Showing posts with label Unions. Show all posts
Showing posts with label Unions. Show all posts

27 May 2010

More NJ Gov. Chris Christie Goodness

Which is it, Ms. Wilson? Are you in it for the money or for the love of teaching?

Mind you, my usual caveat, I'm not anti-teacher, I'm anti-teachers' unions and, indeed, unions in general.



(via Hot Air)

I don't agree that teachers are paid too little.

I do agree that good teachers are paid too little. It's because we waste so much money paying all the deadbeats whose jobs are guaranteed by the sweetheart deals their unions worked out with the government.


If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

15 April 2010

The Expansion Of Executive Power

Aka, the ongoing Obama power grab:


(via Gabriel Malor @ Ace, natch)


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08 February 2010

Education: More Evidence Vouchers Work

A report released last week by School Choice Wisconsin, an advocacy group, finds that between 2003 and 2008 students in the Milwaukee Parental Choice Program had a significantly higher graduation rate than students in Milwaukee Public Schools.

"Had MPS graduation rates equalled those for MPCP students in the classes of 2003 through 2008, the number of MPS graduates would have been about 18 percent higher," writes John Robert Warren of the University of Minnesota. "That higher rate would have resulted in 3,352 more MPS graduates during the 2003-2008 years."

In 2008 the graduation rate for voucher students was 77% versus 65% for the nonvoucher students, though the latter receives $14,000 per pupil in taxpayer support, or more than double the $6,400 per pupil that voucher students receive in public funding.

The Milwaukee voucher program serves more than 21,000 children in 111 private schools, so nearly 20% more graduates mean a lot fewer kids destined for failure without the credential of a high school diploma. The finding is all the more significant because students who receive vouchers must, by law, come from low-income families, while their counterparts in public schools come from a broader range of economic backgrounds.
Expansion of vouchers and broader choice in education could literally transform this country. Students in areas with failing schools would no longer be locked into a losing future. The dynamism brought on by increased choice would bring higher graduation rates to those our current system consistently fails.

Central planners, teachers' unions, and their Democratic enablers will continue to clamor for more money for failed programs or tweaked versions of ones that have failed in the past. Vouchers and choice and increased competition in education (as in everything) would bring higher quality and lower prices and this means more children would be better educated.

Those opposed to choice in education should be ashamed.


If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

03 February 2010

Down With Public Service Unions

I wrote about these leaches a week ago. They're on the WSJ Op-Ed page radar again. And with good reason:
As we can see from the desperate economic and fiscal woes of California, New Jersey, New York and other states with dominant public unions, this has become a major problem for the U.S. economy and small-d democratic governance. It may be the single biggest problem. The agenda for American political reform needs to include the breaking of public unionism's power to capture an ever-larger share of private income.
Eventually these public service unions kill the host. See above-mentioned NY, NJ, & CA.


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21 January 2010

'Public Service Unions Are Bleeding This Country Dry'

The central battle in our time is over political primacy. It is a competition between the public sector and the private sector over who defines the work and the institutions that make a nation thrive and grow.

In 1962, President John F. Kennedy planted the seeds that grew the modern Democratic Party. That year, JFK signed executive order 10988 allowing the unionization of the federal work force. This changed everything in the American political system. Kennedy's order swung open the door for the inexorable rise of a unionized public work force in many states and cities.

This in turn led to the fantastic growth in membership of the public employee unions—The American Federation of State, County and Municipal Employees (AFSCME), the Service Employees International Union (SEIU) and the teachers' National Education Association.

They broke the public's bank. More than that, they entrenched a system of taking money from members' dues and spending it on political campaigns. Over time, this transformed the Democratic Party into a public-sector dependency.
I strongly dislike unions. They stand in the way of free trade, choice in education, and myriad other good, liberty-oriented, market-based reforms that could improve the quality of life of everyone in the world.

I do not read the history of labor unions the same way that some people do. I do not think they ever served a useful role.

Many conservatives look at American history and, based on the what they were taught about the "robber barons" by their unionized high school teacher, think that they (unions) were an important push-back against the "exploitative" kings of capitalism.

