Union Pay Backs Affect Us All

By Thomas C. Patterson

Most of the attention of our nation’s business entities is focused on attempts to win government favors.  That’s typical of political economies sliding into corruption mode.

America’s unions have been a big winner of the competition. They poured hundreds of millions of dollars into Democratic campaigns.  Their bet paid off when Democrats swept the presidency and both houses of Congress. Not only that, ole’ Scranton Joe is a longtime friend.

So White House favors have flowed in a torrent. For example, a new law mandates union labor on virtually all federal projects, automatically adding 20 to 30% to the cost.

There is also a provision making union dues tax-deductible, another huge union subsidy.

The Green New Deal is union-friendly. A $4500 tax credit is available for electric vehicles only if the car is union made. The $14,500 tax credit for homeowner energy-saving devices also requires the work be done by union members.

Worst of all, the “jobs bill“ would abolish the 26 state right-to-work laws. Tens of millions of workers would be forced to pay union dues and support union political causes.

There are legitimate reasons why workers may decline to join a union. The benefits of membership may not be worth the dues. They may not support the union’s political views.

Especially ambitious or capable workers may not want to be bound by union work rules, promotion, and salary schedules, typically designed to protect the weakest performers. Moreover, many workers are repulsed by the 2,100 documented cases of union corruption, including embezzlement, racketeering, and inflated salaries.

But it’s no secret that mandatory membership would massively increase union rolls and coffers. Joe Biden may have lied about a few things here and there, but his vow to have “the most pro-union administration in history” meant business.

But if the unions are experiencing a bonanza, how about the rest of us? After all, only 6.3% of private sector workers are union members (about half of government workers are unionized). How do the other 93.7%, and those of us not considered “workers“, fare?

Not that well. You may have heard of the supply chain shortage and the massive backup at our ports. You’ve seen prices rise and empty shelves starting to appear.

In response, President Biden recently announce a “gamechanger”, ordering more hours for the ports. Union work rules regarding off-hours pay make the option a significant burden for the port operators. But it would increase cargo movement by less than 10%, hardly solving the problem.

The dysfunction in America’s ports isn’t news. The World Bank rates LA and Long Beach 328 and 333 worldwide for speed and efficiency. Not one US port was in the top 50.

Here’s the reason. Our ports lack modern technology. Automated cranes and other laborsaving devices operate worldwide over twice as fast as our outdated equipment.

But unions demand obsolescence to preserve make-work jobs. The International Longshoremen’s Association has a contract blocking the use of automated cargo handling equipment.

Biden could take action, but he won’t.  His Build Back Better bill specially prohibits using any funds for automation.

Government unions, because they needn’t worry about any economic impact on their employer, are even more abusive of the public trust. The main reward for teachers’ union loyalty has been the party’s staunch, enduring opposition to school choice.

School choice for underprivileged children is rightly considered the civil rights issue of our time. Many leading Democrats, like the Obamas, Clintons, and Kennedys send their own children to desirable schools but deny the same privilege to millions of children who will be economically handicapped for life by the school they attend.

The teachers’ unions displayed their impressive clout again during the recent pandemic. Long after research data had thoroughly discredited the wisdom, (children were essentially COVID-19 proof), they selfishly kept schools closed.  The education fallout is proving to be catastrophic.

Unions historically have played a role in improving the plight of workers. Private sector unions particularly deserve the right to exist, to organize, and to be treated fairly.  But when the scales are tipped to afford them political benefits not enjoyed by other Americans, we all get hit.

*****

Thomas C. Patterson, MD is a retired Emergency Medicine physician, Arizona state Senator and Arizona Senate Majority Leader in the ’90s. He is a former Chairman, Goldwater Institute

Biden Plan Puts Medicare Part D in Peril

By David Almasi

With liberal lawmakers coveting an expansion of government control over Americans’ health care, their efforts risk “taking programs that work well and mangling them in the name of ‘reform.’”

In a commentary published by Missouri’s Springfield News-Leader, Project 21 Co-Chairman Stacy Washington – a resident of the St. Louis metro area – writes about how efforts to mess with the free market, contained in Joe Biden’s $ 3.5 trillion spending plan, could compromise seniors’ Medicare Part D prescription drug benefits:

To be sure, they imbue their actions with good intentions. By enabling the government to set drug prices in Medicare, they claim they’ll save seniors money at the pharmacy.

But they’re wrong. Insurers already drive a hard bargain with drug companies. Replacing these negotiations with government-directed price controls will, if anything, pad the Treasury Department’s balance sheet at the expense of limiting seniors’ access to life-saving treatments today and curtailing the development of new medicines tomorrow…

A pillar of this legislation is the “non-interference clause,” which prevents the government from involvement in negotiations between Part D insurers and drug companies. This clause exists so bureaucrats won’t get to decide which drugs Medicare can cover and to ensure that Part D insurers and drug companies will offer as many medication choices as possible.

But this clause – and the benefit – are imperiled by the Biden Administration’s plan to fundamentally transform America:

If they repeal the non-interference clause, the government would be able to set drug prices. This might sound appealing, but in practice, it’d be extremely difficult for Medicare negotiators to get better prices than private Part D plan insurers unless they’re willing to ration access to the most expensive drugs. With less revenue coming in, research companies would have less money to invest in the scientific exploration that brings new medicines to market.

Even worse? The savings the government would yield for itself through price controls wouldn’t even go to patients. Lawmakers plan to take that money and redirect it to a host of new spending programs. In short, the proposed change to Medicare is designed to pay for more wind farms.

As for what the conservative resistance in Congress can do, she advises: “By saving the non-interference clause, they’ll protect a program that helps vulnerable seniors.”

*****

This article was published on October 27, 2021, and reproduced with permission from The National Center for Public Policy Research.

Europe’s Real Energy Wake-Up Call

By Michael Fumento

No, the answer is not fossil fuels; it’s nuclear.

Energy Crisis Is a ‘Wake Up Call’ For Europe to Ditch Fossil Fuels,” declares CNN. That rather sounds like fossil fuels are becoming scarce there, which they’re not. Besides, the U.S. alone could ship enough coal to tide Europe over for at least a few centuries—including to Newcastle.

The crisis that has European energy prices soaring, such that the green-conscious Euros are eyeing coal, has two bases: A move away from fossil fuels to comply with global climate change accords and a concurrent shift away from nuclear energy.

In trying to meet its Paris Treaty obligations, Europe has tremendously reduced fossil fuel extraction capacity. Add the economic bounce-back from the Covid lockdowns, plus such factors as low Norwegian hydroelectric reservoirs and opportunistic Russian gas manipulation, and Europe is left scrambling for energy, including burning more coal and petroleum and paying as much as five times for natural gas as last year, while U.S. prices are about double.

The fact is, Europe could have been at zero emissions for electricity and heating long ago. (Though note these are just part of overall so-called “greenhouse gas emissions”; globally one quarter.) We know from the French experience. After the oil shocks of the 1970s, France went on a massive nuclear plant building spree such that it was getting practically all its electricity from nukes or other non-fossil sources like hydroelectric. Sacré bleu, it was even exporting to other countries!

Germany was heading in that direction, with 36 nuclear plants providing almost a third of the nation’s electricity. Not surprisingly, knowing German technological skill, that included the world’s most productive plant. Overall demand hasn’t risen much since then, so, given other carbon-free sources such as hydroelectric and geothermal, it’s entirely conceivable that fossil-fuel fired plants could have been completely replaced. Then, like France, Germany could have become a net electricity exporter.

The country’s position would have been all the better when you consider the example of U.S. nuclear plants, which have progressively produced more power, almost a doubling through what is called “nameplate capacity factor.” Capacity factors for U.S. nuclear power plants are currently 92.5 percent, compared to only 55.9 percent in 1975, enabling generating costs to drop about a third just since 2012. That capacity factor also leaves every other form of energy in the dust with coal at 40.2 percent, wind at 35.4 percent, and solar voltaic at just 24.9 percent.

But rather than being Deutschland uber alles, the country’s powerful green movement convinced now-outgoing Chancellor Angela Merkel not just to stop building new plants but to start shuttering those in operation. Anti-nuclear activists followed a now common script. They first exploited the 1986 Chernobyl disaster, with its perhaps 50 people quickly killed (almost all first responders) and then maybe 4,000 more dying over time from lower-dose radiation exposure according to a U.N. report. Never mind that comparing a Soviet nuke plant to a German one is like comparing a smoky 2-stroke East German-era Trabant to a new Porsche.

Thence to the Fukushima, Japan, disaster in 2011. An incredible 9.0 offshore earthquake (one of the five largest ever recorded) led to a massive tsunami. It swept over whole towns (the videos are horrifying), including the world’s largest seawall, and into coastal nuclear facilities. This caused meltdowns at three reactors because instead of having a passive shutdown system the “Generation-II” Japanese plants relied on an active system of emergency diesel generators erroneously located at a lower elevation than the reactor buildings. That knocked them out and also made proper heat dissipation impossible. Even still, while over 19,000 people died or disappeared in the quake and tsunami, so far only one death has been attributed to radiation leakage.

But never mind that Germany ranks quite low in seismic activity and doesn’t get a lot of tsunamis. Teutonic troublemakers saw their opening and Merkel, despite her physics degree, completely caved and ordered a nuclear phase-out. Now all German plants but six have been shuttered and those are scheduled to shut down next year even though they still provide a vital 10 percent of the nation’s electricity.

Instead about a fourth of Germany’s home-grown electricity comes from coal, the overwhelming majority being the dirtiest variety, brown lignite. Rather than exporting clean electricity, it exports dirty coal. Rather than being an energy exporter, it relies heavily on imports—mostly Russian.

Germany likes to boast of its high “renewable energy” use. But since it imports so much energy, what does it matter what it produces domestically anyway? As it happens, it’s the biggest emitter of greenhouse gases in Europe—though in fairness, that’s as a country, not per capita. Its electricity prices including taxes are the highest in the world. It’s just not a sunny country, especially in the north, thus their solar farms make no sense. (I once spent three weeks there in summer with virtually no sunshine.)

Germans also pay over twice what Americans do per unit of heating gas, in part because, like Europe generally, they are so heavily dependent on Russian gas imports that in turn keep Putin and his klepto-cronies in office. If Germany had kept its nuclear fleet running while still building renewable generation, it would be burning 25 percent less gas and a third less coal for electricity according to a 2019 National Bureau of Economic Research paper.

As for the U.S., it has steadily decreased greenhouse gas emissions as a country and per capita essentially by switching to cheaper natural gas from coal. But it, too, is shuttering nukes, albeit slowly and not by fiat, but rather responding to ever-stricter safety demands that make even upgrading an existing plant more expensive than building a new natural gas plant.

France built most of its nuclear capacity in just seven years, and it actually takes only about five years to build a nuclear plant. Further, new plants would be using modern designs. Bill Gates, a major nuclear power booster, notes that almost all plants currently operating were designed with a slide rule. The 3G+ Westinghouse AP1000, computer-designed, shuts down passively without need for operators, generators, or pumps. China has had four in operation for almost a decade, while the Georgia nuclear facility scheduled to come online soon uses two such reactors. Given enough engineers and construction workers with the proper skills, Europe could do in seven years what France did, plus Germany could keep its own plants online.

Yes, upfront nuclear plant costs are quite expensive, in part because of the massive layers of safety features required. The U.S. Department of Energy data that so many rely on to compare energy costs load the dice against nuclear and towards wind by using what it calls “levelized costs” that represent the per-kilowatt-hour cost of financing, building, operating, and maintaining an electricity generation plant over its assumed financial life. But that life is an arbitrary 30 years, which is considerably longer than wind farms are projected to last (20 to 25 years according to the industry, meaning 20 at best) and vastly shorter than nuclear plants last.

Like European cathedrals, a nuclear plant can last forever. One in New York has been in operation since 1969, and the first nuclear aircraft carrier, USS Enterprise, used the same reactors from when it entered service in 1960 until it was retired in 2012. So, 20 years is stretched to 30 with wind and 52 or more is shrunk to 30 with nuclear. Hardly fair. For operating costs, nuclear is much cheaper than fossil-fuel fired plants or so-called “renewable energy,” meaning biomass, wind, and solar. Further, nuclear plants’ land needs dwarf those of wind and solar facilities, which in addition to the availability of wind and sun can greatly limit where they can be located.

