Quotulatiousness

July 30, 2017

The Greenback cases

Filed under: Government, History, Law, USA — Tags: , , , , — Nicholas @ 03:00

At Samizdata, Paul Marks discusses why it is so difficult to prevent governments from expanding their powers far beyond what the constitution may allow:

… a Constitution is only as good as the enforcement mechanisms to make sure it is obeyed – and as Luther Martin warned at the Constitutional Convention in Philadelphia, trusting government appointed judges to limit the powers of the very government that appointed them is a fatally flawed idea.

This is not a recent problem. Even in the 19th century the Supreme Court often ruled that the Federal Government has powers that the Constitution does NOT give it. For example the infamous “Second Greenback Case” where the Supreme Court, with newly appointed “justices” (appointed, in part, for this corrupt purpose) overturned the “First Greenback Case” where the court had declared, quite correctly, that the Federal Government has no power to print (or have printed) money – only to “coin money” (Article One, Section Eight of the Constitution of the United States) and that only gold or silver coin (not paper money) may be “legal tender” in any State (Article One, Section Ten of the Constitution of the United States). Nothing could be plainer than that paper money is unconstitutional – indeed the very reason the United States Constitution was written in the first place was to prevent the “not worth a Continental” paper money issued by the Continental Congress to finance its government – those who support the Articles of Confederation system forget that one of its fundamental flaws was that it allowed the government to print money, as it gave no reliable source of taxation to finance the United States Armed Forces. Without a large scale and professional armed forces there is no point in having a United States of America at all – and each State might as well go its own way till conquered by European powers in the 18th century or by the People’s Republic of China in the 21st century.

[…]

To return to the Greenback Cases… – Chief Justice Salmon P. Chase (the former “slaves lawyer” famous for his anti slavery legal work before the Civil War) de facto ruled that the Treasury Secretary during the Civil War had acted unconstitutionally in having money printed, even though the the Treasury Secretary of the time was Salmon P. Chase (himself). It is not necessary to recuse yourself if you intend, de facto, to find yourself guilty. However, more “justices” were added to the court – and the judgement (and the Constitution) was overturned. The argument being that no more paper money was being printed – it would gradually go over time, so there was no need to make a fuss… still less to declare that the “United States Dollars” in the pockets of people were just bits of paper with ink on them (not “money”).

In 1935 the Supreme Court de facto ruled (by five votes to four) that the Federal Government could steal all monetary gold and void all private and public contracts that had gold (or silver) clauses in the contracts. There was no Constitutional basis for this decision (none whatever – just “lawyer’s cant”) and the Federal Reserve notes declared valid money came from an organisation (the Federal Reserve system created in 1913) that the Congress had no Constitutional power to create. The Supreme Court, led by the Chief Justice, might as well have chanted “Death to America!” and “Hail Satan!” as they announced their judgement – as some of the dissenting judges pointed out. Thus the unconstitutional Credit Bubble financial system was pushed forward. The doubts of Luther Martin at the Constitutional Convention were vindicated – government appointed judges sitting without a jury can not be trusted.

July 29, 2017

Things to keep firmly in mind before investing in legalized marijuana markets

Filed under: Business, Economics, USA — Tags: , , — Nicholas @ 04:00

There will definitely be money to be made as more and more jurisdictions move to legalize marijuana, but it’s not going to be like soup raining down from heaven — it’s not going to be a simple as just grabbing a bucket:

Here are Coyote’s first three rules of business strategy:

  1. If people are entering the business for personal, passionate, non-monetary reasons then the business is likely going to suck. When I say “suck”, I mean there may be revenues and customers and even some profits, but that the returns on investment are going to be bad**. Typically, the supply of products and services and the competitive intensity in an industry will equilibrate over time — if profits are bad, some competitors exit and the supply glut eases. But if people really love the industry and do not want to work anywhere else and get emotional benefits from working there, there always tends to be an oversupply problem. For decades, maybe its whole history, the airline industry was like this. The restaurant industry is this way as well. The brew pub industry is really, really like this — go to any city and check the list of small businesses for sale, and an absurd number will be brew pubs.
  2. If the business is frequently featured in the media as the up and coming place to be and the hot place to work, stay away. Having the media advertising for new entrants is only going to increase the competitive intensity and exacerbate the oversupply problem that every fast-growing industry inevitably faces as it matures.
  3. Beware the lottery effect — One or two people who made fortunes in the business mask the thousands who lost money (Freakonomics had an article on the drug trade positing that it works just this way — while assumes the illegal drug trade makes everyone in it rich, in fact only a few really do so and the vast majority are and always will be grinders making little money for high risk). Even those people who made tons of money in hot businesses sometimes just had good timing to get out at the right time before the reckoning came. Mark Cuban is famous as an internet billionaire, but in fact Broadcast.com, which he sold for over $5 billion to Yahoo, only had revenues in its last independent quarter of about $14 million and was losing money (that’s barely four times larger than my small company).