Here's what they really did: They waged often violent battles to keep other workers (ofttimes new immigrants) out of and away from doing their jobs for cheaper or better and forced their wages up, which in turn raised the costs of everything produced from, for example, steel.

Teachers' unions are to blame for the poor state of American education. Public unions are to blame for the spiraling-out-of-control budgets in states from California to New York.

And because they contribute so much to Democrat Party campaigns, they get special exceptions to rules all the rest of us have to follow.


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13 November 2009

Leftists Say We're Crazy Lunatics For Thinking The Country Is Headed In A Socialist, Freedom Reducing Direction (UPDATED)

Stone: Do you think it’s fair to send people to jail who don’t buy health insurance?

Pelosi: … The legislation is very fair in this respect.
Look, folks, there are different paths to collectivist, socialist, repressive, Orwellian states, just because the United States isn't on the exact same one as, say, the former Soviet Union, doesn't mean that what the current group of leftists (including our President) is doing isn't of a piece with what was done elsewhere to limit the freedom of individual Americans.

This is how it's done in Nanny States. 20 years ago, the social democracies of Western Europe (including the UK) didn't look like they do now. Now, per the Telegraph, new environmental regulation could result in carbon rationing cards for subjects of the crown (remember, they're not citizens).
An Environment Agency spokesman said only those with "extravagant lifestyles" would be affected by the carbon allowances.
He said: "A lot of people who cycle will get money back. It will probably only be bankers and those with extravagant lifestyles who would lose out."
However, some have criticised the move as "Orwellian" and say it will have a detrimental impact on business.
Ruth Lea, an economist from Arbuthnot Banking Group, told the Daily Mail: "This is all about control of the individual and you begin to wonder whether this is what the green agenda has always been about. It's Orwellian. This will be an enormous tax on business."
Under the Climate Change Act, Britain is obliged to cut its emissions by 80 per cent on 1990 levels by 2050. This means annual CO2 emissions per person will have to fall from about 9 tonnes to only 2 tonnes.
Do you have an "extravagant lifestyle" as defined by the Holy Church of the Environment & Mother Gaia?

Prepare to have your unrighteous behavior curbed.

My friends here in the UK don't even know to be upset about most of these things. Like a frog in a pot of water, with the temperature slowly increasing, they're lives are managed and regulated to the Nth degree and they don't even know it.

President Obama, Nancy Pelosi, and Harry Reid 2009 alone have shown their government control-loving, liberty-reducing in just the last 10 months. Card check to take away the secret ballot and sneak unionize wherever they can. Cap & trade to regulate 1/6th of the economy. Health "reform" to control another 1/5th or so. Takeover of domestic automakers. Takeover and regulation of the financial sector. Am I missing anything? I feel like I'm missing something.

The shocking thing about this is that I had no idea how wide reaching their grasp for power was until I started typing it all into this blog post.

My liberal-leftist friends are always convinced of the power of ever-greater reform and policy tweaking and technology and other knowledge advancement to bring efficiency to the inherently inefficient government bureaucracy.

But here's the thing, you cannot efficient-ize the government enough to make up for the concurrent loss of liberty.


UPDATE 14 November 6:17p BST: Ryan Decker's comment from the Facebook thread:
You could have ended the sentence thus: "you cannot efficient-ize the government." Even if the liberty/efficiency tradeoff did exist the point would be moot because government is not capable of increasing efficiency. Policymakers simply face the wrong incentives, lack the competence, and cannot process the information required to increase the efficiency of anything.

So there's no trade-off in which government policy could somehow increase efficiency at the cost of liberty. If they're taking your liberty, they're doing it inefficiently.

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12 November 2009

Want To Lower Healthcare Costs, Thereby Making Insurance More Affordable For Everyone? Try Tort Reform

Never mind that reducing medical lawsuits is a rare reform provision that really would reduce health-care costs. The Congressional Budget Office estimates the savings at $54 billion over a decade. Consulting firm Tillinghast Towers-Perrin has suggested the direct cost of medical tort litigation is more like $30 billion annually. PriceWaterhouseCoopers estimates that last year $240 billion in health expenditures were the result of doctors ordering unnecessary procedures to protect against the risk of lawsuits.
This is another one of those things President Obama said he would do & didn't. As in, he said he would introduce tort reform as one piece of his overall healthcare reform, but the legislation leaving the House includes, per the article above, a proviso that will actually undermine existing state tort law.