Regardless of whether you buy into what many consider the cult of global climate change, nuclear remains the way to go. As Charles Frank of the Brookings Institution has found, ranking the various forms of energy generation in terms of CO2 displacement: Nuclear energy replaces almost six times the emissions of solar energy, four times that of wind, twice that of hydroelectric energy, and five times that of low-carbon gas.

*****

This article was published on October 26, 2021, and is reproduced with permission from The American Conservative.

Don’t Trick Yourself into Buying from These Companies This Halloween

By 2ndvote .com

Last week, we urged you to treat yourself with Halloween necessities from H-E-B, Great Pretenders, and Spirit Halloween. These are companies which put you over politics. If you missed it, here’s the link for you to read!

Today, we’ll be asking you to say “Boo” to three companies which put politics over customers. These are companies which rank poorly on 2ndVote’s 1-5 scale for their donations and company policies.

  • Kroger (1.70) is the parent company to grocery store chains like its own name brand, Harris-Teeter, and QFC. The company ranks at just 1.70 on the 2ndVote scale as it scores a 1.00 in all categories except its 5.00 in Basic Freedoms.
  • Amazon (1.62) is the world’s largest retailer. They rank at 1.62 with 2ndVote because of their opposition to Basic Freedoms like religious liberty and speech, and their environmental radicalism. Amazon also scores a 1.00 in each category except for our 2nd Amendment category which earns a 4.70.
  • Target (2.31) is one of middle-class America’s favorite places to go for everything retail. However, the company has also endangered women’s privacy and safety through its decision to allow men to use women’s restrooms and changing rooms. With scores of 1.00 in each category except a 4.86 in Basic Freedoms and a 4.97 in Civil-Safe Society.

If you would like to see changes in these scores, use YOUR voice to call them out. Contact them through our website with these links: KrogerAmazon, and Target.

It’s important to treat – and not trick – yourself when it comes to Halloween. We encourage you to spend your hard-earned money with companies like Spirit Halloween, H-E-B, and Great Pretenders this Halloween season!

EDITORS NOTE: This 2ndVote column is republished with permission. ©All rights reserved.

Flagstaff Property Owners Win an Important Fight—but the Battle is Far from Over

By Christina Sandefur

Flagstaff property owners have scored a major victory against efforts by city officials to impose a sweeping new land-use restriction called the High Occupancy Housing (HOH) Plan that would eliminate their right to use their property. After the Goldwater Institute helped dozens of property owners submit legal demands under the Arizona Private Property Rights Protection Act, which would have required the city to compensate them for some $50 million in legal losses, the city voted to waive the ordinance with respect to those property owners who sought relief against the restrictions.

The HOH Plan, which went into effect in March, deprives thousands of city residents of their property rights and could devastate Flagstaff’s economy. In a time where demand for housing is on the rise, the Plan would severely curtail the way Flagstaff residents can improve and develop their residential and mixed-use properties—including homeowners who want to update or improve older homes, build on empty lots, or even those who seek to convert shuttered motels and gas stations into sought-after houses and apartments.

Under Arizona’s Private Property Rights Protection Act (also known as Proposition 207), cities can’t prohibit their citizens from renovating, improving, or developing their properties unless they pay for taking away people’s rights. So far, Flagstaff’s leaders have chosen to restore the rights of the property owners who brought claims, rather than pay legal compensation. But given the breathtaking scope of the HOH Plan, the city might be faced with thousands of additional claims going forward, totaling hundreds of millions of dollars.

And that’s just the legal liability. If implemented, the HOH ordinance would impose other costs, potentially enormous ones, on Flagstaff residents—by devaluing their properties, discouraging development and improvement, and blocking the development of affordable housing. Flagstaff’s land-use policies make it impossible for the city’s housing supply to keep up with growing demand, which means the HOH Plan would put the city on track to rival California’s housing shortages. For decades, that state’s cities have made it prohibitively difficult to build new homes, by imposing burdensome regulations, delays, and costs. That’s one reason many Californians are now seeking refuge in Arizona. Flagstaff’s growing assault on property rights won’t help Arizonans accommodate new residents, recover from the economic burdens of the pandemic, or improve their neighborhoods.

But there may be hope on the horizon. Thanks to Flagstaff residents’ overwhelming response to the HOH Plan, the city has scheduled a discussion of the ordinance for the council meeting on Tuesday, October 26. Anyone troubled by the severe financial and economic consequences of the ordinance should attend and voice those concerns. The city has an opportunity to reduce its costly burdens on citizens, encourage economic growth, and avoid the financial liability of hundreds of millions of dollars.

*****

This article was published on October 25, 2021, and is reproduced with permission from the Indefenseoflibertyblog, a production of the Goldwater Institute.

New Report Shows Growth of the Welfare State Has Fueled Long-Term Declines in the Labor Force

By Foundation for Economic Education (FEE)

A massive labor shortage continues to grip the nation and hold back our economic recovery. With countless pandemic and policy factors influencing the shortage, there’s a heated debate over what’s keeping so many workers out of the labor force. But a new study confirms that the growth of the welfare state is playing a massive role—and that this trend began long before the pandemic.

Published by experts on the Republican side of the Senate Joint Economic Committee, the analysis reports, “the U.S. has witnessed an unprecedented rise in disconnected prime-age workers over time.” As shown in the graph below, the men’s labor force participation rate has fallen from more than 97 percent in 1955 to 89 percent prior to the pandemic, while the women’s labor force participation rate has declined in recent decades as well (View chart here).

What’s causing this decline? Well, the study examines popular explanations like displacement from immigration and technological advancements and finds that they do not account for this drastic drop. Rather, it suggests that the biggest factor is that “many would-be workers are voluntarily disconnected from work, and government programs and policies have likely made work less attractive for these Americans.”

There has been tremendous growth in the welfare state over these decades. Per the committee, in 1998 about 20 percent of working-age Americans living in households between the 20th and 50th income percentiles were benefiting from government programs. As of 2014, that figure was up to 30 percent.

Indeed the study notes that “only 12 percent of inactive, prime-age, able-bodied men said they wanted a job or were open to work.” Why? It doesn’t take a genius to figure out that the widespread availability of robust welfare benefits is a key part of the explanation.

“A significant body of empirical evidence suggests that government transfers— especially those without work requirements—tend to lower employment,” the study reports. “For example, labor force participation and earnings fall after receiving housing assistance, losing Medicaid coverage increases employment and gaining the coverage can reduce it, and the introduction of the food stamp program in the 1960s and 1970s decreased employment significantly.”

We can’t overlook these troubling findings. Yes, there’s no doubt that the pandemic and pandemic-specific policies are contributing to the particularly acute labor shortage currently facing our economy. But in the bigger picture, our long-term labor problems are driven particularly by a bloated welfare system that disincentives work and traps people in poverty.

Yet some are learning the opposite lessons. With their $3.5+ trillion spending plan, progressives in Congress are trying to make the welfare state even bigger! This is bad for the economy and actually bad for the supposed beneficiaries, too—the anti-poverty, mental, emotional, health, and social benefits of being employed are widely and extensively documented. Policies should incentivize employment; not discourage it.

“As the number of Americans who receive government assistance has grown, more Americans have voluntarily left their jobs,” Republican Senator Mike Lee commented in light of this report. “Congress’ plan to spend an additional $3.5 trillion to provide households with new subsidies and fewer incentives to work would only make things worse.”

Indeed it would. Hopefully, this new study injects some much-needed insight into the ongoing conversation about labor shortages. In the big picture, our labor participation problems can’t be fixed without serious rollbacks of the welfare state.

RELATED TWEET:

TERRIBLE: U.S. economic growth crashed in the third quarter, as the economy grappled with the Delta variant driving a resurgence of Covid-19 infections and supply-chain disruptions. https://t.co/CYD8cMUHan

— Breitbart News (@BreitbartNews) October 28, 2021

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EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

Brnovich Requests Restraining Order Against Biden Vaccine Mandate

By Elizabeth Troutman

Arizona Attorney General Mark Brnovich asked the U.S. District Court in Arizona for a temporary restraining order and nationwide preliminary injunction against the Biden Administration’s COVID-19 vaccine mandates.

“The COVID-19 vaccine mandate is one of the greatest infringements upon individual liberty, federalism, and the separation of powers by any administration in our country’s history,” Brnovich said in a news release Friday.

President Joe Biden announced an emergency rule mandating vaccinations for all private companies with more than 100 employees on Sept. 9.

“This is not about freedom or personal choice,” Biden said in a press conference. “It’s about protecting yourself and those around you.”

On Sept. 14, Brnovich became the first U.S. attorney general to file a lawsuit against the mandates, arguing they violate the Equal Protection Clause of the Constitution by allowing unvaccinated migrants to enter the United States.

Brnovich’s Friday amended complaint expanded his lawsuit against the administration by adding claims against the federal contractor and federal employment requirements. He said the mandates violate the constitutional rights of federal employees, contractors, and subcontractors, as well as individuals’ statutory right to refuse vaccines available under Emergency Use Authorizations from the Food and Drug Administration.

The Attorney General’s office cited an Engineering New-Record report predicting more than 40% of the workforce “…will quit and go to work for another contractor that does not have such a mandate.” This substantial change in the workforce will damage the economy, the office said.

Two dozen Republican attorneys general have threatened to file against the mandate, calling the plan “disastrous and counterproductive” in a letter to Biden.

“Mr. President, your vaccination mandate represents not only a threat to individual liberty, but a public health disaster that will displace vulnerable workers and exacerbate a nationwide hospital staffing crisis, with severe consequences for all Americans,” the attorney’s general wrote.

*****

This article was published on October 25, 2021, and is reproduced with permission from The Center Square.

Limited Government and Money: A Review of Money and the Rule of Law

By Daniel Sutter

For centuries pharaohs, emperors, and kings ruled and made average folks do their bidding. The rise of political liberalism changed our conception of power, arguing that governments existed to serve the people. A new book argues we must bring liberal principles to our money.

Government actions ultimately involve force, which liberalism argues is legitimate only if it serves the people. Governments today take some of the same actions as emperors did. Taxation, for example, still involves armed men taking things from people. Taxation is theft unless the people consent; as America’s Founders put it, “Taxation without representation is tyranny.”

Governments took control of money before the liberal revolution; kings found minting coins profitable. Just as taxation resembles theft, government money creation resembles counterfeiting. And money creation is illegitimate counterfeiting if not subject to the controls of liberal democracy.

In Money and the Rule of Law, economists Peter Boettke, Alex Salter and Dan Smith (formerly of Troy University) argue that the Federal Reserve’s unchecked powers over America’s money supply violate the rule of law, an important element of liberal government. The rule of law means that the rules are enforced equally on all; no one is above or beneath the law. The rule of law yields generality, predictability, and robustness. They argue, “If money is subject to arbitrary manipulation by public authorities, this amounts to a de facto infringement on property rights.”

A retort to Boettke, Salter and Smith might be, “But the Federal Reserve manages the money supply to keep our economy prosperous, benefitting us all.” Yet the evidence, the authors argue, is less clear than you might think. Between its creation in 1913 and 1933, the Fed basically only managed the banking system. Yet it let one-quarter of America’s banks fail between 1930 and 1933, turning a recession into the decade-long Great Depression.

The Fed also fueled the inflation of the 1970s, which hit 13 percent in 1980. The “Misery Index” – the sum of the inflation and unemployment rates – routinely exceeded 15. By comparison, the Misery Index was 6 in 2019.

The Fed also contributed significantly to the Great Recession. Ben Bernanke, Fed Chair in 2008, contended that the Fed merely served as a lender of last resort. The authors thoroughly refute this claim and contend that the unpredictable response – e.g., bailing out Bear Stearns and then allowing Lehman to fail – created most of the financial crisis.

The authors also demonstrate how the Fed’s expertise to guide the economy is massively exaggerated. Discretionary monetary policy as depicted in textbooks requires accurate forecasting of the demand for money. But as former Fed chairs Paul Volcker and Alan Greenspan acknowledge, the Fed cannot even accurately measure the money supply.

Economists’ understanding comes from our models. The best models are still simplistic and inferring valid lessons for ongoing economic events is challenging. But we have no specialized expertise on things we cannot model.

As the authors detail, the Fed’s models have some notable omissions. Like money and financial institutions. The New York Fed’s forecasting model omits money; Boettke, Salter, and Smith characterize this as “a de facto renunciation of the very economic problem monetary authorities are supposed to manage.” Models without financial institutions offered little insight on the financial crisis.