When I was at Harvard Business School, the first two cases in the first week of strategy class were a really cool high-tech semiconductor fab and a company that makes brass water meters that are sold to utilities. After we had read the cases but before we discussed them, the professor asked us which company we would like to work for. Everyone wanted the tech firm. But as we worked through the cases, it became clear that the semiconductor firm had an almost impossible profitability problem, while Rockwell water meters minted money. I never forgot that lesson — seemingly boring industries could be quite attractive, and this lesson was later hammered home for me as I later was VP of corporate strategy for Emerson Electric, a company that was built around making money from boring but profitable industrial products businesses.

[…]

** You can tell I have classical training in business strategy because my goal is return on investment. One can argue, perhaps snarkily but also somewhat accurately, that there is a new school of thought that does not care about profitability, revenues, or return on investment but on getting larger and larger valuations from private investors based on either user counts or just general buzz. I am entirely unschooled in this modern form of strategy. However, the general strategy of getting someone to overpay for something from you is as old as time. I mentioned Mark Cuban but there are many other examples. Donald Trump seems to have made a lot of money from a related strategy of fleecing his debt holders.

QotD: Imposing “democracy”

Filed under: Government, History, Middle East, Quotations, USA — Tags: , , , , — Nicholas @ 01:00

To be fair, the British set up monarchies, in the hope that they would become constitutional monarchies (which were their experience of something that might actually get somewhere). Jordan seems to be succeeding; the Gulf states are so successful few want to change; and Egypt was derailed by the Soviets and Americans playing Cold War games. The French tried to set up republics (god knows why, their’s [had] never worked) in Syria, Lebanon, Tunisia, and other places. In the words of Dr Phil, ‘How’s that working out for you?’. The Americans successfully undermined the Egyptian and Iranian attempts to get constitutional monarchies off the ground, and celebrated the resulting republics… very briefly. The second in particular no longer looks a very clever move.

The latest American attempts to force republics on Afghanistan and Iraq have been absolute disasters.

Afghanistan might, might… have worked if the Americans had understood that such a tribalised society required a House of Lords of all the powerful tribal leaders and major clerics, to balance [the] elected representatives. (But of course it would still need some sort of monarch to make it work, because, as Machiavelli pointed out, you need 3 powers in balance, so any two can stop the third from dominating!).) Or they could just have a system where the two major components completely ignore each other while they compete for control, and leave an easy opening for the return of the Taliban.

Iraq might, might… have worked with a federal system of at least a dozen ethnically based states that each had two representatives to a senate that had the right to block the excesses of an elected house where a 50% majority could get revenge on everyone else for every slight since the death of the prophet. Or they could go for a more simplistic version of a republic, and get what they inevitably got.

Why couldn’t the Americans have kept their big fat ideologies out of it, as they largely did after the first Gulf War. Kuwait is no great shining beacon, but it doesn’t suffer from the American idealism that lead to Afghanistan, Iraq, Egypt and Iran!

Nigel Davies, “The ‘Arab Spring’, 1848, and the 30 Years War/s…”, rethinking history, 2015-09-19.

July 28, 2017

13 Reasons Jeff Sessions is a @$#/!

Filed under: Liberty, Politics, USA — Tags: , , , , — Nicholas @ 04:00

Published on Jul 27, 2017

Jeff Sessions is on the ropes with Donald Trump. Good.