I get it. I really do. Obama and his Democrat friends are just paying back one of their biggest campaign cash cows--trial lawyers.

Kind of like with Card Check and the Unions.

And cap & trade and the Climate-Industrial Complex.

And I don't even really blame my friends in the legal profession who are opposed to tort reform. I understand that by opposing any check on their ability to litigate, they are only acting in their self interest.

Don't blame Obama, Democrats, & trial lawyers, blame the system.


If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

09 June 2009

London Underground Union Will Strike Is Striking, Believes People Are Sympathetic To Their Cause

Yeah, all those people who rely on the Tube for travel are really going to sympathize with union workers demanding increased pay, etc.


I despise unions and am especially disgusted with them when their outsized sense of entitlement causes major disruptions to normal day-to-day activities like public transport in a city. In London, Tube workers are generally acknowledged to have cushy jobs with great pay. Do they really believe that a city with 10.4% unemployment is going to sympathize with their demands for increased pay, more days off, etc.?

Ridiculous.


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04 June 2009

Milwaukee School Vouchers: Democrat Party Kowtows To Another Special Interest

I know lots of teachers. Many of my friends are teachers. They know I am a friend to good teachers everywhere.

I am also, however, an enemy of unions generally and teachers' unions specifically. Their goal is not the improvement of education, but the guarantee of employment and ever-increasing pay and benefits for all teachers, regardless of performance. Additionally, these folks see their union positions as opportunity to exert political influence.

Brendan Miniter called school choice "the new Civil Rights struggle." Indeed, it is. Given the disintegration of low-income families--especially minority families--school choice and the opportunities a good education affords may be the best chance many of these children have.

Democrats and teachers' unions want to kill every voucher, scholarship, school choice program they can. They already did away with the one in Washington DC--a program that helped thousands of low-income students avoid failing schools. Milwaukee's wildly successful voucher program is next on their list.
At the National Press Club last week, Secretary of Education Arne Duncan said that he opposed school choice: “Let me explain why. Vouchers usually serve 1 to 2 percent of the children in a community. . . . But I don’t want to save 1 or 2 percent of children and let 98, 99 percent down.” It was a bizarre statement: Why not simply let more than 1 or 2 percent enjoy the benefits of school choice? In Milwaukee, they actually do. It’s the largest urban school-choice program in the country, dwarfing the size of the one in Washington, D.C., whose de-funding by congressional Democrats has drawn so much criticism. Roughly one in five of Milwaukee’s school-age children receive vouchers. All of them must fall below an income threshold. Researchers say that the program is beginning to show systemic effects. In other words, it doesn’t merely help its participants. It also gives a lift to non-voucher students because the pressure of competition has forced public schools to improve.
The principle is choice--liberty, really--applied to education. When I speak to union-enthusiast teaching friends of mine, they talk endlessly about some new initiative or program that will make public education better.

The point of adding choice and competition to education is that these things will introduce the flexibility and incentive into education that will empower teachers and administrators and parents and students to find the education that best suits them.

One-size-fits-all public education doesn't achieve the egalitarian utopia in which its adherents believe, it holds the smart kids back and leaves those who need extra or specialized attention behind.

If the Democrat party really were, as it says, "for the children," it would resist the influence of campaign contributions from teachers' unions and wholeheartedly endorse choice in education.


If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

01 June 2009

'Phase 1: Elect Barack Obama; Phase 2: ?; Phase 3: Utopia!'


This column is nearly a week old, but it's pretty timeless in the sense that Stephens applies the South Park Gnomes formula to the Obama administration. Or rather, he shows how the Obama administration is applying the South Park Gnome formula to everything they do.