Truly limited government involves limiting the discretion of the Federal Reserve. A solution involves imposing binding rules on both the Fed and Congress. The rules must specifically restrict the creation of “liquidity and credit except in specific ways that are general, predictable, and robust.”

Three great free-market Nobel Prize winners of the 20th century, Friedrich Hayek, Milton Friedman, and James Buchanan, all wrote about monetary economics. As Boettke, Salter, and Smith observe, each eventually concluded that the power of central banks must be curbed. Money and the Rule of Law offers an important case for extending limited government to money.

*****

This article was published on October 26, 2021, and is reproduced with permission from AIER,  American Institute for Economic Research.

California Unemployment Claims Account For Over ONE THIRD of Nation’s Total

By Pamela Geller

California unemployment claims account for over ONE THIRD of nation’s total.

And they voted to keep their oppressors in power.

No pity.

As NYC Mayor Ed Koch once said, ” “The People have spoken … and they must be punished.”

California unemployment claims are one-third of nation’s total while Texas cranks up its job creation

California’s unemployment rate stands at 7.5%, as businesses continue fleeing the high-tax state

By Andrew Mark Miller, : FOX Business, October 24, 2021:

The state of California released a jobs report Friday showing the highest unemployment rate in the nation. California alone represents one-third of the overall unemployed in the nation.

The California Employment Development Department September jobs report showed that the state gained 47,400 jobs since August but holds an unemployment rate of 7.5% which ties Nevada for the highest in the United States.

Additionally, unemployment claims rose to 80,700 last week which amounted to one-third of the total claims in the country.

The state’s Democratic Gov. Gavin Newsom painted an optimistic picture of the report blaming the coronavirus pandemic for the slow growth but claiming that the state is “averaging record job creation.”

“Our economic recovery continues to make promising progress, with 812,000 new jobs this year and regaining over 63 percent of those jobs we lost to the pandemic,” Newsom said in a release. “As we continue averaging record job creation, our work is more important than ever to get more Californians back on the job and support those hardest hit by the pandemic.”

“Within the past eight months, California has created 812,000 new jobs, more than any other state,” Newsom added. “That averages out to approximately 101,500 per month.”

In June, and many times since then, Newsom has claimed that California is “roaring back” under his leadership but economic indicators, including the recent jobs report, have suggested that the comeback is moving slowly.

Since the beginning of 2018, California has seen 265 companies relocate their headquarters outside of the state – 74 of which left in the first six months of 2021, according to a new analysis published by the Hoover Institution, a right-leaning think tank at Stanford University. By comparison, 62 businesses moved outside of the state in 2020, while 78 relocated in 2019. In 2018, 58 companies exited the state.

The migration is taking place across a broad range of industries, such as manufacturing, aerospace, financial services, real estate, chemicals, health care and technology. The headquarter exits include Big Tech legacy firms such as Hewlett-Packard Enterprises and Oracle, but also smaller, rapidly growing firms like Darvis, which helps digitize hospital logistics, hygiene and documentation.

The biggest reason that companies are relocating outside of the state is finances: California is “too expensive, too regulated and too heavily taxed, both for companies and for the workers they hire.”

OAKLAND, CALIFORNIA – OCTOBER 08: California Gov. Gavin Newsom speaks during a news conference at Kingston 11 Cuisine on October 08, 2021 in Oakland, California. California Gov. Gavin Newsom signed a COVID-19 recovery package, Senate Bill 314, that w

That’s evidenced in part by the new destinations for the departing companies: States with lower costs, fewer regulations, lower taxes and a higher quality of life for workers are the leading choices for the businesses. Since the beginning of 2018, Texas has seen 114 companies formerly based in California relocate to the state.

According to Gov. Greg Abbott (R), meanwhile, Texas led job creation across the United States in September. According to Abbott, Texas had nearly twice the number of new jobs than California in September.

EDITORS NOTE: This Geller Report column is republished with permission. ©All rights reserved.

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The Biden Assault On Economic Freedom And Prosperity

By David Henderson

Editors’ Note: We have noticed a number of commentators suggesting that Biden is the second coming of Jimmy Carter and “economic malaise.” Professor Henderson makes a number of salient points, particularly regarding economic regulation, that Biden is actually far worse than Carter. As bad as Carter was, he deregulated major industries, actually cut taxes, and appointed Paul Volker to the Fed. It was Volker and Reagan who eventually broke the back of inflation, at the cost of extremely high-interest rates. Carter governed as a Liberal to be sure, but Biden is governing like a Marxist. One final point: Carter’s excesses came at a time when Federal debt as a percentage of national output was far lower than it is today. As such, we now have far less margin for error.

I’ve been following economic policy closely since Richard Nixon’s assault on economic freedom with his August 15, 1971, economy-wide price controls. While there have been ebbs and flows in economic freedom in the fifty years since then, I have never seen anything like the full-court press against economic freedom exercised by President Biden and his administration. To the extent it succeeds, it will not only reduce our freedom but also slow the growth of our real income.

If you think Biden’s policies compare to Jimmy Carter’s, you would be wrong. Carter’s energy policies were horrendous. He continued Nixon’s and Ford’s price controls on oil and gasoline until he finally started to phase them out in his last year in office; he dictated minimum and maximum temperatures for buildings, and he set energy standards for appliances that have made them less useful and more expensive. In one of his worst hires, he appointed G. William Miller as chairman of the Federal Reserve and Miller went on to print more money and cause more inflation. But Carter was a leader in ending economic regulation of airlines, of trucking, and of railroads. Airline deregulation made airline travel cheaper and made it much easier for middle-class people to fly multiple times a year. Trucking and rail deregulation made those shipping modes more efficient and cheaper. And in 1979 he appointed Paul Volcker as Fed chairman and Volcker went on to follow a semi-monetarist policy that, under President Reagan, brought inflation down to low single digits. Carter also signed a tax bill in 1978 that reduced the tax rate on long-term capital gains.

Nothing that the Biden administration has done or is proposing on economic policy is comparable to Carter’s accomplishments. On every front, Biden and his appointees are pushing for massively higher spending, taxes, and regulation. Moreover, simply looking at the budget numbers, scary as they are, understates the damage because of the particular way the proposed programs are structured. Many of the programs set up bad disincentives and also intrude in private decision-making that has worked out fairly well.

Spending

By the end of his second month in office, Biden had signed a $1.9 trillion coronavirus relief bill. I’ve written about that bill in “An Unnecessary ‘Stimulus’ ” (Defining Ideas, March 5, 2021) and “The ‘Stimulus’ and the Damage Yet to Come,” (Defining Ideas, March 18, 2021.) I also warned (in “Child Tax Credits Feed Debt and Dependency,” Defining Ideas, April 23, 2021) that politicians of both parties would push to extend the hugely expensive child tax credit beyond its expiration date of December 2021. Sure enough, an extension of the child tax credit to the end of 2025 is a major part of Democrats’ $3.5 trillion budget reconciliation bill. Presumably, the Democrats are thinking that once even high-income Americans have had almost five years of getting thousands of dollars annually from the government simply for having of-age children, many of them will advocate extending the payments beyond 2025. Unfortunately, they’re probably right.

Another major expenditure in the $3.5 trillion budget bill is for a federal child care program. University of Chicago economist Casey B. Mulligan has a habit of actually reading and thinking through long congressional bills. In his October 14 blog post, titled “Childcare in ‘Build Back Better,’ ” Mulligan gives a detailed description of the child care provisions of the bill. Those provisions are so extensive that they would, if implemented, upend child care. The bill would prevent federal funds from going to child care providers unless the workers were paid as much as elementary-school teachers. How much is that? Mulligan cites data from the Bureau of Labor Statistics showing that in 2019 elementary-school teachers were paid an average of $63,930 per year. By contrast, in 2019 child care workers earned an average of only $25,510 annually. Thus, the federal bill would make child care much more expensive.

Moreover, the bill would price child care, based not on the value that the parents perceive, but on the parents’ income. Consider households whose income is between 75 percent and 150 percent of the median household income, which, in 2019, was $69,560. (Median income in 2020 was even lower, $67,521, because of COVID-19 and the regulations imposed by state and local governments, but presumably, that was temporary.)  Households in the 75–150 percent range would have income between $52,170 and $104,340. That would include most families in America. A family with an income in this range would pay an extra $7 for one child’s care for every additional $100 in family income. A family with income in that range and two children in child care would pay an extra $14 for child care for each additional $100 of income. That amounts to an implicit marginal tax rate, just based on child care alone, of 14 percent. A family in the 22 percent federal tax bracket and a state tax bracket of 4 percent would also face a 7.65 percent tax rate for Social Security and Medicare (or a whopping 15.3 percent tax rate if self-employed). That family’s marginal tax rate already amounts to 33.65 percent. Adding 14 percentage points for two children in child care makes the implicit marginal tax rate for that family a stiff 47.65 percent…..

*****

Continue reading this article published on October 21, 2021 at the Hoover Institution.

Fossil Fuels Form The Basis Of Our Medical And Food Supply Chains

By Ronald Stein

Under Biden’s plan to rid America of fossil fuels, such a plan would eliminate the medical industry that is totally reliant on the products made from petroleum derivatives, and eliminate oil-based fertilizers to grow the crops that feed the 8 billion on planet earth. Surprisingly, Biden must be oblivious to the consequences of his plan as efforts to cease the use of oil could be the greatest threat to civilization, not climate change.

Biden supports the end of fracking, oil exploration, and oil importing which cuts off the supply chain of crude oil to refineries. Without any crude oil to manufacture, the elimination of the supply chain to the 131 operating refineries in the U.S. would eliminate that manufacturing sector.

Without refineries, there will be none of the oil derivatives that are manufactured from crude oil that are the basis of more than 6,000 products in our economy and lifestyles.

Without the supply chain of crude oil, not only is the refining industry history, but the domino effects are the destructive impacts on the medical, food supply, electronics, and communications industries as they are all totally dependent on the products made from oil derivatives manufactured from crude oil. Any grade school-educated kid can understand that breezes and sunshine, can only make weather-dependent intermittent electricity.

The medical industry is reliant on the products derived from the derivatives manufactured from oil that produce all the critical medical equipment like ultrasound systems, defibrillators, exhalation valves, inhalation valves, CT systems, X-ray, medicines, masks, gloves, soap and hand sanitizers for hospitals, and protective gowns, gloves and face shields gear for doctors and nurses.

Is Biden oblivious to the fact that all those medical products begin from crude oil, or as the Wall Street Journal states – Big Oil to the Coronavirus Rescue? Vaccines need refrigeration, and refrigeration need electricity, especially in the hospital sector where redundant generation capacity for continuous uninterruptable electricity is a mandate.

While Biden attempts to lower emissions at any cost, in favor of some weather-dependent electricity from breezes and sunshine that can only survive with massive subsidies, coal imports and exports continue to increase internationally to meet the electricity generation needs of developing countries as reflected in the Merrill Lynch Global Energy Weekly report.

At least 80 percent of humanity, or more than 6 billion in this world cannot subsidize themselves out of a paper bag as they are living on less than $10 a day. To reduce emissions in the developing countries that control most emissions, the wealthy countries would need to step up and subsidize electricity generation from breezes and sunshine, to replace more than 3,000 coal fired power plants in developing countries like China, India, Indonesia, Japan, Africa, and Vietnam with billions of people seeking affordable electricity.

The oil that reduced infant mortality, extended longevity to more than 80+ and allowed the world to populate to from 1 to 8 billion in less than 200 short years, is now required to provide the food, medical, communications, and transportation infrastructures to maintain and grow that population.

A key question for President Biden before America attends the Intergovernmental Panel on Climate Change (IPCC) Conference in Glasgow, Scotland in November:

How dare pro-humanity individuals and governments support the banishment of fossil fuels, when their banishment would be the greatest threat to civilization resulting in billions dying from starvation, diseases, and weather-related deaths?

Getting off fossil fuels would reverse most of the progress humanity has made over the last few centuries. The inventions of the automobile, airplane, and the use of petroleum in the early 1900’s led us into the Industrial Revolution and victories in World Wars I and II. The healthier and wealthier countries of today now have more than 6,000 products that did not exist a few hundred years ago, all manufactured from fossil fuels, the same fossil fuels that Biden wants to eliminate.