The president is pissed because Sessions recused himself from the investigation of Russian attempts to influence the 2016 election. But here are a baker’s dozen of reasons to hate the attorney general, including his obsession with restarting the war on pot, his call to jack up mandatory minimums, and his support for civil asset forfeiture. Then there’s his lack of interest in due process, willingness to subvert state’s rights when they conflict with his desired outcome, and desire to lengthen prison terms for non-violent criminals. Also, he might be some kind of statist elf.
—–
During Sessions’ confirmation hearings, Democrats claimed the former Alabama senator was unfit for office because he was a racist, charges that were never really substantiated. But Sessions’ voting record and policy agenda are more than enough to disqualify him from being the nation’s top law enforcement officer.

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Game of Thrones in the DC swamp, where nobody has read Sun Tzu’s Art of War

Filed under: Media, Politics, USA — Tags: , , , , , — Nicholas @ 03:00

Kurt Schlicter offers some strategic advice to President Trump, illustrated by some recent Game of Thrones narrative (dunno how accurate, as I’ve neither read the books nor watched any recent TV episodes):

President Trump has done remarkably well so far, considering the hatred, contempt, and subversion he faces from members of his own party – much less the garbage he endures from the astonishingly inept and newly Russophobic Democrats. These nimrods’ bright idea for appealing to the deplorable people we call “normal Americans” is to take the New Deal and replace the adjective with “Better.” It has yet to occur to them to try not calling us “Jesus-loving gun freak racists who aren’t afraid enough of the weather and don’t believe women can have penises too.”

But it’s bad strategy to rely upon the lameness of your opposition. Instead, the president should be focused on launching a disciplined and overwhelming attack against the establishment to force his agenda through. But he’s not doing that. He’s messing up by going off on emotional tangents, and it will catch up with him.

[…]

Spoilers follow, so stop reading if you care.

Here’s the problem. The president has some huge challenges. He has limited combat power – yeah, he has a lot, and while it is still superior to his enemies, it is not unlimited. There’s a basic military rule of thumb that you break at your own peril. You do not split a superior force.

When you split a superior force, the enemy can then move to defeat you piecemeal. A superior force nearly guarantees a win. Take the guaranteed win. Grind out the victories. Don’t split your army.

They did in a recent Game of Thrones episode. The hot girl with the dragons met with the sort-of-hot woman with the three hard-six daughters, the bi-curious pirate chick, the sassy old lady who used to be Emma Peel, and the differently-abled person of shortness, and they came up with a war plan. It was a terrible war plan. They split their vastly superior force in two instead on focusing on the castle with the hot woman who was getting it on with her brother before she became a big enough star not to have to do nudity.

Terrible plan. Naturally, the enemy destroyed their fleet because they split their forces and ditched their dragon air cover like morons. I expect the producers thought it was super progressive to have the generals be all either women-identifying women or dwarves, but then they got thoroughly beaten by a cis-vertical phallo-person of pallor.

I’m not sure that’s the girl/midgetpower message they meant to convey, but whatev. The point is that when you lose focus and try to fight every battle, you risk losing every battle. The Sessions fight wasn’t strategically necessary – hell, “winning” would mean someone even worse because there’s no way the Senate will confirm anyone as AG that Trump actually wants.

Focus. Discipline. No one enemy can compete with the president, but a bunch of enemies can. Using the superior force at hand in a cunning, targeted way can bring back the winning. But uncoordinated, quixotic, emotion-driven lashing out? No, that’s what the Democrats and the Fredocons want from the president – mostly because they know from their own bitter experience how it leads to losing.

July 27, 2017

Words & Numbers: Is Income Inequality Real?

Filed under: Economics, Politics, USA — Tags: , , , — Nicholas @ 05:00

Published on 26 Jul 2017

Income inequality has been in the news more and more, and it doesn’t look good. It’s aggravating to see people making more money than you, and we’re told all the time that income inequality is on the rise. But is it? And even if it is, is it actually a bad thing? This week on Words and Numbers, Antony Davies​ and James R. Harrigan​ talk about how income inequality plays out in the real world.

Learn more: https://fee.org/articles/is-income-inequality-real/

July 25, 2017

“‘Legal fiction’ sounds better than ‘lie’, but in this case the two terms are near synonyms”

Filed under: Government, Law, Liberty, USA — Tags: , , , , — Nicholas @ 05:00

The Instapundit Glenn Reynolds in USA Today on US Attorney General Jeff Sessions’ passion for civil asset forfeiture:

Attorney General Jeff Sessions wants to steal from you.