"What," you're asking yourself, "is the South Park Gnomes formula?" Stephens explains:
Consider the 1998 "Gnomes" episode -- possibly surpassing Milton Friedman's "Free to Choose" as the classic defense of capitalism -- in which the children of South Park, Colo., get a lesson in how not to run an enterprise from mysterious little men who go about stealing undergarments from the unsuspecting and collecting them in a huge underground storehouse.

What's the big idea? The gnomes explain:

"Phase One: Collect underpants.

"Phase Two: ?

"Phase Three: Profit."

Lest you think there's a step missing here, that's the whole point. ("What about Phase Two?" asks one of the kids. "Well," answers a gnome, "Phase Three is profits!")
"Profits!" Seems a bit like Obama's GM & Chrysler plans, no? Can't you just feel the money rolling in?

Sorry, my mistake. That sensation you feel is your tax money going to pay back Obama's "grassroots" fundraising/election juggxrnaught, er, the UAW.


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20 May 2009

Your Colon & You: An Harbinger Of Things To Come (UPDATED)

At issue are "virtual colonoscopies," or CT scans of the abdomen. Colon cancer is the second leading cause of U.S. cancer death but one of the most preventable. Found early, the cure rate is 93%, but only 8% at later stages. Virtual colonoscopies are likely to boost screenings because they are quicker, more comfortable and significantly cheaper than the standard "optical" procedure, which involves anesthesia and threading an endoscope through the lower intestine.

Virtual colonoscopies are endorsed by the American Cancer Society and covered by a growing number of private insurers including Cigna and UnitedHealthcare. The problem for Medicare is that if cancerous lesions are found using a scan, then patients must follow up with a traditional colonoscopy anyway. Costs would be lower if everyone simply took the invasive route, where doctors can remove polyps on the spot. As Medicare noted in its ruling, "If there is a relatively high referral rate [for traditional colonoscopy], the utility of an intermediate test such as CT colonography is limited." In other words, duplication would be too pricey.

This is precisely the sort of complexity that the Democrats would prefer to ignore as they try to restructure health care. Led by budget chief Peter Orszag, the White House believes that comparative effectiveness research, which examines clinical evidence to determine what "works best," will let them cut wasteful or ineffective treatments and thus contain health spending.

The problem is that what "works best" isn't the same for everyone. While not painless or risk free, virtual colonoscopy might be better for some patients -- especially among seniors who are infirm or because the presence of other diseases puts them at risk for complications. Ideally doctors would decide with their patients. But Medicare instead made the hard-and-fast choice that it was cheaper to cut it off for all beneficiaries. If some patients are worse off, well, too bad.

[...] Washington's utilitarian judgments about costs would reshape the practice of medicine.
The debate about health care isn't simply one about costs. This is not about providing "health care" to all Americans the cheapest way possible. One could hand out vitamins to all Americans very cheaply and call this "universal coverage." Congratulations.

This is also a debate about liberty--having control over the type & quality of health care one receives.

All of the efficiency gains the social scientists say we'd get from universal health care rely on rationing. Thus, if costs spin out of control, the central planners (all more intelligent and enlightened than you and me) decide which procedures, medicines, and people to cut out. They may not limit your coverage to vitamins, but you better hope you are on the ObamaCare-most-favored list.

[One group guaranteed to be on the official, funded-procedure list (though if they could speak, they'd probably opt out): The unborn.]

But even their decisions won't be pure and untainted by the touch of the lobbyist. Just like the bank and auto bailouts, those who are close to the Obama administration will be favored. In this decision making process, the most important factors will be, "how much can you donate to the campaign? How many people (unions) can you turn out to vote?"

This is what happens when government takes control of your life.

(thanks to Scott L. for the tip)

UPDATE 3:18pm BST: An alternative & the essential decision facing Americans:
Who will control the system? Doctors and patients, or politicians and regulators? That's the crux of this year's health-care debate.

If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

20 March 2009

Unions & The Europeanization of America

In addition to the usual cast of people who want America to turn into Europe--President Obama, unions, leftists--add people whose only familiarity with the continent is time spent on the back row of America's poly sci classes.