Under Biden’s plan to rid American lifestyles and economies of fossil fuels, such a plan would ground the military, space program, and Air Force 1. It would also mothball the huge energy demands of airlines, cruise ships and merchant ships, as well as eliminate the medical industry, electronics industry, and the communications industry that are totally reliant on the 6,000 products made from petroleum derivatives.

The first use of oil-based fertilizers took place in 1946, and today our food supply is dependent on hydrocarbons. The world’s population of 8 billion souls depends on oil-based fertilizers to grow the crops and feed the animals that are consumed each year. Any cessation of hydrocarbons will immediately result in the annihilation of billions of souls, returning the globe to a 1950 population count of approximately 2.5 billion souls.

How can a pro-humanity President Biden support COVID injections to save thousands of lives, and simultaneously support ridding the world of fossil fuels that would be the greatest threat to civilization resulting in billions dying from starvation, diseases, and weather-related deaths?

*****

This article was published on October 19, 2021, and is reproduced with permission from CFACT, Committee for A Constructive Tomorrow.

How Free Stuff Is Used To Addict The Urban Poor To Welfare

By John Eidson

Lifeline is a federal program originally intended to provide low-income people with a free landline phone. Sensing a chance to get more poor people to vote for them, Democrats expanded the program to include free cell phones. To maximize the number of subsidized cell phone recipients, “free phone” vans patrol low-income areas of every Democrat-run city in America, a practice that has resulted in massive fraud.

The “free phones” van pictured above set up shop on a street in a predominately African American area of Baltimore. As revealed in this must-see report by the city’s Fox45 TV, within just three years of Barack Obama’s election, fraud exploded the number of subsidized phones in Baltimore from 6,000 in 2008 to 231,000 in 2011.

Baltimore isn’t the only place where Democrats have used free phones to addict the urban poor to government dependency. In a viral video that illustrates how readily poor people will vote for politicians who promise them free stuff, a welfare recipient in Cleveland, Ohio screamed at a TV reporter that minorities would be voting for Obama because he gives them free phones.

HOW DEMOCRATS DISINCENTIVIZED WORK

Prior to 1995, the federal government gave more money to states that increased their welfare rolls. The following year, President Bill Clinton signed into law major bi-partisan welfare reform that required those receiving public assistance to work in exchange for taxpayer-provided benefits.

Known as “The Personal Responsibility and Work Opportunity Reconciliation Act of 1996,” the new law changed the rules by instead rewarding states that decreased welfare rolls. The encouraging result was a sharp drop in both welfare dependency and child poverty.

Thirteen years later, Democrats eviscerated the 1996 welfare reform law. Written behind closed doors with zero bi-partisan support, the 2009 stimulus bill passed into law by President Obama and a Democrat Congress effectively ended the requirement that able-bodied adults perform work in exchange for government benefits.

As allowed by the stimulus bill, the Obama administration replaced actual work requirements with the following “work” requirements: Bed rest, personal journaling, motivational reading, smoking cessation classes, weight loss classed, personal care and helping others with household tasks.

Proving that these activities were actually performed was done through the honor system. Defining leisure activities as work enabled Democrats to mislead voters to think that welfare recipients still had to earn their government benefits.

Under the new rules, welfare recipients were disincentivized to transition toward self-reliance, resulting in a return to record levels of welfare dependency and child poverty. The Democrat message to the urban poor: Keep voting for us and we’ll see that you keep getting welfare, this time with no strings attached.

HOW OBAMA EXPLODED FOOD STAMP ROLLS TO RECORD LEVELS

No one minds helping the needy, but Democrats have turned food stamps into a way of life for millions of able-bodied people—under President Obama, 13 million more recipients were added to food stamp rolls. In a move that helped explode food stamp usage to all-time record levels, the Obama administration ran ads designed to lure more people to apply for federal food assistance:

● Obama USDA pamphlet suggested holding food stamp parties to increase participation

“Host a social event. Make it fun by having activities, games and food, and provide information about signing up for food stamps!”

● To expand food stamp rolls in rural areas, the Obama USDA ran ads that denigrated and discouraged self-sufficiency

A 2011 USDA pamphlet revealed that local food assistance offices were rewarded for “counteracting” the pride that many rural Americans have in being self-reliant.

● Obama USDA’s “outreach” used Spanish-language ads to boost food stamp use among legal & illegal immigrants

To prevent taxpayers who do not speak Spanish from discovering the content of the ads, the USDA website did not provide English translations. When the ads were exposed in conservative media, the USDA removed them from its website.

According to a report by the Congressional Research Service, food stamp usage among able-bodied adults doubled after the Obama administration suspended work requirements.

THE PLIGHT OF URBAN AMERICANS IS WORSE THAN EVER

Over the last half-century, trillions of dollars have been spent to help lift the black underclass, with a mother lode of anti-poverty funding having gone to blue state governors and blue city mayors. According to Bob Woodson, a former executive of the National Urban League, 70% of the $22 trillion in anti-poverty funding never reached the disadvantaged people it was intended to help. Instead, the lion’s share was siphoned off by high level elected Democrats, who perpetuated inexcusably wasteful bureaucracies that devoured massive sums of anti-poverty funding in ways that did virtually nothing to improve the plight of the inner city poor.

For six consecutive decades, residents of our inner cities have been economically consigned to communities ravaged by urban decay, rampant crime, rat-infested government housing, sorry schools, generational poverty and chronic hopelessness, with each election bringing a new round of empty promises from the party that that uses welfare addiction and the race card to win elections. While the black underclass faces a daily struggle just to survive, the Democrats they helped elect live in new homes, drive new cars and dine at exclusive restaurants.

WELFARE KILLS THE HUMAN SPIRIT

By the mid-1980s, it was apparent that giving on-going welfare to able-bodied people was a counterproductive policy that inflicted lasting harm on the urban poor. Using government benefits to help impoverished people get on their feet is one thing; knowingly habituating them to welfare as a means of securing their vote is a cruel and cynical thing to do.

By continually pushing welfare on those already addicted to the demeaning lifestyle of government dependency, the Democratic Party is guilty of an unconscionable crime against the most vulnerable people in our society.

Except on Election Day, Democrats couldn’t care less about the urban poor. One day, white liberals will be filled with shame when will realize the unmitigated carnage their vote has foisted on generations of impoverished black Americans.

©John Edison. All rights reserved.

The New York Times Reveals the Horrors of Capitalism—By Showing China’s State-Run Hospitals

By Foundation for Economic Education (FEE)

If the Times had visited one of China’s many private hospitals, they would have found something quite different from the chaos depicted in China’s public health care facilities.


The New York Times released a 10-minute video last month entitled “How Capitalism Ruined China’s Health Care System.” The video attempts to blame capitalism for the many problems in China’s health care system.

“Under Mao Zedong the Communist state provided free health care for all,” the narrator tells us. “Decades later China adopted a unique brand of capitalism that transformed the country from a poor farming nation into an economic superpower. Life expectancy soared. But the introduction of capitalism and the retreat of the state meant that health care was no longer free.”

As a resident of China and a recipient of outstanding private health care here, I was confused as to why the Times would show us the horrors of a capitalist system without actually visiting a private health care facility.

All of the horrors depicted in the high-quality video—the long lines, the scalping, and the hospital fights—occurred at government-run health care facilities. If the Times had visited one of China’s many private health care facilities, they would have found something quite different.

I know first-hand how outstanding the care at private facilities is in China. Last year I had my appendix removed here. I accidentally walked into the public hospital directly across from the private hospital. The emergency room was filled with at least 100 Chinese patients.

Upon seeing my white European face, hospital staff directed me to the private hospital across the street, Shanghai United. I was welcomed by friendly staff who were fluent in English. The ER doctor was American. I had an ultrasound and CT scan performed within the first two hours. Eight hours after that, my appendix was removed, and I was high on morphine.

China’s private hospitals are the opposite of the chaos depicted in the Times’ video. Wait times are practically non-existent. You don’t have to bribe anyone to be seen.

The exceptional care that I enjoy here along with wealthier residents of China is, sadly, only a dream for most Chinese today. Why? Because it is precisely where you find the profit incentive restored and government regulation absent that you also find superlative health care.

In the video, the Times praises Chairman Mao’s introduction of “free” health care and claims that when capitalism was introduced into the country, the state retreated and care was no longer free.

Neither statement is true. First, health care was never free; it was paid for by tax revenues. Second, the state never retreated; rather, its regulatory apparatus became vaster and even more invasive. Out of sheer necessity, China allowed for the creation of private hospitals to ease the burden of the country’s heavily bureaucratic and deteriorating health care system.

The fact that the Times refused to visit even one private hospital or mention the higher cancer survival rates of patients receiving private care raises serious questions. At the very least, failing to feature a single private medical facility while blaming capitalism for the dysfunction of China’s public health system is intellectually dishonest.

The Times video begins with a man making drugs in his home for his elderly, cancer-stricken mother, a common practice among poor Chinese. He states that there are three kinds of drugs in China: expensive drugs from the West, smuggled drugs from India, and DIY drugs. However, there is a fourth category of drugs never mentioned: Chinese-developed medicine.

These domestic options aren’t sparse, either. China actually has the world’s second-largest prescription drug market. So why isn’t this man taking advantage of the cheaper, domestic option? The Times declines to investigate, but those of us who live here know exactly why he’s refusing Chinese medicine: the quality of the drugs is very poor.

Chinese doctors actually advise against taking Chinese prescriptions due to the lack of transparency on their ingredients, instead suggesting patients rely almost exclusively on Western medicine. (A Chinese pediatrician once warned me not to give my children a simple cough syrup developed in China.) So, while the Times contends that capitalism is killing the Chinese, it is the presence of capitalist-created drugs that allows the Chinese to survive.

The mystery ingredients of Chinese drugs don’t tell the full story, however. The entire pharmaceutical industry operates under contradictory procedures and policies, including price fixing.

In the 1980s, the government began divesting in public hospitals and relocated those funds to subsidize prescription drugs for the poor. Simultaneously, however, the government put price controls on the drugs, making it impossible to turn a profit selling them, which destroyed the incentive for developers. With a paltry investment and a near-zero profit policy, the drug industry is at a stalemate, producing garbage drugs that are unable to yield returns.

The Times video depicts the ungodly long line most Chinese face to see a physician.

“It’s about 5 a.m. and about 100 people have gathered in line in downtown Shangai,” the narrator says softly. “This isn’t the line to the movies or a holiday sale. It’s the entrance to the Shanghai Cancer Center at Fudong University. Those who are willing to lose a night’s sleep trying to try to get in line have one question in their mind: will I get to see a doctor today?”

It’s an appalling scene. We see sick people waiting in massive lines to receive medical attention. Scalpers are selling places in line to those most desperate. Some people are unceremoniously pulled out of line by security right before entering the hospital (presumably for cutting).

There’s just one problem. The Shanghai Cancer Center is a public hospital, not a private one.

The long lines, scalpers, bribes, and physical fights with hospital staff—all of these exclusively happen in the public, communist, government-run hospitals. These things do not happen at China’s private hospitals.

In an egregious bit of sleight-of-hand, the Grey Lady asserts that capitalism is ruining Chinese health care while presenting us with a hospital where capitalism is not practiced. What viewers are watching is the medical system created by central planners.

Along with income from the municipal medical schemes that citizens must pay into, the state hospitals depend on foreign-made drug sales and testing for their revenues. This makes hospitals fertile ground for bribes from pharmaceutical companies, unnecessary drug prescriptions, and excessive testing. The excessive testing is not only a giant waste of money, but in hospitals where doctors get less than three minutes with patients, it is a massive waste of time.

The government also heavily regulates reproduction programs due to the two-child policy, forcing hospitals to obtain a license from China’s Ministry of Health to perform fertility testing and treatments. Almost all of the licenses are only authorized for the state-run hospitals. Simply offloading the initial fertility testing to the private sector would take enormous pressure off the public system.

Market efficiencies are missing from China’s system because they were destroyed long ago by the tenets of communism. Private property and profit motive were replaced by a government-run system designed by central planners.

Sadly, the Times video ends with a quote from the now deceased elderly mother. She repeats what her doctor told her: “Your cancer is not yet severe, take some medicine and go home. You will be fine.”

That’s not the standard response one would expect after being diagnosed with a terminal illness, and viewers see why. The woman was denied treatment. Weeks later she was dead. There is a name for this: rationing.