Oh, he doesn’t call it that. He calls it “civil forfeiture.” But what it is, is theft by law enforcement. Sessions should be ashamed. If I were president, he’d be fired.

Under “civil forfeiture,” law enforcement can take property from people under the legal fiction that the property itself is guilty of a crime. (“Legal fiction” sounds better than “lie,” but in this case the two terms are near synonyms.) It was originally sold as a tool for going after the assets of drug kingpins, but nowadays it seems to be used against a lot of ordinary Americans who just have things that law enforcement wants. It’s also a way for law enforcement agencies to maintain off-budget slush funds, thus escaping scrutiny.

As Drug Enforcement Agency agent Sean Waite told the Albuquerque Journal, “We don’t have to prove that the person is guilty. … It’s that the money is presumed to be guilty.”

“Presumed to be guilty.” Once in America, we had a presumption of innocence. But that was inconvenient to the powers that be.

As Tamara Keel said “Appointing Sessions was the opposite of ‘draining the swamp’; it was basically pumping in a whole bunch of vintage swamp water”

QotD: The republican form of government

Filed under: Government, Greece, History, Quotations, USA — Tags: , , — Nicholas @ 01:00

… it IS possible to have a Res Publica – by the people – government, but only as long as it is by the ‘deserving’ few. The worst excesses of these proto-democracies can be undercut by an extreme limiting of the franchise – preferably to an effective oligarchy of voters narrow enough to be more self-interested in keeping control against the uneducated and undisciplined rule of the genuine majority, but this is hard to achieve. The Serene Republic of Venice achieved it for almost a thousand years by limiting the franchise to the great and the good families, and the early United States managed to hold it together for about 90 years by limiting it by racial profiling as well as property franchise… but note that both were, like all the Greek and Roman republics, slave based societies: so their claims to be genuine democracies are hopelessly confused to anyone with a consistent or comprehensible ideological viewpoint. In their case ‘the people’ simply meant, the deserving few that we will allow to vote.

This limiting of the franchise to the deserving actually continues in very successful – one could even say the ONLY successful – republics of the modern world. The ancient Greek and Roman franchises were honestly based on ‘those who contribute get a say’. Contribution at that time being buying the expensive armour yourself, putting in the training time, and taking the risk in the front lines of battle: to prove you put the good of the state and your fellow citizens above your own interests. (Though it is notable that their Republics almost instantly graduated to imperialistic and aggressive expansion, which pretty quickly made republican government unworkable, and inevitably led to such champions of democracy as Alexander the Great and Julius Caesar.)

The only long term successful modern Republic – Switzerland – still has compulsory military service; as does Israel, the only successful democracy ever established in the Middle East.

The other ways to limit the franchise – Like the first (1770’s), second (1860’s) and third (1880’s) American attempts of a franchise limited by race/property; or the first (1790’s), second (1820’s) or third (1860’s) French attempts at a property-based franchise (which often saw as few as 20% of people with a vote): were actually much less successful than the equivalent slow Westminster-style expansions of the franchise under a developing constitutional monarchy. (No Western Westminster system state has ever had a coup, let alone a civil war.) France has had 5 republics, 3 monarchies and 2 emperors in less than 200 years; and the United States has similarly run through several major reformations of their race/property franchise system since their – 600,000 dead – little debate about their system.

(The American comparison with France is amusing. The first American republic was smashed by the Confederate Defection; the second was an anti-democratic imposition on the South – with no voting rights for Confederate ‘activists’ – after the Confederacy War of Independence was crushed; the third ‘republic’ was when the white southerners were re-enfranchised and promptly disenfranchised the blacks who had been the only voters in the south for the previous 20 years – and whose elected black representatives had not been allowed in the front door or the dining rooms of Congress; the fourth republic… well you get the idea. The US system, with all its defections, jumps and retreats, simply can’t be called a continuously expanding development the way Westminster systems are.)

Nigel Davies, “The ‘Arab Spring’, 1848, and the 30 Years War/s…”, rethinking history, 2015-09-19.