This is the group of people who have been persuaded Europe's arguments against "income inequality" and universal everything for everyone. What they don't seem to understand is that Europe's welfare state is both unsustainable and not a true equalizer.

The demographics of Europe are such that the only way to fund at current levels would be massive inflows of new, young immigrants--and tax increases on everyone.

But even then, the Euro-model is about appeasing the underclasses--give them enough free things and hope their riots stay in their part of the city--and not breaking down the structural barriers that prevent American-style movement from one income bracket to the next. If you are poor in Europe (while not nearly as helpless as, say, Africa), the chances of you enjoying a lift-yourself-up-by-your-bootstraps success story is very slim.

In America, 1st generation immigrants take what might seem to us to be bad jobs and more importantly, they send their kids to school. Armed with at least a high school diploma (not all, but far more than their parents generation), they get better jobs. Some of them attend college and do even better.

As in education where teachers' unions are students' worst enemies, such is the case with workers. In the WSJ op-ed that inspired this post, the best worst examples of the deleterious effects of unions are the auto & steel industries.
In the last session of Congress, Democrats tried to: Raise the notice period required for certain layoffs at private companies to 90 days, extend health benefits for laid-off workers for up to a decade, and increase penalties for noncompliance (the expanded WARN Act); reclassify certain managers as employees who can be unionized, forcibly in non-right-to-work states (the Respect Act); facilitate class action suits for alleged gender-based pay discrimination (Paycheck Fairness Act); and much more. None passed, but now they might.

In the Obama revolution, unions are the vanguard force. Contrary to promises of moderation, the Administration has so far sided firmly with the union left. On the day after the Inauguration, the Department of Labor stopped the implementation of new union financial disclosure rules that provide greater transparency about union finances. A fortnight on the job, President Obama issued four executive orders, on federal contracting and political spending, demanded by Big Labor. Mr. Obama this month endorsed card check and vowed that it "will pass."

In case you think it can't happen here, well, it can.

Fortunately, I think people are starting to understand this--some got it all along. Branden B. sent me an email that sums up the frustration many have with the current administration.
If you read the top 5-10 opinion pieces on today's WSJ website you will realize that the leadership in our government right now SUCKS. I can't capitalize that word enough. It is unbelievable. Why could we not elect a group of real men to lead this country and not a bunch of slimy, spineless, uneducated losers that seem to occupy every power wielding position within our government? It is just unbelievable. Who were the people that decided that Frank, Pelosi, and Dodd had the capacity to do anything? I would not trust them to clean my house. I am just beside myself with this whole mess. I mean these people seem to be hell-bent on running the most successful economy of all time into the ground. Please tell me. How is it not obvious to EVERYONE right now that all of these people are incompetent and doing the exact opposite of anything that would make sense. It is hard to believe that the Dow is above 4K. How is it not obvious to again EVERYONE that Obama and Co. have not done a single thing that would be beneficial to our economy. I mean if you asked economists what would be the top ten things you could do to ruin the economy Obama has done 1-8 and is actively trying to cross off 9 and 10 (protectionism and strengthen unions).
It's gotten so bad, even the NYT is writing op-eds (I'm loathe to link them, but oh well) urging the President to avoid the protectionist elements of his party. And the Unions are going to keep fighting.

Prepare yourselves, it's going to get ugly.


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09 March 2009

Cramer, Obama, Liberals, &c.

Ever since I first noticed the phenomenon, I've looked for the right opportunity to put it into practice. What might it be, you ask? Why, quoting myself, of course.

It was prompted by an email I received from Matt P. Given that I hadn't heard from him in awhile, I jumped at the chance.

Matt wrote:
So low taxes are good in bad economic times so people can get rich, but when the economy is good we can soak the rich and damn the poor? I can't understand how he can't see the fault in his logic. Even when he's right, he's still wrong.

From his post yesterday:

"To be totally out of the closet, I actually embrace every part of Obama's agenda, right down to the increase on personal taxes and the mortgage deduction. I am a fierce environmentalist who has donated multiple acres to the state of New Jersey to keep forever wild. I believe in cap and trade. I favor playing hardball with drug companies that hold up the U.S. government with me-too products.