Rationing can come in many forms, one being a dearth of primary care physicians (PCPs). In China, the government sets fixed salaries for PCPs, which are much lower than what one could earn in the private sector. Naturally, this attracts fewer professionals into primary care. In fact, less than 30 percent of medical school graduates choose primary care. Additionally, to ensure access to basic medical services for all, fees for services are set lower than costs at government-run facilities.

For the poor, this makes public hospitals appealing. Their inpatient treatment is usually fully or mostly covered by the government. And getting in isn’t always a problem. Chinese public hospitals often boast about the number of beds available — ranging from 1,000 up to 10,000 — in comparison to private hospitals, which usually have fewer than 500. The quality of the care is another story.

The absence of normal market forces creates a glaring problem: few doctors and many patients (particularly poor ones whose costs are fully covered). Hospitals simply can’t keep supply up with demand. Staffs are overwhelmed by the sheer number of patients, creating more stress in a high-pressure environment. Inevitably, people are denied care, hence the violence directed toward staff featured in the Times video. (In fact, stabbings and mob-style attacks have risen 23 percent a year on average since 2002, according to the China Hospital Management Association.)

The government also rations prescription medicine by simply excluding certain drugs from coverage, making prescriptions the largest out-of-pocket expense for patients. Even public emergency transport services are completely unreliable in China. Public ambulances simply don’t show up or are too busy, so patients often must take taxis.

The widespread dysfunction of China’s health care system depicted by the Times is not particularly unique.

The United Kingdom’s National Health Service is currently “imploding” as record numbers of patients are waiting 12 hours to get into emergency rooms. Last year, the BBC reported patients were literally dying in hospital corridors.

China’s experience is what inevitably results, sooner or later, from government-run medicine. The Times is correct to label it tragic. But it takes some real chutzpah to blame the tragedy on capitalists.

If the Times had wished to see capitalism in action, they had only to visit one of China’s private hospitals. I have been to the ER no fewer than six times in Shanghai at various hospitals. Each time I have been registered immediately and sent to a consultation room within 10 minutes of arrival.

And I even have the appendix scar to approve it.

COLUMN BY

Sarah Lilly

Sarah Lilly is an American expat and political writer living abroad in Switzerland. She blogs at Red State Abroad.

EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

Bombs Away !! A Razor Thin Congressional Democrat Majority Is About to Transform and Break America and Must Be Stopped: Here’s How

By The Editors

The U.S. House and Senate Democrats are attempting to ram through over 2,500 pages of transformational legislation with a Senate reconciliation vote (50 + VP) and a House vote that has a 3 vote Democrat majority (smallest in past century). THERE IS ABSOLUTELY NO MANDATE FOR THIS. It is our belief that Nancy Pelosi and Chuck Schumer know their majorities are at great risk in November 2022 and with the disastrous record of President Biden thus far (Afghanistan, foreign policy, Covid, southern border, inflation, economy, energy, etc., etc.), they are desperate to cement their goal of permanent Democrat power with an entitlement state that cannot be reversed and irrevocably alters America and our individual sovereignty. Enormous increases in federal debt, crushing  tax burdens for all citizens, severe inflation beyond what is now occurring and economic stagnation are just some of the very predictable near and long term results. This progressive, socialistic legislation will cement this Democrat dream. It is the centerpiece of a Bernie Sanders and Alexandria Ocasio-Cortez socialist conquest of America. IT MUST BE STOPPED.

The TAKE ACTION box below addresses this assault on Americans in greater detail. Be assured that the majority of U.S. citizens do not want this legislation. Please refer to the paragraphs in the TAKE ACTION link below. How can we stop this assault on American families, their values, individual liberty, citizenship, energy, small business, and future opportunity and economic growth for future generations? We must inform our U.S. Representatives and Senators that it is absolutely unacceptable to do this. We suggest the following themes in short emails easily sent (please cut and paste the messages below) to legislators from the TAKE ACTION link below. The email portals and phone numbers for the Arizona U.S. Representatives and Senators Sinema and Kelly (up for reelection in 2022) are there. It takes only a few minutes to inform them how you, your families, your neighbors and so many you know are against this perverse effort to transform America. Please do not hesitate – we are moving toward this cliff very quickly. Senator Sinema may (??) stay strong and not vote for it. Senator Manchin from West Virginia has said no to this but he has caved in the past – he should be contacted and strongly reminded his state is a deep red state and his constituents are vehemently against this. Senator Kelly is facing election in 14 months – his vulnerability is essential to point out. All U.S. Representatives face election every two years – make it clear that they are all at significant risk.

Here are four suggested messages for each of the following groups – 1. Senators Sinema and Manchin, 2. Senator Kelly, 3. AZ Democrat Representatives (5) and 4. AZ Republican Representatives (4). Please move on this – repetitively and forcefully make your voices heard and felt as often as possible. If this disaster is foisted on the nation, there is little chance to turn it back – entitlements are never removed. Ergo – BOMBS AWAY. Let it rip and do not relent in informing  them until this assault on every American and our great Republic is stopped.

(1) Senator Sinema (or Manchin),

Dear Senator Sinema (or Manchin),

I ask that you reject the pending legislation in the Senate that is moving toward a reconciliation vote (50 + the Vice-President). It is not a true reconciliation process but rather transformational legislation that has absolutely no bipartisan support and intended to produce one-party rule in America, truly an un-American legislative goal. As we move through the Covid pandemic of the past 18 months and recover the nation’s economy and some semblance of normal American life, passing this legislation will not benefit the nation, your constituents or our children’s future. Intellectual honesty demands that it be rejectedif this ‘budget’ reconciliation bill becomes law, every current issue or crisis in America will be worsened (debt, energy, strong inflation, immigration, taxes, healthcare, etc.) and the blame will be on the party that forced it into being – you and your party.

You have publicly stated your objections to this attempt to transform America with a single party vote with its huge expansion of the federal government, vastly more crushing debt and taxes on all, yes all, citizens. You are in an historic moment and I implore you to vote no on this legislation. You represent Arizonans (or West Virginians) but your vote greatly impacts all American citizens. The majority of your constituents are polling strongly against this legislation and its intended purpose. Please stay strong and vote no on what is clearly Bernie Sander’s vision of  America’s future.

(2) Senator Kelly:

Dear Senator Kelly,

You are at an historic moment in this nation’s history. As a new freshman Senator with an impending election, you have the ability to determine the outcome of the reconciliation bill being pushed through the Senate. Arizonans know that it is not a true reconciliation process but rather transformational legislation that has absolutely no bipartisan support and intended to produce one-party rule in America, truly an un-American legislative goal. As we move through the Covid pandemic of the past 18 months and recover the nation’s economy and some semblance of normal American life, passing this legislation will not benefit the nation, your constituents or our children’s future. Intellectual honesty demands that it be rejected – if this ‘budget’ bill becomes law, every current issue and crisis in America will be worsened (massive debt, energy, strong inflation, immigration, crushing taxes, healthcare, etc.) and the blame will be on the party that forced it into being – you and your party.

November 2022 is less than 14 months away. This legislation will determine the outcome of next year’s election despite multiple issues of great distress for the American people. I implore you to reject Senator Schumer’s (and Senator Bernie Sander’s) legislative attempt to transform America to one-party rule and vote no on what should never be passed without bipartisan support for all constituents of our Republic.

(3) Democrat U.S. Representatives (AZ):

Dear Representative …..,

As an Arizonan and American, I implore you to vote no on the pending 10,000 page (yes, 10,000 pages!) legislation in the U.S. House that will be subjected to a Senate reconciliation vote (50 + the Vice President) to pass. You know very well, as Speaker Pelosi does, that it is not a true reconciliation process but rather transformational legislation that has absolutely no bipartisan support and intended to produce one-party rule in America, truly an un-American legislative goal. As we move through the Covid pandemic of the past 18 months and recover the nation’s economy and some semblance of normal American life, passing this legislation will not benefit the nation, your constituents or our children’s future. Intellectual honesty demands that it be rejected – if this ‘budget’ bill becomes law, every current issue and crisis in America will be worsened (massive debt, energy, strong inflation, immigration, crushing taxes, healthcare, etc.) and the blame will be on the party that forced it into being – you and your party.

November 2022 is less than 14 months away. This legislation will determine the outcome of next year’s election despite multiple issues of great distress for the American people. I implore you to reject Speaker Pelosi’s and Senator Schumer’s (and Senator Bernie Sander’s) legislative attempt to transform America to one-party rule and vote no on what should never be passed without bipartisan support for all constituents of our Republic.

(4) Republican U.S. Representatives (AZ):

Dear Representative …..,

We know that the 10,000 page House bill that will be treated as a reconciliation bill in the Senate (50 + the Vice President) will get absolutely no Republican votes. I thank you for that. Arizonans know that it is not a true reconciliation process but rather transformational legislation that has absolutely no bipartisan support and intended to produce one-party rule in America, truly an un-American legislative goal. As we move through the Covid pandemic of the past 18 months and recover the nation’s economy and some semblance of normal American life, passing this legislation will not benefit the nation, your constituents or our children’s future.

I humbly implore you to publicly and forcefully call this egregious legislative attempt what it is – an attempt by a leftist dominated Democrat Party desperate to transform the nation to a progressive, socialist ruling class and one-party dominance. It is un-American, it is wrong and it is against everything this Republic with its founding principles is about.

The battle is now joined, the polling is not with the Democrats and despite your minority status, it is time to shout out the truth loud and clear to the public, to every U.S. House and Senate member and to the media – this is a Bernie Sander’s socialist assault on the nation and its citizens that will diminish our liberty, our people and our children’s future. Stand strong, be loud and clear and please influence every Democrat House member who is not radical – if this process becomes law, it will be disastrous  for their party and for each of them in 14 very short months but with incalculable and permanent damage to our nation and its future.

The Legal Doctrine of “Carbon Crimes”—Torturing Law and Reason to Rid the Planet of Climate Change Deniers

By Dr. Lucas Bergkamp

The climate movement has discovered criminal law as a tool for conducting climate politics. To complement civil lawsuits against states and corporations, the movement’s activists intend to invoke torture and a newly proposed crime of “ecocide” to target corporate executives, politicians, and others who stand in the way of their preferred policies. In pushing their agenda, these activists receive assistance from the judiciary—specifically, the European Court of Human Rights.

The use of criminal law to pursue climate politics is a further step in the radicalization of the climate movement and poses a threat to economic and political freedoms, the rule of law, and democracy. If the movement is able to realize its plans, all those who do not support ambitious climate policies would have to fear prosecution and imprisonment. Conversely, threatening criminal sanctions against politicians and corporate executives will create powerful incentives to adopt ambitious climate policies and the dominant pro-climate narrative.

Lucas Bergkamp explains how criminal law, in the climate movement’s vision, should supplement civil and administrative law to eliminate any and all opposition to its plans for the realization of a climate utopia.

European government of judges

Over several decades, the European Court of Human Rights (ECHR) has evolved into a European government in itself. Based on doctrines designed to enable it to expand its powers at its discretion, the Court has enacted a series of mandates for new laws and policies for Europe. There is little democratic control over the Court’s role in advancing progressive politics. Once the Court has spoken, national parliaments are unable to undo its pontification because a human right trumps national law; national judiciaries are compelled to execute the Court’s judgments, even if their own national law provides otherwise.

While imposing its high moral demands on executive governments, the Court believes itself to be quite exempt from any moral or legal constraints. In a previous contribution, I discussed how climate change litigation before the Court has undermined the rule of law, the separation of powers, and democracy. In this article, I focus on the Court’s role in criminalizing the climate debate. Its reckless disregard of judicial impartiality, the right to a fair trial, and judicial restraint is another manifestation of the Court’s support for the progressive movement.

Criminalizing “climate denial”

A decade ago, an American lawyer argued that climate denial is arguably punishable as criminal deception and fraud under existing law. In 2015, Al Gore said that “climate change deniers should be punished.” President Trump’s withdrawal from the Paris Climate Agreement was viewed as a crime against humanity: “This is murder.”

A recent book, Carbon Criminals, Climate Crimes, describes “what corporations in the fossil fuel industry, the U.S. government, and the international political community did, or failed to do, in relation to global warming.” On UNESCO’s website, a prominent feature article advocates that “climate crimes must be brought to justice” and that “states and corporations must be held accountable for their actions or inaction regarding climate change.”

