”, Prejudices, Third Series, 1922

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