"... I believe his agenda is crushing nest eggs around the nation in loud ways, like the decline in the averages, and in soft but dangerous ways, like in the annuities that can't be paid and the insurance benefits that will be challenging to deliver on.

"So I will fight the fight against that agenda. I will stand up for what I believe and for what I have always believed: Every person has a right to be rich in this country and I want to help them get there. And when they get there, if times are good, we can have them give back or pay higher taxes. Until they get there, I don't want them shackled or scared or paralyzed. That's what I see now."


I'm all for "giving back," but shouldn't that be my choice?
To which I responded as follows:
Cramer is a liberal Democrat & an idiot [ed. note: but I repeated myself]. I guess, from him, we should be glad when he criticizes Obama at all, as he has done recently.

Obviously, I am in wholehearted agreement with what you say.

To liberals, your money is not really your money. It's the money you got by exploiting people, probably, and you don't deserve it. Plus, they know how to use it better than you do. It's all about power & control--that's the conservative vs. liberal argument at it's core:

Conservatives want everyone to have as much control over their lives as possible. They understand that some people are going to screw up, and that sucks, but that most people will do best whatever makes them happy.

Liberals want to control everyone's lives in every possible way because they think they know how to make everyone equally happy, or, as happens to be the case back in a little place I like to call reality, they know how to make everyone's life suck equally (except, of course, for the American version of the Politburo and their friends who get the green dacha's* in the countryside.)
This is the new reality: In a country where market forces aren't left to themselves to pick winners and losers; in a country where trillion dollar budgets and spenduli are used to shower billions of dollars on campaign supporters (read: ACORN, Unions, etc.); in a country where government picks the winners and the losers, you better hope that, at the very least, you aren't on Obama's naughty list.


*In Soviet Russia, supposedly everyone had access to homes in the countryside surrounding Moscow & other Russian cities. In reality, the only ones who stayed there, ate black market food, owned cars that ran, took hot showers, etc., etc. were the leading Communist party members & their friends.


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11 February 2009

Bi-Partisanship Is Overrated

Early Monday morning I finished Dickens' Great Expectations. I was interested to see that he used the term "overrated."

Apparently it's a term that's been percolating for longer than Barack Obama's political career.

My bad.

Today I received an email from Matt P. I hadn't heard from Matt P. for a long time so I was glad to read what he had to say about the Spendulous bill currently being considered in House/Senate conference.

Here's Matt P.:
Your most recent blog post mentioning our new "post-partisan" era made me think of an email I received from my quite liber... err... very liberal uncle recently. He asked "Why... is the majority party permitting the bankrupt policies of the elephant party to dominate so much of the discussion surrounding the stimulus package? They don't seem to value bipartisanship, why should the Democrats?"

To me the answer is quite clear, even when accepting the premise that Democrats are not partisan and that the minority party had a huge say in anything that happened with this stymie-ulus bill. My answer, in part:

"From a purely political standpoint, if this can be portrayed as a bipartisan effort, it can be claimed as such, which would drastically reduce the overall risks of such a bill failing while maintaining the positive political upside if it were to succeed. "If we hadn't reached out the Republicans, this wouldn't have failed." Or, "If we had reached out [to] the Republicans more, this stimulus would not have been as effective."

From an ideological standpoint, I don't think that either party should place such high value [on] bipartisanship as it's much over-hyped in its importance. If you truly believe in something, you should make every reasonable effort to bring it about, especially on something as important as this. It's about making sure that the application of principle does not pull you away from that core belief. If you believe that this is our economic armageddon and the only way to avoid that is to either borrow the money or make nearly a trillion dollars out of thin air, then bipartisanship is a non-issue."

That being said, I can't stand this thing for a host of reasons, but I don't have the time to go into that.
The Spendulous was always going to pass. Regardless of its particular impact if/when it comes to pass, the economy will, eventually, recover. Democrats can then claim (in a partisan, rather than post-partisan or bi-partisan way) to have effected the recovery by passing out free condoms and building dog parks and whatnot.