The rationale supporting criminalization

The argument for criminalizing “climate denial” typically boils down to the following argument articulated by Jeremy Williams:

“Given what we know and have known for decades about climate change, to deny the science, deceive the public, and willfully obstruct any serious response to the climate catastrophe is to allow entire countries and cultures to disappear. It is to rob … the poorest and most vulnerable on the planet of their land, their homes, their livelihoods, even their lives—and their children’s lives, and their children’s children’s lives. For profit. And for power…. These are crimes. They are crimes against the earth, and they are crimes against humanity.”

This emotional outcry is not only an impenetrable amalgamation of factual and moral reasoning but also assumes what must be proved. To prevent disaster, rationality needs to be brought back into the analysis. Unfortunately, as the ECHR demonstrates, we cannot rely on the judiciary to do so.

The “European Climate Change Court”

In 2020, the ECHR signaled to the human rights community that it was open to receiving applications from climate activists. The Court and the Council of Europe held a conference, “Human Rights for the Planet,” in which several judges, including the Court’s president, played key roles. The speeches delivered by the Court’s judges were rightly perceived as an open invitation to activists.

Several climate cases are now pending before the Court. As expected, climate-emergency rhetoric dominates the arguments presented by the plaintiffs. The Court has already demonstrated how far it is willing to go to rewrite the law to save the planet.

“Climate emergency”

The European Court of Human Rights, to which its president refers as the “European Climate Change Court,” has used the opportunity presented by the climate litigation that it invited to take the lead in criminalizing the climate debate. It has done so in a number of ways. First, the Court’s president and one of its vice presidents have declared publicly that “we are facing a dire emergency that requires concerted action by all of humanity” and that “we will face the collapse of everything that gives us our security.” Thus, the Court’s leaders have openly and unreservedly endorsed the climate movement’s alarmist rhetoric. They have done so not based on science but on alarmist declarations by Sir David Attenborough, a well-known biologist and climate activist.

Second, to prevent any argument on the facts, the judges added: “No one can legitimately call into question that we are facing a dire emergency that requires concerted action by all of humanity.” They also committed the Court to the cause: “For its part, the European Court of Human Rights will play its role within the boundaries of its competences as a court of law, forever mindful that Convention guarantees must be effective and real, not illusory.”

No right to a fair trial for deniers

By issuing these warnings, the Court effectively closed down any debate on climate change and climate science before any trial has even begun. In doing so, it deprived defendant states of an important argument to defend themselves against allegations that their climate policies are inadequate to fight the alleged climate crisis. Before they could present the relevant scientific evidence showing that there is no such thing as climate emergency or climate crisis, the Court’s leading judges told the defendant states that they should not dare to deny.

By labeling any argument that there is no climate crisis “illegitimate,” these leading European judges, who should serve as examples of judicial impartiality, have endorsed the climate movement’s climate-denier rhetoric. This rhetoric is an inappropriate, unethical play on Holocaust denial. Simultaneously, and directly relevant to this contribution’s subject, the Court’s “illegitimacy” label also raises the specter of criminal prosecution.

There is no climate crisis

It is hard to think of any judicial conduct that shows greater partisanship and disregard for the principle of judicial impartiality than the conduct of these European human rights judges. The right to a fair trial, guaranteed by article 6 of the European Convention on Human Rights, has effectively been set aside for climate deniers. The question should be asked whether, given the opinions expressed by its leaders, the ECHR can legitimately rule in any climate case.

The Court’s denial of justice is all the more shocking in light of the science, which does not support the proposition that there is a climate crisis. The European Commission has stated: “The term ‘climate emergency’ expresses the political will to fulfil the obligations under the Paris Agreement.” In almost 4,000 pages, the recent Intergovernmental Panel on Climate Change (IPCC) AR6 report does not once employ the terms “climate crisis” or “climate emergency” because these terms do not belong to the scientific terminology (they occur only in a descriptive section on communication). Rather, they are political slogans, as the Commission suggested. To the point, the undefined “climate emergency” is an invention by activists.

Torture

Remarkably, even the finger-pointing at perceived climate denial was not sufficient for the ECHR. In the first climate case pending before it, the Court decided, on its own volition, to add “torture” to the charges against 33 states that allegedly do not do enough to combat climate change, as required by the 2015 Paris Agreement on Climate Change. The Court suggests that these states may have committed “torture” by adopting “inadequate climate policies.”

Torture, of course, is a serious crime. The Rome Statute of the International Criminal Court (ICC) provides that torture, “when committed as part of a widespread or systematic attack,” is a crime against humanity. Consequently, not implementing adequate climate policy would be a crime against humanity that can be prosecuted by the ICC. What would the victims of actual torture think of the Court’s misuse of this term for political reasons?

Judicial threats

Corporate executives of companies deemed to be responsible for greenhouse gas emissions, politicians that do not support ambitious climate policies, and everyone else who advocates against the climate movement’s agenda would be exposed to criminal prosecution and imprisonment of up to 30 years. This is not a far-fetched interpretation of the relevant law but, as explained below, a fairly straightforward application. Obviously, the ECHR was well aware of what it was doing by slipping in “torture,” but it nevertheless felt comfortable proceeding in this manner.

Needless to say, the threat of life imprisonment is a very powerful disincentive. As an academic author for UNESCO put it:

“Criminal sanctions are the most potent tools we have to mark out conduct that lies beyond all limits of toleration. Criminal conduct violates basic rights and destroys human security. We reserve the hard treatment of punishment for conduct that damages the things we hold most fundamentally valuable. Climate change is causing precisely such damage.”

This seems to be exactly what the judges on the ECHR believe. Corporate executives will have to think twice about corporate climate policies and will be inclined to cave in to activists’ demands. Likewise, politicians skeptical of the current climate policies may feel compelled to give up their resistance. All other dissenters may also be inclined to choose personal security over honesty. Economic freedom, political freedom, and freedom of speech would be obliterated. Is this what the Court’s president means when he says that the European Convention guarantees must be “effective and real, not illusory”? The Court’s inexplicable decision to add torture to the charges in the first climate case only adds to the concern that human rights protect only those who endorse progressive causes, not those who have other political preferences.

Ecocide

By invoking the crime of torture in the climate debate, the ECHR may also have intended to assist the efforts to get ecocide recognized as a crime. “Ecocide” refers to the “devastation and destruction of the environment,” but no official legal definition yet exists. For decades, greens have been trying to get ecocide recognized as an international crime—but so far, to no avail. In the last two years, however, due to the rise of the climate crisis narrative, they have made significant progress. There now is much activity aimed at persuading international organizations to legislate on ecocide. In May 2021, the Inter-Parliamentary Union (IPU), a global organization that claims to empower national parliamentarians to promote, inter alia, sustainable development, adopted a resolution calling on all “[m]ember Parliaments to reinforce criminal law to prevent and punish widespread, long-term and severe damage to the environment” and “to examine the possibility of recognizing the crime of ecocide to prevent the threats and conflicts resulting from climate-related disasters and their consequences” (emphasis added).

In June 2021, an expert panel convened by the Stop Ecocide Foundation published a definition of “ecocide” intended to serve as the basis for an amendment to the Rome Statute of the ICC. Once the Rome Statute is amended to include ecocide, individuals suspected of having committed ecocide can be tried before the ICC.

The amendment’s breadth

With this amendment, the prohibition of climate denial becomes redundant because the Rome Statute threatens imprisonment against not only those who commit a crime but also anyone who “induces the commission of such a crime,” “aids, abets or otherwise assists in its commission or its attempted commission,” or “in any other way contributes to the commission or attempted commission of such a crime by a group of persons.” Moreover, the Rome Statute applies equally to all persons, without any distinction based on official capacity; specifically, elected representatives and government officials are not exempt from criminal responsibility.

Thus, politicians, corporate executives, thought leaders, and anyone else can be subject to criminal prosecution if they express an opinion or pursue a policy deemed to be “anti-climate” that therefore may result in ecocide. In the fight against climate denial, this tool would be of incalculable value.

European Union “leadership”

The European Parliament has referred to ecocide in two recent reports and expressed the wish to recognize ecocide under EU law and diplomacy. To prepare the adoption of an EU directive on ecocide, the European Law Institute launched a project on ecocide. Taking advantage of the momentum, even before this project is finished, the ecocide movement is now pushing to get ecocide included in the EU Environmental Crimes Directive, which is currently being revised.

EU member states control a significant portion of the votes necessary for an amendment of the Rome Statute and can provide incentives to secure the additional votes necessary to get the crime of ecocide adopted. The consequences of such an amendment could be enormous if the ICC follows the example of the ECHR and jumps onto the climate activists’ bandwagon.

Climate change is ecocide

Make no mistake: while the definition of ecocide is broad and vague, the primary target of the ecocide movement is climate change. Civil liability law and human rights law give climate activists the tools to force governments and companies to comply with their demands, but this kind of litigation is expensive and takes time. The new crime of ecocide would give them a powerful instrument to shortcut the process by threatening criminal sanctions against corporate directors and officers, as well as reluctant politicians and opinion leaders, and to force them to change their ways.

Climate activists also believe that the term “ecocide” will have an emotive and stigmatizing effect that “causing climate change” does not have. As one author puts it:

“The term “ecocide” sounds dramatic. It is more emotive than “contributing to pollution” or “increasing greenhouse gas emissions” or “investing in fossil fuels.” It communicates the gravity and urgency of the irreversible destruction being inflicted on the environment. It unambiguously casts major polluters as “villains,” perpetrators of a crime (emphasis added).”

No protection

National laws do not protect the suspects. Under the proposed definition of the international panel, ecocide means “unlawful or wanton acts committed with knowledge that there is a substantial likelihood of severe and either widespread or long-term damage to the environment being caused by those acts.” Note that “unlawful,” which is broader than “illegal,” is the gateway to disregarding permits for emissions and compliance of activities and products with national laws.

The main trick is that this definition does not require any actual damage; knowledge of likely damage in the future is enough—which is a given, in light of the “settled science” set forth in the IPCC reports. Fundamental principles of criminal law are merely an afterthought, if they are on the radar screen at all.

Torturing human rights and criminal law

Needless to say, the ECHR’s suggestion that governments “torture” their citizens by implementing “inadequate climate policy” is both insulting to torture victims and unlawful. The inclusion of torture in a climate-policy lawsuit is the culmination of the Court’s progressive move away from a human rights adjudicator to a social policymaking institution. This activism has not only harmed the Court’s reputation as an impartial court of law but has also created serious problems for national legislatures faced with the often unhinged policy mandates imposed by the Court.

To be sure, we do have a torture problem, but it is not the European climate policymakers who are doing the torturing. Rather, the Court itself has tortured the law to fit its own ideology. The Court tortured the European Convention on Human Rights until it confessed that it is a program for progressive politics. It tortured the right to life and several other human rights until they agreed to include within their scope a whole series of so-called positive obligations, which only the Court gets to define. Perhaps most egregious, the Court tortured the Convention until it gave the Court the right to waive essential requirements imposed by the Convention to eliminate any limits on its jurisdiction, which then allowed the Court to move forward with the first climate change case, which it so desperately wanted.

The crime of climate change

The use of criminal law to pursue climate politics is a new chapter in the climate-litigation saga. Climate activists have discovered criminal law as a tremendously effective tool for climate politics. Governments and corporations can be subordinated through civil and human rights law, but to put pressure on corporate executives and politicians, criminal law is much more effective. Criminal law is the crowbar that pries open the doors to the boardrooms and the chambers where policy decisions are made.

What is remarkable is that the activists include not only the nongovernmental organizations that claim to “fight for the climate” but also Europe’s highest judges at the European Court of Human Rights. Are the limits on its authority really lifted by the self-declared crisis?

Lock them up!

In totalitarian states, political dissidents are controlled in three ways: they are removed from public life as a “danger to public order”; they are placed in psychiatric hospitals, since they suffer from mental illness; or they are imprisoned because they have committed crimes. The climate movement’s latest move pursues this third route of “delegitimization” and “denormalization” of its political opponents and those who disagree with the movement.

According to the climate movement, the alleged climate crisis would require urgent action to avert the impending catastrophe and save the planet and humanity. In its view, this requires that democracy, fundamental principles of law, and the limits of judicial power are set aside. In this struggle for survival, the climate movement has concluded that greenhouse gas emissions must be criminalized so that climate deniers can be locked up. Unfortunately, the ECHR has fallen victim to the emotional appeal of the movement’s rhetoric.