July 22, 2017

Civil asset forfeiture is “an unconstitutional abuse of government power”

Filed under: Government, Law, Liberty, USA — Tags: , , , , — Nicholas @ 03:00

At the Hit & Run blog, Damon Root reports on at least one US Supreme Court justice’s strong views on civil asset forfeiture:

Attorney General Jeff Sessions announced this week that the Justice Department will increase the use of civil asset forfeiture, the practice that allows law enforcement officials to seize property from persons who have been neither charged with nor convicted of any crime. “Civil asset forfeiture is a key tool,” Sessions declared. “President Trump has directed this Department of Justice to reduce crime in this country, and we will use every lawful tool that we have to do that.”

But civil asset forfeiture is not a “lawful tool.” It is an unconstitutional abuse of government power. The Fifth Amendment forbids the government from depriving any person of life, liberty, or property without due process of law. Civil asset forfeiture turns that venerable principle on its head, allowing government agents to take what they want without the bother of bringing charges, presenting clear and convincing evidence, and obtaining a conviction in a court of law. It is the antithesis of due process.

By ordering the expansion of this unconstitutional practice, Sessions has placed himself on a collision course with Supreme Court Justice Clarence Thomas. As Thomas recently explained in a statement respecting the denial of certiorari in the case of Leonard v. Texas, not only has civil asset forfeiture “led to egregious and well-chronicled abuses” by law enforcement agencies around the country, but the practice is fundamentally incompatible with the Constitution.

As I described Sessions’ attitude in a post on Gab: “Asset forfeiture now, asset forfeiture tomorrow, asset forfeiture forever!” http://minx.cc:1080/?post=370736. The victims of asset forfeiture tend not to be the druglords or property tycoons … the majority are relatively poor and the asset being taken from them is often their primary financial possession. Druglords and tycoons can easily afford high-powered lawyers … poor people whose life savings have just been seized have no recourse at all in most states. As Senator Rand Paul said: “People who are victims of civil forfeiture are often poor, African American or Hispanic, and people who can’t afford an attorney to try to get the money that’s taken from them by the government”.

Megan McArdle points out that “civil asset forfeiture is […] almost the literal embodiment of that hoary old socialist proverb: ‘Property is theft’:”

Now, this may not seem unreasonable to you. Why should criminals be allowed to keep their ill-gotten gains? And fair enough, except for one small thing: They can take your stuff without charging or convicting you.

Law enforcement agencies have often been able to keep the seized assets for their own use, which has given them a keen interest in generating new civil asset forfeiture cases. As Justice Clarence Thomas remarked, while rebuking his colleagues for failing to hear a case on this topic, “this system — where police can seize property with limited judicial oversight and retain it for their own use — has led to egregious and well-chronicled abuses.” (And indeed, abuse is rampant.)

Because of those well-chronicled abuses, the Obama administration in 2015 ended what was known as the Equitable Sharing program, which allowed local law enforcement to seize assets and then transfer them to the federal government, with the federal government passing back part of the proceeds to the local department. This proved an excellent way to get around state laws, including those intended to funnel seized assets into state coffers. The Obama administration very sensibly decided that it didn’t want to help law enforcement become a sort of freelance tax authority, and shut this practice down.

Now Sessions has revived it. “How is this conservative?” demanded an earnest liberal of my acquaintance. And all I could reply was that that is a very good question.

July 20, 2017

Words & Numbers: The Illinois Budget is a Mess

Filed under: Economics, Government, USA — Tags: , , , — Nicholas @ 05:00

Published on 19 Jul 2017

This week on Words & Numbers, Antony Davies​ and James R. Harrigan​ tackle the disaster that is the Illinois state budget crisis.

Pro-tip: Don’t let it happen to your state.

Deirdre McCloskey defines libertarianism as “Liberalism 1.0”

Filed under: Books, Liberty, Politics, USA — Tags: , , , , — Nicholas @ 04:00

The introduction to her “Manifesto for a New American Liberalism, or How to Be a Humane Libertarian” [PDF] states:

I make the case for a new and humane American “libertarianism.”