They just have to hope that things are looking better in 2010. Sure, they will still be able to blame Bush, but they will be less able to. Additionally, you should not conflate Obama's popularity (now off its historic high) with the Democratic Congress'. Throughout this process, Obama has cleverly positioned himself to be able to cast off the Democratic detritas (read: Reid & Pelosi).

If something bad happens, it's because they didn't pass the bill he wanted. He'll say, 'I signed it because it was the best I could expect from those idiots.'

Incidentally, I wouldn't disagree with his characterization of Pelosi & Reid.

2012 will roll around and by then all the money he will have paid out to unions and ACORN will have filled their ranks with the real-employment-averse, but Obama-politically active, recent college graduates. This modern-day force of Obama brown-shirts will then, by hook or crook, get their man elected, again. Folks, his election team is working in the off-season.

The Spendulous is about fulfilling every liberal's spending dream of utopia and of creating a perpetual Obama machine.

It's like the water cycle we learned about back in elementary school: Vote Democrat, Democrats pass trillion dollar bill with billions of dollars for unions and "community re-organizing" groups who then contribute money and manpower to re-elect their Democratic patrons.

To paraphrase Margaret Thatcher, the problem with this cycle is that eventually you run out of other people's money to spend.


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07 November 2008

Bi-Lateral Free Trade Agreement Follow-Up

I don't think there's any doubt that Rahm Emmanuel aka "Ari Gold" is a partisan Democrat--he just happens to be one of the few partisan Democrats willing to buck the influence of unions and promote free trade. That doesn't give him a pass, but it does give him the benefit of the doubt on an issue that is a big deal to me: Free Trade.

A bunch of you emailed me in response to Dan K.'s comments and I appreciate the emails. They've been very illuminating. I'll post a couple of them below but can't post everything you've collectively sent. Don't be mad if yours doesn't get posted, it's because many of you wrote very similar comments.

Ryan D.*
I liked Dan K's comment about FTAs and how they can undermine global efforts.

A note should be made, however: many realists argue that FTAs are better for America because in bilateral agreements, the big country can push the little country for better terms. In other words, lately a lot of big countries have been seeking bilateral or small regional agreements simply because they can get favorable terms.

So to true economic liberals, as Dan K appears to be, FTAs are often perceived as a problem. But for foreign policy realists, FTAs may make more sense.
And Branden B.
Dan is right on bi-lateral FTA's. That may seem obvious given his credentials, but we both know that there are a lot of nuts out there with great credentials. I forget how all the math works, but I remember solving the bi-lateral fta models in Econ 257 and being surprised. His position is absolutely correct. Strong support for all-inclusive trade agreements (Doha, WTO) and opposition to bi-laterals. The bi-laterals might have a few political benefits so they are not altogether detestable, but for a free trader like yourself they are not what you are looking for.
I have just a couple of points to make in response. I don't necessarily disagree, I just think there may be more things to add to the equation.

In the case of the United States, the ag lobby is powerful (I know firsthand) and has been effective at maintaining the various price supports in place. This lobby probably explains, in part, some of the difficulties the US has had at the WTO generally and with Doha in particular.

However, according to my reading of the various Doha reports, the US seemed fairly reasonable willing to compromise. Lacking movement there, it's understandable that they would move to bi-lateral agreements where, as Branden B. and Ryan D. noted above, they could effectively out negotiate the little guy.

To the extent that these types of agreements hinder accomplishing a comprehensive FTA that moves us closer to global efficiency, that's a problem, obviously. But, as both Ryan D. and Branden B. and even Dan K. noted, there are 'political benefits' to be had from these bi-lateral agreements.

In the case of Colombia, there are economic benefits in the tens of billions of dollars in increased, free flowing trade. And we ought not dismiss the strategic benefits of bolstering our relationship with a key ally--especially when that ally is on the frontline of the fight against the drug trade and a help in countering an increasingly belligerent Chavez-ruled Venezuela.