Threats to freedom

The climate movement’s strategy is clear: torture and ecocide must be part of its toolbox so that the sinners can be converted, deniers can be punished, and climate utopia can be realized. Inevitably, however, “climatism” results in the suppression of freedom and opens the path to climate totalitarianism. Ironically, the ECHR, which was created in the aftermath of the destruction of the Nazi totalitarian regime to act as a legal bulwark safeguarding individual liberty, has placed itself as the judicial enabler of this process.

*****

This article was published on October 22, 2021, and is reproduced with permission from The Heartland Institute.

Is Larry Summers Channeling Benjamin Anderson?

By James L. Caton

Larry Summers, who served as U.S. Treasury Secretary under Bill Clinton, and head of the National Economic Council in the early years of the Obama administration began sounding the alarm on the possibility of inflation several months ago. Until recently, I suspect few would have described him as an inflation hawk. And yet, he has been making the rounds of late to warn about the possibility of a “collision between fiscal and monetary policy.”

As someone who has supported fiscal expansion as a means of promoting macroeconomic stability, Summers has been unusually cautious. He seems to believe that the size of the output gap was not large enough to merit the unprecedented level of monetary expansion that has been administered by Jerome Powell.

In February, Summers participated in a discussion with Paul Krugman where he outlined his concerns. He notes that:

  1. The stimulus of 2020 was about twice the size of the output gap in the same year. The proposed stimulus for 2021 was, at the time, 4 times the size of the projected output gap.
  2. Unemployment compensation provided to the bottom 30% of earners was more than double their losses from Covid-19.

Elsewhere, Summers explains that the current labor shortage will drive up wages and that we have already seen monthly rents for new tenants increase by 17 percent, on average, above the rents paid by previous tenants.

Summers believes that the “toxic side effects of QE” are not being recognized by policymakers. In an interview, Larry Summers used a rather peculiar metaphor to describe this situation.:

So, I look at that dwindling hole. Then I look at expenditures that aren’t hard to add into the multiple trillions, and I see substantial risk that the amount of water being poured in vastly exceeds the size of the bathtub.

When I heard Summers use this metaphor, my mind was drawn to a passage I first read over a decade ago from Benjamin Anderson in his reflection on the Great Depression. In referring to monetary policy that preceded the initiation of the Great Crash in October 1929, he wrote:

When a bathtub in the upper part of the house has been overflowing for five minutes, it is not difficult to turn off the water and mop up. But when the bathtub has been overflowing for several years, the walls and the spaces between ceilings and floors have become full of water, and a great deal of work is required to get the house dry. Long after the faucet is turned off, water still comes pouring in from the walls and from the ceilings. It was so in 1928 and 1929.

Consistent with both statements is the belief that the monetary policy provided more stimulus than was merited by prevailing economic conditions. And consistent with Summers’ belief that excessive monetary support can be toxic, Anderson bemoans the extensive damage that can occur when the water spigot is left on for too long.

A Common Theme

While Summers and Anderson have contrary views with regard to fiscal stimulus, both recognize that there is an upper limit to the benefits of monetary expansion. Anderson viewed the Federal Reserve as financing a boom in stocks across the 1920s. “[T]he Federal Reserve System used them [open market operations] deliberately for the purpose of relaxing the money market and stimulating bank expansion in 1924 and 1927. At a time when unusual circumstances called for extra caution, they abandoned the old standards and became daring innovators in the effort to play God.” 

Compared to Summers, Anderson is quite conservative. Yet, Summers recognizes the theoretical limits of monetary policy. Summers has represented his views as “simple arithmetic.” Even before the crisis, Summers critiqued modern monetary theory (MMT). When asked why the U.S. can’t take advantage of its status as the world’s reserve currency, referring to its dominant position as an international media of exchange, Summers responded that “we won’t have the reserve currency forever if we do that. . . . In all things economics is a matter of balance.”

During our graduate studies, Peter Boettke constantly reminded my colleagues that “economics puts parameters on people’s Utopias.” No doubt. This is a universal of economics. And it is such recognition that separates the economist from the ideologue. I disagree with a number of policy stances promoted by Larry Summers, but I would be a fool to say that he is ignorant of macroeconomic theory.

Summers believes that fiscal policy should be used to promote better environmental outcomes and to improve equity while also accepting, as Alex Salter has argued, that the use of monetary policy for these aims is a recipe for disasterSummers is also “nervous” about the Fed setting out “to target the unemployment rate of particular groups without regard to inflation [as] that would be a good way to make really serious inflation.”

The Fed needs to concentrate on monetary policy. This is a serious job that requires serious focus. Perhaps Summers recognizes that the post-2008 monetary framework has created a fiscal Fed. Or maybe he will.

Summers’ demands for limits to the aims of monetary policy might be politically feasible under the old Volcker-Greenspan regime. Under that monetary regime, inflationary pressure placed strict limits on the expansion of the balance sheet. The political incentives now faced by both politicians and Fed officials promote precisely the sort of oversized fiscal expansions that we have observed in the last two years, the same expansions that Summers decries. 

The post-2008 framework has incentivized the destabilization of monetary policy. The sooner we recognize this fact, the sooner we can seriously discuss a solution to the problem.

*****

This article was published on October 13, 2021, and is reproduced with permission from AIER, American Institute for Economic Research.

New Study Finds Electric Cars Cost More To Refuel Than Gasoline Powered Cars

By Dr. Rich Swier

Anderson Economic Group EV Transition Series: Report Comparison: Real World Cost of Fueling EVs and ICE Vehicles compared the actual costs of fueling normally asperated cars and trucks versus all electric vehicles. Read the full study here.

The Anderson study noted that Electronic Vehicles (EVs) are, “often presumed to be less expensive to fuel than their ICE counterparts. There is a rationale in physics for this: due to greater thermal efficiency, electric motors convert energy more efficiently than combustion engines. However, this cost is only one of five.”

For a complete picture, Anderson notes that we consumers must consider:

  1. Commercial and residential electric power/fuel costs.
  2. Registration taxes.
  3. Equipment (e.g., chargers) and installation costs.
  4. Deadhead miles incurred driving to a charger or fueling station.
  5. The cost of time spent refueling

The study found:

  • There are four additional costs to powering EVs beyond electricity: cost of a home charger, commercial charging, the EV tax and “deadhead” miles.
  • For now, EVs cost more to power than gasoline costs to fuel an internal combustion car that gets reasonable gas mileage.
  • Charging costs vary more widely than gasoline prices.
  • There are significant time costs to finding reliable public chargers – even then a charger could take 30 minutes to go from 20% to an 80% charge.

In the Anderson Economic Group’s October 21, 2021 column “Real-World Electric Vehicle Fueling Costs May Surprise New EV Drivers” they wrote:

6 months of independent research finds fueling costs for electric vehicles (EV) are often higher than for internal combustion engines (ICE)

East Lansing, MI–October 21, 2021: Anderson Economic Group released today the first in a series of analyses examining the transition from ICE vehicles to EVs.

This initial 36-page study is the culmination of comprehensive research comparing the “apples-to-apples” costs involved in fueling both EVs and ICE vehicles. AEG undertook this study after noting that many commonly cited figures did not account for the true costs associated with EV charging.

AEG calculated the cost of chargers, additional road taxes, commercial charging fees, and “deadhead” miles for three different EV driving scenarios and compared these with 3 analogous ICE vehicle scenarios. The research found that fueling an EV is often more expensive than fueling an ICE vehicle. It further found that fueling costs are far more variable for EVs. The authors go on to note the significant time costs imposed on EV drivers as a result of both inadequate infrastructure and wait times associated with fueling, which can be five to ten times the cost for ICE drivers.

According to study author Patrick Anderson, “These numbers may be surprising to those who haven’t relied upon an electric vehicle, but it’s important we safeguard the public from ‘charger shock.’ Before consumers can feel comfortable buying EVs in large numbers, they need to understand the true costs involved.”

Read the full article.

About the Authors

Mr. Patrick Anderson is Anderson Economic Group’s principal and CEO. His company is one of the most recognized boutique consulting firms in the United States, with years of expertise in the US automotive industry. The company has consulted for manufacturers that include General Motors, Ford, DaimlerChrysler, Honda, and others, along with nearly 200 automobile dealerships representing virtually every brand in the market.

Mr. Alston D’Souza works in Anderson Economic Group’s strategy and business valuation practice area, where he serves as senior analyst and data scientist. While at AEG, Mr. D’Souza’s work has focused on damages and market analysis. He holds a master’s degree in econometrics and quantitative economics from the University of Wisconsin-Madison, and a Bachelor of Technology degree from the National Institute of Technology Karnataka (India).

ABOUT THE ANDERSON ECONOMIC GROUP

Founded in 1996, Anderson Economic Group (AEG) is one of the most recognized boutique consulting firms in the United States. The company has offices in East Lansing, Michigan and Chicago, Illinois. The automobile industry is a primary area of specialization for the experts at AEG, who approach this critical automotive transition from a perspective that recognizes the role everyday consumer choices will play in driving EV market trends.

AEG’s automotive clients include manufacturers, suppliers, trade associations, and dealers and dealership groups.

©All rights reserved.

WATCH: Unions Mostly to Blame for Supply Chain Shortages But Biden Thanks Them

By Royal A. Brown III

The real cause of supply chain shortages are the Unions which provide Stevedores to unload ships and Warehouse Workers at our major ports.   Their contract exempts them from working on weekends and they already make well over $100,000 a year but have no fear – Beijing Joe Biden will influence them to start working 24 x 7 to clear up the backlog but, of course, with your tax dollars.

In the East Room of the White House last week, President Joe Biden announced the Executive Branch was taking decisive actions to resolve the supply chain issues plaguing the United States.

As media reports show, supply chain bottlenecks are leaving many people without essential goods, and are threatening to play Grinch with consumers this holiday season.

“I half-jokingly tell people ‘Order your Christmas presents now because otherwise on Christmas day, there may just be a picture of something that’s not coming until February or March,’” Scott Price, the international president for UPS, told the AFP wire service in September.

On Wednesday Biden announced he was addressing the problem of West Coast delays, saying the crucial ports of Los Angeles and Long Beach would soon be shifting to round-the-clock operations.

“After weeks of negotiation and working with my team and with the major union and retailers and freight movers, the Ports of Los Angeles announced today that it’s going to begin operating 24 hours a day, 7 days a week,” Biden said.

The president said that by moving to a 24-7 system, the US would be shifting to “what most of the leading countries in the world already operate on now, except us, until now.”

He then thanked union leaders shortly before his closing remarks.

“I particularly want to thank labor: Willie Adams of the Longshoremen and Warehouses Union, who is here today; the Teamsters; the rail unions from the Brotherhood of Railroad Signalmen; and the International Association of Mechan- — of Machinists; to the American Train Dispatchers Association; to Sheet Metal, Air, and Rail, and Transportation Workers Union, known as ‘SMART,’” Biden said.

There is little debate that the supply chain issues are a serious problem, and shifting to a 24-7 operation may indeed help alleviate some of the supply chain issues—though the problem is unlikely to be solved so easily.

The obvious question, however, is this: why weren’t these ports already operating around the clock “like most of the leading countries in the world”?

The answer can be found in the very unions Biden thanked.

As Sean Higgins of the Competitive Enterprise Institute (CEI) recently explained, there appears to be no state or federal regulation preventing around the clock work at these ports. It’s simply a union policy.

“The primary issue appears to be the unions, whose contract effectively dictates when work can be done,” Higgins explains.

It turns out that unions negotiated a sweetheart deal. It’s not just that, as the Los Angeles Times notes, union dock workers make $171,000 (plus free healthcare) a year on average. Or that union clerks do even better ($194,000 on average), and they themselves earn a far cry from foremen and “walking bosses” ($282,000). (Those fat compensation figures result in part from the fact that union bosses were able to negotiate holiday pay not just for federal holidays, but for everything from “Bloody Thursday” to the birthdays of union leaders such as Harry Bridges and Cesar Chavez.)

The wages are noteworthy, but the bigger problem for people depending on smoothly running supply chains are the restrictions on work hours the unions negotiated. Higgens notes the labor contract between the Pacific Maritime Association and the International Longshore and Warehouse Union (ILWU) creates an inflexible operating schedule:

[The] union contract limits the port to just three shifts in a day: two lasting eight hours and another lasting just five hours. All three go from Monday to Friday. These shifts overlap slightly but even if they didn’t, they would still only total 21 hours. Keeping the ports open for 24 hours would require the port to pay overtime every single day.