Outside the United States libertarianism is still called plain “liberalism,” as in the usage of the president of France, Emmanuel Macron, with no “neo-” about it. That’s the L-word I’ll use here. The economist Daniel Klein calls it “Liberalism 1.0,” or, channeling the old C. S. Lewis book Mere Christianity on the minimum commitments of faith (1942-44, 1952), “mere Liberalism.” David Boaz of the Cato Institute wrote a lucid guide, Libertarianism — A Primer (1997), reshaped in 2015 as The Libertarian Mind. I wish David had called it The Liberal Mind.

In desperate summary for you Americans, Liberalism 1.0 is Democratic in social policy and Republican in economic policy and non-interventionist in foreign policy. It is in fact mainly against “policy,” which has to be performed, if there is to be a policy at all, through the government’s monopoly of violence. (To confirm this experimentally, try not paying your taxes; then try to escape from prison.) Liberals 1.0 believe that having little or no policy is a good policy.

That does not put the Liberals 1.0 anywhere along the conventional one-dimensional left-right line, stretching from a compelled right-conservative policy to a compelled left-”liberal” policy. The real liberals instead sit happily up on a second dimension, the non-policy apex of a triangle, so to speak, the base of which is the conventional axis of policy by violence. We Liberals 1.0 are neither conservatives nor socialists — both of whom believe, with the legal mind, as the liberal economist and political philosopher Friedrich Hayek put it in 1960, that “order [is] … the result of the continuous attention of authority.” Both conservatives and socialists, in other words, “lack the faith in the spontaneous forces of adjustment which makes the liberal accept changes without apprehension, even though he does not know how the necessary adaptations will be brought about.”

Liberals 1.0 don’t like violence. They are friends of the voluntary market order, as against the policy-heavy feudal order or bureaucratic order or military-industrial order. They are, as Hayek declared, “the party of life, the party that favors free growth and spontaneous evolution,” against the various parties of left and right which wish “to impose [by violence] upon the world a preconceived rational pattern.”

At root, then, Liberals 1.0 believe that people should not push other people around. As Boaz says at the outset of The Libertarian Mind, “In a sense, there have always been but two political philosophies: liberty and power.” Real, humane Liberals 1.0 […] believe that people should of course help and protect other people when we can. That is, humane liberals are very far from being against poor people. Nor are they ungenerous, or lacking in pity. Nor are they strictly pacifist, willing to surrender in the face of an invasion. But they believe that in achieving such goods as charity and security the polity should not turn carelessly to violence, at home or abroad, whether for leftish or rightish purposes, whether to help the poor or to police the world. We should depend chiefly on voluntary agreements, such as exchange-tested betterment, or treaties, or civil conversation, or the gift of grace, or a majority voting constrained by civil rights for the minority.

To use a surprising word, we liberals, whether plain 1.0 or humane, rely chiefly on a much-misunderstood “rhetoric,” despised by the hard men of the seventeenth century such as Bacon and Hobbes and Spinoza, but a practice anciently fitted to a democratic society. Liberalism is deeply rhetorical, the exploration (as Aristotle said) of the available means of non-violent persuasion. For example, it’s what I’m doing for you now. For you, understand, not to you. It’s a gift, not an imposition. (You’re welcome.)

July 19, 2017

Conducting business in DC isn’t like some stagnant backwater like NYC

Filed under: Bureaucracy, Government, Humour, Politics, USA — Tags: , , , — Nicholas @ 05:00

It’s no wonder that Il Donalduce‘s squad of family members and friends are finding all the quicksand in the DC swamp — there are rules of conduct inside the Beltway that you must know and obey to get things done:

The Trump family is no doubt canny about the dog-eat-dog landscapes of the Manhattan real estate lagoon. But when the Trumps arrived in Washington, as political novices they entered an entirely new swampland, with which so far they remain unfamiliar. Their transition down the coastal corridor is sort of like leaving a Florida bog of alligators and water moccasins and thereby assuming one is de facto prepared to enter the far deadlier Amazon jungle of caimans, piranhas, and Bushmasters.

Here, then, are some Beltway Swamp rules:

1) Improper Meetings. Always meet in his/hers jets, “accidentally” nose to nose on the airport tarmac. Style mitigates unethical behavior. When caught, claim the discussions centered around “grandchildren.” In contrast, never go to any meeting with a Russian anything. If one must meet a foreign official for dubious reasons, then a revolutionary Cuban, Iranian, or Palestinian is always preferable.