On South Korea, I'm not quite as clear on the details. But Dan K. has spent a number of years examining the many factors at play there, so I'll gladly defer to him. I think it's fair to say that the argument could be made for bolstering a key ally in that region as well--especially if an agreement with South Korea is just a precursor to a multi-lateral Pacific Rim FTA I've heard about.

All of this brings me back to Nafta. Where does that, tri-lateral, agreement fit into the overall discussion of free trade. Everything I've read suggests that it is an unmitigated success. Has it, too, been damaging to efforts to adopt a world-wide FTA? I don't know.

Clearly, political reality plays a role in every one of these scenarios. I've said many times that if I had ultimate power, one of the first things I would do would be to eliminate barriers to trade worldwide--that I think it is the single act that could to the most good for the most people.

But I'm also not so naive that I would make the perfect enemy of the good. That may be what we're looking at with these bi-lateral FTAs, but I don't know. I'm open to persuasion on this point.

Let's bring this home, again: Dan K. chided me about Obama's anti-Nafta primary rhetoric. I hope he's right. I hope it was just that--rhetoric--and not a commitment to actually seek an massive re-write of the agreement. He has, as Dan K. & Ryan D. have said, surrounded himself with people who support free trade. But as both of you know, that's no guarantee.

Indeed, Democrats willingness (and narrow defeat in this Congress) to pass "card check" legislation, effectively destroying secret ballot unionization, signals a disturbing amount of willingness to bend to the demands of their union supporters. No less a leftist than George McGovern (George McGovern!) opposed this legislation.

Let me put it this way: If Obama is willing to go along with that type of legislation, I don't think free trade is the sacred cow many of you believe. Even if he does, initially, protect Nafta and support free trade, resurgent unions in the US, as a result of this new legislation, would have even more clout than they do today and could exert significant pressure on The One.

It might take one of his much hoped for miracles to resist them.


*Ryan D. blogs at Pendulum Politics.


If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

06 November 2008

Obama Selects Ari Gold As White House COS

He's name had been floated for awhile, but yesterday it became official as President elect Barack Obama selected Rahm Emmanuel as his chief-of-staff. Reader Morgan H. weighs in:
Looks like Obama picked Ari Emmanuel's brother to be his Chief of Staff. In case you didn't know, Ari Emmanuel is the founder of Endeavor, a well known agency here in LA. Ari Emmanuel reps Marky Mark among others Ari/Endeavor is who and what Ari Gold and his agency on Entourage is/are rumored to be based on. I can't imagine what Yom Kippur gatherings must be like in that family. Especially if they play a "friendly" game of Monopoly or Acqui[re].
Now, imagine Ari Gold running the White House. Good times.

Honestly though, according to a bio of the Emmanuel brothers from the NYT that my brother, Matt L., dug up, Rahm comes across as a pragmatic centrist. His signature piece of policy whatever was helping push through Nafta.

As a free-tradist, this bit-o-news is encouraging. However, and conversely speaking, if he is more pragmatist than centrist (they are not the same thing), he may be ideally suited to unilaterally re-negotatiating Nafta per Obama's twice stated campaign promise.

It doesn't help that Democrats in Congress have experienced a bit of a 'back-to-the-future' of their own and have opposed free trade agreements with Colombia & South Korea. Additionally, their desire to eliminate unionizing by secret ballot indicates an altogether higher level of pandering to their Union donors--the likes of which hasn't been seen around DC since unions actually mattered. You know, back in like 1980something.

This is one of my Big Problems with the Democrat Party--their complete ignorance of the economic gains to be had from free trade. Alternatively, maybe they're not ignorant about the gains to be had an are just flat out selling their principles to the unions. Clearly, the latter optino is worse. I'll give them the benefit of the doubt and assume they just don't know any better.

I do not buy the "better labor & environmental regulations" argument as their reasoning for opposing free trade. I think it's a smoke screen of a type with the anti-genetically modified foods posture taken by the Europeans. They're both crap reasons.

Let's bring this back to where we started: I hope Obama's choice of Rahm Emmanuel signals two things: Love for free trade and a pro-Israel foreign policy stance.


If you have tips, questions, comments or suggestions, email me at lybberty@gmail.com.

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