On top of that, the contract says that any work done on weekends or holidays is automatically time and a half too. So even if the port could offer shifts with a five-day work week that started on, say, Wednesday, it would have to pay those workers the equivalent of six days.

In other words, the contract makes it all but impossible for the port to remain operational for twenty-four hours a day and on weekends.

Now, the entire US supply chain problem doesn’t come down to the ports of Los Angeles and Long Beach, and the poorly negotiated union contract. But the importance of these ports is enormous.

Indeed, Biden himself notes that 40 percent of all shipping containers imported into the US come from these two ports—which have been idle some 60 hours every week during the biggest supply chain crisis in generations … because of a union contract.

To make matters worse, for years the union has blocked efforts to improve efficiency through automation.

“We were totally opposed to fully automated terminals and got the guarantees from our employers that they would not construct them during the life of our new package,” ILWU President Harrold Daggett noted two years ago after the union negotiated its contract.

This is known as “featherbedding,” a practice unions have perfected over ages that requires employees to implement time-consuming policies and procedures that increase labor costs and decrease productivity. As economist Henry Hazlitt once observed, these “make-work rules” reduce efficiency but “are tolerated and even approved because of the confusion on this point in the public mind.”

The reason the problem persists, Higgens says, is that people simply don’t want to create a political stir.

“You don’t even talk about that. You know, we don’t even try to influence that. But it’s really the root cause,” an anonymous carrier industry source reportedly told CEI.

There may be something to Higgens’s claim—if you’ve ever watched Martin Scorsese’s movie The Irishman, you know what I mean—but there’s a larger economic lesson to be learned.

As the economist George Reisman has observed, unions decrease productivity almost by their very nature.

[The] most serious consequence of the unions is the holding down or outright reduction of the productivity of labor. With few exceptions, the labor unions openly combat the rise in the productivity of labor. They do so virtually as a matter of principle. They oppose the introduction of labor-saving machinery on the grounds that it causes unemployment. They oppose competition among workers.

Granted, simply persuading ports to operate 24-7 around the clock (and no doubt covering the union costs) may solve some problems. But if Reisman’s observations are correct, Biden is seeking increased productivity and efficiency in the wrong place. Because of the incentive structure they operate under, unions are far better at leveraging power to negotiate sweetheart deals than boosting efficiency and productivity to improve the broader marketplace.

Indeed, just one day after Biden’s speech, union leaders were already making it clear they weren’t yet working around the clock—and had no timeline for doing so.

“It’s not a single lever we can pull today,” Gene Seroka, the Executive Director of the Port of Los Angeles, said in a media briefing. “There’s no timeline when suddenly we will wake up and everything will be 24/7.”

Jonathan Miltimore is the Managing Editor of FEE.org. His writing/reporting has been the subject of articles in TIME magazine, The Wall Street Journal, CNN, Forbes, Fox News, and the Star Tribune. Bylines: Newsweek, The Washington Times, MSN.com, The Washington Examiner, The Daily Caller, The Federalist, the Epoch Times.

Why the Push Is on to Make Pandemic Life ‘Permanent’

By Foundation for Economic Education (FEE)

COVID-19 is new. But the reaction to the crisis is starting to look familiar.


One year after Americans were ordered to close down society for “two weeks to flatten the curve,” Bloomberg columnist Andreas Kluth warned, “We Must Start Planning for a Permanent Pandemic.”

Because new variants of SARS-COV-2 are impervious to existing vaccines, says Kluth, and pharmaceutical companies will never be able to develop new vaccines fast enough to keep up, we will never be able to get “back to normal.”

“Get back to normal” means recovering the relative liberty we had in our already overregulated, pre-Covid lives. This is just the latest in a long series of crises that always seem to lead our wise rulers to the same conclusion: we just cannot afford freedom anymore.

Covid-19 certainly wasn’t the beginning. Americans were told “the world changed” after 9/11. Basic pillars of the American system, like the Fourth and Fifth Amendments, were too antiquated to deal with the “new threat of terrorism.” Warrantless surveillance of our phone, e-mail, and financial records and physical searches of our persons without probable cause of a crime became the norm. A few principled civil libertarians dissented, but the public largely complied without protest.

“Keep us safe,” they told the government, no matter the cost in dollars or liberty.

Perhaps seeing how willingly the public rolled over for the political right during the “War on Terror,” authoritarians on the left turbocharged their own war on “climate change.” Previously interested in merely significantly raising taxes and heavily regulating industry, they now wish to ban all sorts of things, including air travelgasoline-powered cars, and even eating meat.

Since Covid-19, however, even the freedom to assemble and see each other’s faces may be permanently banned to help the government “keep us safe.”

Assaulting our liberty isn’t the only characteristic these crisis narratives have in common. They share at least two others: dire predictions that turn out to be false and proposed solutions that turn out to be ineffective.

George W. Bush warned Saddam Hussein had “weapons of mass destruction” capable of hitting New York City within 45 minutes. He created the Department of Homeland Security and the TSA to prevent, among other things, a “mushroom cloud” over a major American city.

Twenty years later, we know there were no weapons of mass destruction in Iraq, the terrorist threat was grossly exaggerated, and the TSA has still never caught a terrorist, not even the two people who tried to set off explosives concealed in their shoes and underwear, respectively.

The only effective deterrent of terrorism so far has been the relatively calmer foreign policy during the four years of the Trump administration, during which regime change operations ceased and major terrorist attacks in the United States virtually disappeared.

Predictions of environmental catastrophe have similarly proven false. Younger people may not remember that in the early 1970s, long before Alexandria Ocasio-Cortez was born, environmentalists were predicting worldwide disasters that subsequently failed to materialize. In 1989, the Associated Press reported, “A senior U.N. environmental official says entire nations could be wiped off the face of the Earth by rising sea levels if the global warming trend is not reversed by the year 2000.” The same official predicted the Earth’s temperature would rise 1 to 7 degrees in the next 30 years.

Ocasio-Cortez is famous for predicting in 2019, “The world is gonna end in 12 years if we don’t address climate change.” But Al Gore had warned in 2006 that “unless drastic measures to reduce greenhouse gases are taken within the next 10 years, the world will reach a point of no return.” So, isn’t it too late anyway?

As with the war on terrorism, the war on climate change asks us to give up our freedom for solutions that don’t work. Assuming climate change proponents have diagnosed the problem correctly and haven’t exaggerated the threat—huge assumptions by themselves— implementing their proposed solution won’t solve the problem, even by their own standards.

Its proponents know this. The U.S. has already led the world in reducing carbon emissions without the draconian provisions of the Green New Deal. If you listen to them carefully, the Green New Deal’s proponents propose the U.S. give up what freedom and prosperity remain to them merely as an example to developing nations, whom they assume will forego the benefits of industrialization already enjoyed by developed countries because of the shining example of an America in chains and brought to its economic knees to “save the earth.”

Fat chance, that.

The latest remake of this horror movie is Covid-19. While undeniably a serious pathogen that has likely killed more people than even the worst flu epidemics of the past several decades (although this is hard to confirm since public health officials changed the methodology for determining a virus-caused death), the government and its minions have still managed to grossly exaggerate this threat.

Gone is any sense of proportion when discussing Covid-19. Yes, it is certainly possible to spread the virus after one has been vaccinated or acquired natural immunity. But how likely is it? Is it any more likely than spreading other pathogens after immunity?

If not, then why are we treating people with immunity differently than we have during more dangerous pandemics in the past? Similarly, it is likely possible for asymptomatic people to spread the virus—a key pillar of the lockdown argument—but again, how likely is it?

The theory Covid-19 could be spread by asymptomatic people was originally based on the case of a single woman who supposedly infected four other people while experiencing no symptoms. Anthony Fauci said this case “lays the question to rest.”

The only problem was no one had asked the woman in question if she had symptoms at the time. When it turned out she did, the study on her was retracted. A subsequent study “did not link any COVID-19 cases to asymptomatic carriers,” and yet another after that concluded transmission of the disease by asymptomatic carriers “is not a major driver of spread.” Yet, policies based on this falsehood, like lockdowns and forcing asymptomatic people to wear masks, remain in place.

Most importantly, none of the government-mandated Covid-19 mitigation policies work. No retrospective review conducted with any semblance of the scientific method has found a relationship between lockdowns, mask mandates, or social distancing and the spread of Covid-19. In fact, the most recent study suggests lockdowns may have increased Covid-19 infections, in addition to all the non-Covid excess deaths they caused.

Over and over, authoritarians overhype crises to scare the living daylights out of the public and propose solutions that have two things in common: they demand more of our freedom and they don’t work. It’s always all pain and no gain. One wonders how many repetitions of this crisis drill it will take before the citizens of the so-called “land of the free” finally think to ask:

Why is freedom always the problem?

This article was republished with permission.

COLUMN BY

Tom Mullen

Tom Mullen is the author of Where Do Conservatives and Liberals Come From? And What Ever Happened to Life, Liberty and the Pursuit of Happiness? and A Return to Common  Sense: Reawakening Liberty in the Inhabitants of America. For more information and more of Tom’s writing, visit www.tommullen.net.

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EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.

Why a Capital Gains Tax Increase Would Be a Massive Jobs [and Wealth] Killer

By Foundation for Economic Education (FEE)

Although startups comprise less than one percent of all companies, they generate 10 percent of new jobs in any given year.


When discussing the economic growth of a post-COVID landscape, too often the role of angel investors is overlooked. Angel investors, or private investors who are often wealthy, finance small business ventures in exchange for equity. For small businesses, angel investors provide a much needed lifeline in the form of cash infusion that doesn’t have to be repaid, except in shared ownership. Private investment, most often through angel investors, is undoubtedly a driving force in technological advancement and job creation.

Unfortunately, angel investment has recently been threatened by the looming possibility of capital gains tax increases under the new administration. Long-term capital gains taxes are applied to assets, such as equity in business, owned for over a year when sold. As of now, long-term capital gains are taxed at 20 percent for wealthy investors. The White House is now calling for a 39.6% top federal tax rate, nearly double the current amount.

As Chris Edwards, director of tax policy studies at Downsizing Government, explains, “In biotechnology and other leading-edge industries, after-tax investor gains are often reinvested in the next round of risky startups, thus creating a virtuous cycle.”

One of the reasons that nearly all high-income countries keep capital-gains taxes low is to help ensure that investors and entrepreneurs are incentivized to take the risk of committing time and resources to relatively risky start-up ventures, typically reliant on the type of scientific and technical innovation that fuels job growth and progress in the long run.

According to Census Bureau data, although startups comprise less than one percent of all companies, they generate 10 percent of new jobs in any given year. The Kauffman Foundation’s Tim Kane pointed out that “without startups, there would be no net job growth in the U.S. economy.” In the same paper, he lays out the argument that “in terms of the life cycle of job growth, policymakers should appreciate the tremendous effect of job creation in the first year of a firm’s life.”

Wealthy angel investors have been behind many US corporations that have revolutionized their field and led to unprecedented growth and technological progress. Henry Ford, for example, received an infusion of cash from coal dealer Alexander Y. Malcolmson. The first investor in Apple was a millionaire retiree from Intel, Mike Markkula. Jeff Bezos obtained $8 million from Kleiner Perkins to build Amazon.

An increase in capital gains taxes would discourage such high-risk investments that provide much-needed seed money to startups, and induce investors to shift their investments to dividend-paying stocks or bonds. While safer, these avenues of investment do not produce the jobs or innovation that startups do, and would hinder entrepreneurship.

“Such tax increases would be a blow to startup investment and entrepreneurship,” Edwards writes. “People considering launching technology startups would instead stay in salaried jobs because earning a smaller after-tax gain from a startup would not be worth all the extra stress, risk, and hard work.”

This tax increase would also make it harder for startups to attract skilled workers. Three-quarters of Silicon Valley firms offer stock options to employees to lure them away from their salaried positions at large companies. A significantly higher capital gains tax would make that benefit much less appealing.

A capital gains tax increase would come as a huge blow to angel investors who fund the new technologies and ideas that we often take for granted. To ensure future growth and progress, it is imperative that we create and maintain an environment that allows angel investors to operate and thrive.

COLUMN BY

Aadi Golchha

Aadi Golchha is the author of “The Socialist Trap: How the Leftist Utopia Will Destroy America” and an independent political analyst.

EDITORS NOTE: This FEE column is republished with permission. ©All rights reserved.