[…]

3) Opposition Research. The more outlandish and impossible the charge, the more it will be believed or at least aired on CNN. Rumored sex without substantial deviancy is not necessarily compelling (e.g., urination is a force multiplier of fornication). As a general rule, ex-intelligence officers-turned-private investigators and campaign hit men are both the most lurid and least credible.

4) Leaking. Assume that those who collect intelligence also are the most likely to leak it, the FBI director not exempted. The more the deep state recalls the excesses of J. Edgar Hoover, the more it exceeds them. Expect every conversation, email, and text to show up on the desk of one’s worst enemy—at least for a few seconds before being leaked to the press. The more a journalist brags on airing a supposedly smoking-gun leak, the less the public cares. In sum, leaks are more likely to be fabrications than improperly transmitted truths.

[…]

6) The Deep State. Signing legislation into law or issuing executive orders does not equate to changes in government policy. Assume that almost any new law or reform can be nullified by cherry picking a liberal judge, serial leaking, or through bureaucratic slowdowns by careerist and partisan bureaucrats. The deep state works with those who rapidly grow the government; it seeks to destroy those who grow it slowly. The most powerful man in Washington is a federal attorney. With a D.C. jury and an unlimited budget and staff, he can bankrupt most anyone with dubious charges, on the assurance that when they are dropped or refuted, the successful defendant is ruined and broke while his failed government accuser is promoted. The more conservative the target, the more likely his lawyer should be liberal.

“The Economics of Trade” | THINK 2017

Filed under: Britain, Economics, USA — Tags: , , — Nicholas @ 04:00

Published on Jul 17, 2017

What exactly is Free Trade and is it always the best policy?

Professor Don Boudreaux of Cafe Hayek discusses the morality of capitalist exchange and its inherent advantages.

July 18, 2017

QotD: Where progressives and libertarians agree

Actually, there are four other big areas where the two ideologies converge.

1. Immigration. Immigration restrictions deprive billions of basic liberties, impoverish the world, and do so on the backs of the global poor, most of whom are non-white.

2. Occupational licensing. Licensing laws bar tens of millions of people from switching to more lucrative and socially valuable occupations, all to benefit richer insiders at the expense of poorer outsiders.

3. War, especially the War on Terror. Since 2002, the U.S. has literally spent trillions fighting the quantitatively tiny problem of terrorism by waging non-stop wars in the Middle East. We don’t know what the Middle East would have looked like if the U.S. had stayed out, but it’s hard to believe it would be worse. And there’s no end in sight.

4. The criminal justice system, especially the War on Drugs. Hundreds of thousands of non-violent people, disproportionately poor and non-white, are in prison. Why? To stop willing consumers from doing what they want with their own bodies.

These four issues are so massive, you’d expect a staunch progressive/libertarian alliance would have been forged long ago. But of course it hasn’t. Why not? Some progressives flatly disagree with one or more of these policies; see Bernie contra open borders. But the bigger stumbling block is that progressives place far lower priority on these issues than libertarians. That includes war, unless the Republicans hold the White House.

Why not? I regretfully invoke my Simplistic Theory of Left and Right. The heart of the left isn’t helping the poor, or reducing inequality, or even minority rights. The heart of the left is being anti-market. With some honorable exceptions, very few leftists are capable of being excited about deregulation of any kind. And even the leftists who do get excited about well-targeted deregulation get far more excited about stamping out the hydra-headed evils of market.

Bryan Caplan, “Progressive/Libertarian: The Alliance That Isn’t”, Library of Economics and Liberty, 2017-06-22.

July 16, 2017

QotD: The value of price controls in World War 2

Filed under: Bureaucracy, Economics, Government, History, Quotations, USA, WW2 — Tags: , , — Nicholas @ 01:00

In World War II price controls [in the United States] were administered by the Office of Price Administration (OPA). I have been present at discussions where serious attempts were made to assess the OPA’s damage to the Allied cause, measured in terms of the equivalent number of German panzer divisions. The estimates tended to be large.

Steven Landsburg, The Armchair Economist, 2012 revised edition.

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